[2002] KEHC 1083 (KLR)
The court held that, by virtue of Section 12 of the Co-operative Societies Act, a co-operative society is a distinct legal entity from its management members. Therefore, a decree obtained against the society cannot be executed against its officials, as they are not parties to the suit and no judgment was entered...
Source-derived case information.
- Citation
- [2002] KEHC 1083 (KLR)
- Parties
- Plaintiff: Stephen Karanja Waweru; Defendant: Mangu Coffee Growers Co-operative Society Ltd
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Children Miscellaneous Application 664 of 1998
- Procedural Posture
- Miscellaneous Application / Ruling on Preliminary Objection
- Outcome
- preliminary objection upheld
- Legal Topics
- Execution of Decrees, Locus Standi, Liability of Corporate Entities
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Stephen Karanja Waweru
Plaintiff
Mangu Coffee Growers Co-operative Society Ltd
Defendant
Procedural Posture
Miscellaneous Application / Ruling on Preliminary Objection
Legal Issues
- 1 Whether a decree against a co-operative society can be executed against its management members.
- 2 Whether counsel for the applicant has locus standi without leave under Order 3 Rule 9A of the Civil Procedure Rules.
Ratio Decidendi
The court held that, by virtue of Section 12 of the Co-operative Societies Act, a co-operative society is a distinct legal entity from its management members. Therefore, a decree obtained against the society cannot be executed against its officials, as they are not parties to the suit and no judgment was entered against them. The court found no legal basis for holding the management members personally liable for the society's debts or obligations arising from the judgment. The preliminary objection was upheld, and the attempted execution against the officials was disallowed.
Court Disposition
preliminary objection upheld
Orders
- The preliminary objection is allowed with costs to the applicant.
- Execution against the management members is disallowed.
Full Case Text
Judgment text and source record
11 paragraphs
REPUBLIC OF KENYA IN THE HIGH OF KENYA AT NAIROBI MISC.APP.NO.664 OF 1998STEPHEN KARANJA WAWERU::::::::::::::::::::PLAINTIFF V E R S U S MANGU COFFEE GROWERS CO-OPERATIVE SOCIETY LTD:::::::::::::::::DEFENDANT RULING When this application by way of Chamber Summons of 16- 10-2001 came for hearing Mr. Wanjau Counsel for the applicant raised an objection to the effect that the decree is being executed not upon the cooperative society but upon its officials.
Mr. Nyangau counsel for the applicant / respondent opposes this application saying first that Mr. Wanjau has no locus standi as he comes without leave under O.3 Rule 9A of the Civil Procedure RuleS. He also raised other points.
But for me the single question I need to answer is whether the decree to be executed must be on the one against whom it subsists.
Under S.12 of the Cooperative Societies Act 1997 (Act 12 of 1997) it is provided thus:-
“Upon registration every society shall become a body corporate by the name under which it is registered with perpetual succession and a common seal and with power to which immovable property of every description to enter into contract to sue and to be sued and to do all things necessary for the purpose of or in accordance with its bye - law.”
With this clear provision of the law I do not see how management members who must be distinct from the coopertive society can be made to be liable in a suit against the society”.
In my judgment the decree against the society cannot be executed against the members of the management as they are not the parties to the suit and there was no judgment against them.
Preliminary point succeeds with costs.
Dated 22nd April 2002
A. I. HAYANGA JUDGE
Read to Mr. Wanjau for Applicant Read to Mr. Nyangau for Respondent