196T ‘LOW SHLLAIOOS. ““GALEWENAAOOO SVPNNd SHL ¥aGNN SASVO NOLLVE.LIGUY “Io a ‘IwSOdSId HOS SANITAGIND :GUIDELINES FOR DISPOSAL OF ARBITRATION CASES UNDERTHE PUNJAB COOPERATIVE SOCIETIES ACT, 1961 Arbitration is a settlement of dispute by the decision of a person ns chosen and accepted as Judges or Umpires, The need lure of adhereite to procedures gyre Wits est fea of strict supervision and mutual control. Careful ‘selection of members, regular insistence on security and active pressure on suretios and other members or detauiters should reduc te near such egal mesuretaa minimum, Slacks i in ay ofthese coon iaves the trouble of atendance i t Cunt and the burden of ores : ‘The objective of Cooperative Societies is to improve the economic Condition of the members by inculcating among them the habits of thrift, self and mutual help, This object would be defeated i the disputes regarding the ing expenses and delay jation and in the resultant usually caused by it. The Punjab Cooperative lon §5) and the The Punjab Cooperative ‘made thereunder provide that all {othe Ragistrar who may decide een iene gnEEL Disputes to be referred for Arbitration (Section 55) ' 3.0 Any dispute touching the constitution, management ar the business or Revenue) shall have jurisdiction to entertain any suit or other ‘proceedings in respect of such a dispute. Furthermore section 82 {3) of the Punjab Cooperative Societias Act 1961 provides as under :- "Save as provided in this Act, no order, decision or award ‘made under this Act shall be questioned in any court on any ground whatsoever.” 4.0 According to Section SS (2) of the Act ibid, following be deemed 10 be disputes touching the constitution, management or the business of a cooperative society namely :- (@) 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; }) _actaim by a surety agains the principal debtor where the society or demand due to it from the principal debtor as a result of the dofault of the principal debtor, whether such debt or demand is admitted or not; ©) any dispute arising in connection with the election of any officer of the society - 5.0 Many question ari her a dispute referred to the Regi Under this seqtion is or not a dispute rayaryenoutnapetcton SL - Reference of Dispute (Rule 51) a) ww) ” section ($) of Section cordance with apply to the The following guidelines should be kept in view nce of arbitration should be prepared in the application ‘Appendi’F. (Annexura-2) Number of copies of the Appendix-F should be one more than the number of respondents in the dispute, ‘The copies of Appendix'F’ so prepared should be served upon respondents bythe arbitrator. ‘The applicant should fill inne column (i), Appendix’ (Annex-2) and also make it sure i are clear and distinct and sign the verification after filing the particulars required in the verification, Every reference for arbitration should include all contesting parties as respondents. Every reference of arbitration against a defaulter should include his 16 also. The suroty should be the member ol the socialy,because among the parties, under sub-section 1 of section 86 of the Punjab Cooperative Societies Act 1961, the surety is ‘not included as a party. He becomes a party as a member oniy. It is not legal to ask for arbitration subsequently against a surely, who was not includedin the original reference, nor itis prudent on any oocasion or for any reason to omit a surety on any ground whatsoever. Arbitratifn reference should state clearly the amount of principal claiied, amount of interest up to a special / specific.date, the 3- vi) vil) vii) x) x” x) rate al which fut Howover the aie, med and arbitration expenses. te should not be more than the agroed W the dispute relates to @ sum lent on the security of immovable property, the society should, while making a reference for arbitration {for redress against the hypottiecated property in terms of the ‘contract, in addition tothe particulars of the debtor and his sureties, attach an authenticated statement showing the particulars of property in question. ‘The applicant must nat no reference on th subject matter and between the same partios, has been adjudicated in the past . The applicant should also certify that the dispute is covered under Section $5 of the Punjab Cooperative Societies Act, 1961. Every reference for a cooperative society, must include the attested resolution of that society, vide which the representative authorised to relerthe dispute for atbi society allow an officer thereof, to raise the reference of dispute, he should so state explicitly in the reference. In support of the claim, documents as required under pare List of the property pledged in favour of the applicant or intended to be got attached before award to make good the sums, should also be attached With the reference.l need be, the applicant should move a separate application for attachment of property betore award under Section 65 of the Punjab Cooperative Societies Act, 1961 ne xi) xiv) xv) ‘The applicant should undertake to pay arbitration fee 2s may be specified by the Registrar under Fule $2 of the Punjab Conperative Societies Rules, 1963 given below in para 6.0. The lee so specified by RCS should be deposited in advance. Every society should open a seperate account of arbitration expenses. The arbitration expenses should ve shown seperately alongwith legal expenses and not in miscellaneous expenses. ‘The applicant should certity that the record relating to the dispute in his/her safe custody. ‘The applicant should give latest postal address ofall respondents to facilitate their summoning by the arbitrator. ‘The Registrar shall have power to 1g a dispute under sub-section (1) of ‘Arbitration Fee-(Rule 5: require the person section 66 to depos! the Registrar keeping in view the nature o the case for deciding the dispute. “The Registrar may, in such eases as he thinks fit: order the payment he dispute referred to No fee shall be payable to an arbitrat him is decided finally. egistrar, may in his discretion, remut the whole or any part of the fee collected under sub- . “The Registrar shall issue a receipt an account of arbitration foe to the claimant party, The receipt shal be in the proforma given as Annegure'3. The Registrar shall maintain 2 register showing account of = arbitration fee in the proforma given in Annexure-4. 5Who can make a Referenc f Dispute? Any party 10a dispute may make a reference of dispute to the Registrar. 70 (i) (i) In cases where it is difficult to pursuade a Managing Committee to ask for action against one of its members. ‘any one member may make a reference when a sum disputed is due from a member of committee: (i) A single member of a society may maka a reference for arbitration against the committes as representing his society, i he considers that the society has suffered injustice. Who can be an Arbitrator 7 8.0 The object of arbitration procedure isto attain simplicity and ‘equity rather than technical law. The most valuable arbitrator san upright man, who would often settle the queation on the ‘spot to the satisfaction of the contesting parties. 9.0 Reference of disputes to arbitration (Section 56) SECTION - 56 (1) The Registrar may, on receipt of the reference of dispute under section 55.:- (@) decide the dispute himselt; or {b) _transtarit for dispossi to any person who has been invested by the Government with powers in tha! behalf; or © 2) (2) The Registrar or any other person to whom a dispute is cision under this Section may, pending the dispute, make su he may deem necessary in the inte 40.0. The Registrar to whom the arbitration case is referred must ensure that the arbitration file is complete and Appendix "is duly attached ‘alongwith the required number of copies of Appendix 'F' and: documents before receiving the arbitration case for adjudicat 11.0 The Registrar to whom the arbitration case is referred should in no case appoint the Administrator, fquidator or an employee of the cooperative sociaty as an arbitrator in the case. 12.0 With @ view to expedite disposal of arbitration proceedings, lest they are unnecessarily prolonged over several years defeating the vary object of arbitration, it is necessary that whenever the Registrar receives an arbitration reference, he must either decide the case himself within three months ofthe receipt ofthe reference or within a period of 14 days from the receipt of the reference, ne ‘must appoint an arbitrator who must give his award within three ‘months. 13.0 Norms for appointment of an Arbitrator ‘The Registrar to whom arbitration case is referred should appoint the arbitrator according fo the norms fixed by RCS vide his office {etter No. ROS/EAP/Court Gase/338-A dated 29.12.1999 (Annexure -5). However, before appointment ofan arbitrator, Registrar should satisty himself and pass a specific ord under section 55. of the Act ibid. 14.0 Powers of Civl Court (Section-83) : 7Procedure, 1908 ist Of 1908), in respect of the following ‘matter namely :- 8) summoning and enforcing the attendance of any person and examining him on oath; b) requiring the discovery and production of any document; ©} proof of facts by atfidavits; and d) issuing commissions for examination of witnesses, vit, any officer appointed by the he arbitrator or any other person deciding a dispute and the Liquidator, as the case may be, may administer the oath to the daponent. Amongst others, summoning and enforcing the atlendance of any person and requiring the discovery and production of any document are matters regarding which the powers of the , Civil Procedure 1e Court may compel the attendance summonses have been issued at purpose may (a) issu warrant for his arr jach and sell his property; span him not exceeding five hundred rupees: (6) order him to fumish security for his appearance and in 8 fo evidence or to produce document. Under rule 6 thereof, any person may be summoned to produce a document, witli being summoned to give avidence; and that person may cause such document Communication of date, time and place of hearing (Rule 53) 15.0. In an arbitration proceedings, the Ragistrar or the arbitrator, as the case may be, shall communicate the date, time and place ot hearing the dispute to all the parties concerned. 16.0 Mode of Service of Summons (Rule 74) (1) Every summon issued under the Act shall be in writing, duly authenticated by tha sealif any, of he officer by whom ‘summoned to appear before the said officer at a stated time, date ‘and place and shall specity whether his attendance is required for the purpose of giving evidence, or to produce a document or for both purposes: and any particular document the production of which is required, shall be described in the summons with reasonable accuracy. ° (2) Any person may ba summoned to produce a document, without being summoned to give evidence, and any person summoned merely tg produce document shall be deemed to have complied with the summons if he causes such document to be produced, ingtead of attending personally to produce the same.3) 6 © ‘The service of summons under the Act or any person may be effected in any of the following ways:- a) by giving or tendering it to such person or ») ° itone of the means aforesaid is available, by affixing it fat some conspicuous part of his last known place of abode or business. the serving officer delivers or tenders copy of the summons. jelendant personally or to an agent or other person on his he shall require the signature of the person to whom the ‘copy is so delivered or tendered to an acknowledgement of service ‘endorsed on the original summons. The serving officer shail in all cases in which the summons has been served under sub-rule (4) endorse or annex or cause to be endorsed or annexed, on orto the original summons a return stating the time and the manner in which the summons was served and the name and address of the person, if any, identifying the person served and witnessing the delivery or tender of the summons, Where the party tobe summoned is a public officer oris the servant ‘of company er loca! authority or any institution the officer issuing the summons appears that summons may be most send it by registered post prepaid for service on the party to be summoned to the head of the clfce in which he is employed tagether with the copy tobe served endorsed on the original summons, 10 Summons be an employee or a member or an officer of the claimant party. contesting parties cannot hod as discussed above, nt party to get the notice ‘spapers, preferably in local language and in the fortnight magazine "Punjab Cooperation’. Power to appoint guardian for minors etc (Rule 54) 22.0 The Registrar or the Arbitrator, as the case may be, shall have ‘ntrmity, fs incapable of protecting his intrest. 17.0 Hearing of Disputes (Rule 55) The Registrar ot the Arbitrator, as the case may bo, shal her the Parlies and witnesses who altend and record he evidonce. On the basis of such evidence and ator consideration o any documentary evidence that may be produced by either party, he shall ge a decision or eward, asthe case may be, in accordance wih justice, equity and good conscience. The decision or award shall be reduced 10 writing, pronounced fo the parties and fled in the office of the Registrar. Inthe absence of any party duly summoned to attend and served, the dispute may be decided ex-parte. ~ (Notice of the arbitrator's appointment is usually sent from the office of Registrar / DR/ AR by post or as per ger. Arbitrators are final judges not only of all ‘questions of Jaw, which ‘ourse of proceedings before them. They 70 required fo make a decison/an award, deciding thew i “ (vi) The arbitrator should afford {vil The arbitrator should require fromthe com reasons for a decision’ n conscience. ‘The duties of an arbitrator are judicial. The Evidence Act {vide section 1) does not apply to proceedings before him. Though he should endeavour to follow the gene’ ‘admitting evidence, he #s not required to comply st ‘with them and failure to conform strictly with the provisions: of the Evidence Act is not a valid objection to the award, copy of Appendix ‘F* The arbitrator should serve (Annex-2) appended in the a receipt to each of the respondents. “The arbitrator should hear all the evidence in the presence cof all contesting parties. He should be careful not to ‘examine’a party or witness except in the presence of all the contesting parties. ‘The aibitrator should make the proper record of proceedings ‘ofeach and every date of hearing and record the attendance of all the contesting parties, if present, in the P' ings. ofthe arbitration file. It would be better if signat impressions of contestants are obtained on the ar proceedings. the contesting parties, the opportunity of cross-examination and also record this fact in proceedings of the case and in his eward /docision as the case may be. parties to lay before him all the evidence to support or contradict their cleims. The Arbitrator should attach the attested photo copies of such avidences in the arbitration file. He should discuss the claims and related evicence in is award ¢ 1 ee eo) ®) i) i) decision so that consequence of a related thereto, apr ion proceedings and evidence, to be a natural Many party keeps back its evidence or fails to attend when called upon, the arbitrator may proceed ex-parte. However he should warn the c ing parties in the body of the ‘summons and during arbitration proceedings that the failure to attend hearing of arbitration case will fead to ex-parte proceedings. The arbitrator must ensure that service of ‘An arbitratar should not decide matters not referred to him and he should be careful enough to decide all that is referred to him, contesting parties, whenever possible. ‘An award a decision cannot be given against a deceased person. The award/ a decision in respect of the sum due {rom him should be given against his legal representatives, as such and notin thir porsoral capacity. a person who is a party 1 a dispute dias during the course of arbitration proceedings, the arbitrator should cause to bring his/her legal representatives on record as the contesting parties. ‘The concerned party should apply in wing tothe Registrar for bringing the legal representative (s) of a deceased contestant on record. Costto be allowed in the awardidecision should be the cost incurred by the parties to the arbi for getting the dispute decided and the cost to be incurred in taking further 13proceedings are not 1o be taken into consideration. The arbitrator is not to see that the parties in the arbtration will tile appeal, revision or wit petition. All these matters are subsequent to the award/decision and not for setting the dispute by an award/decision. (xi) The arbitrator must decide the arbitration case and make ‘an award/decision within three months of the receipt of the ‘case. He shall endeavour to make it sure that arbitration procedure is not abused by any of the contesting parties. 10 the dispute by resorting to delaying tactics. (xiv) The arbitrator should compulsorily communicate the Contesting parties, if he has passed an ex-parte award and record this fact in his award. (1) The award / decision shall be filed by the arbitrator inthe ‘office of the Registrar, by whom he was appointed as an arbitrator. (ev) The arbitrator should obtain the signatures / thumb impressions of he contesting parties a he tine of announcement of award! decision in the proceedings of arbitration file and should also ‘ecard this fact in his award ‘decision. (xvii) The award/decision shall be filed by the arbitrator in the office of Registrar by whom the arbitrator was nominated, His duties . The award, subject to a decision in ‘an appeal by the Re; jovernment, is final and conclusive between the parties. It need not be stamped. (xvii The general reference to an arbitrator gives him an oxolusive jurisdiction to deal with the costs of the suivarbitration and he ‘may direet that bY whom and in what manner costs shail be paid. {xix} The Registrar or the appeinting authority of an arbitrator 14 should not receive the arbitra after passing of an snd unless he ensures that the contesting have been informed of the ex- parte award by Arbitrator by registered A.D. post. (0%) An Arbitrator cannot be called as a witttess and examined as to his reasons or as to matters, which influenced or induced ‘him to arcve at his conclusions. He may, however, be called ‘88 a witness to prove admissions by the parties and to prove tis own misconduct Cost of Arbitration (Rule 56) 18.0 The arbiteator or the Registrar, as the case may be, shail have the powor to order the expenses of determining a dispute or the costs of either party to be borne by such parly or parties tothe dispute as he may think fit, Maintainance of records of arbitration (Rules 87) 19.0 {1) The record of arbitration proceeding shall be kept in stich place and in such manner as the Registrar may direct (Annexure: and Annexure 9) (2) A copy of the decisin or award shall, on application, be i arty by the Registrar as soon as may be possible than 15 days on payment: these nul 1e foes specitiod ‘concerned to submit the report on the performas appended ‘as Annexure 6 and Annexure 7. 20.0 SECTION - 63 Execution of certain decisions, awards(a) woh o) Rule 72: a on a certiticate signed by the Registrar or any person author! is of a civil Court, and shall be executed in the same manner as dectee of such Court; or be executed by the Registrar or any other subordin behalf, by attachment operative society a ‘award has been obtained or passed; or bbe executed according to the law for the time being in * force for the recovery of a rs of land revenue: the Collector and shall be accompanied by a certificate signed by the Registrar or any person authorised by Procedure in execution of award etc. : Any decre holder requiring the provisions of Every such application shall be made by the Registrar and shall be signed by The decree holder may indicate whet (On receipt of such application the recovery officer shatl verily the correctness and genuineness of the particviars set forth in the application with the records, if any in the 16 office of the Registrar and prepare a damand notice in writing in duplicate in the form specified by rhe Registrar, setting forth the name and address of the detaultar ang the amount due and forward it to a Sale Officer. Unless the decree-holder has expressed @ desire that proceed in particular order as laid down in sub-rule (2) execution shall ordinarily be taken in the following mannet () Movable property of the defaulter shall be is shall not t proceaded le (ii) Mf there is no movable property, or if the sale-proceeds of the movable property or properties attached and sold Il the demand of the decrae- immovable property mortgaged to the dacree- oF other immovable property belonging to the applicant (Name of Individual) (tame of Coop. Society) vis Name ot Debtor is) (Name of Individual) (Name of Coop. Society) (Name 38 wt0 (Specie dats) Pineipal Amount Arbitration oxpances Total {_____tName of Coop. Society) through _— icant on behalt of Coop. Sociely), jon under Section 56 ibid and costs may kindly be decreed to accrue till final payment of disputed amount 2, Anyother reliel demanded may be mentioned here ifnot covered (Signature and address al applicant) NOTE: 1, Score out words which are not applicable, 2. The application on bahalt of a society should be supported by an 29 atlested copy of resolution authorising him to apply. intended to be got attached in also be attached with the reference.Annexure-2 APPENDIX ~'F* Inthe court of reference No_________AB (add deserintion anc address) —— _ Applicant (s) Varsus/Against C10 (add description and address)_—__—__—__——_————— Respondent(s) « ‘The above named applicants State/s as follows : {) Description of the dispute. 1) action in briet. (id Description of the relief claimed. (iv) List ef documents to be relied upon. Place (Signature of the party) Date VERIFICATION Verified that the contents are true to the best of my/our know! believed to be true upon the information received. Place (Signature of the party) Date . 40 ige and paras. are * Annexure-3 Receipt No. Reseivedtrom the sumof Rupees incashiby cheque on account of arbitration fee in respect of (Name (s) of claimant party/parties) Versus Name (s) of Respondent party/parties) {Signatua and designation alongwith office seal) a”Register showing account of arbitration fee Annoxure-5 B.TRA SAE mg /aae BH/398- first 29.12.95 8 afew, nia Heret, Cre, ‘Seah 2: Rya agas afameo, Gu afemewra, motew afarcars nor ware, tas feta a) fen arent warfame 3 rues 931 we vss: fen vers & Uae 4, tie ct ret an 3/322 fat 4.2294 nf SRR /MER/aae OF 722 first 10.11.94 at ee ee ae 8 Ae varfennt & fore’ maat wren fea atar fara Ht Qu sfrmeeat es faa afreret wre Tet arn wad vifear feta feo gaat Goer faror st fa ufost foawas cant ot de § Aue ct Ba 3 On 3 feo was Guas fea aren ater faror mt far rant ant F AeA MS fourge Bet ferar S wena /aanecint § Io fet wore wifes fs Te 1 adhe 1.00 BY gue Fx Cur TaN) 2 mofer sfareos 100 By gud Fey fis Be Me Se . OARS Tay) * * 3 Srafpreas 3.00 BY au F Cus oR aan) wat, eta simmers ah ior, datarqisy ow Statement showing progress of Arbitration proceedings (Perlonwise) ‘Annexure-6 Statement showing progress of Arbitration proceeding gC iaiaae aR No. . Sis At ine Faceived Below 3 | Between S| eetwoen 6] Between] Above S peas] Saree | com | comme [ome aed] “Stos"| “teos ees | eae rene [Peae| soos oF ee ae ep ee | Tanccite ond teem SL ee ae er emer] Tes] Te | sew ramats eh, [meie| geoe 30) 5 cil) 5 Gi) sm | sé Swi) € =o oe Fonene7 2) Pa erred ‘Wo. of arbivation cases at the begining ofthe month ‘Deslded dung the mont Fanon [Penal none | Pci Ponapar | Peel bee] Pave incon |Peeeecee te | abore | aq | “oon | ser 10200" to| above row [ceca | son00/ raw | scoear | 30000) 7 z sa | _s@ | sm | sm +0) cs Balance ae oodol erent Pinagal onow | Pincipabataen] _Porpal above ‘cone T0008 a0000-] 0000 ml Remares 50 zoe =m = L‘Annexure-8 Form of Register to be maintained in the office of Assistant Registrar _ Cooperative Societies for the maintainance of record about Arbitration proceedings under Rule-57 (1) Name of Ciftte spute Annexure:9 No. RCS/E&T/SD/CL-49/6986- Dated 11.12.2000 From: Registrar, Cooperative Societies, Punjab, Chandigarh e 1. AllJoint Registrars, Cooperative Societies, Punjab (Field) 2 AllDeputy Registrars, ‘Cooperative Societies, Punjab (Field) 3. AllAssistant Registrars Cooperative Societies, Punjab (Fleld) ‘Subject : Maintenance of record pertaining to Arbitration proceedings. Ithas been observed that due to the continuing nature of arbitration proceedings under section 55/56 of the Punjab Cooperative Societies ‘Act, 1961 for recovery of loans advanced to members of Coopertai record relating to these proceedi Societies, field offices. ‘Such record, Therefore, it has been felt necessary to issue follow under Rule (45) read with tule 67 (1) of the Punjab Coop 1s Rule 1963, for maintenance of record of arbitration proceedings - 1. Arbitration cases, in which full recovery has been effected betore passing an award, should be treated as withdrawn. The record of such cases should be disposed of immediately. 2. Incases whete ful recovery is effected after passing an award.the record should be preserved for a minimum period of three years from the date of recovery. 3+ Arbilation cases in which partial recovery has been effected or no recovery has been effected : a7ro i ‘These cases include + (a) Appeals’ (b) Fs Election i potions (¢) final orders in alt above cas mpliance ot il fexecutin of inal orders. tr'tnege cases the record should be preserved 1 & mNTEN period of three years trom the date on which fl ‘compliance ofthe final orders has been made. ars rinal Cases In cases where ctiina proveeaings $F 88% | orregistared, the record shouldbe preserva for 3 i im period of three years fom the date on which full eompvanee final orders has been made. j] & wtPtonn High Court and SLP in Supreme Court |) ave preferred in Supreme Court of India he record: fora minimum period of three years from the! || ofthe final orders has been made. 6, Any other Writin Civil GourtiAppeals nt Higher Courts ‘Actibid orin Givil Courts, the record should be preserved for a minimum period of three years fro tho date on which fil compliance ofthe fina! orders has been made, sd Registrar, Cooperative Societies, Punjab Chandigarh A Annexure-10 APPLICATION FOR EXECUTION OF AWARD/DECISION OR ORDER UNDER SECTIONS 56, 56, 62, 68 OR 69 OF THE PUNJAB CO-OPERATIVE SOCIETIES ACT, 1961. INTHE COURT OF 1 awaridacisic execution of the award herein below set econ (One award Faprest ar —Pravoos Wich compate paid decison ‘quatmant apoteaion heading ose aN fnnde, ey with rest = rained pont ann of tar oie gated tony Agsint wor Me 098 Tobe whien assistance ‘orcad rected {declare ihat what hae been stated herein is tue to the best of my knowiedte and belie. . Sd ‘Awara/Decision or Order Holder * Date. day ol, {When attachement and sale of immovable property is sought) 19 Description and specttication of property =" ‘The undivided share of the judgement debter in a house/land situated in the village. value Rs. and bounded as ) 49far as | have been able to ascertain the interest of the defendent in the property therein specified, . Sa Award Decision! Olrder Holder Dated,