Stephen Munyoki Nyamai v Regency Sacco Society Limited [2019] KECPT 58 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL

AT NAIROBI

TRIBUNAL CASE NO. 134 OF 2018

STEPHEN  MUNYOKI NYAMAI..........................CLAIMANT

VERSUS

REGENCY SACCO SOCIETY LIMITED......RESPONDENT

RULING

Matter for determination is a notice to show cause dated 19. 6.2019 seeking for the respondent to show cause why JOSEPH KIBANGENDI, MARY ONDIEKI, SAMMY SAMBUand CLEMENT ONYANGO should not be arrested and committed to civil jail for failing to pay   the decretal amount of Kshs. 268,194. 40. The same was opposed vide a replying affidavit of JOSEPH KIBANGENDI the vice chair of the respondent indicating that there was no declaration that the said mentioned persons are personally liable to pay the judgment  amount which  is against  the Cooperative  Society  as a distinct  separate  legal  entity.

That the said officials have not in any way delayed or frustrated the execution of the decree issued.

That the respondent is facing financial constraints due to failure by RAYCO REYENT HOTEL LTD to remit members contributions to the respondent as demonstrated in CTC 431 of  2016 REGENCY  COOPERATIVE SAVINGS  &CREDIT  VERSUS  CO-OP  HOLDINGS COOPERATIVE SOCIETY LIMITED  AND  6 OTHERS.

That the respondent is willing   and ready to satisfy the decretal sum if the remittances from the employer of the members is received.

We have carefully considered the application and the replying affidavit.  We note that this suit was filed on 17. 4.18 for refund of share contributions to the claimants amounting to 231,040/=. Judgment was entered on 24. 1.2019.

The respondent filed an application dated 2. 4.19 seeking to set aside the stay of execution; the application was dismissed with costs on 6. 6.2019 paving way for execution proceedings.

Section 28 (3) of Cooperative Societies Act, is clear on the duties of the management committee in the governing authority of   the society hence they are mandated  to direct  the  affairs of the Society with powers  to 3 (b) to  institute  and defend  suits  and other  legal  proceedings  brought  in the  name of or against  the society,  and  3( c) do  all  other  things necessary  to achieve  the society’s objectives.

In the circumstances therefore, the management committee as per section 28 of Cooperative Society Act are the governing body and SHALL institute and defend suits and other legal proceedings brought  in the  name of  or against  the Cooperative  Society. It therefore goes without saying that they are capable of being arrested and committed to civil jail for the debts of the society.

In the circumstances thereof, the said JOSEPH KIBANGENDI, MARY  ONDIEKI, SAMMY  SAMBU and  CLEMENT ONYANGO being  the officials of the  respondent  must ensure  that they  do all  other things  necessary  to  achieve  the objectives of  the  Cooperative  Society in accordance  with  its by Laws, payment  of decretal  amounts being  one of the  duties/obligation  enumerated  under section  28 (3). We therefore find that the replying affidavit does not properly reflect this position. On the issue of CTC 431 OF 2016 we note that the  judgment  is not binding   in this matter. The claimant gave his contributions to the Respondent hence the respondent  is obligated  to satisfy  the decretal  amount  in full without  any  conditions unless  otherwise  ordered.

The Respondent has not filed any affidavit  of means to show  inability  or lack  of ability  to  settle  the decretal  amount.  The claimant  is entitled  to the fruits  of the judgment  issued  on 24. 1.19.  in the circumstances  we find  that  the objections /oppositions of the  notice  to show cause  dated  19. 6.2019 has no merits  and we  accordingly  dismiss  the same  with costs.

Consequently  warrant  of arrest  to issue  against  JOSEPH  KIBANGENDI,MARY ONDIEKI, SAMMY SAMBU and CLEMENT  ONYANGO

Read and delivered in open court, this 7th November,2019.

In the presence of:

Claimant:Stephen Nyamai

Respondent:Miss Muthuri holding brief for Nyarango

Court Assistant:Leweri and Buluma

B.Kimemia           -      Chairman-signed

R.Mwambura       –     Member-Signed

P.Swanya             -        Member-signed