Arbitration

To facilitate its operations, the co-operative society has to undertake multiple loan and business activities besides holding properties, entering into contracts/ trade relations etc. with members, persons, companies/firms etc. Such business dealings with members( nominal members), businessmen, merchants, marketing societies sometimes lead to disputes on account of violation of terms and conditions, non-repayment of loans/defaults by any of the parties. To avoid prolonged litigations in the Civil Courts, such disputes are exclusively referred to the Registrar under section 72/73 of the ibid Act for settlement/arbitration which is an official/judicial process of trying to settle a dis-agreement between two people or groups by considering all the facts, documentary evidence and statements of parties/ sureties/ witnesses etc. The disputes/references consisted of the following :

1.  If it touched constitution.
2.  If it touched management.
3.  If it touched business of a society.

After reference/presentation of disputes under section 72 to the Registrar, he may decide the dispute himself, or transfer it for disposal to any person who has been invested by the State Government with powers in that behalf, who, after giving the parties a reasonable opportunity of being heard, gives the decision or award as the case may be. Rule 89 of the H.P. Cooperative Societies Rules, 1971, provides for the persons qualified to be appointed as arbitrators under clause (c) of sub-section (i) of section 73 who shall be competent to decide the disputes with regard to the kind of societies mentioned against each :

The Registrar may appoint Arbitrators out of penal of arbitrators maintained separately by the Government for every district out of retired officials of Co-operative, Revenue, Audit and Judicial Departments as well.

The decision or award, as the case may be, is reduced to writing, announced to the parties and filed in the office of the Registrar within a period of 4 months. However extension to dispose the cases in exceptional circumstances may be accorded to the Arbitrators by the Registrar, if necessary.

No court, Civil or Revenue, has jurisdiction to entertain any suit or other proceedings in respect of any dispute touching constitution, management or the business of the co-operative societies as provided for under sections 72 and 92. If the Registrar is satisfied on affidavit, enquiry or otherwise that any person with intent to delay or obstruct the enforcement of any order that may be made against him under Section 69, is about to dispose or alienate his property or its part thereof, he may, unless adequate security is furnished direct the conditional attachment of the said property or such part thereof as he thinks necessary and such attachment shall have the same effect as if made by a competent civil court as provided for under section 74.