Section 84 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 84 decides where a dispute inside a multi-State co-operative society goes: not to a civil court, but to arbitration. It lists the kinds of dispute covered, adds three kinds that are deemed to be covered, and says the arbitrator is appointed by the Central Registrar.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023. The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)); the date on which the principal Act itself began is not in the sources, because s.1(3) leaves it to a notification.
A dispute touching the constitution, management or business of a multi-State co-operative society, among members, between members and the society, between the society and its officers or employees, or between two such societies, "shall be referred to arbitration". The arbitrator is appointed by the Central Registrar. The Arbitration and Conciliation Act, 1996 applies unless this Act says otherwise. Section 84 itself was not amended in 2023, but s.94, as amended, now names it.
What section 84(1) covers
The sub-section opens with "Notwithstanding anything contained in any other law for the time being in force". It applies to "any dispute ... touching the constitution, management or business of a multi-state cooperative society". The dispute must arise in one of four ways:
| Clause | Between whom |
|---|---|
| (a) | Among members, past members and persons claiming through members, past members and deceased members |
| (b) | A member (past member, or a person claiming through a member, past member or deceased member) on one side and the society, its board, or any officer, agent or employee, or a liquidator, past or present, on the other |
| (c) | The society or its board and any past board, any officer, agent or employee, any past officer, past agent or past employee, or the heirs or legal representatives of a deceased officer, agent or employee |
| (d) | The society and another multi-State co-operative society, a society and the liquidator of another, or the liquidators of two societies |
Two kinds of dispute are carved out in brackets: "a dispute regarding disciplinary action taken by a multi-state cooperative society against its paid employee" and "an industrial dispute as defined in clause (k) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947)". Those do not go to arbitration under this section. The reader should check the current law for the corresponding provision of the Industrial Disputes Act, 1947.
Example. Meera is a member of the invented Kaveri Multi-State Thrift Society. She says the board refused to admit her nominee after her death. Her dispute is between a member's legal representative and the society's board, so it falls in clause (b) and is referred to arbitration. If instead a clerk of the society disputes a disciplinary penalty, the bracket takes it out of s.84(1). Where the route is unclear, a short review under legal dispute resolution can settle it before any step is taken.
Deemed disputes: section 84(2)
Sub-section (2) says that, for sub-section (1), these "shall be deemed to be disputes touching the constitution, management or business":
- a claim by the society for any debt or demand due to it from a member, or from the nominee, heirs or legal representatives of a deceased member, "whether such debt or demand be admitted or not";
- a claim by a surety against the principal debtor, where the society has recovered an amount from the surety because of the principal debtor's default, again whether admitted or not;
- "any dispute arising in connection with the election of any officer" of the society.
The first item matters most to credit societies: the society's own recovery claim against a defaulting member is sent through the same arbitration route, even if the member admits the debt. The third item links to the time limit in s.85(1)(c) of one month for election disputes, which is explained in our article on limitation for disputes referred to arbitration.
Who decides whether it is a covered dispute: section 84(3)
If a question arises whether a dispute is or is not a dispute touching the constitution, management or business of the society, "the decision thereon of the arbitrator shall be final and shall not be called in question in any court". So the arbitrator, not a court, decides that threshold question. The sub-section does not say what remedy, if any, lies elsewhere; the text is silent beyond the words quoted.
The arbitrator: section 84(4)
Once a dispute is referred under sub-section (1), it "shall be settled or decided by the arbitrator to be appointed by the Central Registrar". The parties do not choose the arbitrator under this Act; the appointment is the Central Registrar's. The sources do not describe any qualification for the arbitrator or any procedure for the appointment, and this article adds none.
The Arbitration and Conciliation Act, 1996: section 84(5)
"Save as otherwise provided under this Act", the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) apply to all arbitration under this Act, "as if the proceedings for arbitration were referred for settlement or decision under the provisions of the Arbitration and Conciliation Act, 1996". The words "save as otherwise provided" matter: the appointment of the arbitrator by the Central Registrar in sub-section (4) and the time limits in s.85 are examples where this Act speaks for itself. Readers should check the current law for the corresponding provisions of the Arbitration and Conciliation Act, 1996; for background see our posts on section 8 of the Arbitration and Conciliation Act, 1996 and arbitration, litigation and mediation compared. They are posts on that other Act, not explanations of this section.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 84 | Text as printed above | Not amended by the 2023 Act |
| Section 94 (opening paragraph) | Named "section 83 or" | After "section 83 or", the words "section 84 or" are inserted (section 33 of the 2023 Act) |
So a decision or order made on a s.84 reference is among those that s.94 now deals with for execution; see our article on execution of decisions and orders.
Need help with a co-operative society dispute?
If you are a member, officer or society facing a dispute that may fall under s.84, it helps to know early whether it is a covered dispute and what record to keep. Our team can review the facts and the bye-laws with you through legal dispute resolution support.
Key takeaways
- Section 84(1) sends disputes touching constitution, management or business to arbitration, in four kinds of relationship (members, member and society, society and its people, society and society).
- Disciplinary action against a paid employee and industrial disputes are carved out in brackets.
- Section 84(2) deems recovery claims against members, surety claims and election disputes to be covered disputes.
- The arbitrator decides whether a dispute is covered, and that decision is final under s.84(3).
- The Central Registrar appoints the arbitrator; the Arbitration and Conciliation Act, 1996 applies save as this Act provides.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 85: limitation for disputes referred to arbitration
- Section 85A: Co-operative Ombudsman, complaints and appeal
- Sections 94 and 95: execution of decisions and orders
Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.