Section 56 in The M.P. Swayatta Sahakarita Adhiniyam, 1999
56. Disputes.
(1)If any dispute touching the constitution, management or business of a co-operative arises-(i)(a)among members, past members or persons claiming through member, past member or deceased member; or(b)between a member, past member or a person claiming through a member, past member or deceased member and the co-operative, its board, director, office-bearer or liquidator, past or present; or(c)between the co-operative and its board and any past board, any director office-bearer, or any past director, past office-bearer, or the nominee, heir, or legal representative of any deceased director or deceased office-bearer of the co-operative.shall be referred to the Arbitration Council;(ii)between the co-operative and any other co-operative or between a co-operative and liquidator of another co-operative or any other Individual or institutions shall be referred to the Cooperative Tribunal.Explanation : - For the purposes of this sub-section, a dispute shall include-(a)a claim by a co-operative for any debt or other amount due to it from a member, past member, the nominee, heir or legal representative of a deceased member, whether such debt or other amount due be admitted or not;(b)a claim by surety against the principal debtor where the co-operative has recovered amount from the surety in respect of any debtor or other amount due to it from the principal debtor as a result of the default of the principal debtor whether such debt or other amount due be admitted or not;(c)a claim by a co-operative against a member, past member or the nominee, heir or legal representative of a deceased member for the delivery of possession to the co-operative of land or other immovable property resumed by it for breach of the conditions of assignment or allotment of such land or other immovable property;(d)any dispute arising in connection with the election of directors or delegates or representatives or President or Vice-President of the co-operative :Provided that no dispute under this clause shall be entertained during the period commencing from the announcement of the election programme till the declaration of the results.(2)If any question arises whether a dispute referred to the Arbitration Council under this section is a dispute touching the constitution, management or business of the co-operative, such question shall be decided by the Arbitration Council.(3)The Arbitration Council shall on deposit of fees prescribed in the bye-laws decide the dispute in accordance with the provisions of this Act and the bye-laws. Pending final decision on the dispute, the Arbitration Council may make such interlocutory orders it may deem necessary in the interest of justice.(4)Every order or decision made under this section, shall be executed by the Civil Court having jurisdiction, as if such order is a decree of that Court, on a certificate issued by the Arbitration Council.(5)Notwithstanding anything contained in sub-section (4), and without prejudice to any other mode of recovery which is being taken or may be taken, the Arbitration Council may, on the application made by the co-operative for the recovery of arrears of any sum advanced by the co-operative to any of its members, and on its furnishing a statement of accounts in respect of the arrears and after making such inquiry as such Council deems fit, issue a certificate for the recovery of the amount stated therein to be due as arrears.(6)A certificate issued by the Arbitration Council under sub-section (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 bye-laws.(7)A person aggrieved by the order of the Arbitration Council may appeal to the Co-operative Tribunal within forty-five days from the date of passing the order :Provided that no appeal under this sub-section shall be admitted unless twenty-five per cent of the decreed principal amount is deposited in such manner as the Co-operative Tribunal may prescribe by regulations.
