Chapter IX PROCEDURE FOR DECIDING DISPUTES

1. (1) Notwithstanding anything contained in any other law for the time being in force in the Union territory, any dispute touching the constitution, management, business, election of the Committee or its officers or conduct of general meetings of a society shall be referred by any of the parties to the dispute, or by a federal society to which the society is affiliated, or by a creditor of the society, to the Registrar, if the parties thereto are amongst the following, namely:—
   • (a) a society, its Committee, any past Committee, any past or present officer, any past or present agent, any past or present servant or nominee, legal heir or legal representative of any deceased officer, deceased agent or deceased servant of the society, or the Liquidator of the society;
   • (b) a member, past member or a person claiming through a member, past member or a deceased member of a society, or a society which is a member of the society;
   • (c) a person, other than a member of the society, who has been granted a loan by the society, or with whom the society has or had transactions under the provisions of section 50, and any person claiming through such a person;
   • (d) a surety of a member, past member or a deceased member, or a person other than a member who has been granted a loan by the society under section 50, whether such a surety is or is not a member of the society;
   • (e) any other society, official assignee or the Liquidator of such a society.
2. (2) When any question arises a matter referred to for decision is a dispute or not, under sub-section (1), the question shall be considered by the Registrar, whose decision shall be final. Explanation.—For the purposes of this sub-section, it is hereby clarified that—
   • (a) the expression “dispute” shall include—
     • (i) a claim by a society for any debt or demand due to it from a member, past member or the nominee, legal heir or legal representative of a deceased member, whether such a debt or demand be admitted or not;
     • (ii) a claim by a surety for any sum or demand due to him from the principal borrower in respect of a loan by a society and recovered from the surety owing to the default of the principal borrower, whether such a sum or demand be admitted or not;
     • (iii) a claim by a society for any loss caused to it by a member, past member, or deceased member, by any officer, past officer or deceased officer, by any agent, past agent or deceased agent, or by any servant, past servant or deceased servant, or by its Committee, past or present whether such loss be admitted or not;
     • (iv) a refusal or failure by a member, a past member or a nominee, legal heir or legal representative of a deceased member, to deliver possession to a society of land or any other asset resumed by it for breach of conditions of the assignment;
   • (b) the expression “agent” includes, in the case of a housing society, an architect, engineer or contractor engaged by the society.

1. (1) Notwithstanding anything contained in the Limitation Act, 1963, but subject to the specific provisions made in this Regulation, the period of limitation in the case of a dispute referred to the Registrar under section 102 shall—
   • (a) when the dispute relates to the recovery of any sum, including interest thereon due to a society by a member thereof, be computed from the date on which such member dies or ceases to be a member of the society;
   • (b) when the dispute is between a society or its Committee, and any past Committee, any past or present officer, or past or present agent, or past or present servant or the nominee, heir or legal representative of a deceased officer, deceased agent or deceased servant of the society, or a member, or past member, or the nominee, heir or legal representative of a deceased member, and when the dispute relates to any act or omission on the part of either party to the dispute, be six years from the date on which the act or omission with reference to which the dispute arose, took place;
   • (c) when the dispute is in respect of any matter relating to the constitution, management or business of a society which has been ordered to be wound up under section 114, or in respect of which a nominated Committee or special officer has been appointed under section 87, be six years from the date of the order issued under section 114, or section 87, as the case may be;
   • (d) when the dispute is in respect of an election of any office bearer of a society, be two months from the date of the declaration of the result of such election.
2. (2) The period of limitation in the case of any dispute other than those mentioned in sub-section (1) which are required to be referred to the Registrar under section 106 shall be regulated by the provisions of the Limitation Act, 1963, as if the dispute were a suit, and the Registrar a civil court.
3. (3) Notwithstanding anything contained in sub-sections (1) and (2), the Registrar may admit dispute after the expiry of the period of limitation, if the applicant satisfies him that he had sufficient cause for not referring the dispute within such period, and the dispute so admitted shall not be barred on the ground that the period of limitation had expired.

1. (1) If the Registrar is satisfied that any matter, referred to him is a dispute, within the meaning of section 102, the Registrar shall, subject to the rules to be made in this behalf, decide the dispute himself, or refer it for disposal to a nominee, or a board of nominees, appointed by the Registrar: Provided that no person who is connected with a dispute or with the society at any stage or has previously inspected the society or audited its accounts shall be appointed as a nominee or as a member of the board of nominees to settle the dispute.
2. (2) Where any dispute is referred under sub-section (1) for decision to the Registrar’s nominee or board of nominees, the Registrar may at any time, for reasons to be recorded in writing, withdraw such dispute from his nominee, or board of nominees, and may decide the dispute himself, or refer it again for decision to any other nominee, or board of nominees, appointed by him.
3. (3) Notwithstanding anything contained in section 102, the Registrar may, if he thinks fit, suspend proceedings in regard to any dispute, if the question at issue between a society and a claimant or between different claimants, is one involving complicated question of law or fact, until the question has been tried by a regular suit instituted by one of the parties or by the society, and, if any such suit is not instituted within a period of two months from the Registrar’s order suspending proceedings, the Registrar shall take action as is provided in sub-section (1).

1. (1) The Registrar or his nominee or board of nominees, hearing a dispute under section 102 shall hear the dispute in the manner prescribed and shall have power to summon and enforce attendance of witnesses including the parties interested or any of them and to compel them to give evidence, and to compel the production of documents by the same means and as far as possible in the same manner as provided in the case of a civil suit under the Code of Civil Procedure, 1908.
2. (2) Except where a dispute involves complicated question of law or fact, no legal practitioner in his capacity as a legal practitioner or as a person holding a power of attorney shall be permitted to appear on behalf of any party at the hearing of a dispute. Explanation.—For the purposes of this sub-section, the expressions—
   • (i) “attorney” means the attorney as referred to in the Advocates Act, 1961.
   • (ii) “legal practitioner” shall have the same meaning as assigned to it in clause (i) of sub-section (1) of section 2 of the Advocates Act, 1961;
3. (3) If the Registrar or his nominee or board of nominees is satisfied that a person, whether he be a member of the society or not, has acquired any interest in the property of a person, who is a party to a dispute, he may order the person who has acquired the interest in the property to join as a party to the dispute and any decision that may be passed on the reference by the Registrar or his nominee or board of nominees, shall be binding on the party so joined, in the same manner, as if, he were an original party to the dispute.
4. (4) Where a dispute has been instituted in the name of the wrong person or where all the defendants have not been included, the Registrar or his nominee or board of nominees may, at any stage of the hearing of the dispute, if satisfied that the mistake was bona fide, order any other person to be substituted or added as a plaintiff or a defendant, upon such terms as he thinks just.
5. (5) The Registrar or his nominee or board of nominees may, at any stage of the proceedings, either upon or without the application of either party, and on such terms as may appear to the Registrar, his nominee or board of nominees to be just, order that the name of any party, joined whether as a plaintiff or defendant be struck out, and that the name of any person who ought to have been joined as plaintiff or defendant, or whose presence may be necessary in order to enable the Registrar, his nominee or board of nominees to effectually and completely adjudicate upon and settle all the questions involved in the dispute, be added.
6. (6) Any person who is a party to the dispute and entitled to more than one relief in respect of the same cause of action may claim all or any of such reliefs, but if he omits to claim all such reliefs, he shall not forward a claim for any relief so omitted, except with the leave of the Registrar, his nominee or board of nominees.
7. (7) Notwithstanding anything contained in sub-sections (1) to (6), the following disputes or class of disputes, if the plaintiff so desires, shall be decided summarily by the Registrar, or his nominee or board of nominees, in such manner as may be prescribed, namely:—
   • (a) any dispute for recovery of debt upon Promissory Note, Hundi, Bill of Exchange or bond, with or without interest, whether agreed upon under such instrument or under the bye-laws;
   • (b) any dispute for recovery of a fixed sum of money or, the nature of debt with or without interest, arising on a written contract;
   • (c) any dispute for recovery of price of goods sold and delivered, where the rate, quality and quantity are admitted in writing;
   • (d) any dispute for recovery of dues payable by a member of a housing society towards contribution for construction of the house or any dispute in respect of repayment of any loan, interest on loan, ground rent, local authority taxes, sinking fund, water charges, electrical charges, maintenance and upkeep charges or charges for other services rendered by the society and the interest on such arrears, payable under the written agreement or under the bye-laws.
8. (8) The defendant shall not be entitled to defend the dispute unless he obtains leave from the Registrar, his nominee or board of nominees, in such manner as may be prescribed.
9. (9) The Registrar or his nominee or board of nominees may grant the leave under sub-section (8) on such conditions, as he or it thinks fit.
10. (10) The Registrar or his nominee or board of nominees shall not refuse the leave to defend the dispute unless he or it is satisfied that the facts disclosed by the defendant do not indicate that he has substantial defence to raise or that the defence intended to be put up by him is frivolous or vexatious.
11. (11) Where the defendant fails to obtain such leave or fails to appear or defend the dispute in pursuance of such leave, the averments made in the plaint and documents produced therewith shall be deemed to have been admitted by the defendant: Provided that the Registrar or his nominee or board of nominees in his or its discretion may require any fact so admitted to be proved otherwise than by such admission.
12. (12) Where the conditions on which leave to defend is granted are not complied with by the defendant, the Registrar or his nominee or board of nominees, may pass an award against him, as if he has not been granted such leave.
13. (13) The Registrar or his nominee or board of nominees, may under special circumstances set aside the award, passed by him or it and if necessary, stay or set aside the execution, and may grant leave to the defendant to appear and defend the dispute, if it seems reasonable so to do and, on such terms, as he or it thinks fit.

1. (1) Where a dispute has been referred to the Registrar or his nominee or board of nominees under section 104 or under section 117, or where the Registrar or the person authorised under section 99 hears a person against whom charges are framed under that section, the Registrar or his nominee or board of nominees, or as the case may be, the person so authorised under section 99, if satisfied on enquiry or otherwise that a party to such dispute or against whom proceedings are pending under section 99 with intent to defeat, delay or obstruct the execution of any award or the carrying out of any order that may be made—
   • (a) is about to dispose of whole or any part of his property; or
   • (b) is about to remove the whole or any part of his property from the jurisdiction of the Registrar, may, unless adequate security is furnished, direct conditional attachment of the said property and such attachment shall have the same effect, as if made by a competent civil court.
2. (2) Where a direction to attach property is issued under sub-section (1), the Registrar or his nominee or board of nominees or the person authorised under section 99 shall issue a notice calling upon the person whose property is so attached to furnish such security within such period as may be specified in the notice and if the person fails to provide the security so demanded, the Registrar or his nominee or board of nominees or, as the case may be, the person authorised under section 99 may confirm the order and, after the decision in the dispute or the completion of the proceedings referred to in sub-section (1) may direct the disposal of the property so attached towards the claim, if awarded.
3. (3) The attachment made under this section shall not affect the rights subsisting prior to the attachment of the property of persons not parties to the proceedings in connection with which the attachment is made, or bar any person holding a decree prior to such attachment against the person whose property is so attached from applying for the sale of the property under attachment in execution of such decree.

1. (1) When a dispute is referred to the Registrar for decision, he or his nominee or board of nominees may, after giving an opportunity to the parties to the dispute to be heard, make an award on the dispute, on the expenses incurred by the parties to the dispute in connection with the proceedings and the fees and expenses payable to the Registrar or his nominee or board of nominees, and such an award shall not be invalid merely on the ground that it was made after the expiry of the period fixed by the Registrar, for deciding the dispute and shall, subject to appeal or review or revision, be binding on the parties to the dispute.
2. (2) The Registrar, his nominee or the board of nominees may, before hearing the parties, require any party or parties to such dispute to deposit such sum as may, in his or its opinion, be considered reasonable to meet the expenses including the payment of fees, that may be payable to the Registrar, his nominee or the board of nominees, in pursuance of the award to be made under sub-section (1).
3. (3) The Registrar may, having regard to the nature of the cause of action or subject matter of dispute, the nature of relief that may be claimed in a dispute and such other matters, specify by a general or special order, the scale of fees and expenses that may be made payable to him or his nominee or the board of nominees, by or under an award made under sub-section (1).

1. (1) Any party aggrieved by any decision of the Registrar or his nominee or board of nominees as the case may be, under section 107 or in an order passed under section 106 may, within a period of two months from the date of the decision or order, appeal to the Tribunal: Provided that the Tribunal may entertain any appeal after the expiry of two months, if it is satisfied that there was a sufficient cause for not filing it within that period.
2. (2) The form and the manner of making an appeal to the Tribunal shall be such as may be prescribed.

Every order passed by the Registrar or a person authorised by him under section 99, or by the Registrar, his nominee or board of nominees under section 106 or 107, every order passed by a Liquidator under section 117, every order passed by the Administrator in appeal against orders passed under section 136, and every order passed in revision under section 138, shall, if not carried out—

1. (a) on a certificate signed by the Registrar or a Liquidator, be deemed to be a decree of a civil court, as defined in clause (2) of section 2 of the Code of Civil Procedure, 1908 and shall be executed in the same manner as a decree of such court; or
2. (b) be executed according to the provisions of the Land Revenue Code or any corresponding law for the time being in force in the Union territory for the recovery of arrears of land revenue: Provided that any application for the recovery in such manner of any such sum shall be made to the Collector, and shall be accompanied by a certificate signed by the Registrar, or by any Assistant Registrar to whom the said power has been delegated by the Registrar within twelve years from the date fixed in the order and if no such date is fixed, from the date of the order.

Any transfer or delivery of, or encumbrance or charge on property made or created after the issue of the certificate of the Registrar, Liquidator, or Assistant Registrar, as the case may be, under section 109 shall be null and void as against the society on whose application the said certificate was issued.

1. (1) When in execution of an order sought to be executed under section 109 any property cannot be sold for want of buyers, if such property is in occupancy of the defaulter, or of some person in his behalf, or of some person claiming a title created by the defaulter, subsequent to the issue of the certificate of the Registrar, Liquidator or the Assistant Registrar, under clause (a) or clause (b) of section 109, the court or the Collector or the Registrar, as the case may be, may direct that the said property or any portion thereof shall be transferred to the society which has applied for the execution of the said order in such manner as may be prescribed.
2. (2) Where property is transferred to the society under sub-section (1), or is sold under the provisions of section 109, the court, the Collector or the Registrar, as the case may be, may, in accordance with the rules, place the society or the purchaser, in possession of the property transferred or sold.
3. (3) Subject to the rules made in this behalf, and to any rights, encumbrances, charges or equities lawfully subsisting in favour of any person, such property or portion thereof shall be held under sub-section (1) by the said society on such terms and conditions as may be agreed upon between the court, the Collector or the Registrar, as the case may be, and the said society subject to the general or special orders of the Administrator, the Collector or the Registrar may delegate to an officer, not below the rank of an Assistant or Deputy Collector or an Assistant Registrar, powers exercisable by the Collector or the Registrar under this section.

1. (1) Notwithstanding anything contained in sections 102, 104 and 109, on an application made by a society undertaking the financing of crops and seasonal finance as defined under any law for the time being in force in the Union territory, or undertaking medium term finance for the recovery of arrears of any sum advanced by it to any of its members on account of the financing of crops, seasonal finance or medium term finance and on its furnishing a statement of accounts in respect of the arrears, the Registrar may, after making such inquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as arrears. Explanation.—For the purposes of this sub-section, the expression “medium term finance” means advancing of loans for any purpose of production relating to agriculture, fishery, animal husbandry, poultry, dairy and industry, being repayable otherwise than in the manner specified in the definitions of the expressions “financing of crops” and “seasonal finance” under any law for the time being in force in the Union territory.
2. (2) If a society fails to make an application under sub-section (1), and such society is a member of any co-operative financing bank, such co-operative financing bank may direct such society to take such action, and if that society fails to take action in pursuance of such direction, the co-operative financing bank may itself make an application under sub-section (1) on behalf of the society.
3. (3) Where the Registrar is satisfied that a society or the co-operative financing bank to which such society is affiliated has failed to make an application under sub-section (1) or, as the case may be, under sub-section (2) in respect of such arrears, the Registrar may, of his own motion, after making such inquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as such arrears, and such a certificate shall be deemed to have been issued as if on an application made by the society concerned.
4. (4) A certificate granted by the Registrar under sub-section (1) or sub-section (3) shall be final and a conclusive proof of the arrears stated to be due therein, which shall be recoverable according to the provisions of the Land Revenue Code or any other law for the time being in force in the Union territory and of the rules made thereunder for the recovery of land revenue.
5. (5) It shall be lawful for the Collector and the Registrar to take precautionary measures specified under Land Revenue Code or any other law for the time being in force in the Union territory, until the arrears due to the society together with interest and any incidental charges incurred in the recovery of such arrears, are paid, or security for payment of such arrears is furnished to the satisfaction of the Registrar.