High Court mandates structured mediation for membership, loan recovery, and inheritance disputes in cooperative societies.

While disposing of this Writ Petition on 26th February 2026, the Court observed a high volume of long-pending disputes involving the Registrar of Co-operative Societies (RCS) related to flat allotments, loan defaults, and regularizations

Consequently, the Court directed the RCS office to coordinate with the Delhi High Court Mediation and Conciliation Centre (“SAMADHAN”) to explore the feasibility of a specialized mediation drive

Subsequent to these directions, the RCS office filed a status report confirming that meetings were held and a list of approximately 170 suitable cases was identified in coordination with the Court Registry

The matter was listed on 16th April 2026 to formalize the protocol for the mediation drive

1. Whether disputes involving the Registrar of Co-operative Societies (RCS) regarding membership, loans, and transfers are suitable for resolution through a structured mediation drive

2. What procedural framework and Standard Operating Procedure (SOP) should be implemented to refer pending RCS litigations to the Delhi High Court Mediation Centre

The Court applied the principles of judicial economy and Alternate Dispute Resolution (ADR).

It adopted the Standard Operating Procedure (SOP) previously established for the "Special Mediation Drive" directed by the Supreme Court of India

The legal framework emphasizes that mediation is an appropriate mechanism for civil disputes involving cooperative societies, specifically those pertaining to membership rights, recovery of loans, and inheritance or substitution of membership

The Court analyzed the status report and the Registry's data, noting that out of 230 identified cases, approximately 170 were suitable for mediation after excluding matters where the RCS, GNCTD had no role

The Court determined that mediation is particularly effective for three specific categories: membership disputes, loan recovery proceedings, and inheritance or transfer of membership

Conversely, the Court acknowledged the Mediation Centre's assessment that certain other categories are unsuitable for mediation

To ensure efficacy, the Court integrated the logistical capabilities of the DHC Mediation Centre—specifically the availability of 40 mediators for morning sessions—with the judicial oversight of Joint Registrars (Judicial) to facilitate consent-based referrals

The Court reasoned that following the Supreme Court’s established SOP for special drives would ensure a streamlined and tested process for resolving these long-pending society disputes

The Court directed the Registry to list these matters on a daily basis before the Joint Registrars (Judicial) for the purpose of such referral

The mediation proceedings are scheduled to commence in May 2026, utilizing the morning sessions provided by 40 identified mediators

The Court ordered a further compliance and status report to be filed by 25th May 2026