Isaac Murungi v Diligence Transport Services And Credit C0-Operative Society Limited & 3 others [2021] KECPT 540 (KLR)
- Court
- Co-operative Tribunal
- Case number
- 540
- Citation
- [2021] KECPT 540 (KLR)
The suspension of the Claimant was not lawful and was quashed. The court ordered an inquiry into the affairs of the 1st Respondent by the Commissioner of Co-operatives.
Facts
The Claimant was suspended as a member of the 1st Respondent (Diligence Transport Services and Credit Cooperative Society Limited) and sought to have the suspension lifted and to be reinstated as a member. The 2nd, 3rd, and 4th Respondents (Patrick Mwenda Mwitii, Antony Kimathi, and Mwiti Magiri) were also involved in the dispute.
Issues
- Was the suspension of the Claimant lawful?
- Has funds of the 1st Respondent been misappropriated by the 2nd, 3rd, and 4th Respondents?
- Appointment of new officials to manage the affairs of the 1st Respondent.
Reasoning
The court found that the suspension was not in accordance with the by-laws and that there was no evidence of misappropriation of funds by the 2nd, 3rd, and 4th Respondents.
Outcome
The suspension of the Claimant was quashed and the court ordered an inquiry into the affairs of the 1st Respondent.
Orders
- Quash the suspension of the Claimant and reinstate the Claimant as a member of the 1st Respondent.
- Order an inquiry by the Commissioner of Co-operatives into the accounts, investment reports, and all affairs of the 1st Respondent.
- Bar the Respondents from dealing with the affairs of the 1st Respondent pending the hearing and determination of the suit.
- Bar the Respondents from dealing with the affairs of the 1st Respondent.
- Issue an order for the 2nd, 3rd, and 4th Respondents to produce all cash accounts, audited books/report, investment report, documents, and securities of the society.
- Issue an order appointing a competent person(s) to manage the affairs of the 1st Respondent and to exercise all the powers of the society to the exclusion of the current board of directors.
- Issue an order for an inquiry into the by-laws, working, and financial conditions of the 1st Respondent.
Remedies
- Reinstatement of the Claimant as a member of the 1st Respondent.
- Inquiry into the affairs of the 1st Respondent by the Commissioner of Co-operatives.
Authorities cited
Cases cited (3)
- Mukhisa Biscuit Manufacturers Limited -vs- West End Distributors Limited
- Aviation & Allied Workers Union Kenya- vs- Kenya Airways Limited & 3 others
- HCC. NO. 1 OF 2017- VOI Wilmot Mwandilo & 3 others - vs- Eliud Timothy Mwangi Justice J.
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