Section 378ZO: Disputes
This section is for resolving disputes related to Producer Companies through conciliation or arbitration.
The section, clause by clause
What the section says
In plain terms
(1)Where any dispute relating to the formation, management or business of a Producer Company arises—
Disputes related to the formation, management, or business of a Producer Company must be settled by conciliation or arbitration under the Arbitration and Conciliation Act, 1996, and this includes claims for debts, surety claims, and claims related to supply of produce.
(1)(a)amongst Members, former Members or persons claiming to be Members or nominees of deceased Members; or
(1)(b)between a Member, former Member or a person claiming to be a Member, or nominee of deceased Member and the Producer Company, its Board of Directors, office-bearers, or liquidator, past or present; or
(1)(c)between the Producer Company or its Board, and any director, office-bearer or any former director, or the nominee, heir or legal representative of any deceased director of the Producer Company, such dispute shall be settled by conciliation or by arbitration as provided under the Arbitration and Conciliation Act, 1996 (26 of 1996) as if the parties to the dispute have consented in writing for determination of such disputes by conciliation or by arbitration and the provisions of the said Act shall apply accordingly.
explanationExplanation.—For the purposes of this section, a dispute shall include—
(1)(a)a claim for any debt or other amount due;
(1)(b)a claim by surety against the principal debtor, where the Producer Company has recovered from the surety amount in respect of any debtor or other amount due to it from the principal debtor as a result of the default of the principal debtor whether such debt or amount due be admitted or not;
(1)(c)a claim by Producer Company against a Member for failure to supply produce as required of him;
(1)(d)a claim by a Member against the Producer Company for not taking goods supplied by him.
(2)If any question arises whether the dispute relates to formation, management or business of the Producer Company, the question shall be referred to the arbitrator, whose decision thereon shall be final. PART XI MISCELLANEOUS PROVISIONS
If there's a question about whether a dispute is related to the formation, management, or business of the Producer Company, it will be referred to an arbitrator who will make a final decision.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.