Scheme of dispute resolution under the Multi State Co-operative Societies Act, 2002 different from the repealed Act of 1984

Supreme Court

Supreme Court: Explaining the scheme of the Multi State Cooperative Societies Act, 1984 vis-à-vis it’s repealing Act i.e. the Multi State Co-operative Societies Act, 2002, the Court held that though Section 84 of the 2002 Act corresponds to Section 74 and 76 of the 1984 Act that deal with the resolution of disputes, the scheme of the 2002 Act which replaces the 1984 Act is a little different as the disputes that have been referred to arbitration are now to be settled or decided by the Arbitrator appointed by the Central Registrar, and the provisions, therefore, of the Arbitration and Conciliation Act, 1996 shall apply to such arbitration as if the proceedings for arbitration were referred for settlement or decision under the provisions of the said Act.

Further, the bench of Dipak Misra and R.F. Nariman, JJ clarified that Section 94 which provides for execution of certain decisions and orders made under the 2002 Act, mentions various Sections, except Section 84 for the reason that the entire proceedings have now to be conducted under the 1996 Act, including execution of the arbitration Award made under the said Act.

Clearing the air over the applicability of law to the proceedings pending before the 2002 Act came into force, the Court referred to Section 126 of the 2002 Act which provides that any legal proceeding pending before any authority at the commencement of the 2002 Act shall be continued to be before that authority as if the 2002 Act had not been passed. Hence, it was held that the proceeding in execution initiated under Section 85(c) of 1984 Act and pending before the authorities under the said Act prior to 19th August, 2002, would continue unhindered by the repeal of the 1984 Act by the 2002 Act. [Ludovico Sagrado Goveia v. Cirila Rosa Maria Pinto, 2016 SCC OnLine SC 906, decided on 06.09.2016]

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