PCEA elder fails to suspend Sh5.8 debt judgment
The church elder claimed that he only became aware of the decision when auctioneers served him a warrant for attachment.
What you need to know:
- Mr Ndumo told the tribunal that he was not served with the court documents and not aware of the claim brought against him.
- The Presbyterian Church of East Africa elder rushed to the tribunal after auctioneers were engaged to attach his assets.
The Co-operatives tribunal has dismissed an application by a church elder seeking to review a judgment of Sh5.8 million entered against last year, clearing the way for auctioneers to attach his household items to repay the debt.
The tribunal chaired by Beatrice Kimemia dismissed the application by David Nderitu Ndumo, seeking to suspend the judgment and the orders issued against him on August 3, last year.
The Presbyterian Church of East Africa (PCEA) elder, who was elected the honorary treasurer but was stopped by the court, claimed that he only became aware of the decision when auctioneers served him a warrant for attachment in February this year.
Mr Ndumo told the tribunal that he was not served with the court documents and not aware of the claim brought against him by the 15 guarantors, demanding to be paid the money.
“It is our considered decision that the 1st respondent was not denied the right to be heard and as such, the decision of August 3, 2023 cannot be said to have been made with some fault on the part of the tribunal or the other parties in the matter,” said the eight-member tribunal.
Mr Ndumo rushed to the tribunal after 15 members of Sheria Sacco engaged Wright Auctioneers to attach his assets after failing to repay his loan, forcing them to take up the liability.
The 15 among them James Olago sought to recover the money after the church elder defaulted on a loan he borrowed from the Sacco, forcing him and other guarantors to repay the money.
The auctioneers raided Mr Ndumo’s home in Marurui estate and identified several items including electronics, furniture and cars for sale, to recover the loan deducted from the guarantors.
Mr Ndumo said he only became aware of the judgment on February 14, 2024 and was apprehensive that they might attach his household items at the lapse of seven days.
He said he was continued to pay the money and the last payment was Sh81,000 in February 2024 and was surprised to be served with the warrants of attachment.
The tribunal said the judgement issued on August 3, 2023 was regular and Mr Ndumo was properly served with the summons to appear and there was evidence of him confirming the service by signing the document.
The 15 guarantors made a claim against Mr Ndumo on November 28, 2019 stating that he borrowed various loans between March 14 and August 7, 2018 amounting to Sh5.8 million from Sheria Sacco Society Ltd.
He failed to service the loan despite several demands.
Whereas the guarantors sought orders compelling him to pay the loan or give collateral so that they could be discharge as guarantors, the Sacco said it followed the law in pursuing the defaulted loan.
The Tribunal was informed that the Sacco gave the guarantors a loan known as Mkombozi, which was used to offset the defaulted money and also help the members to remain.
