Jambo Biscuits Limited will now pay Britania sacco Sh 37.7 million for making deductions from its employees salaries and failing to pay over to Britania.
Justice Francis Tuiyot ruled that Britania had proved its claim but since they did not specify the rate of interest it seeks on the amount, it shall attract interest at court rates from the date of filing of the suit.
“The plaintiff has proved its claim. I enter judgement for the of Sh. 37,707,107.40 as prayed,” ruled Justice Tuiyot.
Britania is a cooperative society under cooperative Act and Jambo Biscuits is a company and was at all material times carrying on the business of manufacturing Biscuits and the employees of Jambo were members of Britania sacco.
Britania claimed that Jambo made deductions from its employee’s salaries for the months of July 2007 to December 2007 which ought to have been paid over to Brittania but was not.
The plaintiff argued that towards part of settlement of the claim, Jambo made eight payments amounting to Sh 904,000 during the months of November 2007, December 2007 and January 2008 reducing the principal debt from Sh 2,312,518 to Sh. 1,408,518. The amount claimed was substantially more, being Sh 37,707,107.40 attracting an interest charge of 5 percent per month.
In a statement of defence dated 21st November 2013, Jambo denied owing Britania over Sh 37 million and that its employees are members of Britania sacco or that it made deductions from its employees on an account of that membership adding that any deductions made were duly remitted to Britania.