In a recent ruling, the Calcutta High Court has determined that Consumer Forums lack the jurisdiction to adjudicate disputes between multi-state co-operative societies and their members, reports Verdictum. The verdict came in response to a complaint filed by a member of such a society, alleging non-disbursement of dues despite repayment of loans.
The complainant approached the District Consumer Disputes Redressal Forum seeking compensation for the alleged harassment and mental anguish caused by the society’s actions. Both the District Forum and the State Consumer Disputes Redressal Commission upheld the complainant’s claim for compensation.
However, the High Court highlighted that under the Multi-State Co-operative Societies Act, 2002, disputes concerning the constitution, management, or business of such societies must be resolved through arbitration, as stipulated in Section 84 of the Special Act.
Advocate representing the petitioner, argued that the specific provisions of the Special Act regarding dispute resolution were not duly considered by the State Forum. The Court noted that the remedy of arbitration provided under Section 84 of the Special Act is binding on all parties involved.
Consequently, the High Court ruled that both the District and State Consumer Disputes Redressal Forums had erred in law by entertaining the complaint without referring it to arbitration, as mandated by the Special Act. The Court set aside the orders of both forums, clarifying that the complainant could seek recourse through the appropriate legal channels.
The case, titled “The Secretary, E & NF Railway Junior Co-operative Credit Society Limited, Eastern Railway v. Sri Jyotish Chandra Sarkar & Anr,” was argued by duo of Advocates Kishore Mukherjee and Soumyajit Mukherjee on behalf of the petitioner.
