[2021] KECPT 30 (KLR)
The Tribunal held that its jurisdiction is not strictly limited to internal management disputes but extends to matters affecting the economic interests and investments of members, including land purchased by the society for its members. The Tribunal found that the present dispute, though involving land ownership and...
Source-derived case information.
- Citation
- [2021] KECPT 30 (KLR)
- Parties
- Applicant: Grace Mwikali Somba; Respondent: Muka Mukuu Farmers’ Co-operative Society Ltd; Respondent: Michael Kyavi Mwanzia; Applicant: Anastacia Kanini Kimeu; Respondent: Land Registrar, Machakos
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 164 of 2021
- Procedural Posture
- Preliminary Objection / Ruling on Preliminary Objection Regarding Tribunal Jurisdiction
- Outcome
- preliminary objection dismissed; matter to proceed to full trial
- Legal Topics
- Jurisdiction of Tribunal, Cooperative Societies Disputes, Land Ownership Disputes
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Grace Mwikali Somba
Applicant
Muka Mukuu Farmers’ Co-operative Society Ltd
Respondent
Michael Kyavi Mwanzia
Respondent
Anastacia Kanini Kimeu
Applicant
Land Registrar, Machakos
Respondent
Procedural Posture
Preliminary Objection / Ruling on Preliminary Objection Regarding Tribunal Jurisdiction
Legal Issues
- 1 Whether the Co-operative Tribunal has jurisdiction to adjudicate disputes involving land ownership, boundaries, and usage when such disputes arise within the context of a co-operative society's business.
Ratio Decidendi
The Tribunal held that its jurisdiction is not strictly limited to internal management disputes but extends to matters affecting the economic interests and investments of members, including land purchased by the society for its members. The Tribunal found that the present dispute, though involving land ownership and boundaries, arises directly from the business of the co-operative society and the protection of its members' investments. Therefore, the Tribunal has jurisdiction to hear and determine the matter. The preliminary objection seeking to oust the Tribunal's jurisdiction was found to be unsustainable and was dismissed, allowing the matter to proceed to full trial.
Court Disposition
preliminary objection dismissed; matter to proceed to full trial
Orders
- The Defendant’s Notice of Preliminary Objection dated 15th April 2021 is dismissed with costs.
- The matter to proceed to full trial; parties to file and exchange their witness statements and documents within 30 days.
Full Case Text
Judgment text and source record
41 paragraphs
REPUBLIC OF KENYA
IN THE CO-OPERATIVE TRIBUNAL AT NAIROBI
TRIBUNAL CASE NO. 164 OF 2021
GRACE MWIKALI SOMBA......................................................................CLAIMANT
-VERSUS-
MUKA MUKUU FARMERS’ CO-OPERATIVE SOCIETY LTD.....1ST RESPONDENT
MICHAEL KYAVI MWANZIA.............................................................2ND RESPONDENT
-AND-
ANASTACIA KANINI KIMEU.......................................1ST INTERESTED PARTY
LAND REGISTRAR, MACHAKOS..............................2ND INTERESTED PARTY
RULING
The Respondent filed a Notice of Preliminary Objection dated 15th April 2021, essentially challenging the jurisdiction of this Tribunal over the subject matter, contending that the dispute concerns itself with land ownership, boundaries and usage of land, and these are not contemplated for purposes of adjudication under the Co-operative Societies Act. The parties proceeded by way of written Submissions, which we have carefully considered, and on reliance thereupon we make this Ruling.
ISSUES FOR DETERMINATION
Having carefully considered the documents and arguments by both parties in their Written Submissions, we have framed the following issue for determination:
(a) Whether Tribunal has jurisdiction to handle the present Claim
ANALYSIS OF ISSUES
We now proceed to dissect the issues as follows:
(a) Whether Tribunal has jurisdiction to handle the present Claim
Section 76(1)(c) of the Co-operative Societies Act Cap 490 of the Laws of Kenya provides that if any dispute concerning the business of a co-operative society arises between the society and any other co-operative society, it shall be referred to the Co-operatives Tribunal. This is a wide jurisdiction, but it is not unlimited. This jurisdiction extends to subjects that affect the interests of the Society, including investments. This is what has been defined in law as “the business of the Society.”
The present Claim is between a member of a Co-operative Societies on the one hand, and the said Co-operative Society alongside its Secretary on the other hand. The interested Parties include a member of the Co-operative Society and a Registrar of Lands. While indeed the herein dispute concerns itself with land ownership, boundaries and usage of land, we are not persuaded that it falls outside the ambit of the business of the Society, whose role includes purchase of land for its members.
The business of the society is not just about the internal affairs of management, but includes protection of the economic interests of its members, including their investments, as was held in Gitanga Coffee Growers -vs- Gitau [1970] EA 361. On the premise of the foregoing, we are not persuaded that the Respondents should be permitted to escape from the proceedings hereof
We thus hold that it is unsustainable for this Tribunal to renege its jurisdiction in a case where the economic interests and investments of members through their Co-operative Society is in contestation.
In the interest of justice, we find that the Orders sought should be denied and the Preliminary Objection dated 15th April 2021 be disallowed, and the matter to proceed to hearing.
ORDERS
We therefore Order as follows:
a. The Defendant’s Notice of Preliminary Objection dated 15th April 2021 be and is hereby dismissed with costs;
b. The matter to proceed to full trial: parties to file and exchange their witness statements and documents within 30 days hereof; and
c. Mention for Directions on 25. 1.2022
RULING SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 25TH DAY OF NOVEMBER, 2021.
Hon. B. Kimemia Chairperson Signed 25. 11. 2021
Hon. J. Mwatsama Deputy Chairperson Signed 25. 11. 2021
Mr. Gitonga Kamiti Member Signed 25. 11. 2021
Mr. B. Akusala Member Signed 25. 11. 2021
Mr. P. Gichuki Member Signed 25. 11. 2021
Tribunal Clerk R. Leweri
Chimei for the Claimant
Mutua holding brief for Ayieko for the 1st Respondent
Hon. J. Mwatsama Deputy Chairperson Signed 25. 11. 2021
Mutua- We wish to seek leave to Appeal.
We request for a copy of proceedings and Ruling.
Hon. J. Mwatsama Deputy Chairperson Signed 25. 11. 2021