Section 85 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 85 sets the time within which a dispute under s.84 must be brought. For most disputes between a society and its members, officers or employees it is six years from the act or omission; for a dispute about the election of an officer it is one month from the declaration of the result. The arbitrator may still admit a late dispute for sufficient cause.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, which came into force on 3 August 2023 by notification S.O. 3493(E). Section 85 was not amended in 2023.
Section 85 applies "Notwithstanding anything contained in the Limitation Act, 1963, but subject to the specific provisions made in this Act". A recovery claim against a member runs from the date the member dies or ceases to be a member. Disputes about acts or omissions run six years from the act or omission. An election dispute must be brought within one month of the declaration of the result. All other disputes follow the Limitation Act, 1963 as if the arbitrator were a civil court.
Section 85(1): three fixed periods
The sub-section applies to "the period of limitation in the case of a dispute referred to arbitration" (that is, a dispute referred under s.84; see our article on reference of disputes to arbitration).
| Clause | Kind of dispute | Period as printed |
|---|---|---|
| (a) | Recovery of any sum, including interest, due to the society by a member | Computed "from the date on which such member dies or ceases to be a member of the society" |
| (b) | Any act or omission of a party in clause (b), (c) or (d) of s.84(1), save as clause (c) provides | "six years from the date on which the act or omission, with reference to which the dispute arose, took place" |
| (c) | A dispute "in respect of an election of an officer" | "one month from the date of the declaration of the result of the election" |
Clause (a) gives a starting date but does not itself print a number of years; the text is silent on the length and this article does not supply one.
Clause (b) refers to disputes between a member and the society or its people (s.84(1)(b)), between the society or board and officers or employees (s.84(1)(c)), and between societies (s.84(1)(d)). Disputes among members only, under s.84(1)(a), are not named in clause (b); the sub-section does not say which period governs them, and sub-section (2) below is the nearest provision.
Example. The invented Himalaya Multi-State Credit Society resolves on 10 April to cancel an officer's honorarium. The officer disputes the resolution. The act took place on 10 April, so the six-year period runs from that date. Separately, if the result of the election of a vice-chairperson is declared on 5 June, a dispute about that election must be brought within one month of 5 June. Dates like these should be checked early with legal dispute resolution advice.
Section 85(2): everything else follows the Limitation Act, 1963
"The period of limitation in the case of any dispute, except those mentioned in sub-section (1), which are required to be referred to arbitration shall be regulated by the provisions of the Limitation Act, 1963 (36 of 1963), as if the dispute were a suit and the arbitrator a civil court." So where sub-section (1) is silent, the ordinary limitation rules apply, treating the arbitrator as the court. Readers should check the current law for the corresponding provisions of the Limitation Act, 1963. For general background see our posts on limitation periods for suits and appeals and condonation of delay under the Limitation Act, 1963; they are about that other Act.
Section 85(3): a late dispute may still be admitted
"Notwithstanding anything contained in sub-sections (1) and (2), the arbitrator may admit a dispute after the expiry of the period of limitation, if the applicant satisfies the arbitrator that he had sufficient cause for not referring the dispute within such period." Three points follow from the words:
- The power belongs to the arbitrator.
- The burden is on the applicant, who must satisfy the arbitrator.
- The test is "sufficient cause" for not referring the dispute in time. The Act does not define the expression, and this article adds no examples of what counts.
The sub-section is worded to cover both sub-section (1) and sub-section (2), so it reaches the one-month election period as well, as printed.
How s.85 fits with the rest of the Act
Section 84(2)(c) deems a dispute connected with the election of any officer to be a covered dispute, and s.85(1)(c) then gives it the shortest period in the Chapter. The 2023 Amendment Act separately substituted s.45 and inserted ss.45A to 45L on the Co-operative Election Authority and elections; this article does not go into them. Section 85(1)(c) was not changed in 2023, and its wording is as printed above.
Where a society recovers a debt from a member, the relevant start date is the member's death or ceasing to be a member, which is why the society's records of membership and exit dates matter. For the arbitrator's appointment see s.84(4).
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 85 | As printed above | Not amended by the 2023 Act |
Need help with a limitation question?
Counting limitation correctly, from the right date and under the right clause, can decide whether a dispute is heard at all. If you are unsure which period applies to your matter, our team can read the facts and the bye-laws with you under legal dispute resolution.
Key takeaways
- Section 85(1) applies despite the Limitation Act, 1963, but subject to specific provisions of the Act.
- Recovery claims against a member are computed from the member's death or ceasing to be a member; the text prints no number of years for that clause.
- Disputes about acts or omissions run six years from the act or omission.
- Election disputes run one month from the declaration of the result.
- Other disputes follow the Limitation Act, 1963, and the arbitrator may admit a late dispute for sufficient cause.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 84: reference of disputes to arbitration
- Section 85A: Co-operative Ombudsman, complaints and appeal
- Sections 99 and 100: appeals and orders not open to appeal
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.