TAMIL NADU CO-OPERATIVE SOCIETIES ACT, 1983
(1) This Act may be called THE TAMIL NADU CO-OPERATIVE SOCIETIES ACT, 1983.
(2) It extends to the whole of the State of Tamil Nadu.
(3) It shall come into force on such date as the Government may, by notification, appoint.
In this Act, unless the context otherwise requires.-
(1) “agriculture” includes horticulture, floriculture, raising of crops (including plantation, tree crops and garden produce), seed farming and forestry and the word ‘agricultural’ shall be construed accordingly;
(2) “agricultural producers marketing society” means a registered society which has as its principal object the arranging for and the undertaking of purchase, storing, processing and marketing of the agricultural and other produce or products of its members of the undertaking of the distribution of commodities and includes any registered society which has as its principal object the provision of facilities for the operation of an agricultural producers marketing society.
(3) “agricultural service co-operative society”
The Government may appoint any officer of the Government to be Registrar of co-operative societies for the State of Tamil Nadu or any portion of it or for any class or classes or category or categories of registered societies, and may, be general or special order, confer on Substituted by Act 36 of 1989. [ any other officer of the Government or any officer of any body corporate owned or controlled by the Government] all or any of the powers of a Registrar under this Act.
Subject to the provisions of this Act, a society which has as its object the promotion of the economic interest or general welfare 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 limited or unlimited liability:
Provided that the liability of –
(i) a society of which a registered society is a member; and
(ii) an agricultural service co-operative society registered after the commencement of this Act, shall be limited.
(1) Subject to any rules made in this behalf, any registered society may, at a meeting of its general body specially called for the purpose of which at least fifteen clear day’s notice shall be given to its members, resolve to change its liability from unlimited to limited and to amend its by-laws for this purpose.
(2) (i) When a registered society has passed a resolution under sub-section (1) , a copy of the said resolution shall be sent to all the members and creditors of the society.
(ii) Any member of such society may, notwithstanding any by-laws, to the contrary, by notice given to the society within a period of two months from the date of receipt by him of the resolution, intimate his intention not to continue as a member of the society and to withdraw his share or interest in the capital and other moneys due to him.
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(1) No society, other than a society of which a member is a registered society, shall be registered under this Act which does not consist of at least twenty-five independent persons qualified to be admitted as members under this Act and residing or owning immovable property in the area of operation of the society.
Explanation I.- For the purposes of this sub-section, an independent person means a person who is not dependent upon another person joining in the application for the registration of the society for his means of livelihood and who does not belong to the family of any other person joining in the application for the registration of the society.
Explanation II- For the purposes of Explanation I, “family” includes husband or wife, as the case may be, and the dependent children and dependent parents.
(2) The word “limited” shall
When any question arises whether for the purposes of this Act any person is an independent person or is a resident of, or owns immovable property in the area of operation of a society, the question shall be decided by the Registrar within, such period as may be prescribed.
(1) An application for registration shall be made to the Registrar in the prescribed form.
(2) The application shall be signed.-
(a) In the case of a society of which no member is a registered society, by at least twenty-five persons qualified in accordance with the requirements of sub-section (1) of section 6 and sub-section (1) of section 21 and who are not disqualified for admission as members under sub-section (1) of section 23, and
(b) In the case of a society of which a member is a registered society, by a duly authorized person on behalf of every such registered society, and where all the members of the society are not registered societies, by twenty-five other members or, when there are less then twenty-five other members, by all of them.
(1) If the Registrar is satisfied that _
(a) the application for registration of the proposed society complies with the provisions of this Act and the rules;
(b) the objects of the proposed society are in accordance with the provisions of section 4;
(c) the proposed society complies with the requirements of sound business and has reasonable chances of success;
(d) the area of operation of the proposed society does not overlap the area of operation of another registered society of the same class or category save as permitted by the Registrar; and
(e) the proposed by-laws of the society are not contrary to the provisions of this Act or the rules or to the co-operative principles or to any other law appl
Where a society is registered or deemed to have been registered under sub-section (1) , or as the case may be, under sub-section (3) of section 9, the Registrar shall issue to the Chief Promoter a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered unless it is proved that the registration of the society has been cancelled.
(1) No amendment of any by-law of a registered society shall be valid until the same has been registered under this Act.
(2) An application for the registration of amendment of the by-laws of a registered society shall be made to the registrar in the prescribed manner and shall be accompanied by a copy of the amendment of the by-laws.
(3) If the Registrar is satisfied that an amendment of the by-laws is not contrary to the provisions of this Act or the rules or to the co-operative principles or to any other law applicable to the society, he may within such time as may be prescribed register the amendment:
Provided that no order refusing to register the amendment of the by-laws shall be passed except after giving the registered society an opportunity of making its representations
(1) Where the Registrar is satisfied that for the purpose of altering the area of operation of a registered society or for the purpose of improving the services rendered by it or for any other purpose specified in the rules, an amendment of the by-laws is necessary, he may, after consulting in the manner prescribed the board of the financing bank, if any , to which the society is affiliated, by notice in writing, call upon the society to show cause, within such time as may be specified in the notice, why the amendment should not be made.
Provided that if the board of the financing bank does not communicate its comments within sixty days of the receipt of the communication from the Registrar in this regard it shall be deemed that the board of the financing bank has no comments to make on the amendment proposed to the by-laws under this sub-section.
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(1)(a) Any registered society, may, at a meeting of its general body specially called for the purpose of which at least, fifteen clear days notice shall be given to its members, resolve to divide itself into two or more societies. The said resolution (hereafter in this sub-section referred to as the preliminary resolution) shall contain proposals for the divisions of the assets and liabilities of the society among the new societies into which it is proposed to divide it and may prescribe the area of operation of, and specify the members who will constitute, each of the new societies. The proposed by-laws of the new societies shall be annexed to the preliminary resolution.
(b)(i) A copy of the preliminary resolution shall be sent to all the members and creditors of the society.
(ii) Any member of the society may, notwithstanding
Section 13 of the Tamil Nadu Co-operative Societies Act, 1983, governs the division, amalgamation, and certain structural alterations of registered co-operative societies. It plays a crucial role in facilitating organizational restructuring in accordance with societal needs and legal provisions, ensuring the smooth functioning and adaptability of co-operative societies within the framework of the law.
Note: The references are based on the available sources, primarily emphasizing the provisions and judicial interpretations related to Section 13 of the Tamil Nadu Co-operative Societies Act, 1983.
(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 registered society, that two or more registered societies should be amalgamated, then, notwithstanding anything contained in section 13 but subject to the provisions of this section, the Registrar may, by order notified in the Tamil Nadu Government Gazette, provide for the amalgamation of these societies into a single registered society with such constitution, property rights, interests and authorities, and such liabilities, duties and obligations, as may be specified in the order.
(2) No order shall be made under this section, unless-
(a) a copy of the proposed order has been sent in draft to each of the societies concerned and a copy of th
Section 14 of the Tamil Nadu Co-operative Societies Act, 1983, deals with the power of the Registrar to direct the amalgamation of societies in the public interest or for other specified reasons. It provides a statutory framework for the consolidation of cooperative societies, ensuring efficient management and safeguarding members’ interests.
Section 14 empowers the Registrar to direct the amalgamation of two or more societies if it is deemed necessary in the public interest or for the better management of the societies. The section specifies the procedure for such amalgamation, including the issuance of a scheme and the rights of members to object.
Section 14 applies to registered cooperative societies under the Tamil Nadu Co-operative Societies Act, 1983. It provides a mechanism for voluntary or compelled amalgamation, primarily aimed at promoting organizational efficiency, financial stability, and better service delivery to members.
While Section 14 itself does not specify penalties, contravention of its provisions, such as acting against the directions of the Registrar or obstructing the amalgamation process, may attract penalties under other sections of the Act, including penalties for acting in contravention of the Act or Rules [Section 40, 41, 95, 105].
Note: The references are drawn from the provided sources, emphasizing the legal principles, procedural safeguards, and judicial considerations relevant to Section 14.
(1) Two or more registered societies may, at meetings of their respective general bodies specially called for the purpose of which at least fifteen clear days’ notice shall be given to their respective member, resolve to effect in whole or in part a transfer among themselves of their respective assets and liabilities. The said resolution is hereafter in this section referred to as the preliminary resolution.
(2) (a) A copy of the preliminary resolution of each society shall be sent to all its members and creditors.
(b) Any member of any such society, may, notwithstanding any by-laws to the contrary, within a period of one month, from the date of receipt by him of the preliminary resolution, intimate his intention to withdraw his share or interest in the capital and other moneys due to him from the society, by notice given to th
The Registrar shall, in accordance with the rules made in this behalf, classify and categorize registered societies with reference to this objects, area of operation, membership or any other matter specified in the rules.
Any registered society may, in accordance with and subject to such conditions as may be specified in the rules made in this behalf, resolve to convert itself into a registered society of a class or category different from the one to which it belongs:
Provided that where any amendment of the by-laws proposed by a society is in the opinion of the Registrar, such as to convert the society into a society of a class or category different from the one to which it belongs, the Registrar may direct the society to take action under this section.
Any registered society may, with the previous approval of the Registrar, by resolution passed by a majority of the members present and voting at a general meeting of such society, enter into an agreement with any other registered society, or any undertaking of the Government or the Central Government for carrying on jointly any specified business.
There shall be a co-operative union for the State of Tamil Nadu called “Tamil Nadu Co-operative Union Limited”, and as many district co-operative unions as may be deemed necessary for a district or part thereof.
(1) Notwithstanding anything contained section 21, every registered society shall, with effect on and from the date of the commencement of this Act, or with effect on and from the date of its registration, whichever date is later, be deemed to be a member of the District Co-operative Union or the Tamil Nadu Co-operative Union, as the case may be, if such registered society is eligible to become a member of any such union in accordance with the by-laws of such union.
(2) Every registered society shall pay to the co-operative union of which it is deemed to be a member under sub-section (1), an annual subscription at such rate as may be prescribed.
(1) (a) Subject to the provisions of Section 23-
(i) any individual competent to contract under section 11 of the Indian Contract Act, 1872 (Central Act IX of 1872)
(ii) any other registered society.
(iii) the Government, and
(iv) any body of persons whether incorporated or not and whether or not established by or under any law, if such body is approved by the Government in this behalf by general or special order, shall be eligible for admission as a member of a registered society:
Provided that the individual or the registered society or the body of persons referred to in items (i), (ii) and (iv) shall possess such further qualifications as may be specified in the rules or the by
(1) Notwithstanding anything contained in section 21, every registered society of such class as may be prescribed may admit any person possessing such qualifications as may be prescribed, as an associate member.
(2) Except as otherwise provided in the rules, an associate member shall not be entitled to participate in the general meeting of the registered society, or in the elections to the board of such society or to become an officer of the registered society or to any share in any form whatsoever in the assets or profits of the registered society.
(1) No person shall be eligible for admission as a member of society, if he-
(a) is an applicant to be adjudicated an in solvent or is an undischarged insolvent; or
(b) has been sentenced for any offence involving moral turpitude punishable under any law with imprisonment for one year and upwards, such sentence not having been annulled and a period of one year has not year has not elapsed from the date of the expiration of the sentence; or
(c) is a paid officer or servant of the society or of its financing bank or of any registered society for which it is the financing bank; or
(d) has been expelled from membership under this Act and a period of three years has not elapsed from the date of such expulsion; or
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(1) Every member of a registered society shall be entitled to the services available to the members of the registered society under the provisions of its by-laws and such services shall, on application made by him, be rendered to him by the board.
( 2) If any member of any registered society is refused any services or where the decision of the board on his application for services is not communicated to him within such time as may be prescribed he may apply to the Registrar for redress.
(3) An application to the Registrar under sub-section (2) shall be made within such time as may be prescribed.
(4) If the Registrar is satisfied that the refusal of any service is unreasonable, improper or discriminatory, he may, after giving the board an opportunity of making its representations,
(1) Any member of registered society who has acted adversely to the interests of the society may be expelled upon a resolution of the general body passed at a special meeting convened for the purpose by the votes of not less than two-thirds of the total number of the members present and voting at the meeting. The quorum for such special meeting shall-
(i) in the case of societies having membership not exceeding one thousand, not less than one-fourth of the total membership, or one hundred members, whichever is less;
(ii) in other cases two hundred members;
Provided that no such special meeting shall be called by the board except upon the requisition in writing by not less than one-fourth of the total number of members of the society or twenty-five members, whichever is less.
(1) (a) No member of a registered society shall have more than one vote in the affairs of the society.
(b) Every question which may come before a meeting of a registered society or of the board shall save as otherwise provided, be decided by a majority of the members present and voting at the meeting and in every case equality of votes the president shall have a casting vote.
(c) Save as otherwise provided under this Act and the rules, no member of a registered society shall be deprived of his rights to vote in the election of the members of the board of such society:
Provided that-
(i) In the case of an equality of votes at an election or in a meeting called under clause (a) of sub-section (4) of section 32 or item (ii) of claus
Any member of a registered society may, at any time during office, hours and no payment of such fee as may be prescribed, by himself or by an agent who is a member specially authorized by him in writing, inspect the accounts of the society in so far as they relate to his transactions with it.
No transfer by a member of any share held by him interest in the capital of a registered society or any part thereof shall be valid unless-
(a) the member has held such share or interest for not less than one year; and
(b) the transfer is made to a member of the registered society with the approval of the board.
Except in the case of death or expulsion or removal of the member or the permanent shifting of his residence outside the area of operation of the registered society, the share or interest in the capital of such member shall not be refunded unless-
(a) such member has held the share or interest for not less than two years; and
(b) such refund is in accordance with the by-laws of the registered society;
Provided that the Government may, by rules, specify the class or classes of cases in respect in respect of which refund may be made before the expiry of the period of two years.
(1) Subject to the provisions of section 42, on the death of a member of a registered society, the society shall transfer the share or interest of the deceased member in the capital to the person nominated in accordance with the rules, or if no person has been so nominated, to such person as may appear to the board to be the heir or legal representative of the deceased member:
Provided that such nominee, heir or legal representative, as the case may be, being eligible for admission, is admitted as a member of the society:
Provided further that nothing in this sub-section shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise the share or interest of a deceased member in the capital of the society.
(2) Notwithstanding anything contained in su
(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 registered 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, and
(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:
Provided that the liability of the Government or of a financing bank which have or has taken shares in a registered society shall cease on the date on which the Government or the financing bank cease or ceases to be a member.
(2) Where the Registrar has, by order in writing under sub-section (1) of section 137 directed a registered society t
(1) (a) Subject to the provisions of this Act, the rules and the by-laws, the ultimate authority of a registered society shall vest in the general body of its members:
Provided that nothing contained in this clause shall affect the exercise by the board or any officer of a registered society of any power conferred on such board or such officer by this Act or the rules or by the by-laws.
(b) Notwithstanding anything contained in clause (a) where the area of operations of a registered society is not less than such area as may be prescribed, or where the registered society consists of not less than such number of members as may be prescribed, the registered society may provide by an amendment of its by-laws for the constitution of smaller body consisting of such number of the members of the registered society as may be prescribed,
(1) (a) The management of every registered society shall vest in a board constituted in accordance with the provisions of this Act, the rules and the by-laws, which shall exercise such powers and perform such duties as may be conferred or imposed on its by this Act, the rules and the by-laws.
Substituted by T.N.Act 19 of 1992. [“Provided that among the members elected to the board of every society belonging to such class or category of registered societies as my be prescribed, there shall be thirty percent representation for women and eighteen percent representation for Scheduled Castes and Scheduled Tribes and if the representatives of women or Scheduled Castes and Scheduled Tribes are not elected to that extent, then the elected numbers of the board shall, at the first meeting of the board after the election. Co-opt to the board, from among the members of the registered soci
(1) No person shall be eligible for being elected or nominated as a member of a board of any registered society if he-
(a) is such near relation, as may be prescribed, of a paid employee of such registered society; or
(b) (i) is in default to such registered society or any other registered society, in respect of any loan or advance taken by him or dues under credit purchases made by him for a period exceeding three months: or
(ii) is a representative of a registered society which is in default to the financing bank or to any other registered society, in respect of any sum due by the registered society, for a continuous period of one year:
Provided that the disqualification in sub-clause (iii) shall operate only when default of th
(1) Every person shall, prior to his election or nomination as a member of the board of any registered society, give such registered society, intimation of, and shall, before taking charge of his office as such member of the board sell or divest himself of any interest (other than investment and borrowing) which he may have for his own benefit whether in his own name or otherwise, in any contract made with the registered society or in any sale or purchase made by the registered society privately or in any auction or in any contract or transaction of the registered society; and it shall not be lawful for a member of the board of any such registered society, so long as he holds office to acquire or purchase any such interest (other than investment and borrowing) and if he, under any will or by succession or by gift becomes entitled for his own benefit to such financial interest, he shall sell the same within three months, sever
(1)Where in the course of an audit under section 80 or an inquiry under section 81 or an inspection or investigation under section 82 or inspection of books under section 83 it appears that a person who is, or was, a member of a board has misappropriated or fraudulently retained any money or other property or been guilty of breach of trust in relation to the society or of any corrupt practice as defined in section 162 or of gross or persistent negligence in connection with the conduct and management of, or of gross mismanagement of the affairs of the society, the Registrar may, without prejudice to any other action that may be taken against such member by order in writing, disqualify him permanently from holding in future any office in any registered society. The Registrar shall, if such person holds office of member of the board, also by the same order remove him from that office.
Every registered society shall have an address registered in accordance with the rules, to which all notices and communications may be sent and send to the Registrar notice of every change thereof within thirty days of such changes.
Every registered society shall keep a copy of this Act and of the rules and of its by-laws and a register of its members open to inspection, free of charge, at all reasonable times at the registered address of the society.
The registration of a society shall render it a body corporate by the name under which it is registered, with perpetual succession and a common seal and with power to hold property, to enter into contracts, to institute and defend suits and other legal proceedings and to do things necessary for the purposes for which it is constituted.
(1) Notwithstanding anything contained in any law for the time being in force and subject to the prior claim, if any, of the Government in respect of land revenue, arrears of revenue other than land revenue, loans granted and advances made, any debt or outstanding demand due to a registered society from any member or past member or the estate of a deceased member shall be a first charge-
(i) upon the crops or other agricultural produce of such member whether or not raised with any loan taken from the registered society by such member;
(ii) upon any cattle, fodder for cattle, agricultural or industrial implements or machinery, or raw materials for manufacture, supplied or purchased in whole or in part out of the loan of money given by the registered society, or on any articles manufactured from raw materials so supplied, or purc
Notwithstanding anything contained in this Act or any other law for the time being in force.
(i) a member who makes an application for a loan to a registered society other than a land development bank of which the majority of the members are agriculturists, shall, if he owns land, or other immovable property, make a declaration in the form prescribed, if any that he thereby creates a charge upon such land or other immovable property or such portion thereof as may be specified in the declaration, in respect of the loan, which the society may make to the member on the application and future loans, if any, that may be made to him, from time to time, by the society together with interest on such loan or loans;
(ii) a declaration made under clause (i) may be varied or cancelled at any time by the members with the previous written pe
A registered society shall have a charge upon the share or interest in the capital and on the deposits of a member or past or deceased member and upon any dividend, bonus or profits payable to a member or a past member of 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 deceased member in or towards payment of any such debt.
No financing bank shall have a charge upon or be entitled to set off towards any debt due from a registered society-
(i) any sum invested by a registered society with it, out of the reserve fund; or
(ii) any sum invested with it by such society out of the provident fund established under section 78; or
(iii) any sum invested with it by such society out of its employees gratuity fund, if any established under section 79.
Subject to the provisions of section 42, the share or interest of a member in the capital of a registered society or the amount to the credit of a member in the thrift deposit held by the society or the amount to the credit of an employee of the society in the provident fund established under section 78, including contributions, if any, made to the fund by the society of any sum invested by the society from out of the provident fund accumulations or employees gratuity fund, if any, established, under section 79 shall not be liable to attachment or sale under any decree or order of a court in respect of any debt or liability incurred by such member or employee of the society, as the case may be, and neither the Official Assignee under the Presidency-Towns Insolvency Act, 1909 (Central Act III of 1909), nor a Receiver under the Provincial Insolvency Act, 1920 (Central Act V of 1920), shall be entitled to or have any claim on such share, interest, amount of sum.
The reserve fund or the bad debt reserve of a registered society invested by such society in accordance with the provisions of section 68 shall not be liable to attachment under any decree or order of a court in respect of any debt or liability incurred by the society.
Any register or list of members or shares kept by any registered society shall be prima facie evidence of any of the following particulars entered therein, namely:-
(a) the date on which the name of any person was entered in such register or list as a member: and
(b) the date on which any such person ceased to be a member.
(1) A copy of any entry in a book of a registered society regularly kept in the course of business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceeding 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 or liquidator of a registered society and no officer in whose office the books of a registered society are deposited after liquidation shall, in any legal proceeding to which the society or the liquidation is not a party, be compelled to produce any of the society’s books the contents of which can be proved under sub-section (1), or to appear as witness to prove the matters, transactions and accounts therein recorded, unless by order of the count or the arbitrator made for
(1) A member of a registered society may execute an agreement in favour of that society providing that-
(a) his employer or the officer disbursing his salary or wages shall be competent, on a requisition in writing from the society to deduct every month from the salary or wages payable to him such amount as may be specified in the requisition towards the amount; and
(b) If he ceases to be an employee, his employer shall be competent on a requisition in writing from the society to deduct from the gratuity payable to such employee such amount as may be specified in the requisition towards the entire balance, due by him to the society in respect of any debt or other demand owing by the member to the society.
(2) (a) Where any such agreement as is referred to in sub-section (1) has
Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Registration Act, 1908 (Central Act XVI of 1908), shall apply to-
(1) any instrument relating to shares in a registered society, notwithstanding that the assets of such 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) any endorsement upon, or transfer of, a
(1) Without prejudice to any other mode of recovery which is being taken or may be taken under this Act or any other law for the time being in force, any moneys due to registered society may be recovered as if it were an arrear of land revenue, and for the purposes of such recovery the Registrar shall have the powers of a Collector under the Tamil Nadu Revenue Recovery Act. 1864 (Tamil Nadu Act II of 1864).
(2) Where any moneys due to any registered society is recoverable from any person and the immovable property of such person is brought to sale under the provisions of the Tamil Nadu Revenue Recovery Act. 1864 (Tamil Nadu Act II of 1864) and the registered society is the purchaser at such sale, the provisions of section 36 of the said Act shall apply to such sale as if the third and fourth clauses of the said section 36 were omitted.
The Government, by notification, may in case of any registered society or class of registered societies, remit.-
(a) the stamp duty not being the stamp duty referred to in clause (a) of sub-section (2) of section 9 of the Indian Stamp Act. 1899 (Central Act II of 1899), with which, under any law for the time being in force, instruments executed by or on behalf of or in favour of a registered society or by an officer or member and relating to the business of such society or any class of such instruments or decisions, awards or orders of the Registrar or arbitrators under this Act are respectively chargeable: and
(b) any fee payable under the law of registration for the time being in force.
(1) The Government may subscribe directly to the share capital of a registered society.
(2) Notwithstanding any agreement to the contrary, the Government shall not be entitled to any dividend on the shares taken by them with any such registered society at a rate higher than that at which such dividend is payable in respect of any other share in that society.
The Government may, subject to appropriation by law, provide moneys to a registered society (hereafter in this chapter referred to as the apex society) for the purchase of shares in other registered societies.
(1) An apex society which is provided with money by the Government under section 53 shall, with such moneys, establish a fund to be called the “Principal State Partnership Fund”.
(2) An apex society shall utilize the Principal State Partnership Fund for the purpose of-
(a) directly purchasing shares in other registered societies.
(b) providing moneys to a registered society (hereafter in this chapter referred to as the central society) to enable that society to purchase shares in other registered society (hereafter in this chapter referred to as the primary societies)
(c) making payments to the Government in accordance with the provisions of this chapter; and for no other purpose.
(1)A central society which is provided with moneys by an apex society from the Principal State Partnership Fund shall, with such moneys, establish a fund to be called the “Subsidiary State Partnership Fund”.
(2) A central society shall utilize the Subsidiary State Partnership Fund for the purpose of-
(a) purchasing shares in primary societies:
(b) making payments to the apex society in accordance with the provisions of this chapter; and for no other purpose.
No shares shall be purchased in a registered society from the moneys in the Principal State partnership Fund or the Subsidiary State Partnership Fund except with the previous approval in writing of the Government.
Whereas shares are purchased in a registered society by-
(a) the Government; or
(b) an apex society or a central society from the Principal State Partnership fund or the Subsidiary State Partnership Fund, as the case may be, the liability in respect of such shares shall, in the event of the registered society being wound up, be limited to the amount paid in respects of such shares.
An apex society which has purchase shares in other registered societies from the moneys in the Principal State Partnership Fund and a central society which has purchased shares in primary societies from the moneys in the Subsidiary State Partnership Fund shall be entitled only to such dividend on the said shares as is declared by the society concerned and is payable to other share holders of that society.
(1) If a registered society in which shares are purchased from the Principal State Partnership Fund in wound up or is dissolved, the Government shall be not have any claim against the apex society which purchased the shares in respect of any loss arising from such purchase.
Provided that the apex society shall remit to the Government any money received from the liquidator of the dissolved society in payment of the share capital invested in the society from the said Partnership Fund and any dividend paid on such share capital.
(2) If a registered society in which shares are purchased from the Subsidiary State Partnership Fund is wound up or is dissolved, neither the Government nor the apex society shall have any claim against the central society which purchased the shares in respect of any loss arising from such purchase;
(1) All moneys received by an apex society in respect of shares of other registered societies purchased from the money in the Principal State Partnership Fund on redemption of such shares or by way of dividends or otherwise shall be credited to that Fund.
(2) All moneys received by a central society in respect of shares of primary societies purchased from the moneys in the subsidiary State Partnership Fund on redemption of such shares or by way of dividends or otherwise, shall, in the first instance, be credited to that Fund and then transferred to the apex society which shall credit them to the Principal State Partnership Fund.
(3) All moneys and dividends referred to in sub-section (1) and sub-section (2) shall, notwithstanding that the shares stand in the name of the apex society or the central society, as the case may be, b
(1) If an apex society which has established a Principal State Partnership Fund in wound up or is dissolved, all moneys to the credit of, or payable to, that Fund shall be paid to the Government.
(2) If a central society which has established a subsidiary State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or a payable to, that Fund shall be paid and credited to the Principal State Partnership Fund from which it received moneys under clause (b) of sub-section (2) of section 54.
Any amount in a Principal State Partnership Fund or a Subsidiary State Partnership Fund shall not form part of the assets of the apex society or the central society, as the case may be.
Subject to the foregoing provisions of this chapter-
(a) the Government may enter into an agreement with an apex society setting out the terms and conditions which they shall provide moneys to the apex society for the purpose specified in sub-section (2) of section 54;
(b) an apex society may, with the previous approval of the Government, enter into an agreement with a central society, setting out the terms and conditions on which it shall provide moneys to that society from the Principal State Partnership Fund for the purpose specified in clause (b) of sub-section (2) of section 54.
Notwithstanding anything contained in this Act or any other law for the time being in force, the Government may subject to such conditions as they may, by general or special order, specify in this behalf-
(a) grant loans or make advances to any registered society;
(b) guarantee the repayment of principal and payment of interest on debentures issued by a registered society;
(c) guarantee the repayment of share capital of registered society and dividends thereon at such rates as may be specified by the Government;
(d) guarantee the payment of principal and payment of interest on loans and advances to a registered society;
(e) guarantee the repayment of deposits received by a regist
The provisions of section 53 to 63 shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
(1) A registered 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 registered society may make loans to another registered society:
Provided further that a registered society may make such loan as may be specified in the by-laws to any paid employees:
(2) Notwithstanding anything contained in sub-section (1)-
(a) a registered society may make a loan to a depositor on the security of his deposit:
(b) a financing bank may provide overdraft to, or discount bills and cheques of, depositors subject to such limits and conditions as may be prescribed; and
A registered society shall receive deposits and loans only to such extent and subject to such conditions as may be prescribed or specified in the by-laws.
Subject to the provisions of sub-section (3) of section 66, a registered society may invest or deposit its funds in-
(a) the shares or deposits of the financing bank, or
(b) the shares of deposits of any co-operative bank, or
(c) the shares or securities of any other registered society, or
(d) any of the securities specified in section 20 of the Indian Trusts Act, 1882 (Central Act II of 1882), or
(e) any other mode as may be prescribed;
Provided that no such investment shall be made in any manner as aforesaid, other than in the shares of deposits of the financing bank, except with the general or special sanction of the Registrar a
No part of the funds of a registered society, except net profits as declared by the Registrar for the purposes of this Act, shall be divided by way of bonus or dividend or otherwise among its members;
Provided that payment may be made to a member for work done by him as clerk in such class or category of societies and on such scale as may be prescribed:
Provided further that payment of rebate on patronage may be made to members with the prior sanction of the Registrar:
Provided also that in the case of any registered society with accumulated losses but working on current profit, payment of honorarium may be made to the members of the board including the president and the vice-prescribed, but the aggregate of the honorarium so paid shall not exceed five per cent of the current pr
No registered society shall incur any expenditure out of its funds for any purpose not directly connected with the management or business of that society or on advertisement except in accordance with the rules made in this behalf.
No property of a registered society, whether movable or immovable, shall be used or allowed to be used except in accordance with the provisions of this Act, the rules and the by-laws.
(1) (a) A registered society shall, out of its net profits as declared by the Registrar for the purposes of this Act in respect of any co-operative year, contribute-
(i) three per cent of the net profits to the co-operative research and development fund: and
(ii) two per cent of the net profits to the co-operative education fund.
Within such time and in such manner as may be prescribed.
(b) The co-operative research and development fund and the co-operative education fund shall be maintained by the Tamil Nadu Co-operative Union Limited and administered by committees constituted in accordance with the rules. Such committees shall consist of nominees of the Government (who shall be specialists or technical experts in agricultural or ani
Subject to the provisions of sections 74,75,76 and 77 and subject to the rules made in this behalf. a registered society may appoint such paid officers and servants as are necessary for the efficient performance of its functions:
Provided that the qualifications for the appointment of paid officers and servants, the conditions of service including disciplinary control and the cadre strength of such officers and servants of a registered society or class or category of registered societies shall be such as may be prescribed.
Explanation I.- For the purposes of this chapter “ paid officers “ does not include the president,vice-president and the members of the board.
Explanation II.- For the purposes of this chapter and other provisions of this Act, “competent authority” authority constituted under sub-section (3) of sectio
(1) The Government may, by notification constitute Recruitment Bureaus at the State and district levels for the recruitment of such categories of paid officers and servants for employment by such class or classes or category or categories of registered societies as may be prescribed. Nothing contained in this section shall apply to any of the posts in respect of which common cadre of service has been constituted under section 75.
(2) The manner of constitution of the Recruitment Bureaus and the procedure to be followed by such Bureaus be such as may be prescribed.
(1) Notwithstanding anything contained in this Act or the bylaws made there under and subject to the rules made by the Government in this behalf, the Government may, in the interest of the co-operative movement, constitute from time to time, by order in respect of-
(i) scheduled co-operative societies: or
(ii) Primary societies affiliated to such scheduled co-operative societies, or
(iii) co-operative sugar mills, co-operative spinning mills, co-operative tea factories and such other registered societies prescribed for the purpose of sub-section (4) of section 33; or
(iv) such other class or category of registered societies in which the Government have taken shares or given financial or other assistance as may be notified by the
(1) Where-
(a) in the course of an audit under section 80 or an inquiry under section 81 or an inspection or investigation under section 82, or inspection of books under section 83, it is brought to the notice of the Registrar that a paid officer or servant of a registered society whether or not be is borne on a common cadre of service has committed or has been otherwise responsible for misappropriation, breach of trust or other offences in relation to any registered society and if, in the opinion of the Registrar, the is a prima facie evidence against such paid officer or servant and the suspension of such paid officer or servant is necessary in the interests of any such society, or
(b) a complaint against any paid officer or servant of any registered society whether or not he is borne on a common cadre of service of any alleg
(1) Where a paid officer or servant of a registered society has been found guilty or convicted by a competent court for and offence involving moral turpitude, the Registrar may, if in his opinion that the removal of such paid officer or servant is necessary in the public interest or in the interests of such society, after giving such officers or servant, and if such officer or servant is borne on a common cadre of service, the competent authority constituted under sub-section (3) of section 75 and in other cases, such registered society, an opportunity of making his or its representation, direct the competent authority or such registered society, as the case may be, to remove or cause to be removed such officer or servant from the service of such society.
(2) On receipt of a direction from the Registrar under sub-section (1), the competent authority or the registered society,
(1) A registered society not being an establishment to which the Employees’ Provident Funds and Miscellaneous Provision Act, 1952 (Central Act XIX of 1952) applies, may establish a provident fund for the benefit of its employees to which shall be credited all contributions made by the employees and the society in accordance with the by-laws.
(2) A provident fund established by a registered society under sub-section (1) shall be invested in the financing bank, but shall not –
(a) be used in the business of the society:
(b) form part of the assets of the society:
(c) be liable to attachment or be subject to any other process of any court of other authority.
(1) A registered society not being an establishment to which the Payment of Gratuity Act. 1972 (Central Act 39 of 1972) applies, may provide by its by-laws for payment of gratuity to the employees at such rates and on such conditions as may be specified in the by-laws and such society may establish a gratuity fund or make other arrangements for the purpose.
(2) A gratuity fund, if any, established by a registered society under sub-section (1) shall be invested in the financing bank, but shall not-
(a) be used in the business of the society:
(b) form part of the assets of the society:
(c) be liable to attachment or be subject to any other proves of any court or other authority.
(1) (a) The Registrar shall audit or cause to be audited by a person authorized by him by general or special order in writing in this behalf, the accounts of every registered society once at least in every co-operate year. The Registrar shall communicate the result of the audit to the registered society concerned.
(b) where such audit is caused to be made once in every co-operative year-
(i) the registered society shall prepare the financial statements and other details required for the completion of audit within three months from the close of its co-operative year or such further period or periods as the Registrar may permit provided that such extended period or periods shall not exceed six months in the aggregate, and
(ii) the audit shall be completed within a period of six mo
(1) The Registrar may, of his own motion and shall, on the application of a majority of the board or of not less than one-third of the members or one the request of the financing bank or of the District Collector, hold an inquiry, or direct some person authorized by him by order in writing in this behalf to hold an inquiry into the constitution, working and financing condition of a registered society or any alleged misappropriation, fraudulent retention of any money or property, breach of trust, corrupt practice, or mismanagement in relation to that society or into any particular aspect of the working of that society.
(2) The Registrar or the person authorized by him under sub-section (1) shall have the following powers, namely:-
(a) He shall at all reasonable times have free access to the books, accounts, documents, security,
(1) The Registrar may, of his own motion, or on the application of a creditor of a registered society inspect or investigate or direct any person authorized by him in this behalf by general or special order in writing to inspect the affairs of the registered society in general or to investigate into any alleged misappropriation, fraudulent retention of any money or property, breach of trust, corrupt practice or mismanagement in relation to that society or into any particular aspect of the working of that society and the Registrar or the person so authorized shall have all the powers of the Registrar when holding an inquiry under section 81:
Provided that no such inspection or investigation shall be made or directed on the application of a creditor unless the creditor-
(a) satisfies the Registrar that the debt is a sum them due
(1) A financing bank may at any time, but shall lat least once in every year, inspect through an officer or a member of its paid staff the books of every registered society which is indebted to it. A financing bank shall also have the right to inspect the books of any other registered society financed by the registered society which is indebted to the financing bank.
(2) An officer or member of the paid staff of the financing bank inspecting the books of a registered society shall at all reasonable times have free access to the books, accounts, documents, securities, cash and other properties belonging to, or in the custody of that society and may also call for such information, statements and returns as may be necessary to ascertain the financial condition of that society.
(3) For the purposes of making inspection under sub-section (2), the officer or member of the pa
The chief executive that is, the principal paid officer of every registered society by whatsoever designation he is called, or the president of that society, if there is no such chief executive in that society, shall be bound to keep and maintain such accounts and books relating to that society in such manner as may be prescribed. He shall be responsible for the correct and upto date maintenance of such accounts and books and for producing them when called for in connection with the audit under section 80 or inquiry under section 81 or inspection or investigation under section 82 or inspection of books under section 83.
(1) Where an inquiry is held under section 81 or an inspection or investigation is made under section 82 the Registrar may, after giving the parties an opportunity of making their representations, order the recovery of the entire cost or such part of the cost as he may think just from the society or the members or the creditors demanding the inquiry or inspection or investigation or from the officers or former officers of the society in such proportion as may be determined by the Registrar from all or any of them. Costs may also be awarded by the Registrar to the financing bank in the cast of inspection of books under section 83, by the financing bank.
(2) Any sum awarded by way of costs or ordered to be recovered under sub-section (1) may be recovered as if it were an arrear of land revenue and for the purposes of such recovery the Registrar shall have the powers of Collector under the Tamil Nadu Revenue Recovery Act
Every registered society shall pay to the Government such sum as may be determined in the prescribed manner in respect of any special or additional staff employed by the Government for the purpose of the society.
(1) Where in the course of an audit under section 80 or an inquiry under section 81 or an inspection or investigation under section 82 or inspection of books under section 83 or the winding-up of a society, it appears that any person who is or was entrusted with the organization or management of the society or any past or present officer or servant of the society has misappropriated or fraudulently retained any money or other property or been guilty of breach of trust in relation to the society or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has made any payment which is not in accordance with this Act, the rules or the by-laws the Registrar himself or any person specially authorized by him in this behalf, of his own motion or on the application of the board, liquidator or any creditor or contributory may frame charges against such person or officer or servant and after giv
Section 87 of the Tamil Nadu Co-operative Societies Act, 1983, provides a statutory framework for the imposition of surcharge on persons responsible for financial irregularities, misappropriation, breach of trust, or wilful negligence within co-operative societies. It is a key provision empowering the Registrar or authorized officers to recover amounts caused due to such misconduct, functioning as a remedial and compensatory measure to safeguard the assets of co-operative societies.
Section 87 authorizes the Registrar or any authorized officer to frame charges against persons who, during audits, inquiries, inspections, investigations, or winding-up proceedings, are found to have misappropriated funds, committed breach of trust, caused deficiencies, or engaged in wrongful payments. The section stipulates that such proceedings must be initiated within seven years from the date of the act or omission, and provides for recovery of amounts as if they were arrears of land revenue. It also empowers the Registrar to order repayment, contribute to assets, and recover amounts through the Revenue Recovery Act.
Section 87 applies broadly to acts of financial irregularity, misappropriation, breach of trust, or wilful negligence committed during official management of a society. It covers:- Officers and persons entrusted with management.- Past and present officers or servants.- Persons involved during audits, inquiries, inspections, or investigations.It does not extend to criminal prosecution per se but provides a mechanism for recovery and rectification. The section also interacts with other provisions like Sections 80-84, which specify procedures for inquiries and audits.
Section 87 does not prescribe a penal punishment but provides for recovery of amounts and contributions to society’s assets. The orders passed under this section are enforceable as land revenue arrears. In cases involving misconduct, criminal proceedings may be separately initiated under the Indian Penal Code or other laws, but Section 87 itself is remedial and compensatory.
Scope and Purpose - Section 87 empowers the Registrar to recover amounts due to misappropriation or breach of trust, functioning as a remedial measure to protect society assets, not as a penal provision. [Section 87 of Tamil Nadu Co-operative Societies Act, 1983]
Time Limit - Proceedings under Section 87 must be initiated within seven years from the date of the act or omission, emphasizing the importance of timely action to prevent stale claims. [U.Natesan vs K.K. Ilakkiyampatti Primary]
Initiation of Proceedings - Proceedings are based on findings from audits, inquiries, inspections, investigations, or winding-up processes, which must precede surcharge orders. [Section 87(1)]
Procedure and Fairness - The section mandates that the person concerned be given a reasonable opportunity to answer charges before passing surcharge orders, aligning with principles of natural justice. [Section 87(1); Section 81]
Requirement of Specific Allegations - Initiation of surcharge proceedings requires specific allegations of misappropriation, breach of trust, or wilful negligence; mere irregularities or negligence without intentional misconduct are insufficient. [Section 87(1); Surcharge Proceedings Cases]
Recovery as Land Revenue - Amounts ordered to be paid under Section 87 can be recovered as if they were land revenue arrears, ensuring effective enforcement. [Section 87(2)]
Nature of Proceedings - The proceedings are compensatory, aimed at recovery rather than punishment; they do not automatically entail criminal liability unless separately prosecuted under criminal law. [Necessity of Wilful Negligence]
Interaction with Other Laws - Section 87 proceedings are independent of criminal proceedings but can run concurrently; criminal liability must be established separately if applicable. [Section 87]
Legal Validity - Orders passed without following procedural requirements, such as failing to furnish the enquiry report or initiating proceedings beyond the time limit, are liable to be quashed. [S. R. Srinivasan vs State]
Natural Justice - The principles of fair hearing and opportunity to defend are integral; denial of such rights renders surcharge orders liable to challenge. [Natural Justice Principles]
Legal Challenges - Orders under Section 87 can be challenged before the Cooperative Tribunal or courts on grounds of procedural irregularity, violation of principles of natural justice, or exceeding jurisdiction. [Section 152; Writ Petitions]
Prohibition of Post-Retirement Proceedings - Disciplinary or surcharge proceedings cannot be continued against retired employees unless specific service rules permit or the misconduct is ongoing. [Section 87; Order 34 of CPC*]
Criminal Proceedings and Section 87 - While Section 87 provides for recovery, criminal liability for offences like misappropriation or breach of trust must be established separately under IPC or other statutes. [R. V. S. R. V. Ramaswamy]
Proportionality and Discretion - Orders must be proportionate; excessive recovery or arbitrary action can be challenged as violative of principles of natural justice and fairness. [Legal Principles]
Legal Precedents - Courts have consistently held that procedural lapses, such as non-furnishing of enquiry reports or delay beyond prescribed periods, vitiate surcharge proceedings. [K. K. Natesan vs State]
Amendments and Judicial Review - Amendments to Section 87, such as extending time limits or modifying procedures, are subject to judicial scrutiny for constitutionality and adherence to natural justice. [Section 87(1) Amendment]
Implication of Non-Compliance - Orders passed without compliance with statutory procedures are liable to be set aside, emphasizing the need for strict adherence to legal mandates. [Order 81, Section 87]
Legal Position on Disciplinary Proceedings Post-Retirement - Such proceedings are generally not sustainable against retired employees unless explicitly provided for in service rules or bye-laws, reaffirming the principle that surcharge is not penal but remedial. [Order 21 of 2011]
In conclusion, Section 87 of the Tamil Nadu Co-operative Societies Act, 1983, functions as a vital statutory provision for safeguarding society assets by enabling recovery of amounts due to misconduct, with procedural safeguards rooted in principles of natural justice. Its proper application requires strict adherence to time limits, specific allegations, and procedural fairness, with orders subject to judicial review to prevent arbitrary exercise of powers.
(1) (a) The Registrar,-
(i) may, if he is of opinion that the board of any registered society is not functioning properly or willfully disobeys or willfully fails to comply with any order or direction issued by the Registrar under this Act or the rules;
(ii) shall, where for two consecutive co-operative years-
(A) in the case of a financing bank, more than sixty per cent of the total dues of the financing bank from its members remain unpaid or the number of defaulting member of such financing bank exceeds sixty per cent of the total number of members indebted to such bank, and
(B) in the case of other registered societies, more than seventy per cent of the total dues to the registered society from its members remain unpaid of the
(1) Where-
(i) the term of office of the board of any registered society has expired and a new board cannot be constituted in accordance with the provisions of this Act, the rules and the by-laws: or
(ii) the new board constituted fails to enter, or is prevented from entering upon office on the expiration of the term of office of the earlier board: or
(iii) the existing board has tendered resignation en-bloc; or
(iv) (a) vacancies have arisen for any reason , or
(b) one or more members of the board have tendered resignation and the number of remaining members cannot form the quorum for the meeting of the board.
The Registrar may, of his o
(1) If any dispute touching the constitution of the board or the management or the business of a registered society (other than a dispute regarding disciplinary action taken by the competent authority constituted under sub-section (3) of section 75 or the Registrar or the society or its board against a paid servant 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 dec1eased member and the society, its board or any officer, agent or servant of the society, or
(c) between the society or its board and any past board, any officer, agent or servant, or any past officer, past, agent or past servant, or the nominee, heir
Notwithstanding anything contained in this Act, in the case of an insured co-operative bank-
(i) an order for the winding up or division or amalgamation or transfer of assets and liabilities of the bank or an order sanctioning a scheme of compromise or arrangement or reconstruction (including division or re- organization ) of the bank may be made only with the previous sanction in writing of the Reserve Bank of India;
(ii) an order for the winding- up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in section 13-D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (Central Act 47 of 1961);
(iii) if so required by the Reserve Bank of India in the public interest or for preventing the affairs
This chapter shall apply only to joint farming societies.
In this chapter, unless the context otherwise requires,-
(1) “competent authority” means any person or authority authorized by the Government, by notification, to perform the functions of the competent authority under this chapter for such area as may be specified in the notification;
(2) “joint farming society” means a registered society, which has its object the cultivation on a joint basis of the lands of the members pooled for the purpose and such other land owned or possessed by such registered society, where substantially the members or the members of their families engage themselves in such cultivation and are remunerated for the services rendered by them to the society;
(3) “person interested” in relation to land, includes all persons claiming, or entitled to claim, an i
Notwithstanding anything contained in section 21 every application for membership of a joint farming society shall be considered by the board which may grant or refuse admission.
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, a member of a joint farming society whose lands have been pooled in the manner set out in clause (2) of section 93 , shall, if so required by such society make a declaration in the form prescribed that he thereby creates a charge upon those lands in respect of any loan taken by the joint farming society in connection with, or to facilitate the operations, of such society and the charge so created shall be deemed to have been transferred to the person from whom the joint farming society has taken the loan.
(2) No declaration made under sub-section (1) shall be varied or cancelled by a member without the previous written permission of the joint farming society; and the joint farming society shall not give such permission without the approval of the person to whom the charge stands
A joint farming society may require any of its members to pool his lands for the purposes of cultivation by the joint farming society on a joint basis and for that purpose to place those lands at the disposal of the joint farming society for such period not being less than five years as may be agreed upon by the joint farming society and such member.
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, every member of a joint farming society whose lands have been pooled in the manner set out in clause (2) of section 93, shall , in addition to the declaration made under sub-section (1) of section 95, execute an agreement with the joint farming society specifying the period for which the lands shall vest in the joint farming society, the basis on which the share of his income shall be determined and such other matters as may be prescribed.
(2) The agreement executed under sub-section (1) shall be sent by registered post by the joint farming society, to the Sub-Registrar having jurisdiction over the area in which the lands are situated.
(3) On receipt of the agreement, the Sub Registrar shall, notwithstanding anything contained i
Notwithstanding anything contained in this Act or in any other law for the time being in force, no member of a joint farming society whose lands have been pooled in the manner set out in clause (2) of section 93, shall, before the expiry of the period specified in the agreement executed by him under sub-section (1) of section 97, be entitled or allowed to withdraw the lands so pooled by him from the possession or control of the joint farming society.
(1) Thejoint farming society may after the expiry of the period specified in the agreement executed by the member under sub-section (1) of section 97, purchase the lands pooled in the manner set out in clause (2) of section 93 by such member or exchange those lands for other lands of equal value belonging to the joint farming society.
(2) (a) Notwithstanding anything contained in sub-section (1), the Government may, if any are of opinion that it is necessary to acquire the lands specified in sub-section (1), at any time acquire those lands by publishing in the Tamil Nadu Government Gazette, a notice to the effect that the Government have decided to acquire the lands in pursuance of this sub-section:
Provided that before publishing such notice, the Government shall call upon the owner, of or any other person who in the opinion o
(1) Where any land is acquired under sub-section (2) of section 99, there shall be paid compensation the amount of which shall be determined in the manner and accordance with the principles hereinafter set out, that is to say-
(a) where the amount of compensation can be fixed by agreement, it shall be paid in accordance with such agreement.
(b) where no such agreement can be reached, the Government shall appoint as arbitrator, a judicial officer not below the rank of Subordinate Judge;
(c) the government may in any particular case, nominate a person having expert knowledge as to the nature of the land acquired to assist the arbitrator and where such nomination is made, the person to be compensated may also nominate an assessor for the same purpose;
&nb
The amount of compensation payable under an award shall, subject to the rules, be paid by the competent authority to the person or persons, entitled thereto in such manner and within such time as may be specified in the award.
Notwithstanding anything contained in the Land Acquisition Act, 1894 (Central Act I of 1894), no land shall be acquired under the Act for the purpose of a joint farming society of the extent of the land to be so acquired exceeds ten per cent of the total extent of the lands pooled by the members.
Provided that no land shall be acquired as aforesaid unless the purpose of a joint farming society for which it is so acquired is a purpose specified in the rules made in this behalf.
This chapter shall apply only to lift irrigation societies.
In this chapter, unless the context otherwise requires,-
(1) “lift irrigation society” means a society the principal object of which is to supply water by lift irrigation mainly for agricultural purposes;
(2) “small farmers lift irrigation society” means a lift irrigation society of which no member owns more than such extent of land as may be prescribed.
(1) (a) Notwithstanding anything contained in this Act or in any other law for the time being in force, every person making an application for admission as a member of a lift irrigation society shall specify in such application the particulars of the land for which he desires supply of water by the lift irrigation society and, if the by-laws of such society so require, also make a declaration in the form prescribed authorizing the lift irrigation society to mortgage the lands specified in the application as, security for any loan to be taken by the lift irrigation society in connection with, or to facilitate, the operations of such society.
(b) Where a declaration referred to in clause (a) is made by any person and such person is admitted as a member of the lift irrigation society, such society shall be entitled to mortgage the lands specified in the declaration or any portion
(1) Notwithstanding anything contained in this Act, or in any other law for the time being in force, every person on being admitted as a member of a lift irrigation society, shall, in addition to the declaration, if any, made under sub-section (1) of section 105, execute an agreement with the lift irrigation society specifying-
(i) that he shall continue as a member of such society as long as he continues to own the land for which water is supplied by the irrigation society or any portion thereof;
(ii) that he agrees to pay his share of the capital expenditure and the maintenance charges for providing supply of water (including over-head charges and depreciation) as may be determined by the board from time to time, with the approval of the Registrar; and
(iii) such other matters
Notwithstanding anything contained in this Act or in any other law for the time being in force, no member of a life irrigation society shall, so long as he continues to own the land for which water is supplied by the lift irrigation society or any portion thereof, be entitled to withdraw his membership.
Provided that the lift irrigation society may, subject to such conditions as may be prescribed, permit any member to withdraw.
The board of a lift irrigation society shall have the right to regulate the supply of water from the works of the society in accordance with such regulations as may be made by the board in this behalf with the approval of the Registrar.
Where a member of a lift irrigation society,-
(i) sells or otherwise transfers any land for which water is supplied by the lift irrigation society or any portion thereof; or
(ii) dies;
The transferee, or the heir or the legal representative, as the case may be, shall, if he is qualified for membership of such society on application made is the form, if any, prescribed for the purpose, be admitted by the board as a member of the lift irrigation society:
Provided that any member admitted under this section may with the approval of the Registrar be removed from membership by the board; and any application for obtaining such approval shall be made within two months from the date of admission of such member.
Without prejudice to the provisions of Chapter VI, a small farmers’ lift irrigation society shall be entitled to such special concessions and facilities as may be prescribed.
This Chapter shall apply only on land development banks.
In this Chapter, unless the context otherwise requires,-
(1) primary land development bank’ means a co-operative primary land development bank registered or deemed to be registered under this Act;
(2) State Land Development Bank’ means the “Tamil Nadu Co-operative State Land Development Bank Limited”.
(3) Trustee’ means the Trustee referred to in section 115.
(1) There shall be a State Land Development Bank for the State of Tamil Nadu and as many primary land development banks as may be deemed necessary.
(2) Every primary land development bank shall, with effect on and from the date of the commencement of this Act or with effect on and from the date of its registration, whichever is later, be deemed to be a member of the State Land Development Bank.
(3) The board of the State Land Development Bank shall have a general power of supervision over the primary land development banks.
A primary land development bank or the State Land Development Bank may grant loans for all or any of the following purposes, namely:-
(a) development of agricultural including making land fit for cultivation, improvement of land, development of sources of irrigation;
(b) (i) Animal husbandry,
(ii) Pisciculture including fish catching,
(iii) Apiculture,
(iv) Sericulture,
And all activities incidental or ancillary thereto;
(c) construction of permanent farm houses with storage facilities, cattle sheds, pump sheds, tractor sheds and shed for processing of agricultural produce;
&n
The Registrar or such other person appointed by the Government in this behalf, shall be the Trustee for the purpose of securing the fulfillment of the obligations of the State Land Development Bank to the holders of debentures issued under section 116 by the board of that bank. The mortgages and other assets transferred or deemed under to provisions of section 121 to have been transferred by the primary land development bank to the State Land Development Bank shall vest in the Trustee from the date of such transfer. The holders of the debentures issued under sub-section (1) of section 116 shall have a floating charge on all such mortgages and assets, on the amount paid under such mortgages and remaining in the hands of the board of the State Land Development Bank or of the Trustee and on the other properties of the State Land Development Bank. The powers and functions of the Trustee shall be governed by the provisions of this Chapter and the instrument of trust execu
(1) (a) With the previous sanction of the Trustee, the board of the State Land Development Bank may issue debentures of one or more denominations for such periods as it may deem expedient on the security of the mortgages and other assets transferred or deemed under the provisions of section 121 to have been transferred by the primary land development banks to the State Land Development Bank and of the other properties of the State Land Development Bank.
(b) Such debentures may contain a term fixing a period not exceeding ten years from the date of issue during which they shall be irredeemable, or reserving to the board of the State Land Development Bank the right to call in at any time any of the debentures in advance of the date fixed for redemption, after giving to the debenture-holder concerned, not less than three months’ notice in writing.
The Government may, after consulting the board of the State Land Development Bank and the Trustee-
(a) by notification; and
(b) by notice for not lee than fourteen days in such of the principal newspapers in the State of Tamil Nadu and of other States as the Government may select in this behalf,
Discontinue any guarantee given by them in respect of the debentures issued under section 116 or restrict the maximum amount thereof or modify, the conditions subject to which it is given, with effect from a specified date, not being earlier than six months from the date of publication of the notification.
In cases where the maximum amount of the guarantee is to be restricted or the conditions subject to which the guarantee is given are to be
If any installment payable under a mortgage executed in favour of a primary land development bank of any part of such installment remains unpaid for more than one month from the date on which it fell due, the board of the primary land development bank may, in addition to any other remedy available to the primary land development bank, apply to Registrar for the recovery of such installment or part thereof by distraint and sale of the produce of the mortgaged land including the standing crops thereon. On receipt of such application, the Registrar or any person authorized by the Registrar in this behalf may, notwithstanding anything contained in the Transfer of Property Act, 1882 (Central Act IV of 1882) take action to distrain and sell such produce in the manner prescribed.
Notwithstanding anything contained in the Transfer of Property Act, 1882 (Central Act IV of 1882), where a power of sale without the intervention of the court is expressly conferred on the primary land development bank by the mortgage deed or any other document, the board of the primary land development bank shall in case of default in utilization of land or part thereof or in case of default of payment of the mortgage money or any part thereof, have power in addition to any other remedy available to the to bring the mortgaged property to sale, without the intervention of the court in the manner prescribed.
(1) Without prejudice to any other mode of recovery which is being taken or may be taken under this Act or any other law for the time being if force, any moneys due to a primary land development bank or the State Land Development Bank may be recovered as if it were an arrear of land revenue and for the purposes of such recovery the registrar or any officer of the State Land Development Bank or primary land development bank authorized by the registrar in this behalf shall have the powers of a Collector under the Tamil Nadu Revenue Recovery Act, 1864 (Tamil Nadu Act II of 1864).
(2) Where any moneys due to any primary land development bank or the State Land Development Bank is recoverable from any debtor and the immovable property of such debtor is brought to sale under the provisions of the Tamil Nadu Revenue Recovery Act, 1864 (Tamil Nadu Act II of 1864) and the primary land d
The mortgages executed in favour of, and all other assets transferred to, a primary land development bank, by the members thereof shall, with effect on and from the date of such execution or transfer, be deemed to have been transferred by such primary land development bank to, and shall vest in, the State Land Development Bank.
Where any property mortgaged to a primary land development bank is wholly or partially destroyed or the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the board or the primary land development bank, to provide further security enough to render the whole security sufficient or to repay such portion of the loan as may be determined by the board of the primary land development bank has failed to provide such security or to repay such portion of the loan, the whole of the loan shall be deemed to fall due at once and the board of the primary land development bank shall be entitled to take action against the mortgagor for the recovery thereof under this Act.
Explanation._ A Security is sufficient within the meaning of this section; unless the value of the mortgaged property exceeds the amount for the time being due to the primary land development bank by such proportion as
(1) The board of the State Land Development Bank or the Trustee may direct the board of a primary land development bank to take action for the recovery of moneys due to that primary land development bank against any person who has defaulted in the payment of his dues to, or has failed to provide adequate security under section 122 to, that bank and, if the board of the primary land development bank neglects or fails to do so, the board of the State Land Development Bank itself or the trustee himself may take such action.
(2) (a) Where such action is taken by the board of the State Land Development Bank, the provisions of this Act and of any rules or by-laws made there under shall apply in respect thereto as if all references to the primary land development bank and to its board in the said provisions were references to the State Land Development Bank and to its board respectiv
(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (Central Act IV of 1882), or any other law for the time being in force, no mortgagor of property mortgaged to a primary land development bank, shall except with the prior consent in writing of the bank, and subject to such terms and conditions as the bank may impose lease or create any tenancy rights upon any such property.
Provided that, the rights of the primary land development bank shall be enforceable against the tenant-purchaser, the lessee or the tenant as the case may be, as if such tenant-purchaser or the lessee or the tenant were the mortgagor.
(2) Where the land mortgaged with possession to a land development bank is in the actual possession of a tenant, the mortgagor or the land development bank shall give notice to the tenant to pay the rent to the land development bank and on su
Notwithstanding anything contained in the Presidency Towns Insolvency Act, 1909 (Central Act III of 1909) or the Provincial Insolvency Act, 1920 (Central Act V of 1920), a mortgage executed favour of a primary land development bank shall not be called in question in any insolvency proceedings on the ground that it was not executed in good faith for valuable consideration or on the ground that it was executed in order to give the primary land development bank a preference over the other creditors of the mortgagor.
(1) A mortgage executed in favour of a primary land development bank shall have priority over any claim of the Government arising from a loan under the Land Improvement Loans Act, 1883 (Central Act XIX of 1883) granted after the execution of the mortgage.
(2) Without prejudice to the provisions of sub-section (1) and notwithstanding anything contained in this Act or in any other law for the time being in force, a mortgage executed in favour of a primary land development bank shall, subject to the claim of the Government in respect of land revenue, have priority over all other claims against the property secured by such mortgage.
Every primary land development bank shall, before advancing any loan on the security of any immovable property, verify encumbrances, if any, for-
(i) a period of thirteen years immediately preceding the date of application for such loan; and
(ii) a further period on and from the date of such application up to four months from the of execution of the mortgage.
Where a mortgage is executed in favour of a primary land development bank for payment of prior debts of the mortgagor the bank may notwithstanding the provisions of section 83 and 84 of the Transfer of Property Act, 1882 (Central Act IV of 1882) by notice in writing, require any person to whom any such debt is due to receive payment of such debt or part thereof from the bank at its registered office within such period as may be specified in the notice. If any such person fails to receive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice;
Provided that where there is a dispute as regards the amount of any such debt, the person to whom such debt is due shall be bound to receive payment of the amount offered by the primary land development bank towards the debt but such receipt shall not prejudice the rights,
(1) Subject to such restrictions, limitations and conditions as may be prescribed, the Registrar and persons subordinate to the registrar who are authorized by him inthis behalf by general or special order in writing, and such other persons, being officers of the State Land Development Bank or of the primary land development bank as the Government may, by notification, authorize in this behalf, shall have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (Central Act V of 1908) when trying a suit in respect of the following matters, namely_
(a) enforcing the attendance of any person and examining him on oath or affirmation;
(b) compelling the production of documents; and
(c) issuing commission for the examination of witnesses.
(1) Notwithstanding anything contained in the Registration Act, 1908 (Central Act XVI of 1908) it shall not be necessary for any member of the board, secretary or other officer of a primary land development bank or of the State Land Development Bank to appear in person or by agent at any registration office in any proceedings connected with the registration of any instrument executed by him in his official capacity or to sign as provided in section 58 of that Act.
(2) Where any instrument is so executed, the registering officer to whom such instrument is presented for registration may, if he thinks fit, refer to such member of the board, secretary or officer for information respecting the same, and, on being satisfied of the execution thereof, shall register the instrument.
Notwithstanding that a mortgage executed in favour of a primary land development bank has been transferred, or is deemed under the provisions of section 121 to have been transferred, to the State Land Development Bank.
(a) all moneys due under the mortgage shall, in the absence of any specific direction to the contrary issued by the board of the State Land Development Bank or Trustee and communicated to the mortgagor, be payable to the primary land development bank and such payment shall be as valid as if the mortgage had not been so transferred; and
(b) the primary land development bank shall, in the absence of any specific direction to the contrary issued by the board of the State Land Development Bank, or the Trustee and communicated to the primary land development bank, be entitled to-
&nbs
Every mortgage executed in favour of a primary land development bank by manager of a joint Hindu family or a karnavan of a Marumakkattayam, tarward or tavazhi or of a Nambudri illom or the manager of a Thiyya of Ezhava family or the ejaman or ejamanthi of an Aliyasantana family shall notwithstanding any law to the contrary, be binding on the members thereof, whether majors or minors.
Any primary land development bank or the State Land Development Bank may grant copies of any document obtained and kept by it in the course of its business, or of any entries in such documents; and any copy so granted shall, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document, or the entries therein, as the case may be.
The provisions of sections 102 and 103 of the Transfer of the Property Act, 1882 (Central Act IV of 1882), and of any rules made under section 104 of that Act shall apply so far as may be in respect of all notices to be served under this Chapter.
(1) The board of the State Land Development Bank may, subject to the approval of the trustee, make regulations not inconsistent with the provisions of this Chapter and the rules made thereunder for the purpose of giving effect to the provisions of this Chapter.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide.-
(a) for fixing the period of debentures and rate of interest payable thereon;
(b) for calling in debentures after giving notice to debenture-holders;
(c) for the issue of new debentures in place of debentures damaged or destroyed;
(d) for converting one class of debentures into another bearing a different rate of
The provisions of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in any other provisions of this Act or in any rules or by-laws or in any other law for the time being in force.
If the Registrar in the course of an audit under section 80 or after an inquiry has been held under section 81 or an inspection or investigation has been made under section 82 or an inspection of books has been made under section 83 or on receipt of an application made by not less than three-fourths of the members of a registered society or on receipt of a resolution of general body of registered society, is of opinion that the society ought to be wound up, he may issue a notice to the society calling upon it to make its representations to the registrar within one month from the date of receipt of such notice and the society shall follow such procedure as may be prescribed in this regard. A copy of the notice issued to the society shall be communicated to every member of the society in such manner as may be prescribed. The Registrar any, after considering the representations, if any, received from the society of from any memb
(1) Where the Registrar has made on order under section 137 for the winding-up of a registered society, he 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 a or damage to property, effects and claims.
(3) Where an appeal is preferred under clause (a) of sub-section (2) of section 152, an order of winding-up of a registered society made under sub-section (1) of section 137 shall not operate thereafter until the order is confirmed in appeal:
Provided that the liquidator shall continue to h
(1) Subject to any rules made in this behalf, the whole of the assets of a registered society in respect of which an order for winding-up has been made, shall vest in the liquidator, appointed under section 138 from the date on which the order takes effect and the liquidator shall have power to realize such assets by sale or otherwise.
(2) Such liquidator shall, subject to the control of the Registrar, also have power-
(a) to institute and defend suits and other legal proceedings on behalf of the registered society by the name of his office;
(b) to determine, from time to time, the contribution (including debts due) to be made or remaining to be made by the members or past members or by any officer or servant or former officer or servant or by estates or nominee, heirs or legal
(1) Where the affairs of a registered society have been completely wound up, the Registrar shall make an order cancelling the registration of the society. On the cancellation of its registration the society shall cease to exist as a corporate body from the date of such order of cancellation.
(2) An order made under sub-section (1) shall be communicated by a registered post to the society and to the financing bank, if any, of which the society was a member.
Save in so far as is expressly provided in this Act, no civil court shall take cognizance of any matter connected with the winding-up or cancellation of the Registration of a registered society under this Act, and when a liquidator has been appointed, no suit or other legal proceeding shall lie or be proceeded with against the liquidator as such or against the society or any member thereof on any matter touching the affairs of the registered society, except by leave of the Registrar and subject to such terms as he may impose;
Provided that where the winding-up order is cancelled or withdrawn under section 142, the provisions of this section shall cease to operate in respect of the liability of the society and its members to be sued but they shall continue to apply to the liquidator already appointed.
NOTES
Where, in the opinion of the Registrar, a registered society which has been ordered to be wound up may be restored to a board constituted in accordance with the provisions of this Act, the rules and the by-laws, he may, at any time before the affairs of the society have been completely wound up, cancel or withdraw the order of winding-up in consultation with the board of the financing bank and direct the liquidator to constitute a board in accordance with the provisions of this Act, the rules and the by-laws and hand over the management of the registered society to such board.
Added by T.N. Act 36 of 1989 [Provided that the Registrar shall not cancel or withdraw the winding up of any insured co-operative bank without the prior permission of the Reserve Bank of India.]
The Registrar or any person subordinate to him empowered by Registrar in this behalf may, subject to the rules and without prejudice to any other mode of recovery provided by or under this Act, recover_
(a) any sum due under a decree or an order of a civil court, a decision or an award of the Registrar or any person subordinate to and empowered by the Registrar or arbitrator or arbitrators or an order of the Registrar.
Explanations_ For the purpose of this clause, “ Registrar” and “ arbitrator” shall also include the Registrar of the State having reciprocal arrangements with the State of Tamil Nadu and any arbitrator appointed by such Registrar; or
(b) any sum due from a registered society or from an officer, former officer, member or past or deceased member of a registered soci
Notwithstanding anything contained in this Act or in any order law for the time being in force and without prejudice to any other mode of recovery which is being taken or may be taken, the Registrar or any person subordinate to him empowered by the Registrar in this behalf may subject to the rules and on application from the registered society for the purpose, recover any debt or outstanding demand due to the society by any member or post or deceased member by sale of the property or interest in property which is subject to a charge under sub-section (1) of section 40 ;
Provided that no sale be ordered under this section unless the member or past member or the nominee, heir or legal representative of the deceased member has been served in the manner prescribed, with a notice of the application to sell and has failed to pay the debt or outstanding demand within fifteen days from the date of such service.
If the financing bank is of opinion that it is necessary or expedient, in the public interest or for the purpose of securing the recovery of any debt or outstanding demand due to any registered society which is affiliated to the financing bank to publish the names of any members or past or deceased members from whom any debt or outstanding demand is due to the registered society, the financing bank may, subject to such conditions as may be prescribed, cause to be published in such manner as it thinks fit the names of such members.
The Registrar or any person empowered by him in that behalf shall be deemed when exercising any power under this Act for the recovery of any amount by the attachment and sale or by the sale without attachment of any property, or when passing any orders on any application made to him for such recovery or to take some steps in aid of such recovery, to be civil for the purposes of Article 136 of the Schedule to the Limitation Act, 1963 (Central Act 36 of 1963).
NOTES
S. 146 (s.57b of 1932 Act and S. 93 of 1961 Act)_ In the process of execution of the award for the realization of the amounts due there under and in sale and other proceedings, the Registrar is deemed to be a civil court. Still in obtaining delivery of possession, of property at a sale held by the Registrar, Rule 70 makes the purchaser a sale as court action purchaser. This is made clear from the words as if the immova
At any sale of movable or immovable property held for the recovery of any money due to a registered society, no officer or servant of such society or of the financing bank (except on behalf of the society or of the financing bank of which he is an officer or servant) and no sale officer or other person having any duty to perform in connection with such sale shall, either directly or indirectly, bid for or acquire or attempt to acquire any interest in such property.
(1) All sums due from a registered society or from an officer, former officer, member or past or deceased member of a registered society as such to the Government including any costs awarded to the government in any proceeding under this Act may, without prejudice to any other mode of recovery provided by or under this Act, be recovered in the same manner as arrears of land revenue and for the purposes of such recovery, the Registrar shall have the powers of a Collector under the Tamil Nadu Revenue Recovery Act, 1864 (Tamil Nadu Act II of 1864).
(2) Sums due from a registered society to the Government and recoverable under sub-section (1) may be recovered, firstly, from the property of the registered 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
(1) Where a member of a registered society has committed default in the payment any debt due by him to such society, such society shall take action for the recovery of the debt within such time as may be prescribed.
(2) Where any registered society is unable to pay its debt due to the financing bank by reason of its members committing default in the payment of debts due to such society and if such society fails to take action for the recovery of the debt within the period prescribed under sub-section (1) or in the opinion of the financing bank to which such society is indebted the action taken by such society, is not adequate, the financing bank may, without prejudice to any other mode of recovery which is being taken or may be taken and after giving such society an opportunity of making its representation, take action against such defaulting members for the recovery of the de
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, and without prejudice to any other mode of recovery which is being taken or may be taken under this Act or any other law for the time being in force, the Registrar may, on the application made by a registered society for the recovery of any sum due to it from any of its members and after making such enquiry as he deems fit, issue a certificate for recovery of such sums:
Provided that every application under this sub-section shall be accompanied by a statement of accounts in respect of the sums to be recovered from the member:
Provided further that no such certificate under this sub-section shall be issued unless the member concerned has been given an opportunity of making his representation.
(2) A certificate issued by th
(1) The Government may constitute as may Tribunals as may be necessary for the purpose of this Act.
(2) Each Tribunal shall consist of once or more persons possessing such qualifications as may be prescribed.
Provided that at least one person shall be a judicial officer not below the rank of a Subordinate Judge.
(3) Each Tribunal shall have such jurisdiction and over such area, as the Government may, may notification, from time to time, determine.
(1) Any person aggrieved by-
(a) any decision or award passed or order made or proceedings taken under sub-section (1) of section 87, sub-section (2), sub-section (3) or sub-section (4) of section 90, section 118, section 119, section 143, section 144 or section 167; or
(b) any award of an arbitrator or arbitrators under sub-section (2) or sub-section (3) of section 90;
(c) any award of an arbitrator under section 100,
May appeal shall to the Tribunal;
Provided that nothing contained in clause (a) or clause (b) of this sub-section shall apply to_
(i) any decision, order or award under sub-section (2), sub-section (3), or sub-section (4)
(1) The Registrar may of his own motion or on application, call for and examine the record of any officer subordinate to him or of the board or any officer of a registered society or of the competent authority constituted under sub-section (3) of section 75 and the Government may, of their own motion or on application, call for and examine the record of the Registrar, in respect of any proceedings under this Act or the rules or the by-laws not being a proceedings in respect of which an appeal to the Tribunal is provided by sub-section (1) of section 152 to satisfy himself or themselves as to the regularity of such proceedings, or the correctness, legality or propriety of any decision passed or order made therein; and, if, in any case., it appears to the Registrar or the Government that any such decision or order should be modified, annulled, reversed or remitted for reconsideration, he or they may pass orders accordingly.
(1) The appellant or the applicant for revision or the respondent may apply for the view of any order passed under section 152 or section 153 on the basis of the discovery of new and important facts, which after the exercise of due diligence, were not them within his knowledge or could not be produced by him when the order was made or on the basis of some mistake or error apparent on the face of the record or for any other sufficient reason.
Provided that no application for review shall be preferred more than once in respect of the same order.
(2) Every application for review shall be preferred within such time and in such manner as may be prescribed.
(3) The decision or order passed on the application in review shall be final.
Any order passed by the Tribunal, the Registrar or the Government under section 152, 153 or 154 shall be enforced by such authority and in such manner as may be prescribed.
Notwithstanding anything contained in any other law for the time being in force no order or award passed, decision or action taken or direction issued under this Act by an arbitrator, a liquidator, the Registrar or an officer authorized or empowered by him, the Tribunal or the Government or any officer subordinate to them, shall be liable to be called in question in any court and no injunction shall be granted by any court in respect of anything which is done or intended to be done by order under this Act.
NOTES
S. 156 (S. 100 of 1961 Act) _ Power under s.96 of 1961 Act _ (1970) 1 MLJ 280.
1992 (1) L.W. 216. No suit is maintainable against a co-operative Society.
1992 (2) L.W. 88 Suit not maintainable.
(1) The board of a registered society which willfully makes a false return or furnishes false information shall be punishable with fine which may extend to five hundred rupees.
(2) Any officer, employees or a paid servant or any member of the society who willfully makes a false return or furnishes false information, or any person who willfully or without any reasonable excuse, disobeys any summons, requisition or other lawful order, or direction issued under the provisions of this Act, or who willfully withholds or fails to furnish any information lawfully required from him by a person authorized in this behalf under the provisions of this Act, shall be punishable with imprisonment for a term which may extent to six months or with fine which may extent to five hundred rupees or with both.
NOTES
S. 157 (S. 101 of 1961 Act) Scope o
Any person who acts in contravention of sub-section (2) of section 40 or fails to deposit or entrust to custody property subject to a prior charge in favour of any registered society when required to do so by the society under sub-section (3) of that section or who acts in contravention of clause (iii) of section 41 or sub-section (3) of section 95 or sub-section (3) of section 105 shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five hundred rupees or with both.
(1) No person other than a registered society shall trade or carry on business under any name or title of which the word ‘co-operative’ or its equivalent in any regional language is part without the sanction of the Government.
Provided that nothing in this sub-section shall apply to the use by any person or his successor in interest of any name or title under which he traded or carried on business at the date on which the Co-operative Societies Act, 1912 (Central Act II of 1912) came into operation.
(2) Whoever contravenes the provisions of sub-section (1) shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing offence with further fine of fifty rupees for each day on which the offence is continued after conviction thereof.
The board of any registered society or an officer or an employee or a servant thereof who fails to give effect to any decision or award under section 90 or to any order passed by the appropriate appellate authority where an appeal against such decision or award has been filed such decision or award or order not being a money decree, shall if such failure is by:
(a) the board, be punishable with five which may extend to five hundred rupees; and
(b) an officer or an employee or a paid servant of such society, be punishable with imprisonment for a term which extend to six months or with fine which may extend to five hundred rupees of with both.
(1) Any officer of a registered society or an employee or paid servant or any member of such society, who uses or allows the use of the properties, other than funds of any society otherwise than in accordance with the provisions of this Act, the rules or the by-laws of the society, shall be punishable with fine which may extend to five hundred rupees.
(2) Substituted by T.N. Act 36 of 1989 [Whoever not entitled to be in possession of any of the records and properties of the society (whether or not member of the board which has been reconstituted or superseded or a member, officer, an employee, or a paid servant of any society which has been ordered to be wound up) referred to in sub-section (1) of section 165 prevents the re-constituted board, special officer or liquidator, as the case may be, from obtaining the possession of the said records and properties of the society shall be punishable with imprisonment for a te
(1) Where any officer of a registered society, or an employee or a paid servant or any member of such society-
(a) receives or sanctions a benami loan; or
(b) commits any irregularity in receipt or sanction of loan or in purchases or causes deficits in stocks; or
(c) accepts or obtains or agrees to accept or attempts to obtain from any person for himself or for any other person any gratification whatever, other than legal remuneration as a motive or reward for doing or forbearing to do any official act or showing or forbearing to show in the exercise of his official functions favour or disfavor to any person or for rendering or attempting to render any service or disservice to any person ; or
(d) uses or allows the use of funds o
Any registered society or its board or any officer or member thereof or any other person guilty of an offence under this Act for which no punishment is expressly provided herein shall be punishable with fine not exceeding fifty rupees.
(1) No Court inferior to that of a Metropolitan Magistrate or a judicial Magistrate of the first class shall try any offence under this Act.
(2) Every offence under this Act shall for the purpose of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), be deemed to be non-cognizable.
(3) 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.
(1) Where a Special Officer is appointed under section 88, or under section 89 or where the society is ordered to be wound up and a liquidator is appointed under section 138 and such reconstituted board, special officer, or liquidator is resisted in, or prevented from, obtaining possession of the books, accounts, documents, securities, cash and other properties, whether movable or immovable, of the society (hereafter in this section referred to as the records and properties of the society) by the board which has been reconstituted or superseded or by the society which has been ordered to be wound up or by and person the society, the reconstituted board, special officer or liquidator may apply to any Metropolitan Magistrate or a Judicial Magistrate of the first class in whose jurisdiction the office of the society or the records and properties of that society is or are situate for delivery of possession of the records and prop
(1) If at any time, it appears to the Registrar that a registered society has made default in performing any duty imposed by or under this Act or has filed to comply with a lawful order of the Registrar, he may be order in writing, fix a period for the performance of such duty or for the compliance of the order.
(2) If such duty is not performed or the order of the Registrar is not complied within the period so fixed, the Registrar or any person authorized by him in this behalf may take or cause to be taken such action as may be necessary and recover the expenses of taking such action from the society as if it were an arrear of land revenue and for the purposes of such recovery, the Registrar shall have the powers of a Collector under the Tamil Nadu Revenue Recovery Act., 1864 (Tamil Nadu Act II of 1864).
(3) Notwithstanding an
(1) Where the Registrar is satisfied on the application of a registered of society in respect of a reference made to him under sub-section (1) of section 90 or on the application of a liquidator appointed under section 138 in respect of the proceedings of such liquidator for determining the contribution to be made by a person to the assets of the society under clause (b) of sub-section (2) of section 139 or on the application of the board or liquidator or any creditor to the society or otherwise in respect of any inquiry ordered into the conduct of any person under section 87 that any party to the reference or the person, as the case may be, is about to dispose of or remove from the local limits of the jurisdiction of the Registrar, the whole or any part of his property with intent to defeat or delay the execution of any decision that may be passed on the reference or of any order that may be passed against him by the liquida
Notwithstanding anything contained in this Act, the Government may be special order in each case and subject to such conditions, if any, as they may impose, exempt and society from and of the requirements of this Act as to registration.
Nothing contained in clause (b) of sub-section (1) of section 33 or sub-section (8) thereof shall apply to any self-reliant society or class of self-reliant societies which complies with such conditions as the Government may be general or special order, specify.
Without prejudice to the power conferred by section 169, the Government may, in the public interest, by general, or special order, whether prospectively or retrospectively.-
(a) exempt any registered society, from any of the provisions other than clause (b) of sub-section (1) of section 88 and sub-section (1) of section 89 of this Act, or of the rules, subject to such conditions as may be specified; or
(b) direct that provisions of the rules shall apply to such society with such modifications as may be specified in the order.
The arbitrator appointed under clause (b) of sub-section (1) of section 100 and the Tribunal shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (Central Act V of 1908), when trying a suit or when hearing an appeal.
(1) The Government may, by notification, authorize any authority or officer to exercise any of the powers vested in them by this Act except the powers conferred under sections 170 and 180 and may in like manner withdraw such authority.
(2) The exercise of any power delegated under sub-section (1) shall be subject to such restrictions and conditions as may be prescribed or as may be specified in the notification and also to control and revision by the Government or by such officer as may be empowered by the Government in this behalf. The Government shall also have power to control and revise the acts or proceedings of any officer so empowered.
(1) Every society existing on the date of commencement of this Act which has been registered under the Co-operative Credit Societies Act, 1904 (Central Act X of 1904), or under the Co-operative Societies Act, 1912 (Central Act II of 1912), or under the Madras Co-operative Societies Act, 1932 (Madras Act VI of 1932), or under the Tamil Nadu Co-operative Societies Act, 1961 (Tamil Nadu Act 53 of 1961) and every society to which the Tamil Nadu Co-operative Land Development Banks Act, 1934 (Tamil Nadu Act X of 1934) applied immediately before the date of the commencement of this Act shall be deemed to be registered under this 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) Every society which has been registered under the law applicable to co-operative societies in the ar
No act of registered society or any board or of any officer of the society shall be deemed to be invalid merely on the ground-
(a) of any vacancy or defect in the organization of the society or the formation of the general body or the constitution of the representative general body or of the board;
(b) of any defect or irregularity in the election Inserted by T.N. Act 19 of 1992. [or co-option] or nomination or appointment as the case may be, of a member of the board or an officer of the society or of any disqualification of such member or officer; or
(c) of any defect or irregularity in such act or proceedings not affecting the merits of the case.
NOTES
S. 174 (S. 115 of 1961 Act) _ Read with S. 65 of 1961 Act _ Scope of _ (1968)
The provisions of the Companies Act, 1956 (Central Act I of 1956) shall not apply to registered societies.
No suit, prosecution or other legal proceeding shall lie against the Government or any officer or servant of the Government or the Registrar or any person authorized by him for anything which is in good faith done or intended to be done under this Act or any rule or by-law made thereunder.
All references to the Co-operative Societies Act, 1912 (Central Act II of 1912), or the Madras Co-operative Societies Act (VI of 1932), the Tamil Nadu Co-operative Land Development Banks Act, 1934 (Tamil Nadu Act X of 1934) or the Travancore-Cochin Co-operative Societies Act, 1951 (Travancore-Cochin Act X of 1952), the Tamil Nadu Co-operative Societies Act, 1961 (Tamil Nadu Act 53 of 1961), occurring in any enactment made by any authority in India and for the time being in force in the State of Tamil Nadu shall, in its application to the said State, be construed as references to this Act.
The general body of any registered society may, with the approval of the Registrar, write off such of its assets as are bad and cannot be recovered.
Section 178 of the Tamil Nadu Co-operative Societies Act, 1983, provides the legal framework for the write-off of non-recoverable assets by registered societies, subject to the approval of the Registrar. It plays a crucial role in the management and financial health of co-operative societies by allowing them to remove assets that cannot be recovered, thereby facilitating proper accounting and liquidation processes.
Section 178 authorizes the general body of a registered society, with the Registrar’s approval, to write off assets that are bad and cannot be recovered. This process is intended to prevent the society’s books from being burdened with irrecoverable assets, thus maintaining financial integrity.
While Section 178 itself does not specify penalties, contravention of the provisions—such as acting without Registrar’s approval or passing invalid resolutions—may lead to penalties under the broader offences and penalties provisions of the Tamil Nadu Cooperative Societies Act, 1983. Such violations could include fines, suspension, or other disciplinary actions as prescribed under the Act.
This commentary synthesizes statutory provisions, judicial interpretations, and procedural requirements to provide a comprehensive understanding of Section 178 within the framework of the Tamil Nadu Co-operative Societies Act, 1983.
(1) The Government may, by notification, from time to time, amend the Schedule.
(2) When the Schedule is so amended, any reference to the Schedule in this Act, shall be construed as a reference to the Schedule as so amended.
(1) The Government may, for the whole or any part of the State of Tamil Nadu and for any registered society or class of such societies, make rules to carry out all or any of the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may-
(a) prescribe the forms to be used and the conditions to be complied with in the making of applications for the registration of a society and the procedure in the matter of such application and the fees to be paid in respect of such applications.
(b) subject to the provisions of section 5, prescribe the procedure to be followed when societies change their form of liability;
(c) prescribe the procedure to be followed and conditions to be
(1) Where the Registrar is satisfied that in the public interest or for the purpose of securing proper implementation of co-operative production and other development programmes approved or undertaken by the Government or to secure the proper management of the business of any registered societies generally, or for preventing the affairs of any registered society being conducted in manner detrimental to the interests of the members, or of the depositors or the creditors thereof, it is necessary to issue directions to any class of registered societies generally or to any registered society or registered societies in particular, he may, by order issue directions to them from time to time, and all registered societies, or the registered society concerned, as the case may be, shall be bound to comply with such directions.
(2) The Registrar may, by order, modify or cancel any direc
(1) The Government may, in the public interest, by order, direct the Registrar to make an inquiry or to take appropriate proceedings under this Act, in any case specified in the order, and the Registrar shall report to the Government the result of the inquiry made or the proceedings taken by him within a period of six months from the date of such order or such further period as the Government may permit.
(2) In any case, in which a direction has been given under sub-section (1), the Government may, notwithstanding anything contained in this Act, call for and examine the record of the proceedings of the Registrar and pass such orders in the case as they may think fit:
Provided that before passing any order under this sub-section the person likely to be affected by such order shall be given an opportunity of making his representation.
(1) The Tamil Nadu Co-operative Societies Act, 1961 (Tamil Nadu Act 53 of 1961) and the Tamil Nadu Co-operative Land Development Banks Act, 1934 (Tamil Nadu Act X of 1934) (hereafter in this section referred to as the said Acts), are hereby repealed.
(2) The repeal, by sub-section (1), of the said Acts shall not affect - (i) the previous operation of the said Acts or anything done or duly suffered thereunder; or
(ii) any right, privilege, obligation or liability acquired, accrued or incurred under the said Acts; or
(iii) any penalty, forfeiture or punishment incurred in respect of any offence committed against the said Acts; or
(iv) any investigation, legal proceedings or remedy in respect of any such right, privilege, obligation, liability, penal
(1) If anydifficulty arises in giving effect to the provisions of this Act, the Government may, by order, do anything not inconsistent with such provisions which appears to them to be necessary or expedient for the purpose of removing the difficulty.
(2) No order under sub-section (1) shall be made after the expiration of a period of two years from the date of commencement of this Act.
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