EXECUTION OF DECREES, ORDERS AND DECISIONSCentral

Section 96 of The Multi-State Co-operative Societies Act, 2002

(1)Where the arbitrator is satisfied that a party to any reference made to him under section 84 with intent to defeat or delay the execution of any decision that may be passed thereon is about to--
1. (a)dispose of the whole or any part of the property; or
2. (b)remove the whole or any part of the property from its existing precincts, the arbitrator may, unless adequate security is furnished, direct conditional attachment of the said property or such part thereof as he deems necessary.
(2)The attachment under sub-section (1) shall be executed by a civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such order.

Summary

Section 96 allows for attachment before award, which is a temporary legal freeze on property before a final decision is officially passed.
This power is exercised by an arbitrator during a dispute resolution referred to arbitration under Section 84 of the Act.
The arbitrator can order this attachment if they believe a party intends to delay or defeat the enforcement of the future decision.
It applies if a party is about to sell, transfer, or move their property outside of its current location.
The attachment order is executed by a competent civil court and has the same legal effect as if the court itself had issued it.

Practical examples

1Dev, a former employee of a multi-state housing co-operative, was facing an arbitration claim under Section 84 for two lakh rupees. The arbitrator, Mr. Sharma, discovered that Dev was rapidly putting his house up for sale to avoid paying if he lost. Under Section 96, Mr. Sharma ordered a conditional attachment on Dev's house. Dev could not sell the house while the arbitration was ongoing.

2In a dispute between two co-operative societies under Section 84, Society A learned that Society B was moving its valuable processing machinery out of the district to prevent its seizure. The arbitrator under Section 96 ordered a conditional attachment on the machinery, which was carried out by the local civil court, halting the relocation.

FAQ

1. What is attachment before award under Section 96 of The Multi-State Co-operative Societies Act, 2002?

Under Section 96 of The Multi-State Co-operative Societies Act, 2002, it is a legal measure where an arbitrator temporarily freezes or attaches a party's property before a final award is made to prevent them from selling or moving it to evade the future decision.

2. Under what conditions can an arbitrator order attachment under Section 96 of the MSCS Act, 2002?

Under Section 96 of the MSCS Act, 2002, an arbitrator can order attachment if they are satisfied that a party, with intent to defeat or delay the execution of any future decision, is about to dispose of or remove their property, unless they furnish adequate security.

3. Who executes the attachment order issued by an arbitrator under Section 96 of the 2002 co-operative law?

Under Section 96 of the 2002 co-operative law, the attachment order is executed by a civil court having jurisdiction, in the same manner as if the civil court itself had passed the order.

4. Can a party avoid an attachment before award under Section 96 of the co-operative societies Act?

Yes, under Section 96 of the co-operative societies Act, a party can avoid the attachment by providing adequate security to the satisfaction of the arbitrator.

Test yourself

Q1.Under Section 96 of The Multi-State Co-operative Societies Act, 2002, who has the authority to direct the conditional attachment of a party's property during a dispute?

Q2.Under Section 96 of the MSCS Act, 2002, what action must a party be about to take for an arbitrator to order a conditional attachment of their property?

Q3.Under Section 96 of the 2002 co-operative societies law, how is an arbitrator's conditional attachment order legally executed?

Q4.Under Section 96 of the Multi-State Co-operative Societies Act, 2002, how can a party prevent an arbitrator from executing a conditional attachment order on their property during a Section 84 dispute?

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