Case Law Analysis
|Bombay High Court
Section 84 Multi-State Co-operative Societies Act Mandates Arbitration Before Auction of Mortgaged Goods | Bombay HC Stays Auction Pending Adjudication : High Court of Judicature at Bombay, Nagpur Bench
The Bombay High Court, Nagpur Bench, ruled that under Section 84 of the Multi-State Co-operative Societies Act, 2002, a co-operative society must initiate arbitration before auctioning mortgaged collateral to recover defaulted loans. The court stayed the auction notice issued by Buldhana Urban Co-operative Credit Society, emphasizing procedural compliance and protecting borrowers' rights against unilateral enforcement actions.