MSCS Act Arbitral Awards Executable Under Act After 2023 Amendment, Not Arbitration Law: Madras High Court

The Madras High Court has upheld execution proceedings initiated by a Sales Officer appointed by the Central Registrar to enforce an arbitral award passed under the Multi-State Co-operative Societies Act, 2002, holding that where the Act itself provides the procedure for execution, the Arbitration and Conciliation Act, 1996, does not govern the process.

Justice P.B. Balaji dismissed a civil revision petition filed by T.K. Kares, the judgment-debtor, who had challenged the execution proceedings initiated in favour of The Repatriates Co-operative Finance and Development Bank Limited (REPCO Bank).

The court observed, "Section 84(5) clearly opens with a rider that the provisions of the Arbitration and Conciliation Act would apply, only if not otherwise provided under this Act. When Section 94 clearly provides for the manner of execution of decisions or orders made under the Act, including Section 84, with the amendment coming into effect on 03.08.2023, I am unable to see any merit in the contention put forth by the learned counsel fro the petitioner that only the provisions in the Arbitration and Conciliation Act would apply and not the provisions of the Multi-State Cooperative Societies Act, 2002."

The dispute arose after REPCO Bank initiated execution proceedings to enforce an arbitral award passed on November 28, 2025. While the arbitration had commenced in October 2021, the award was delivered after the 2023 amendment, which brought such awards within the execution framework under the Multi-State Co-operative Societies Act.

Kares argued that because the arbitration had begun before the amendment came into force, the award could be executed only under the Arbitration and Conciliation Act.

He also contended that the execution proceedings were premature and that the Chennai-based Sales Officer lacked jurisdiction as he lived and owned property at Thirukazhukundram.

REPCO Bank countered that the relevant date was when the award was passed, not when the arbitration commenced.

It submitted that since the award was delivered after the amendment took effect, the amended execution provisions applied. The Bank also pointed to the Central Registrar's order authorising a Sales Officer to execute the award.

Agreeing with the Bank, the court held that the Arbitration and Conciliation Act applies to arbitrations under the Multi-State Co-operative Societies Act only where the latter does not provide otherwise.

Since the amended Act specifically lays down how awards under Section 84 are to be executed, the court rejected Kares' contention that execution could proceed only under the Arbitration and Conciliation Act.

The court also rejected the challenge to the sales officer's jurisdiction. It held that the Central Registrar was empowered to authorise a person to execute an award under the Act and found no violation of Rule 37 of the Multi-State Co-operative Societies Rules, 2002.

While dismissing the petition, the court granted Kares liberty to seek review before the Central Registrar within three months of receiving the order, subject to the statutory requirement of depositing 50% of the recoverable dues.

For Petitioner: Advocate S.D. Venkateswaran

For Respondent No. 1 (REPCO Bank): Advocate A. Ilangovan.