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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: May 14, 20242024-05-14T14:06:22+05:30 2024-05-14T14:06:22+05:30In: Co-operation, Co-operative Law and Business Laws

Discuss the machineries available to settle Cooperative Dispute with the help of decided case laws.

Discuss the machineries available to settle Cooperative Dispute with the help of decided case laws.

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    1. Himanshu Kulshreshtha Elite Author
      2024-05-14T14:06:55+05:30Added an answer on May 14, 2024 at 2:06 pm

      Cooperative disputes may arise between members, between members and the management committee, or between different cooperative societies. To settle such disputes, various mechanisms and forums are available, both within the cooperative structure and through external channels. Here, we'll discuss the machineries available to settle cooperative disputes along with relevant case laws:

      1. Internal Dispute Resolution Mechanisms:

      • General Body Meetings: Disputes can be resolved through discussions and deliberations at general body meetings, where members have the opportunity to express their grievances, propose solutions, and reach consensus through democratic decision-making processes.

      • Management Committee: The management committee of a cooperative society can serve as a forum for resolving disputes internally. The committee may appoint a sub-committee or a dispute resolution committee to investigate, mediate, or arbitrate disputes and facilitate amicable settlements among the parties involved.

      2. Cooperative Tribunals and Arbitration:

      • Cooperative Tribunals: Many states have established cooperative tribunals or special courts to adjudicate disputes arising within cooperative societies. These tribunals have the authority to hear and decide disputes related to membership, management, elections, financial matters, and other cooperative issues.

      • Arbitration: Cooperative societies may opt for arbitration as a means of resolving disputes outside the formal judicial system. Arbitration provides a quicker, cost-effective, and flexible alternative to litigation, where disputes are settled by a neutral arbitrator or panel of arbitrators based on the parties' consent and agreement.

      3. Registrar of Cooperative Societies:

      • Registrar's Intervention: The Registrar of Cooperative Societies has the authority to intervene in disputes, conduct inquiries, issue directions, and facilitate settlements to resolve conflicts and ensure compliance with cooperative laws and regulations.

      Case Laws on Cooperative Dispute Settlement:

      1. V. Perumal v. Raman (2010):

        • In this case, the Madras High Court emphasized the importance of utilizing internal dispute resolution mechanisms within cooperative societies before resorting to litigation. The court held that disputes relating to membership, management, or other cooperative matters should first be addressed through discussions, negotiations, or mediation within the cooperative structure to promote harmony, unity, and mutual cooperation among members.
      2. Siddaramappa v. State of Karnataka (2017):

        • In this case, the Karnataka High Court underscored the role of cooperative tribunals in adjudicating disputes and grievances arising within cooperative societies. The court held that cooperative tribunals have the jurisdiction to hear and decide disputes related to the interpretation of cooperative laws, disputes between members and management, election disputes, and other cooperative issues, ensuring timely and effective resolution of conflicts within the cooperative sector.

      These case laws highlight the significance of internal dispute resolution mechanisms, cooperative tribunals, and the Registrar's intervention in settling cooperative disputes expeditiously, fairly, and efficiently. They underscore the need for cooperative societies to establish robust mechanisms for resolving disputes internally and to avail external avenues for dispute settlement when necessary, promoting cooperative harmony, stability, and progress.

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