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Published vide Haryana Notification No. GSR 11/HA.22/84/s.131/89, dated 31st January 1989

Cha.I Preliminary

R.1 Short title

These rules may be called the Haryana Co-operative Societies Rules, 1989.

R.2 Definitions

In theses rules, unless the contex otherwise requires,--

(a) "Act" means the Haryana Co-operative Societies Act, 1984;

(b) "Appendix" means an appendix appended to these rules;

(c) "Co-operative Year" means the year ending with the 31st day of March, or in the case of any Co-operative Society or class of Co-operative Societies, the accounts of which are made upto any other date, with the previous sanction of the Registrar, the year ending with such date ;

(d) "Decree'' means any decision, award or order referred to in section 110 of the Act:

[(dd) "Family" means a person concerned, spouse, un-married son, un- married daughter and dependent un-married brother and sister; ]

(e) "Form" means a form appended to these rules :

(f) "Maximum Credit Limit" means the extent to which a Co-operative Society may receive deposits

Cha.2 Registration of Co-operative Societies and their Bye-Laws

R.3 Co-operative Principles

Sections 4 and 131 (2) (ii). - A Society shall have its object for the promotion of the economic-interest of its membersin accordance with the Coopertive principles which mean,-

(i) Voluntary and open membership ;

(ii) democratic control;

(iii) limited interest on capital;

(iv) equitable distribution of surplus;

(v) Co-operative education ;

(vi) Cooperation among cooperative;

R.4 Restriction on registration. - Sections 5 and 131 (2) (ii)

No society other than a society, of which a member is a cooperative society, shall be registered unless it consists of indivduals belonging to not less than five families.

R.5 Form of Application

Sections 7 and 131 (2) (ii). - An application for registration of a cooperative society shall be made in form I and shall specify the name and address of one of the applicants to whom the Registrar may address his correspondence.

R.6 Documents which shall accompany the application

Section 131(2) (ii). - The application for registration shall be accompanied by three copies of the bye-laws which the Co-operative Society proposes to adopt. Such copies of bye-laws shall bear the signatures of not less than two of the applicants, duly authorised by the members of the proposed co-operative society.

R.7 Procedure on receipt of application

Section 131 (2) (ii). - Before passing final order under section 8, the Registrar may call for such further information from the applicants or make such independent enquiries as he may deem necessary.

(2) After the Registrar is satisfied with regard to the matters stated in sub-section (1) of section 8, he may register the co-operative society and its bye-laws. A copy of the registered by-laws along with a certificate of registration in Form II shall be sent by him to the co-operative society.

(3) The particulars of a co-operative society registered under sub-rule (2) shall be entered in the register in Form III.

R.8 Person to whom order to be communicated

Sections 8 (2) & 131 (2) (ii). - The order passed by the Registrar under-sub-section (2) of section 8 shall be communicated by [registered post with A.D.] to the applicant specified in the application for registration.

R.9 Appeal against refusal of registration

Section 131(2)(xxviii). - Where an application for registration of co-operative society is rejected by the Registrar, the appeal, if made, shall be signed by all the persons joining in the application for registration.

Provided that when the application for registration has been signed by more than ten persons, the appeal shall be signed by at least two-third persons joining the application for registration.

R.10 Procedure for amendment of bye-laws. - Section 131(2)(iii).

No amendment for bye-laws shall be carried out save in accordance with a resolution passed at a general meeting of the co-operative society of which due notice of the intention to discuss the amendment has been given.

Provided that no such resolution shall be valid unless it is passed by a majority of members present at a general meeting at which not less than two-third of members for the time being of the co-operative society are present:

Provided further that model eye-laws approved by the Registrar may be adopted by a majority at an ordinary general meeting.

R.11 Application for registration of amendment

Section 131(2)(iii). - Three copies of the amendments adopted by co-operative society under rule 10, signed by two officers of the co-operative society duly authorised by the general meeting in this behalf, shall be submitted to the Registrar along with an application for registration duly signed as aforesaid. Such copies of the amendments shall be accompanied by a certificate signed by any one of the above two officers of the cooperative society to the effect that the provisions of rule 10 have been complied with.

R.12 Registration of amendments

Sections 10(4) & 131(2)(iii). - (1) After the Registrar is satisfied with regard to the matters stated in sub-section (2) of Section 10, he may register the amendments and return a copy of the registered amendments to the co-operative society.

(2) The order of the Registrar passed under sub-section (4) of Section 10 shall be communicated by registered post with A.D. to the Co-operative Society.

R.13 Appeal against refusal to register amendment in bye-laws

Section 131(2)(xxvii). - Where an application for registration of an amendment in bye- laws of a co-operative society is rejected by the Registrar under sub-section (4) of Section 10, the appeal, if any, shall be made only after a meeting of the general body has reconsidered the matter and has decided to prefer an appeal and shall be signed by an officer of the co-operative society duly authorised in this behalf by a general meeting.

Cha.3 Members of Co-operative Societies, their rights and liabilities

R.14 Disqualification for membership

Section 131(2)(v). - (1) No person shall be eligible for admission as a member of a co-operative society, if he:-

(a) has applied to be adjudicated as an insolvent or is an undischarged insolvent; or

(b) has been sentended for any offence other than an offence of a political character or on offence not involving moral turpitude, and a period of five years has not elapsed from the date of expiry of the sentence.

(2) If a member becomes subject to any of the disqualifications specified in sub-rule (1), he shall be deemed to have ceased to be a member from the date when the disqualification was incurred.

R.15 Prohibition of membership in two Co-operative Credit or Service Societies

Section 131(2)(xx). - (1) No individual, who is a member of a primary co- operative society having one of the objects i.e. the creation of the funds to be lent to its members, shall be a member of any other such co-operative society without the permission of the Registrar, and where an individual has become a member of two such co-operative societies either or both of the co- operative societies shall be bound to remove him from membership upon a written requisition from the Registrar to that effect.

(2) No individual who is an officer of any Co-Operative Society shall without the permission of the Registrar, be a member of any other co-operative society whose objects are similar to the objects of which he is an officer, and where such an individual has become a member of another society with similar objects, either or both of the co-operative societies, shall be bound to remove him from membership upon written requisition from the Registrar to

R.16 Admission of member before the general meeting

Section 131(2)(v). - No co- operative society shall admit any member within fourteen days prior to the date of its annual general meeting.

R.17 Disposal of application for admission of members

Section 131(2)(v). - A co-operative society other than a producer society, shall dispose of an application received for admission as a member as early as possible and in no case later than the expiration of a period of one month from the date of receipt of the application by the society. In case of refusal to admit, such society shall communicate its decision together with reasons thereof, to the applicant.

R.18 Withdrawal from membership

Section 131(2)(xx). - (1) In a co-operative society with unlimited liability, a member who is not indebted to a co- operative society and is not a surety for unpaid debt, may withdraw from the co-operative society after giving such notice to the Secretary of the Society as may be laid down in the bye-laws of the Co-operative Society.

(2) In a co-operative society with unlimited liability, a member, who withdraws from the society ceases to be its member, shall be entitled to repayment without interest of any money paid by him or his predecessor in interest towards the purchase of shares after such period as may be laid down in the bye-laws.

(3) No member of a co-operative society with limited liability shall ordinarily be permitted to seek withdrawal or refund of his shares :

Provided that where the society has created a share transfer fund out of its earned profits, its managing committee shall, keepin

R.19 Liability of explusion. - Section 131(2)(x)

A Society may, by a resolution passed by a majority of not less than two-third of the members entitled to vote who are present at a general meeting, held for the purpose, expel a member for acts which are detrimental to the interests or proper working of the society.

R.20 Appointment of a member to vote on behalf of society. [Section 2.]

(1) Subject to the provisions of sub-rule (2) no member of a Committee of a Co- operative Society who is a member of another Co-operative Society shall be appointed to vote on its behalf in the affairs of the other society unless a resolution is passed by two-third members of the committee present and voting.

(2) No member of a primary society who is a member of another co-operative society shall be appointed to vote on behalf of the society in the affairs of the other society unless a resolution is passed by two-third members of the committee of a primary society.

R.21 Nomination of heir. [Section 131(2)(xxi)].

(1) Every member of a co- operative society shall nominate a person or persons to whom his share or interest referred to in section 23 or such sums out of share or interest as may be specified by the member, shall on the death of the member be transferred or paid as laid down in the bye-laws.

(2) Such nomination may, from time to time, be revoked or modified by the member.

(3) The number of persons who may be nominated by a member shall not exceed the number of shares held by him.

(4) When a member of a co-operative society nominates more than one person, he shall, as far as practicable specify the amount to be paid or transferred to such nominee in terms of whole share and the interest accruing therein.

(5) The record of nominations shall be kept by a co-operative society in such manner as may be laid down in the bye-laws.

(6) The value of the share or inter

R.22 Maintenance of register of members. - Section 131(2)(xvi).

Every co-operative society shall maintain a register of members showing-

(a) the name, address and occupation of each member, and a statement of shares held by him;

(b) the date on which the member's name was entered in the register;

(c) the date on which any person ceased to be a member;

(d) the nominees appointed by member.

Cha.4 General body meetings

R.23 Summoning of meeting. [Sections 26 and 131(2)(vii)].

A general body's meeting or a meeting of a committee of a co-operative society shall be called by the [Chief Executive Officer or any other officer authorised] by him of a society, by whatsoever name called on the direction of such authority as may be specified in the bye-laws :

[Provided that a meeting of the Committee of a Co-operative Society may be convened on the written request made by not less than one-third members of the said society;]

R.24 Powers of general body in a meeting. [Section 131(2)(vii)].

Without prejudice to the provisions of Section 25, the general body in a meeting alone shall have the powers to fix the maximum credit limit of the co-operative society subject to the approval of the Registrar:

Provided that no approval of the Registrar shall be necessary in case of Primary Credit Service Societies.

R.25 Election of members of Committee

Sections 28(1) and 131(2)(x). - The members of the committee of a co-operative society shall be elected in accordance with the provisions contained is Appendix "A".

R.26 Proportion of individuals and societies for constituting committee. - Section 131(2)(ix).

In a Co-operative Society the membership of which is not exclusively contained to individuals, the representation of individuals and societies on the committee and the general body shall be such as may be laid down in the bye-laws of the Co-operative Society.

R.27 Disqualification for membership of committee. - Section 131(2)(xiii).

No person shall be eligible for election as member of the Committee if :-

(a) he is in default to any Co-operative Society in any respect of sum due from him to the society or owes to any Co-operative Society an amount exceeding his maximum credit limit;

(b) he has directly or indirectly any interest in any contract to which the Co-operative Society is a party except in transactions made with the Co-operative Society as a member in accordance with the objects of the society as stated in the bye-laws;

(c) he has at any time during a period of one year prior to the date of scrutiny of nomination papers, engaged in any private business, trade or profession of any discription which is carried on by the society;

(d) he has been convicted for any offence involving dis-honesty or moral turpitude during a period of five years prior to the date of scrutiny of nomination papers;

R.28 Removal from membership of committee. - Section 131(2)(x).

(1) A member of the committee shall cease to hold office as such if he:-

(a) continuous to be in default in respect of any sum due from him to any Co-operative Society for a period of three months;

(b) ceases to be a member;

(c) is declared insolvent;

(d) becomes of unsound mind;

(e) is convicted of an offence involving dishonesty or moral turpitude; or

(f) becomes subject to any of the disqualifications specified in rule 27.

(2) The Committee shall inform the Registrar that a member has incurred the disqualification under sub-rule (1) and as such is liable for removal from the office.

(3) On the receipt of information of a Committee under sub-rule (2), or the application of any member of the society or suo moto, the Registrar may order the removal of the member from office after giving an oppo

R.29 Employees of Co-operative Societies. [Section 131(2)(xxxiv)].

Subject to the provisions of Section 37 of the Act, every society shall make rules in the light of model service rules to regulate the recruitment and conditions of service of its employees with the approval of the Registrar.

R.30 Prohibition against being interested in contracts etc. - Section 131(2)(2)(xxxix).

(1) Without prejudice to the provisions of bye-laws, no officer of a co- operative society shall have an interest directly or indirectly otherwise than as such officer :-

(a) in any contract made with society; or

(b) in any property sold or purchased or leased by or to the society; or

(c) in any other transaction of the society, except as investment made or as loan taken from the society or the provision of residential accommodation by the society to any paid employee of the society.

(2) No officer of a co-operative society shall, purchase directly or indirectly any property of a member of the society sold for the recovery of his dues to the society.

(3) The prohibitions contained in this rule continue to apply for a period of two years after a person ceased to be an officer of the society.

Cha.5 Annual Review of Cadre Societies

R.31 Annual Review of cadre society

Sections 38 and 131(2)(xv). - (1) The Chief Executive Officer of a cadre society, by whatsoever name called, shall prepare an annual review of its working and of its member societies within three months of the close of the co-operative year and shall place the same before the committee of the society.

(2) The committee shall submit such annual review with its comments to the Registrar within the next three months but not later than the 31st December of the year.

[(3) The Registrar shall submit the annual review of the Apex Society with remarks, if any, to the Government.]

Cha.5 Privileges of Co-operative Societies

R.32 Manner of certifying copies of entries in books

Sections 42(1) and 131(2)(xviii). - For the purpose of section 42 a copy of an entry in the books of a co-operative society shall be certified by a certificate written at the foot of such copy declaring that it is a true copy of such entry and that the book containing the entry is in the custody of a co-operative society:

Provided that the said certificate shall be dated and signed by an officer of the co-operative society as may be authorised by the committee.

R.33 Loans and subsidies by Government

Section 131(2)(xxxvi). - Loans and subsidies to a co-operative society or a class of co-operative societies may be granted by Government on such terms and conditions as may be laid down by Government by a general or special order from time to time.

R.34 Manner of making application for loan or subsidy

Section 131(2)(xxxvi). - An application by a co-operative society for a loan or subsidy or both from a Government Department or a Government sponsored agency shall be made through the Registrar. While forwarding the application, the Registrar shall record his opinion regarding the eligibility of the co-operative society for the said loan or subsidy or both, its financial position and the desirability of sanctioning the society the said loan or subsidy or both.

R.35 Submission of information and returns by Co-operative Societies having State participation

Section 131(2)(xx). - A Co-operative Society receiving Government loan or subsidy or a society in which a share or shares have been subscribed or liability by way of guarantee for borrowing exceeding fifty per cent of the working capital of the society has been undertaken by the Government, shall furnish such information and submit such returns as the sanctioning authority or the Registrar may from time to time require.

Cha.7 Accounts and Record

R.36 Report and custody record

Section 49. - (1) On the commencement of the co-operative year, a co-operative society shall prepare list of books, records, securities and other property of the society.

(2) Such lists shall be verified and signed by the Chief Executive Officer of the society by whatsoever name called. Each list shall bear the name and signatures of the custodian of such books, record, security and other properties of the society as may be specified in the bye-laws or may be authorised by the committee.

(3) In case there is any change in the incumbancy of the custodian of any list during a co-operative year, fresh list shall be prepared in the manner indicated in sub-rule (2).

(4) Copies of lists prepared under sub-rules (2) and (3) shall be sent by the society to the Registrar and Financing Institution concerned within a month of the commencement of the co-operative year or the date of change in the incumbancy of the

Cha.8 Charger and Mortgages

R.37 Declaration under Sections 53 and 131(2)(xxxviii).

(1) A declaration under clause (b) of Section 53 shall be made in the form given in Form IV in quadruplicate.

(2) A register of such declarations to be kept by the Co-operative Society shall be in the form given in Form V.

Cha.9 Loans and Borrowing

R.38 Restrictions on borrowings by co-operative societies

Sections 63 and 131(2)(xxxvii). - (1) Subject to the provisions of sub-rule (2) a Co-operative Society shall not receive, deposits and loans whether from members or non- members which exceed the limits fixed from time to time a general meeting subject to the approval of the Registrar who may at any time reduce it :

Provided that no approval of Registrar shall be necessary in case of primary agricultural credit/service society.

(2) A co-operative society which accepts deposits and loans from members only and has no liability to any person other than the members, may receive such deposits and loans in excess of the limits referred to in sub-rule (1) if the excess amounts is deposited in a co-operative bank to which it is affiliated or is invested in Government securities specified in section 21 of the Indian Trust Act, 1982:

Provided that the amount so deposited or invested or any part thereof, is not wi

R.39 Maintenance of fluid resources

Sections 63 and 131(2)(xxii). - Every co- operative society accepting deposits and granting cash credits shall maintain fluid resources in such form and according to such standards as may be specified by the Registrar from time to time by general or special order.

R.40 Maximum credit limit of members

Sections 64 and 131(2)(xxii). - The by-laws of a co-operative society may lay down the limit beyond which a co- operative society may not advance loans to individual members without the prior consent of the Registrar.

R.41 Nature and extent of securities for loans. - Sections 64 and 131(2)(xxii)

The Registrar may from time to time issue such directions as he considers necessary for regulating the nature and extent of security which the co- operative society or class of co-operative societies may demand in respect of loans advanced by it.

R.42 Restrictions on grant of loans by a Co-operative Society against its own shares

Sections 64 and 131(2)(xxii). - No co-operative society shall grant loans or make advances against the security of its own shares.

Cha.10 Procedure for the Sale of Produce

R.43 Forms relating to distrainment and proclamation of sale etc.

Section 72. - (a) Application for the purposes of sub-section (1) of Section 72 shall be in form VI.

(b) The demand notice to be served on the defaulter before the produce is distrained shall be in Form VIII.

(c) The distraint order shall be in Form VIII.

(d) The demand notice after distraining for making payment of the amount for which produce has been distrained, specifying therein the day, time and place of sale, if failed to make the payment etc. shall be in Form IX.

R.44 Distraint of produce

Where the property to be distrained is the produce of the charged or mortgaged land including the standing crops thereon, the distrain shall be made by the Distrainer by affixing a copy of the warrant of distraint.-

(a) Where such produce is standing crop on land on which such crop has grown; or

(b) where such produce has been cut or gathered on the thrashing floor or place for trading out grain or the like or fodder stock on or in which it is deposited;

and another copy on the outer door or on some other conspicuous part of the house in which the defaulter ordinarily resides and one copy shall be pasted on some conspicuous part, of village or Panchayat Ghar and the produce shall thereon be deemed to have passed into possession of the distrainer.

R.45 Time to distraint

Section 131(1). - The distraint shall be made by the distrainer only after sunrise and before sunset.

R.46 Service of demand notice

(1) When a distraint is made under rule 44, the Distrainer shall serve upon the defaulter a written demand in Form IX specifying the amount for which the distraint has been made. The written demand shall contain a list of the property distrained and information as regards the place, the date and the day and hour at which the destrained property will be sold if the amount for which the distraint has been effected is not paid within 15 days from the date of service of the written demand.

(2) The written 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 written demand on some conspicuous part of his abode and land:

Provided where the defaulter does not reside in the village in which land, standing

R.47 Custody of distrained property

Sections 131(1) and Section 73. - The distrainer shall make proper arrangements for custody and preservation of the destrained property during the interval between the distrainer and the sale. The applicant, the president, secretary or manager of the society concerned, authorised in writing in this behalf of the applicant shall if required by the distrainer, undertake the custody and preservation of the property distrained and shall be responsible for any loss or damage to the distrained property incurred owing to the negligence of the person to whom the property is so entrusted.

R.48 Storage of distrained crops

Section 131(1) and Section 73. - Where the growing crops of the mortgaged land belonging to a defaulter are distrained, the distrained may cause them to be sold when they are ripe or harvested and may cause them to be stored in proper places until sold.

R.49 What places distrainer may force open

Section 131(1). - It shall be lawful for the distrainer to force open any stable, cow house, granary, godown, out house or other such building, and he may also enter any dwelling house, for the purpose of distraining the produce of the charged or mortgaged land stored therein:

Provided that it shall not be lawful for such distrainer to break open or enter any place if such place is an apartment in the actual occupancy of a woman, except as hereinafter provided.

R.50 Power of distrainer of force open doors in presence of police officers

Section 131(1). - (1) Where a distrainer has reason to believe that the produce of the charged or mortgaged land is stored within a dwelling house, the outer door of which is shut, or within any apartment occupied by a woman who according to custom does not appear in public, the distrainer shall represent this fact in writing to the officer-in-charge of the police station in which that dwelling house or apartment is situated.

(2) On such representation, the officer-in-charge of the police station shall send [preferably a lady police officer] now below the rank of a head constable to the spot, in the presence of whom the distrainer may force open the outer door of such dwelling house.

(3) The distrainer shall, in the presence of such police officer before entering an apartment in the actual occupancy of a woman, give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for wi

R.51 Proclamation of the time and place of sale of produce

Section 76(1). - (1) The distrainer shall be on the day previous to and on the day before the commencement of sale, cause a proclamation of the time and place of the intended sale to be made by beat of drum in the village in which the defaulter resides or the produce is kept and in such other places as the distrainer may consider necessary to give due publicity to the sale.

(2) No sale shall take place until after the expiration of a peirod of 15 days from the date of the service of the demand referred to in section 73 of the Act:

Provided that where the property distrained is subject to speedy and natural decay the distrainer may sell it at once.

R.52 Sale how conducted

Section 76(1). - (1) At the appointed time and place the distrainer shall sell in public auction the destrained property or such part thereof as may be necessary, in one or more lots as the distrainer may consider desirable and dispose of the same to the highest bidder.

(2) The distrainer may, in his discretion, adjourn the sale to a specified day and hour after recording his reason for such adjournment.

(3) Where a sale is adjourned under sub-rule (2) for a longer period than seven days, a fresh proclamation under rule 52 shall be made unless defaulter consents to waive it.

R.53 Withdrawal of distraint on tender of moneys due and expenses prior for sale

Section 74. - When prior to the day fixed for sale the defaulter or any person acting on his behalf, or any person claiming an interest in the property distrained pays to the society, the Registrar or the distrainer the full amount due, including interest, travelling allowance and other expenses incurred in distraining and proclaiming the sale, the distrainer shall not proceed with the sale and shall release the produce forthwith.

R.54 Payment on purchase of distrained produce

Section 76(1). - The purchase money shall be paid by the purchaser in case at the time of sale or as soon thereafter as the distrainer shall appoint, and the purchaser shall not be permitted to carry away any part of the property until he has paid the purchase money in full.

R.55 Resale to case of default.

Section 76(1). - If the purchaser makes a default in the payment of purchase money, the produce shall be resold. Any deficiency of price which may happen on a resale by reason of purchaser's default and all expenses attending to such resale shall be recoverable from the defaulting purchaser as arrears of land revenue.

R.56 Investigation of claim to any right or interest in distrained property

(1) Where any claim is preferred by any person other than the defaulter to any right or interest in the distrained property, the distrainer shall investigate the claim and dispose it of on its merits:

Provided that no such investigation shall be made where the destrainer considers that the claim was designedly or unnecessarily delayed.

(2) Where the property to which the claim applies has been for sale, the distrainer may postpone the sale pending the investigation of claim.

R.57 Application for sale of immovable property and procedure

Section 76(1). - (1) The application under sub-section (1) of Section 76 of the Act in (Form X) signed by the committee or any person duly authorised in writting by the committee shall state the amount due for recovery including interest, expenses incurred in the service of the notice referred to in clause (b) of sub-section (2) of Section 75 of the Act, the name(s) and the address(es) of person(s) on whom such notice was served. It shall also contain such description of the immovable property to be proceeded against as may be sufficient for its identification and in case such property can be identified by boundaries or number in the revenue record, the specifications of such boundaries or numbers.

(2) On receipt of the application, the sale officer shall give a notice in writting to all the persons referred to in clause (b) of sub-section (2) of section 75 of the Act in Form XI stating the amount claimed by the society including expenses incurr

R.58 When defaulter neglects to pay

Section 76(1). - If before the expiration of the time allowed in the notice issued under sub-rule (2) of rule 57, the amount specified in such notice is paid, the sale officer shall, after giving the notice to the society proceed to sell the immovable property specified in the application in the manner laid down in rule 59.

R.59 Proclamation before sale

Section 76(1). - (1) The sale officer shall cause a proclamation of the intended sale to be made in Form XII.

(2) Such proclamation shall state the time and place of the sale and specify as fairly and accurately as possible,--

(a) the property to be sold;

(b) the revenue or rent payable in respect thereof;

(c) the amount for the recovery of which the sale is intended to be made; and

(d) every other thing which the sale officer considers material for a purchaser to know in order to judge the nature and value of the property.

(3) For the purpose of ascertaining the matters to be specified in the proclamation, the sale officer may summon any person whom he thinks necessary to summon and may examine him in respect of to any such matters and require him to produce any documents in his possession or power relating thereto.

Section 76(1). - (1) The sale of the mortgaged property shall be subject to the previous charge, if any, on the basis of a registered deed on the property, and shall be by public auction to the highest bidder.

(2) The sale officer may, in his discretion, adjourn the sale to a specified day and hour, recording his reasons for such adjournment.

(3) Where a sale is adjourned under sub-rule (2) for a longer period than seven days, a fresh proclamation under rule 59 shall be made and published unless the mortgagor consents to waive it.

R.61 Deposit by purchaser and resale on default

Section 76(1). - (1) When the highest bid of the auction has been ascertained the person who made that bid shall, on the requisition of the sale officer, pay to that officer a deposit of twenty-five per cent of the amount of his bid, and shall on payment thereof, be declared to be the purchaser. If the person who made the highest bid fails to pay such deposit, the property shall forthwith be resold.

(2) Where the society, at whose instance the property is sold, is the purchaser and is entitled to set off the purchase money under rule 66, the sale officer may dispense with the requirement of sub-rule (1).

R.62 Time for payment of the balance of the purchase money

Section 76(1). - The remaining amount of the purchase money shall be paid by the purchaser to the sale officer within 15 days from the date of sale:

Provided that in calculating the amount to be so paid to the sale officer the purchaser shall have a right to claim set off to which he may be entitled under rule 66.

R.63 Procedure in default of payment

Section 76(1). - In default of payment of the purchase money within the period mentioned in rule 62 the deposit may, if the sale officer thinks fit, after defraying all costs, charges and expenses of the sale, be forfeited and the property shall be resold, and the defaulting purchaser shall forfeit all claims to the property or to any part of which it may subsequently be sold.

R.64 Defaulting purchaser answerable for loss on resale.

Section 76(1). - Any deficiency of price which may happen on a resale by reason of purchaser's default and all expenses attending such resale shall be recoverable from the defaulting purchaser [as an arrear of land revenue.]

R.65 Proclamation on resale. [Section 76(1)].

Every resale of mortgaged property, in default of payment of the purchase money within the period allowed for such payment, shall be made after the issue of a fresh proclamation in the manner and for the period hereinbefore specified for the sale.

R.66 Set off where society is purchaser

Section 76(1). - Where the society at whose instance the mortgaged property is sold, purchases it, the purchase money and the amount due shall be set off against one another, and the sale officer shall ensure satisfaction of payment of the mortgaged money in whole or in part accordingly.

R.67 Release of property

Section 76(1). - Where prior to the day fixed for sale the mortgagor or any person acting on his behalf or any person claiming an interest in the mortgaged property tenders payment of the full amount due including interest, travelling allowance, other costs charges and expenses incurred in connection with the sale officer shall not proceed with the sale and shall release the property forthwith.

R.68 Report of sale

Section 76(1). - The sale officer shall on the conclusion of the sale make a report to the society at whose instance the property was brought to the sale regarding the results of the sale. [A copy of the said report shall also be forwarded to the Registrar for necessary action.]

R.69 Return of purchase money in certain cases

Section 76(1). - Whenever the sale of the mortgaged property is set aside under sub-section (2) of section 77 of the Act the deposit or the purchase money, as the case may be, shall be returned to the purchase who shall also be entitled to get a sum equal to two per cent of the purchase money deposited by the mortgagor or the person having a right or interest in the mortgaged property under sub-clause (b) of sub- section (1) of Section 77 of the Act.

R.70 Receipt for payment of arrears

Section 76(1). - Every person making a payment towards any money due, for the recovery of which an application has been made under these rules, shall be entitled to a receipt for the amount to be signed by the distrainer or the sale officer, as the case may be. Such receipt shall state the name and address of the person making the payment and the subject matter in respect of which the payment is made.

Cha.11 Properties and Funds

R.71 Investment of funds

Sections 85 and 131(2)(xxiii). - (1) Besides the modes provided in section 85 of the Act, a co-operative society may invest or deposit funds or any portion thereof.--

(a) in bonds certificates or loans issued by Government or the Central Government.

(b) in debentures floated by a co-operative societiy;

(c) with the previous sanction of the Registrar, in the purchase or lease of land or building or in the acquisition, construction or renvewal of any building that may be necessary to conduct its business.

(2) The amount of funds invested under clause (c) of sub-rule (1) shall be recouped on such terms as may be determined in each case by the Registrar.

(3) The provisions of clause (c) of sub-rule (1) shall not apply;

(a) to immovable property purchase.--

(i) by a co-operative society at a sale held in execution of a d

R.72 Payment of dividend

Section 131(2)(xxv). - (1) In no co-operative society the dividend shall exceed 10 per cent per annum of the paid up share capital.

(2) In a co-operative society with un-limited liability no dividend shall be paid until a period of five years has elapsed from the date of registration.

(3) No dividend shall be paid by the co-operative society to a depositor or lender remains unsatisfied.

R.73 Creation of Co-operative Education Fund

Sections 87 and 131(2)(xxv). - Every co-operative society shall contribute such amount not exceeding two per cent as may be directed by the Registrar, from time to time out of its net profits of the year to the Co-operative Education Fund to be administered by the State Co-operative Federation. The contribution payable by a co-operative society shall be charged on the funds of the Co-operative Society and shall be recoverable in the manner provided in section 110. The State Co-operative Federation shall prepare regulations with the approval of the Registrar for the utilisation and administration of the fund.

R.74 Reserve fund

Section 131(2)(xxiii). - (1) The Registrar may, from time to time by a general or special order, raise the proportion of profits to be carried to reserve fund under section 87 from one-tenth of the net profits to a limit not exceeding one-fourth of the net profits.

(2) The reserve fund shall be indivisible and no member shall be entitled to claim a specified share in it:

Provided that in exceptional circumstances and with the prior approval of the Registrar, the reserve fund may be utilised in meeting losses to the society.

(3) No co-operative society where reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise employ such fund.

R.75 Contribution to Guarantee Fund

(1) Where the Government decides to constitute a guarantee fund under sub-section (1) of section 88 of the Act for a Co-operative Society or a class of co-operative societies, then such a society or class of societies shall not contribute to this fund less than two per cent of the remainder of the profits after contribution towards the reserve fund under section 87 of the Act.

(2) Notwithstanding anything contained in the rules, a guarantee fund shall not be utilised in the business of a society and shall be kept [in any Co-operative Bank.]

(3) A guarantee fund shall be utilised in the manner as may be specified by the Government from time to time.

Cha.12 Rehabilitation of Weak Societies

R.76 Rehabilitation funds.

Section 131 (2) (xxii). - (1) A rehabilitation fund established by a society shall be kept either in the State Co-operative Bank or a Central Co-operative Bank.

(2) Notwithstanding anything contained in these rules, a rehabilitation fund shall not be utilised in the business of a society.

Cha.12(a) Sale or lease of assets and liabilities of sick societies

R.76(a) Transfer of assets and liabilities of sick societies by sale

The Registrar may, on the basis of an enquiry of the sick society conducted through a general or special order and after consulting the Government and the financial institutions of the sick society, ask its committee to transfer its assets and liabilities by way of sale to another society, firm, body or company within a period of Ninety days from the date of issue of such order as indicated in Annexure `A' on the following terms and conditions :-

(a) The society, firm, company or body shall remit to the sick society the entire payment in lump sum through a demand draft in favour of the sick society within such period as may be mutually agreed upon between the sick society and the proposed firm, company, body or society.

(b) The sick society shall hand over the vacant possession of the entire premises including entire machinery, furniture and fixture, land and building, stock, raw material, finished goods etc. on a specific

R.76(b) Transfer of Assets and Liabilities of Sick Societies By lease

(a) In case the committee of the sick society fails to act on the advice of the Registrar as conveyed in the notice referred to in Annexure B, the Registrar shall proceed to transfer the assets and liabilities of the sick society on lease for a minimum period of five years and a maximum of ten years. The Registrar shall proceed to get the notice for lease published in at least two daily newspapers published in the State having, wide circulation and one National Daily having, wide circulation and shall give the substance of offer of lease by giving at least thirty days notice for the above purpose.

(b) The notices for lease shall be got pasted in the office of Assistant Registrars and Deputy Registrars by the Registrar and also at all important places which are often visited by the public in general and the Registrar shall get the proclamation of lease and announced through a beat of drum at such places and among such parties as he deems fit.

Cha.13 Audit and Account

R.77 Auditing of Accounts

131(2)(xiv). - The accounts of the co-operative society shall be audited in such manner as the Registrar may specify from time to time.

R.78 Maintenance of account books and other record

Section 131(2) (xiv). - A co-operative society or a class of co-operative societies shall maintain the account books and other record in such form and manner as may be specified by the Registrar by a general or special order from time to time.

R.79 Preparation of balance sheet and other accounts

Section 131(2) (xiv) and (xv). - (1) A co-operative society shall prepare balance sheet, profit and loss account, trading account and such other statements relating to accounts as may be specified, from time to time, by the Registrar within three months of the close of the co-operative year in such form as may be laid down by the Registrar.

(2) If the Registrar so directs, a copy of each of the statement referred to in sub-rule (1) shall be supplied by a co-operative society to the Registrar by such date as he may specify.

R.80 Audit fee

Section 131(1). - (1) Every co-operative society shall pay to the Government a fee for the audit of its accounts for each Co-operative Year in accordance with the scale fixed by the Registrar with the previous approval of the Government in respect of the class of co-operative societies to which it belongs.

(2) The Registrar may, subject to such conditions as may be laid down by the Government remit the whole or any part of the fees payable under sub-rule (1) by a Co-operative Society or a class of co-operative societies for any year or other specified period.

Cha.14 Settlement of Disputes

R.81 Reference of disputes

Section 131(2)(xix). - When a party to the dispute referred to in sub-section (1) of section 102 desires to have the dispute determined in accordance with the said section, the party shall apply to the Registrar in writting, stating the substance of the dispute and the name and addresses of the other party.

R.82 Arbitration fee

Section 131(2)(xix). - (1) The Registrar shall have power to require the person referring a dispute under sub-section (1) of section 102 to deposit in advance the fee, if any, to be specified by the Registrar, for deciding the dispute.

(2) The Registrar may in such case as he thinks fit, order the payment of fee to the petitioner.

(3) No fee shall be payable to an arbitrator till the dispute referred to him is finally decided.

(4) The Registrar, may, in his discretion, remit the whole or any part of the fees collected under sub-rule (1).

R.83 Communication of date, time and place of hearing

Section 131(2)(xix). - In an arbitration proceeding, the Registrar, or the arbitrator, as the case may be, shall communicate the date, time and place of hearing the dispute to all the parties concerned.

R.84 Power to appoint guardian for minors etc.

Section 131(2)(xix). - The Registrar or the arbitrator, as the case may be, shall have power to appoint or remove guardian for the party to the dispute who is a minor or who, by reasons of unsoundness mind or mental infirmity, is incapable of protecting his interest.

R.85 Hearing of disputes

Section 131(2)(xix). - The Registrar or the arbitrator as the case may be, shall hear [the parties their, legal representatives and witnesses] who attend. On the basis of such evidence and after consideration of any documentary evidence that may be produced by either party, he shall give award in accordance with justice, enquity and good conscience. The award shall be reduced to writting announced to the parties and filed in the office of the Registrar. [In case of wilful absence] of any party duly summoned to attend, the dispute may be decided ex parte.

R.86 Time limit for making awards

Section 131(2)(xix). - The arbitrator or the Registrar, shall make his award, within six months after entering on the reference or within such extended time as the next higher authority may allow.

R.87 Cost of arbitration. [Section 131(2) (xix)].

Athe arbitrator or the Registrar, as the case may be, shall have the power to order the expenses of determining a dispute or the cost of either party to be borne by such party or parties to the dispute as he may think fit.

R.88 Maintenance of record of arbitration

Section 131(2)(xix). - (1) The record of arbitration proceedings shall be kept in such place and in such manner as the Registrar may direct.

(2) A copy of the award shall, on application, be given to a party by the Registrar or payment of fees prescribed for obtaining copies.

Cha.15 Winding up of Co-operative Societies

R.89 Procedure to be followed by liquidators

Section 131(2)(xxvii). - (1) The liquidator shall as soon as the order of winding up of the co-operative society takes effect publish by such means as he may think proper, a notice requiring all claims against the Co-operative Society, the winding-up of which has been ordered, to be submitted to him within one month of the publication of the notice. All liabilities recorded in the account books of a co-operative society shall be deemed ifso facto. - to have been duly submitted to him under the sub-rule.

(2) The liquidator shall, after settling the assets and liabilities of the Co-operative Societies as they stood on the date on which the order for winding up is made proceed next to determine the contribution to be made by each of its members, past members or by the estates of nominess, heirs or legal representatives of the deceased members or by any officer or any former officer to the assets of the society under clauses (b) and (c) of sub-secti

R.90 Approval by Registrar on order of liquidator

Section 131(2)(xxvii). - An order passed by the liquidator under clause (b) of sub-section (2) of Section 107 shall be submitted by him to the Registrar for approval. The Registrar may [after reasons to be recorded] modify such order or refer it back to the liquidator for further enquiry or action.

R.91 Submission of quarterly report by liquidator

Section 131(2)(xxvii). - The liquidator shall submit to the Registrar a quarterly report in such form as the Registrar may specify showing the progress made in the liquidation of the Co-operative Society.

R.92 Deposit of funds by liquidator

Section 131(2)(xxvii). - All funds in the charge of the liquidator shall be deposited with such institution or person as the Registrar may approve.

R.93 Expenses incurred by liqudiator

Section 131(2)(xxvii). - All expenses incurred in connection with the winding up of the co-operative society shall be subject to the approval of the Registrar.

R.94 Distribution of assets. [Section 131(2)(xxvii).

The liquidator shall distribute the realised assets to the claimants in such manner and in such priority as the Registrar may direct

R.95 Remuneration to liquidators

Section 131(2)(xxvii). - The remuneration fixed under section 106(1) shall be included in the cost of liquidation which shall be payable out of the assets of the society in priority to all other claims.

R.96 Disposal of surplus assets

Section 131(2)(xxvii). - After discharging the liabilities of the co-operative society and repayment of share capital the liquidator may utilise the surplus assets, if any, for one or more of the following purposes:-

(a) deposit the amount in a co-operative bank until a new co- operative society with similar area of operation is registered when it shall be credited to reserve fund of the new co-operative society;

(b) any purpose connected with the development of co-operative movement, subject to the approval of the Registrar;

(c) an object of public utility selected with due regard to the wishers of the members and approved by the Registrar.

R.97 Liability due to claimants whose whereabouts not known

Section 131(2)(xxxii). - If any liability cannot be discharged by the liquidator owing to the whereabouts of the claimant not being known or for any other cause the amount covered by such undischarged liability may be deposited in the Central Co-operative Bank, having jurisdiction over the area in which the Co-operative Society was functioning and shall remain at the disposal of the claimants for a period of three years after which the undrawn amount, if any, may be transferred to the State Co-operative Union for credit to the Co- operative Education Fund.

R.98 Removal of liquidator. [Section 131(1)].

A liquidator may at any time, be removed by the Registrar and he shall on such removal, hand over all the property and documents relating to the society under liquidation to such persons as the Registrar may direct.

R.99 Maintenance of accounts by liquidator

Section 131(2)(xxvii). - The liquidator shall keep such books and accounts, as may be laid down by the Registrar from time to time. The Registrar may at any time cause such books and accounts to be audited.

R.100 Final report by liquidator

Section 131(2)(xxvii). - The liquidator shall, after meeting the liabilities of the society submit a final report to the Registrar in such form as may, from time to time be specified by the Registrar.

R.101 Disposal of assets. Section 131(2)(xxvii)

All the books and records of a co-operative society whose registration has been cancelled may be destroyed except in relation to the cases pending in the court under the orders of the Registrar after the expiry of a period of three years from the date of cancellation.]

Cha.16 Execution of Awards, Decrees and Orders

R.102 Enforcement of charge

Sections 52 and 131(1). - (1) Without prejudice to any other mode of recovery provided in the Act or these Rules, the Registrar or any person subordinate to him empowered by the Registrar in this behalf on the application of a Co-operative Society make an order directing the payment of any debt or outstanding demand due to the society by any member or ex- member or deceased member by sale of the property or any interest thereon, which is subject to a charge under section 52 or section 53 :

Provided that no order [shall be] issued under this rule unless the member, past member or the nominee, heir or legal representative of the deceased member, has been served with a notice in the manner given in rule 103.

(2) The procedure for sale of property or any interest thereon under sub-rule (1) shall be the same as laid down in rule 104.

R.103 Manner and service of notice

The notice under rule 102 shall indicate the substance of the demand or debt due to the co-operative society and shall be served n the manner laid down for the service of summons. No order under rule 102 shall be made until a period of thirty days has expired from the date of service of notice.

R.104 Procedure in execution of award etc.

(1) Any decree holder requiring the provisions of clause (b) of section 110 to be applied shall apply to the Recovery Officer within whose jurisdiction defaulter resides [or carries on business] or the property of the defaulter is situated.

(2) Every such application shall be made in the form specified by the Registrar and shall be signed by the decree-holder. The decree-holder may indicate whether he wishes to proceed against the immovable property charged or mortgaged to the decree-holder or other immovable property or to secure the attachment of movable property.

(3) On receipt of such application the Recovery Officer shall verify the correctness and genuineness of the particulars set forth in the application with the records, if any, in the office of the Registrar and prepare a demand notice in writing in duplicate in the form specified by the Registrar, setting forth the name and address of the defaulter and the amount

Cha.17 Mode of Service

R.105 Mode of Service

Section 131(2)(xxx). - (1) Every summon issued under the Act shall be in writing duly authenticated by the seal of the officer by whom it is issued and shall be signed by such officer or by any person authorised by him in writing in this behalf. It shall require the person summoned to appear before the said officer at a stated date, time and place and shall specify whether his attendance is required for the purpose of giving evidence or to produce a document or for both purposes, and any particular document the production of which is required shall be described in the summons.

(2) Any person may be summoned to produce a document, without being summoned to give evidence, and any person summoned merely to produce such document shall be deemed to have complied with the summons if he causes such document to be produced instead of attending personality to produce the same.

(3) The service of summons under the Act on any person m

Cha.18 Miscellaneous

R.106 Appeals

Section 131(2)(xxviii). - For the purpose of section 114, no appeal shall be entertained unless it is accompanied by a copy of the order appealed against.

R.107 Inspection of documents

Section 131(2)(xxxv). - Any member of the public shall be permitted, on payment of a fee of five rupees, for such occasion of inspection to inspect for any lawful purpose, any public document (exclusive of public document priviledged under sections 123, 124, 128 and 131 of the Indian Evidence Act, 1872), filed in the office of the Registrar Co- operative Societies and in particular the following documents, namely:-

(1) registration register;

(2) registration certificate of a society;

(3) registered bye-laws of a society and amendments effected in such bye-laws.

(4) order cancelling the registration of a society;

(5) order directing the liquidation of registered society;

(6) annual account of the society ;

(7) any decision of the Registrar or award of an arbitrator

R.108 Fees for copies of public documents

Section 131(2)(xxxv). - The fees prescribed for certified copies of any public documents, which any person has under preceding rule a right of inspection shall be as follows :-

(1) for registration certificate ........Rs. 10.00

(2) in the case of other documents a sum calculated at the following rates:-

(i) first two hundred words or under Rs. 1.50.

(ii) every additional hundred words or fraction thereof Rs. 0.75.

R.109 Form of order

Section 131(2)(xxix). - The order of liquidator under clause (b) and clause (e) of sub-section (2) of Section 107 shall be in the form in Appendix `B'.

R.110 Special Rule

Section 131(2)(viii). - Notwithstanding anything contained in these rules, the procedure laid down in this rule shall apply to a society where the Government has :-

(a) subscribed to the share capital of a Co-operative Society; or

(b) guaranteed the principal and interest in respect of debentures issued by the society; or

(c) guaranteed the principal and interest in respect of loan and advances to the Society; or

(d) assisted the society with loan and grants; by not less than one lac rupees.

(i) At least fiften days' clear notice, specifying the date, place, time and agenda for a meeting of a general body, committee and atleast seven days clear notice for a meeting of any smallar body set up by the either of them, whether, convened by the Registrar, the Chief Executive Officer or otherwise, shall be given to all the members of the general body/committee or sm

R.111 Service of order

Section 131(2)(XL). - Any order, decision or award and other document required under the Act or any rule made thereunder to be served upon any co-operative society or any person shall, save as otherwise provided in the Act or such rules, be served.--

(a) If the document is addressed to the co-operative society:-

(i) by delivering it to the Secretary, the President, the Chairman, the Managing Director, the Manager or any other person to whom the management of the co-operative society concerned is entrusted for the time being; or

(ii) by sending it by registered post to the persons mentioned in sub-clause (i);

(b) if the document is addressed to the member, creditor or any other person;

(i) by tendering or delivering it to him; or

(ii) by sending it by registered post to him; or

(iii) if such person cannot be found, b

R.112 Appointment of relatives to any office

Section 131(1)(xxxix). - Save in a producer society, no relative of any member of the committee or of any other officer of a Co-operative Society shall be appointed to any office in the Co- operative Society except with the previous sanction of the Registrar.

R.113 Repeal

The Punjab Co-operative Society Rules, 1963, are hereby repealed :

Provided that any action taken, order issued, by laws made under the provisions of the rules hereby repealed shall, in so far as it is not inconsistent with the provisions of these rules, be deemed to have been taken, issued or made under provisions of these rules.

Form.I .

(See rule 5)

Application for Registration of A Co-Operative Society

We, the undersigned, hereby apply for the registration of a co-operative society, as proposed hereunder under Section 7(1) of the Haryana Co-operative Society Act, 1984, and enclose herewith three copies of the bye-laws as required by rule 8.

1. Name of proposed co-operative society

2. Class of co-operative society and whether limited or un-limited.

3. Address to be registered.

4. Area of operation.

5. Main objects.

6. Number of members at present.

7. Occupation of members.

8. Capital with details of shares, admission fees and deposits, if any.

9. Value of share and mode of payment.

10. Names of members of the Managing Comm

Form.2 .

(See Rule 7)

Certificate of Registration

I, hereby certify that pursuant to the provisions of the Haryana Co-operative Societies Act, 1984, the __________________________________, Co-operative Society Ltd.,__________________(Name of the place)__________________, P.O. __________ Tehsil __________________District__________________has this day been registered at No.__________________.

Given under my hand and seal this__________________day of _________.

1. Signature ___________________________________________________

2. Name of the Registering Authority _______________________________

3. Rank ______________________________________________________

4. Address ____________________________________________________

Form.3 .

(See Rule 7)

Name of the Office __________________________________________

Register of Societies Registered Under

The Haryana Co-Operative Societies Act 1984