Short Answer

Yes, disputes in a society functioning as a co-op bank are handled differently.

Detailed Explanation

Section 91 of the Gujarat Cooperative Societies Act, 1961 deals with disputes in cooperative societies. It states that disputes related to a cooperative society carrying on the business of banking shall be referred to the Registrar. This means that if a society functions as a co-op bank, any disputes arising within the society will be handled by the Registrar.

In practice, this provision ensures that disputes in cooperative societies operating as banks are resolved through the regulatory authority, the Registrar. This is to maintain the stability and integrity of the banking operations and to ensure compliance with banking regulations.

For example, if there is a dispute among the members of a cooperative society that also functions as a co-op bank regarding the allocation of profits or the election of office bearers, such disputes will be referred to the Registrar for resolution. The Registrar will then investigate the matter, hear all parties involved, and make a decision based on the provisions of the Act.

Another scenario could involve a conflict between the management and the members regarding the loan policies or interest rates of the co-op bank. In such cases, the Registrar will intervene to mediate and resolve the dispute in accordance with the Gujarat Cooperative Societies Act.

In summary, when a society operates as a co-op bank, disputes are handled differently as they are referred to the Registrar for resolution to ensure proper governance and compliance with banking regulations.

References

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