Sheracco Co-operative Savings & Credit Society Limited v Karituri Limited (Under Receivership) & another (Cause E006 of 2021) [2022] KEELRC 1324 (KLR)
The bottom line
#A Kenyan co-operative won Kshs.24.9 million after its members' employer failed to remit salary deductions, showing unrecovered claims can succeed even against companies in receivership.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant proved its claim for the unremitted members' deductions of Kshs.24,936,647.97
Claim proved on a balance of probability; debt acknowledged in the Respondent's letter of July 14, 2016 for Kshs.22,156,313, with the balance being interest under Section 35 of the Co-operative Societies Act
The Claimant, a co-operative society whose members were employees of the Respondent, gave oral testimony through its chair and produced letters in which the receiver-manager acknowledged the debt. The Respondent, though served, did not enter appearance or defend. The court found the oral and documentary evidence sufficient to prove the liquidated claim.
Applicable rate and period of interest on the awarded sum
Interest at court rates from the date of filing the claim until payment in full; pre-filing accrued interest already included in the claimed sum
The court reasoned that the claimant ought to have and did include accrued interest up to filing in the claimed amount. Post-filing interest falls under Section 25 of the Civil Procedure Act, with the court fixing a reasonable rate mindful of practicability of recovery, so as to avoid a futile award.
Legal principles established
#- Once a matter is filed in court, post-filing interest is governed by Section 25 of the Civil Procedure Act, with the court fixing a reasonable rate
- Failure to enter appearance or file defence despite proper service permits judgment on formal proof where the claimant proves its claim
Court orders
#- 1.Judgment be and is hereby entered for the Claimant against the 1st Respondent in the sum of Kshs.24,936,647.97
- 2.The said principal sum shall attract interest at court rates from the date of filing the cause till payment in full
- 3.Costs to the Claimant
- Jurisdiction invoked
- Matter transferred from the High Court (Nakuru HCCC No. 14 of 2016) to the Employment and Labour Relations Court on jurisdictional grounds; claim founded on the Co-operative Societies Act and Civil Procedure Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Sheracco Co-operative Savings & Credit Society Limited v Karituri Limited (Under Receivership) & another (Cause E006 of 2021) [2022] KEELRC 1324 (KLR)", Case Analysis (2022). ELRC Cause No. E006 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1324/eng@2022-07-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.