Limitation Law

The law of limitation is applicable to dispute claims relating to cooperative societies in the state of Maharashtra. There is a specific section, section 92, incorporated in the Maharashtra Cooperative Societies Act 1960, for the purpose of limitation. A cooperative society is an institute that is run by the members, for the betterment of themselves. However, some lapses or negligence cannot be overlooked.

Therefore under the special enactment of 1960, special provision has been laid down under section 92. The clause referred to in section 92, sub clause A 2 (d) are only to be taken into account for the presentation before proper authority. It will not be out of the way to mention here that for remaining cause of action, commission or omission, the provisions of limitation Act, 1963, are made applicable. Therefore due precaution is necessary wile presenting dispute before the cooperative court and / or before any proper authority empowered by the statute of the said purpose. The period of limitation to be counted is as under:

>> When the dispute is related to recovery of money or interest due to the society by a member hereof, the period of limitation is six years which is to be computed from the date on which the concerned member dies or ceases to be a member of the society.

>> When the dispute is between the society or its committee, past committee any past or present officer or agent, servants or nominee heirs or legal representatives of a decreased officer, decreased agent or decreased servants of the society, or a member or a member or past member or nominee or heir or legal representatives of the society member and when the said dispute is related to any act or omission on the part of either party to the dispute, the law of limitation is six years. The person aggrieved must take due care to present his grievances by way of a dispute, before the cooperative court, under section 91, before the period of expiry of six months.

Note: If a member ceases to be a member and if he is re-admitted into the society, the re-admission cannot the lacuna that already took place. For the period in which the concerned member was no more a member of the society by virtue of his cessation for that period of cause of action the period of limitation is six months.

>> Many disputes in respect of any matter regarding the constitution, management of business of the society or if its business has been ordered to be wounded up under section 102 or in respect of which nominated committee pr an administrator has been appointed under section 77 (A) or 78, then in that cases, the period of limitation is again ix years, to be computed from the date of the order issued under section 102 section 77 (A) or 78 (A) by the concerned authority, officer or concerned registrar. So, in case of any cause of action under action 102, 77 (A) or 78 (A) the period of limitation is only six years An aggrieved person must be careful in challenging the action within six years from the date of issuing the said order.

>>When the dispute is in respect of an election of managing committee or office bearers of the society, then the election dispute has to be filed within a period of two months from the date of declaration of the result of the election.

The cooperative institute is nothing but a small democratic setup, where the members elect their representatives to form the managing committee. In cases of any grievances either by a member or a contesting candidate defeated or winner, he has the right to challenge the entire election before the cooperative court section 91, but within a period of two months from the date of declaration of the result of the said election by the electoral officer.

Note: At the time of drafting the election petition or any dispute under the foregoing section particularly sub-clause A and B of section 92, the disputant must plead in his dispute, about the period of limitation. He has to give cause of action and the date of presentation of the dispute. Unless these two requirements are not complied with, the court should not register the dispute.

Except as mentioned in sub-clause (A) and (D) of section 92 of the Maharasthra Cooperative Societies Act, 1960, all other problems or disputes maybe treated as dispute or suit, as if they have been filed in a city civil court and shall be covered and regulated by provisions of the Limitations Act, 1963.–

  • S_shahbazker

    In my society Co-Op Court gave verdict to refund the excess collected from members charging more then 10% on the maitenance amount from 2001 the law is also changed. On this basis the society did not pot any notice on the notice board t=asking members to claim refund if any within certain period. Now the member has come to his knowledge and claiemd the same refund with the same ruling after 4 years. WHa