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Court of AppealDismissedCivil Appeal No. 174 of 1992· [1994] KECA 68 (KLR)

David Kamau Njoroge v Edgewoog Farmers Co-operative Society & 2 others [1994] KECA 68 (KLR)

Court of Appeal
25 February 1994
500 words in judgment
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The bottom line

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Disputes between co-operative society members about society land must go through the Co-operative Societies Act process first, not straight to the High Court.

What this practically means

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Executive summary

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The Court of Appeal at Nakuru (Gachuhi, Omolo and Tunoi, JJ.A) dismissed the appellant's appeal against the High Court's decision striking out his plaint. The appellant, a member of the 1st respondent co-operative society, alleged he had agreed to buy a piece of land from the society which was instead sold to the 3rd respondent, also a member; the 2nd respondent was the society's chairman. The respondents successfully applied to strike out the suit on the basis that the appellant's remedy lay under section 80(1) of the Co-operative Societies Act (Cap 490), and the High Court (Barbara Tanui, J) agreed. On appeal, the appellant argued that the High Court's unlimited original civil jurisdiction under the Constitution could not be taken away by section 80 of Cap 490. The Court of Appeal rejected this argument. It held that the dispute was clearly one among members of the society, that selling or allocating land to members was part of the farming society's business, and that any dispute concerning the business of a registered society must be dealt with in the manner set out in the Act, with the High Court's jurisdiction exercised on appeal under section 81(2). The court found nothing unconstitutional in Parliament legislating on the manner in which the High Court's jurisdiction is to be exercised. The appeal was dismissed with costs on 25 February 1994. The judgment establishes that statutory dispute-resolution mechanisms for co-operative societies constitutionally channel and structure, rather than oust, the High Court's jurisdiction.

Key legal issues

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01

Whether the co-operative dispute fell within section 80(1) of the Co-operative Societies Act

Holding

Yes - the dispute between members over the sale/allocation of society land concerned the business of the registered society and had to be pursued under the Act, not in the High Court.

Reasoning

The appellant was a member of the 1st respondent society and alleged an agreement over land the society later sold to another member. The court held that a farming society's selling or allocating land to its members was clearly part of its business, so the dispute fell within section 80(1), and the High Court was right to strike out the plaint. The appellant should have pursued his rights under the Act.

p. 1
02

Whether section 80 of Cap 490 unconstitutionally ousted the High Court's constitutional jurisdiction

Holding

No - Parliament may legislate on how the High Court's jurisdiction is exercised, and requiring such disputes to proceed by way of appeal under section 81(2) is constitutional.

Reasoning

Counsel for the appellant argued that the High Court's unlimited original civil jurisdiction under the Constitution could not be curtailed by statute. The court rejected this, holding the Constitution does not prevent Parliament from legislating on the manner in which the High Court's jurisdiction is exercised; under the Act that jurisdiction is exercised on appeal as provided in section 81(2), which is not unconstitutional.

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Legal principles established

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  • Disputes among members of a registered co-operative society concerning the business of the society, including the sale or allocation of land to its members, must be resolved under section 80(1) of the Co-operative Societies Act and not by direct suit in the High Court.
  • Parliament may lawfully legislate on the manner in which the jurisdiction of the High Court is to be exercised, including channeling such jurisdiction through statutory appeal mechanisms, without unconstitutionally ousting the High Court's jurisdiction.

Court orders

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  1. 1.Appeal dismissed with costs
On appeal from
High Court of Kenya at Nakuru
H.C.C.C. No. 61 of 1992
Jurisdiction invoked
Section 81 of the Co-operative Societies Act (Cap 490) - first appeal from the High Court

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "David Kamau Njoroge v Edgewoog Farmers Co-operative Society & 2 others [1994] KECA 68 (KLR)", Case Analysis (1994). Civil Appeal No. 174 of 1992. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1994/68/eng@1994-02-25

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.