Samuel Marak & 6 others v Nyabomite Farmers Co-operative Society Ltd & 4 others [2020] KECPT 81 (KLR)

Samuel Marak & 6 others v Nyabomite Farmers Co-operative Society Ltd & 4 others [2020] KECPT 81 (KLR)

REPUBLIC OF KENYA

IN THE COOPERATIVE TRIBUNAL AT NAIROBI
TRIBUNAL CASE NO.   328 OF 2019

SAMUEL MARAK................................................................................1ST CLAIMANT

ZABLON CHANGE..............................................................................2ND CLAIMANT

JOSIAH OYARO...................................................................................3RD CLAIMANT

DAVID NYARIBO...................................................................................4TH CLAIMANT

ALFRED NYAIRO..................................................................................5TH CLAIMANT

ZACHARY ONDARA..............................................................................6TH CLAIMANT

SAMUEL MOSES....................................................................................7TH CLAIMANT

VERSUS

    NYABOMITE FARMERS                                                                                                           

CO-OPERATIVE SOCIETY LTD & 4 OTHERS....................................RESPONDENTS

RULING

What  is before  us for consideration  and determination  are  the following  Applications:

(a) Claimant’s  Application  dated 18.6.2019;

(b) Respondent’s  Application  dated 1.7.2019; and

(c) Claimant’s  Application  dated 31.7.2019.

For  procedural  order,  we will determine  the Applications on the basis  of  the order  in which  they  were filed.

Mode  of  disposal

Vide  the direction  given by  the Tribunal  on  2018/2019 all the three  Applications  were canvassed  by way  of  written  submissions. The Claimants  filed their  initial set of  submissions  on  5.12.2019. They also  filed their supplementary  submissions  on  28.1.2020.

The Respondents filed  their  written  submissions  on 21.1.2020.

Application dated 18.6.2019

Vide  this Application,  the Claimant  is seeking  orders  inter alia for the Respondents to be  barred  from  holding  the meeting  scheduled  for 25.6.2019 or on any other date  until the  suit  is heard and determined. The  Application is  supported  by the grounds  on its face  and the supporting  Affidavit of Samwel  Marak  sworn  on 18.6.2019.

Vide  the said Application,  the Claimants contend  that they  are the legal officials  of the  1st  Respondent  pursuant  to an order  of the court. That  they will suffer  irreparably  if the Respondents  are allowed  to conduct  the meeting  scheduled  for  25.6.2019.

Response  to the application

The Respondents  have opposed  the Application  by filing  a Replying Affidavit  sworn by  Josphat  Mochomba  Onchiri  on  14.8.2019. Vide  this Response,  the Respondents contends  that the  order  of the High Court (at Nyamira) made on  2.11.2018, did  not  remove  the  Respondents  from office.  That the  Respondents were duly elected  into  office  on  11.10.2018. That  the Claimants  were surcharged  by the Commissioner  of Co-operatives  and  are yet  to  challenge the said  surcharge  order.

Determination

We have  perused  Annexutre  SM-1 of the  annextures  to the Affidavit in support  of the Applications.  They are  two orders  made by  the High Court  at Nyamira. The first  order was  made on  1.11.2018. The said order  restrained  the Respondents  from  removing  the claimants from the  1st Respondent’s  Management  Committee.

The order  made on  14.2.2019 referred  the matter  to the Tribunal. Further,  the  court extended  the orders  made on  11.11.2018 and  limited  it to compromise  by consent  of both  parties or setting aside  by  this Tribunal.

We  have appreciated  the averment  made at paragraph  5-8 of the Replying  Affidavit  sworn by the  5th  Respondent.

We have  particularly  perused annexures JMO-1, JMO-2 (a) and  JMO-2 (b).  It is  apparent  that the Commissioner  of Co-operatives  Development  instituted  an inquiry  into the affairs  of the  1st Respondent.  That an  inquiry  report was  presented  and adopted  by the members  of  the 1st  Respondent  at an Annual General  Meeting  held on 11.10.2018. That  the said  Annual General  Meeting  approved  the removal  of the 1st  - 6th  Claimants  and appointment  of the Respondents  as  Interim  Committee Members.

We have perused  the record  and note that  the  Claimants  did not  make any  rebuttal  to these  contentions by  the Respondents.  If it is  true that  there was  an inquiry undertaken  by the  Commissioner  of Co-operatives  which  resulted  in the Claimants being surcharged  and  removed  from office,  then we  will not  interfere   with  the election  of the  current officials  at this stage until the main  claim is heard  and determined. We say  no  noting  that the High  Court order  issued on  19.2.2019 allowed  us to  set aside  the interim  orders granted.

 We say so  taking into  account  the obtaining  situation  in the Country. It is common  knowledge  that the Country  is  facing  an unprecedented pandemic which has compelled various  Government  Agencies and/or  departments to  pronounce  certain  measures. To this end, we take Judicial Notice of the Pronouncements made by the Commissioner of Co-operatives Development  on 16.3.2020 and  26.3.2020.  In  order  to guarantee  seamless  operation  of the 1st  Respondent  and compounded  by our  observations  above, we  disallow  the Claimant’s  Application dated  18.6.2019 and  subsequently  direct  that the officials  elected  on  11.10.2018 to continue  being  in office  pending  the hearing  and determination  of the  main  claim.

Respondent’s application dated 1.7.2019

The Application seeks  for orders,  inter alia, that the  Tribunal  be pleased  to set aside,  vary  and/or  review  the orders  made on  19.6.2019 and allow  them to convene  the Special  General  Meeting  as per  the Notice  dated 11.6.2019. That in the  alternative, the  Tribunal  be pleased  to direct  that the Commissioner  of Cooperative  Development  does call and  convene  a Special General  Meeting for purposes  of  approving  the  Finance  budget of the 1st  Respondent.

Response  by the  claimants

The Claimants have  opposed  the  Application by filing  statement  of  Grounds  of Opposition  dated  3.7.19 and Replying  Affidavit  sworn by  Samwel  Marak on even date.

Determination

In view  of our finding  in the Claimant’s Application  dated  18.6.2019,  we find  that the  instant  Application  is spent.

Claimant’s  application  dated  31.7.2019

Similarly, in light  of our orders  in the Claimant’s  Application  dated  18.6.19,  we find that  the  Instant Application  is spent.

Conclusion

The upshot  of the foregoing  is  that we  disallow  Claimant’s  Application  dated 18.6.2019 and direct  that the officials  elected  on  11.10.2018 to continue  being in  office pending  the hearing  and  determination  of  the main claim.  Consequently, the Respondent’s Application dated 1.7.2019 and the Claimant’s Application dated 31.7.2019 are hereby marked as spent.

Read and delivered in accordance with the guidelines issued by  the Hon. Chief Justice  on 15.3.2020, this 9th    day of April,  2020.

Prepared by Hon. B.Kimemia Chairman, Hon. F. Terer Deputy Chairman, P. Gichuki Member.

With consent  of the parties, the  final orders  to be delivered  by email, as accordance  to the prevailing  measures  during  the covid-19.

Hon. B. Kimemia        Chairman                           Signed      9.4.2020

Hon. F. Terer                Deputy Chairman             Signed      9.4.2020

P. Gichuki                     Member                             Signed      9.4.2020

▲ To the top