Chapter VIII- Settlement of Disputes, Section 60

The following types of disputes may be referred to arbitration-

(1) Disputes regarding the constitution, management or the business
of a co-operative society other than a dispute regarding disciplinary action taken by the society or its committee against a paid employee. The dispute may be taking place—
(a) among members, past members and persons claiming through members, past members and deceased members, or
(b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society or iquidator, past or present, or
(c) between the society or its committee and any past committee, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any
deceased officer, deceased agent, or deceased employee of the society.

"(2) For the purposes of sub-section (1), the following shall be deemed to be disputes touching the
constitution, management or the business of a co-operative society, namely:—
(a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs
or legal representatives of a deceased member, whether such debt or demand be admitted or not;
(b) a claim by a surety against the principal debtor where the society has recovered from the
surety any amount in respect of any debt or demand due to it from the principal debtor as a result of
the default of the principal debtor, whether such debt or demand is admitted or not;
(c) any dispute arising in connection with the election of any officer of a society other than a
society mentioned in sub-section (1) of section 31.
(3) If any question arises whether a dispute referred to the Registrar under this section is or is not a
dispute touching the constitution, management or the business of a co-operative society, the decision
thereon of the Registrar shall be final and shall not be called in question in any court.
(4) (a) Notwithstanding anything contained in the Limitation Act, 1963 (36 of 1963), but subject to
the specific provisions made in this Act, the period of limitation in the case of a dispute referred to the
Registrar under sub-section (1) shall—
(i) when the dispute relates to the recovery of any sum including interest thereon due to a
co-operative society by a member thereof, be computed from the date on which such member dies or
ceases to be a member of the society;
(ii) save as otherwise provided in sub-clause (iii), when the dispute relates to any act or omission
on the part of any of the parties referred to in clause (b) or clause (c) of sub-section (1), be six years
from the date on which the act or omission with reference to which the dispute arose, took place;
(iii) when the dispute relates to a co-operative society which has been ordered to be wound up
under section 63 or in respect of which an administrator has been appointed under section 32, be six
years from the date of the order issued under section 63 or section 32, as the case may be;
(iv) when the dispute is in respect of an election of an officer of a co-operative society other than
a society referred to in sub-section (1) of section 31, be one month from the date of the declaration of
the result of the election.
(b) The period of limitation in the case of any other dispute except those mentioned in the foregoing
clause which are required to be referred to the Registrar under the last preceding section shall be regulated
by the provisions of the Limitation Act, 1963 (36 of 1963), as if the dispute was a suit and the Registrar a
civil court.
(c) Notwithstanding anything contained in clauses (a) and (b), the Registrar may admit a dispute after
the expiry of the period of limitation, if the applicant satisfies the Registrar that he had sufficient cause for
not referring the dispute within such period and the dispute so admitted shall be a dispute which shall not
be barred on the ground that the period of limitation has expired.
61. Reference of disputes to arbitration.—(1) The Registrar may, on receipt of the reference of
dispute under section 60,—
(a) decide the dispute himself, or
(b) transfer if for disposal to any person who has been invested by the Lieutenant-Governor with
powers in that behalf, or
(c) refer it for disposal to one arbitrator.
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(2) The Registrar may withdraw any reference transferred under clause (b) of sub-section (1) or
referred under clause (c) of that sub-section and decide it himself or refer the same to another arbitrator
for decision.
(3) The Registrar or any other person to whom a dispute is referred for decision under this section
may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in the
interest of justice.
62. Power of financing bank to proceed.—(1) If a co-operative society is unable to pay its debts to a
financing bank by reason of its members committing default in the payment of the moneys due by them,
the financing bank may direct the committee of such a society to proceed against such members under
section 60 and if the committee fails to do so within a period of ninety days from the date of receipt of
such direction, the financing bank itself may proceed against such members in which case the provisions
of this Act, the rules or the bye-laws shall apply as if all references to the society or its committee in the
said provisions were references to the financing bank.

(2) Where a financing bank has obtained a decree or award against a society in respect of moneys due
to it from the society, the financing bank may proceed to recover such moneys firstly from the assets of
the society and secondly from the members to the extent of their debts due to the society."