Short Answer

Yes, a society can claim arbitration if an arbitration clause is included in the by-laws.

Detailed Explanation

Section 91 of the Gujarat Cooperative Societies Act, 1961 empowers cooperative societies to include arbitration clauses in their by-laws. This means that if the society's by-laws contain a provision for arbitration, the society can indeed claim arbitration as a legal remedy for disputes.

In practice, if a dispute arises within the society and the arbitration clause is invoked, the parties involved would need to follow the procedures outlined in the by-laws regarding arbitration. This typically involves appointing arbitrators, presenting their cases, and abiding by the arbitration award.

For example, let's say there is a disagreement between members of a cooperative society regarding the allocation of funds. If the by-laws include an arbitration clause, the parties can opt for arbitration to resolve the issue instead of going to court. This provides a quicker and potentially more cost-effective way of settling disputes.

Another scenario could involve a dispute between the society and a contractor over a construction project. If the by-laws specify arbitration as the method for resolving such disputes, both parties would need to adhere to the arbitration process outlined in the by-laws.

Overall, including an arbitration clause in the by-laws of a cooperative society can offer an efficient and structured way to resolve disputes internally without resorting to lengthy court proceedings.

References

• Section 91 of the Gujarat Cooperative Societies Act, 1961: Official PDF