Joseph Okello v CS 4658 Mala Sacco Society Ltd; Co-operative Bank of Kenya(Garnishee) [2020] eKLR Case Summary

Court

Co-operative Tribunal at Nairobi

Category

Civil

Judge(s)

Hon. B. Kimemia (Chairman), Hon. F. Terer (Deputy Chairman), P. Gichuki (Member)

Judgment Date

September 17, 2020

Country

Kenya

Document Type

PDF

Number of Pages

Case Summary Full Judgment

Explore the case summary of Joseph Okello v CS 4658 Mala Sacco Society Ltd; Co-operative Bank of Kenya (Garnishee) [2020] eKLR. Gain insights into the legal proceedings and key rulings impacting the financial sector.

Case Brief: Joseph Okello v CS 4658 Mala Sacco Society Ltd; Co-operative Bank of Kenya(Garnishee) [2020] eKLR

1. Case Information:
- Name of the Case: Joseph Okello v. CS 4658 Mala Sacco Society Ltd
- Case Number: Tribunal Case No. 314 of 2019
- Court: Co-operative Tribunal at Nairobi
- Date Delivered: 17th September 2020
- Category of Law: Civil
- Judge(s): Hon. B. Kimemia (Chairman), Hon. F. Terer (Deputy Chairman), P. Gichuki (Member)
- Country: Kenya

2. Questions Presented:
The court must resolve the following central legal issues:
a. Whether the Decree Holder (Joseph Okello) has established a proper basis to warrant the Tribunal to attach the Respondent’s funds held by the Garnishee (Co-operative Bank of Kenya).
b. Who should meet the costs of the Application.

3. Facts of the Case:
The Claimant, Joseph Okello, filed an application seeking to attach funds owed to him by the Respondent, CS 4658 Mala Sacco Society Ltd, through the Garnishee, Co-operative Bank of Kenya. The Claimant had a decree dated 11th November 2019, which stated that the Respondent owed him Kshs. 183,053.36, comprising Kshs. 157,178.30 as the principal amount and Kshs. 25,875 as costs. The Respondent acknowledged owing the Claimant but claimed financial incapacity to satisfy the decree fully, arguing that the attachment of funds would prejudice its operations and its members.

4. Procedural History:
The Claimant filed an urgent application on 29th January 2020, seeking to attach the funds held by the Garnishee. The Respondent opposed the application, asserting its financial difficulties and requesting to pay the owed amount in installments. The Garnishee did not file any response. The Tribunal directed that the application be canvassed through written submissions. The Claimant submitted his arguments, while the Respondent and Garnishee did not submit any.

5. Analysis:
- Rules: The court considered the provisions of Order 23 of the Civil Procedure Rules, which governs garnishee proceedings. According to Order 23 Rule (1), a court may attach debts owed to a judgment debtor by a third party (the garnishee) to satisfy an unsatisfied decree.
- Case Law: The court referenced *Ecobank Kenya Ltd v. True North Construction Company Ltd & Another [2018] eKLR*, which established that garnishee proceedings are intended to allow a decree holder to reach a debt due from the garnishee to the judgment debtor, provided the garnishee is indeed indebted to the judgment debtor.
- Application: The court found that the Respondent had confirmed its indebtedness to the Claimant and that the decree remained unsatisfied. The Tribunal ruled that the Respondent's financial difficulties did not provide a sufficient basis to deny the Claimant's application to attach the funds.

6. Conclusion:
The Tribunal granted the Claimant's application, issuing a Decree Absolute directing the Garnishee to pay Kshs. 183,053.36 to satisfy the Claimant's decree. The Tribunal also ordered the Respondent to bear the costs of the garnishee proceedings.

7. Dissent:
There were no dissenting opinions noted in this case.

8. Summary:
The Tribunal's ruling in *Joseph Okello v. CS 4658 Mala Sacco Society Ltd* underscores the enforceability of decrees in civil matters and the obligations of parties to satisfy judgments. The decision highlights the court's stance on protecting the rights of judgment creditors while balancing the interests of judgment debtors, even in cases of financial hardship. The outcome reinforces the legal principle that a decree holder has the right to pursue owed debts through garnishee proceedings when the conditions are met.

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Joseph Okello v CS 4658 Mala Sacco Society Ltd; Co-operative Bank of Kenya(Garnishee) [2020] eKLR Case Summary

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