Arbitration in cooperative society
kumarjainn
(Querist) 25 May 2013
This query is : Resolved
sir
i am a member of a cooperative society in Ghaziabad, U.P. for a plot. Instead of giving us a plot the society is building flat in the land has said that they will give us a flat free of cost. they have got the approval from Lucknow office to construct flats in the society land. They claim that they have approval from the society members who have attended the AGM to construct flats in the land. We were 250 original members since 1990. In the year the around 125 members resigned from the society. now we are only 125 original members. we do not know who those members are and are they genuine members who have given them their approval in AGM. they are building 1200 number of flats in the society. we are being adviced by advocates that they will give us the flat but not free of cost. they will ask for some payment. and therefore to avoid this we should file arbitration case. we are members of the society. they had cancelled our membership as defaulter in payment. the high court bench, lucknow has restored our membership on the ground that we have paid the land cost and therefore our membership cannot be cancelled. supreme court dismissed the appeal of the society.
your advice is sought on following question:
1. Whether we should file arbitation case against society.? or wait till they give us flat and demand money? and thereafter file contempt in supreme court as they do not consider us member and are asking for money. the flat is to be given in exchange of our plot.
2. If yes, then arbitration has to be filed in Ghaziabad (where we have the land) or it can be filed in Lucknow (as cooperative housing society office is in Lucknow)
3. In case we file the arbitratio case in lucknow will it not be transferred to Ghaziabad where the land is situated.
pl. advice
V R SHROFF
(Expert) 25 May 2013
WHY NOT MOVE CO-OPERATIVE COURT, TO CHALLENGE THE RESOLUTION OF AGM??
CAN GET INJUNCTION ORDER TILL PARTITION IN CIVIL COURT??
Arbitration clause there??
Shashikant V. Patil
(Expert) 25 May 2013
Mr. VR Shroff is right. Also, in the Annual General Meeting, why not members, asked questions related to your so called society, it's list of members, and who are office bearers , how taking decision ? Your subject property is situated in Ghaziabad, which is a District Place, and how the office is set up at Luknow is not understood. In Ghaziabad may also have a Co-operative court existed, there you can file suit against the decision of AGM.
ajay sethi
(Expert) 25 May 2013
repeated query . you had raised this issue earlier too and experts had advised you
kumarjainn
(Querist) 25 May 2013
sir
thanks for reply
the society has prepared all the papers necessary for all the approvals they require.advocate has adviced that these papers can be challenged by filing arbitration case and thereafter only we can file an appeal in cooperative tribunal if not satisfied by the decision of the arbitration court. the cooperative tribunal is in Lucknow.so he insisted that we should file arbitration case in lucknow. another advocate has adviced that since the land is situated in ghaziabad the arbitration can be filed in ghaziabad only. pl. advice what is the correct approach. there is difference of opinion between these two advocates.
Raj Kumar Makkad
(Expert) 25 May 2013
There is no requirement to make arbitration at the place where the property is situated. The opinion thereto is wrong.
M V Gupta
(Expert) 26 May 2013
The dispute relates to allotment of plot of land as per original scheme. the society states that the AGM has passed a resolution changing the scheme. So u should challenge the alleged resolution passed by the AGM and get the relief. Please check ur Society's bye laws and the UP Coop Societies Act. Cancellation of the AGM resolution is within the jurisdiction of the Cooperative Court. It is not clear under what provision of law or bye law ur advocates are suggesting arbitration in the matter. Arbitration is necessary only if there is an agreement between the parties to refer the dispute for settlement by arbitration.
Raj Kumar Makkad
(Expert) 26 May 2013
+Respected Gupta ji! When a querist is asking a limited query about the place of arbitration then we have no other option but to believe upon him that a provision exists between the disputing parties qua the arbitration. A specific contract may have been executed between them for the matter under discussion.
Saurendra Rautray
(Expert) 18 October 2014
Hi.
Normally in cooperative society act which I can confirm in Delhi cooperative society act Arbitration clause is present in form of Statutory form as envisaged in MSMED Act of 2006. So if the same is there in that act no need of a separate agreement. It has to be referred to the registrar of the society who shall first see if the matter has to be referred to arbitration or not there after he may appoint or may not and his decision for not appointing can be challenged too.
Saurendra Rautray
Rautray& Co
HEAD OFFICE :Delhi : B3/18,Vasant-Vihar, New Delhi - 110 057
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