Sections 96 and 97 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 96 lets an arbitrator who is hearing a dispute under s.84 order conditional attachment of property before the award, if a party is about to dispose of it or remove it in order to defeat or delay execution. Section 97 treats the Central Registrar, the arbitrator or an authorised person as a civil court for one purpose connected with recovery.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, in force from 3 August 2023 (notification S.O. 3493(E)). Neither section was amended in 2023.
If an arbitrator is satisfied that a party to a reference under s.84, with intent to defeat or delay execution, is about to dispose of or remove property, he may, unless adequate security is furnished, direct conditional attachment. A civil court with jurisdiction executes the attachment as if it were its own order. Under s.97, the Central Registrar, the arbitrator or a person authorised in writing is deemed to be a civil court for article 136 of the Schedule to the Limitation Act, 1963 when recovering by attachment and sale.
Section 96(1): when an arbitrator may order attachment
"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- (a) dispose of the whole or any part of the property; or (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 its deems necessary."
The conditions can be set out as a short list:
| Element | Words of the section |
|---|---|
| Who acts | The arbitrator to whom a reference under s.84 was made |
| Standard | "is satisfied" |
| Intent | "with intent to defeat or delay the execution of any decision that may be passed" |
| Act feared | "about to" dispose of, or remove from its existing precincts, the whole or part of the property |
| Relief | "conditional attachment" of the property or such part "as its deems necessary" (printed "its" for "it") |
| Exit | "unless adequate security is furnished" |
The section does not say what makes security "adequate", who fixes the amount, or what is meant by "existing precincts". It does not say that the party must be heard before the direction; the text is silent. For the reference itself, see our article on reference of disputes to arbitration.
Example. In a reference under s.84, the invented Tapti Multi-State Cotton Society claims a large sum from a former agent. The arbitrator is satisfied that the agent is about to move a stock of goods out of his godown with intent to delay execution of any decision. The arbitrator directs conditional attachment of the stock. The agent can avoid attachment by furnishing adequate security. Either side may find it useful to take advice on legal dispute resolution at that stage.
Section 96(2): who executes the attachment
"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." So the arbitrator directs, and a civil court having jurisdiction carries the attachment out. The sources do not say how the arbitrator's direction reaches that court, and this article adds no procedure.
Section 97: the Registrar or arbitrator as a civil court
The section is headed in the print over two lines: "Central Registrar or arbitrator or person authorised to be civil court for certain purposes". It reads: "The Central Registrar or the arbitrator or any person authorised by him in writing in this behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders or any application made to him for such recovery, or for taking a step-in-aid of such recovery, to be a civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963 (36 of 1963)."
Note that "the Schedule" in the section is the Schedule to the Limitation Act, 1963, not a Schedule to this Act; this Act's Schedules are the First, Second and (since 2023) Third. Readers should check the current law for article 136 of that Act. The section ties the deeming to recovery by attachment and sale, to orders or applications for such recovery, and to a "step-in-aid of such recovery". The text does not say what period applies under that article; it only deems the Registrar, the arbitrator or the authorised person to be a civil court for its purposes. For the limitation rules of this Act itself, see our article on limitation for disputes referred to arbitration.
How the sections work together
- A dispute is referred under s.84 and the arbitrator is appointed by the Central Registrar.
- Before the award, s.96 allows conditional attachment to protect a later decision.
- After the decision, s.94 executes it, in one of three modes, on a certificate of the Central Registrar; see our article on execution of decisions and orders.
- In recovery by attachment and sale, s.97 deems the Registrar, arbitrator or authorised person to be a civil court for article 136 of the Limitation Act schedule.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 96 | As printed above | Not amended |
| Section 97 | As printed above | Not amended |
| Section 94 (execution) | Did not name s.84 | Now names s.84, so the arbitrator's decision is executed under that section |
Need help with attachment or security?
Whether you want protective attachment before an award or need to show that security is adequate, the facts and the timing matter. Our team can look at the pleadings and the property with you under legal dispute resolution.
Key takeaways
- An arbitrator under s.84 may order conditional attachment if satisfied of intent to defeat or delay execution and that disposal or removal is imminent.
- Adequate security stops the attachment; the Act does not define adequacy.
- A civil court having jurisdiction executes the attachment with the effect of its own order.
- Section 97 deems the Registrar, arbitrator or authorised person to be a civil court for article 136 of the Limitation Act, 1963 Schedule.
- Neither section was amended in 2023.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 84: reference of disputes to arbitration
- Sections 94 and 95: execution of decisions and orders
- Section 85: limitation for disputes referred to arbitration
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.