Nyariki Farmers Co-Operative Society Limited v Miathathia Coffee FarmersCo-Operative Society Limited [2021] KECPT 248 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL

AT NAIROBI

TRIBUNAL CASE NO. 220 OF 2019

NYARIKI FARMERS CO-OPERATIVE SOCIETY LIMITED................CLAIMANT

-VERSUS-

MIATHATHIA COFFEE FARMERS

CO-OPERATIVE SOCIETY LIMITED.................................................RESPONDENT

RULING

The Respondent filed a Notice of Motion Application dated 20th January 2021, essentially challenging the jurisdiction of this Tribunal over the subject matter, contending that the matter be transferred to the High Court, Environment and Lands Court Division. The parties proceeded by way of written Submissions, which we have carefully considered, and on reliance thereupon we make this Ruling.

ISSUES FOR DETERMINATION

Having carefully considered the documents and arguments by both parties in their Written Submissions, we have framed the following issue for determination:

(a) Whether Tribunal has jurisdiction to handle the present Claim;

ANALYSIS OF ISSUES

We now proceed to dissect the issues as follows:

a.Whether Tribunal has jurisdiction to handle the present Claim

Section 76(1)(c)of theCo-operative Societies Act Cap 490 of the Laws of Kenya provides that if any dispute concerning the business of a Co-operative Society arises between the Society and any other So-operative Society, it shall be referred to the Co-operatives Tribunal. This is a wide jurisdiction that does not isolate the subject of the dispute.

The present Claim is between two Co-operative Societies, and the Tribunal is clothed with jurisdiction to handle the dispute.

In the case of Kinogerana Farmers’ Co-Operative Society Ltd -vs- Murata Farmers SACCO Limited [2006] eKLR it was held that the High Court did not have jurisdiction to entertain the suit relating to a dispute between the two Co-operative Societies.

The business of the Society is not just about the internal affairs, but includes protection of the economic interests of its members, including their investments, as was held in Gatanga Coffee Growers -vs- Gitau [1970] EA 361. It is thus unsustainable for this Tribunal to renege its jurisdiction in a case where the economic interests and investments of members through their respective Co-operative Societies is in contestation.

In the interest of justice, we find that the Orders sought should be denied and the Application dated 20th January 2021 be disallowed, and the matter to proceed to hearing.

ORDERS

We therefore Order as follows:

(a)The Claimant’s Application dated 20th January 2021 be and is hereby dismissed with costs in the cause;

(b)The matter to proceed to full trial: parties to file and exchange their witness statements and documents within 30 days hereof; and

(c)Hearing on 19. 5.2022.

Ruling signed, dated and delivered virtually at Nairobi this 2ndday of September,2021.

Hon. B. Kimemia   Chairperson   Signed  2. 9.2021

Hon. J. Mwatsama  Deputy Chairperson Signed  2. 9.2021

Mr. Gitonga Kamiti  Member   Signed  2. 9.2021

Mr. B. Akusala   Member   Signed  2. 9.2021

Tribunal Clerk   R. Leweri

Muriuki Advocate  for Claimant/Respondent

Nabutete Advocate for  Applicant Present

Hon. B. Kimemia   Chairperson   Signed  2. 9.2021