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 summary of Sarah Busolo v Butali Savings and Credit Co-operative Society Limited [2020] eKLR. Discover key insights and legal implications from this landmark case.

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 at Kakamega
- Date Delivered: 26th February 2020
- Category of Law: Civil
- Judge(s): Hon. B. Kimemia (Chairman), Hon. Terer (Deputy Chairman), P. Swanya (Member)
- Country: Kenya

2. Questions Presented:
The court must resolve the following central legal issues:
- Is the claimant entitled to a refund of her deposits amounting to Kshs.152,000?
- Is the claimant liable for the counterclaim of Kshs.258,615 by the respondent, and should this amount be deducted from her deposits?

3. Facts of the Case:
The claimant, Sarah Busolo, was a founding member and treasurer of Butali Savings and Credit Co-operative Society Limited since 2012. She was removed from her position in 2015 and later suspended in May 2017 due to allegations of misappropriating funds. Following her suspension, she voluntarily decided to terminate her membership on June 29, 2017, and sought a refund of her deposits totaling Kshs.152,000. The respondent counterclaimed that she owed Kshs.258,615 due to unverified cash and other liabilities.

4. Procedural History:
The claimant filed her initial claim on December 7, 2017, seeking a refund of her deposits. The respondent filed a defense and counterclaim on January 24, 2018. The claimant responded to the counterclaim on March 1, 2018. The case proceeded to hearing where both parties presented their evidence and written submissions. The claimant argued that her liability was unverified and that she was entitled to her deposits. The respondent contended that she was informed that refunds could only occur after ceasing membership and that she was liable for the counterclaimed amount.

5. Analysis:
- Rules: The tribunal considered relevant provisions under the Co-operative Societies Act, particularly Section 73, which pertains to the rights of members regarding refunds upon termination of membership.
- Case Law: The tribunal did not explicitly cite previous cases; however, it relied on principles of fairness and the obligations of cooperative members to account for funds.
- Application: The tribunal found that the claimant's letter of withdrawal constituted a valid notice, leading to her ceasing membership after 60 days. It ruled that she was entitled to a refund of Kshs.152,000 as there was no objection from the respondent regarding her claim. However, the tribunal also determined that the claimant was liable for the counterclaimed amount of Kshs.258,615, as she failed to show cause for her alleged liabilities and did not appear at the hearings regarding the surcharged amounts.

6. Conclusion:
The tribunal ruled in favor of the claimant for Kshs.152,000 while also ruling that the claimant was liable to pay Kshs.258,615 to the respondent. The net amount payable by the claimant to the respondent was Kshs.106,615, plus interest and costs. This decision underscores the accountability of cooperative officials and the importance of adhering to procedural requirements within cooperative societies.

7. Dissent:
There were no dissenting opinions recorded in this case as it was a tribunal decision with a unanimous ruling by the members of the tribunal.

8. Summary:
The tribunal's ruling allowed the claimant to recover her deposits while also holding her liable for a greater amount due to her failure to account for funds while in office. This case highlights the responsibilities of cooperative members and the legal implications of failing to adhere to financial accountability standards within cooperative societies.

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