Sewalu Charles and 2 Others v Nabakooza Winfred (Civil Application 5 of 2025)

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.

Holding

The High Court held that a duly registered cooperative society has legal capacity to sue and be sued in its own name under the Cooperative Societies Act s.6(5). It was illegal, irregular and unjust for the lower court to hold the chairman of the cooperative personally liable for monies owed by the registered entity. The Ruling and Orders in Small Claim No. 132 of 2024 were set aside as a nullity.

Outcome

Lower court orders set aside; consent agreement nullified; monies paid to respondent to be refunded to applicant

Facts

The respondent was a member of Masajja Small Scale Traders Co-operative Society Limited and made savings to the society. She made payments to Sewalu Charles, the chairman of the cooperative, through his personal mobile phone lines. The respondent signed the cooperative's receipt books acknowledging the payments. When the respondent sought recovery of her savings, she sued Sewalu Charles personally in Small Claim No. 132 of 2024 before the Chief Magistrate's Court of Makindye. The cooperative society itself was not joined as a party. The Chief Magistrate ordered Sewalu Charles to pay UGX 3,372,000 personally. A consent agreement was signed and Sewalu Charles made payments to the respondent. Sewalu Charles then brought this revision application arguing that the cooperative society, being a duly registered entity with legal capacity, was the proper party and he should not have been held personally liable.

Issues

1. Whether this is a proper case for revision of the Ruling and Orders in Small Claim No. 132 of 2024.
2. Whether Mr. Sewalu Charles was personally liable for debts owed by Masajja Small Scale Traders Co-operative Society Limited, a duly registered entity.
3. Whether the Chief Magistrate's Court acted illegally or with material irregularity in holding an individual officer personally liable for obligations of a registered cooperative society.

Orders

• 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)

• Civil Procedure Act Cap 282 s.83
• Cooperative Societies Act s.6(5)

Cases cited (1)

• Oyam District Local Government v Aluku Grace (Revision Application No. 43 of 2021)

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