Chapter 8 DISPUTES

1. (1) Notwithstanding anything contained in any other law for the time being in force, if any dispute touching the constitution, management, or business of a Co-operative arises, such dispute shall be referred to the concerned arbitral tribunal, if the parties thereto are among the following, namely:—
   • (a) the Co-operative, its board, past board, any past/present officer, any past/present employee, any director, office bearer, or any past director, past office bearer, or the nominee, heir, or legal representative of any deceased employee, deceased director, deceased office bearer, of the Co-operative or the Secondary Co-operative; or
   • (b) a member, potential member, past member, a person claiming through a member or past member or deceased member of the Co-operative or the Secondary Co-operative, or
   • (c) a surety of a member, potential member, past member, or a deceased member. Explanation-I—For the purposes of this sub-section, a dispute shall include—
     • (i) a claim in respect of any sum payable to or by a Co-operative for any debt or other amount due by or to a member, past member, the nominee, heir or legal representative of a deceased member, whether such debt or other amount be admitted or not; or
     • (ii) a claim by surety against the Principal debtor where the Co-operative has recovered from the surety amount in respect of any debt or other amount due to it from the principal debtor as a result of the default of the principal debtor whether such debt or amount due be admitted or not; or
     • (iii) a claim by or against a Co-operative, against or by a member, or past member or the nominee, heir or legal representative of a deceased member relating to the delivery of possession of land or other immovable property resumed by it.
2. (2) If any question arises whether a dispute referred to the arbitral tribunal under this section is a dispute touching the constitution, management or business of the Co-operative, such question shall be decided by the arbitral tribunal.
3. (3) The arbitral tribunal shall decide the dispute in accordance with the provisions of this Act and the articles of association, and such decisions shall be final. Pending final decision on the dispute, the arbitral tribunal may make such interlocutory orders, as it may deem necessary in the interest of justice.
4. (4) Every order or decision made under this section shall be executed by the chief executive of the Co-operative, on a certificate issued by the arbitral tribunal.
5. (5) Notwithstanding anything contained in sub-section
6. (4) or in any other law for the time being in force, and without prejudice to any other mode of recovery which is being taken or may be taken, an arbitral tribunal may, on the application made by the Co-operative for the recovery of arrears due to the Co-operative from any of its members, and its furnishing a statement of accounts in respect of the arrears and after making such inquiry as the tribunal deems fit, issue a certificate for the recovery of the amount stated therein to be due as arrears.
7. (6) A certificate issued by the arbitral tribunal under sub-section
8. (5) shall be final and conclusive proof of the arrears stated to be due and the certificate shall be executed by the chief executive in the manner specified in the articles of association.

The articles of association of each Co-operative shall provide for the constitution of an arbitral tribunal consisting of an individual or a group of individuals not exceeding five, chosen by the general body from among its members or others, whose term of office shall be not more than three years: Provided that where an arbitral tribunal consists of more than one member, it may choose for reasons to be set forth in writing that a dispute or set of disputes referred to it for settlement be decided by one or more of its members, and the decision of such member or members shall be deemed to be a decision of the arbitral tribunal: Provided further that where the arbitral tribunal consists of more than one member, the articles of association shall provide for the general body to specify the name of the person who will be the presiding officer in case of joint arbitration. In case of tribunal having more than one member, at least 50% of the number of members shall constitute quorum in case of joint arbitration. In case of difference of opinion amongst members in a joint arbitration, the decision of majority shall prevail and in case of equality of dissenting opinions, the decision supported by the presiding officer shall prevail.