Simpson Ntwiga M’ireri v New Muthambi Farmers Co-Operative Society [2015] KEELRC 914 (KLR)

Employment and Labour Relations Court at Nairobi

18 June 2015

HWHellen S. Wasilwa

429 words in judgment

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The bottom line

A Kenyan co-operative that admitted owing its retired manager money in court papers had to pay the full amount because it couldn't prove any payments.

What this practically means

Executive summary

The Claimant, Simpson Ntwiga M'ireri, sued New Muthambi Farmers Co-operative Society claiming unpaid salary arrears and terminal benefits from his employment as Secretary Manager for 31 years until his retirement on 30/9/2009. He claimed Kshs.761,770/= in accrued salary arrears plus tabulated terminal benefits, asserting that a letter of 12/8/2011 from the Respondent's advocates acknowledged the debt with a promise to pay when finances improved, and that only Kshs.10,000/= had been paid after filing suit. The Respondent, acting in person, admitted in its response that it owed the Claimant Kshs.607,271.06, listing it as a payable debt and stating it had paid Kshs.83,351/= towards it. In oral evidence, however, RW1 claimed to have paid Kshs.427,156/= in bits, leaving a balance of Kshs.357,705/=. The court found a direct admission of the debt in the Respondent's pleadings, noted the absence of any evidence substantiating the alleged part payments apart from the Kshs.10,000/= admitted by the Claimant, and observed that the Respondent had not controverted the claim of Kshs.761,770/=. Judgment was accordingly entered for the Claimant as prayed for Kshs.761,770/= less Kshs.10,000/=, leaving a balance of Kshs.751,770/=, together with costs.

Key legal issues

Quantum of unpaid salary arrears and terminal benefits

Holding

Judgment entered for the Claimant as prayed for Kshs.761,770/= less the Kshs.10,000/= admitted as paid.

Reasoning

The Respondent admitted in its pleadings owing Kshs.607,271.06 and listed it as a payable debt. It alleged part payments leaving a balance of Kshs.357,705/=, but produced no evidence of those payments except the Kshs.10,000/= the Claimant admitted receiving. The Respondent also did not controvert the Claimant's tabulated claim of Kshs.761,770/=, so judgment was entered as prayed minus the admitted payment.

p. 2

Legal principles established

An admission in a party's pleadings of a debt owed is binding; payments alleged to reduce the admitted amount must be proved by evidence.
Where a respondent fails to controvert a claim with evidence, the claim stands unchallenged.

Court orders

1.Judgment entered for the Claimant for Kshs.761,770/= less Kshs.10,000/= admitted as paid, leaving a balance of Kshs.751,770/=
2.Costs to the Claimant

Jurisdiction invoked: Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (employment dispute over terminal benefits and salary arrears)

Key timeline

Practical implications

Frequently asked questions

Cite this brief

Caselaw, "Simpson Ntwiga M’ireri v New Muthambi Farmers Co-Operative Society [2015] KEELRC 914 (KLR)", Case Analysis (2015). Cause No. 1860 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/914/eng@2015-06-18

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.