Ndungú & others v Limuru Dairy Co-op. Soc. Ltd (Tribunal Case 595 of 2015) [2023] KECPT 47 (KLR) (Civ) (26 January 2023) (Judgment)
- Court
- Co-operative Tribunal
- Case number
- 47
- Citation
- [2023] KECPT 47 (KLR)
- Decided
- 26 January 2023
We find in favor of the Claimant, declaring that the Respondent holds LR No 11164/4 in trust for the Claimants and/or the 995 founding members of the Respondent, and ordering the Respondent to transfer LR No 11164/4 to the Claimants or their nominee.
Facts
The Claimants and other members of the Respondent cooperative society acquired land in 2009-2014. In 2013, the Respondent borrowed money from Kiambu Unity Savings and Credit Co-op. Society and used the land as collateral. The Claimants claim the Respondent should account for the borrowed funds and transfer the land.
Issues
- Whether the Respondent should account for the borrowed funds and transfer the land.
- Whether the Board meeting resolutions bind the members and if the members could rectify the same.
- Whether the Respondent's stand that the Board registered and agreed on the debt to be paid is valid.
Reasoning
The court found that the debt was agreed upon by the board and that the minutes of the board meetings were clear. The board's resolution was not enough to bind the members, and the land should be transferred to the Claimants.
Outcome
In favor of the Claimant
Orders
- A Declaration that the Respondent holds LR No 11164/4 in trust for the Claimants and/or the 995 founding members of the Respondent.
- An order directed to the Respondent to transfer LR No 11164/4 to the Claimants or their nominee.
- An order of injunction restraining the Respondent from creating a further charge over LR No 11164/4 in favor of Kiambu Unity Savings And Credit Co-operatie Society Limited or any other Lender whosoever to secure a loan of Kshs 100,000,000/- (One Hundred Million Shillings) or any other sum without the approval, authority, knowledge consent of the 995 Claimants until this matter is heard and determined or further orders of this Tribunal.
- Plus costs and interest in the suit.
Remedies
- Declaration that the Respondent holds LR No 11164/4 in trust for the Claimants and/or the 995 founding members of the Respondent.
- Order directed to the Respondent to transfer LR No 11164/4 to the Claimants or their nominee.
- Order of injunction restraining the Respondent from creating a further charge over LR No 11164/4 in favor of Kiambu Unity Savings And Credit Co-operatie Society Limited or any other Lender whosoever to secure a loan of Kshs 100,000,000/- (One Hundred Million Shillings) or any other sum without the approval, authority, knowledge consent of the 995 Claimants until this matter is heard and determined or further orders of this Tribunal.
- Plus costs and interest in the suit.
Authorities cited
Legislation (1)
- Cooperative Societies Act
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