By The Weekly Vision Team
The Co-operative Tribunal has dismissed an application by a church official seeking to stay a decision that ordered him to repay Sh5.8 million he borrowed from Sheria Sacco. In August of last year, the Tribunal directed David Ndumo, Treasurer of the Presbyterian Church of East Africa (PCEA), to pay the amount after defaulting on a loan taken in 2018.
Fifteen guarantors, all members of Sheria Sacco, had sought to recover the defaulted loan, with Juma Olago leading the group. They engaged Wright Auctioneers to seize Ndumo’s assets after he failed to repay the loan, leaving them liable as guarantors. In an earlier ruling, the Tribunal ordered the auction of Ndumo’s properties, including three cars—a Toyota Pass, a Nissan Latio, and a Toyota Prado—to help offset the debt.
Ndumo, however, argued that he had not been served with court papers by the plaintiffs and sought an injunction to prevent the auction of his assets. The guarantors opposed this move, claiming that Ndumo had misled the court to obtain the injunction. “From the outset, I wish to state that the applicant has failed to show any compelling reasons to warrant setting aside of the judgement and consequential orders,” said the guarantors’ lawyer, Wambugu Wanjohi, in March.
Wanjohi further argued that Ndumo only approached the court after the guarantors decided to execute the judgement and auction his property. He added that the original claim was filed in 2019 under a certificate of urgency and that Ndumo was served with the order on January 15, 2020, in Nyeri town, where he acknowledged receipt by signing the principal copies and an affidavit of service.
The guarantors accused Ndumo of neglecting to service the loan despite receiving multiple notices, which eventually compelled the guarantors to repay the amount. The guarantors, including Olago, Charles Maina, Jane Njoroge, and Benjamin Ombogo, urged the court to dismiss Ndumo’s application and allow the auctioneer to proceed with the sale of the seized items.
Wright Auctioneers had already raided Ndumo’s home in the Marurui estate and seized items, including electronics, furniture, and cars, to be sold to recover the amount deducted from the guarantors. The guarantors had initially made a claim against Ndumo on November 28, 2019, stating that he borrowed various loans between March 14 and August 7, 2018, amounting to Sh5.8 million, but failed to service them despite several demands.
Sheria Sacco maintained that it followed the law in pursuing the defaulting loans. The Tribunal heard that the Sacco provided the guarantors with a loan known as Mkombozi, which was used to offset Ndumo’s debt.
Ndumo sought a stay of execution of the judgement, claiming he only became aware of the claim and judgement when he was served with warrants of attachment on February 14, 2024. However, on August 29, the Tribunal, chaired by Beatrice Kimemia, dismissed Ndumo’s application, ruling that the judgement entered on August 3, 2023, was regular, as Ndumo had been properly served with summons, with evidence showing he had received and signed for the documents.
“It is our considered decision that the 1st Respondent was not denied the right to be heard, and as such, the decision of 3rd August, 2023, cannot be said to have been made with some ‘fault’ on the part of the Tribunal or the other parties in the matter,” the Tribunal stated.
Furthermore, the Tribunal ruled that Ndumo’s application dated February 19, 2024, lacked merit and was therefore dismissed.
