[2021] KECPT 248 (KLR)
The Tribunal held that it has jurisdiction to hear and determine disputes between co-operative societies as provided under Section 76(1)(c) of the Co-operative Societies Act. The Tribunal found that the present claim, being a dispute between two co-operative societies, falls squarely within its jurisdiction. The...
Source-derived case information.
- Citation
- [2021] KECPT 248 (KLR)
- Parties
- Claimant: Nyariki Farmers Co-operative Society Limited; Respondent: Miathathia Coffee Farmers Co-operative Society Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 220 of 2019
- Procedural Posture
- Miscellaneous Application / Ruling on Preliminary Objection (jurisdiction)
- Outcome
- application dismissed; matter to proceed to full trial
- Legal Topics
- Jurisdiction of Tribunal, Cooperative Society Disputes, Transfer of Proceedings
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Nyariki Farmers Co-operative Society Limited
Claimant
Miathathia Coffee Farmers Co-operative Society Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Preliminary Objection (jurisdiction)
Legal Issues
- 1 Whether the Tribunal has jurisdiction to handle the present claim between two co-operative societies.
Ratio Decidendi
The Tribunal held that it has jurisdiction to hear and determine disputes between co-operative societies as provided under Section 76(1)(c) of the Co-operative Societies Act. The Tribunal found that the present claim, being a dispute between two co-operative societies, falls squarely within its jurisdiction. The Tribunal relied on precedent affirming that such disputes are not within the jurisdiction of the High Court. The Tribunal further noted that the business of a co-operative society encompasses the protection of members' economic interests, and therefore, the Tribunal cannot abdicate its jurisdiction in such matters. Consequently, the application challenging the Tribunal's...
Court Disposition
application dismissed; matter to proceed to full trial
Orders
- The Claimant’s Application dated 20th January 2021 is dismissed with costs in the cause.
- 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
35 paragraphs
REPUBLIC OF KENYA
IN THE CO-OPERATIVE TRIBUNAL
AT NAIROBI
TRIBUNAL CASE NO. 220 OF 2019
NYARIKI FARMERS CO-OPERATIVE SOCIETY LIMITED................CLAIMANT
-VERSUS-
MIATHATHIA COFFEE FARMERS
CO-OPERATIVE SOCIETY LIMITED.................................................RESPONDENT
RULING
The Respondent filed a Notice of Motion Application dated 20th January 2021, essentially challenging the jurisdiction of this Tribunal over the subject matter, contending that the matter be transferred to the High Court, Environment and Lands Court Division. 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 theCo-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 So-operative Society, it shall be referred to the Co-operatives Tribunal. This is a wide jurisdiction that does not isolate the subject of the dispute.
The present Claim is between two Co-operative Societies, and the Tribunal is clothed with jurisdiction to handle the dispute.
In the case of Kinogerana Farmers’ Co-Operative Society Ltd -vs- Murata Farmers SACCO Limited [2006] eKLR it was held that the High Court did not have jurisdiction to entertain the suit relating to a dispute between the two Co-operative Societies.
The business of the Society is not just about the internal affairs, but includes protection of the economic interests of its members, including their investments, as was held in Gatanga Coffee Growers -vs- Gitau [1970] EA 361. It is thus unsustainable for this Tribunal to renege its jurisdiction in a case where the economic interests and investments of members through their respective Co-operative Societies is in contestation.
In the interest of justice, we find that the Orders sought should be denied and the Application dated 20th January 2021 be disallowed, and the matter to proceed to hearing.
ORDERS
We therefore Order as follows:
(a)The Claimant’s Application dated 20th January 2021 be and is hereby dismissed with costs in the cause;
(b)The matter to proceed to full trial: parties to file and exchange their witness statements and documents within 30 days hereof; and
(c)Hearing on 19. 5.2022.
Ruling signed, dated and delivered virtually at Nairobi this 2ndday of September,2021.
Hon. B. Kimemia Chairperson Signed 2. 9.2021
Hon. J. Mwatsama Deputy Chairperson Signed 2. 9.2021
Mr. Gitonga Kamiti Member Signed 2. 9.2021
Mr. B. Akusala Member Signed 2. 9.2021
Tribunal Clerk R. Leweri
Muriuki Advocate for Claimant/Respondent
Nabutete Advocate for Applicant Present
Hon. B. Kimemia Chairperson Signed 2. 9.2021