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KERALA CO-OPERATIVE SOCIETIES ACT, 1969

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PREAMBLE

An Act to consolidate, amend and unify the laws relating to co-operative societies in the State of Kerala

WHEREAS with a view to providing for the orderly development of the co-operative movement in the State of Kerala in accordance with the relevant directive principles of State policy enunciated in the Constitution of India, it is expedient to consolidate, amend and unify the law relating to co-operative societies in that State;

Be it enacted in the Nineteenth Year of the Republic of India as follows.--

_________________

* Date of commencement: 15-5-1969 by Notification No. 24314/ C3/ 69 AD dated 12-5-1969, published in K.G. Ex. No. 102 dated 11-4-1969.


S.1 Short title, extent and commencement

(1) This Act may be called the Kerala Co-operative Societies Act, 1969.

(2) It extends to the whole of the State of Kerala

(3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint:*

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the


S.2 Definitions

In this Act, unless the context otherwise requires-

(a) "apex society" means a society having the whole of the State as its area of operation and having as its members only other societies with Similar objects and declared as such by the Registrar;

(b) "bye-laws" means the registered bye-laws of a Co-operative society for the time being in force;

(c) "circle co-operative union" means a circle co-operative union constituted under section 88;

1[(d) "central society" means a society having Jurisdiction over one or more Revenue Districts but not the whole of the State as its area of operation, and having as its members only other societies and declared as such by the Registrar or the Government].

(e) "committee" means the governing body of a co-operative society by whatever name called, to which the management of the affairs of the society is entr

S.3 Registrar

(1) The Government may appoint a person to be the Registrar of Cooperative Societies for the State.

(2) The Government may by general or special order confer on any person all or any of the powers of the Registrar under this Act.


S.4 Societies which may be registered

Subject to the provisions of this Act, a co-operative society which has as its object the promotion of the economic interests of its members or of the interests of the public in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act.


S.5 Registration with limited liability only

(1) A co-operative society shall be registered only with limited liability:

Provided that this sub-section will not affect the rights and liabilities of societies with unlimited liability which are in existence at the time of commencement of this Act.

(2) The word 'limited' or its equivalent in any Indian language shall be the last word in the name of a society registered under this Act with limited liability.


S.6 Registration

(1) If the Registrar is satisfied-

(a) that the application complies with the provisions of this Act and the rules;

(b) that the objects of the proposed society are in accordance with section 4;

(c) that the area of operation of the proposed society and the area of operation of another society of similar type do not overlap;

(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and

(e) that the proposed society complies with the requirements of sound business;

he may register the society and its bye-laws.

(2) Where the Registrar refuses to register a society, he shall communicate the order of refusal together with the reasons therefor within seven days of such order to such of the applicants as may be prescribed.

(3) An application of registration

S.8 Registration Certificate

Where a co-operative society is registered under this Act, the Registrar shall issue a certificate of registration signed and sealed by him, which shall be conclusive evidence that the said society is duly registered under this Act.


S.9 Co-operative Societies to be bodies corporate

The registration of a society shall render it a body corporate by the name under which it is registered, having perpetual succession and a common seal and with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted.


S.10 Change of Name of society

(1) A society may, by an amendment of its bye-laws, change its name.

(2) Where a society changes its name, the Registrar shall enter the new name in the register of co-operative societies in the place of the former name and shall amend the certificate of registration accordingly.

(3) The change of name of a society shall not affect any rights or obligations of the society or render defective any legal proceedings by or against it; and any legal proceedings which might have been continued or commenced by or against the society by its former name may be continued or commenced by its new name.


S.11 Change of liability

(1) Subject to the provisions of this Act and the rules a society may, by an amendment of its bye-laws, change the form or extent of its liability.

(2) When a society has passed a resolution to change the form or extent of its liability it shall notice thereof in writing to all its members and creditors and notwithstanding the provisions of S.24 or any bye-laws or contract to the contrary, any member or creditor shall, during a period of two months from the date of service of notice upon him, have the option of Withdrawing his shares, deposits of loans, as the case may be.

(3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have given his assent to the change.

(4) An amendment of the bye-laws of a society changing the form or extent of its liability shall not be registered or take effect until either-

(a

S.12 Amendment of bye-laws of a Society

(1) No amendment to any bye-law of a society shall be valid unless such amendment has been registered under this Act.

(2) The provisions of section 7 specifying the conditions to be satisfied before registration of the bye-laws of a society by the Registrar shall, mutatis mutandis, apply also to the registration of amendments to bye-laws;

Provided that the Registrar shall before registering an amendment of any bye-law consult-

(a) The State Co-operative Union if the bye-laws to be amended are that of an apex society or a central society; or

(b) the circle co-operative union if the bye-laws that are to be amended are that of any other society; and

(c) the financing bank if the society is indebted to the financing bank.

(3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate o

S.13 When amendment of bye-laws come into force

An amendment of the bye-laws of a society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.


S.14 Amalgamation, transfer of assets and liabilities and division of society

(1) A society may, with the previous approval of the Registrar and by a resolution passed by a two thirds majority of the members present and voting at a general body meeting of the society;

(a) transfer its assets and liabilities in whole or in part to any other society;

(b) divide itself into two or more societies.

(2) Any two or more societies may, with the previous approval of the Registrar and by a resolution passed by a two thirds majority of the members present and voting at a general body meeting of such society, amalgamate themselves and form a new society.

(3) The resolution of a society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer, division or amalgamation, as the case may be.

(4) When a society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and

S.15 Cancellation of registration certificates of societies in certain cases

(1) Where the whole of the assets and liabilities of a society are transferred to another society in accordance with the provisions of section 14 the registration of the first mentioned society shall stand cancelled and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.

(2) Where two or more societies are amalgamated into a new society in accordance with the provisions of section 14, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society and each amalgamating society shall be deemed to have been dissolved and shall cease to exist as a corporate body.

(3) Where a society is divided into two or more societies in accordance with the provisions of section 14, the registration of that society shall stand cancelled on the registration of the new societies and that society shall be deemed to have been dissolved and shall c

S.16 Persons who may become members

(1) No person shall be admitted as a member of a society except the following, namely.--

(a) an individual-

(i) who has attained the age of eighteen years;

Provided that this sub clause shall not apply in the case of a society formed exclusively for the benefit of the students of any school or college;

(ii) who is not of unsound mind;

(iii) who is a resident within, or is in occupation of land in the area of operation of the society;

(b) any other society;

(c) the Government; and

(d) any body of persons, whether incorporated or not and whether or not established by or under any law, if such body is approved by the Government in this behalf by general or special order;

Provided that in a society formed for the promotion of the economic interests of its members

S.17 Expulsion of members

(1) Any member of a society, who has acted, adversely to the interests of the society, may be expelled upon a resolution of the general body passed at a special meeting convened for the purpose by the votes of not less than two-thirds of the total number of members present and voting at the meeting.

(2) No member shall be expelled under sub-section (1) without being given an opportunity of making his representation.

(3) A copy of the resolution expelling a member shall be communicated to the member within a period of fifteen days from the date of passing of the resolution.


S.18 Nominal or associate members

(1) A society may admit any individual as a nominal or associate member.

(2) A nominal or associate member shall not be entitled to any share, in any form whatsoever, in the assets or profits of the society or to be elected to the committee of a society.

(3) Save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be subject to such liabilities of a member, as may be specified in the bye-laws of the society.


S.19 Member not to exercise rights till due payment made

No member of a society shall exercise the rights of a member unless he has made such payments to the society in respect of membership or has acquired such interest in the society, as may be prescribed by the rules or the bye-laws.


S.20 Votes of members

Every member of a society shall have one vote in the affairs of the society:

Provided that-

(a) a nominal or associate member shall not have the right to vote;

(b) where the Government is a member of the society, each person nominated by the Government on the committee of the society shall have one vote except when the right to vote is to be exercised for election of office bearers of the society;

(c) in the case of an equality of votes, the chairman shall have and exercise a second or casting vote.



Legal Commentary on Section 20 of the Kerala Co-operative Societies Act, 1969

Introduction

Section 20 of the Kerala Co-operative Societies Act, 1969 deals with the voting rights of members in co-operative societies. This provision is fundamental to the democratic functioning of co-operative societies, as it determines who can participate in the decision-making processes of the society. The section has undergone significant amendments, most notably by Act 3 of 2002 with effect from 4.5.2002, which expanded the scope of voting rights.

What the Section Says

Section 20, titled "Vote of members," establishes that every member of a co-operative society shall have one vote in the affairs of the society. The section contains specific provisions regarding:- Voting rights of active members- Disqualifications for voting- Government representatives' voting rights- Restrictions on voting by newly admitted members

Essential Ingredients

  1. One member, one vote - The foundational principle of co-operative democracy
  2. Active membership - Prior to the 2002 amendment, voting rights were restricted to active members
  3. Restrictions on newly admitted members - Members admitted within 60 days prior to an election cannot vote
  4. Exclusion of nominal/associate members - Such members do not have voting rights
  5. Government nominees - Multiple government nominees may each have one vote

Scope of Section

The scope of Section 20 extends to:

  • All types of co-operative societies registered under the Act
  • Election processes for committee members
  • General body meetings and decision-making
  • Determination of member eligibility for voting

Punishment for Section

The Act does not prescribe specific criminal punishment for violation of Section 20 itself. However, violations may lead to:

  • Civil consequences such as invalidation of elections
  • Administrative actions by the Registrar
  • Challenges to decisions made in contravention of voting rights

Legal Comments

  • Voting Rights - Active vs. Inactive Members: The statute as it now stands does not make any distinction between active members and inactive members in so far as the voting right as provided under Section 20 is concerned. [N. Surendran VS Poovattur East Service Co-Operative Bank Ltd. - 2015 0 Supreme(Ker) 64]

  • Amendment Impact: Before its amendment by Act 3 of 2002 w.e.f. 4.5.2002, the voting right was recognized only in favour of every active member of the society. [N. Surendran VS Poovattur East Service Co-Operative Bank Ltd. - 2015 0 Supreme(Ker) 64]

  • Determination of Ineligibility: The question of ineligibility of a member to continue to be a member for reasons stated in Section 16A (for not attending annual general body meeting and not availing of services) and the consequent removal can be ascertained or determined only after the close of the year as contemplated under Rule 18A. [N. Surendran VS Poovattur East Service Co-Operative Bank Ltd. - 2015 0 Supreme(Ker) 64]

  • Time Period for Removal Process: For completing the entire process as contemplated under sub-rule (2) of Rule 18A, the Committee has a total period of ninety days from the completion of every year. [N. Surendran VS Poovattur East Service Co-Operative Bank Ltd. - 2015 0 Supreme(Ker) 64]

  • Definition of "Year": "Year" is defined in Section 2(u) as the period commencing on the first day of April of any year and ending with 31st of March of the succeeding year. [N. Surendran VS Poovattur East Service Co-Operative Bank Ltd. - 2015 0 Supreme(Ker) 64]

  • Vote of Every Member: Every member of a society shall have one vote in the affairs of the society, as per the general principle established under Section 20.

  • Restriction on Newly Admitted Members: A member admitted within sixty days immediately prior to the date of election shall not have a right to vote.

  • Exclusion of Nominal/Associate Members: A nominal or associate member shall not have a right to vote in the affairs of the society.

  • Government Nominees' Voting Rights: Where the Government is a member of a society, each person nominated by the Government shall have one vote.

  • Eligibility Criterion for Voting: No member of a society shall be eligible to vote at the meeting fixed for any election to the committee of that society, unless 30 days prior to the date of such election they are a member in good standing.

  • Self-Governing Nature of Societies: The Act organizes co-operative societies as self-governing institutions, with Section 20 being central to ensuring democratic participation.

  • One Vote Principle: Section 20 establishes the principle of "one member, one vote" regardless of the number of shares held by a member.

  • Rules Supplementing Section 20: The Kerala Co-operative Societies Rules, 1969, particularly Rule 18A, provides the procedural framework for determining voting eligibility and membership status. [N. Surendran VS Poovattur East Service Co-Operative Bank Ltd. - 2015 0 Supreme(Ker) 64]

  • Section 20 Overrides Other Provisions: Section 20 begins with "Notwithstanding anything contained in any other provision of this Act or other law," indicating its overriding effect.

  • Interaction with Section 16A: The provisions of Section 20 regarding voting rights must be read in conjunction with Section 16A, which deals with the removal of members who do not attend annual general body meetings or avail of society services. [N. Surendran VS Poovattur East Service Co-Operative Bank Ltd. - 2015 0 Supreme(Ker) 64]

  • Procedural Requirements: The determination of a member's active status for voting purposes requires completion of the procedural process outlined in Rule 18A before voting rights can be affected. [N. Surendran VS Poovattur East Service Co-Operative Bank Ltd. - 2015 0 Supreme(Ker) 64]

S.21 Manner of exercising vote

(1) Every member of a society shall exercise his vote in person.

(2) Notwithstanding anything contained in sub-section (1), a society or corporation or a statutory or non-statutory Board, Committee or other body of persons which is a member of another society may, subject to any rules made under this Act, appoint one of its members to vote on its behalf in the affairs of that other society.



Based solely on the provided sources, there is no specific information regarding Section 21 of the Kerala Co-operative Societies Act, 1969. The sources reference Section 21 of various other acts (like the Urban Land Ceiling Act, Karnataka Rent Control Act, U.P. Sales Tax Act, General Clauses Act, etc.) and also discuss the Maharashtra Co-operative Societies Act, but not the specific Section 21 of the Kerala Act from 1969.

However, the sources do provide extensive commentary on Section 21 of the Indian Penal Code, 1860, particularly in the context of the Maharashtra Co-operative Societies Act, 1960, which can be used to interpret provisions regarding the status of officers. Below is a legal commentary based on the available sources, focusing on the relevant legal principles.

Legal Commentary on the Status of Co-operative Society Officers (as informed by Section 21, IPC and analogous State Acts)

Introduction

The legal status of officers of co-operative societies, particularly whether they are deemed "public servants," is a critical issue affecting their liability under laws like the Prevention of Corruption Act, 1947. While the specific text of Section 21 of the Kerala Co-operative Societies Act, 1969 is not detailed in the provided sources, an analogous provision from the Maharashtra Co-operative Societies Act, 1960 (Section 161) provides a clear legal framework for this discussion. The analysis below is based on judicial interpretations of this analogous law and the principles of legislative competency.

What the Law Says (Based on Analogous Provisions)

The key provision, as interpreted from the sources, deems certain officers of co-operative societies to be "public servants" within the meaning of Section 21 of the Indian Penal Code (IPC) [Pralhad Shamburao Newale & others VS State of Maharashtra & others - 1987 0 Supreme(Bom) 394]. This is achieved through a State Act (like the Maharashtra Co-operative Societies Act) that adds to the list of public servants defined under the IPC.

Essential Ingredients

For an officer of a co-operative society to be considered a public servant:1. The officer must fall within the definition of "officer" under the relevant State Co-operative Societies Act (e.g., Section 2(20) of the Maharashtra Act) [Pralhad Shamburao Newale & others VS State of Maharashtra & others - 1987 0 Supreme(Bom) 394].2. The State Act must contain a provision (e.g., Section 161 of the Maharashtra Act) that explicitly deems such officers to be public servants within the meaning of Section 21 of the IPC [Pralhad Shamburao Newale & others VS State of Maharashtra & others - 1987 0 Supreme(Bom) 394].

Scope of Section

The scope extends to making co-operative society officers liable under central laws that apply specifically to public servants, such as the Prevention of Corruption Act, 1947 [Pralhad Shamburao Newale & others VS State of Maharashtra & others - 1987 0 Supreme(Bom) 394]. This is valid because the State Legislature has the competence to legislate on "Co-operative Societies" (State List) and can define the status of its officers for the purposes of criminal law without creating a "repugnancy" under Article 254 of the Constitution [Pralhad Shamburao Newale & others VS State of Maharashtra & others - 1987 0 Supreme(Bom) 394].

Punishment for Section

The sources do not prescribe a specific punishment for Section 21 itself. Instead, the punishment is derived from the penal law to which the officer is now made subject. By being deemed a public servant, officers become liable for offences under:- The Prevention of Corruption Act, 1947 (e.g., Section 5) for criminal misconduct [Pralhad Shamburao Newale & others VS State of Maharashtra & others - 1987 0 Supreme(Bom) 394].- The Indian Penal Code, 1860 for offences against public servants [Pralhad Shamburao Newale & others VS State of Maharashtra & others - 1987 0 Supreme(Bom) 394].

Legal Comments

S.22 Restrictions of holding of shares

In any society no member other than the Government, any statutory or non-statutory Board, Committee or Corporation approved by the Government in this behalf or any other society, shall-

(a) hold more than such portion of the total share capital of the society not exceeding one fifth thereof, as may be prescribed; or

(b) have or claim any interest in the shares of the society exceeding five thousand rupees:

Provided that the Government may, by notification in the Gazette, specify in respect of any class of societies a higher maximum than one fifth of the share capital or a higher amount than five thousand rupees, as the case may be.


S.23 Restrictions on transfer of share or interests

(1) The transfer of a sharp or interest of a member in the capital of a society shall be subject to such conditions and restrictions as to the maximum holdings as are specified in section 22.

(2) No transfer by a member of his share or interest in a society shall be valid unless-

(a) the member has held such share or interest for not less than three years; and

(b) the transfer is approved by the committee of the society.


S.24 Restriction on withdrawal of shares

Subject to the other provisions of this Act, no withdrawal by a member of his share in a society shall be valid unless-

(a) the member has held such share for not less than three years; and

(b) such withdrawal is in accordance with the bye-laws of the society.


S.25 Transfer of interest on death of members

(1) On the death of a member of a society, the society shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules or the bye-laws or, if no person has been so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member:

Provided that such nominee, heir or legal representative, as the case may be, is admitted as a member of the society:

Provided further that nothing in this sub section shall prevent a minor or a person of unsound mind from acquiring by inheritance of otherwise the share or interest of a deceased member in a society.

(2) Notwithstanding anything contained in sub-section (1), any such nominee, heir or legal representative, as the case may be, may require the society to pay to him the value of the share or interest of the deceased member ascertained in accordance

S.26 Liabilities of past member or of estate of deceased member

(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a society for the debts of the society as they existed-

(a) in the case of a past member, on the date on which he ceased to be a member;

(b) in the case of a deceased member, on the date of his death; shall continue for a period of two years from such date.

(2) Where a society is ordered to be wound up under section 71, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately proceeding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of his ceasing to be a member, or death, as the case may be.


S.27 Final authority in a Society

(1) Subject to the provisions of this Act, the rules and the bye-laws, the final authority of a society shall vest in the general body of its members:

Provided that nothing contained in this sub-section shall affect the exercise by the committee or any officer of a society of any power conferred on such committee or such officer by this Act or the rules or the bye-laws.

(2) Notwithstanding anything contained in sub-section (1), where the area of operation of a society is not less than such area as may be prescribed, or where the society consists of not less than such number of members as may be prescribed, the society may provide by an amendment of its bye-laws for the constitution of a smaller body consisting of such number of members of the society as may be prescribed, elected in accordance with the rules (hereinafter referred to as the representative general body to exercise all or any of the powers of the general bo

S.28 Appointment of Committee

(1) The general body of a society shall 1[constitute a committee, for a period not exceeding three years], in accordance with the bye-laws and entrust the management of the affairs of the society to such committee:

Provided that in the case of society registered after the commencement of this Act, the persons who have signed the application to register the society may appoint a committee to conduct the affairs of the society for a period of three months from the date of registration or for such further period as the Registrar may consider necessary; but the committee appointed under this proviso shall cease to function as soon as a committee has been constituted in accordance with the bye-laws:

2[Provided further that where the bye-laws so provide, the Government or the Registrar may nominate all or any of the members of the first committee, including the President or Chairman, for a period not exc

S.28(a) Reservation for women members and members belonging to Scheduled Castes or Scheduled Tribes in the Committee

1[(1) Notwithstanding anything contained in sub-section (1) of section 28 there shall be reserved 2(in the committee of every primary credit society, every District Co-operative Bank, the Kerala State Cooperative Bank Ltd., and the Kerala State Co-operative Agricultural and Rural Development Bank Ltd.) one seat for a woman member and one seat for a member belonging to the Scheduled Castes or Scheduled Tribes and for that purpose. 3[the society or the bank, as the case may be may, if they consider it necessary so to do, increase the total number of members of the committee by two more members.

(2) Nothing contained in sub-section (1) shall prevent the women members and members belonging to the Scheduled Castes or Scheduled Tribes from being elected to the non-reserved seats in the committee].

4[(3)Where there is no representation of woman or of a member belonging to the Scheduled

S.29 Annual general body meeting

(1) A general body meeting of a society shall be held once in a year for the purpose of.--

(a) approval of the budget with reference to the programme of the activities of the society prepared by the committee for the ensuing year;

(b) election, if any, in the prescribed manner of the members of the committee other than nominated members;

(c) consideration of the audit report and the annual report;

(d) disposal of the net profit; and

(e) consideration of any other matter which may be brought forward in accordance with the bye-laws.

(2) The Registrar or any other person deputed by him shall have the right to attend the committee or general body meeting of any society.


S.30 Special general body meetings

(1) The committee of a society may at any time, call a special general body meeting of the society and shall call such meeting within one month after receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be prescribed.

(2) If a special general body meeting of a society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorized by him in this behalf shall have power to call such meeting and that meeting shall be deemed to be a meeting called by the committee.

(3) Notwithstanding anything contained in sub-section (1) or subsection (2), the Registrar or any person authorized by him in this behalf may, at any time, call a special general body meeting of the society in such manner and at such time and place within the area of its operation as he may direct and such meeting shall be

S.31 Nominees of Government on committee of an apex or a central society

1[(1) Where the Government-

(a) have subscribed to the share capital of an apex or a central society; or

(b) have assisted indirectly in the formation or augmentation of the share capital of an apex or a central society; or

(c) have guaranteed the repayment of principal and payment of interest on debentures issued by an apex or a central society; or

(d) have guaranteed the repayment of principal and payment of interest on loans and advances to an apex or a central society; the Government or any authority specified by them in this behalf shall have the right to nominate not more than three persons or one-third of the total number of members of the committee of such apex or central society, whichever is less, to be members of the committee.

(2) A person nominated to the committee of an apex or a central society under sub-section (1) shall hold o

S.32 Supersession of Committee

(1) If the Registrar is satisfied that the committee of any society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or bye-laws or commits any act which is prejudicial to the interests of the society or willfully disobeys or willfully fails to comply with any lawful order or direction issued under this Act or the rules, the Registrar may, after giving the committee an opportunity to state its objections, if any, by order in writing remove the committee and-

(a) appoint a new committee consisting of not more than three members of the society in its place; or

(b) appoint one or more administrator or administrators who need not be a member or members of the society, to manage the affairs of the society for a period not exceeding one year as may be specified in the order, which period may, at the discretion of the Registrar, be extended from time to time, so h

S.33 Appointment of new committee or Administrator on failure to constitute committee, etc

(1) Where the term of office of a committee has expired and a new committee has not been constituted, or 1[where a no confidence motion is passed by the general body against the existing committee or where the existing committee resigns enbloc or where vacancies occur in the committee either by resignation or otherwise and the number of remaining members cannot constitute the quorum for the meeting of the committee, or where the committee fails to hold its regular meeting consecutively for six months or where the Registrar is satisfied.]

(a) That a new committee cannot be constituted before the expiry of the term of office of the existing committee; or

(b) That a new committee is prevented from entering upon office or a new committee fails to enter upon office, on the date on which the term of office of the existing committee expires, the Registrar may, either suo motu or on the application of any member of the

S.34 Securing possession of Records etc

(1) if the committee of a society is reconstituted at a general meeting of the society or the committee of a society is removed by the Registrar under section 32 or a new committee or administrator or administrators is or are appointed under section 33 or if the society is ordered to be wound up under section 71 and the outgoing members of the committee refuse to hand over charge of the records and property of the society to the new committee or administrator or administrators or the liquidator, as the case may be, or if an outgoing president or secretary who is the custodian of the records and property of a society refuses to hand over charge of the records and property of the society to his successor, the new committee or administrator or administrators or the liquidator or the president or secretary may with the previous sanction of the Registrar apply to the Magistrate within whose jurisdiction the society functions, for securing the records and properties of the

S.35 First charge of society on certain assets

(1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a society by any member or past member or deceased member shall be a first charge. -

(a) upon the crops or other agricultural produce of such member for the raising of which the loan was taken from the Society by such member; and

(b) upon any cattle, fodder for cattle, agricultural or industrial implements or machinery, or raw materials for manufacture, supplied or purchased in whole or in part out of any loan given, by the society, or on any article manufactured from raw materials so supplied or purchased.

(2) No person shall transfer any property which is subject to a charge under sub-section (1) except with the previous permission in writing of the society which h

S.36 Charge on land owned or held by members borrowing loans from certain societies

Notwithstanding anything contained in this Act or any other law for the time being in force.

(i) a member who makes an application for a loan to a society of which the majority of the members are agriculturists shall, if he owns any land or holds any land as a tenant entitled to fixity of tenure, make a declaration in the prescribed form, which shall state that the applicant thereby creates a charge on the land owned by him or on his interest in the land held by him as tenant and specified therein, for the payment of the amount of the loan which the society may make to the member on the application and future loans if any, that may be made to him, from to time, by the society together with interest on such loan or loans;

(ii) a declaration made under clause (i) may be varied or cancelled at any time by the member, with the previous written permission of the society in favor of which such charge has been created;

S.37 Deduction from salary to meet society's claim in certain cases

(1) Notwithstanding anything contained in any law for the time being in force, a member of a society, may execute an agreement in favor of the society providing that his employer or the officer disbursing his salary or wages shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the Society.

(2) On the execution of such an agreement, the employer or the officer disbursing the salary or wages of any such member as is referred to in sub-section (1) shall, if so required by the society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amounts so deducted to the society within seven days from the date of the deduction.


S.38 Charges and set off in respect of shares or interest of members in the capital of a society

A society shall have a charge upon the share or interest in the capital and on the deposits of a member or past member or deceased member and on any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt or outstanding demand owing to the society and may set-off any sum credited or payable to a member, past member or the estate of a deceased member in or towards payment of any such debt or outstanding demand:

Provided that no financing bank to which a society is affiliated shall have a charge upon any sum invested in the financing bank as reserve fund by the society if the bank is not the sole creditor of the society, or be entitled to set off any such sum credited or payable to the society towards any debt due from such society,


S.39 Shares or interest or reserve fund not liable to attachment

(1) Subject to the provisions of section 38, the share or interest of a member in the capital of a society shall not be liable to attachment or sale under any decree or order of a court in respect of any debt or liability incurred by him and a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or interest.

(2) The reserve fund of a society invested by such society in accordance with the provisions of section 57 shall not be liable to attachment under any decree or order of a court in respect of any debt or liability incurred by the society.


S.40 Exemption from certain taxes, fees and duties

(1) The Government may, by notification in the Gazette, remit in respect of any class of societies-

(a) the stamp duty chargeable under the Kerala Stamp Act, 1959 (17 of 1959), in respect of any instrument executed by or on behalf of a society or by an officer or member thereof and relating to the business of such Society, or any class of such instruments, or in respect of any award or order made under the Act, in cases where, but for such remission the society, officer or member, as the case may be, would be liable to pay such stamp duty;

(b) any fee payable under any law for the time being in force relating to the registration documents or court fees.

(2) The Government may, by notification in the Gazette, exempt any class of societies from taxes on-

(a) agricultural income;

(b) sale or purchase of goods; and

(c) professions, tra

S.41 Exemption from compulsory registration of instruments

Nothing in clause (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act, 1908 (Central Act 16 of 1908) or sections 54 and 59 of the Transfer of Property Act, 1882 (Central Act 4 of 1882), shall apply to

(a) any instrument relating to shares in a society, notwithstanding that the assets of the society consists in whole or in part of immovable property; or

(b) any debentures issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or

(c) any endorsement upon or transfer of any debenture

S.42 Direct partnership of Government in societies

(1) The Government may subscribe directly the share capital of a society with limited liability.

(2) Notwithstanding any agreement to the contrary, the Government shall not be entitled to a dividend on the shares of any such society at a rate higher than that at which such dividend is payable to any other shareholder of the society.


S.43 Indirect partnership of Government in societies

The Government may provide moneys to a society for the purchase of shares in other societies with limited liability.


S.44 Principal State Partnership Fund

(1) An apex society which is provided with moneys by the Government under section 43 shall, with such moneys, establish a fund to be called the 'Principal State Partnership Fund'.

(2) An apex society shall utilize the Principal State Partnership Fund for the purpose of.--

(a) directly purchasing shares in other societies with limited liability; or

(b) providing moneys to a central society to enable that society to purchase shares in other societies with limited liability (hereinafter in this Chapter referred to as primary societies) or;

(c) making payments to the Government in accordance with the provisions of this Chapter, and for no other purpose.


S.45 Subsidiary State Partnership Fund

(1) A central society which is provided with moneys an apex society from the Principal State Partnership Fund shall, with such moneys, establish a fund to be called the 'Subsidiary State Partnership Fund'

(2) A central society shall utilize the Subsidiary State Partnership Fund for the purpose of

(a) purchasing shares in primary societies; or

(b) making payments to the apex society in accordance with the provisions of this Chapter, and for no other purpose.


S.46 Approval of Government for purchase of shares

No shares in a society shall be purchased from the moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund except with the previous approval in writing of the Government.


S.47 Liability to be limited in respect of certain shares

Where any shares in a society are purchased by-

(a) the Government; or

(b) the apex society or a central society from the Principal State Partnership Fund or the Subsidiary State Partnership Fund, as the case may be, the liability in respect of such shares shall, in the event of the society being wound up, be limited to the amount paid in respect of such shares.


S.48 Restrictions on amount of dividend

An apex society which has purchased shares in other societies from the moneys in the Principal State Partnership Fund and a central society which has purchased shares in primary societies from the moneys in the Subsidiary State Partnership Fund shall be entitled only to such dividend on the said shares as is declared by the society concerned and is payable to other share holders of that society.


S.49 Indemnity of apex and central societies

(1) If a society in which shares are purchased from the moneys in the Principal State Partnership Fund is wound up or is dissolved, the Government shall not have any claim against the apex society which purchased the shares in respect of any loss arising from such purchase; but the Government shall be entitled to any moneys received by the apex society in liquidation proceedings or on dissolution, as the case may be.

(2) If a society in which shares are purchased from the moneys in the Subsidiary State Partnership Fund is wound up or is dissolved, neither the Government nor the apex society shall have any claim against the central society which purchased the shares in respect of any loss arising from such purchase; but the apex society shall be entitled to any moneys received by the central society in liquidation proceedings or on dissolution, as the case may be and such moneys shall be credited to the Principal State Partnership Fund.


S.50 Disposal of share capital and dividend, etc

(1) All moneys received by an apex society in respect of shares of other societies purchased from the moneys in the Principal State Partnership Fund or redemption of such share or by way of dividends or otherwise shall be credited to that Fund.

(2) All moneys received by a central society in respect of shares of primary societies purchased from the moneys in the Subsidiary State partnership Fund on redemption of such shares or by way of dividends or otherwise, shall in the first instance be credited to that fund and them transferred to the apex society which shall credit them to the Principal State Partnership Fund.

(3) All moneys referred to in sub-section (1) or sub-section (2) shall, notwithstanding that the shares stand in the name of the apex society or the central society, as the case may be, be paid to the Government.

(4) Save as provided in sub-section (3), the Government shall not be entitl

S.51 Disposal of Principal State Partnership Fund and Subsidiary State Partnership Fund on winding up of apex or central society

(1) If an apex society which has established a Principal State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or payable to, that fund shall be paid to the Government.

(2) If a central society which has established a Subsidiary State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or payable to, that Fund shall be credited or paid, as the case may be, to the Principal State Partnership Fund from which it received moneys under clause (b) of sub-section (2) of S.44.


S.52 Agreement by Government and apex societies

Subject to the foregoing provisions of this Chapter,

(a) the Government may enter into an agreement with an apex society setting out the terms and conditions on which it shall provide moneys to the apex society for the purpose specified in S.43;

(b) an apex society may, with the previous approval of the Government, enter into an agreement with a central society, setting out the terms and conditions on which it shall provide moneys to that society from the Principal State Partnership Fund for the purpose specified in clause (b) of sub-section (2) of S.44.


S.53 Order forms of State aid to societies

Notwithstanding anything contained in any law for the time being in force, the Government may- (a) give loans or makes advances to societies;

(a) guarantee the repayment of principal and payment of interest on debentures issued by a society;

(b) guarantee the repayment of share capital of a society and dividends thereon at such rates as may be specified by the Government;

(c) guarantee the repayment of principal and payment of interest on loans and advances to a society;

(d) guarantee the repayment of deposits received by the society and payment of interest on such deposits; and

(e) give financial assistance in any other form, including subsidies, to any society.


S.54 Provisions of S.43 to 52 to over ride other laws

The provisions of Ss.43 to52 shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.


S.55 Funds not to be divided

No part of the funds other than the net profits of a society shall be paid by way of bonus or dividend or otherwise distributed among its members;

Provided that a member may be paid such remuneration, allowances or honoraria and on such scale as may be laid down by the bye-laws for any services rendered by him to the society.


S.56 Disposal of net profit

(1) A society shall, out of its net profits in any year-

(a) transfer an amount not being less than fifteen per cent of the net profits to the reserve fund; and

(b) credit such portion of the net profits, not exceeding five per cent, as may be prescribed, to the Co-operative Education Fund referred to in clause (xix) of sub-section (2) of S. 109.

(2) The balance of the net profits may be utilized for all or any of the following purposes, namely.--

(a) payment of dividends to members on their paid up share capital at such rate 1(not exceeding twenty per cent] as may be prescribed.

(b) payment of bonus to members on the amount or volume of business done by them with the society, to the extent and in the manner specified in the bye-laws;

(c) constitution of, or contributions to, such special funds as may be specified in the

S.57 Investment of funds A society may invest or deposit its funds

(a) in Government Savings Bank, or

(b) in any of the securities specified in S.20 of the Indian Trusts Act, 1882 (Central Act 2 of 1882); or

(c) in the shares or securities of any other society approved for the purposes by the Registrar by general or special order; or

(d) in any bank approved for the purpose by the Registrar; or

(e) in any other prescribed manner,


S.58 Restrictions on borrowing

A society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as may be specified in the bye-laws.


S.59 Restrictions on loans

(1) A Society shall not make a loan to any person or a society other than a member:

Provided that, with the general or special sanction of the Registrar, a society may make loans to another society.

(2) Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit.


S.60 Restrictions on other transactions with members

Save as is provided in Ss.58 and 59, the transactions of a society with persons other than members shall be subject to such restrictions, if any, as may be prescribed.


S.61 Provident Fund

(1) A society shall establish a contributory provident fund for the benefit of its employees, to which shall be credited all contributions made by the employees and the society in accordance with the rules or the Employees Provident Funds Act 1952 (Central Act 19 of 1952) whichever is more beneficial.

1[Provided that the contributory provident fund established under this sub-section shall not apply to the employees of such society to which the provisions of the Self Financing Pension Scheme framed under sub-section (1) of section 80A are made applicable and such society shall establish a Provident Fund in such manner and subject to such conditions or restrictions, as may be prescribed, for the benefit of such employees.

(2) A fund established by a society under sub-section UK

(a) shall not be used in the business of the society;

(b) shall not form part of the asset

S.62 Gratuity

The employees of a society shall be entitled to gratuity at such rates and on such conditions as prescribed.


S.63 Audit

(1) The Registrar shall Audit or cause to be audited by a person authorized by him by general or special order in writing in this behalf, the accounts of every society at least once in each year.

(2) The audit under sub section (1) shall include an examination of over due debts, if any, the verification of the cash balance and securities, and a valuation of the assets and liabilities of the society.

(3) The Registrar or the person authorized by him under sub-section (1) shall at all reasonable times have access to all the books, accounts, documents, papers, securities, cash and other properties belonging to, or in the custody of, the society and may summon any person in possession of, or responsible for the custody of, any such books, accounts, documents, papers, securities, cash or other properties, to produce the same at any place at the headquarters of the society or any branch thereof.

(4) Every

S.64 Communication of defects in audit to societies

(1) If the result of the audit held under S. 63 discloses any defects in the working of a society* the Registrar may bring such defects to the notice of the society and if the society is affiliated to another society also to the notice of that other society.

(2) The Registrar may, by order in writing, direct the society or its officers to take such action as may be specified in the order within the time mentioned therein to remedy the defects disclosed in the audit,


S.65 Inquiry by Registrar

(1) The Registrar may, of his own motion or on the application of a society to which the society concerned is affiliated, by himself or by a person authorized by him order in writing hold an inquiry into the constitution, working and financial condition of the society.

(2) An inquiry of the nature referred to in sub-section (1) shall be held on the application of.--

(a) a majority of the members of the committee of the society; or

(b) not less than one-third of the total number of members of the society or the number of members required for the quorum of the general body whichever is less.

(3) The Registrar or the person authorized by him under sub-section {1) shall, for the purpose of an inquiry under this section have the following powers, namely: -

(a) he shall, at all reasonable times, have access to the books, accounts, documents, securities, cash a

S.66 Supervision and Inspection

(1) (a) The Registrar shall supervise or cause to be supervised by a person authorized by him by general or special order in writing in this behalf, the working of every society as frequently as he may consider necessary.

(b) The supervision under clause (a) may include an inspection of the books of the society.

(2) The Registrar may, of his own motion, or on the application of a creditor of a society, inspect or direct any person authorized by him by order in writing in this behalf to inspect the books of the society:

Provided that no such inspection shall be made on the application of a creditor unless the applicant--

(a) Satisfies the Registrar that the debt is a sum then due and that he has demanded payment thereof and has not received satisfaction within a reasonable time, and

(b) deposits with the Registrar such sum as security for the costs of

S.67 Cost of inquiry or inspection

Where an inquiry is held under Section 65, or an inspection is made under S.66 on the application of a creditor, the Registrar may, by order, apportion the cost, or such portion of the cost, as he may deem fit, between the society to which the society concerned is affiliated, the society, the members or creditor demanding an inquiry or inspection, and the officers or former officers, of the society:

Provided that.--

(a) no order of apportionment of the cost shall be made under this section unless the society or the person sought to be made liable to pay the costs thereunder has had a reasonable opportunity of being heard;

(b) the Registrar shall state in writing the grounds on which the cost are apportioned.


S.68 Surcharge

(1) If in the course of an audit, inquiry, inspection or the winding up of a society, it is found that any person, who is or was entrusted with the organization or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act and the rules or the bye-laws, or has caused any deficiency in the assets of the society by breach of trust or willful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society or has destroyed or caused the destruction of the records the Registrar may, of his own motion or on the application of the committee, liquidator or any creditor, inquire himself or direct any person authorized by him by an order in writing in this behalf, to inquire into the conduct of such person.

(2) Where an inquiry is made under sub-section (1), the Registrar may, after giving the person concerned an opportun

S.69 Disputes to be referred to Registrar

(1) Notwithstanding anything contained in any law for the time being in force, if a dispute arises.

(a) among members, past members and persons claiming through members, past members and deceased members; or

(b) between a member, past member, or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society; or

(c) between the society or its committee and any past committee, any officer, agent or employee, or any past officer, past agent or past employee, or the nominee, heirs or legal representatives of any deceased officer, deceased agent or deceased employee of the society; or

(d) between the society any other society; or

(e) between a society and the members of a society affiliated to it; or

(f) between the society and a person other than a member


Legal Commentary on Section 69 of the Kerala Co-operative Societies Act, 1969

Introduction

Section 69 of the Kerala Co-operative Societies Act, 1969, provides the statutory framework for the resolution of disputes arising in connection with the functioning of co-operative societies in Kerala. It establishes the jurisdiction of the Co-operative Arbitration Court and the Registrar to adjudicate various types of disputes, aiming to streamline dispute resolution within the cooperative sector and prevent unnecessary recourse to civil or other courts.

What does Section 69 Say?

Section 69 mandates that disputes relating to co-operative societies, including those concerning debts, demands, employment, election disputes, and service matters, shall be referred to the Co-operative Arbitration Court or the Registrar for adjudication. It specifies the types of disputes that fall under its purview and prescribes the procedure for reference, including the manner of filing and the timeline for passing awards.

Essential Ingredients

  • Scope of Disputes: Encompasses debts, demands, employment issues, election disputes, and other service-related matters.
  • Jurisdiction: Exclusively vested in the Co-operative Arbitration Court and the Registrar.
  • Referral Procedure: Disputes must be referred in writing, accompanied by relevant documents.
  • Time Frame: The Court is mandated to pass an award within a specified period (generally within one year).
  • Types of Disputes Covered: Claims for debts, demand dues, service disputes, election disputes, and other connected issues.
  • Exclusion of Civil Courts: Civil courts are barred from entertaining disputes covered under Section 69, unless exceptions apply.

Scope of Section

Section 69 broadly covers disputes arising in connection with the management, administration, and functioning of co-operative societies, including:- Financial claims (debts, demands)- Employment and service matters- Election disputes and inter-se seniority- Disputes regarding promotion, retirement, and disciplinary actions- Disputes involving co-sureties and third-party claims related to society transactions

Notably, the scope has been expanded through amendments to include all employment-related disputes, including those involving misappropriation or misconduct, provided they are connected with employment or service within the society.

Punishment for Section

Contravention of Section 69, such as failure to refer disputes to the prescribed forum, or filing suits in civil courts contrary to the statutory mandate, can attract penalties, including fines or other disciplinary measures under the Act. Additionally, if a dispute is improperly filed outside the prescribed forum, it may be dismissed, and parties may be liable for costs.

Legal Comments (with references)

Conclusion

Section 69 of the Kerala Co-operative Societies Act, 1969, provides a specialized, exclusive forum for resolving disputes related to the management, employment, and financial claims within cooperative societies. Its broad scope has been clarified and expanded through amendments, emphasizing the importance of adhering to prescribed dispute resolution mechanisms and discouraging recourse to civil courts in matters covered under the Act. Proper understanding and application of this section are crucial for effective governance of cooperative societies and for ensuring that disputes are resolved within the statutory framework.

S.70 Decision and award on disputes

(1) The Registrar may, on receipt of the reference of a dispute under Section 69.--

(a) elect to decide the dispute himself; or

(b) transfer it for disposal to any person who has been invested by the Government with powers in that behalf; or

(c) refer it for disposal to an arbitrator appointed by the Registrar.

1[Provided that a transfer under clause (b) or a reference under clause (c) shall not be made to a person equal or superior to him in rank].

(2) The Registrar may withdraw any reference transferred under clause

(b) of sub-section (1) or referred under clause (c) of that sub-section and he may elect to decide the dispute himself or transfer it to any other person under clause (b) of sub-section (1) or refer it to any other arbitrator under clause (c) of that sub-section.

(3) The Registrar or

S.71 Winding up of Societies

(1) If the Registrar, after an inquiry has been held under section 65 or an inspection has been made under section 66 or on receipt of an application made by not less than three-fourths of the, members of a society, is of opinion that the society ought to be wound up, he may, after giving the society an opportunity of making its representation and in consultation with the financing bank to which the society is affiliated and the circle co-operative union, by order in writing direct it to be wound up.

(2) The Registrar may of his own motion by order in writing, direct the winding up of society.--

(a) Where it is a condition of the registration of the society that the society shall consist of at least twenty-five members and the number of members has been reduced to less than twenty-five; or

(b) Where the society has not commenced working within six months of its registration, unless extension of time

S.72 Liquidator

(1) Where the Registrar has made an order under section 71 for the winding up of a society, he shall appoint a liquidator for the purpose and may fix his remuneration.

(2) The liquidator shall, on appointment take into his custody or under his control all the property, effects and actionable claims to which the society, is or appears to be entitled and shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims.

(3) Where an appeal is preferred under section 83 1against order of winding up of a society made under section 71 such order shall not operate thereafter until it is confirmed in appeal:

Provided that the liquidator shall continue to have custody or control of the property, effects and actionable claims mentioned in sub-section (2) and to have authority to take the steps referred to in that sub-s

S.73 Powers of liquidator

(1) Subject to any rules made in this behalf, the whole of the assets of a society in respect of which an order of winding up has been made shall vest in the liquidator appointed under section 72 from the date on which the order takes effect and the liquidator shall have power to realize such assets by sale or otherwise.

(2) The liquidator shall also have power, subject to the control of the Registrar: -

(a) to institute and defend suits and other legal proceedings on behalf of the society by the name of his office;

(b) to determine from time to time the contribution (including debts due) to be made or remaining to be made by the members or past members or by the estates or nominees* heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the society;

(c) to investigate all claims against the society and subject to the provisi

S.74 Cancellation of Registration of a Society

When in respect of a society which has been ordered to be wound up under section 71 no liquidator has been appointed under section 72 after two months from the date of such order, or if an appeal has been filed against the order of winding up, from the date of confirmation of the order in appeal, or where the affairs of a society in respect of which a liquidator has been appointed under section 72 have been wound up or where the Registrar is satisfied that the final winding up of the affairs of the society is not possible on account of the destruction of the records, the Registrar shall, by order in writing, cancel the registration of the society and the society shall be deemed to be dissolved and shall cease to exist as a corporate body from the date of such order of cancellation.


S.74(a) Insured co-operative banks

1CHAPTER XA

INSURED CO-OPERATIVE BANKS

Notwithstanding anything contained in this Act, in the case of an insured co-operative bank.--

(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or reorganization), of the bank may be made only with the previous sanction in writing of the Reserve Bank of India;

(ii) an order for the winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in section 13D of the Deposit Insurance corporation Act, 1961 (Central Act 47 of 1961):

(iii) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the p

S.75 Enforcement of charge

Notwithstanding anything contained in Chapter IX or any other law for the time being in force, but without prejudice to any other mode of recovery provided in this Act, the Registrar or any person subordinate to him empowered by the Registrar in this behalf, may, on the application of a society by order in writing, direct the payment of any debt or outstanding demand due to the society by any member or past member or deceased member, by sale of the property or any interest therein, which is subject to a charge under sub-section (1) of section 35:

Provided that no order shall be made under this section, unless the member, past member or the nominee, heir or legal representative of the deceased member, has been served with a notice of the application and has failed to pay the debt or outstanding demand within thirty days from the date of such service.


S.76 Execution of orders, etc

Every order made under sub-section (2) of section 68 or under section 75 every decision or award made under section 70, every order made by the liquidator under section 73 and every order made by the Tribunal under section 82, section 84, section 85 or section 86 and every order made under section 83 shall, if not carried out-

(a) on a certificate signed by the Registrar or any person authorized by him in this behalf, be deemed to be a decree of a civil court and shall be executed in the same manner as a decree of such court; or

(b) where the order is for the recovery of money, be executed according to the law and under the rules for the time being in force for the recovery of arrears of public revenue due on land:

Provided that any application for such recovery shall be made--

(i) to the Collector and shall be accompanied by a certificate signed by the Registrar or by any p

S.77 Registrar or person empowered by him to be a civil court for certain purposes

The Registrar or any person empowered by him in this behalf shall be deemed, when exercising any power 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 on any application made to him for such recovery, to be a civil court for the purposes of Article 136 of the Schedule to the Limitation Act, 1963 (Central Act 36 of 1963).



Legal Comments

S.78 Attachment of property before award or order

If the Registrar is satisfied on an application, report, inquiry, or otherwise, that any person with intent to delay or obstruct the enforcement of any order, decision or award that may be made against him under the provision of this Act.--

(a) is about to dispose of the whole or any part of his property ; or

(b) is about to remove the whole or any part of his property from the jurisdiction of the Registrar, the arbitrator, or the liquidator, as the case may be, he may, unless adequate security is furnished, by order in writing direct the attachment shall have the same effect as if made by a competent civil court.


S.79 Recovery of sums due to Government

(1) All sums due from a society or from an officer or member_past member or deceased member of a society as such to the Government, including any costs awarded to the Government under any provision of this Act, may, on a certificate issued by the Registrar in this behalf be recovered in the same manner as arrears of public revenue due on land.

(2) Sums due from a society to the Government and recoverable under subsection (1) may be recovered first, from the property of the society and secondly, in the case of a society the liability of the members of which is limited, from the members, past members or the estates of deceased members subject to the limit of their liability, and in the case of other societies, from the members, past members or the estates of the deceased members:

Provided that the liability of past members and the estates of deceased members shall in all cases be subject to the provisions of section 26.

S.80 Officers, etc., of Co-operative Societies

(1) The Government shall classify the societies in the State according to their type and financial position,

(2) The Government shall, in consultation with the State Co-operative Union, fix or alter the number and designation of the officers and servants of the different classes of societies specified in sub-section (1).

(3) The Government shall, in consultation with the State Co-operative Union, make rules, 1[either prospectively or retrospectively regulating the qualification, remuneration, allowances and other conditions of service of the officers and servants of the different classes of societies specified in sub-section (1).

2[(3A) Notwithstanding anything contained in this Act or the rules made or orders issued thereunder or in the bye-laws of any society-relating to the recruitment and conditions of service of officers and servants of societies, all appointments of offic

S.80(a) Pension Scheme

1[(1) The Government may, by notification in the Gazette, frame a Self Financing Pension Scheme for the establishment of a pension Fund for payment of pension to the employees of the societies in the manner provided therein and may appoint different dates for the application of the scheme to different classes of societies.

(2) The Pension fund established under the Self Financing Pension Scheme framed under sub-section (1) shall vest in, and be administered by, such body or authority as may be specified in the said scheme.)

__________________

1. S.80A inserted by Act 16 of 1993.


S.81 Tribunal

1[(1) The Government shall constitute a single member Tribunal to exercise the powers and discharge the functions conferred on the Tribunal under this Act.

(2) A person shall not be qualified for appointment as a member of the Tribunal unless he is or has been holding the post of a District Judge in the State.

(3) The term, salary and allowances and other conditions of service of the member shall be such as may be decided by Government from time to time.

(4) The Government shall make rules for regulating the procedure and disposal of the business of the Tribunal.

____________________

1. Substituted by Act 38 of 1971.


S.81(a) Provisions as to certain pending Proceedings

Every proceeding pending before the Tribunal immediately before the commencement of this Act shall stand transferred to and will be decided by the Tribunal constituted under this Act:

Provided that all such proceedings relating to orders passed by the Registrar under Ss. 32 and 33 of the Act, shall be sent to the government for their decision.

Explanation.-- 'Proceeding' includes any appeal, revision petition or application of review].


S.82 Appeals to Tribunal

(1) Any person aggrieved by.--

(a) an order of the Registrar made under clause (ii) of sub-section (8) or clause (ii) of sub-section (9) of S. 14; or

(b) 1[xxx]

(c) 1[xxx]

(d) any decision of the Registrar made under sub-section (3) of S. 70; or

(e) any decision under sub-section (3) of S. 70 of the person invested by the Government with powers in that behalf; or

(f) any award of the arbitrator under sub-section (3) of S. 70, may, within sixty days from the date of such order, decision or award, as the case may be, appeal to the Tribunal and the Tribunal, may pass such order on the appeal as it may deem fit.

(2) An order passed by the Tribunal under sub-section (1) shall be final.

___________________

1. Omitted by Act 38 o

S.83 Appeals to other authorities

(1) An appeal shall lie under this section against.

(a) an order of the Registrar made under sub-section (2) of S. 7 refusing to register a society; or

(b) an order of the Registrar made under sub-section (4) and (6) of S. 12 refusing to register an amendment of the bye-laws of a society; or

(c) a decision of a society refusing to admit any person as a member of the society or expelling any member of the society; or

(d) an order made by the Registrar under S. 67 apportioning the cost of inquiry held under S.65 or an inspection made under S.66; or

(e) an order of surcharge made by the Registrar under S.68, or

(f) an order made by the Registrar under S71 directing the winding up of a society; or

(g) any order made by the Liquidator of a society in exercise of the power conferred on him by S.73; or

S.84 Revision by Tribunal

The Tribunal may call for and examine the record of any proceedings in which an appeal lies to it for the purpose of satisfying itself as to the legality or propriety of any decision or order passed and if in any case it shall appear to the Tribunal that any such decision or order should be modified, annulled or revised, the Tribunal may pass such order thereon as it may deem fit:

Provided that the Tribunal shall not take any action under this section if.---

(a) the time for appeal against the decision or order has not expired; or

(b) the decision or order has been made the subject matter of an appeal:

Provided further that no order shall be made under this section unless notice has been given to all interested parties and they have been given a reasonable opportunity of being heard.


S.85 Review of orders by Tribunal

(1) The Tribunal may, either on the application of the Registrar or on the application of any party, interested, review its own order in any ease and pass in reference thereto such order as it thinks fit:

Provided that no such application shall be entertained unless the Tribunal is satisfied that there has been a discovery of new and important matter or evidence which after the exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when its order was made or that there has been some mistake or error apparent on the face of the record or that there is any other sufficient reason for reviewing its order:

Provided further that no such order shall be made under this sub section unless notice has been given to all interested parties and they have been given a reasonable opportunity of being heard.

(2) An application for review under sub-secti

S.86 Interlocutory orders by Tribunal

Where an appeal is made to the Tribunal under S.82 or where the Tribunal calls for the record of a case under S.84, it may, in order to prevent the ends of justice being defeated, make such interlocutory orders pending the decision of the appeal or revision as it may deem fit.


S.87 Powers of revision of Registrar and Government

(1) The Registrar may of his own motion or on application call for and examine the record of any officer subordinate to him not being an officer exercising the powers of the Registrar and the Government may of their own motion or on application call for and examine the record of the Registrar including any officer exercising the powers of the Registrar, in respect of any proceeding, not being a proceeding in respect of which an appeal to the Tribunal is provided by S. 82, to satisfy himself or themselves as to the regularity of such proceedings, or the correctness, legality or propriety of any decision passed or order made thereon and if, in any case it appears to the Registrar or the Government that any such decision or order should be modified, annulled, reversed or remitted for reconsideration, he or they may pass orders accordingly:

Provided that every application to the Registrar or the Government for the exercise of the powers under this

S.88 Establishment of Circle Co-operative Unions

1[(1) The Government shall, by notification in the Gazette, establish a Circle Co-operative Union for each circle in the State.

(2) Each Circle Co-operative Union shall consist of.--

(a) Eight members elected, in such manner as may be prescribed, by the members of the committees of the societies within the Circle, namely.--

(i) two members from among the members of the committees of the primary credit societies under the control of the Registrar of Co-operative Societies appointed under subsection (1) of S.3;

(ii) one member from among the members of the committees of the societies, other than the primary credit societies, under the control of the Registrar of Co-operative Societies appointed under sub-section (1) of S.3;

(iii) one member from among the members of the committees of the Diary Co-operative Societies;

(

S.89 Establishment of State Co-operative Union

1(1) The Government shall, by notification in the Gazette establish a State Co-operative Union.

(2) The State Co-operative Union shall consist of*--

(a) a general body; and

(b) a managing committee.

(3) Each of the Circle Co-operative Unions, apex societies, District Cooperative Banks and central societies other than the District Cooperative Banks shall elect a delegate in such manner as may be prescribed and all such delegates, the employees' representatives, the Ex-officio members and the Government nominee in the managing committee of the State Co-operative Union shall constitute the General Body of the State Co-operative Union.

(4) The managing committee referred to in clause (b) of sub-section (2) shall consist of the following members, namely: -

(a) one member from each Revenue District in the State elected, in suc

S.90 Co-operative Societies to affiliate to State Co-operative Union

(1) Every co-operative society in the State shall, with a period of six months form the commencement of this Act, or within a period of six months from the date of its registration, whichever period expires later, get itself affiliated to the State Co-operative Union.

(2) The affiliation under sub-section (1) shall be in force for a period of one year from the date of affiliation and shall be renewed on the expiry of that period.

(3) The fees payable by a co-operative society for affiliation to the State Co-operative Union or for the renewal of such affiliation shall be such as may be prescribed.

(4) If any co-operative Society fails to affiliate to the State Co-operative Union as required by sub-section (1) or to renew such affiliation as required by sub-section (2), such society shall not be entitled to any of the privileges conferred on a co-operative society 1[under Chapter V of this

S.91 Functions of State Co-operative Union

(1) The functions of the State Co-operative Union shall be.--

(a) to organize, assist and generally develop co-operative societies;

(b) to carry on co-operative propaganda, and

(c) to spread education on co-operative principles and practices.

(2) The State Co-operative Union shall perform such other functions as may be prescribed.


S.92 Assets, liabilities etc., of Regional Union

(1) Notwithstanding anything contained in this Act or in the bye laws of the Cochin Central Co-operative Institute Ltd., the Malabar Cooperative Institute Ltd., and the South Kerala Co-operative Union Ltd., all properties and all rights of whatever kind used, enjoyed or possessed by and all interests of whatever kind owned by or vested in or held by them and all liabilities legally subsisting against them shall on and from the date of commencement of this Act and subject to such directions as may be issued by the Registrar by general or special order made in this behalf, pass to the Kerala State Co-operative Union Ltd.

(2) The duties performed and the functions discharged by the aforesaid societies shall be performed and discharged by the Kerala State Cooperative Union Ltd., and the employees of the said societies shall become the employees of the Kerala State Co-operative Union Ltd.

(3) The management of the Kerala State

S.93 Assets, liabilities etc., of State Union

On a date to be notified by the Government after the formation of the State Co-operative Union under S.89, all properties and all rights of whatever kind used, enjoyed or possessed by and all interests of whatever kind owned by or vested in or held by and all liabilities legally subsisting against the Kerala State Co-operative Union Ltd., shall subject to such directions as may be issued by the Registrar, vest in the State Co-operative Union so formed and all the employees of the Kerala State Co-operative Union Ltd., shall become the employees of the State Co-operative Union.


S.94 Offences

(1) No person other than a society shall trade or carry on business under any name or title of which the word 'co-operative' or its equivalent in any Indian language is part without the sanction of the Government:

Provided that nothing in this section shall apply in any area to the use by any person or his successor-in-interest of any name or title under which he carried on business at the date on which the Cooperative Societies Act, 1912 (Central Act 2 of 1912), the Cooperative Societies Act (Travancore Act X of 1089) or the Cochin Cooperative Societies Act, XXVI of 1113, as the case may be. came into operation in that area.

(2) Any person carrying on any trade or business in contravention of subsection (1) shall be punishable with fine which may extend to two hundred rupees.

(3) Any member or past member or the nominee, heir, or legal representative of a deceased member of a society who contraven

S.95 Cognizance of offences

No court inferior to that of a Magistrate of the first class shall try any offence under this Act and no prosecution shall be instituted under this Act without the previous sanction of the Registrar:

Provided that no such sanction shall be required in the case of an offence under sub-section (8) of Section 94.


S.96 Address of a society

Every society shall have an address registered in accordance with the rules to which all notices and communications may be sent and shall sent to the Registrar notice of any change thereof within thirty days of the change.


S.97 Copy of Act, rules and bye-laws to be open to inspection

Every society shall keep a copy of this Act, the rules and its bye-laws open to inspection free of charge at all reasonable times at the registered address of the society.


S.98 Tribunal, Registrar, etc, to have certain powers of civil court

(1) In exercising the functions conferred on it or him by or under this Act, the Tribunal, the Registrar, the arbitrator or any other person deciding a dispute and the liquidator of a society shall have all the powers of a civil court while trying a suit under Code of Civil Procedure, 1908 (Central Act 5 of 1908), in respect of the following matters, namely.--

(a) summoning and enforcing the attendance or any person and examining him on oath;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavits; and

(d) issuing commissions for examination of witnesses,

(2) In the case of any affidavit, any officer, appointed by the Tribunal, the Registrar, the arbitrator or any other person deciding a dispute or the liquidator, as the case may be, in this behalf may administer the oath to the deponent.


S.99 Orders to be pronounced

In cases where parties have been heard, the order, decision or award made or given by the Registrar or any officer or other person or a liquidator under this Act, shall be pronounced on the day on which the case is finally heard or on some future day of which due notice shall be given to the parties.


S.100 Bar of jurisdiction of courts

No civil or revenue court shall have any jurisdiction in respect of any matter for which provision is made in this Act.


S.101 Power to exempt societies

The Government, if they are satisfied that it is necessary to do so in the public interest, by general or special order for reasons to be recorded, exempt any society or any class of societies from any of the provisions of this Act or direct that such provisions shall apply to such society or class of societies subject to such modifications as may be specified in the order.


S.102 Register of members

Any register or list of members or shares kept by any society shall be prima facie evidence of the following particulars entered therein.--

(a) the date on which the name of any person was entered in such register or list as a member:

(b) the date on which any such person ceased to be a member.


S.103 Proof of entries in society's books

(1) Notwithstanding anything contained in the Indian Evidence Act a copy of any entry in a book of a society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of such entry and shall be admitted as evidence of the matters; transactions and accounts therein recorded in the same manner and to the same extent as the original entry itself is admissible.

(2) A society may grant copies of any documents obtained and kept it in the course of its business, or of any entries in such documents; and any copy so granted shall, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document, or the entries therein as the case may be.

(3) No officer of a society and no officer in whose office the books of a society are dep

S.104 Service of notice

Every notice or order issued or made under this Act may be served on any person, by properly addressing it to the last known place of residence or business of such person preparing and posting by registered post a letter containing the notice or order and, unless the contrary is proved, such service shall be deemed to have been effected at the time at which the letter would be delivered in the ordinary course.


S.105 Acts of societies not to be invalidated by certain defects

No act of a society or any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect in the constitution of the society or the committee or in the appointment or election of the officer or on the ground that such officer was disqualified for his appointment:

Provided that nothing in this section shall be deemed to apply to any act done by any society or committee or officer in cases where such defect or disqualification was previously declared by a competent authority.


S.106 Immunity for acts done or purporting to be done in good faith

No suit, prosecution or other legal proceedings shall lie against any officer or the Government for anything which is in good faith done or purporting to be done under the provisions of this Act or the rules or the bye-laws.


S.107 Companies Act, 1956, not to apply

The provisions of the Companies Act, 1956 (Central Act 1 of 1956), shall not apply to any co-operative society.


S.108 Duties of Police Officer

(1) It shall be the duty of every police officer to assist the Registrar or any person subordinate to the Registrar reasonably demanding his aid for the lawful exercise of any power vesting in the Registrar or such persons under this Act or any rule, or bye-law made thereunder.

(2) Any police officer who omits or refuses to perform any duty imposed on him under sub-section (1) shall be deemed to have committed an offence under clause (d) of Section 41 of the Kerala Police Act, 1960 (5 of 1961).


S.109 Power to make rules

(1) The Government may, for the whole or any part of the State and for any class of societies, after previous publication, by notification in the Gazette, make rules 1[either prospectively or retrospectively by] to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely.--

(i) the applicant to whom the order refusing the registration of a society may be sent by the Registrar;

(ii) the procedure and conditions for change in the form and extent of the liability of a society;

(iii) the matters in respect of which a society shall or may make bye-laws;

(iv) the procedure to be followed for amendment of bye-laws by a society;

(v) the qualifications or disqualifications of individuals who may

S.110 Repeal and savings

(1) The Madras Co-operative Society Act, 1932 (vi of 1932). as in force in the Malabar district referred to in sub-section (2) of S.5 of the State Reorganization Act, 1956 (Central Act 37 of 1956) and the Travancore Cochin co-operative Societies Act, 1951 (X of 1952) are repealed.

(2) Notwithstanding the repeal of the Madras Co-operative Societies Act, 1932 and the Travancore-Cochin Co-operative Societies Act, 1951 and without prejudice to the provisions of Ss.4 and 23 of the interpretation and General Clauses Act, 1125 (VII of 1125).--

(i) all appointments, rules and orders made, notifications and notices issued, and suits and other proceedings instituted, under any of the Acts hereby repealed shall, so far as may be, be deemed to have been respectively made, issued and instituted under this Act;

(ii) any society existing in the State on the date of commencement of this Act which has been registe

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