DELHI CO-OPERATIVE SOCIETIES ACT, 1972
(1) This Act may be called the Delhi Co-operative Societies Act, 1972
(2) It extends to the whole of the Union Territory of Delhi
(3) It shall come into force on such date as the Lieutenant-Governor may, by notification in the Delhi Gazette, appoint
In this Act, unless the context otherwise requires,
(a) "by-laws" means the registered by-laws for the time being in force, and includes registered amendments of such by-laws
;
(b) "committee" means the governing body of a co-operative society, by whatever name called, to which the management of the affairs of the society is entrusted
;
(c) "co-operative bank" shall have the same meaning as is assigned to it in the Deposit Insurance Corporation Act, 1961
;
(d) "co-operative society" means society registered or deemed to be registered under that Act
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(1) The Lieutenant-Governor may appoint a person to be the Registrar of Co-operative Societies for the Union Territory of Delhi and may appoint other persons to assist him
(2) The Lieutenant-Governor may, by general or special order, confer on any person appointed to assist the Registrar all or any of the powers of the Registrar under This Act
(3) Every person appointed to assist the Registrar shall exercise the powers conferred on him under sub-section (2) subject to the general guidance, superintendence and control of the Registrar
(4) The Lieutenant-Governor may, by notification in the Delhi Gazette and subject to such conditions as he may think fit to
(1) Subject to the provisions hereinafter contained, a society which has as its object the promotion of the economic interests of its members in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act with or without limited liability :
Provided that no society shall be registered if it is likely to be economically unsound or the registration of which may have an adverse effect on the development of co-operative movement:
Provided further that, unless the Lieutenant-Governor, 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 th
No society other than a federal society shall be registered under this Act unless it consists of at least ten persons (each of such persons being a member of different family), who are qualified to be members under this Act and who reside in the area of operation of the society.
Explanation, For the purpose of this section the expression "member of a family" means wife, husband, father, mother, grand-father, grand-mother, step-father, step-mother, son, unmarried daughter, unmarried step-daughter, step-son, grandson, unmarried granddaughter, unmarried sister, unmarried half-sister, brother, half-brother, and wife of brother or half-brother
No member other than the Central 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 ten thousand rupees, whichever is less
(1) For the purposes of registration, an application shall be made to the Registrar
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(2) The application shall be signed,
(a) in case of a society of which no member is a co-operative society by at least ten persons qualified in accordance with the requirements of section 5; and
(b) in case of a 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
Where any question arises whether for the purpose of this Act a person resides in the area of operation of a society or not, or whether a society is of same type as another society or of different type, the question shall be decided by the Registrar whose decision shall be final.
(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 by-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 by-laws
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(2) When the Registrar refuses to register a society, he shall communicate the order of refusal, together with the reasons therefor, to such of the applicants as may be prescribed
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Where a society is registered under this Act, 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) No amendment of any by-laws of a co-operative society shall be valid unless such amendment has been registered under this Act
(2) Every proposal for such amendment shall be forwarded to the Registrar and if the Registrar is satisfied that the proposed amendment
(a) is not contrary to the provisions of this Act and the rules
(b) does not conflict with co-operative principles; and
(c) will promote the economic interests of the members of the society, he may register the amendment
(3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered
An amendment of the by-laws of a co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.
(1) A co-operative society may by an amendment of its by-laws, change its name but such change shall not affect any right or obligation of the society or of any of its members or past members, and any legal proceedings pending may be continued by or against the society under its new name
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(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 this Act and the rules, a co-operative society may, by an amendment of its by-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 by-law or contract to the contrary, any member or 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 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 a by-law of a co-operative society changing t
(1) A co-operative society may, with the previous approval of the Registrar and by a resolution passed by a two-thirds majority of the members present and voting at a general meeting of the society,
(a) transfer its assets and liabilities in whole or in part to any other cooperative society
(b) divide itself into two or more co-operative societies
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(2) Any two or more co-operative societies may, with the previous approval of the Registrar and by a resolution passed by a two-thirds majority of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new co-operative society
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(3) The resolution of a co-operat
(1) Where the Registrar is satisfied that it is essential in the public interest, or in the interest of the co-operative movement, or for the purpose of securing the proper management of any co-operative society that two or more co-operative societies should be amalgamated or any co-operative society should be divided to form two or more co-operative societies or should be reorganised, then notwithstanding anything contained in Section 15, but subject to the provisions of this section, the Registrar may, by order, provide for the amalgamation, division or reorganisation of these cooperative societies into a single society or into societies with such constitution; property rights, interest and authorities and such liabilities, duties and obligation as may be specified in the order:
Provided that no such order of amalgamation, division or reorganisation in respect of a co-operative
When an order of moratorium has been made by the Central Government under sub-section (2) of Section 45 of the Banking Regulation Act, 1949, in respect of a co-operative bank, the Registrar with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme
(a) for the reorganisation of the Co-operative Bank; or
(b) for the amalgamation of the co-operative bank with any other cooperative bank
Notwithstanding anything contained in Sections 15 and 16 or any other provision of this Act, where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance Corporation Act, 1961, is amalgamated or re-organised and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of Section 16 of that Act, the bank with which insured bank is amalgamated, or the new co-operative bank formed after such amalgamation, or as the case may be, the insured bank or transferee bank shall be under an obligation, to repay the Deposit Insurance Corporation in the circumstances, to the extent of and in the manner referred to in Section 21 of the Deposit Insurance Corporation Act, 1961
(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 section 15 or section 16, the registration of the first mentioned cooperative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body
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(2) Where two or more co-operative societies are amalgamated into a new co-operative society in accordance with the provisions of Section 15 or Section 16, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each society shall be deemed to have been dissolved and shall cease to exist as a corporate body
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(3) Where
(1) 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, 1972
(b) any other co-operative society
(c) the Central Government; and
(d) such class or classes of persons or association of persons as may be notified by the Lieutenant-Governor in his behalf :
Provided that the provisions of clause (a) shall not apply to an individual seeking admission to a society exclusively formed for the benefit of students of a school or college
(2) Notwithstanding anything contained in sub-section (1), the Lieutenant- Governor may, having regard to the
(1) Notwithstanding anything contained in clause (d) of Section 20, a co-operative society may admit any person as a nominal or associate member in accordance with its by-laws
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(2) A nominal or associate member shall not be entitled to any share in any form whatsoever, in the assets or profits of the co-operative society
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(3) Save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be subject to such liabilities of a member, as may be specified in the by-laws of the society
No member of a co-operative society shall exercise the right of a member unless he has made such payment to the society in respect of membership or has acquired such interest in the society as may be specified in the by-laws
Every member of a co-operative society shall have one vote in the affairs of the society.
Provided that
(a) in the case of an equality of votes, the chairman shall have a second or casting vote
(b) a nominal or associate member shall not have the right of vote; and
(c) where the Central Government is a member of the co-operative society, each person nominated by the Central Government on the committee shall have one vote
(1) Every member of a co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy
(2) Notwithstanding anything contained in sub-section (1), a co-operative society which is a member of another cooperative society, may, subject to the rules, appoint one of its members to vote on its behalf in the affairs of that 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 maximum holding as are specified in Section 6
(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, or, 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 nominee, heir or legal representative, as the case may be, a sum representing the value of such members share or interest as ascertained in accordance with the rules or bylaws :
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
(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a 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
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(2) Where a co-operative society is ordered to be wound up under Section 63, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceding the date of the order of winding up shall continue until the entire liquidation proceedings are completed but such liability shall extend only to
(1) The final authority in a co-operative society shall vest in the general body of members: Provided that where the by-laws of a co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such by-laws, the smaller body shall, exercise such powers of the general body as may be prescribed or as may be specified in the by-laws of the society
(2) Notwithstanding anything contained in sub-section (2) of Section 24 each delegate shall have one vote in the affairs of the society
(1) Every co-operative society shall, within a period of six months next after the date fixed for making-up its accounts for the year under the rules for the time being in force, call a general meeting of its members for the purpose of
(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year
(b) election, if any, of the members of the committee other than nominated members subject to the provisions of Section 31
(c) consideration of the audit report and the annual report
(d) disposal of the net profit; and
(e) consideration of any other matter which may be brought forward in accordance with by-laws:
Provide
(1) The committee of a co-operative society may, at any time, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be provided in the by-laws
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(2) If a special general 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 meeting and that meeting shall be deemed to a be a meeting called by the committee, and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the society or by any such person or persons who, in the opinion of the Regist
(1) The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of elections of the members of the committees of such co-operative societies or class of co-operative societies, as may be prescribed shall be vested in such returning officers not below the rank of gazetted officers as may be appointed by the Lieutenant-Governor in this behalf
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(2) The vote at such elections shall be by secret ballot
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(3) The term of office of the elected members of the committee shall be such, not exceeding three co-operative years including the co-operative year of their election, as may be specified in the by-laws of the society :
Provided that the elected members shall c
(1) If, in the opinion of the Registrar, the committee of any co-operative society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or the by-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
(2) The Registrar may fix any remuneration for the administrator, as he may think fit. Such remuneration shall be paid out of the funds of the society
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(3) The administrator shall, subject to the control of the Registrar and to such instructions as he may from time to time give have power to exercise all or any of the functions of the committee or of any off
(1)
(a) If the record, registers or the books of accounts of a co-operative society are likely to be tampered with or destroyed and the fund and property of a society are likely to be misappropriated or misapplied; or
(b) If the committee of a co-operative society is reconstituted at a general meeting of the society or the committee of a society is removed by the Registrar under Section 32 or if the society is ordered to be wound up under Section 63 and the outgoing members of the committee refuse to hand over charge of the records and property of the society to those having or entitled to receive such charge, the Registrar may apply to the magistrate, within whose jurisdiction the society functions, for securing the records and property of the society
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No act of a co-operative society or of any committee or of 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 in the appointment or election of an officer or on the ground that such officer was disqualified for his appointment
The registration of a co-operative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to hold property, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.
(1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a 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 for cattle, agricultural or industrial implements or machinery, raw materials 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
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(2) No person shall transfer any property which is subject to a charge under sub-section (1) except with the previous permission in writing of the co-operative society which holds the
(i) any person who makes an application to a society of which he is a member for a loan shall, if the owns any land or has interest in any land as a tenant, make a declaration in he prescribed form which shall state that the applicant thereby creates a charge on such land or interest specified in the declaration for the payment of the amount of the loan which the society may make 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 as such member subject to such maximum as may be determined by the society together with interest on such amount of the loan and advances
;
(ii) any person who has borrowed a loan from a society of which he is a member before the date of the coming into force of this Act, and who owns any land or has any interest in land as a tena
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 member or the estate of deceased member in or towards payment of any such debt
Subject to the provisions of Section 38, the share or contribution of a member of 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
Any register or list of members or shares kept by any co-operative society shall be prima facie evidence of any of the following particulars entered therein :
(a) the date on which any person entered in such register or list became a member
(b) the date on which any person ceased to be a member
(1) A copy of any entry in a book of a 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 prima facie evidence of the existence of such entry, and shall be admitted as evidence of the 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 offer 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 societys books or documents the contents of which can be provided under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under
Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian, Registration Act, 1903 shall apply to
(1) 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
(2) 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 the benefit of the holders of such debentures; or
(3) an endorsement upon or transfe
(1) The Central Government may, by notification in the Official Gazette, remit the income-tax payable in respect of the profits of any class of co-operative societies or the dividends or other payments received by members of any class of such societies on account of profits
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(2) The Central Government may, by notification in the Official Gazette, 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
(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 his 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
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(2) On the execution of such agreement, the employer shall, if so required by the co-operative society by a requisition in writing and so long as the society does not intimate 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, as if it were a part of the salary or wages payable on the day
Notwithstanding anything contained in any law for the time being in force the Central Government may
(a) subscribe to the share capital of a co-operative society
(b) give loans or make advances to co-operative societies
(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 Central 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 subsid
Funds not to be divided by way of profit No part of the funds of a co-operative society shall be divided by way of bonus or dividend or otherwise among its members:
Provided that after at least one-fourth of the net profits in the year has been carried to the reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made to the member to such extent and under such conditions as may be prescribed by the rules or by-laws
Any co-operative society may, with the sanction of the Registrar, after one-fourth of the net profits in any year has been carried to the reserve fund, contribute an amount not exceeding five per cent of the remaining net profits to any purpose connected with the development of co-operative movement or charitable purpose as defined in section 20 of the Charitable Endowments Act, 1890
A co-operative society shall out of its net profits in any year credit such portion of the profits not exceeding five per cent as may be prescribed to the Co-operative Education Fund constituted under the rules
(1) A co-operative society may invest or deposit its fund
(a) in the post office savings Bank; or
(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882; or
(c) in the shares or securities of any other co-operative society; or
(d) with any bank carrying on the business of banking approved for this purpose by the Registrar; or
(e) in any other mode permitted by the rules
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(2) Any investment or deposits made before the commencement of this Act which would have been valid if this Act had been in force are hereby rectified and confirmed
(1) A co-operative society shall not make a loan to any person other than a member:
Provided that with the general or special sanction of the Registrar a co-operative society may make loan to another co-operative society
(2) Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to a depositor within his deposit on its security
A co-operative society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as may be specified in the bylaws
Save as provided in sections 50 and 51, the transactions of a co-operative society with any person other than a member shall be subject to such prohibitions and restrictions, if any, as may be prescribed
(1) The Registrar shall audit or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every co-operative society at least once in each year
(2) The audit under sub-section (1) shall include an examination of overdue debts, if any, the verification of the cash balance and securities, and a valuation of the assets and liabilities of the society
(3) The person auditing the accounts of a co-operative society shall have fresh access to the books, accounts; papers, vouchers, stock and other property of such societies and shall be allowed to verify its cash balance and securities
(4) The directors, managers, administrators and other officers of the society Shall furnish to the person auditing the accounts of a co-operative society al
The Registrar, or any person authorised by general or special order in this behalf by him, may inspect a co-operative society. For the purpose of inspection, the Registrar or the person so authorised by him shall at all times 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 inspection take them into custody and shall have power to verify the cash balance of the society and subject to the general or special order of the Registrar to call a committee meeting and a general meeting. Every officer or member of the society shall furnish such information with regard to the working of the society as the Registrar or the person making such inspection may require.
(1) The Registrar may of his own motion or on the application of the 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 co-operative 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 purpose of examination free access to the books, accounts, cash and other properties belonging to or in the custody of that society and may summon any person in possession or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same at any place specified by him;
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(1) The Registrar shall on the application of a creditor of a 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 sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
(b) deposits with the Registrar such sum as security for the costs of proposed inspections 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 55, or an inspection is made under section 56, the Registrar may apportion the costs or such part of the costs as he may think fit, between the society, the members or creditor demanding an inquiry or inspection and 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 thereunder has had reasonable opportunity of being heard;
(b) the Registrar shall state in writing under his own hand the grounds on which the costs are apportioned
(1) Any sum awarded by way of costs under section 57 may be recovered, on application to a magistrate having jurisdiction in the place where the person from whom the money is claimable actually and voluntarily resides or carries on business and such magistrate shall recover the same as if it were a fine imposed by himself
(1) If in the course of an audit inquiry, inspection or the winding up of a co-operative society it is found that any person who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society had made any payment contrary to this Act, the rules or the by-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society the Registrar may of his own motion or on the application of the committee liquidator or any creditor inquire himself or direct any person authorised by him by an order in writing in his behalf to inquire into the conduct of such person:
Provided that no such inquiry shall be held after the expiry of six years from the date of any act or omission
(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 regarding disciplinary action taken by the society or its committee against a paid employee of the society arises
(a) among members, past members and persons claiming through members, past members and deceased members, or
(b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society of 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, past agent or past employee or the nominee, heirs o
(1) The Registrar may, on receipt of the reference of dispute under Section 60,
(a) decide the dispute himself, or
(b) transfer it for disposal to any person who has been invested by the Lieutenant-Governor with powers in that behalf, or
(c) refer it for disposal to one arbitrator
(2) The Registrar may withdraw any reference transferred under clause (b) of sub-section (1) or referred under clause (c) of that sub-section and decide it himself or refer the same to another arbitrator for decision
(3) The Registrar or any other person to whom a dispute is referred for decision under this section may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in the interest
(1) If a co-operative society is unable to pay its debts to a financing bank by reason of its members committing default in the payment of the moneys due by them, the financing bank may direct the committee of such a society to proceed against such members under section 60 and if the committee fails to do so within a period of ninety days from the date of receipt of such direction, the financing bank itself may proceed against such members in which case the provisions of this Act, the rules or the by-laws shall apply as if all references to the society or its committee in the said provisions were references to the financing bank
(2) Where a financing bank has obtained a decree or award against a society in respect of moneys due to it from the society, the financing bank may proceed to recover such moneys firstly form the assets of the society and secondly from the members to the ex
(1) If the Registrar, after an inquiry has been held under section 55, or an inspection has been made under Section 56, or on receipt of an application made by not less than three-fourths of the members of a co-operative society, is of the opinion that the society ought to be wound up, he may issue an order directing it to be wound up
(2) The Registrar may of his own motion make an order directing the winding up of a co-operative society
(a) where it is a condition of the registration of the society that the society shall consist of at least ten members and the number of members has been reduced to less than ten, or
(b) where the co-operative society has not commenced working or has ceased to function in accordance with co-operative principles
(3)
Notwithstanding anything to the contrary contained in this Act, the Registrar shall make an order for winding up of a Co-operative Bank, if so required by the Reserve Bank in the circumstances mentioned in section 13D of the Deposit Insurance Corporation Act, 1961
Where a Co-operative Bank being an insured Bank within the meaning of the Deposit Insurance Corporation Act, 1961, is wound up, or taken into liquidation, and the Deposit Insurance Corporation has become liable to the depositors of the insured Bank under sub-section (1) of section 16 of that act, the Deposit Insurance Corporation shall be reimbursed by the liquidator or such other person in the circumstances to the extent and in the manner provided in section 21 of the Deposit Insurance Corporation Act, 1961.
(1) Where the Registrar has made an order under section 63 for the winding up of a co-operative society, the Registrar may appoint a liquidator for the purpose and fix his remuneration
(2) A liquidator shall on, appointment, take into his custody or under his control all the property, effects and actionable claims to which the society is or appears to be entitled and shall take such steps as he may deem necessary or expedient, to prevent loss or deterioration of, or damage to such property, effects and claims. 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 76, an order of winding up of a co-operative society made under Section 63 shall not operate thereafter until the order is confirmed in appeal :
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(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 66 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise
.
(2) Such liquidator shall also have power, subject to the control of the Registrar
(a) to institute and defend suits and other legal proceedings on behalf of the 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 members or by the estates or nominees, heirs or l
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 solvency proceedings
(1) The Registrar may after considering report of the liquidator made to him under sub-section (3) of Section 67 order the registration of the co-operative society to be cancelled.
(2) An order passed under sub-section (1) shall be communicated by registered post to the president of the society and to the financing institutions, if any, of which the society was a member
Notwithstanding anything contained in Chapter VIII or any other law for the time being in force, but without prejudice to any other mode of recovery provided in this Act, the Registrar or any person subordinate to him empowered by the Registrar in this behalf may on the application of a cooperative society, make an order directing the payment of any debt or outstanding demand due to the society by any member or past or deceased member, by sale of the property or any interest therein, which is subject to a charge under section 36 :
Provided that no order shall be made under this section unless the member, past member or the nominee, heir or legal representative of the deceased member, has been served with a notice in the manner prescribed
Every decision, award or order duly passed by the Registrar or arbitrator or Tribunal under section 29, section 30, section 59, section 61, section 70, section 76, section 78 or section 79, shall if not carried out,
(a) where the decision, award or order provides for the recovery of money, be executed according to the law for the time being in force relating to the recovery of land revenue :
Provided that an application for the recovery of any sum in the manner aforesaid shall be made to the Collector and shall be accompanied by a certificate signed by the Registrar or by any person subordinate to him and empowered by the Registrar in this behalf; and
(b) in any other case be executed by the Registrar or any person subordinate to him and empowered by the Registrar in this behalf, in the same
The orders of the liquidator under section 67 shall be executed according to the Act and under the rules for the time being in force for the recovery of arrears of land revenue
Where the Registrar is satisfied that a party to any reference made to him under section 60 with intent to defeat or delay the execution of any decision that may be passed thereon is about to
(a) dispose of the whole or any part of the property, or
(b) remove the whole or any part of the property from the local limits of the jurisdiction of the Registrar, the Registrar may, unless adequate security is furnished, direct the conditional attachment of the said property or such part thereof as he thinks necessary. Such attachment shall be executed by a civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such an order :
Provided that the powers of the Registrar under this section shall not be delegated to any officer below such
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 the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963.
(1) All sums due from a co-operative society, or from an officer or member or past member of a co-operative society as such, to Government, including any costs awarded to Government under a provision of this Act, may on a certificate issued by the Registrar in this behalf, be recovered in the same manner as arrears of land revenue
.
(2) Sums due from a co-operative society to Government and recoverable under sub-section (1), may 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 societies, from the members, past members or the estates of the deceased members :
Prov
(1) Subject to the provisions of section 77, an appeal shall lie under this section against
(a) an order of the Registrar made under sub-section (2) of section 9 refusing to register a society;
(b) an order of the Registrar made under sub-section (4) of section 11 refusing to register an amendment of the by-laws of a co-operative society;
(c) an order of the Registrar made under sub-section (1) of section 16;
(d) a decision of a co-operative society refusing to admit any person as a member of the society who is otherwise duly qualified for membership under the by-laws of the society;
(e) a decision of a co-operative society expelling any of its members;
(f) an
Notwithstanding anything contained in this Act, where with the previous sanction in writing or on requisition of the Reserve Bank,
(i) a Co-operative Bank is being wound up; or
(ii) in respect of which a scheme of amalgamation or reorganisation is given effect to; or
(iii) in respect of which an order for the supersession of the committee and the appointment of an administrator therefor has been made, no appeal, revision or review there against shall lie or be permissible, and the sanction or requisition of the Reserve Bank shall not be liable to be called in question
(1) The Lieutenant-Governor shall constitute a Tribunal to be called the Delhi Co-operative Tribunal to exercise the functions conferred on the Tribunal by or under this Act.
(2) The Tribunal shall consist of not more than three members possessing such qualifications as may be prescribed.
(3) Any vacancy in the membership of the Tribunal shall be filled by the Lieutenant-Governor.
(4) Subject to the previous approval of the Lieutenant-Governor, the Tribunal shall frame regulations consistent with the provisions of this Act and the rules made thereunder for regulating its procedure and the disposal of its business.
(5) The regulations made under sub-section (4) shall be published by the Lieutenant-Governor in the Delhi Gazette.
&
(1) The Tribunal may either on the application of the Registrar, or on the application of any party interested review its own order in any case, and pass in reference thereto such order as it thinks just.
Provided that no such application made by the party shall be entertained unless the Tribunal is satisfied that there has been the discovery of new and important matter of evidence, which after the exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when its order was made or that there has been some mistake or error apparent on the face of the record, or for any other sufficient reason :
Provided further that no such order shall be varied or revised unless notice has been given to the parties interested to appear and be heard in support of such order
&
Subject to the provisions of section 77, the Lieutenant-Governor may, suo moto or on the application of a party to a reference, call for and examine the record of any proceedings in which no appeal lies to the Lieutenent-Governor under section 76 (not being any proceedings in which an appeal lies to the Tribunal) for the purpose of satisfying himself as to the legality and propriety of any decision or order passed and if in any case it shall appear to him that any such decision or order should be modified, annulled or revised, he may pass such order thereon as he may deem fit
Where an appeal is made under section 76 or where Tribunal or Lieutenant- Governor calls for the record of a case under section 78 or section 80, the appellate authority or the Tribunal or Lieutenant-Governor, as the case may be, may, in order to prevent the ends of justice being defeated, make such interlocutory order, including an order of stay, pending the decision of the appeal or revision as such authority or the Tribunal or Lieutenant-Governor may deem fit.
(1) Any person other than a co-operative society carrying on business under any name or title of which the word "co-operative" or its equivalent in any Indian language, is part, without the sanction of the Lieutenant Governor shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing breach with a further fine which may extend to five hundred rupees for every day during which the 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 36 and 37 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 hundred
(1) No court inferior to that of a 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 shall have an 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 thirty days of such change.
Every co-operative society shall keep a copy of this Act, the rules and its by-laws and also a list of its members, open to inspection free of change at all reasonable rimes 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 successor-in-interest of any name or title under which he carried on business at the date on which the Co-operative Societies Act, 1912, came into operation.
Notwithstanding anything contained in this Act, the Lieutenant-Governor may, by general or special order and subject to such conditions, if any, as he may impose, exempt any society or class of societies from any of the requirements of this Act as to registration
The Lieutenant-Governor may, by general or special order, to be published in the Delhi Gazette, exempt any co-operative society or any class of cooperative societies from any of the provisions of this Act, or may direct that such provisions shall apply to such societies of class or societies with such modifications as may be specified in the order
Any person appointed as liquidator under the provisions of this Act or the rules shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
No suit shall be instituted against a co-operative society or any of its officers in respect of any act touching the business of the society until the expiration of three 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.
The provisions of the Companies Act, 1956 shall not apply to co-operative Societies
(1) Every society now existing which has been registered under the Co- oparative Credit Societies Act, 1904 or under the Co-operative Societies Act, 1912, or under the Bombay Co-operative Societies Act, 1925 as in force in the union Territory of Delhi, shall be deemed to be registered under the corresponding provisions of the Act, and its by-laws shall, so far as the same are not inconsistent with the express provisions of this Act, continue in force until altered or rescinded.
(2) All appointments, rules and orders made, notifications and notices issued and suits and other proceedings instituted under the said Acts shall, so far as they are consistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling registration of a society shall be deemed, unless the society has already been finall
(1) Save as provided in this Act, no civil or revenue court shall have any jurisdiction in respect of
(a) the registration of a co-operative society or its by-laws or of an amendment of a by-law;
(b) the removal of a committee;
(c) any dispute required under section 60 to be referred to the Registrar; and
(d) any matter concerning the winding up and the 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
&n
(1) In exercising the functions conferred on him by or under this Act, the Registrar, the arbitrator or any other person deciding a dispute under section 61 and the liquidator of a co-operative society or person entitled to audit, inspect or hold an inquiry and the Tribunal, shall have all the powers of a civil court, while trying a suit under the Code of Civil Procedure, 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
.
(2) I
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 Lieutenant-Governor shall as soon as may be after commencement of this Act, constitute a common service comprising of officers and other employees of different classes of co-operative societies and shall determine the number and designation of such officers and other employees
.
(2) The Lieutenant-Governor shall make rules regulating the qualifications, remuneration, allowances, recruitment and other conditions of service of such officers and other employees of the co-operative societies
(1) The Lieutenant-Governor may, for any co-operative society or class of co-operative 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 following matters, namely
(i) the maximum number of shares or portion of the capital of a cooperative society which may, subject to provisions of section 6, be held by a member;
(ii) the form to be used and the conditions to be complied within the making of applications for the registration of a society and the procedure in the matter of such applications;
(iii) the procedure and conditions for change in the form and extent of the liability of a co-operative society :
&
On the day on which the Delhi Co-operative Societies Act, 1972 comes into force the Bombay Co-operative Societies Act, 1925 as in force in the Union Territory of Delhi shall stand repealed :
Provided that the repeal shall not affect
(a) the previous operation of the Act so repealed or anything duly done or suffered thereunder; or
(b) any right, privilege, obligation or liability acquired, accrued or incurred under the Act so repealed; or
(c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the Act so repealed; or
(d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as
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