Kameke Growers Coop. Society Ltd & 7 Ors v North Bukedi Coop. Union [1994] UGSC 15
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The majority held that section 72 of the Co-operative Societies Statute 1991 did not oust the original jurisdiction of the High Court. Following David Kayondo v The Co-operative Bank, the word "shall" requiring parties to refer disputes to arbitration, though apparently mandatory, was not sufficient to exclude the High Court's constitutionally unlimited jurisdiction; express words are required to make arbitration mandatory. The trial judge therefore erred in dismissing the suit on the preliminary objection. The appeal was allowed, the ruling set aside and the suit remitted to the High Court for hearing on the merits. Tsekooko JSC dissented, taking the view that section 72(1) deliberately precluded the High Court's original jurisdiction.
Outcome
Matter remitted to the High Court to determine the suit on the merits
Facts
The appellants are co-operative societies affiliated to the respondent co-operative union under the Co-operative Societies Statute 1991. By virtue of that affiliation the appellants were obliged to sell, and did sell, cotton to the respondent, for which the respondent failed to pay. The appellants instituted an action in the High Court to recover the money owed. When the matter came up for hearing, counsel for the respondent raised a preliminary objection that, under section 72 of the Co-operative Societies Statute 1991, the suit was premature because the dispute should first have been referred to arbitration. The trial judge upheld the objection and dismissed the suit, prompting this appeal.
Issues
- Whether section 72 of the Co-operative Societies Statute 1991 ousted the original jurisdiction of the High Court in favour of arbitration.
Orders
- Appeal allowed.
- Ruling of the trial judge set aside.
- Suit remitted to the High Court to continue with the hearing on the merits.
- Costs of the appeal, and the costs of the preliminary point in the High Court, awarded to the appellants.
Rules and key headnotes
Legislation cited (7)
- Co-operative Societies Statute 1991 s.72
- Co-operative Societies Statute 1991 s.25
- Co-operative Societies Statute 1991 s.74
- Co-operative Societies Act 1970 s.73
- Constitution of Uganda art.83
- Judicature Act 1967 s.3
- Civil Procedure Rules O.6 r.28
Cases cited (4)
- David Kayondo v The Co-operative Bank (U) Ltd (Civil Appeal No. 10 of 1991)
- PYX Granite Co. Ltd v Ministry of Housing and Local Government [1959] 3 All E.R. 1
- Lukenya Ranching v Kavoloto [1970] E.A. 414
- London Hospital v Jacobs [1956] 2 All E.R. 603
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.