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 262 · 2022 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for interim measures of protection pending arbitration arising from a dispute over entitlement to share in a decretal sum awarded to a cooperative society
Decision
Interim measures granted to protect applicants' interests; decretal sum due to 1st Respondent to be held pending completion of arbitration proceedings; appointment of arbitrator ordered

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Holding

The High Court found that a legal dispute existed between applicants (legal representatives of deceased cooperative society members and one living member) and a cooperative society over entitlement to share in a decretal sum. The court held the dispute was subject to mandatory arbitration under the Cooperative Societies Act s.73, which applies to disputes between members or persons claiming through deceased members and the society. Court granted interim measures under Arbitration and Conciliation Act s.6, ordering the cooperative society's share of payment be held by advocates pending arbitration completion.

Outcome

Interim measures granted to protect applicants' interests; decretal sum due to 1st Respondent to be held pending completion of arbitration proceedings; appointment of arbitrator ordered

Facts

Abarihamwe Livestock Cooperative Society Ltd was awarded UGX 8,034,762,500 by court decree in HCCS 246/2018 as compensation for property taken over by Government. Applicants, claiming to be legal representatives of deceased founder members and one living member, asserted entitlement to share in this sum. While payments were being effected under a consent order through the society's advocates, the applicants notified the society of their interest but were ignored. The applicants attempted to initiate arbitration by proposing arbitrators and seeking appointment through the Uganda Cooperative Alliance, but received no cooperation from the society. They then applied for interim measures to prevent dissipation of the decretal sum pending arbitration.

Issues

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

Orders

  • 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 (formerly Kwesigabo, Bamwine and Walubiri Advocates).
  • The law firm shall continue remitting the 3rd Respondent's entitlement out of any received sums but is ordered to maintain a hold onto the sums due to the 1st Respondent until completion of the arbitration proceedings.
  • The order takes effect from the 22nd July 2021 when the order of the Registrar was issued.
  • Each party shall bear their own costs of this application.

Rules and key headnotes

Arbitration — Mandatory Arbitration — Cooperative Societies — Disputes Over Business
Under Section 73(1)(b) of the Cooperative Societies Act Cap 112, disputes touching the business of a registered cooperative society that arise between a member, past member, or person claiming through a deceased member, and the society or its committee, shall be referred to arbitration. This provision is mandatory, not discretionary.
Arbitration — Commencement — Non-Cooperation by Defendant
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, in accordance with Regulation 48 of the Cooperative Societies Regulations. The non-cooperation of the defendant cannot reverse that process, and the claimant is entitled to take the next available steps under the law.
Arbitration — Appointment of Arbitrator — Failure to Respond
Where the Cooperative Societies Act mandates that a defendant shall respond by accepting the proposed arbitrator or proposing an alternative, and the defendant fails to respond at all, the provisions of the Arbitration and Conciliation Act apply to the extent they are not inconsistent. Under Section 11(4) of that Act, where parties fail to agree on appointment of an arbitrator, a party may apply to the appointing authority.
Evidence — Affidavits — Multiple Applicants — Deposing to Facts Concerning Co-Applicants
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 another person's case. One needs neither authority nor to act in a representative capacity since evidence is based on personal knowledge and competence. It is not necessary for each applicant to depone to their own affidavit where the facts are common.
Interim Measures — Court Powers — Arbitration and Conciliation Act
Under Section 6(1) of the Arbitration and Conciliation Act Cap 4, 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. Where arbitration proceedings have been commenced and there is a risk to the subject matter of the dispute, the court has jurisdiction to grant interim protection.

Legislation cited (16)

Cases cited (5)

  • 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)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

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 262 (16 December 2022)
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.