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ELCDismissedApplication dated 14.8.2024 (suit number not stated in judgment)· [2024] KEELC 6771 (KLR)

Mbuva v Waicakehiri Farmers Society Ltd (Sued through the Chairman Robert Kimathi Marete); Rwere & another (Intended Interested Party) (Environment & Land Case 175 of 2002) [2024] KEELC 6771 (KLR)

Cooperative Tribunal... note: delivered at Meru by a Judge — court name not stated in the extract
9 October 2024
395 words in judgment
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The bottom line

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What this practically means

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Executive summary

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By an application dated 14.8.2024, Festus Muritani Rwere and Kevin Mwirigi, claiming to be the newly elected chairman and secretary of the defendant following elections held on 9.3.2020, sought to be joined as interested parties in the suit and a stay of execution of the decree. They alleged that execution was impending and feared that decree monies, if paid, would be wasted by Robert Kimathi Marete, who claimed to be a lifelong chairman and had been uncooperative, to the defendant's detriment. The court noted that on 16.3.2022 it had declined to entertain a consent letter, a notice of withdrawal and an application pending determination by the Cooperative Tribunal of who the bona fide officials of the defendant were, and that those directions had not been complied with for over two years. Relying on Samuro Gituto Farmers Coop Society Ltd vs Imagulula Tuki & 15 others (2019) eKLR, the court held that leadership wrangles under Sections 76(b) and 77 of the Cooperative Societies Act fall to the Cooperative Tribunal, and that capacity to sue or join a suit cannot be assumed where no competent authority has determined the bona fide officials. It found no basis to admit the intended interested parties at the execution stage and none to stay execution, observing that any misused monies would be recoverable. The application was dismissed with no orders as to costs. Judgment delivered on 9 October 2024 at Meru by Hon. C K Nzili, Judge.

Key legal issues

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01

Joinder of interested parties whose official capacity is undetermined

Holding

Joinder refused because the applicants' bona fide offices had not been determined by a competent authority.

Reasoning

The court held capacity cannot be assumed. Since no authority under the Cooperative Societies Act had determined who the bona fide officials of the defendant were, and the Cooperative Tribunal is the proper forum for leadership disputes, the intended interested parties could not be joined at the execution stage more than two years after the court's earlier directions went unheeded.

p. 2
02

Stay of execution of the decree

Holding

Stay refused as the applicants' apprehension that decree monies would be wasted was speculative.

Reasoning

The court found the applicants' fear that Robert Kimathi Marete would misuse paid-out monies to be far-fetched, since any monies misused would remain recoverable. Absent a genuine risk, no basis existed to stay execution, especially where the applicants had failed to comply with earlier court directions for over two years.

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Legal principles established

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  • Capacity to sue or join a suit cannot be assumed and must be established by determination of bona fide officials by a competent authority under the Cooperative Societies Act.
  • The proper forum to resolve leadership wrangles in cooperative societies is the Cooperative Tribunal under Sections 76(b) and 77 of the Cooperative Societies Act.

Court orders

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  1. 1.Application dismissed
  2. 2.No orders as to costs

Authorities

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Legislation

  • Cooperative Societies ActSection 76(b)
  • Cooperative Societies ActSection 77

Cases cited (1)

  • Samuro Gituto Farmers Coop Society Ltd vs Imagulula Tuki & 15 others
    (2019) eKLR
Jurisdiction invoked
Inherent powers of the court at the execution stage; Cooperatives Societies Act, Sections 76(b) and 77 (forum for leadership disputes)

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, "Mbuva v Waicakehiri Farmers Society Ltd (Sued through the Chairman Robert Kimathi Marete); Rwere & another (Intended Interested Party) (Environment & Land Case 175 of 2002) [2024] KEELC 6771 (KLR)", Case Analysis (2024). Application dated 14.8.2024 (suit number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6771/eng@2024-10-09

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