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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: May 14, 20242024-05-14T14:12:45+05:30 2024-05-14T14:12:45+05:30In: Co-operation, Co-operative Law and Business Laws

Discuss in detail the provisions for Recovery of Dues of Co-operative Societies under the Code of Civil Procedure Code, 1908.

Examine in depth the Code of Civil Procedure Code, 1908’s rules for Cooperative Societies’ Recovery of Dues.

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    1. Himanshu Kulshreshtha Elite Author
      2024-05-14T14:13:05+05:30Added an answer on May 14, 2024 at 2:13 pm

      Under the Code of Civil Procedure Code, 1908 (CPC), cooperative societies are provided with legal mechanisms for the recovery of dues through civil suits. These provisions empower cooperative societies to recover outstanding dues from defaulting members or other parties by initiating legal proceedings in civil courts. Here's a detailed discussion of the provisions for the recovery of dues of cooperative societies under the CPC:

      1. Civil Suit for Recovery:

      • Cooperative societies can file a civil suit in a competent civil court to recover dues, including unpaid loans, interest, penalties, and other charges, from defaulting members or other parties. The suit must be filed within the jurisdiction where the defendant resides or where the cause of action arose.

      2. Jurisdiction of Civil Courts:

      • Civil courts have jurisdiction to entertain suits for the recovery of dues of cooperative societies, subject to certain monetary limits prescribed by law. The jurisdiction of civil courts is determined based on the amount of the claim and the territorial jurisdiction where the cause of action arose.

      3. Summary Procedure:

      • Cooperative societies may avail themselves of the summary procedure provided under the CPC for the expeditious disposal of recovery suits. Summary procedures allow for the swift adjudication of cases without prolonged hearings or procedural delays, ensuring timely resolution of disputes and recovery of dues.

      4. Attachment and Sale of Property:

      • In cases where the defendant fails to satisfy the dues as per the court's judgment, cooperative societies can seek the attachment and sale of the defendant's property to recover the outstanding amount. The court may issue orders for the attachment of movable or immovable property, including land, buildings, vehicles, bank accounts, or other assets belonging to the defendant.

      5. Execution Proceedings:

      • Once the court issues a decree in favor of the cooperative society, the decree-holder (the cooperative society) can initiate execution proceedings to enforce the judgment and recover the dues from the judgment debtor (the defendant). Execution proceedings may involve the seizure and sale of the judgment debtor's property or garnishment of their wages or other income sources to satisfy the decree amount.

      6. Interest and Costs:

      • In addition to the principal amount, cooperative societies may also claim interest on overdue dues and costs incurred in filing and prosecuting the recovery suit. The court may award reasonable interest rates and costs to the cooperative society as part of the judgment or decree.

      7. Limitation Period:

      • Cooperative societies must initiate recovery proceedings within the prescribed limitation period, which is typically three years from the date when the cause of action arose. Failure to file the suit within the limitation period may result in the dismissal of the claim as time-barred.

      In summary, the CPC provides cooperative societies with legal remedies and procedures for the recovery of dues through civil suits. These provisions enable cooperative societies to enforce their rights, recover outstanding amounts, and maintain financial stability and viability. Cooperative societies should familiarize themselves with the relevant provisions of the CPC and seek legal counsel to effectively pursue recovery actions and protect their interests.

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