Section 142: Settlement of disputes

(1) Where any dispute relating to the business of a registered society arises- (a) among the members, past members and persons claiming through the members, past members and deceased members; (b) between a member, past member or person claiming through a member, past member or deceased member, and the society, its committee or any officer or past officer of the society; (c) between the society or its committee and any officer or past officer of the society; or (d) between the society and any other registered society, the dispute shall be referred to an arbitrator or arbitrators for decision. (2) A claim by a registered society for any debt or demand or demand due to it from a member, past member or the nominee, heir or legal representative of a deceased member, whether the debt or demand be admitted or not, shall be deemed to be a dispute within the meaning of subsection (1). (3) The parties to a dispute may agree upon an arbitrator or arbitrators for purposes of deciding the dispute. (4) If there is failure of agreement upon an arbitrator or arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint a third arbitrator to decide the dispute. (5) Where a party fails to appoint an arbitrator as required under subsection (4) within thirty days of receipt of a request to do so from the other party, or if the two arbitrators fail to agree on a third arbitrator within thirty days of their appointment, the appointment shall be made, upon request of either party, by the General Secretary of the Uganda Cooperative Alliance Ltd. (6) Where an appointed arbitrator refuses or neglects to act or is incapable of acting or dies or is removed, the parties shall fill the vacancy. (7) Where the parties fail to fill the vacancy under subsection (6) within seven days from the date the vacancy occurs, either party may apply to the General Secretary of Uganda Cooperative Alliance Limited to fill the vacancy which he or she shall do after giving the other party an opportunity of being heard. (8) The Arbitration and Conciliation Act shall, to the extent that it is not inconsistent with this Act, apply to an arbitration under this Act. (9) Any party aggrieved by an award made under this section may appeal to the Board within two months from the date of the award. (10) An arbitrator appointed under this section may- (a) summon witnesses and call for any accounts, books, documents or any information which the arbitrator considers relevant to the matter in question; (b) administer an oath or affirmation to any witness giving evidence before him or her; (c) refer any point of law to the High Court for its decision; and (d) amend the terms of the order of reference with the consent of the two parties to the dispute. (11) When an arbitrator has made an award, the arbitrator shall sign it and shall give notice to the parties of the making of the award and of the amount of the fees and charges payable to him or her in respect of the arbitration and award. (12) An arbitrator or arbitrators shall, at the request of any party to the arbitration or any person claiming under him or her, and upon payment of the fees and charges due in respect of the arbitration and award, and of the costs and charges of filing the award, cause the award or a signed copy of it to be filed in the court; and notice of the filing shall be given to the parties by the arbitrator. (13) Where an arbitrator or arbitrators refer a case to court on a point of law under subsection (10)(c), the court shall make its decision; and if the decision affects the amount of the award, it shall be increased or reduced, as the case may be, and the court shall execute the award as soon as possible. (14) The award of an arbitrator or arbitrators under this section shall, if no appeal is preferred to the Board under subsection (9) or if an appeal is abandoned or withdrawn, be final and shall not be called in question in any court and shall be enforced in the same manner as if the award had been a judgment of a court. (15) Notwithstanding this section, any debt arising out of embezzlement, loss of cash or misappropriation of a cooperative society's funds shall not be the subject of settlement by arbitration but shall be referred by an arbitrator to a competent court for settlement. (16) Subsections (1), (2), (3), (4) and (5) shall not apply to the Cooperative Bank Limited, for the purpose of transacting banking or credit institution business in as far as the matter relates to that business. (17) The General Secretary of the Uganda Cooperative Alliance Limited may take administrative steps to cause a society indebted to the Cooperative Bank Limited to pay without recourse to the court. (18) The Uganda Cooperative Alliance Limited shall report to the Registrar of cooperatives.