Washington Silvanus Washiali Khwale v Mumias Cane Farmers Co-operative Union Limited & Alloys Mandu Chairman, Mumias Cane Farmers Co-operative Union Limited [2021] KECPT 601 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL AT NAIROBI

TRIBUNAL CASE NO.12B OF 2018

WASHINGTON SILVANUS WASHIALI KHWALE.......................................CLAIMANT

VERSUS

MUMIAS CANE FARMERS CO-OPERATIVE

UNION LIMITED...................................................................................1ST  RESPONDENT

MR. ALLOYS MANDU CHAIRMAN, MUMIAS

CANE FARMERS CO-OPERATIVE UNION LIMITED...................2ND RESPONDENT

JUDGMENT

1. The Claimant  filed  suit vide  Statement  of Claim(Plaint) dated  23rd October,  2018 seeking for prayers  that:

a.The Plaintiff  has Kshs.200,000/= in cash  deposited  on the 1st  Defendant/Respondent bank account plus Kshs.20,500/= deposited  to the 1st Defendant’s Bank  account through  Mumias  Sugar Company Limited  as  cane proceeds  deductions  for his shares  and membership fee in his  parent  primary  society – Mumias  cane growers  Co-operative  Society. The plaintiff prays  for the immediate  refund of his family’s 200,000/= with interest  as from the year  2011  at the current  bank  rates from  the 1st Defendant;

b.As per  the Co-operative  Act,  the  2nd Defendant  with his entire  office  stands  dissolved  and none could  offer themselves  for the office  until  after three  years  and the plaintiff  prays  you so find;

c.That  an interim office  consisting  of at least  one member  from every primary  society  of  the 1st  Defendant  be put  in place  to cause books  of account  to be audited, assets  recovered  and reactivation  of all the societies  which  have become  dormant, within  12 months  for the revival of the 1st Defendant;

d.That all the monies  and assets  misappropriated  in the 1st  Defendant  be charged  to the individuals involved  and recovered  appropriately  both  at the  1st Defendant  and the primary  societies;

e.Costs of the suit.

2. The Plaintiff avers  that he  has cash  deposits  with  1st  Respondent  amounting  to  Kshs.220,500/= which  he would  like to  get a refund  with  interest from  the year  2011 at current  bank  rates.

He claims  since  July  2011  there  has been  no annual  audit  of the  book of accounts  nor  has the  1st  and  2nd  Respondent  called for  an Annual General  Meeting.

He  would  like  for the  current  officials  to step aside  and an interim  office  from each  primary society  of  1st  Respondent  be represented  and books  of account to be  audited, assets  recovered  and activation  of the  1st Respondent activities.

3. The Respondents  filed a statement of Defence  dated 7th November, 2018 on 9th November, 2018 and the said  Defence denied the Claimant’s  averments  and stated  the Claimant  was the problem  with all audit  reports not being done and reprimanding  him for mismanagement.

4. CLAIMANT’S CASE – EVIDENCE

Claimant  testified  on 10th February,2021 and claimant led evidence  to the effect  that he wanted a refund of Kshs.200,000/= from  1st  Respondent  which  he deposited  7 years ago.

He adopted his witness statement and produced documents as evidence . He  stated  he was aggrieved  how he was  removed from office  by  2nd  Respondent  with  assistance  from  officials  of Co-operative.

His prayer is for a refund of Kshs.200, 000/= which he deposited out of good will to pay the workers.

He claims  since 2011 the 1st Respondent  has not carried out  any audits  and request  for an order for  office to be  audited  and new officials  to be put in place.

5. The matter proceeded in the absence of the Respondents who were aware of the date as it was taken by consent.

6. Taking into consideration  the Respondent’s  statement  of Defence  the issues for  determination  are:

(i) Is the Claimant a member of the  1st Respondent?

(ii) Is the Claimant entitled to a refund of Kshs.200, 000?

(iii) Interim officials.

(i) Is the Claimant a member of the 1st Respondent?

From  the facts  and evidence  before the  Tribunal  the members  find  the Claimant  is a member  of the  1st Respondent  and his position  as chairman  was relinquished  in.......2011.

No evidence has been adduced to confirm his exit or resignations from the 1st Respondent.

(ii) Is the Claimant entitled to a refund of Kshs.200, 000/=?

The Claimant  in his evidence  stated  he deposited  the Kshs.200,000/= in his account  on  16th  August, 2011 for  purposes  of paying  the 1st  Respondent  employees their  dues and expected  a refund  back.

The Claimant now wants the said Kshs.200, 000/= to be refunded.

The Claimant  being  a member  of 1st  Respondent  and having shares  in the said  Sacco  is  and can  request  for the refund  when he  so  wishes.

There being no evidence of liabilities on his end we find he ought to be refunded his cash deposit.

The Respondents in their Defence and Documents filed have alluded to a report citing mismanagement by the Claimant as per a report by the Commissioner’s Office.

The report  does not  disclose  details  of the mismanagement  and who is to  be held  liable  and the extent  of the liability.

With  this in mind  we find  the Claimant  is entitled  to his refund  of Kshs.200,000/= which  is  not denied  by the Respondents.

(iii) interim officials to be constituted.

The Claimant  would  like the current  office  board  to be dissolved  and an interim  office be  constituted  with one member  from every  primary  society.

The status  of  the  1st Respondent  is not known  at the Tribunal  and the current  officials  and/or  office bearers  not known.

The constitution  of the 1st  Respondent’s   office  is  unknown  and  thus the  members of the Tribunal cannot be  seen to disturb the  status quo.

UPSHOT

The final analysis judgment is entered in favour of the Claimant as against the Respondent as follows:

1. Kshs.200, 000/= be refunded to the Claimant.

2. The prayer for the 2nd Respondent and officials (to stand dissolved is not granted) fails.

3. Interim office to be constituted with all primary society and audit fails.

4. A report  be filed  by the Commissioner  of Co-operatives  on the status  of the 1st  Respondent and thereafter  an Annual General  Meeting  to be held.

5. Costs and interest at court rates from date of filing suit.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY THIS 22ND  DAY OF APRIL, 2021.

HON. B. KIMEMIA   CHAIRPERSON                              ....................................

HON. J. MWATSAMA  DEPUTY CHAIRPERSON          ....................................

MR. P. GICHUKI    MEMBER                                              ....................................