P.C.E.A Ruiru Sacco Limited v P.C.E.A Ruiru Sacco Limited [2021] KECPT 9 (KLR)

P.C.E.A Ruiru Sacco Limited v P.C.E.A Ruiru Sacco Limited [2021] KECPT 9 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL

AT NAIROBI

TRIBUNAL CASE NO.728 OF 2019

P.C.E.A RUIRU SACCO LIMITED ...................................................CLAIMANT

VERSUS

SAMUEL  KARIUKI  NGUNYI ...................................................RESPONDENT

RULING

1. The matter  for determination  is   Notice of Motion  Application  Under Certificate of Urgency dated  12.3.2021 seeking  the following  prayers:

a. That this  matter  be  certified  urgent  and heard  exparte  in the 1st instance.

b. That a temporary  injunction  be and is hereby  issued  restraining M/S. KINGPIN Auctioneers, M/S BRAIFUS  Auctioneers  & storage  yard, their  agents  and/or  any one  claiming  under them  from selling  Motor  vehicle  Registration  KAT  205 K until  this Application  is heard  and determined. 

c. That Madam  Ruth  T/A KINGPIN Auctioneers be enjoined  in these  proceedings.

d. That motor vehicle  registration  number  KAT  205K  be released to the Respondent  unconditionally.

e. That KINGPIN Auctioneers  fees  and charges  be taxed  or evaluated  by this  Honourable  Tribunal  or the  Auctioneers  Licensing Board.

f. That the Claimant  be ordered  to remove  the Respondent’s name  from Credit Reference  Bureau.

g. Costs  of this Application  be paid  by the Claimant  and the Auctioneer.

2.  The Application  is based  on the grounds  on the face  of the application  and supported  by the  Affidavit  of Samuel  Kariuki deponed  on 12.3.2021.

3. The Application  is opposed vide  the  Replying Affidavit  deponed  on 9.4.2021 by Edward  Ngarega  the treasurer  of the  Claimant.

4. The Application  was ordered  to be  determined by way  of written  submissions.  The Claimant  filed  written  submissions on 26.5.2021 and the Respondent  filed  on  30.8.2021.

Applicant’s Written Submissions

5. The Applicant  submitted  that they  wanted  Ruth  T/A  KINGPIN Auctioneers to be enjoined  in the proceedings since  she attached  the motor vehicle  KAT 205K which  she had not  proclaimed.

6. That the Auctioneer did not  follow  the law  where  discharging  her instructions  and  there  is no consent  to ratify  her actions.

7. That the  warrants  were  issued  on 5.8.2020 and proclamation  is dated  25.7.2020 hence  there  was  fraud  and  illegality  by the Auctioneer.

8. That the motor vehicle  KAT 205K  be released  unconditionally  since  it was  attached  illegally.

9. That the  Auctioneer  has been  holding  the motor vehicle  since  25.7.2020 and todate,  1 year  later,  is still  holding  the motor vehicle  which  has been  attracting Kshs. 100/= storage  charges  daily. That  since  the motor vehicle  has been  held  illegally, it  should  be released  unconditionally.

10. That the Auctioneer’s  fees  and charges  be evaluated. That  the Claimant  frustrated  the consent  by declining  to accept  the title deed  LR. KAJIADO/KAPUTIE/NORTH/20786  as per  the consent  hence  the consent became  void.

Respondent’s/Claimant’s Written  Submission

11. The Claimant  submitted  that  the suit  was compromised  vide  a consent  dated  7.9.2020 which  was  adopted  on 11.12.2020. That  the consent  has neither  been  dissolved  nor  set aside. That  the consent  is therefore  contractually  binding  on the parties.

12. That  the Respondent  did not  comply  with the terms  of the consent  and only  paid Kshs. 44,850/= leaving  a balance  of Kshs. 7,355/= for  legal  fees.

13. That  he did not pay  the agreed  Auctioneer  and storage  charges.

14. That  having entered  into a consent  which  is now an order  of the Tribunal, the  Respondent  seeks  to set aside  the consent  judgment through  the back  door.

15. That  the consent  was not  obtained  by fraud  or illegally  hence  it is contractually binding.

That  the Application  should be dismissed with costs.

Determination

16. We have  carefully  considered  the submissions of the parties.

It is  clear  that the  suit  was comprised  vide  the  consent  dated 7.12.2020 and adopted  as  an order  of the Tribunal  on  11.12.2020.

The consent  reads  as follows:-

By consent:

1. That  the Respondent  shall pay  without  fail the loan  amount  due and owing  in the  sum of Kshs. 461,366.50/= as at  2nd November 2020  together  with all  accrued  interest  and charges  within  three (3 months  of the date  of execution  of this consent.

2. That  to secure  the Respondent’s obligations under  clause 1 above  the Respondent  shall  present the original  title deed  for land parcel  title  No. KJD/KAPUTIEI-NORTH /20786 for valuation  and lien  by deposit  of title  documents  and shall  execute  a loan agreement  and lien  documentation  in favour  of the Claimant.

3. That  the Respondent  shall bear  the cost  of valuation and lien  by deposit  of title documents.

4. That upon execution  of this  consent  and the loan  agreement,  the Claimant shall cause  the Respondent to be  delisted  by the Credit  Reference  Bureaus.

5. That  in the  event  of non-compliance  with clause  1 above,  the Claimant  shall be at liberty  to transfer  into its  name and/or sell land  parcel Title No. KJD/KAPUTIEI-NORTH /20786 for  purposes  of recovery  of the outstanding  loan amount, interest  and charges.

6. That  the Respondent  shall pay the  costs  of the suit  in the sum  of kshs. 52,185/= and Auctioneer  costs  in the sum  of Kshs. 60,000/= together  with accrued  storage charges  within  thirty  (30) days of the date  of this consent. Upon  payment  of the foregoing,  motor vehicle registration  number  KAT 205K will  be released to him.

7. That  in the  event  of non-compliance  with Clause  6  above,  the Auctioneer shall be  at liberty  to sell  motor  vehicle registration  number  KAT  205K   to recover  the  costs  of the suit, Auctioneer  costs  and storage  charges.

17. The terms  of the consent  judgment  are clear  on the  outset.  The said  consent  was entered  freely  by the parties,  the same  has neither  been  challenged  nor set  aside.

18. The Applicant  himself  has not  demonstrated  that he  has  on his part  honoured  the terms  of the consent judgment.

In  the Board  of Trustees National Social  Security  Fund – vs-  Michael  Mwalo [2015] eKLR it was held  that :

“ A Court  of law will  not interfere  with a consent  judgment  except  in circumstances  such as  would provide  a good  ground  for varying  or rescinding a contract  between  parties. To impeach a consent order or a consent  judgment,  it  must  be shown  that  it was  obtained  by fraud, or  collusion or by  an agreement contrary  to the policy  of court.”

In Setton  on Judgments and Orders  (7th Edn), Vol. 1 page  124 the author  states that:

“ Prima  facie,  any order  made  in the  presence  and with  the consent  of Counsel  is binding on all parties to the proceedings  or action,  and on  those  claiming  under  them…..it cannot  be varied  or discharged  unless  obtained  by fraud  or collusion,  or by  an agreement contrary  to the policy  of the court…..; or if  the consent  was given  without sufficient  material  facts, or  in general  for a reason  which  would  enable  the court  to set  aside  an agreement. “

19. In totality,  the terms  of the consent  are  clear and  binding upon  the parties.

The  consent  judgment  was entered  by  the Tribunal  and it is therefore executable  as an order  of the Tribunal.

20. The Application  of the  Respondent,  in light  of the consent  judgment,  therefore lacks  merits and  the same  is dismissed with costs.

Ruling signed, dated and delivered virtually at Nairobi this 25th   day of November, 2021.

Hon. B. Kimemia   Chairperson   Signed  25.11.2021

Hon. J. Mwatsama  Deputy Chairperson Signed  25.11.2021

Mr. Gitonga Kamiti  Member   Signed  25.11.2021

Mr. B. Akusala   Member   Signed  25.11.2021

Mr. P. Gichuki   Member   Signed  25.11.2021

Tribunal Clerk  R. Leweri

Hafsa  holding brief  for Mr. Wanjohi  for the Respondent

Njuru  for the Claimant.

Hon. J. Mwatsama Deputy Chairperson Signed  25.11.2021

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