HARYANA CO-OPERATIVE SOCIETIES ACT, 1984
An Act to consolidate and amend the law relating to co-operative societies.
Be it enacted by the Legislature of the State of Haryana in the Thirty-fifth Year of the Republic of India as follows : -
(1) This Act may be called the Haryana Co- operative Societies Act, 1984.
(2) It extends to the whole of the State of Haryana.
In this Act, unless the context otherwise requires, -
(a) ``apex society'' means a co-operative society whose area of operation extends to the whole of the State and the primary object of which is the promotion of the objects and the provisions of facilities for the operation of other co-operative societies which are its members;
[(aa) "area of operation" means an area from which the persons are admitted as members;]
(b) ``bye-laws'' means the registered bye-laws for the time being in force;
(c) ``cadre society'' means an apex society which is required to constitute a common cadre under Section 37;
(d) ``central society'' means a co-operative society the primary object of which is to facilitate the working of other co-operative societies which are its members;
[(da) "certified copy" means a copy of an entry in the books of society togeth
(1) The Government may appoint a person to be the Registrar of Co-operative Societies for the State and may appoint other persons to assist him.
(2) The Government may by general or special order, confer on any person appointed to assist the Registrar [***] any of the powers of the Registrar under this Act and the rules.
[(3) Every person appointed to assist the Registrar shall exercise the powers conferred on him under sub-section (2), subject to the general superintendence and control of the Registrar. For carrying out the purposes of this Act, the Registrar may issue directions to the persons appointed to assist the Registrar under sub-section (1) which shall be binding upon them.]
(4) Notwithstanding anything contained in this Act, wherein power of the Registrar is exercised by any person by virtue of the order issued by the Government under sub-section (2), the order passed or decision made by suc
(1) Subject to the provisions hereinafter contained a society which has its object the promotion of the economic interests of its members in accordance with co-operative principles as prescribed or a society established with the object of facilitating the operations of such a society, may be registered under this Act with or without limited liability :
Provided that, unless the Government by general or special order otherwise directs, the liability of the society of which a member is a co- operative society shall be limited.
(2) The word ``limited'' or its equivalent in any Indian language shall be the last word in the name of every society registered under this Act with limited liability.
No society, other than a society of which a member is a co-operative society, shall be registered under this Act, unless it consists of atleast ten individuals above the age of eighteen years or such other higher number of individuals, as may be determined by the Registrar, in each case, from time to time, belonging to such number of families as prescribed.
No member other than the Government or a co-operative society shall hold more than such portion of the share capital of a co-operative society, subject to a maximum of one-fifth, as may be prescribed or have or claim any interest in the shares of such society exceeding [five lacs] rupees, whichever is less.
(1) For purposes of registration, an application in prescribed form along with proposed bye laws shall be made to the Registrar.
(2) The application shall be signed, -
(a) in the case of a society of which no member is a co-operative society, by atleast ten persons qualified in accordance with the requirements of section 5; and
(b) in the case of society of which a member is a co-operative society, by a duly authorised person on behalf of every such society and where all the members of the society are not co-operative societies by ten other members, or when there are less than ten other members, by all of them.
(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 proposed bye laws are not contrary to the provisions of this Act and the rules; and
(d) that the proposed society has reasonable chances of success; the Registrar may register the society and its bye laws.
[(2) Where the Registrar refuses to register a society, he shall communicate within a period of one month from the date of receipt of the application for registration, the order of refusal together with the reasons thereof to such the applicants as may be prescribed:
Provided that no order of refusal shall be made unless the applicant has been given a reasonable opportunity of being heard :
Provided further
Where in connection with the formation, registration or the admission of a member, a question arises whether a person resides in the area of operation of the society or whether a person belongs to a particular class or occupation or such other matter pertaining to the eligibility of the person to become a member of the society, such question shall be decided by the Registrar and his decision in this regard shall be final.]
Where a society is registered under this Act, the Registrar shall issue a certificate of registration signed by him which shall be conclusive evidence that the co-operative society therein mentioned is duly registered under this Act.
(1) Every co-operative society subject to the approval of the Registrar, may make its own bye-laws consistent with provisions of this Act and the rules made thereunder.
(2) In particular and without prejudice to the generality of the foregoing powers, such by laws may provide for all or any of the following matters, namely :-
(i) the name, address and area of operation of the society;
(ii) the objects of the society;
(iii) the services to be provided to its members;
(iv) the eligibility for obtaining membership;
(v) the procedure for obtaining membership;
(vi) the conditions for continuing as member;
(vii) the procedure for withdrawal of membership;
(viii) the transfer of membership;
(ix) the procedure for expulsion from membership;
(1) No amendment of any bye-laws of a co- operative society shall be valid, unless such amendment has been registered under this Act.
(2) The amendment to the bye-laws of a co-operative society shall be made by a resolution passed by a two-third majority of the members present and voting at general meeting of the society.
(3) No such resolution shall be valid unless fifteen clear days notice of the proposed amending has been given to the members.
(4) In every case in which a co-operative society proposes to amend its bye- laws, an application to register such amendments shall be made to the Registrar together with -
(a) a copy of the resolution referred to in sub-section (2);
(b) a statement containing the particulars indicating -
(i) the date of the general meeting at which the amendment to the bye-laws was made;
(
(1) A co-operative society, may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligation of the society or any of its members or past members and any legal proceedings pending may be continued by or against the society under its new name.
(2) Where a co-operative society changes its name, the Registrar shall enter the new name on the register of co-operative societies in place of the former name and shall amend the certificate of registration accordingly.
(1) Subject to the provisions of the Act and the rules, a co-operative society may, by an amendment of its bye-laws, change the form or extent of its liability.
(2) When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and notwithstanding any bye-laws or contract to the contrary, any member of creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or repay 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 assented, to the change.
(4) An amendment of the bye-laws of a co-operative society changing the form or extent of its liability shall not be registered or take effect until all claims of m
[(1) A co-operative society may be a resolution passed by a two-third majority of the members present and voting at a general meeting of the society, -
(a) transfer its assets and liabilities in whole or in part to any other co-operative society;
(b) divide itself into two or more co-operative societies :
Provided that where the Government has assisted the society by way of share capital contribution, the society shall take the prior approval of the Registrar.]
(2) Any two or more co-operative societies may, with the previous approval of the Registrar and by a resolution passed by a two-third majority of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new co-operative society.
(3) The resolution of a co-operative society under sub section (1) or sub- section (2) shall contain all particulars of the tr
(1) Where the Registrar is satisfied that it is essential or desirable in the interest of the co-operative society or co- operative societies that -
(i) one or more co-operative societies be amalgamated with any other co-operative society; or
(ii) two or more co-operative societies be amalgamated to form a new co-operative society,
then notwithstanding anything contained in section 13, the registrar, may, by order, after consulting the financing institutions, if any, provide for the amalgamation of the said society or societies, -
(a) with any other co-operative society, or
(b) to form new co-operative society, with such constitution, property, rights, interests, liabilities, duties and obligations, as may be specified in the order.
(2) No order shall be made under this section, unless -
(i) a copy of the proposed o
(1) Notwithstanding anything contained in this Act or the rules made thereunder or the bye-laws of the societies concerned or in any other law for the time being in force, where, in the opinion of the Registrar, a Co-operative Society, in which majority of the shares are held by the Government, is or has become sick, and that there is no possibility to rehabilitate the same, the Registrar shall, after consulting the Government and the financing institution, if any, to which such Co-operative Society is indebted, call upon the Committee concerned by notice in writing containing such particulars as may be prescribed in the notice to transfer its assets and liabilities to any other society or a company or a firm or a body whether incorporated or not on such terms and conditions as may be formulated in the manner prescribed and on such transfer, the said sick society, shall stand dissolved.
(2) If within the time specified in the notice referred to
(1) Where the whole of the assets and liabilities of a co-operative society are transferred to another co-operative society in accordance with the provisions of sections 13 and 14, the registration of the former co-operative society shall stand cancelled and the society shall be deemed to have been dissolved.
(2) Where one or more co-operative societies are amalgamated with any other co-operative society in accordance with the provisions of clause (i) of sub section (1) of section 14, the registration of the co-operative society or co-operative societies, as the case may be, so amalgamated shall stand cancelled and the same shall be deemed to have been dissolved on the date of the order of amalgamation and the members thereof shall become the members of other co-operative society.
(3) Where two or more co-operative societies are amalgamated into a new co- operative society in accordance with provisions of sections 13 and 14
No person shall be admitted as member of a co-operative society except the following, namely :-
(a) an individual competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872);
(b) any other co-operative society; [**]
(c) the Government [; and]
[(d) such class or classes of persons or association of persons, corporate bodies, firms or joint stock companies, as provided in the bye-laws of the society.]
Provided that every person eligible for admission as a member of a co-operative credit and service society, the farmers service society or primary agricultural development bank shall be deemed to have been admitted as a member thereof on the expiry of 60 days from the date of receipt of the application for such admission in the office of the society :
Provided further that the Registrar, of his own motion or on a compl
No individual shall be admitted as member of a central or apex society [unless such society has been excepted by the Registrar by a general or special order].
(1) A co-operative society may admit any person [or self-help group] or a co- operative society or any other statutory body notified by the Government in this behalf as an associate member in accordance with its bye laws.
[Explanation. - For the purposes of this sub-section "self-help group" means and includes a group of persons for their economic development.]
(2) An associate member shall not be entitled to any share in any form whatsoever, in the assets or profits of the co-operative society.
(3) Save as provided in this Act, an 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.
No member of a co-operative 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 specified in the bye-laws.
Any person desirous of making a deposit in any unit of Co-operative Credit Structure other than Co-operative Banks, shall become a member of that society and on admission as such, he shall be entitled to full membership voting rights.]
Every member of a co-operative society shall have one vote in affairs of the society :
Provided that -
(a) in the case of equality of votes, the chairman shall have a second or casting vote;
(b) an associate member shall not have the right of vote;
(c) where the Government is a member of the co-operative society, each person nominated by the Government on the committee shall have one vote;
(d) a member in default of any sum due from him to the society shall not be eligible to exercise his right of vote;
Explanation. - For the purpose of this clause, the expression, `member' does not include a society.
(e) a society brought under the process of winding up or in liquidation shall not be eligible to exercise its right of vote.
Every member of a co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy :
Provided that -
(a) a co-operative society which is a member of another co-operative society may, subject to the rules, appoint one of its committee members through a resolution of its committee to vote on its behalf in the affairs of the other society.
(b) in case of a primary society which is a member of another co- operative society may subject to the rules, appoint one of its members to vote on its behalf in the affairs of the other society.
The transfer of the share or interest of a member, in the capital of a co-operative society shall be subject to such conditions as to the maximum holding as are specified in section 6;
[Provided that no transfer shall be allowed unless such shares have been held by the member at least for a period of two years.
Explanation. - For the purposes of this section "capital" refers to the capital owned by members in their individual capacity in the society's funds.]
(1) On the death of a member, a co-operative society may transfer the share or interest of the deceased member to the person nominated in accordance with the rules made in this behalf and if there is no person so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member or pay to such committee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest are ascertained in accordance with the rules or bye-laws :
Provided that -
(i) in the case of a co-operative society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid;
(ii) in the case of a co-operative society with limited liability, the society shall transfer the share or interes
(1) Subject to the provisions of sub section (2), the liability of the past member or of the estate of a deceased member of a co-operative 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 co-operative society is ordered to be wound up under section 105, the liability of a past member or of the estate of a deceased member who ceased to be 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.
(1) The final authority in a co- operative society shall vest in the general body of members :
Provided that where the bye-laws of a co-operative society provide for the constitution of smaller body consisting of delegates of members of the society elected or selected in accordance with such bye laws, the smaller body shall exercise such power of general body as may be prescribed or as may be specified in the bye-laws of the society.
(2) Notwithstanding anything contained in section 21, each delegate shall have one vote in the affairs of the society.
(3) A general meeting of a co-operative society shall be held once in a year for the purpose of -
(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year;
(b) consideration of the audit report and the annual report;
[(c) review of the pe
(1) A co-operative society may, from time to time, call a general meeting or a committee meeting of a society and shall call such meetings within one month after receipt of a requisition in writing from the Registrar or from such member or members or proportion of total number of members as may be provided in the bye-laws in case of general meeting or such members of committee as may be prescribed in the bye-laws, in case of committee meeting.
(2) If a general meeting or committee meeting of a co-operative society is not called in accordance with the requisition referred to in sub section (1), the Registrar or any person authorised by him in this behalf shall have the power to call such a meeting.
[(3) If a general body meeting is not held within the period as specified in sub-section (3) of Section 25 or the requirements of sub-section (1) of this section are not complied with, the Registrar shall, after giving an opportun
(1) The Registrar may be order in writing, suspend the resolution of a managing committee or of a sub-committee of a co-operative society if in his opinion the resolution is in excess of the powers conferred by this Act, rules or bye laws or the execution of the resolution will be contrary to the interest of the society or the interest of the members thereof or is likely to cause waste or damage of the funds of the society:
[Provided that such suspension shall not exceed a period of six months.]
(2) When the Registrar makes any order under sub-section (1), he may after giving the committee or sub committee, as the case may be, an opportunity of being heard, rescind such resolution or may order that such resolution may continue in force with or without modification permanently or for such period as he may think fit :
Provided that such resolution may be rescinded or modified even if the same could not b
(1) The members of the committee of a co-operative society shall be elected in the manner prescribed and no person shall be so elected unless he is a member of the society:
[Provided that at least one member belonging to the Scheduled Caste and one woman member shall also be represented through election in every committee of a co-operative society in the manner prescribed :
Provided further that at least one member belonging to backward class shall also be represented through election in the committee, if their number is ten percentum or more of the total membership of the society, in the manner prescribed.]
(2) The election process once started shall not be postponed and disputes, if any, pertaining to the election, shall be entertained after the completion of the election process, in accordance with the provisions of this Act.
Explanation. - The election process shall be deemed
(1) Notwithstanding anything contained in sub-section (1) of section 28, -
(a) where the Government has -
(i) subscribed to the share capital of a co-operative society ; or
(ii) guaranteed the principal and interest in respect of debentures issued by the society; or
(iii) guaranteed the principal and interest in respect of loans and advances to the society; or
(iv) assisted the society with loans and grants;
by not less than one lakh rupees, the Government or any person authorised by it shall have the right to nominate on the managing committee of such society not more than three members or one third of the total number of elected members of such committee, whichever is less;
[Provided that there shall not be any nominee of the Government in the committee of Primary Agriculture Co-operative Society irrespective of
Notwithstanding anything contained in the bye-laws of a co-operative society, the members of the committee including those nominated under section 29, shall elect from amongst themselves office bearers within sixty days of the date of election of the members of the committee. The meeting for such election shall be summoned and presided over by the Presiding Officer appointed by the Registrar :
Provided that the election of office bearers shall not be postponed in case no person is nominated under section 29 to the said Committee :
Provided further that the election of office bearer of a primary, central and apex milk producers societies shall be conducted in accordance with their bye laws :
Provided further that where the Government have subscribed to the share capital of an apex co-operative society or a co-operative sugar mill to the extent of ten lakh rupees or more the Government may, notwithstandi
The elected members of the committee may bring a motion of no confidence against the elected office bearers i.e. Chairman and Vice-Chairman other than the Government nominees by levelling specific allegations against such Chairman and Vice-Chairman. If the motion of no confidence is passed by a resolution of 2/3rd majority of the total number of elected members of the society concerned at a meeting specially convened for the purpose, the Chairman or Vice- Chairman shall cease to function as such with immediate effect and the election of new office-bearers shall be held within two months of the removal in accordance with section 30 of the Act :
Provided that no such meeting shall be convened before the expiry of one year from the date on which the election of the Chairman or Vice-Chairman, as the case may be, was notified and no further meeting shall, at any time thereafter, be convened for considering a similar motion against such office bearer/
(1) Where the Government has subscribed to the share capital of a co-operative society to the extent of ten lakh rupees or more, the Government may notwithstanding anything contained in the bye-laws of the society, nominate another member in addition to those nominated under section 29 and appoint him as Managing Director :
Provided that no person shall be appointed as Managing Director of a co-operative society unless he is a member of the Indian Administrative Service of Haryana Civil Service (Executive Branch) or Class I or II Officer of the Co-operative Department, Haryana, [or any other professional having qualifications and experience as may be prescribed] except in the case of the Haryana State Co-operative Labour and Construction Federation Limited, the Haryana Housing Apex Finance Society Limited and the Haryana Co-operative Dairy Development Federation Limited where technical persons may be appointed as Managing Directors:
Notwithstanding anything contained in this Act, or the rules framed thereunder of the bye laws of a co-operative society, the first committee of a newly registered society, shall be elected by the promoter members as contained in the application for registration. The tenure of the said committee shall not exceed one year from the date of its registration.
(1) Wherein any co-operative society, a committee constituted in accordance with the provisions of this Act, rules or bye-laws does not exist or has ceased to exist, the Registrar may, notwithstanding anything to the contrary contained in the Act or rules or bye-laws, appoint administrators not exceeding five for a period of six months or till a committee is constituted under section 28 whichever is earlier :
Provided that the Managing Director appointed under section 31, if any, shall be one of the administrators :
Provided further that the Registrar shall cause the election to be held within the period of six months or the extended period.
[Provided further that the Government may further extend the period of one year up to [two years] , either prospectively or retrospectively. In case the period is extended retrospectively, the actions taken by the administrators after the expiry of the previous ext
(1) If in the opinion of the Registrar, a committee persistently makes default or is negligent in the performance of duties imposed on it by this Act or the rules or the bye-laws or commits any act which is prejudicial to the interest of the society or its members, the Registrar may after giving the committee an opportunity to state its objections, if any, by order in writing, remove the committee, and order fresh election of the committee or appoint administrators [for a period of one year which may be extended by the Government for a further period of one year]:
[Provided that if the committee of a co-operative bank is superseded, the Registrar shall do so with the approval of the Reserve Bank :
Provided further that the Registrar shall ensure implementation of regulatory prescriptions of the Reserve Bank including supersession of the managing committee of Central Co-operative Bank or the Haryana State Co- operative Apex
(1) If in the opinion of the Registrar, any member of the committee persistently makes default or is negligent in the performance of the duties imposed on him by this Act or rules or bye laws or commits, any act which is prejudicial to the interest of the society or its members, the Registrar may after giving the member an opportunity to state his objections, if any, by order in writing, remove the member and get the vacancy filled up for the remaining period of the outgoing member, according to the provisions of this Act, rules and bye laws.
(2) Where the Registrar while proceeding to take action under sub section (1) is of the opinion that the suspension of the member during the period of proceedings is necessary in the interest of the co-operative society, he may suspend the member :
Provided that if the member so suspended is not removed, he shall be reinstated and the period of suspension shall count towards his tenure
No act of a co-operative society or any committee or any officer shall be deemed to be invalid by reason only of the existence of any defect in procedure or in the constitution of the society or of the committee or any vacancy in the membership or office thereof or in the appointment or election of an officer or on the ground that such officer was disqualified for appointment or election.
(1) Subject to the provisions of this Act and any other law for the time being in force, a federal co-operative may discharge the functions to facilitate the voluntary formation and democratic functioning of co-operative societies as federal co-operative or co-operative based on self-help and mutual aid.
(2) Without prejudice to the generality of the provisions contained in sub- section (1), the federal co-operative may -
(a) ensure compliance of the co-operative principles;
(b) make model bye-laws and policies for consideration of its member co-operatives;
(c) provide specialized training, education and data-based information;
(d) undertake research, evaluation and assist in preparation of perspective development plans for its member co-operative;
(e) promote harmonious relations amongst member co-operative;
(f) he
(1) The Registrar may require an apex society to constitute a common cadre of all or a specific class of employees in the service of that society or in the services of the central societies which are members of the apex society, or of the service of the primary societies which are members of the apex society or the aforesaid central societies.
(2) When a common cadre is constituted under sub-section (1), the Registrar shall make rules to regulate recruitment and the conditions of service of such employees, and their strength in consultation with the cadre society :
Provided that the Registrar may add or delete any class of employees from the common cadre in consultation with the cadre society.
[(3) Notwithstanding anything contained in this section there shall not be any cadre system in Co-operative Credit Structure.
(4) The Registrar shall circulate guidelines in consultation wit
(1) Each cadre society shall submit an annual review of its working and of its member societies, to the Registrar, within six months of the close of co-operative year, as may be prescribed, in the form specified by the Registrar.
(2) The Registrar may issue such directions as he considers necessary for the efficient conduct of the business of cadre society or its member societies.
A co-operative society registered under this Act shall be 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 contract, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it is constituted.
Any register or list of members kept by any co- operative society shall be #25;prima facie#25; evidence of any of the following particualrs entered therein namely :-
(a) the date on which any person became a member;
(b) the date on which any such member ceased to be a member;
(c) the number of shares held by such member and the date from which so held; and
[(d) the nominees of a member, if any :
Provided that every individual enrolled as a member in a primary society shall furnish his photograph, his permanent address and correspondence address to the society and shall communicate the change, if any, within a period of fifteen days of such change to the Registrar."]
Any register or list of mortgages and changes kept by any co-operative society shall be prima facie evidence of any of the following particulars entered therein, namely :-
(a) the date on which the mortgage or charge was created by a member in favour of the society;
(b) the particulars of the land or other immovable property mortgaged or charged; and
(c) the date on which declaration of the mortgage or charge was sent to the sub-registrar or revenue authority, as the case may be.
(1) A copy of any entry in a book of co-operative 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 #25;prima facie#25; evidence of the existence of such entry and shall be admitted as evidence of matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is admissible.
(2) No officer of a co-operative society and no officer in whose office the books of a co-operative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this Section or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under order of the court or arbitrator made for special cause.
Nothing in clauses (b) and (c) of sub section (1) of section 17 of the Registration Act, 1908, shall apply to -
(i) any instrument relating to shares in a co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(ii) any debenture 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 thereof 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 benefit of the holders of such debentures; or
(ii) an endorsement upon or transfer of any debenture issued by any such society.
(1) The Government may, by notification, remit in respect of any class of co-operative societies -
(a) the stamp duty chargeable under any law for the time being in force in respect of any instrument executed by or on behalf of a co-operative 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 this Act, in cases, where, but for such remission the co- operative society, officer or member, as the case may be, would be liable to pay such stamp duty; or
(b) any fee payable under any law for the time being in force relating to the registration of documents or court fees.
(2) The Government may, by notification, exempt any class of co-operative societies from -
(a) land revenue; and
(b) taxes on sale or purchase of goods.
(1) Notwithstanding anything contained in any law for the time being in force a member of a co-operative society may execute an agreement in favour of the society providing that is employer 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 agreement, the employer shall, if so required by the co-operative society by a requisition in writing and [within a period of fourteen days from the date of deduction] that the whole of such debt or demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society. Such payment shall be valid discharge of the employer for his liability to pay the amount deducted.
(3) If after the receipt of a requ
Notwithstanding any thing contained in any law for the time being in force, the Government may -
(a) subscribe to the share capital of a co-operative society;
(b) give loans or makes advances to a co-operative society;
(c) guarantee the repayment of principal and payment of interest on debentures issued by a co-operative society;
(d) guarantee the repayment of share capital of a co-operative society and dividends thereon at such rates as may be specified by the Government;
(e) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society; and
(f) give financial assistance in any other form including subsidies to any co-operative society.
A co-operative society or a class of co-operative societies shall maintain the accounts books and other record in such form and manner as may be directed by the Registrar by a general or special order, from time to time.
(1) A co-operative society shall prepare a balance sheet, profit and loss account, trading account and such other statements relating to the working of the society on such intervals as may be specified by the Registrar from time to time.
(2) If the Registrar so directs, a copy of the statements referred to in sub- section (1) shall be supplied by a co-operative society to him or cadre society as the case may be by such date as may be specified by him.
[(3) Co-operative Credit Structure other than co-operative bank shall abide by all such directions regarding financial norms as may be specified by the Registrar in consultation with the National Bank.]
A co-operative society shall maintain a list of such of its employees or members of its committee as having custody of books, record, securities and other property of the society in the manner prescribed.
If the record, registers, the books of accounts, funds and other property of a co-operative society are likely to be tampered with or destroyed, misappropriated or misapplied or if a person having its custody fails to hand over its charge to a person entitled to receive such charge, the Register may, #25;suo motu#25; or on an application of an aggrieved party, authorise any officer not below the rank of Inspector, Co- operative Societies to enter and search any place where the record and the property are kept or are believed to be kept and to seize such record and property and hand over such record and property to the person authorised by the Registrar. [The person so authorized may seek necessary help from police authority having jurisdiction in the area when need arises in seizing the record and property and the police shall provide the necessary assistance.]
(1) Where the books, record, cash, securities and other property belonging to the society is not produced or handed over to person entitled to the same under this Act, the Registrar may suo motu or on an application of the committee, any creditor, cadre society, auditor, liquidator or inspecting officer, inquiry officer enquire himself direct or any person authorised by him by an order in writing in this behalf to inquire into the conduct of the custodian of books who has failed to produce or hand over the record and other property.
(2) Where an inquiry is made under sub section (1) the Registrar may after giving the person concerned an opportunity of being heard, make an order requiring the custodian to produce or hand over the money, books, record, securities or property or any part thereof to the persons entitled to receive and may require such person to pay compensation to such persons and to such extent as the Registrar may consider just an
(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 or any prior claim of the Government [in respect of recovery of taxes under any law enacted by Parliament], any debts or outstanding demand owing to a co-operative society by any member or past member or deceased member shall be a first charge upon the crops and other agricultural produce, cattle fodder, agricultural or industrial implements or machinery or raw material for manufacture and any finished products manufactured from such raw materials, belonging to such member, past member or forming part of the estate of the deceased member, as the case may be.
(2) No person shall transfer any property which is subject to a charge under sub section (1) except with the prior permission in writing of the co- operative society which holds the charge.
Notwithstanding anything contained in this Act or any other law for the time being in force -
(a) it shall be lawful for a member, if he owns any land or any other immovable property or has interest of any land as tenant, to create a charge or mortgage in favour of a society as security for any financial assistance given to him by it;
(b) where a mortgage or a charge is to be created under clause (a) the member shall make a declaration in the prescribed form which shall state that the applicant thereby creates a mortgage or charge on such land, building or immovable property or interest specified in the declaration for the payment of the amount of loan which the society may advance to the member in pursuance of the application and for all future advances, if any, required by him which the society may make to him subject to such maximum as may be determined by the society together with interest on such amount of the loan and
(1) Notwithstanding anything contained in the Registration Act, 1908, mortgage or a charge in respect of which a declaration has been made under clause (b) of section 53 or in respect of which a variation has been made under clause (c) of that section in favour of a society shall be deemed to have been duly registered in accordance with the provisions of that Act with effect from the date of such mortgage, charge, or variation as the case may be.
(2) The society shall send the declaration in duplicate, to the Sub-Registrar within the local limits of whose jurisdiction the whole or any part of the property mortgage or charged is situated, by registered post, acknowledgment due, and shall retain a copy thereof for its own record.
(3) The Sub-Registrar receiving the declaration referred to in sub section (2) shall record in a register to be maintained in this behalf the fact of the receipt of such declaration or variation for
A co-operative society shall have a charge upon the share or contribution or interest in the capital and on the deposits of a member or past member or deceased member and upon any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member or the estate of such deceased member to the society and may set off any sum credited or payable to a member or past members or the estate of a deceased member in or towards payment or any such debt.
Subject to the provisions of section 55, the share or contribution or interest of a member or past member or deceased member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member and a receiver under the Provincial Insolvency Act, 1920, shall not be entitled to or have any claim on such share or contribution or interest.
Where a society borrows from another society for making advances to its members against mortgages or charges or transfer of its assets by such members, such mortgages or charges and assets shall be deemed to have been transferred to the latter society from the date of creation of the mortgages or charges or the date of transfer of assets, as the case may be.
Notwithstanding anything contained in the Transfer of Property Act, 1882 or any other law for the time being in force, the duration of any lease executed by a member of property mortgaged or charged to a co- operative society, shall not exceed five years.
Notwithstanding anything contained in the Provincial Insolvency Act, 1920, a mortgage or charge created by a member in favour of a co-operative society shall not be called in question on the ground that it was not created in good faith, for valuable consideration or on the ground that it was executed in order to give the society a preference over the other creditor of the member.
Where a mortgage or charge is created in favour of a co-operative society for payment of prior debts of the members, the society may, notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882, by notice in writing require any person to whom any such debt is due, to receive payment of such debt or part thereof from the society, within such period as may be specified in the notice. If any such person fails to receive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice :
Provided that where there is dispute as regards the amount of any such debt, the person to whom such debt is due shall be bound to receive payment of the amount offered by the society towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him.
Notwithstanding that a mortgage or charge created in favour of a co-operative society has been transferred or deemed to have been transferred to another society, under the provisions of section 57,-
(a) all moneys due under the mortgage or charge shall, in the absence or any specific direction to the contrary issued by the other society or the trustee and communicated to the member, be payable to the socieity which has advanced loan to the member and such payment shall be as valid as if the mortgage and charge had not been so transferred; and
(b) such society shall, in the absence of any specific direction to the contrary issued by the trustee and communicated to such society, be entitled to sue on the mortgage or charge or take any other proceedings for the recovery of the moneys due under the mortgage or charge.
Where a mortgage or charge created in favour of a society is called in question on the ground that it was executed by a person governed by custom or the manager of Joint Hindu Family for a purpose not binding on the reversioners or the members thereof, whether major or minor, the burden of proving the same, notwithstanding any law to the contrary, be on the party raising it.
(1) A co-operative may receive deposits, raise loans and receive grants from external sources to such extent and under such conditions as may be specified in the bye-laws :
Provided that the total amount of deposits and loans received during any financial year shall not exceed ten times of the sum of subscribed share capital and accumulated reserves :
Provided further that while calculating the total sum of subscribed share capital and accumulated reserves, the accumulated losses shall be deducted.
(2) Subject to the provisions of sub-section (1), a co-operative society may accept funds or borrow funds for the fulfillment of its objects on such terms and conditions as are mutually contracted upon in the interest of the society.
(3) A co-operative society may issue non-convertible debentures or other instruments subject to the provisions of any law for the time being in force to ra
(1) A co-operative society shall advance loans to its members, its employees under a scheme approved by the Registrar or to its depositors on the security of their deposits :
Provided that a co-operative society may make a loan to another co- operative society who is not its member with the prior approval of the Registrar.
(2) At least one-third of the total amount of loan to be advanced by a co- operative credit and service society, farmer's service society, primary land development bank or a co-operative urban bank, in a year shall be sanctioned to the members of the weaker section if they apply for the grant of loan.
(3) Loans and advances shall be made on such terms and conditions against such securities, guarantee and for such purposes as may be prescribed:
Provided that all long term loans shall be advanced against mortgage or charge on land or other immovable property.
<Notwithstanding anything contained in this Act, rules, bye-laws or in any agreement in this behalf, a co-operative society shall not recover interest on short term loans given to members in excess of the principal amount of the loan advanced.
Explanation. - For the purpose of this section, short term loan means a loan granted for a period upto fifteen months.
(1) With the previous sanction of the trustee, a co-operative society may float debentures or issue bonds of one or more denominations, for such periods, as it may deem expedient, on the security of the mortgages and charges and other assets transferred or deemed to have been transferred by a society to it and on the security of all or any of its other assets.
[Provided that the debentures may be floated or bonds issued for long-term loans advanced without mortgage or charge on land or other immovable property subject to the condition that guarantee is given by the State Government for the repayment of the loans so advanced.]
(2) Such debentures or bonds may contain a term fixing a period not exceeding twenty five years from the date of issue during which they shall be irredeemable or reserving to the borrowing society the right to call in at any time any of the dentures of bonds in advance of the date fixed for redemption,
(1) Where the funds are raised by floating of debentures or issue of bonds, the Registrar shall be the trustee for the purposes of securing the fulfilment of the obligation of the borrowing society.
(2) The mortgages, charges and other assets transferred to the borrowing society shall vest in the trustee from the date of transfer.
(3) The holders of the debentures or bonds shall have a first charge on all such mortgages, charges and assets and on the amount paid under such mortgages of charges and remaining in the hands of the society issuing dentures or of the trustee and on their other properties.
(4) The powers and functions of the trustee shall be governed by the instrument of trust executed between the borrowing society and the trustee which may be modified, from time to time, by mutual agreement between them.
The principal and interest on the debentures or bonds issued under section 66 shall be guaranteed by the State Government on such terms and conditions as it may deem fit to impose.
The borrowing society may, subject to the approval of the trustee and of the State Government, make regulations -
(i) for fixing the period of debentures or bonds and the rate of interest payable thereon;
(ii) for calling in debentures or bonds after giving notice to the debenture or bond holders;
(iii) for the issue of new debentures or bonds in place of debentures or bonds damaged or destroyed;
(iv) for converting one class of debentures or bonds into another class bearing a different rate of interest; and
(v) generally for carrying out the provisions of section 66.
Where any property mortgaged and charged in favour of a co-operative society is wholly or partially destroyed, or for any reason the security is rendered insufficient and the loanee, having been given a reasonable opportunity by the society to provide further security in order to make the deficiency good or to repay such portion of the loan as may be determined by the society, has failed to provide such security or repay such portion of the loan, the loan shall be deemed to have fallen due at once and the society shall be entitled to take action against the loanee for the recovery thereof.
Explanation. - Security shall not be deemed to be insufficient within the meaning of this section unless the value of the property mortgaged or charged including improvements made thereon exceeds the amount for the time being, due on the mortgagee or charge by such proportion as may be prescribed in the rules or regulations or bye-laws of the borrowing society
When a loan advanced by a society is not utilised for the purpose for which it was advanced, the society may, irrespective of the period for which the loan was advanced, recall and recover the entire loan along with interest and costs and charges, if any, incurred in advancing and effecting recovery after giving the debtor an opportunity of being heard.
Explanation. - For the purposes of this Chapter, the borrowing society means a society which borrows loans by way of floating debentures or issuing bonds.
(1) If an instalment of a loan advanced against a mortgage or charge created in favour of a society under section 53 or any part of such instalment has remained unpaid for more than three months from the date it fell due, the society may in addition to any other remedy available to it apply to the Registrar for the recovery of such instalment or part by the distraint and sale of the produce of the charged or mortgaged land [***].
(2) On receipt of such application the Registrar may, notwithstanding anything contained in the Transfer of Property Act, 1882 or any other law for the time being in force, take action for distraint and sale of such produce :
Provided that no distraint shall be made after the expiry of [six months] from the date on which the instalment fell due.
(3) The value of the property distrained that be, as nearly as possible, equal to the amount due and the expenses of the distraint an
(1) Before or at the time when a distraint is made under section 72, the distrainer shall serve or cause to be served upon the defaulter a written demand specifying the amount for which the distraint is made.
(2) The demand shall be dated and signed by the distrainer and shall be served upon the defaulter by delivering a copy to him or to some adult male member of his family at his usual place of abode or to his authorised agent, or when such service cannot be effected, by affixing a copy of the demand on some conspicuous part of his abode and land.
(1) If within fifteen days from the date of service of the demand referred to in section 73, the defaulter does not pay the amount for which the distraint was effected, the distrainer may sell in auction the distrained property or such part thereof as may in his opinion be necessary to satisfy the demand together with the expenses of the distraint and the cost of the sale:
[Provided, however, that the sale of the distrained property shall be subject to the confirmation by the Registrar.]
(2) From the proceeds of such sale, a deduction shall be made at a rate not exceeding ten paise in a rupee on account of the costs of the sale.
(3) From the balance shall be deducted the expenses incurred by the distrainer on account of the distraint.
(4) The remainder, if any, shall be applied to the discharge of the amount for which distraint was made.
(5) The surplus, if a
(1) Notwithstanding anything contained in the Transfer of Property Act, 1882, or any other law for the time being in force, where a power of sale without the intervention of the court is expressly conferred on a society by declaration creating the mortgage, the society or any person authorised by such society in this behalf shall, in case of default of payments of the mortgage money or any part thereof, have power, in addition to any other remedy available to the society, to bring the mortgaged property to sale without the intervention of the Court.
(2) No such power shall be exercised unless and until, -
(a) the society has previously authorised the exercise of the power conferred by sub section (1), after hearing and deciding the objections, if any, of the mortgagor or any other person having any interest in the mortgaged property;
(b) notice in writing requiring payment of such mortgage money or pa
(1) In exercise of the power of sale conferred by section 75, the society or any person duly authorised by the society, may apply to the sale officer appointed in that behalf under section 84 to sell the mortgaged property or any part thereof and such officer shall, after giving notice in writing to all the persons referred to in section 75, sell such property in the manner prescribed subject any previous charge on the basis of a registered deed.
(2) The sale shall be by public auction and shall be held in the village [or town] where the mortgaged property is situated or at the nearest place of public resort if the sale officer is of opinion that the property is likely is to fetch better price.
(3) The Registrar may set aside a sale on the application of the mortgagor or any other person interested in the mortgaged property, presented to him within 30 days of the sale, if in his opinion there has been an illegality or mater
(1) When a mortgaged property has been sold under this Chapter, the mortgagor or any person having a right or interest therein affected by the sale, may, at any time within thirty days from the date of sale, apply to the society, to have the sale set aside on his depositing at the office of the society -
(a) for payment of the said society, the amount specified in the proclamation of sale together with subsequent interest and the costs, if any, incurred by the society in bringing the property to sale; and
(b) for payment to the purchaser, a sum equal to two per cent of the purchase money.
(2) If such deposit is made, the society shall make an order setting aside the sale.
(3) Where no application is made under sub section (1) or where such application is made and disallowed, the society shall apply to the Registrar to make an order confirming the sale and on his confirming the sa
(1) The proceeds of every sale under this Chapter shall be applied by the sale officer, firstly in payment of all costs, charges and expenses properly incurred by him as incidental to the sale or any attempted sale determined in the prescribed manner; secondly in payment of all interest due on account of the mortgage in consequence whereof the mortgaged property was sold; thirdly, in payment of the principal money due on account of the mortgage; and lastly, the residue, if any, shall be paid to the person proving himself interested in the property sold or, if there are more such persons than one, then to such persons according to their respective interest therein upon their joint receipt.
(2) Any person dissatisfied with the decision of the sale officer in regard to the distribution of such residue may, within thirty days of the communication to him of such decision, institute a suit in a civil court to establish the right he claims.
Where a sale of mortgaged property has become absolute, the sale officer shall grant a certificate specifying the property sold and the name of the person who at the time of the sale is declared to be purchaser. Such certificate shall bear date and the day on which the sale became absolute.
(1) Where the mortgaged property sold is in the occupation of the mortgagor or of some person on his behalf or of some person claiming under a title other than a lease for a period not exceeding five years created by the mortgagor subsequent to the mortgage in favour of the society and a certificate in respect thereof has been granted under section 79 the civil court shall, on the application of the purchaser, order delivery to be made by putting such purchaser, or any person, whom he may appoint to receive delivery on his behalf, in possession of the property.
(2) Where the property sold is in the occupation of a tenant or other person entitled to occupy the same and a certificate in respect thereof has been granted under section 79, the civil court shall, on the application of the purchaser, and after notice to such tenant or other person, order delivery to be made by affixing a copy of the certificate of sale in some conspicuous place on the
Notwithstanding anything contained in any law for the time being in force including a law imposing a ceiling on agricultural holdings, it shall be lawful for the society to purchase any mortgaged property sold under this Chapter, and the property so purchased shall be disposed of by such society by sale within such period as may be fixed by the Registrar.
(1) The society which has power to sell under section 75 may, appoint in writing a receiver of the produce and income of the mortgaged property or any part thereof and such receiver shall be entitled either to take possession of the property or collect its produce and income as the case may be, to retain out of any money realised by him, his expenses of management including his remuneration, if any, as fixed by the society and to apply the balance in accordance with the provision of sub section (8) of section 69-A of the Transfer of Property Act, 1882.
(2) A receiver appointed under sub section (1) may, for sufficient cause and on application made by the mortgagor, be removed by the society.
(3) A vacancy in the office of the receiver may be filled up by the society.
(4) Nothing in this section shall empower the society to appoint receiver where the mortgaged property is already in the possession of a
When a sale, purported to have been made in the exercise of power of sale conferred by section 75, has been confirmed under sub section (3) of section 77, the title of the purchaser shall not be impeachable on the ground that no case had arisen to authorise the sale or that due notice was not given or that the power was otherwise improperly or irregularly exercised but any person dumnified by an unauthorised or improper or irregular exercise of the power shall have his remedy in damages against the society.
The Government may appoint any person not below the rank of a gazetted officer as a sale officer for the purpose of conducting sales under this Chapter.
(1) A co-operative society may invest or deposit its funds -
(a) in the post office savings bank;
(b) in any of the securities specified in section 20 of the Indian Trust Act, 1882;
(c) in the shares or securities of any other co-operative society;
(d) with any bank carrying on the business of banking approved for this purpose by the Registrar; or
(e) in any other mode as may be prescribed.
[(2) Co-operative Credit Structure may invest its funds with any regulatory financial institution.]
No part of the funds created out of the profit of a co-operative society shall be divided by way of bonus or dividend or otherwise among its members.
(1) A co-operative society may distribute profits as per audited balance sheet for any year and from the remainder of such profits of past years, among the members to such extent and under such conditions as may be prescribed by rules or bye laws :
Provided that -
(a) at least 10% of the profits of any year are carried each to the reserve fund and the bad and doubtful debt fund;
(b) not exceeding 5% of the profits is carried to the co-operative education fund;
(c) such percentage of the profits to carry to such other funds as are specified in the bye-laws or by the Registrar; and
[(d) such profits may also be utilized for such purposes and in such percentage as may be prescribed.]
(2) The Registrar may require a co-operative society not to invest the whole or a part of its funds referred to in sub-section (1) in the business of the socie
(1) It shall be competent for the government to constitute one or more guarantee funds on such terms and conditions, as it may deem fit, for the purposes of meeting losses that might arise as a result of loans being made by a co-operative society on titles to immovable property subsequently found to be defective or for any other purposes under this Act, for which in the opinion of the Government it is necessary to provide for or create a separate guarantee fund.
(2) Such society shall contribute to such funds at such rate and the constitution, maintenance and utilisation of such funds shall be governed by such terms as may be prescribed.
No co-operative society shall purchase, acquire, lease, sell any land or construct any building or other immovable assets of the society except with the prior approval of the Registrar.].
No co-operative society shall write off as a whole or part of any debt or other sum due to it or any assets without the prior sanction of the Registrar.
[Save as provided in section 34 of the 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 reorganisation) 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 13-D of the Deposit Insurance and Credit Guarantee Corporation Act, 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 proper management of the bank, an order shall be made by the Registrar for the removal of the committee of m
[(1) Every co-operative society shall get its accounts audited at least once in each year by a person authorized by the Registrar by general or special order in this behalf failing which the Registrar shall get the accounts of the society audited at the expense of the society :
Provided that the Registrar will make necessary arrangement of the audit of societies through his officers or other auditors duly authorized by him.]
(2) The audit under sub section (1), shall include valuation of assets and liabilities, an examination of balance sheet, profit and loss accounts and overdue debts, if any, the verification of the cash balance and securities.
(3) The person auditing the accounts of co-operative society shall have free access to the books, accounts, papers, vouchers, stock and other property of such society and shall be allowed to verify its cash balance and securities.
(4) The
(1) The auditor shall by such date as may be prescribed, submit to the co-operative society and to the Registrar, an audit report including a statement of -
(a) every transaction which appears to him to be contrary to law or to the rules or bye-laws;
(b) every sum which ought to have been but has not been brought into account;
(c) the amount of any deficiency or loss which requires further investigation;
(d) any money or property belonging to the society which appears to have been misappropriated or fraudulently retained by any person;
(e) any of the assets which appears to him to be bad or doubtful; and
(f) any other matter as may be specified by the Registrar.
(2) A co-operative society shall be afforded by the Registrar an opportunity of explaining any defects or irregularities pointed out by the auditor and ther
(1) The Registrar or any person authorised by general or special order in this behalf, by the Registrar, may inspect a co- operative society. For the purpose of inspection he shall at all time have access to all books, accounts, papers, vouchers, securities, stock and other property of the society and may in the event of serious irregularities discovered during the inspection take them into custody and shall have power to verify the cash balance of the society and subject to general or special order of the Registrar to call a meeting of the committee or a general meeting. Every officer or member of the society shall furnish such information as he may require.
[(2) The apex society and the central society shall inspect every affiliated society annually and shall prepare report regarding their administrative functioning and financial management.]
(1) The Registrar may of his own motion or on the application of a majority of the committee or of not less than one-third of the members, hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a society.
(2) The Registrar or the person authorised by him under sub section (1) shall have the following powers, namely :-
(a) he shall at all times have, for purposes of examination access to the books, accounts, cash and other properties belonging to or in the custody of the society and may summon any person in possession or responsible for the custody of such books, accounts, documents, securities, cash or other properties to produce the same at any place, within the district within which the society has its registered office and may if considered necessary by him, take such books or record into custody after giving
(1) The Registrar shall on the application of a creditor of co-operative society, inspect or direct some person authorised by him by order in writing in this behalf to inspect the books of the society:
Provided that no such inspection shall be made unless the applicant -
(a) satisfies the Registrar that the debt is 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 proposed inspection as the Registrar may require.
(2) The Registrar shall communicate the result of any such inspection to the creditor.
Where an inquiry is held under section 98 or any inspection is made under section 99, the Registrar may pass an order to apportion the costs or such part of the costs as he may think fit between the society, the members, the creditor demanding an inquiry or inspection, the officers or former officers and the members or past members of the society :
Provided that -
(a) no order of the apportionment of the costs shall be made under this section unless the society or the person liable to pay the costs has been afforded a reasonable opportunity of being heard; and
(b) the Registrar shall state in writing the ground on which the costs are apportioned.
(1) If it comes to the notice of the Registrar that any person who is or was entrusted with the organisation or management of a co- operative society or who is or has at any time been a member of the committee, officer or an employee of the society, has made any payment contrary to this Act, the rules or bye-laws or has caused any deficiency in the assets of the society by misconduct or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to the society or has caused losses, or depleted profits of the society ignoring diligence of ordinary man of prudence or by acting against the interest of the society, the Registrar may, of his own motion or on the application of the committee liquidator or any creditor, enquire himself or direct any person authorised by him by an order in writing in this behalf to enquire into the conduct of such person.
(2) Where an inquiry is made under sub section (1), the
(1) Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, [***] management or the business of a co-operative society [other than a dispute of disciplinary action or dispute relating to service matters in respect of a paid servant of a society] arises -
(a) among members, past members and persons claiming through a member, past member or deceased member; or
(b) between a member, past member or persons claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society or liquidator, past or present; or
(c) between the society or its committee and any past committee, any officer, agent or employee or any past officer, agent or employee or the nominee, heirs or legal representatives of any deceased officer, agent or employee of the society; or
(d) betwe
(1) The Registrar may, on receipt of the reference of dispute for arbitration under section 102, -
(a) decide the dispute himself;
(b) transfer it for disposal to any person who has been vested by the Government with powers in that behalf; or
(c) refer it for disposal to any other person as arbitrator.
(2) The Registrar may withdraw any reference from an officer who is exercising the powers of Registrar and entrust it for disposal to any other officer who has been vested with the powers of the Registrar.
(3) The Registrar may withdraw any reference transferred under clause (b) of sub-section (1) or referred under clause (c) of that sub section and decide it himself or refer the same to another arbitrator for decision.
(4) The Registrar or any other person to whom a dispute is referred for decision under this section may, pending the dec
(1) Notwithstanding anything contained in sections 102 and 103 a financing institution or a co-operative society may apply to the Registrar for recovery of arrears of any sum due to it from members, past members, officers, past officers and shall attach with such application a statement of accounts in respect of such sums.
(2) On receipt of an application under sub section (1) the Registrar may after making such enquiry as he may deem fit after affording the members, past members, officers or past officers concerned an opportunity of being heard pass an order granting a certificate for the recovery of amount stated therein to be due, as such arrears.
(3) When the Registrar is satisfied that a co-operative society has failed to take action under sub section (1) against any of its members, past members, officers or past officers, the Registrar, on his own motion may, after making such inquiry as he deems fit and affording an
(1) If the Registrar, [after audit under Section 95 or] an inquiry held under [section 98], an inspection has been made under section 97 or 99 or on receipt of an application made by not less than three-fourths of the members of a co-operative society, is of opinion that the society ought to be wound up he may issue an order directing it to be wound up.
[Provided that the Registrar shall ensure implementation of regulatory prescriptions of the Reserve Bank including winding up of Central Co-operative Banks and the Haryana State Co- operative Apex Bank Limited and appointment of liquidator within one month of being so advised by the Reserve Bank.]
(2) The Registrar may of his own motion make an order directing the winding up of a co-operative society -
(a) where the number of members has been reduced to less than that specified under section 5; or
(b) where the society has not comm
(1) Where the Registrar has made an order under section 105 for the winding up of a co-operative society, he shall appoint a liquidator for the purpose and fix his remuneration.
(2) A liquidator shall 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. He may carry on the business of the society so far as may be necessary with the previous approval of the Registrar.
(3) Where an appeal is preferred under section 114, an order of winding up of the co-operative society made under section 105 shall not operate thereafter until the appeal is disposed of :
Provided that the liquidator shall continue to have custody or control of the property, effects and actionable claims
(1) Subject to any rules made in this behalf, the whole of the assets of a co-operative society in respect of which an order for winding up has been made shall vest in the liquidator appointed under section 106 from the date on which the order takes effect and the liquidator shall have the powers to realise such assets by sale or otherwise.
(2) Such liquidator shall also have powers, subject to the control of the Registrar-
(a) to institute and defend suits and other legal proceedings on behalf of the co-operative society by the name of his office;
(b) to determine from time to time the contribution (including debts due and costs of liquidation) to be made or remaining to be made by the members or past member or by the estates of nominees, heirs or legal representatives of deceased members or by any officer or former officers, to the assets of the society;
(c) so investigate all c
Notwithstanding anything contained in the Provincial Insolvency Act, 1920, the contribution assessed by a liquidator shall rank next to debts due to the Government or to any local authority in order of priority in insolvency proceedings.
(1) Registrar may after considering the report of the liquidator made to him under sub-section (3) of section 107, order the registration of the co-operative society to be cancelled.
(2) An order passed under sub section (1) shall be communicated to the financing institutions, if any, of which the society was a member and may notify as prescribed.
Every decision, award or order passed by the Registrar or arbitrator or liquidator under sections 95, 100, 101, 103, 104, 107, 113, 114 and 115 shall -
(a) be deemed to be a decree of a civil court and shall be executed in the same manner as decree of such court; or
(b) be executed by the Registrar or any other person subordinate to him empowered by the Registrar in this behalf, by attachment and sale or by sale without attachment of any property of the person or a co-operative society against whom the order, decision or award has been obtained or passed.
(c) [***]
Where the Registrar is satisfied that a party to any reference under sections 95, 100, 101, 103, 104, 107, 113, 114 and 115 with intent to defeat or delay the execution of any decision, award or order, is about to-
(a) dispose of the whole or any part of the property; or
(b) remove the whole or any part of the property from the local limits of the jurisdiction of the Registrar,
the Registrar may unless adequate security is furnished to his satisfaction, direct the attachment of the said property or such part thereof as he thinks necessary. Such attachment shall be valid till the order, decision or award is satisfied.
The Registrar or any person empowered by him in this behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by attachment and sale or by the sale without attachment of any property or when passing any order on any application made to him for such recovery, to be civil court.
All sums due from the co-operative society to the Government including any cost awarded to the Government under any provision of this Act on a certificate issued by the Registrar, in this behalf, be recovered firstly from the property of the society, 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 thirdly in the case of other society from the members, past members or the estate of the deceased members.
(1) An appeal shall lie under this section against -
(a) an order of the Registrar made under sub section (2) of section 8 refusing to register a society;
(b) an order of the Registrar made under sub section (4) of section 10 refusing to register an amendment of the bye-laws of a co-operative society;
(c) a decision of a co-operative society, other than a producer society refusing to admit any person as a member of the society who is otherwise duly qualified for membership under the bye-laws of the society;
(d) a decision of a co-operative society expelling any of its members,
(e) an order of the Registrar rescinding a resolution under section 27;
(f) an order of the Registrar removing the committee or a member of the committee of a co-operative society under section 34 or 35;
(g) an order made by the Registrar reg
The Government may sou motu or on an application of [an aggrieved party], call for and examine the record of any proceedings [under this Act and the rules framed thereunder] in which no appeal lies to the Government under section 114 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 Government that any such decision or order should be modified, annulled or revised, the Government may, after giving the persons affected thereby an opportunity of being heard, pass such order thereon as it may deem fit.
Where an appeal is made under section 114 or where the Government calls for record of a case under section 115, the appellate authority or the Government, as he case may be, may, in order to prevent the ends of justice being defeated, make such interlocutory orders, including an order of stay, pending the decision of the appeal or revision, as such authority or the Government may deem fit.
(1) Any person other than a co-operative society carrying on business under any name of or title of which the word ``Co-operative'' or its equivalent in any Indian language is part, without the sanction of the Government shall be punishable with imprisonment for a term which may extend to six months or fine which may extend to [five thousand rupees] or both and in case of a continuing breach with a further fine which may extend to [five hundred rupees] for every day during which breach is continued after conviction for the first such breach.
(2) Any member or past member or the nominee, heir or legal representative of a deceased member of a co-operative society, who contravenes the provisions of sections 52 and 53 by disposing of any property in respect of which the society is entitled to have a first charge under that section or do any other act to the prejudice of such claim, shall be punishable with fine which may extend to [five thousand rup
(1) No court inferior to that of a Judicial Magistrate of the first class shall try any offence under this Act.
(2) No prosecution shall be instituted under this Act without the previous sanction of the Registrar and such sanction shall not be given without giving to the person concerned a reasonable opportunity to represent his case.
Every co-operative society registered under this Act shall have its head office in the State of Haryana and shall have its address registered in the manner prescribed to which all notices and communications may be sent and shall send to the Registrar, notice of every change thereof within a period of thirty days of such change.]
Any unit of the Co-operative Credit Structure may, with the prior approval of the Registrar, affiliate or disaffiliate with a federal society keeping in view the financial position of the federal society. It shall have the freedom of entry and exit at any tier and there shall be no mandatory restrictions of geographical boundaries for its operation.]
Every co-operative society shall keep a copy of this Act, the rules and its bye-laws and also a list of its members open to inspection free of charge at all reasonable times at the registered address of the society.
No person other than a co-operative 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 :
Provided that nothing in this section shall apply to the use by any person or his successors in interest of any name or title under which he carried on business at the date on which the Co-operative Societies Act, 1912 (2 of 1912) came into operation.
No Primary Agriculture Co-operative Society shall use the words `bank', `banking', `banker' or any other derivative of the word `bank'.]
Notwithstanding anything contained in this Act, the Government may by general or [special order after recording its reasons] and subject to such conditions, if any, as it may impose, exempt any society or class of societies from any of the provisions of this Act.
Any employee of a co- operative society discharging duties under the provisions of this Act or the rules made thereunder or any person appointed as liquidator or arbitrator shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code, 1860 (45 of 1860).]
No suit shall be instituted against a co- operative society or any of its officers in respect of any act touching the business of society until the expiration of two months next after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims and the plaint shall contain a statement that such notice has been so delivered or left.
Whenever under the provisions of this Act, a notice is required to be given to any person in writing, it shall be sufficient to send such notice by registered post.
The provisions of the Companies Act, 1956, shall not apply to the co-operative societies.
Every society which has been registered under the Co-operative Credit Societies Act, 1904, or the Co-operative Societies Act, 1912, or the Co-operative Societies Act, 1954, or the Punjab Co-operative Societies Act, 1961, shall be deemed to be registered under the corresponding provisions of this Act, and its bye-laws shall, so far as the same are not inconsistent with the provisions of this Act, continue in force until attered or rescinded.
(1) Save as provided in this Act, no Civil Court, [or revenue court] shall have any jurisdiction in respect of -
(a) the registration of a co-operative society or its bye-laws or of an amendment of bye-laws;
(b) the removal of a committee;
(c) any dispute required under section 102 to be referred to the arbitration of the Registrar or any matter in which proceedings under section 104 have been initiated; or
(d) any matter concerning the winding up and dissolution of a co- operative society.
(2) While a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the liquidator as such or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose.
(3) Save a provided in this Act,
While exercising the functions conferred on him by or under this Act, the Registrar, the arbitrator or any other person deciding a dispute under section 103 and the liquidator of a co- operative society or person entitled to audit, inspect or hold an enquiry shall have the same power as are vested in a civil court, under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely :-
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of any document;
(c) proof of facts by affidavits; and
(d) issuing commissions for examination of witnesses.
No suit, prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting on his authority in respect of anything in good faith done or purporting to have been done under this Act.
(1) The Government may, for any co-operative society or class of such societies, make rules 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 maximum number of shares or portion of the capital of a co- operative society which may, subject to the provisions of Section 6, be held by a member;
(ii) the form to be used, the conditions to be complied with and the procedure for making an application for the registration of a society under section 7;
(iii) the procedure to be followed in making, altering and abrogating bye-laws and the conditions to be satisfied prior to such alteration or abrogation under section 10;
(iv) the procedure and conditions for change in the form and extent of the liability of a co-opera
The Punjab Co-operative Societies Act, 1961 (25 of 1961) and the Punjab Co-operative Agricultural Development Banks Act, 1957 (26 of 1957) are hereby repealed.
[see Section 2(eb)]
1. Voluntary and Open Membership. - Co-operatives are voluntary organizations, open to all persons capable of using their services and willing to accept the responsibilties of membership, without discrimination on basis of gender, social inequality, racial, political ideologies or religious consideration.
2. Democratic Member Control. - Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and decision making. Elected representatives of these Co-operatives are responsible and accountable to their members.
3. Member's Economic participation. - Members contribute equitably and control the capital of their Co-operative democratically. At least a part of the surplus arising out of the economic results would be the common property of the Co-operatives. The remaining surplus could be utilized benefiting the members in pr
Elevate your legal practice with advanced AI-driven research and drafting solutions. Experience unmatched efficiency, precision, and security, tailored exclusively for legal professionals.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
AI Assistant
