Sarah Busolo v Butali Savings and Credit Co-operative Society Limited [2020] eKLR Case Summary

Court
Co-operative Tribunal at Kakamega
Category
Civil
Judge(s)
Hon. B. Kimemia (Chairman), Hon. Terer (Deputy Chairman), P. Swanya (Member)
Judgment Date
February 26, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the key points of the Sarah Busolo v Butali Savings and Credit Co-operative Society Limited [2020] eKLR case. This summary highlights the court's findings and implications for similar legal matters.

Case Brief: Sarah Busolo v Butali Savings and Credit Co-operative Society Limited [2020] eKLR

1. Case Information:
- Name of the Case: Sarah Busolo v. Butali Savings and Credit Co-operative Society Limited
- Case Number: Tribunal Case No. 674 of 2017
- Court: Co-operative Tribunal, Kakamega
- Date Delivered: February 26, 2020
- Category of Law: Civil
- Judge(s): Hon. B. Kimemia (Chairman), Hon. Terer (Deputy Chairman), P. Swanya (Member)
- Country: Kenya

2. Questions Presented:
The central legal issues presented in this case are:
1. Is the Claimant entitled to a refund of her deposits amounting to Kshs. 152,000?
2. Is the Claimant liable for the counterclaim amounting to Kshs. 258,615 raised by the Respondent?

3. Facts of the Case:
The Claimant, Sarah Busolo, was a member of the Butali Savings and Credit Co-operative Society since 2012 and served as treasurer until her removal in 2015. She was accused of misappropriating funds, which led to her suspension on May 10, 2017. Following her suspension, she voluntarily decided to terminate her membership through a letter dated June 29, 2017, claiming her deposits totaled Kshs. 152,000. The Respondent counterclaimed Kshs. 258,615, asserting that the Claimant owed this amount due to liabilities incurred during her tenure as treasurer.

4. Procedural History:
The Claimant filed her claim on December 7, 2017, seeking a refund of her deposits. The Respondent filed a defense and a counterclaim on January 24, 2018. The Claimant responded to the defense and counterclaim on March 1, 2018. The case proceeded to hearing, during which testimonies were provided by both parties, including written submissions filed on December 4, 2019, by the Claimant and on November 29, 2019, by the Respondent.

5. Analysis:
- Rules: The court considered the Co-operative Societies Act (Cap 490) Laws of Kenya, particularly Section 73, which governs disputes involving co-operative societies and members' rights to refunds upon withdrawal.

- Case Law: The court referenced previous cases that established principles regarding the rights of members to withdraw from co-operatives and the corresponding obligations of the society to refund deposits, provided there are no outstanding liabilities.

- Application: The court analyzed the Claimant's letter of withdrawal, determining it constituted a proper notice that she ceased to be a member after 60 days. The court found no objection from the Respondent regarding the Claimant's entitlement to her deposits. Conversely, the court upheld the Respondent's counterclaim, finding that the Claimant was liable for the amounts due based on the evidence presented, including an inspection report that apportioned liability among the officials of the society.

6. Conclusion:
The court ruled in favor of the Claimant for Kshs. 152,000, affirming her right to a refund of her deposits. However, it also ruled against her in the counterclaim, finding her liable for Kshs. 258,615. Ultimately, the Claimant was ordered to pay the Respondent Kshs. 106,615, after offsetting her refund against her liabilities.

7. Dissent:
There were no dissenting opinions recorded in this case, as the judgment was delivered unanimously by the tribunal members.

8. Summary:
The Co-operative Tribunal ruled that Sarah Busolo was entitled to a refund of Kshs. 152,000 from the Butali Savings and Credit Co-operative Society but also found her liable for Kshs. 258,615 due to her financial obligations as a former treasurer. The decision underscores the responsibilities of co-operative officials and the rights of members withdrawing from such entities. This case highlights the importance of proper documentation and adherence to procedural requirements in cooperative governance.

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