Wakilii

Katatumba (Administrator of the Estate of the Late Joseph B. Katatumba) and Others v Abarihamwe Livestock Cooperative Society Ltd and 2 Others (Miscellaneous Application No. 6 of 2021)

High Court · [2022] UGHCCD 2 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Miscellaneous application for interim measures of protection pending arbitration proceedings arising from a decree in H.C.C.S 246 of 2018
Decision
Application granted with interim measures of protection; matter referred to arbitration

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court found that a legal dispute existed between the applicants (administrators of deceased cooperative society members, a living member, and a beneficiary) and the cooperative society regarding entitlement to share in a decretal sum. The dispute was subject to mandatory arbitration under s.73 of the Cooperative Societies Act. The court granted interim measures of protection, ordering the law firm receiving payments to hold funds due to the 1st respondent until completion of arbitration proceedings.

Outcome

Application granted with interim measures of protection; matter referred to arbitration

Facts

In 1968, Abarihamwe Livestock Cooperative Society Ltd was formed. In HCCS No. 246 of 2018, the society and another cooperative (3rd respondent) obtained a decree against the Attorney General for UGX 8,034,762,500 (to the 1st respondent) and UGX 7,587,205,500 (to the 3rd respondent) as compensation for property taken over by Government. A consent order dated 12 July 2019 provided for payment through the judgment creditors' lawyers. The applicants—administrators of estates of deceased founder members, a living member, and a beneficiary—claimed entitlement to share in the 1st respondent's compensation. When the executive committee of the 1st respondent refused to cooperate, the applicants initiated arbitration proceedings under the Cooperative Societies Act and brought this application for interim protection to prevent dissipation of the decretal sum before arbitration completion. The 2nd respondent had already paid over 80% of the decretal sum.

Issues

  1. Whether a legal dispute exists between the Applicants and the 1st Respondent?
  2. Whether the dispute is subject to arbitration under the Cooperative Societies Act?
  3. Whether the Applicants are entitled to the interim reliefs claimed?

Orders

  • Application allowed.
  • The Applicants are entitled to interim measures of protection pending the completion of arbitration proceedings.
  • The General Secretary of the Uganda Cooperative Alliance Ltd is ordered to appoint a suitable arbitrator or arbitrators to handle the dispute between the Applicants and the 1st Respondent within thirty (30) days from the date of this Ruling.
  • The 2nd Respondent shall continue making payments in accordance with the decree and the consent order of 12th July 2019 through M/s KBW Advocates.
  • The law firm shall continue remitting the 3rd Respondent's entitlement out of any received sums.
  • The law firm is ordered to maintain a hold onto the sums that are due to the 1st Respondent until completion of the arbitration proceedings.
  • The order takes effect from the 22nd July 2021.
  • Each party shall bear their own costs of this application.

Rules and key headnotes

Arbitration — Cooperative Societies — Mandatory Referral to Arbitration
Under s.73(1)(b) of the Cooperative Societies Act Cap 112, any dispute touching the business of a registered society that arises between a member, past member, or person claiming through a member or deceased member, and the society, its committee or officers, shall be referred to arbitration for decision. The provision is mandatory, not discretionary.
Arbitration — Commencement of Arbitral Proceedings — Cooperative Societies
Under Regulation 48 of the Cooperative Societies Regulations SI No. 112-1, arbitral proceedings are deemed lodged when an aggrieved party writes to the defendant clearly stating the nature of the dispute and proposing who to arbitrate. The non-cooperation of the defendant cannot reverse that process.
Arbitration — Appointment of Arbitrator — Failure to Cooperate
Where a defendant in arbitral proceedings under the Cooperative Societies Act refuses to cooperate on the question of whether there should be arbitration at all, rather than merely disagreeing on who should arbitrate, the provisions of the Arbitration and Conciliation Act apply to the extent they are not inconsistent with the Cooperative Societies Act, and a party may apply to the Appointing Authority for appointment of an arbitrator under s.11(4) of the Arbitration and Conciliation Act.
Arbitration — Interim Measures of Protection
Under s.6(1) of the Arbitration and Conciliation Act, a party to an arbitration agreement may apply to the court, before or during arbitral proceedings, for an interim measure of protection, and the court may grant that measure. Such measures are distinct from applications for stay of execution.
Affidavit Evidence — Capacity of Deponent
Where more than one person has a common cause of action or issue, there is no bar for one witness, while speaking to his or her case, to also speak to the other person's case. One needs neither authority nor to act in a representative capacity, provided evidence is based on personal knowledge and competence. It is not required that each party with a common cause swear a separate affidavit.
Affidavit Evidence — Source of Information
Where facts deponed to in an affidavit are within public knowledge or are based on public documents (such as court pleadings and proceedings), the deponent need not disclose a source of information. Such facts may properly be averred to be within the deponent's knowledge.

Legislation cited (14)

Cases cited (8)

  • Kaheru Yasin and Another v Zinorumuri David (Miscellaneous Application No. 82 of 2017)
  • Taremwa Kamishari and Others v Attorney General (Miscellaneous Application No. 38 of 2012)
  • Kaingana v Dabo Boubon (1986) HCB 59
  • Charles Abola and Others v Treasury Officer of Accounts and Another (Miscellaneous Application No. 173 of 2018)
  • BankOne Ltd v Simbamanyo Estates Ltd (Miscellaneous Application No. 645 of 2020)
  • Abarihamwe Livestock Cooperative Society Ltd and Another v Attorney General (High Court Civil Suit No. 246 of 2018)
  • HCMA No. 727 of 2019
  • M.A No. 295 of 2021

Full judgment

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Katatumba (Administrator of the Estate of the Late Joseph B. Katatumba) and Others v Abarihamwe Livestock Cooperative Society Ltd and 2 Others (Miscellaneous Application No. 6 of 2021) [2022] UGHCCD 2
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.