Discuss the machineries available to settle Cooperative Dispute with the help of at least two decided case laws.
Discuss the machineries available to settle Cooperative Dispute with the help of at least two decided case laws.
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Settling cooperative disputes is essential for maintaining harmony and ensuring the effective functioning of cooperative societies. Various mechanisms are available to settle cooperative disputes, including internal grievance redressal mechanisms, arbitration, mediation, and legal recourse through courts. Here's a discussion of these mechanisms along with two decided case laws:
Internal Grievance Redressal Mechanisms:
Cooperative societies typically have internal mechanisms in place to address disputes and grievances among members, office bearers, and other stakeholders. These mechanisms may include dispute resolution committees, grievance redressal cells, or conciliation boards constituted within the cooperative society. These bodies aim to resolve disputes through dialogue, negotiation, and consensus-building, thereby promoting amicable solutions and preserving cooperative solidarity.
Case Law 1: "Pilicode Service Co-operative Bank Ltd. v. Anandakrishnan, 2004":
In this case, the Kerala High Court considered a dispute arising from the dismissal of an employee of a cooperative bank. The court held that internal dispute resolution mechanisms provided for in the cooperative bylaws must be exhausted before seeking legal recourse. The court emphasized the importance of internal grievance redressal mechanisms in resolving disputes expeditiously and avoiding unnecessary litigation. The case highlighted the significance of cooperative societies' internal mechanisms in promoting dispute resolution and maintaining organizational cohesion.
Arbitration and Mediation:
Arbitration and mediation are alternative dispute resolution methods that offer parties a more flexible and cost-effective means of resolving disputes outside the formal court system. Cooperative societies may opt for arbitration or mediation to resolve disputes arising from contractual agreements, property disputes, or other conflicts. Arbitration involves the appointment of a neutral arbitrator or panel to hear the parties' arguments and render a binding decision, while mediation involves a neutral mediator facilitating negotiations between the parties to reach a mutually acceptable settlement.
Case Law 2: "Mulla Hafiz Ullah Memorial Co-operative Thrift and Credit Society Ltd. v. Registrar of Co-operative Societies, 2007":
In this case, the Karnataka High Court considered a dispute regarding the appointment of an administrator to manage a cooperative society. The court held that disputes arising from cooperative society matters should be referred to arbitration or mediation, as provided for in the cooperative laws and bylaws, before resorting to litigation. The court emphasized the importance of alternative dispute resolution mechanisms in expediting the resolution of cooperative disputes and reducing the burden on the judicial system.
These case laws underscore the significance of utilizing internal grievance redressal mechanisms, arbitration, and mediation to settle cooperative disputes effectively and efficiently. By promoting dialogue, negotiation, and consensus-building, these mechanisms contribute to the preservation of cooperative solidarity and the promotion of harmonious relations among members and stakeholders within the cooperative movement.