Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELCPartially Allowed· [2018] KEELC 2506 (KLR)

John Kamangu & 2 others v Annah Njeri Kamau & 2 others [2018] KEELC 2506 (KLR)

Environment and Land Court
21 June 2018
1,882 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

#

Kenya's Environment and Land Court struck out a suit because a co-operative society in liquidation can only sue through its Liquidator, not former members.

What this practically means

#

Executive summary

#
This is a ruling by the Environment and Land Court at Eldoret (M.A Odeny J) on a preliminary objection dated 15th January 2018, in which the 1st defendant contended that the plaintiffs lacked locus standi to sue on behalf of Yamumbi Farmers' Cooperative Society, a society in liquidation since Legal Notice No. 5544 of 2/9/94, with a Liquidator (Ishmael Mengich) appointed and his term extended by Gazette Notice No. 89 of 6/1/17. Counsel for the defendant argued that under sections 65 and 66(1)(b) of the Cooperative Societies Act Cap 490, the society's property vested in the Liquidator, who alone could sue or defend on its behalf; it was also contended the suit belonged in the Cooperative Tribunal and that the plaintiffs were not 'persons' under Article 260. Plaintiffs' counsel relied on an amended plaint pleading suit in their own capacity with the Liquidator's authority, argued the objection raised facts, and cited Mumo Matemu and Article 22 on public-interest litigation. The court, guided by Mukisa Biscuits, held that the liquidation was undisputed, that the society had lost its legal personality to sue, and that the amendment could not cure this; no letter of authority from the Liquidator was annexed. The court found it had jurisdiction over the land dispute (not the Tribunal) but upheld the preliminary objection, struck out the suit and awarded costs to the 1st defendant. The Keekonyokie case was distinguished on its facts though its locus ratio was applied.

Key legal issues

#
01

Locus standi of plaintiffs suing on behalf of a society in liquidation

Holding

Plaintiffs lack locus standi; the Liquidator alone has mandate to sue on behalf of the society

Reasoning

The society was deregistered by Legal Notice No. 5544 of 2/9/94 and a Liquidator appointed, whose term was extended by Gazette Notice No. 89 of 6/1/17. Under sections 65 and 66(1)(b) of the Cooperative Societies Act, the society's property vests in the Liquidator who alone may institute or defend suits. The amendment pleading personal capacity plus the Liquidator's authority did not change the plaintiffs' status, and no letter of authority was annexed.

p. 3
02

Whether the dispute should have been filed at the Cooperative Tribunal

Holding

No - the court had jurisdiction as this was a land matter, not one concerning management of the society

Reasoning

The court held the dispute concerned alleged entry onto land earmarked for public use, not management or operations of the co-operative society. The Tribunal's jurisdiction under section 69 applies to persons aggrieved by decisions of the Commissioner, the Liquidator or the Tribunal, none of which applied here. The court therefore found it had jurisdiction, but dismissed the suit on locus standi grounds.

p. 3
03

Whether the preliminary objection was a pure point of law

Holding

The court applied the Mukisa Biscuits test and upheld the objection

Reasoning

The court adopted the classic Mukisa Biscuits formulation that a preliminary objection must be a point of law arising from pleadings and cannot be raised where facts must be ascertained. The plaintiffs argued the objection raised factual issues, but the court found the fact of liquidation was admitted by both parties, so the objection turned on a point of law concerning legal capacity.

p. 2

Legal principles established

#
  • A co-operative society in liquidation loses its legal personality to sue; only the liquidator may institute or defend suits on its behalf under sections 65 and 66 of the Cooperative Societies Act
  • Amendment of a plaint cannot cure lack of locus standi where the society on whose behalf the suit is brought is in liquidation
  • An ELC has jurisdiction over land disputes involving a co-operative society in liquidation where the dispute does not concern management or operations of the society

Court orders

#
  1. 1.The preliminary objection dated 15th January 2018 is upheld
  2. 2.The plaintiff's suit is struck out
  3. 3.Costs of the suit awarded to the 1st defendant

Authorities

#

Legislation

  • Cooperative Societies Act Cap 490section 65
  • Cooperative Societies Act Cap 490section 66(1)(b)
  • Cooperative Societies Act Cap 490section 69(1) and (2)
  • Constitution of Kenya 2010Article 22
  • Constitution of Kenya 2010Article 260
  • Legal Notice No. 5544 dated 2/9/94liquidation of Yamumbi Cooperative Society
  • Gazette Notice No. 89 of 6/1/17extension of liquidation and appointment of Liquidator

Cases cited (3)

  • Keekonyokie Farmers Cooperative Society Ltd v. Hon. Engineer Peter Mositet & 18 others
    Nairobi ELC Suit No. 936 of 2014
  • Mukisa Biscuits Manufacturing Ltd vs West End Distributors Ltd
    Civil Appeal no. 9 of 1969
  • Mumo Matemu Vs Trusted Society of Human Rights Alliance & 5 others
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over land disputes (court found: 'I find that the court has jurisdiction to determine the dispute as presented by the plaintiff')

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "John Kamangu & 2 others v Annah Njeri Kamau & 2 others [2018] KEELC 2506 (KLR)", Case Analysis (2018). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/2506/eng@2018-06-21

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