Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Annexure
Settlement of Disputes

88. Procedure for making reference of Dispute

1. Where a party to a dispute referred to in sub-section (1) of section 60 desires to have the dispute determined in accordance with the said section, the party shall apply to Registrar in writing in Form 17 stating inter alia (i) all the facts constituting the cause of action, (ii) names and addresses of the other parties (iii) facts showing that this subject matter of dispute is not barred by limitation, (iv) relief claimed in terms of money or otherwise. Each statement in the application shall have separate consecutive paragraphs serially numbered,. At the end of the application then shall be made verification with the place and date of verification.

2. A party, referring the dispute under sub-section (1) of section 60 to the Registrar shall pay a fee of rupees one hundred plus the process-fee at the rate of rupees ten for each party which shall be deposited in advance in the Financing Bank in the name of the Registrar in ''Settlement and Executive Service Expenses Fund", the original of pay-in-slip for the deposit of this account shall be attached with the application for reference of a dispute. The application for reference of a dispute shall be delivered in the office of the Registrar personally and receipt obtained or by registered post alongwith as many spare copies of the application as there are parties on the opposite side. Provided that the Registrar shall be competent to revise the fee and process fee for referring the dispute under sub-section (1) of section 60 from time to time.

3. On receipt of the application, the Registrar shall enter it in a register in Form 18 and allot case No. on the application. (Amended on 24.5.82)

4. If the Registrar is satisfied that the application is maintainable under sec. 6C), he shall by an order, admit the application for decision of the dispute in accordance with the act and Rules and record his findings on the following points within 45 days of the receipt of the case (Amended on 6.8.97):-

(i) whether there is a dispute

(ii) whether the dispute comes with in the purview of sub-sec. (1) of section 60.

(iii) whether the dispute is between parties mentioned in clauses. (a) (b)(c) and (d) of sub-section (1) of section 60.

(iv) Whether the dispute is with in time according to sub-section (4) of section 60.

5. After the application has been admitted by the Registrar and after the claimant has deposited the arbitration fee in the manner and according to the scale of fees fixed by him, the application along with his orders thereon shall be referred for decision to the arbitrator.

Explanation -  The expression "Arbitrator" wherever occurring in these rules, means the authority mentioned in sub-section(l) of section 61 whether the authority may be the Registrar himself.

6. The Registrar or the arbitrator, as the case may be, shall have power to appoint or remove a guardian for the party to the dispute who is a minor or who by reasons of unsoundness of mind or mental infirmity, is incapable of protecting his interest.

7. In these proceedings, the arbitrator shall fix the date, hour and the place of hearing of the dispute.

8. The arbitrator may issue summons or notices at least fifteen days before the date fixed for the hearing of the disputes requiring:-

(i) the attendance of the parties concerned and of witnesses: and .

(ii) the production of alt books and documents relating to the matter in dispute.

9. Summons or notices may be served by:-

(i) registered post, or

(ii) personal service through the Secretary or a member of the staff of the society or any of the parties to the dispute; or

(iii) affixing a copy of summons or notice at the last known place of residence or business of the person concerned,

When he refuses to sign that acknowledgement or he cannot be found.

10. Service of summons or notice on the Secretary or Principal executive officer by whatever designation known, shall be regarded as service on that society. -

11. Where the serving officer delivers or tenders a copy of the summons personally to the person summoned or to an agent or other person on his behalf, he shall require the signature of the person to whom the copy is so delivered or tendered in token of acknowledgement of service endorsed on the original summons.

12. The serving Officer shall in all cases, in which the summons has been served under clauses (ii) and (iii) of sub-rule (9), make an endorsement on, or annex to, the original summons, a return, staling the time when and the manner in which the summons was served and the name and address of the person, if any, identifying the person concerned and witnessing the delivery or tender of the summons.

13. The sufficiency of proof of service of the summons or notice shall be decided by the authority which issued the same.

14. In the case of absence of any party to the dispute duly summoned the dispute may be decided ex-parte.

89. Award or Decision

The arbitrator shall make a memorandum of the statements of the parties who attended and of such witnesses as are examined, and upon the evidence so recorded and after consideration of any documentary evidence produced by either party shall make an award in accordance with justice, equity and good conscience, he shall record his award signed and date it within a period of three months and shall communicate it to the party concerned. In case the arbitrator is unable to decide the case and make the award within three months he shall seek extension of the period in writing from the Registrar by making an application to him. (Amended on 9.9.88)

2. The award shall contain the number of reference, the names and description of the parties and particulars of the disputes and shall specify clearly the relief granted, the amount decreed, the future interest allowed, if any, and the costs awarded.

3. If no award is made immediately upon the conclusion of the hearing of the parties, the arbitrator shall fix the date and place of delivery of the award and shall, except for reasons to be recorded in writing, deliver the award on the date so fixed.

4. The award shall be communicated to the parties by:-

(a) pronouncement of the award, or

(b) registered post to any party which may be absent on such date.

5. The arbitrator shall have power to order the expenses of determining a dispute or the cost of either party, to be paid by such party or parties to the dispute as he may think fit. (Amended on 6.8.97)

Provided that the expenses or the cost so awarded shall not exceed 7.5 per cent of the awarded amount over the arbitration fee deposited by the claimant with the Registrar.

6. The original records of the dispute and the proceedings before the arbitrator shall be delivered to the Registrar by the arbitrator, after the decision or award has been delivered.

7. Any document or record tendered by a party may on application be returned to the party after the disposal of the appeal, if any, or after the period of appeal.

8. A copy of the decision or award shall, on application be given to a party by the Registrar duly certified on payment of the prescribed fee.

90. Withdrawal of a reference by the Registrar.

On an application by any party to the arbitration proceedings pending before an arbitrator, the Registrar may for reasons to be recorded in writing withdraw the reference from the arbitrator appointed and may decide the dispute himself and give an award in the manner provided in rule 89 or make fresh appointment.

91. Appointment of persons as arbitrator.

1. For a purpose of clause (c) of sub-section (1) of section 61, the Registrar may appoint any person who fulfills such qualification as may be specified by the Registrar to perform the duties of the arbitrator for dispute for a period to be specified in the order, which shall not ordinarily exceed one year but may be extended by the Registrar by further special order for further periods not exceeding one year at a time.

For the purpose of sub-rule (1) of rule 91, Registrar shall appoint Arbitrators from amongst:-

(a) Gazetted officers including retired, of any department under the-Delhi Administration or Central or State Govt. or (Amended on 24.5.82)

(b) Officers, paid staff or members of any co-operative society with at least 3 years experience having academic qualifications of not less than a Degree from any University or Diploma in Cooperation or (Amended on 24.5.82)

(c) Chartered Accountants. .

(d) Officers of local bodies, pubic sector undertakings, etc. (Amended on 6.8.97)

92. Arbitration Fee.

The Registrar shall have power to require the person referring a dispute under sub-section (1) of section 60 to deposit in advance with the Financing Bank in "Settlement and Executive Expenses Fund" a fee at the rate specified in the Table, below which may be revised by the Registrar from time to time.

Table A

(Schedule of Fee for an arbitration)

1. In respect of disputes relating to claims of money referred to under section 60.

(i) Fee payable by a party on account of arbitration is as follow:-

(a) in case of claim below Rs. 100 ....... Rs.25.

(b) in case of claim for Rs. 100 or above....... 3% of the claim subject to a minimum of Rs. 200/- and maximum of R3.5000/-. (Amended on 6.8.97)

(ii) In case of dispute of non monetary nature ..... a fee of not less than Rs. 100 and not more than Rs. 750 in each case, as may be considered reasonable by the Registrar. (Amended on 9.9.88)

2. The arbitrator may be paid out of the fee recovered under sub-rule (1) of rule 92, such fee as the Registrar may think proper.

3. No fee shall be payable to an arbitrator till the dispute referred to him is finally decided.

4. The Registrar may, in his discretion, remit the whole or any part of the fees collected under sub-rule (1).

5. All fees for services rendered in respect of arbitration or execution proceedings payable by a party shall be de-posted in the financing Bank in the "Settlement and Execution Services Expenses Fund" which shall be administered by the Registrar in accordance with the Regulations contained in Schedule IV.

93. Deleted on 6.8.97

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Last Updated : 23 Mar,2014