Patricia Jeckonia & 46 others v Liverpool VCT Sacco Society Limited [2021] KECPT 559 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL AT NAIROBI

TRIBUNAL  CASE NO.145  OF 2020

PATRICIA  JECKONIA  AND 46 OTHERS........................................CLAIMANTS

VERSUS

LIVERPOOL  VCT SACCO  SOCIETY  LIMITED......................RESPONDENT

RULING

This  is our Ruling  on the Respondents  Notice  of Preliminary   (P.O) dated  19. 10. 2020.  The  substance  of the Preliminary  Objection  is that  this Tribunal  does not  have jurisdiction  to entertain  the claim in lieu of the Respondent’s By-laws. The Respondent  expounded  on the Preliminary  Objection  vide  its  written submissions filed on 13. 11. 2020. Vide  the said submissions,  the Respondent  contend  that Clause  75 of its  By-laws provides  thus:

“ Any dispute,  arising  out of these By-laws  or concerning  the business  of the society, which  cannot be settled  amicably by the Management Committee on the Annual General  Meeting shall be referred  to  the Tribunal.”

The Respondent  submits  that the  Claimant  has jumped  the gun  by originating  the claim before  this Tribunal  without  first presenting it  to the Annual  General  Meeting.  It submits  that it is on this basis   that  the Tribunal  does not have jurisdiction to entertain  the claim. Claimant’s  Case

The Claimants has opposed  by  Preliminary Objection  vide  the submissions filed  on  9. 11. 2020. Vide  these submissions, the  Claimant  contend that  this Tribunal  has jurisdiction to entertain  the claim inlieu of Section  76  of the  Co-operative  Societies  Act  (Cap 490) Laws of Kenya.

Issues  for determination

The Respondent’s Notice of Preliminary  Objection  has  presented  the following issues  for determination.

a. Whether  this Tribunal  has jurisdiction  to  entertain  the claim.

b. What Orders  are available  in the circumstances?

Jurisdiction

Jurisdiction  is everything. Without  it, a court/ Tribunal downs  its tools.  This  was the  holding  in the celebrated  case of  in the matter of  Motor  Vessel “ Lilians” – vs-  Catex  Oil  (Kenya ) Limited [1989] eKLR.

The question  then is whether  we  have jurisdiction  to entertain  the claim herein.  We draw our jurisdiction  from Section  76  of the Co-operative  Societies Act. We replicate  it as follows:

“ 76 (1)  A  If  any dispute  concerning  the business  of a Co-operative  Society....

a. among  members,  past members and  persons  claiming  through  members,  past members and deceased  members; or

b. between  members,  past members  or deceased members,  and the society, its committee  or any  officer of  the society; or

c. between  the society  and any other  Co-operative Society;

It shall  be referred  to the Tribunal.

(2)   A dispute  for the purpose  of   this Section  shall include-

a. a claim by  a Co-operative  Society  for any debt  or demand  due to it from a  member or  past member, or from  the  nominee or personal  representative of a  deceased member,  whether such  debt,  or demand is admitted  or not  or

b.  a claim  by a member,  past member or  the nominee or personal  representative  of a  deceased,  member for any debt  or  demand,  due from  a Co-operative  Society, whether  such debt  or demand  is admitted  or not. “

It  follows  therefore that Section  76  of the Co-operative Society Act (Cap 490) endows  the Tribunal  with  jurisdiction  to handle  virtually any dispute  arising between  a Co-operative  Society  and its members, a Co-operative  Society and  another Co-operative society  and members of Co-operative Societies. This  jurisdiction  is not and  can never  be subordinate  to  the Society’s By-laws.  Therefore, to the  extent  that Societies incorporate  clauses  relating  to Dispute  Resolution  Mechanisms in  their By-laws, as in the case with  the Respondent herein,  the same does  not  bar a party  from seeking  redress from the Tribunal  as a court of first instance. It therefore follows that the current claim is rightly before  us and that we have jurisdiction  to entertain  it.

Conclusion

The upshot  of the foregoing  is  that we  dismiss  the Respondent’s  Notice  of Preliminary  Objection  dated 19. 10. 2020 with costs  to the Claimants.

Ruling  signed,  dated and  delivered virtually  this  28th  day of January, 2021.

Hon. B. Kimemia                Chairperson                Signed      28. 1.2021

Mr. B. Akusala                     Member                       Signed      28. 1.2021

Mr. R. Mwambura                Member                       Signed      28. 1.2021

Miss  Nambiriga holding  brief for  Ambega for  the Claimants : Present

No Appearance  for  Respondent

Mention  for Pre-trial  directions  on  16. 3.2021. Notice to issue.