SETTLEMENT OF DISPUTES
91.
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Disputes:-
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(1)
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Notwithstanding
anything contained in any other law for the time being in force, any dispute
touching the constitution, elections of the committee or its officers “other
than elections of committees of the specified societies including its officer”,
[* Was deleted By MAH. XXIV of 1961]
conduct of general meetings, management or business of a society shall be
referred by any of the parties to the dispute, or by a federal society to
which the society is affiliated or by a creditor of the society, to the
co-operative Court if both the parties thereto are one or other of the
following:-
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(a)
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a
society, its committee, any past committee, any past or present officer, any
past or present agent, any past or present servant or nominee, heir or legal
representative of any deceased officer, deceased agent or deceased servant of
the society, or the Liquidator of the society or the official Assignee of a
de-registered society.
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(b)
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a
member, past member of a person claiming through a member, past member of a
deceased member of society, or a society which is a member of the society or a
person who claims to be a member of the society;
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(c)
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a
person other than a member of the society, with whom the society, has any
transactions in respect of which any restrictions or regulations have been
imposed, made or prescribed under sections 43, 44 or 45, and any person
claiming through such person;
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(d)
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a
surety of a member, past member or deceased member, or surety of a person
other than a member with whom the society has any transactions in respect of
which restrictions have been prescribed under section 45, whether such surety
or person is or is not a member of the society;
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(e)
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any
other society, or the Liquidator of such a society or-de-registered society
or the official Assignee of such a de-registered society;
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Provided
that, an industrial dispute as denned in clause (k) of section 2 of the
Industrial Disputes Act, 1947, or rejection of nomination paper at the
election to a committee of any society “other than a notified society under
section 73-1 C or a society specified by or under section 73–G”, [* Was deleted By MAH. XXIV of 1961] or
refusal of admission to membership by a society to any person qualified there
for or any
proceeding for the recovery of the amount as arrear of land revenue on a
certificate granted by the Registrar under sub-section (1) or (2) of section
101 or sub-section (1) of section 137 or the recovery proceeding of the
Registrar or any officer sub ordinate to him or an officer of society
notified by the State Government, who is empowered by the Registrar under sub
-section (1) of section 156, or any orders, decisions, awards and actions of
the Registrar against which an appeal under section 152 or 152 A and revision
under section 154 of the Act have been provided shall not be deemed to be a
dispute for the purposes of this section.
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(3)
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Save
as other wise provided under sub-section (2) to section 93, no Court shall
have jurisdiction to entertain any suit or other proceedings in respect of
any dispute referred to in sub-section (1).
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Explanation
1.-A dispute between the Liquidator of a society or an official Assignee of a
de-registered society and the members (including past members, or nominees,
heirs or legal representative or deceased members) of the same society shall
not be referred to the co-operative Court under the provisions of sub-section
(1).
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Explanation
2.-For the purposes of this sub-section, a dispute shall include-
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(i)
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a claim
by or against a society for any debt or demand due to it from a member or due
from it to a member, past member or the nominee, heir or legal representative
of a deceased member, or servant for employee whether such a debt or demand
be admitted or not;
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(ii)
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a
claim by a surety for any sum or demand due to him from the principal
borrower in respect of a loan by a society and recovered from the surety
owing to the default of the principal borrower, whether such a sum or demand
be admitted or not;
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(iii)
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a
claim by a society for any loss caused to it by a member, past member or
deceased member, by any officer, past officer or deceased officer, by any
agent, past agent or deceased agent, or by any servant, past servant, past
servant or deceased servant, or by its committee, past or present, whether
such loss be admitted or not;
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(iv)
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a
refusal or failure by a member, past member or a nominee, heir or legal representative
of a deceased member, to deliver possession to a society of land or any other
asset resumed by it for breach of condition as the assignment.
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91-A.
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Constitution of Co-operative Courts:-
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(1)
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The
State Government may, by notification in the Official Gazette, constitute one
or more Co-operative Courts for the adjudication of dispute referred to them
under section 91 or section 105 or other provisions of this Act.
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(2)
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A
Co-operative Court shall consist of one member appointed by the State
Government possessing such qualifications as may be prescribed.
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(3)
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A
Co-operative Court shall have jurisdiction over the whole State or any part
there of as may be specified in the notification under sub-section (1).
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(4)
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All
disputes and other proceedings pending immediately before the commencement of
the Maharashtra Co-operative Societies (Third Amendment) Act, 1973, before
the Registrar or any person to whom the powers of the Registrar under this
Act or the rules made there under have been delegated or before any nominee
or board of nominees appointed by the Registrar, shall be transferred by him,
by general or special order, to any Co-operative Court specified by him in
that behalf and shall be heard and disposed of by that Court as if they had
been originally filed before it. That Court may proceed to hear and dispose
of such proceedings from the stage reached before such transfer or may
commence the hearing de novo.
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(5)
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All
disputes and other proceedings pending, immediately before the commencement
of the Maharashtra Co-operative Societies, (Amendment and Validation) Act,
1982, before the Registrar or any person to whom the powers of the Registrar
under this Act or the rules made there under have been delegated shall be
transferred by him, by general or special order, to any Co-operative Court
specified by him and shall be heard and disposed of by that Court as if they
had been originally filed before it. That Court may proceed to hear and
dispose of such proceeding from the stage reached before such transfer or may
commence the hearing de novo.
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92.
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Limitation:-
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(1)
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Notwithstanding
anything in the Limitation Act, 1963, but subject to the specific provisions
made in this Act, the period of limitation in the case of a dispute referred
to the
Co-operative Court under the last
preceding section shall -
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(a)
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when
the dispute relates to the recovery of any sum, including interest thereon,
due to a society by a member thereof be computed form the date on which such
member dies or ceases to be a member of the society;
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(b)
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when
the dispute is between a society or its committee, and any past committee,
any past or present officer, or past or present agent, or past or present
servant or the nominee, heir or legal representative of a deceased officer,
deceased agent or deceased servant of the society, or a member, or past
member, or the nominee, heir or legal representative of a deceased member and
when the dispute relates to any act or omission on the part of either party
to the dispute, be six years from the date on which the act or omission with
reference to which the dispute arose, took place;
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(c)
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when
the dispute is in respect of any matter touching the constitution, management
or business of a society which has been ordered to be wound up under section
102, or in respect of which a nominated committee “or an
administrator or committee or authorised person has been appointed under
sections 77A, 78 or 78A, be six years from the date of the order issued under
section 77A, 78 or 78A or, under section 102, as the case may be” [* Was substituted By MAH. XXIV of 1961];
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(d)
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When
the dispute is in respect of an election of a committee or officers of the
society, be two months from the date of the declaration of the result of the
election.
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(2)
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The
period of limitation in the case of any other dispute except those mentioned
in the foregoing sub-section which are required to be referred to the
Co-operative Court under the last preceding section shall be regulated by the
provisions of the Limitation Act, 1963, as if the dispute were a suit and the
Co-operative Court a Civil Court.
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(3)
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Notwithstanding
anything contained in sub sections (1) and (2), the Co-operative Court may
admit a dispute after the expiry of the limitation period if the Applicant
Satisfied the Co-operative Court 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 had expired.
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93.
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Transfer of disputes from one
Co-operative Court to another and suspension of proceedings in certain cases:-
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(1)
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Where
any dispute is referred to any Co-operative Court, the President of the
Co-operative Appellate Court may, at any time, for reason to be recorded in
writing, withdraw such dispute from that Court and may refer it for decision
to any other Co-operative Court as he deems fit.
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(2)
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Notwithstanding
anything contained in this Act, the Co-operative Court, on an application
made to it by any of the parties to the dispute, may, if it thinks fit
suspend any proceedings in respect of any dispute, if the question at issue
between a society and a claimant or between different claimants, is one
involving complicated questions of law and fact, until the question has been tried
by a regular suit instituted by one of the parties or by the society. If any
such suit is not instituted in a Civil Court within two months from the date
of the order of the Co-operative Court, shall continue the proceedings and
decide the dispute
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(3)
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“Notwithstanding
anything contained in this Act, where it appears to the Co-operative Court
that there exist elements of settlement which may be acceptable to the
parties, the court may formulate the terms of the settlement and give the
same to the parties for their observation and after receiving the
observations of the parties, the court shall reformulate the terms of
possible settlement and refer the dispute for, - [* Was inserted By MAH. XXIV of 1961]
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(i)
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Arbitration;
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(ii)
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Conciliation;
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(iii)
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Judicial
Settlement, including settlement through Lok - Adalat;
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(iv)
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Mediation
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(4)
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Where a
dispute has been referred – [* Was inserted
By MAH. XXIV of 1961]
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(a)
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for
arbitration or conciliation, the provisions of the Arbitration and
Conciliation Act, 1996 shall apply, as if the proceedings for arbitration and
conciliation were referred for settlement of the dispute under the provisions
of the said Act;
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(b)
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to Lok-Adalat,
the Court may refer the same to the Lok-Adalat in accordance with the
provisions of the Legal Services Authorities Act, 1987 and all other
provisions of that Act shall apply in respect of the dispute so referred to
the Lok-Adalat;
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(c)
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for judicial
settlement, the Court may refer the same to a suitable institution or a
person working in that field and such institution or a person shall be deemed
to be a Lok-Adalat and all the provisions of the Legal Services Authorities
Act, 1987 shall apply as if the disputes were referred to Lok-Adalat under
the provisions of the said Act;
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(d)
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for mediation,
the court may effect compromise between the parties and shall follow such
procedure as may be prescribed.”.
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94.
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Procedure for settlement of disputes and
power of Co-operative Court:-
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(1)
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The
Co-operative Court, hearing a dispute under the last preceding section shall
hear the dispute in the manner prescribed, and shall have power to summon and
enforce attendance of witnesses including the parties interested or any of
them and to compel them to give evidence on oath, affirmation or affidavit, and
to compel the production of documents by the same means and as far as
possible in the same manner, as is provided in the case of a Civil Court by
the code of Civil procedure, 1908.
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(1A)
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Save
as otherwise provided in this Act, every dispute in relation to any election
shall be heard and decided by the Co-operative Court as expeditiously as
possible and endeavor shall be made to conclude the hearing and decision
within six months from the date on which the dispute is filed before it.
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(2)
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Except
with the permission of the Co-operative Court no party shall be represented
at the hearing of a dispute by a legal practitioner.
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(3-a)
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If the
Co-operative Court is satisfied that a person whether he be a member of the
society or not has acquired any interest in the property of a person who is a
party to a dispute it may order, that the person who has acquired the
interest in the property may join as a party to the dispute; and any decision
that maybe passed on the reference by the Co-operative Court shall be binding
on the party so joined, in the same manner as if he were an original party to
the dispute.
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(b)
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Where
a dispute has been instituted in the name of the wrong person, or where all
the defendants have not been included, the Co-operative Court may, at any
stage of the hearing of the dispute, if satisfied that the mistake was
bonafide order any other person to be substituted or added as a plaintiff or
a defendant, upon such terms as it thinks just.
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(c)
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The
Co-operative Court may, at any stage of the proceedings, either upon or
without the application of either party, and on such terms as may appear to
the Co-operative Court, to be just, order that the name of any party
improperly joined whether as plaintiff or defendant, be struck out, and the
name of any person who ought to have been joined whether as plaintiff or
defendant or whose presence before the Co-operative Court, may be necessary
in order to enable the Co-operative Court effectually and completely to
adjudicate upon and settle all the questions involved in the dispute, be
added.
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(d)
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Any
person who is a party to the dispute and entitled to more than one relief in
respect of the same cause of action may claim all or any of such reliefs; but
if he omits to claim for all such reliefs he shall not forward a claim for
any relief so omitted, except with the leave of the Co-operative Court.
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(3A)
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If the
disputant is present and the opponent is absent, when the dispute is called
out for hearing, the Co-operative Court may decide the dispute ex-parte, and
pass an award. The Co-operative Court, may set aside the ex-parte award upon
such terms as to the payment of costs, to the court or otherwise as it thinks
fit, if the opponent makes an application within thirty days from the date of
the award, and satisfies the court that there was sufficient cause for his
failure to appear, when the dispute was called out for hearing and appoint a
day for hearing and deciding the dispute on merits. [* Was substituted By MAH. XXIV of 1961]
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(3B)
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If the
opponent is present and the disputant is absent, when the matter is called
out for hearing, the Co-operative Court may dismiss the dispute for default,
and pass an award accordingly. The Co-operative Court may restore the dispute
which is dismissed for default and restore the same, upon such terms as to
the payment of costs, as it thinks fit, if the disputant makes an application
within thirty days from the date of its dismissal, and satisfies the court
that there was sufficient cause for his failure to appear, when the dispute
was called for hearing and appoint a day for hearing and deciding the dispute
on merits.” [* Was substituted By MAH.
XXIV of 1961]
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(4)
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Save
as otherwise directed by the State Government in any case or class of cases,
every dispute shall be decided in such summary manner as may be prescribed
and as expeditiously as possible.
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95.
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Attachment before award or orders and
interlocutory orders:-
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(1)
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Where
a dispute has been referred to the Co-operative Court under section “91, 93
or 105” [* Was substituted By MAH.
XXIV of 1961] or whether the Registrar or the person authorised under
section 88 (hereinafter in this section referred to as "the authorised officer")
[* Was substituted By MAH. XXIV of
1961] hears a person against whom charges are framed under that section
and the Co-operative Court or the Registrar or the “authorised officers” [* Was substituted By MAH. XXIV of 1961]
, as the case may be, is satisfied on inquiry or other wise that a party to
such dispute or the person against whom proceedings are pending under section
88, with intent, to defeat, delay or obstruct the execution of any award or
the carrying out of any order that may be made,-
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(a)
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is
about to dispose of the whole or any part of his property, or
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(b)
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is
about to remove the whole or any part of his property from its or his
jurisdiction the Court or the Registrar or the authorised person, as the case
may be, may, unless adequate security is furnished, direct conditional
attachment of the said property, and such attachment shall have the same
effect as if made by a competent Civil Court.
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(2)
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Where
attachment of property is directed under sub-section (1), the Co-operative
Court or the Registrar or the authorised person, as the case may be, shall
issue a notice calling upon the person whose property is so attached to
furnish security as it or he thinks adequate within a specified period. If
the person fails to provide the security so demanded, the authority issuing
the notice may confirm the order and, after the decision in the dispute or
the completion of the proceedings under section 88, may direct the disposal
of the property so attached towards the claim if awarded.
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(3)
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Attachment
under this section shall not affect the rights subsisting prior to the
attachment of the property, of persons not parties to the proceedings in
connection with which the attachment is made, or bar any person holding a
decree against the person whose property is attached from applying for the
sale of the property under attachment in execution of such decree.
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(4)
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The
Co-operative Court, the Registrar or the authorised person, as the case may
be, may in order to prevent the ends of justice being defeated make such
interlocutory orders pending the decision in a dispute referred to in
sub-section (1) as may appear to be just and convenient.
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96.
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Decision of Co-operative Court:-
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When a
dispute is referred “to the Co-operative Court, it may,
after giving a reasonable opportunity of being heard, to the parties to the
dispute, make an award regarding the dispute”, [* Was substituted By MAH. XXIV of 1961]
on the expenses incurred by the parties to the dispute in connection with the
proceedings, and fees and expenses payable to the Co-operative Court. In case
of money claim preferred by society against a member, the amount of award
representing the interest shall not be less than the amount of interest
accrued there on in accordance with the contractual rate of interest, but
where such money claim relates to any loan referred to in section 44A, the
provisions of that section shall apply to such money claim as they apply to
loan under section 44A.
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97.
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Appeal against decision under Section 96
and order under Section 95:-
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Any
party aggrieved by any decision of the Co-operative Court under the last
preceding section, or order passed by the Co-operative Court or the Registrar
or the “authorised officer” [* Was substituted
By MAH. XXIV of 1961] under section 95 may, within two months from the
date of the decision or order, appeal to for the Co-operative Appellate
Court.
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98.
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Money how recovered:-
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Every
order passed by the Official Assignee of a de-registered society under
sub-section (3) of section 21A or every order passed by the Registrar or “an
authorised officers” [* Was inserted
By MAH. XXIV of 1961] by him under section 88 or by the Registrar or the
Co-operative Court under section 95 or by the Co-operative Court under
section 96, every order passed in appeal under the last preceding section
every order passed by a Liquidator under section 105, every order passed by
the State Government in appeal against orders passed under section 105 and
every order passed “by the State Government or by the
Registrar in revision under section 154 or every order passed by the
Registrar for recovery under this Act shall”, [* Was substituted By MAH. XXIV of 1961]
if not carried out,-
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(a)
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On a
certificate signed by the Official Assignee or the Registrar or the Co-operative
Court or a Liquidator, be deemed to be a decree of a Civil Court, and shall
be executed in the same manner as a decree of such Court, or
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(b)
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be
executed according to the law and under the rules for the time being in force
for the recovery of arrears of land revenue:
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Provided
that, any application for the recovery in such manner of any such sum shall
be made by the Collector, and shall be accompanied by a certificate signed by
the Registrar. "or Co-operative Court” [* Was inserted By MAH. XXIV of 1961] Such application shall be
made within twelve years from the date fixed in the order and if no such date
is fixed, from the date of the order.
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99.
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Private transfer of Property made after
issue of certificate void against society:-
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Any
private transfer or delivery of, or encumbrance or charge on, property made
or created after the issue of the certificate of the Registrar, Co-operative
Court, Liquidator or Assistant Registrar, as the case may be, under section
98 shall be null and void as against the society on whose application the
said certificate was issued.
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100.
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Transfer of property which cannot be sold:-
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(1)
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When
in any execution of an order sought to be executed under section 98, or the
recovery of any amount under section 101 or section 137, any property cannot
be sold for want of buyers, if such property is in occupancy of the defaulter,
or of some person in his behalf, or of some person claiming under a title
created by the defaulter subsequently to the issue of the certificate of the
Registrar, Court, Liquidator or the Assistant Registrar, under clause (a) or
(b) of section 98, or
under section 101 or 137, the Court or the Collector or the Registrar, as the
case may be, may, notwithstanding any thing contained in any law for the time
being in force, direct that the said property or any portion thereof shall be
transferred to the society which has applied for the execution of the said
order, in the manner prescribed.
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(2)
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Where
property is transferred to the society under the foregoing sub-section or
where property is sold under section 98 101 or 137, the Court, the Collector,
or the Registrar, as the case may be, may, in accordance with the rules,
place the society or the purchaser, as the case may be, in possession of the
property transferred or sold.
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(3)
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Subject
to such rules as may be made in this behalf, and to any rights encumbrances,
charges or equities lawfully subsisting in favour of any person, such
property or portion thereof shall be held under sub-section (1) by the said
society on such terms and conditions as may be agreed upon between the Court,
the Collector or the Registrar, as the case may be, and the said society.
Subject to the general or special orders of the State Government, the
Collector or the Registrar may delegate to an officer, not below the rank of
an Assistant or the Deputy Registrar under this section.
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101.
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Recovery of certain sums and arrears due
to certain societies as arrears of land revenue :-
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(1)
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Notwithstanding
anything contained in sections 91, 93 and 98, on an application made by a
resource society undertaking the financing of crop and seasonal finance as
defined under the Bombay Agricultural Debtors Relief Act, 1947, or advancing
loans for other agricultural purposes repayable during a period of not less
than eighteen months and not more than five years for the recovery of arrears
of any sum advanced by it to any of its members on account of the financing
of crop or seasonal finance or for other agricultural purposes as aforesaid
or by a crop-protection society for the recovery of the arrears of the
initial cost or of any contribution for obtaining services required for crop
protection society or for the recovery of the arrears of the initial cost or
of any contribution for obtaining services required for crop protection which
may be due from its members, or other owners of lands included in the
proposal (who may have refused to become members) or by a lift irrigation
society for the recovery of arrears of any subscription due from its members
for obtaining services required for providing water supply to them, or by a
Taluka or Block level village artisans multipurpose society advancing loans
and arranging for cash credit facilities for artisans for the recovery of
arrears of its dues, or “by a co-operative housing society, for the
recovery of its dues or for the recovery of its maintenance and service
charges”, [* Was substituted By MAH. XXIV of 1961] or by
a co-operative dairy society advancing loans for the recovery of arrears of
any, sum advanced by it to any of its members or by an urban co-operative
bank for the recovery of arrears of its dues, “or any sum
advanced by the District Central Co-operative Bank to its individual members
or by non-agricultural co-operative credit society for the recovery of the
arrears of its dues”; [* Was inserted
By MAH. XXIV of 1961] or by salary-earners
co-operative society for the recovery of arrears of its dues, or by a
fisheries co-operative society for the recovery of arrears of its dues, or by
any such society or class of societies, as the state Government may from time
to time, notify in the official Gazette, for the recovery of any sum advanced
to, or any subscription or any other amount due from, the members of the
society or class of societies so not notified; and “on the society concerned
furnishing a statement of accounts and any other documents as may be
prescribed” [* Was substituted By MAH.
XXIV of 1961] in respect of the arrears, the Registrar
may, after making in such manner as may be prescribed, grant a certificate
for the recovery of the amount stated therein to be due as arrears. The
application for grant of such
certificate shall be made in such form and may following such procedure,
accompanied by such fees and document as may be prescribed:
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Explanation.
- For the purposes of this sub-section, the expression "other
agricultural purposes" includes dairy, pisciculture and poultry.
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“Explanation
II.- For the purposes of this sub-section the expression “maintenance and
service charges” means such charges as are specified in the by-laws of the concerned
co-operative housing society.”; [* Was
inserted By MAH. XXIV of 1961]
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(2)
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Where
the Registrar is satisfied that the concerned society has failed to take
action under the foregoing sub-section in respect of any amount due as
arrears, the Registrar may, of his motion, after making such inquiries as may
be prescribed, grant a certificate for the recovery of the amount stated
therein to be due as arrears and such a certificate shall be deemed to have
been issued as if on an application made by the society concerned.
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(3)
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A
certificate granted by the Registrar under sub-section (1) or (2) shall be
final and a conclusive proof of the arrears stated to be due therein, and the
same shall be recoverable according to the law for the time being in force “as arrears of
land revenue. A revision shall lie against such order or grant of
certificate, in the manner laid down under section 154 and such certificate
shall not be liable to be questioned in any Court.” [* Was substituted By MAH. XXIV of 1961]
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(4)
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It
shall be lawful for the Collector and the Registrar to take precautionary
measures authorised by sections 140 to 144 of the Bombay Land Revenue Code,
1879 or any law or provision corresponding thereto for the time being in
force, until the arrears due to the concerned society, together with interest
and any incidental charges incurred in the recovery of such arrears, are
paid, or security for payment of such arrears is furnished to the
satisfaction of the Registrar.
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