Kayondo v The Co-operative Bank Limited (Civil Suit 890 of 1989)
Observed later treatment
No later-treatment classification is recorded for this judgment.
Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.
AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.
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
- 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.
- 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
Legislation cited (3)
- Cooperative Societies Act 30/70 s.73
- Cooperative Societies Act 30/70 s.75(1)
- Cooperative Societies Act Cap. 95 s.68
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
The original judgment as reported. Read the original PDF before relying on any passage.