Short Answer

Arbitration is allowed in society disputes as per Section 91 of the Gujarat Cooperative Societies Act, 1961.

Detailed Explanation

Section 91 of the Gujarat Cooperative Societies Act, 1961 states that any dispute arising between members, past members, or persons claiming through members or past members of a cooperative society can be referred to arbitration. This means that parties involved in society disputes have the option to resolve their issues through arbitration instead of approaching cooperative courts.

In practice, arbitration provides a quicker and more cost-effective alternative to resolving disputes compared to traditional court proceedings. Parties can choose their arbitrator, agree on the process, and have more control over the resolution of their conflicts. This provision encourages amicable settlements and reduces the burden on the cooperative court system.

Real-world Scenarios

• In a housing cooperative society, members have a disagreement regarding the maintenance charges. Instead of going to court, they decide to opt for arbitration to resolve the issue efficiently.

• A dispute arises between the management committee and members of a cooperative credit society regarding loan policies. They choose arbitration to reach a mutually acceptable solution without lengthy legal battles.

Reference

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