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Section 31: Procedure for reference and arbitration

The Karnataka Co-operative Societies Rules, 1960.State Rules of Karnataka · 1959

(1) A reference to the Registrar of any dispute under Section 70 of the Act shall be in writing and stamped with such stamp and in accordance with such scale as may be notified by Government in this behalf.

3[(2) No co-operative society shall spend any money out of the funds of the cooperative society, disputes relating to the election of any of its members referred to the Civil Court.]

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(3) Where on receipt of a reference under sub-rule (1) the Registrar decides under clause (c) of sub-section (2) of Section 71 to refer it for disposal by arbitration, the reference shall be made to one arbitrator appointed by the Registrar.

(4) (a) The Registrar, the Arbitrator, or other person deciding the dispute shall, after service of summons on the parties concerned, in a manner prescribed by these rules, record a brief note of the evidence of the parties and witnesses who attend and upon the evidence so recorded, and after consideration of any documentary evidence produced by the parties, shall give a decision or award, as the case may be, in accordance with justice, equity and good conscience.

(b) The decision or award given shall be in writing and pronounced in open Court. If a party duly summoned fails to attend, the dispute may be decided ex parte. Ex parte decisions on awards may, on sufficient cause for non-attendance being shown, be set aside by the Registrar, and the dispute ordered to be re-taken on the file and disposed of:

1. Rule 30-A interested by Notification No. . CO 14 CLM 2013, dated 10-7-2013, w.e.f.10-7- 2013

2. Substituted for the word “Fee” by Notification No. CO 226 CLM 2014, dated 6-6-2015, w.e.f.6-6-2015

3. Sub-rule (2) substituted by Notification No. CO 14 CLM 2013, dated 10-7-2013, w.e.f.10-7- 2013

Provided that no application for setting aside an ex parte decision or award shall lie, unless made within thirty days from the date of such decision or award, then the party for whose non-attendance, such decision or award was made, had been duly served in the dispute or in other cases within thirty days from the date of knowledge of such decision or award having been made.

(5) 1[(a) When the Registrar,-

(i) decides the dispute himself under clause (a); or

(ii) transfer it for disposal to any person who has been invested by the State Government with the powers in that behalf under clause (b); or

(iii) refers a dispute for disposal to an Arbitrator under clause (c), of sub-section

(1) of Section 71, he shall have powers to require the party or parties concerned to deposit in advance such fee as may be determined by him.]

(b)The Registrar, Arbitrator, or other persons deciding a dispute under Section 71 shall have power to order the 2[fees and expenses] incurred in determining such dispute to be paid either out of the funds of the society or by such party or parties to the dispute, as he may think fit.

(c)The Registrar, may, in his discretion, remit the whole or any part of the fees collected under clause (a).

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(6) (a) Where one of the parties to the dispute is a minor or a person of unsound mind, the Register on being satisfied of the fact of the minority or unsoundness of mind, and after notice to the proposed guardian shall appoint a proper person to be guardian for such minor or person of unsound mind. The person so appointed may, for sufficient reasons, be permitted to retire or be removed and a new guardian appointed in his place.

(b) When a necessity arises for the appointment of a guardian to a minor or a person of unsound mind in a dispute before the Arbitrator appointed by the Registrar to decide the dispute, the file may be returned to the Registrar, for the appointment of a guardian.

(7) (a) When an award has been made, the person who made it should cause it to be filed in the office of the Registrar, together with any depositions and documents which have been taken and proved before him and notice of the filing shall be given to the parties.

(b) Where the decision or award involved the payment of money or delivery of grain and such payment is not made within one week or such further time as may be allowed by the Registrar, the Registrar may, on the

1. Clause (a) substituted by GSR 358, dated 29-11-1975, w.e.f.11-12-1975.

2. Substituted for the word “Expenses” by GSR 358, dated 29-11-1975, w.e.f.11-12-1975.

application of the decree-holder, issue a certificate, as provided for in Section 101 of the Act.

The certificate shall be in the following form:

Office of the Registrar of Co-operative Societies, Bangalore.

Dispute No….. Of……… Certified that a decree/decision /award as noted in the enclosure have been passed in the above dispute and the same has not been satisfied (or satisfied in part).

Seal of the Registrar. Signature of the Registrar.

1[(8) The following scale of batta be paid to witnesses summoned by the party at whose instance the witness is summoned, Witness will be divided into two classes.- Class I - Persons whose monthly income is Rs. 8,000 and above.

Class II - Persons whose monthly income is below Rs. 8,000.

SCALE OF BATTA Travelling allowance for journey to and fro from the place of hearing where the latter is in a different station from that of the witness.

Class of Witness Journey by Road Conveyance charges from Bus/Rail to place of the Subsistence allowance including expenses per day At Bangalore At other place within the State 75 hearing Class I One and half times the bus fare Four Rupees per kilometer Rs.350-00 Rs.200-00 Class II One and half times the bus fare Three Rupees per kilometer Rs.300-00 Rs.175-00

(9)Expenses under sub-clause (8) shall be treated as costs of the dispute and the authority deciding the dispute shall have full power to determine by whom or out of what property and to what extent such costs and all other costs incidental to the dispute are to be paid and to give all necessary directions for the purposes aforesaid. Where the authority deciding the dispute directs that any costs shall not follow the event, the authority shall state its reasons in writing.

Interest on cost at any rate not exceeding six per cent per annum may be awarded and such interest shall be added to the costs and shall be recoverable as such.

1. Sub-rule (8) substituted by Notification No. CO 223 CLM 2006, dated 29-11-2007, w.e.f.29- 11-2007

Where this provision sits

ActThe Karnataka Co-operative Societies Rules, 1960.
Section31
Marginal noteProcedure for reference and arbitration
JurisdictionState of Karnataka
StatusIn force as published by the source

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