Nyabomite FCS Ltd v Josiah Oyaro [2020] eKLR Case Summary

Court
Co-operative Tribunal at Nairobi
Category
Civil
Judge(s)
Hon. B. Kimemia (Chairman), Hon. F. Terer (Deputy Chairman), Hon. P. Gichuki (Member)
Judgment Date
July 23, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Nyabomite FCS Ltd v Josiah Oyaro [2020] eKLR, highlighting key legal principles and judgments. Discover insights and implications for future cases.

Case Brief: Nyabomite FCS Ltd v Josiah Oyaro [2020] eKLR

1. Case Information:
- Name of the Case: Nyabomite F.C.S. Ltd v. Josiah Oyaro
- Case Number: Tribunal Case No. 228 of 2019
- Court: Co-operative Tribunal at Nairobi
- Date Delivered: July 23, 2020
- Category of Law: Civil
- Judge(s): Hon. B. Kimemia (Chairman), Hon. F. Terer (Deputy Chairman), Hon. P. Gichuki (Member)
- Country: Kenya

2. Questions Presented:
The central legal issues for resolution in this case are:
a) Whether the Claimant has established a proper basis for the entry of summary judgment against the Respondent.
b) Who should bear the costs of the Application.

3. Facts of the Case:
The Claimant, Nyabomite F.C.S. Ltd, filed an application seeking to strike out the Respondent's Statement of Defence and enter summary judgment for a debt of Kshs. 769,163.89. The Claimant contended that the Respondent is indebted to them and that the defense provided is merely a denial of the claim, thus frivolous and vexatious. The Respondent, Josiah Oyaro, opposed the application, arguing that his defense raises triable issues and that the matter is currently being contested in the High Court. The background involves a surcharge order issued by the Commission for Co-operative Development, which the Respondent has not appealed.

4. Procedural History:
The Claimant's application, dated August 9, 2019, was supported by affidavits from Alloys Joseph. The Respondent's opposition included affidavits from his advocate, George Joseph Mugaka Moses. The Tribunal directed that the application be disposed of through written submissions, which were filed by both parties in June 2020. The Tribunal then framed issues for determination regarding the summary judgment and costs.

5. Analysis:
Rules:
The court considered Sections 73-75 of the Co-operative Societies Act (Cap 490), Laws of Kenya, which govern surcharge orders. Specifically, Section 75(1) allows for the recovery of amounts specified in a surcharge order as civil debts recoverable summarily.

Case Law:
While the ruling does not cite specific case law, it references the statutory framework that governs surcharge orders and the procedures for challenging them. The relationship between the current application and the statutory provisions is crucial in determining the validity of the Respondent's defense.

Application:
The Tribunal found that the Respondent's defense did not raise any triable issues and was merely a denial of the Claimant's claims. The existence of a surcharge order against the Respondent was confirmed, and the Tribunal noted that the Respondent failed to provide evidence that he had challenged this order in accordance with Section 74 of the Act. Consequently, the Tribunal concluded that the Claimant was entitled to summary judgment.

6. Conclusion:
The Tribunal ruled in favor of the Claimant, striking out the Respondent's defense and entering summary judgment for the amount of Kshs. 769,163.89, along with costs and interest. This decision underscores the Tribunal's authority to enforce surcharge orders and highlights the importance of adhering to statutory procedures when contesting such orders.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The outcome of Nyabomite F.C.S. Ltd v. Josiah Oyaro resulted in a summary judgment for the Claimant, affirming the validity of the surcharge order against the Respondent. This case reinforces the procedural rigor required in challenging surcharge orders and the Tribunal's jurisdiction in such matters, thereby contributing to the legal discourse surrounding cooperative societies and debt recovery in Kenya.

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