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Mack Rapthe
in Banking Law Administrative Law
Asked May 14, 2017

Issues with Cooperative Society

  • 1 Answer
  • 595 Views

I have some Fixed Deposit in multi state co-op credit society and two of them are matured. When we went to our local branch, the branch is shut downed.then we contact to local branch manager he is also not responding us.he said that our main branch is not releasing the fund.then i went main branch the chairman is not on his place from 2months. Please tell me what to do? tell me step by step procedure for any legal action.

Answer 1

Hi, thank you for writing to us, Here's our response.

 

The concept of Multi State Cooperative Credit Society has been brought to provide banking facilities to its members. The members of such society are the owners and customers of the same, it is to benefit them and provide banking and financial services to them. For the convenience of the members of the society it subserve the objectives of the cooperative society to multi state so that the members find it easy to utilise the banking and financial services.It is done to make it easier the society's function and this helps in realization of mutual help, self help and this eventually aids the betterment of the society and economy and provide functional autonomy amongst the society, other cooperative societies, and government. 

 

These societies fall under the ambit of Cooperative society and is registered under the Multi-State Co-Operative Societies, 2002. Thus, it will be also be governed the same Act and the Multi State Cooperative Societies Rules, 2002. So far even the bye-laws are to be in compliance with the Act and Rules. 

 

Now coming on to your query, you mentioned that you have two fixed deposit in the multi state cooperative credit society, and after the maturity date you got to know that the local branch was closed and furthermore the main branch has no chairman since two months. Before seeking the help from the court, you can request an inquiry and investigation to Central Registrar under section 78 and 79 of the Multi State Cooperative Societies, 2002 respectively. The request can be put by Federal Cooperative, or a creditor or one-third of the members of the Board or not less than One-fifth of the total members of the Cooperative Society. The Central Registrar would direct any person or officer to inquire or investigate the cooperative society. The report of such inquiry or investigation shall be furnished to all the persons who requested it. 

 

Section 106, 107 and 108 of the Act gives power to the members to inspect the registers, returns, books of accounts, etc. 

 

Under Section 84 (1) of the Act mentions the disputes amongst members, members and the cooperative society, and several other combinations are to referred to the Arbitration.Therefore, it is favourable for you to resolve the dispute with the cooperative society through the arbitration. Arbitration is one of the alternative dispute resolution which is speedy unlike the court proceedings and is more flexible. The arbitrators are professionals who are capable of presenting the case to your favour and provide you with a remedy, and also arbitration does not follow the rules of law and evidence which give flexibility to your side. One more good point for choosing arbitration is that it is adversarial in nature which tries to protect the pre-existing relationship between the disputing parties.

Agree Comment 0 Agrees almost 4 years ago

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