Sewalu Charles and 2 Others v Nabakooza Winfred [2026] UGCOMMC 249
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court held that a duly registered cooperative society has legal capacity to sue or be sued in its own name under the Cooperative Societies Act. It was therefore illegal, irregular and unjust for the Magistrate's Court to hold the chairperson of the cooperative society personally liable for refunding savings made to the registered entity. The revision succeeded and all orders against the individual applicant were set aside.
Outcome
Lower court ruling set aside; consent agreement nullified; monies paid under consent to be refunded to applicant
Facts
The respondent was a member of Masajja Small Scale Traders Co-operative Society Limited and made savings through the first applicant, Sewalu Charles, who was the chairperson of the cooperative. Payments were made to his personal mobile number but the respondent signed the cooperative's receipt books acknowledging the payments to the entity. When the respondent sought recovery of her savings, she sued Sewalu Charles personally in the Chief Magistrate's Court without joining the cooperative society as a party. The Magistrate made orders against Sewalu Charles personally to pay UGX 3,372,000. A consent agreement was subsequently signed and Sewalu Charles made payments to the respondent. He then brought this revision application challenging the lower court's decision to hold him personally liable for obligations of the registered cooperative society.
Issues
- Whether the matter is a proper case for revision of the Ruling and Orders in Small Claim No. 132 of 2024.
- Whether a duly registered cooperative society limited has the capacity to sue or be sued in its own name.
- Whether it was illegal, irregular and unjust for the lower court to hold the chairperson of a registered cooperative society personally liable for obligations of the society.
Orders
- Revision application allowed.
- The Ruling and Orders in Small Claim No. 132 of 2024 are hereby set aside.
- The consent agreement between Mr. Sewalu Charles and the respondent is hereby set aside having been a product of and occasioned by errors, irregularity and illegality.
- Monies paid to the respondent by Mr. Sewalu Charles occasioned by the aforementioned consent be paid back to him.
- Costs of this application are awarded to Mr. Sewalu Charles.
Rules and key headnotes
Legislation cited (2)
Cases cited (1)
- Oyam District Local Government v Aluku Grace (Revision Application No. 43 of 2021)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.