Wakilii

Kayondo v The Co-operative Bank Limited (Civil Suit 890 of 1989)

High Court · [1990] UGHC 44 · 1990 Suit Dismissed — No Jurisdiction AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit seeking declaration that employment contract is subsisting and damages for alleged breach of contract
Decision
Suit dismissed for lack of jurisdiction; matter should have been referred to the Registrar of Cooperative Societies

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that it lacked jurisdiction to hear the matter. Section 73 of the Cooperative Societies Act 30/70 mandates that disputes touching the business of a registered cooperative society, including disputes over termination of employment of senior officers, must be referred to the Registrar of Cooperative Societies for decision. The plaintiff's claim for wrongful dismissal from his position as Secretary of the defendant Bank fell within clause 37(i) of the Bank's by-laws and constituted a dispute touching the business of the society. The suit was dismissed with costs.

Outcome

Suit dismissed for lack of jurisdiction; matter should have been referred to the Registrar of Cooperative Societies

Facts

The plaintiff was employed by the defendant Bank from 11 March 1975, culminating in his appointment as Secretary by letter dated 1 February 1988, back-dated to 1 September 1987. His employment was governed by the Bank's Standing Orders, Rules and Regulations. By letter dated 16 October 1989, the Chairman of the Board of Directors terminated the plaintiff's services as part of a reorganization of the Bank's management, offering cash payment in lieu of notice and terminal benefits. The plaintiff challenged the termination through his lawyer's letter dated 20 October 1989, calling it illegal and a breach of contract. The plaintiff brought suit seeking a declaration that his contract was still subsisting, payment of all dues withheld since 16 October 1989, damages, interest, and costs.

Issues

  1. Whether the High Court has jurisdiction to hear this matter or whether it must first be referred to the Registrar of Cooperative Societies under section 73 of the Cooperative Societies Act 30/70.
  2. Whether the dispute between the plaintiff and the defendant constitutes a dispute touching the business of a registered society within the meaning of section 73 of the Cooperative Societies Act 30/70.

Orders

  • The case is dismissed with costs to the defendant.

Rules and key headnotes

Statutory Interpretation — Ouster of Jurisdiction — Mandatory Provisions — Use of 'Shall'
Where a statute uses the word 'shall' in conferring jurisdiction on a particular forum, the legislative intent is that the matter must be taken to that forum and the jurisdiction of the court is clearly and unequivocally ousted.
Administrative Law — Cooperative Societies — Dispute Resolution — Disputes Touching the Business of a Society
Under section 73 of the Cooperative Societies Act 30/70, any dispute touching the business of a registered cooperative society must be referred to the Registrar of Cooperative Societies for decision, and the court has no jurisdiction over such matters except on appeal under section 75(1) of the Act.
Employment & Labour — Termination of Employment — Cooperative Society Officers — Jurisdiction
A dispute between a past officer of a registered cooperative society and the society regarding the termination of employment of a General Manager, Deputy General Manager, or Secretary is a dispute touching the business of the society within the meaning of section 73 of the Cooperative Societies Act 30/70 and falls within the exclusive jurisdiction of the Registrar of Cooperative Societies.

Legislation cited (3)

Cases cited (4)

  • Ntunguerishe and 4 Others v Kakuhikire (High Court Civil Suit No. 604 of 1980)
  • Scott v. Avery & others (1860) ALL ER Reprint I
  • Wakiro and Anor v. Committee of Bugisu Cooperative Union LTD
  • Gatangu Coffee Growers Coop Society Ltd v. Gitau

Full judgment

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

Kayondo v The Co-operative Bank Limited (Civil Suit 890 of 1989) [1990] UGHC 44 (27 March 1990)
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.