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Dispute of Membership shall not be referred for Arbitration

Office of The Registrar
Cooperative Societies Delhi, Old Courts Building
Parliament Street, New Delhi 

No Jurisdiction of Arbitration for Admission/Resignation/Expulsion of Membership

No. F 39/Policy/RCS/786 Dated : 29/11/95 

Directive Rule 77 of The Delhi Cooperative Societies Rules 1973 

Subject: Non applicability of provisions of Section 60 in respect of aspects of membership like admission/rejection of membership/resignation/ expulsion in group housing societies and house building societies.

It has been noticed that disputes relating to admission/rejection of membership/ resignation/expulsion are being referred for arbitration U/s 60 and 61 of DCS Act, 1972 As the subject matters like admission/rejection of memberships/resignation from the membership of the society and expulsion of membership from a society are dealt under rule 30, 31 and 36 of the DOS Rules, 1973 and the decisions taken under these rules are appealble U/s 76 (1) of DCS Act 1972, admitting such disputes U/s 60 of DOS Act, 1972 is not legally justified. It is also noted that sometimes the Arbitrator’s Award U/s 61 is not in accordance with the policy of Deptt. in these matters and this creates complications. Moreover, sub-section (2)of Section 60 of DOS Act, 1972 deals with specific disputes amongst the members, past members and persons, claiming through members, past members and deceased members of the society, which touches the constitution, management or business of cooperative society and these disputes are specified as follows:

(a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not;

(b) a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect of any debt of demand due to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand is admitted or not.

(c) any dispute arising in connection with election of any officer of a society other than a society mentioned in sub-section (1) of section 31.

Thus, the issues pertaining to membership like admission/rejection of membership/ resignation/ expulsion etc. are not covered within the ambit of Section 60of the DCS Act, 1972. 

Therefore, I, Geeta Sagar, Registrar cooperative Societies in exercise of the powers vested in me under rule 77 of the DOS Rules, 1973 hereby direct that the disputes relating to admission/rejection of membership/resignation and expulsion etc. shall be decided administratively on the society’s file in accordance with the DCS Act/Rules and the Directives/ guidelines issued by the ROS from time to time and in accordance with the present policy of the Deptt. All the pending cases U/s 60 and 61 which concern the said aspects of membership are hereby withdrawn/transferred from wherever they are pending. It is further directed that these cases shall be processed on the society’s file by the concerned Assistant Registrars as directed above.

Sd/­-
(Geeta Sagar)
Registrar, Cooperative Societies

Last Updated Date :- 20-06-2018

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