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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: May 14, 20242024-05-14T16:06:00+05:30 2024-05-14T16:06:00+05:30In: Co-operation, Co-operative Law and Business Laws

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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    1. Himanshu Kulshreshtha Elite Author
      2024-05-14T16:06:33+05:30Added an answer on May 14, 2024 at 4:06 pm

      In India, various mechanisms are available to settle disputes arising in cooperative societies, aimed at providing timely and effective resolution while upholding the principles of justice, fairness, and transparency. Some of the key machineries available for dispute resolution in cooperative societies include:

      1. Internal Grievance Redressal Mechanism:
        Cooperative societies typically have internal mechanisms for resolving disputes at the grassroots level. These mechanisms may include grievance redressal committees, arbitration panels, or conciliation boards comprised of members or officials of the cooperative society. The purpose of these mechanisms is to facilitate the amicable resolution of disputes through mediation, negotiation, or arbitration, thereby fostering harmony and cohesion within the society.

      2. Registrar of Cooperative Societies:
        The Registrar of Cooperative Societies, appointed by the state government, serves as the regulatory authority overseeing the functioning of cooperative societies. The Registrar has powers to adjudicate disputes, issue directions, and enforce compliance with the provisions of the Cooperative Societies Act and relevant regulations. Parties aggrieved by decisions of the cooperative society or its management committee may appeal to the Registrar for redressal of their grievances.

      3. Cooperative Tribunal or Cooperative Court:
        In some states, Cooperative Tribunals or Cooperative Courts have been established to adjudicate disputes related to cooperative societies. These specialized tribunals or courts are vested with exclusive jurisdiction to hear and determine disputes arising under the Cooperative Societies Act and other relevant laws. They provide a forum for parties to present their cases, adduce evidence, and seek judicial remedies for resolution of their disputes.

      Now, let's discuss two decided case laws related to cooperative dispute resolution mechanisms:

      1. B. Sundarambal vs. Lourdammal (AIR 1987 Mad 41):

        In this case, the Madras High Court addressed the issue of dispute resolution within a cooperative society. The dispute arose between two members of a cooperative society over the allotment of a plot of land. The aggrieved member approached the cooperative society seeking redressal of her grievance, but the society failed to resolve the dispute amicably. Subsequently, the aggrieved member filed a petition before the Registrar of Cooperative Societies seeking intervention. The Registrar conducted an inquiry into the matter, heard both parties, and passed an order directing the cooperative society to reconsider its decision on the allotment. The aggrieved member challenged the Registrar's order before the Madras High Court, alleging bias and procedural irregularities. However, the High Court upheld the Registrar's order, emphasizing the importance of providing aggrieved parties with an opportunity for redressal of their grievances through internal mechanisms and administrative adjudication.

      2. Hariom Cooperative Housing Society Ltd. vs. Vikas Mehta & Ors. (2012 SCC Online Bom 320):

        In this case, the Bombay High Court dealt with a dispute arising in a cooperative housing society. The dispute revolved around the election of the management committee of the society, which was marred by allegations of irregularities and malpractices. The aggrieved parties approached the Registrar of Cooperative Societies, seeking intervention to annul the election results and order a fresh election. The Registrar conducted an inquiry, examined the evidence, and found merit in the allegations of irregularities. Consequently, the Registrar passed an order setting aside the election results and directing the conduct of a fresh election under his supervision. The aggrieved parties challenged the Registrar's order before the Bombay High Court, but the Court upheld the order, affirming the Registrar's jurisdiction to adjudicate disputes and ensure compliance with the Cooperative Societies Act.

      These case laws illustrate the importance of robust dispute resolution mechanisms in cooperative societies and the role of administrative authorities in adjudicating disputes and promoting accountability and transparency in cooperative governance.

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