[2001] KEHC 824 (KLR)

[2001] KEHC 824 (KLR)

The court held that the dispute between the applicant and respondent, both being entities registered under the Co-operative Societies Act and engaged in the provision of financial and banking services, falls squarely within the ambit of 'the business of a co-operative society' as interpreted in Gatanga Coffee...

Source-derived case information.

Citation
[2001] KEHC 824 (KLR)
Parties
Applicant: Murata Farmers Sacco Society Ltd; Respondent: Co-operative Bank of Kenya Ltd
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Judgment Date
25 April 2001
Case Number
Civil Case 548 of 2001
Procedural Posture
Civil Case / Preliminary Objection Ruling
Outcome
preliminary_objection_upheld_suit_struck_out
Legal Topics
Jurisdiction of High Court, Cooperative Societies Disputes, Business of the Society, Bank Customer Relationship
Source Language
english
Civil Procedure Commercial and Corporate Jurisdiction of High Court Cooperative Societies Disputes Business of the Society Bank Customer Relationship

Source-derived case record

Summary, issues, holding and outcome

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Parties

Murata Farmers Sacco Society Ltd

Applicant

Co-operative Bank of Kenya Ltd

Respondent

Procedural Posture

Civil Case / Preliminary Objection Ruling

Legal Issues

  1. 1 Whether the dispute between the applicant and respondent falls within the jurisdiction of the High Court or must be referred to the Co-operative Tribunal under section 76 of the Co-operative Societies Act.
  2. 2 Whether the dispute concerns the 'business of the society' as defined by law.

Ratio Decidendi

The court held that the dispute between the applicant and respondent, both being entities registered under the Co-operative Societies Act and engaged in the provision of financial and banking services, falls squarely within the ambit of 'the business of a co-operative society' as interpreted in Gatanga Coffee Growers Cooperative Society v Gitau. Section 76 of the Co-operative Societies Act mandates that such disputes be referred to the Co-operative Tribunal and not the High Court in the first instance. The registration of the respondent under the Co-operative Societies Act, rather than the Banking Act, further supports the legislative intent to subject such disputes to the Tribunal's...

Court Disposition

preliminary_objection_upheld_suit_struck_out

Orders

  • The preliminary objection is upheld.
  • The suit is struck out with costs to the respondent.