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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: May 14, 20242024-05-14T16:11:21+05:30 2024-05-14T16:11:21+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.

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

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    1. Himanshu Kulshreshtha Elite Author
      2024-05-14T16:11:50+05:30Added an answer on May 14, 2024 at 4:11 pm

      Under the Code of Civil Procedure Code, 1908, co-operative societies have specific provisions for the recovery of dues. These provisions empower co-operative societies to recover outstanding debts, dues, or arrears from their members or other parties through civil court proceedings. Here's a detailed overview of the provisions for recovery of dues of co-operative societies under the CPC:

      1. Filing of Suit: Co-operative societies can initiate civil court proceedings by filing a suit against the defaulting member or debtor for the recovery of dues. The suit is typically filed in the appropriate civil court having jurisdiction over the area where the defendant resides or where the cause of action arose.

      2. Limitation Period: The CPC specifies a limitation period within which suits for recovery of dues must be filed. The limitation period varies depending on the nature of the debt and the applicable law. Co-operative societies must ensure that suits for recovery are filed within the prescribed limitation period to avoid being time-barred.

      3. Pleading and Evidence: In the suit for recovery of dues, the co-operative society must clearly plead and prove the existence of the debt, the default by the debtor, and the amount owed. Documentary evidence such as loan agreements, promissory notes, or account statements may be submitted to support the claim for recovery.

      4. Summons and Written Statement: After the suit is filed, the civil court issues summons to the defendant, requiring them to appear before the court and file a written statement in response to the allegations made by the co-operative society. The defendant has the opportunity to contest the suit and raise any defenses or counterclaims they may have.

      5. Judgment and Decree: If the defendant fails to appear or contest the suit, the civil court may proceed to hear the case ex parte and pass a judgment in favor of the co-operative society. If the defendant contests the suit, the court will conduct a trial, hear arguments from both parties, and examine evidence before issuing a judgment. If the court finds in favor of the co-operative society, it will pass a decree for the recovery of the dues.

      6. Execution of Decree: Once a decree for recovery of dues is passed by the civil court, the co-operative society can initiate execution proceedings to enforce the decree and recover the outstanding amount from the defendant. Execution proceedings may involve attachment and sale of the defendant's property, garnishee proceedings, or other legal remedies available under the CPC.

      7. Appeal and Review: Both parties have the right to appeal against the judgment and decree passed by the civil court. The appellate court will review the evidence and legal arguments presented by the parties and may affirm, modify, or set aside the judgment of the lower court based on the merits of the case.

      These provisions under the CPC provide co-operative societies with a legal framework for the recovery of dues through civil court proceedings, ensuring that they have recourse to judicial remedies to enforce their rights and recover outstanding debts from defaulting members or debtors.

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