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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
SANJEEV PRAKASH SHARMA, ACJ., BALJINDER SINGH SANDHU
Adarsh Co-Operative Bank Limited, (Formerly Madhav Nagrik Sahakari Bank Limited) Through Its Authorized Officer – Appellant
Versus
Prem Singh Vaidya, S/o. Shri Navrang Singh – Respondent
| Table of Content |
|---|
| 1. legal basis for arbitration under cooperative society law (Para 1 , 2 , 3) |
| 2. respondent contends arbitration null and void (Para 4 , 5) |
| 3. arguments regarding limitations and statutory provisions (Para 6 , 7) |
| 4. details on arbitration procedure and statutory framework (Para 10 , 11 , 12) |
| 5. limitation periods for arbitration claims (Para 14 , 15 , 16) |
| 6. validity of statutory arbitration versus contractual arbitration (Para 18 , 19 , 20) |
| 7. court decisions supporting statutory arbitration principles (Para 21 , 22 , 23) |
| 8. critique of commercial court's decision and erroneous interpretations (Para 24 , 25) |
| 9. appeal allowed; original order set aside (Para 26 , 27) |
ORDER :
Baljinder Singh Sandhu, J.
1. The present appeal under Section 37 in The Arbitration And Conciliation Act, 1996 (hereinafter referred to as ‘Act of 1996’) has been preferred by the appellant Adarsh cooperative Bank limited (hereinafter referred to as ‘the Bank’) assailing the order dated 12.10.2023 passed by the commercial Court No.1, Jaipur Metropolitan-II, Jaipur by which the objection application under section 34 of the Act of 1996 filed by the respondent has been allowed and the award dated 11.12.201
Statutory arbitration under the Multi-State Cooperative Societies Act governs disputes between cooperatives and members, with a 6-year limitation period applying, overriding general limitation laws.
The court affirmed that statutory arbitration procedures were followed, and the appellants could not challenge the arbitrator's appointment after agreeing to arbitration in the loan agreement.
Arbitral award liable to be set aside under Section 34 for patent illegality where arbitrator assumes jurisdiction under Section 84 of Multi-State Cooperative Societies Act without proof of borrowers....
Multi-state co-operative banks have statutory option under RDB Act to use MSCS Act arbitration for debt recovery from members; SARFAESI enforcement proceedings do not oust it; arbitrator competent to....
Section 84 which falls under Chapter IX “Settlement of Disputes” of the Act, 2002 refers to reference of the disputes by the Central Registrar, Cooperative Societies with regard to the disputes touch....
Court clarified that initial appointment of an Arbitrator must derive authority from the Arbitration Act, rejecting jurisdiction under Section 8 and confirming that participation does not waive juris....
The Arbitrator's jurisdiction under the Kerala Cooperative Societies Act is not limited to express powers, allowing for broader application of authority to ensure justice.
The appointment of an arbitrator with potential bias due to their governmental role violates Section 12(5) of the Arbitration and Conciliation Act, necessitating an independent arbitrator.
The Micro, Small and Medium Enterprises Development Act has precedence over the Arbitration and Conciliation Act, allowing parties to reference disputes to the MSEFC despite existing arbitration agre....
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