Wakilii

Rwahoima & 4 Others v Maseru Growers Cooperative Society Limited (Miscellaneous Application 6 of 2023)

High Court · [2024] UGHC 933 · 2024 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for referral to arbitration arising from pending land suit
Decision
Application for referral to arbitration dismissed; underlying civil suit to proceed in High Court

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that it retains original jurisdiction over a dispute involving a cooperative society where the membership status of some parties is disputed. Section 142 of the Cooperative Societies Act requires arbitration only for disputes involving proven members, past members, or persons claiming through members. Where the respondent cooperative society disputed that three of five applicants were members and the applicants provided no proof of membership, the mandatory arbitration requirement did not apply and the court had jurisdiction.

Outcome

Application for referral to arbitration dismissed; underlying civil suit to proceed in High Court

Facts

Mawenu Growers Cooperative Society Ltd filed Civil Suit No. 33 of 2021 against five applicants seeking cancellation of the first applicant's registration on a certificate of title and alleging fraudulent procurement of registration by the second, third, and fourth applicants. The applicants sought to have the suit referred to arbitration under the Cooperative Societies Act, arguing that the High Court lacked original jurisdiction over disputes between a cooperative society and its members. The respondent opposed the application, contending that the second, third, and fourth applicants were not members of the cooperative society because they had not paid membership fees or owned shares. The applicants claimed membership but provided no documentary proof such as application forms, resolutions, membership lists, or payment records.

Issues

  1. Whether the High Court has original jurisdiction to determine a dispute between a cooperative society and persons claimed to be its members where membership is disputed

Orders

  • Application dismissed
  • Costs in the cause
  • Civil Suit No. 33 of 2021 fixed for mention on 31 October 2024 at 11:00 am

Rules and key headnotes

Jurisdiction — High Court — Limitation by statute — Cooperative Societies Act
The High Court's unlimited original jurisdiction under Article 139(1) of the Constitution may be limited by statute where Parliament has prescribed an alternative dispute resolution mechanism such as mandatory arbitration.
Arbitration — Mandatory arbitration — Cooperative societies — Preconditions for application
Section 142(1) of the Cooperative Societies Act requires that disputes touching the business of a registered cooperative society be referred to arbitration only where the dispute involves members, past members, persons claiming through members, or deceased members. Where membership is disputed and the party claiming to be a member provides no proof of membership, the mandatory arbitration requirement does not apply.
Arbitration — Cooperative societies — Burden of proof of membership
A party seeking to invoke the mandatory arbitration provisions of the Cooperative Societies Act bears the burden of proving membership in the cooperative society by producing evidence such as application forms, resolutions, membership lists, payment of membership fees, or other transaction records.

Legislation cited (7)

Cases cited (3)

  • Ibanda Cooperative Savings and Credit Society Ltd v Sarah Kyarikunda and Another (Miscellaneous Application No. 60 of 2021)
  • Kalisya Jailes v Bukonjo Joint Cooperative Micro Finance Ltd (Miscellaneous Application No. 87 of 2020)
  • Uganda Revenue Authority v Rabbo Enterprises (U) Ltd and Another (Civil Appeal No. 12 of 2004)

Full judgment

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

Rwahoima & 4 Others v Maseru Growers Cooperative Society Limited (Miscellaneous Application 6 of 2023) [2024] UGHC 933 (30 September 2024)
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.