Chapter VIII Settlement

(1) If any dispute arises touching the constitution, management or business of a Cooperative Society, and matters connected therewith or incidental thereto: (a) among members, past members and persons claiming through members, past members and deceased members, or (b) between a member, past member or a person claiming through a member, past member or deceased member and the Cooperative Society, its board, director, office-bearer or liquidator, past or present, or (c) between the Cooperative Society or its board and any past board, director, office-bearer, or the nominee, heirs or legal representatives of any deceased director, deceased office-bearer of the Cooperative Society, or (d) between the Cooperative Society and any other Cooperative Society, or (e) between the promoters of a Cooperative Society and the Registrar, or a Cooperative Society and the Registrar, or (f) between a Cooperative Society and liquidator of another Cooperative Society or between the liquidators of two or more Cooperative Societies, Such disputes may be referred to the Cooperative Tribunal for decision: Provided that no dispute shall be referred under this section to the Cooperative Tribunal unless the disputing parties exhausted all remedies that may be available in the bye-laws for the settlement of disputes. (2) Any dispute relating to elections held to a Cooperative Society may be referred to the Cooperative Tribunal for decision. (3) Any appeal against a decision of the Tribunal shall lie before the High Court within sixty days of the date of order.

(1) A member, director or chair person of the Cooperative Society may and the Registrar shall file a copy of the report of the auditor or the special auditor or the enquiry officer, before the Tribunal with an application for necessary action against the person on account of whose conduct the Cooperative Society has incurred loss. The Tribunal may on the basis of such report disallow every item of expenditure incurred contrary to law and order recovery of the same from the person held responsible in the said report for any deficiency, loss or unprofitable outlay occasioned by his negligence or misconduct or of any such amount which ought to have been accounted but is not brought into account by that person and shall, in every such case, specify the amount liable to be paid by such person to the Cooperative Society. Explanation: It shall be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that notwithstanding his negligence or misconduct the deficiency or loss would not have occurred, but for the negligence or misconduct of some other person. (2) The Tribunal shall state in writing the reasons for its decision in respect of every disallowance, surcharge and a copy of such decision shall be served on the person against whom it is made in the manner laid down for the service of summons in the Code of Civil Procedure, 1908: Provided that the Tribunal shall not pass any order of recovery under this section unless the person against whom any such order is passed has had an opportunity of making a representation either by himself or through the counsel. (3) Any person aggrieved by an order passed under this section may, within sixty days after the date of service on him of the order by the Tribunal, file an appeal against such order in the High Court. (4) The order passed by the Tribunal or the High Court shall be executed in the same manner as a decree of a Civil Court under the Code of Civil Procedure, 1908.