Case ID:176297

Kenya Union of Savings & Credit Cooperatives Limited (Kuscco) v Ogembo Tea Sacco Society Limited [2021] eKLR

Case Metadata

Case Number:

Tribunal Case 258 of 2020

Parties:

Kenya Union of Savings & Credit Cooperatives Limited (Kuscco) v Ogembo Tea Sacco Society Limited

Date Delivered:

27 May 2021

Case Class:

Civil

Court:

Cooperative Tribunal

Case Action:

Judgment

Judge(s):

Hon. B. Kimemia Chairperson .................................... Hon. J. Mwatsama Deputy Chairperson .................................... Mr. P. Gichuki Member

Citation:

Kenya Union of Savings & Credit Cooperatives Limited (Kuscco) v Ogembo Tea Sacco Society Limited [2021] eKLR

Court Division:

Tribunal

County:

Nairobi

Case Outcome:

Damages awarded

Disclaimer:

The information contained in the above segment is not part of the judicial opinion delivered by the Court. The metadata has been prepared by Kenya Law as a guide in understanding the subject of the judicial opinion. Kenya Law makes no warranties as to the comprehensiveness or accuracy of the information

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL

AT NAIROBI

TRIBUNAL CASE NO258 OF 2020

KENYA UNION OF SAVINGS & CREDIT COOPERATIVES

LIMITED (KUSCCO).................................................CLAIMANT

VERSUS

OGEMBO TEA SACCO SOCIETY LIMITED...RESPONDENT

JUDGMENT

1. The Claimant filed Statement of Claim dated

7.8.2020

on 24.8.2020. The claim is for repayment of loan advanced to the Respondent in the year 2011 for

Kshs.3,740,000/=.

The loan fell into arrears and despite several demands by the Claimant the sum of money remained unpaid.

2. The claim is thus for:

a. Damages for breach of contract

b. Kshs. 7,252,492

c. Interest on (a) and (b)

d. Any other relief

e. Costs of the suit.

3. The Respondent despite service as per the Affidavit of Services of

Benjamin Mutua

sworn on

29.10.20

and filed on

6.11.2020

evidences service of summons to enter appearance and statement of claim were served on Respondent. The Respondent failed to enter appearance and a Request for Judgment Application dated

29.10.2020

was filed.

The Request for Judgment Application was allowed on

18.11.2020.

4. The matter was slated for formal proof on

26.1.21.

CW1 Grace Muiruri

gave her evidence adopting her witness statement dated

7.8.2020.

The Statement gives detailed account of the Claimant being an umbrella Co-operative society body and advances credit facilities to member cooperatives.

In the year 2014 the Respondent requested for a loan and an approval for

Kshs. 3,740,000/=

on

19

th

June 2014.

5. The Respondent paid their loan for a while then begun defaulting.

Despite demand letters and default notices the Respondent has refused to pay up. The loan accrues interest to

13.5.%

per annum and default penalty of

6%

per annum.

The loan plus interest has accumulated to

Kshs.7.252,492

at date of filing suit.

6. There being no statement of Defence we are called up to make a determination.

The Respondent has defaulted paying his loans.

The Claimant has evidenced the:

a.

Loan Application and loan agreement forms as advanced.

b. Kuscco cheque payment voucher.

c. Default notices from Kuscco and

d. Demand letters

e. Financial Statements.

7. Issues to be addressed

Issue one:- Was there a loan advanced?

Issue two: Whether the Respondents defaulted in payment of the loans?

Issue three:- Remedies for breach of contract.

8. Issue one:

Was there a loan advanced?

The Claimant has evidenced the loans advanced to the Respondent, when it was advanced and the repayment plan or period 36 monthly installments.

9. Issue two:

Whether the Respondents defaulted in payment of the loans

?

The Respondent can be said to have defaulted in the loan repayment. This is evidenced by the default notices from Kuscco requesting for repayment and demand letters from the Respondent Advocates.

10. Issues three:

Question- what is the reason for breach of a loan agreement?

The remedy for any loan is repayment of the loan itself.

11. Issue four:

Are General Damages payable in this instance?

General Damages are awarded and paid in instances where there has been breach.

Conclusion

The upshot of the above is that judgment is entered in favour of claimant against Respondent for:

a. ...

b.

c. Interest of (a) above from date of filing suit.

d. Prayer for damages for breach fails.

e. Costs of suit.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY THIS 27

TH

DAY OF MAY, 2021

Hon. B. Kimemia Chairperson ....................................

Hon. J. Mwatsama Deputy Chairperson ....................................

Mr. P. Gichuki Member ....................................

Tribunal Clerk .............................