Kodeka Nicholus Odeko v Menger Solutions Savings & Credit Co-operative Society Limited [2020] eKLR Case Summary

Court
Co-operative Tribunal at Kisumu
Category
Civil
Judge(s)
Hon. B. Kimemia (Chairman), Hon. F. Terer (Deputy Chairman), P. Swanya (Member)
Judgment Date
February 13, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the Kodeka Nicholus Odeko v Menger Solutions Savings & Credit Co-operative Society Limited [2020] eKLR case summary. Discover key insights and ruling details in this significant legal decision.

Case Brief: Kodeka Nicholus Odeko v Menger Solutions Savings & Credit Co-operative Society Limited [2020] eKLR

1. Case Information:
- Name of the Case: KODEKA NICHOLUS ODEKO v. MENGER SOLUTIONS SAVINGS & CREDIT CO-OPERATIVE SOCIETY LIMITED
- Case Number: Tribunal Case No. 514 of 2017
- Court: Co-operative Tribunal at Kisumu
- Date Delivered: 13th February 2020
- Category of Law: Civil
- Judge(s): Hon. B. Kimemia (Chairman), Hon. F. Terer (Deputy Chairman), P. Swanya (Member)
- Country: Republic of Kenya

2. Questions Presented:
The central legal issues in this case revolve around the enforcement of a consent agreement regarding debt repayment, the validity of a warrant of arrest issued against the judgment debtor, and the appropriate actions to be taken against the chairman of the respondent cooperative society for failing to comply with a court order.

3. Facts of the Case:
The claimant, Kodeka Nicholus Odeko, initiated a claim against the respondent, Menger Solutions Savings & Credit Co-operative Society Limited, for the refund of deposits. The chairman of the respondent, Fredrick Marembo, had previously entered into a consent agreement regarding the repayment of the owed amount but failed to honor this agreement. On 14th November 2019, a warrant of arrest was issued against Marembo after he issued a bounced cheque for Kshs. 40,000.00, which was presented in the Tribunal. Following his failure to appear in court on 22nd November 2019, the warrant was re-issued.

4. Procedural History:
The case progressed through the Co-operative Tribunal, where an interlocutory judgment was entered on 11th October 2017. The Tribunal considered the submissions of both parties and examined the consent agreement dated 6th November 2018. The Tribunal found that the judgment debtor had not complied with the consent agreement and had issued a bounced cheque. The Tribunal ultimately upheld the warrant of arrest and dismissed the applications from the judgment debtor's advocate seeking to lift the warrant.

5. Analysis:
- Rules: The court referenced Section 28(3) of the Co-operative Societies Act (Cap 490) of the Laws of Kenya, which provides that the committee of a cooperative society acts as its governing body and has the authority to enter into contracts and manage legal proceedings. The court also considered Section 38 of the Civil Procedure Act (Cap 21) regarding the execution of warrants of arrest.
- Case Law: The Tribunal did not cite specific case law, but the principles established in previous cases regarding the enforcement of consent judgments and the responsibilities of cooperative society officials were implicitly relevant. The court emphasized the obligations of the chairman under the Co-operative Societies Act and previous commitments made by the judgment debtor.
- Application: The Tribunal found that Marembo, as chairman, was responsible for the debts of the cooperative and had failed to comply with the repayment agreement. The court reasoned that the issuance of the warrant of arrest was justified due to Marembo's failure to appear and his previous commitments to pay the owed amounts, which he had not honored. The Tribunal concluded that the judgment creditor was entitled to the fruits of the judgment and that Marembo's conduct warranted civil jail for non-compliance.

6. Conclusion:
The Tribunal ruled against the judgment debtor, confirming the validity of the warrant of arrest and imposing a three-month civil jail sentence for failure to comply with the repayment obligations. This decision underscored the accountability of cooperative society officials in financial matters and the enforcement of consent agreements.

7. Dissent:
There were no dissenting opinions noted in the ruling. The decision was unanimous among the Tribunal members.

8. Summary:
The Co-operative Tribunal at Kisumu ruled in favor of the claimant, enforcing the repayment obligations against the chairman of the respondent cooperative society, Fredrick Marembo. The Tribunal's decision to impose civil jail highlighted the importance of accountability in cooperative governance and the enforcement of financial agreements. The case serves as a precedent for similar disputes involving cooperative societies and their officials in Kenya.

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