Law:

Section:

(a) Co-operative Societies Act (VII of 1925)--- ----S. 54---Statutory arbitration---Referring a dispute to arbitration under S.54 of the Cooperative Societies Act, 1925---Principles---Not each and every nature of dispute between the persons specified under S.54 of the Cooperative Societies Act, 1925, is referable to the statutory arbitration--­Dispute must be "a dispute touching the business of the society" the business which a particular society does, is to be ascertained with reference to the object of society, as may be specified in its Bye-laws. (b) Co-operative Societies Act (VII of 1925)--- ----S. 54---Word 'touching' used as a prefix to the words 'the business'--­Connotation---Word 'touching" includes any matter which relates to concerns or affects the business of the Society---Controversy referred to arbitration under S.54 of the Cooperative Societies Act, 1925, must have nexus with the business of the Society and be one relatable to the object of the Society. (c) Cooperative Societies Act (VII of 1925)--- ----S. 70-A & 54---Bar of jurisdiction of Civil Court---Scope---Jurisdiction of Civil Court and other Authority is ousted under S.70-A of the Cooperative Societies Act, 1925, only in cases where such statutory functionaries have jurisdiction to entertain, adjudicate, dispose of or determine any matter, under the Cooperative Societies Act, 1925 and Rules or Bye-laws framed thereunder---Principles. (d) Cooperative Societies Act (VII of 1925)--- ----Ss. 54 & 70-A---Civil Procedure Code (V of 1908), O.VII, R.11--­Appeal against interim order---Reference to arbitrator---Dispute touching business of Cooperative Society--- -Parties were partners of a dissolved firm which had formed the disputed Housing Society ---Plaintiff claimed title of the suit property pursuant to settlement between the partners of a dissolved firm­--Contention of the appellants was that the plaint was wrongly rejected by Single Judge of High Court and the matter could not be referred to the arbitrator under the provisions of S.54 of the Cooperative Societies Act, 1925---Validity---Such dispute between the partners inter se who were members of the Society was not a dispute…

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