Settlement of Disputes under WB Co-operative Societies Act 2006

Update: 24/06/2025

Legal provisions and procedure under Section 102 to 105 of the West Bengal Co-operative Societies Act, 2006, as amended:

Chapter XI
Statement of dispute

SECTION 102 – Jurisdiction of Registrar over Disputes

What kinds of disputes can be filed?

Disputes except those related to elections or disciplinary action against paid employees can be filed before the Registrar if they arise:

• (a) Among members, past members, heirs, legal reps, or sureties.
• (b) Between a member (or representative) and the co-operative society or its board, officers, agents, or employees.
• (c) Between the society and its own past/present officers or their representatives.
• (d) Between two co-operative societies or between a society and a person having transactions with it, including financing banks.

Limitation Period (Sub-section 2 & 3)

• Disputes must be filed within three months of the cause of action.
• However, Registrar may condone the delay for sufficient cause.

Exclusive Jurisdiction

• Civil courts and Consumer Forums have no jurisdiction over these disputes (Sub-section 4).

Manner of Filing

• Disputes must be in writing and follow prescribed form and manner (Sub-section 5).

SECTION 103 – Settlement of Disputes

Dispute Resolution Authority

• Board of Arbitrators constituted with:
  • One Chief Arbitrator (Addl. Registrar rank).
  • 10 Arbitrators (5 Govt. Officers, 5 distinguished Co-operators).

Jurisdictional Distribution:

• Sub-section 2: For apex and federal co-operative societies, dispute goes to Registrar, who refers it to the Board of Arbitrators.
• Sub-section 3: For other societies, the officer with Registrar’s powers may:
  • Decide it himself, or
  • Appoint arbitrator(s).

Powers to Issue Interlocutory Orders

• Arbitrators or Registrar may issue interim orders to preserve subject matter (Sub-section 4).

Time Limit for Decision

• Disputes must be decided within 6 months from the date of receipt.
• Extension: Max 6 more months (total 12 months) on valid cause.
• After 12 months, it goes back to appointing authority (Sub-section 5).

Money Recovery

• Even if recovery involves penal offences, these provisions apply (Sub-section 6).

Procedure

• Will follow prescribed procedure (Sub-section 7).

SECTION 104 – Fees of Arbitrators (Amended in 2013)

Key Provisions:

• Non-government Arbitrators can get up to ₹300 per sitting (as per Registrar).
• Plaintiff must deposit probable fees within 15 days after Registrar’s referral; otherwise, the plaint is rejected.
• No fees to arbitrators until dispute is finally settled.

SECTION 105 – Finality and Legal Force

• Awards involving pledged property carry the same force as a final mortgage decree by a Civil Court.

Practical Implication for Litigants:

• Disputes under this Act are exclusively triable before the Registrar (no civil or consumer court involvement).
• Strict limitation period of 3 months, though delay can be condoned.
• The award of arbitrators has judicial enforceability, even equivalent to mortgage decrees.
• Costs must be borne upfront by the complainant (advance arbitrator fees).

Section 139 of the West Bengal Co-operative Societies Act, 2006 empowers the Registrar or any person authorized under the rules to recover dues from a defaulting member of a Co-operative society, including deceased members, irrespective of the procedures laid down in Chapter XI.

This can be done either on the Registrar’s own motion or upon a written requisition by the Co-operative society or the financing bank. After conducting such inquiry as deemed necessary or expedient, the Registrar may pass an award directing the defaulting member, or his surety, or the successor or legal heir (even if not a member of the society) to pay the amount found due.

This provision provides a quasi-judicial mechanism for expeditious recovery of dues owed to Co-operative societies or their financing institutions, bypassing the regular dispute resolution procedures when urgent recovery is required.

Section 52 of the West Bengal Co-operative Societies Act, 2006 provides a special rule of limitation for suits filed by Co-operative societies to recover dues. It overrides the general provisions of the Limitation Act, 1963.

Under this section, the limitation period for recovery of money (including interest) due to a Co-operative society from a member or any person having transactions with it shall not begin from the usual date of default, but instead:

• From the date the member or person:
  • Dies, or
  • Ceases to be a member, or
  • Closes the transaction with the Co-operative society
    — whichever is later.

Additionally, even after this specially calculated limitation period (typically three years) has expired, the Registrar may condone the delay and admit the dispute, if sufficient cause is shown.

This provision provides flexibility and extended limitation to Co-operative societies, protecting them from premature bar of claims.

Dues payable by a member, his surety, or the successor or legal heir of a deceased member under Section 139 of the West Bengal Co-operative Societies Act, 2006 shall be recoverable as a public demand under the Bengal Public Demands Recovery Act, 1913. Upon the issuance of an award by the Registrar (or authorized person) determining the amount due, a requisition for recovery may be made by:

• The Registrar himself,
• Any person authorized by the Registrar,
• The Co-operative society, or
• The financing bank.

Once such requisition is made, the Certificate Officer initiates recovery proceedings against the defaulter, surety, or legal successor as per the procedure prescribed for recovery of public demands, treating the award as equivalent to a certificate decree.

Main provisions relating to jurisdiction, appeal, and review under the West Bengal Co-operative Societies Act, 2006, specifically Sections 145 to 148:

JURISDICTION (Section 145)

1. Indemnity and Bar of Jurisdiction

• No legal action (suit, prosecution, etc.) can lie against:
  • The Registrar or anyone authorized by him,
  • Any Board of Directors,
  • For actions taken in good faith under the Act.

2. Exclusion of Courts’ Jurisdiction

• Except as provided in the Act, Civil Courts, Revenue Courts, and Consumer Forums have no jurisdiction over:
  • Registration/amendment of by-laws,
  • Dissolution of board or society,
  • Liquidation proceedings,
  • Disputes under Section 102.

3. Bar on Proceedings During Liquidation

• No suit/legal proceeding relating to a society under dissolution shall proceed without Registrar’s leave.

4. Finality of Orders

• No court can set aside, modify, or review any order or award under the Act except for lack of jurisdiction.

TRIBUNAL AND APPEAL (Sections 146–147)

1. Constitution of Tribunal (Section 146)

• State Government shall constitute Tribunal(s) by notification.
• Tribunal consists of:
  • One Chairman (ex-High Court Judge or senior legal official),
  • One Judicial Member (of District Judge rank),
  • One Administrative Member (Joint Secretary level).

2. Jurisdiction and Powers

• Tribunal has jurisdiction over societies within its notified territorial limits.
• Tribunal has powers akin to Appellate Courts under CPC Order XLI.
• Can issue interlocutory orders after hearing.

3. Review Power

• Tribunal can review its own order within 90 days on grounds under CPC Order XLVII.
• No review without notice and hearing to affected parties.

4. Bench Constitution

• Each bench must consist of:
  • 1 Judicial Member + 1 Administrative Member.
• In case of a difference of opinion:
  • Referred to a larger bench (2 Judicial Members incl. Chairman + 1 Administrative Member).

APPEAL PROCEDURE (Section 147)

1. Appealable Orders

• List of appealable orders, appellate authorities, and limitation periods are in the Third Schedule.
• Appeal must be filed within the time prescribed.

2. Limitation Act Not Applicable

• Limitation Act, 1963 does not apply to these appeals.

3. Condonation of Delay

• Appeals filed after limitation must be supported by application for condonation.
• Delay may be condoned on showing sufficient cause.

4. Disposal Time

• Appeals must be disposed of within 6 months from date of presentation.

5. No Appeal in Other Cases

• Only those orders mentioned in Third Schedule are appealable.

REVIEW AND REVISION (Section 148)

1. By State Government

• State Government can review:
  • Records of inquiries/inspections or Registrar’s proceedings,
  • On its own or on application by aggrieved person.
• After hearing affected parties, it may modify/annul orders.

2. By Registrar

• Registrar may revise his own orders or those of subordinates (not having Registrar’s powers).
• May call for records and modify/annul orders, after hearing parties.

3. Limitation of Review Power

• No revision or review under this section is permitted if appeal lies to the Tribunal under Section 147.

This framework creates a self-contained, quasi-judicial mechanism for redressal of Co-operative society disputes, excluding ordinary courts, and emphasizing specialized tribunals and arbitration processes.