MULTI-STATE CO-OPERATIVE SOCIETIES ACT, 2002
(1) This Act may be called the Multi-State Co-operative Societies Act, 2002.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
This Act shall apply to--
(a) all co-operative societies, with objects not confined to one State which were incorporated before the commencement of this Act,--
(i) under the Co-operative Societies Act, 1912, 2 OF 1912 or
(ii) under any other law relating to co-operative societies in force in any State or in pursuance of the Multi-unit Co-operative Societies Act, 1942, 6 of 1942 or the Multi-State Co-operative Societies Act, 1984, 51 of 1984,
and the registration of which has not been cancelled before such commencement; and
(b) all multi-State co-operative societies.
In this Act, unless the context otherwise requires,--
(a) "area of operation" means the area from which the persons are admitted as members;
(b) "board" means the board of directors or the governing body of a multi-State co-operative society, by whatever name called, to which the direction and control of the management of the affairs of the society is entrusted;
(c) "bye-laws" means the bye-laws for the time being in force which have been duly registered or deemed to have been registered under this Act and includes amendments thereto which have been duly registered or deemed to have been registered under this Act;
(d) "Central Registrar" means the Central Registrar of Co-operative Societies appointed under sub-section (1) of section 4 and includes a
(1) No multi-State co-operative society shall be registered under this Act, unless,--
(a) its main objects are to serve the interests of members in more than one State; and
(b) its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative principles.
(2) The word "limited" or its equivalent in any Indian language shall be suffixed to the name of every multi-State co-operative society registered under this Act with limited liability.
(1) For the purposes of registration of a multi-State co-operative society under this Act, an application shall be made to the Central Registrar in such form and with such particulars as may be prescribed.
(2) The application shall be signed,--
(a) in the case of a multi-State co-operative society of which all the members are individuals, by at least fifty persons from each of the State concerned;
(b) in the case of a multi-State co-operative society of which the members are co-operative societies, by duly authorised representatives on behalf of at least five such societies as are not registered in the same State; and
(c) in the case of a multi-State co-operative society of which another multi-State co-operative society and other co-operative societ
(1) If the Central Registrar is satisfied--
(a) that the application complies with the provisions of this Act and the rules;
(b) that the proposed multi-State co-operative society satisfies the basic criterion that its objects are to serve the interests of members in more than one State;
(c) that its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative principles;
(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules,
he may register the multi-State co-operative society and its bye-laws.
(2) The application for registration shall be disposed
Where a multi-State co-operative society is registered under this Act, the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the registration of the society has been cancelled.
(1) The registration of a multi-State co-operative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to acquire, hold and dispose of property, both movable and immovable, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it is constituted, and shall, by the said name, sue or be sued.
(2) All transactions entered into in good faith prior to the registration of a multi-State co-operative society shall be deemed to be its transactions after registration for furtherance of the objects of its registration.
(1) Every multi-State co-operative society may make its bye-laws consistent with the provisions of this Act and the rules made thereunder.
(2) In particular, and without prejudice to the generality of the foregoing power, such bye-laws may provide for all or any of the following matters, namely:--
(a) the name, address and area of operation of the society;
(b) the objects of the society;
(c) the services to be provided to its members;
(d) the eligibility for obtaining membership;
(e) the procedure for obtaining membership;
(f) the conditions for continuing as member;
(g) t
(1) No amendment of any bye-law of a multi-State co-operative society shall be valid, unless such amendment has been registered under this Act.
(2) The amendment to the bye-laws of a multi-State co-operative society shall be made by a resolution passed by a two-third majority of the members present and voting at general meeting of the society.
(3) No such resolution shall be valid unless fifteen clear days' notice of the proposed amendment has been given to the members.
(4) In every case in which a multi-State co-operative society proposes to amend its bye-laws, an application to register such amendments shall be made to the Central Registrar together with--
(a) a copy of the resolution referred to in sub-section (2);
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An amendment of the bye-laws of a multi-State co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered,
(1) A multi-State co-operative society may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligation of the multi-State co-operative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-State co-operative society by its former name, may be continued or commenced by or against its new name.
(2) Where a multi-State co-operative society changes its name, the Central Registrar shall enter the new name on the register of multi-State co-operative society in place of the former name and shall amend the certificate of registration accordingly.
Every multi-State co-operative society shall have a principal place of business and an address registered in the manner prescribed to which all notices and communications may be sent.
Every multi-State co-operative society--
(a) shall paint or affix its name and the address of its registered office and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in conspicuous position, in letters easily legible; and if the characters employed therefor are not those of the language, or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages;
(b) shall have its name en graven in legible characters on its seal; and
(c) shall have its name and the address of its registered office mentioned in legible characters in all its business letters, in all its bill heads and letter paper, and in all its notices and other official publications; and also have its name so
(1) No multi-State co-operative society with unlimited liability shall be registered after the commencement of this Act:
Provided that where a multi-State co-operative society with unlimited liability was functioning before the commencement of this Act, such a society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a multi-State co-operative society with limited liability by following the procedure specified in sub-sections (2) to (4).
(2) Subject to the provisions of this Act and the rules, a multi-State co-operative society may, by an amendment of its bye-laws, change the extent of its liability.
(3) When a multi-State co-operative society has passed a resolution to change the extent of its liabilit
(1) A multi-State co-operative society may, by a resolution passed by a majority of not less than two-thirds of the members, present and voting at a general meeting of the society held for the purpose,--
(a) transfer its assets and liabilities in whole or in part to any other multi-State co-operative society or co-operative society;
(b) divide itself into two or more multi-State co-operative societies; (c) divide itself into two or more co-operative societies.
(2) Any two or more multi-State co-operative societies may, by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new multi-State cooperative society.
(3) The resolution of
When an order of moratorium has been made by the Central Government under sub-section (2) of section 45 of the Banking Regulation Act, 1949 in respect of a cooperative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme--
(a) for the amalgamation of the co-operative bank with any other co-operative bank; or
(b) for the reorganisation of the co-operative bank.
(1) Any multi-State co-operative society may, by a resolution passed at general meeting by a majority of members present and voting, promote one or more subsidiary institutions, which may be registered under any law for the time being in force, for the furtherance of its stated objects.
(2) Any subsidiary institution promoted under sub-section (1) shall exist only as long as general body of the multi-State co-operative society deems its existence necessary:
Provided that a multi-State co-operative society, while promoting such a subsidiary institution, shall not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated objects.
Explanation.-- For the purposes of this section,--
(a) an institution shall
Notwithstanding anything contained in section 17 or any other provision of this Act, where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, is amalgamated or reorganised and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of that Act, the bank with which such insured bank is amalgamated or the new co-operative bank formed after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
(1) Where the whole of the assets and liabilities of a multi-State co-operative society are transferred to another multi-State co-operative society or to a co-operative society in accordance with the provisions of section 17, the registration of the first-mentioned multi-State co-operative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more multi-State co-operative societies are amalgamated into a new multi-State co-operative society in accordance with the provisions of section 17, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each of the amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a multi-St
(1) A co-operative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-State co-operative society:
Provided that no such amendment of bye-laws of a co-operative society shall be valid unless it has been registered by the Central Registrar.
(2) (a) Every proposal for such amendment of bye-laws shall be forwarded to the Central Registrar in accordance with the provisions contained in sub-section (4) of section 11.
(b) If the Central Registrar, after consulting the Registrars of Co-operative Societies of the States concerned, has satisfied himself that such amendment--
(i) fulfils the requirements of the members being from more than one State;
(ii) is in acco
(1) Every federal co-operative shall obtain registration certificate in accordance with the provisions of this Act.
(2) Every federal co-operative shall in its general meeting be represented by its member co-operative.
(3) The classification of federal co-operative and other terms and conditions applicable to it shall be such as may be prescribed.
(4) All provisions of this Act, applicable to a multi-State co-operative society shall, as far as may be, apply to a federal co-operative.
(1) Subject to the provisions of this Act and any other law for the time being in force, a federal co-operative may discharge the functions to. facilitate the voluntary formation and democratic functioning of co-operative societies as federal co-operative or multi-State co-operatives based on self-help and mutual aid.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the federal co-operative may--
(a) ensure compliance of the co-operative principles;
(b) make model bye-laws and policies for consideration of its member cooperative;
(c) provide specialised training, education and data-base information;
(d) undertake research, evaluation and assist in preparation of pers
(1) No person shall be admitted as a member of a multi-State co-operative society except the following, namely:--
(a) an individual, competent to contract under section 11 of the Indian Contract Act, 1872;
(b) any multi-State co-operative society or any co-operative society;
(c) the Central Government;
(d) a State Government;
(e) the National Co-operative Development Corporation established under the National Co-operative Development Corporation Act, 1962;
(f) any other corporation owned or controlled by the Government;
(g) any Government company as defined in section 617 of the Companies Act, 1956;
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A multi-State co-operative society may, if provided in its bye-laws, admit a person as nominal or associate member:
Provided that no such nominal or associate member shall be entitled to subscribe the shares of such society or have any interest in the management thereof including right to vote, elect as a director of the board or participate in the general body meetings.
(1) Every multi-State co-operative society shall organise co-operative education programmes for its members, directors and employees.
(2) Every multi-State co-operative society may provide funds for such co-operative education programmes.
No member of a multi-State co-operative society shall exercise the rights of a member, unless he has made the payment to the society in respect of membership, or has acquired such interest in the society, as may be specified in the bye-laws.
No person shall be eligible for being a member of a multi-State co-operative society if--
(a) his business is in conflict or competitive with the business of such multi-State co-operative society; or
(b) he used for two consecutive years the services below the minimum level specified in the bye-laws; or
(c) he has not attended three consecutive general meetings of the multi-State co-operative society and such absence has not been condoned by the members in the general meeting; or
(d) he has made any default in payment of any amount to be paid to the multi-State co-operative society under the bye-laws of such society.
(1) A multi-State co-operative society may, by resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society:
Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation in the matter.
(2) No member of the multi-State co-operative society who has been expelled under sub-section (1), shall be eligible for re-admission as a member of that society, for a period of one year from the date of such expulsion.
Every member of a multi-State co-operative society, including a member who is an employee of such society, shall have one vote in the affairs of the society:
Provided that--
(a) a member who is an employee of such society shall not be entitled to vote--
(i) at the election of a member of the board of such society;
(ii) in any general meeting convened for framing the bye-laws of such society or any amendments thereto;
(b) in the case of an equality of votes, the chairperson shall have a ousting vote;
(c) where any of the authorities, multi-State co-operative society or a co-operative society referred to in clauses (b) to (g) of sub-section (1) of section 25 is a
Every member of a multi-State co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy:
Provided that a multi-State co-operative society or a co-operative society or any other institution which is a member of any other multi-State co-operative society may, subject to the provisions of sub-section (3) of section 38 and the rules, appoint its representative to vote on its behalf in the affairs of such multi-State co-operative society.
No member, other than the authorities referred to in clauses (c) to (g) of sub-section (1) of section 25 or a multi-State co-operative society or a co-operative society, shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed in the rules or bye-laws of such multi-State co-operative society.
The transfer of share or interest of a member in the capital of a multi-State co-operative society shall be subject to such conditions as to maximum holding as specified in section 33.
(1) Shares held in a multi-State co-operative society by any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 25 shall be redeemable in accordance with the bye-laws of such multi-State co-operative society and in a case where the bye-laws do not contain any provision in this regard, in such manner as may be agreed upon between the multi-State co-operative society and such authority.
(2) The redemption of shares referred to in sub-section (1) shall be on the face value of the shares.
(1) On the death of a member, a multi-State co operative society may transfer the share or interest of the deceased member to the person nominated in accordance with the bye-laws made in this behalf or, if there is no person nominated, to such person as may appear to the board to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest as ascertained in accordance with the rules:
Provided that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.
(2) A multi-State co-operative society shall, unless within six months of the death of the member prevented by an order of a competent court, pay to such nominee, heir or legal re
(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 multi-State co-operative society for the debts of the society as they existed,--
(a) in the case of a past member, on the date on which he ceased to be a member;
(b) in the case of a deceased member, on the date of his death, shall continue for a period of two years from such date.
(2) Notwithstanding anything contained in sub-section (1), where a multi-State co-operative society is ordered to be wound up under section 86, the liability of a past member who ceased to be a member or of the estate of a deceased member who died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, bu
(1) The general body of a multi-State co-operative society shall consist of all the members of such society:
Provided that where the bye-laws of a multi-State co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws, that smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society.
(2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a multi-State co-operative society shall vest in the general body of its members:
Provided that nothing contained in this sub-section shall affect the exercise by the board or any officer of a multi-State co-operative society of any po
(1) The board of every multi-State co-operative society shall, within such period as may be prescribed, and not later than six months after the close of the corresponding year, call the annual general meeting in the manner prescribed for the purpose of--
(a) consideration of the audited statement of accounts;
(b) consideration of the audit report and annual report;
(c) consideration of audit compliance report;
(d) disposal of net profits;
(e) review of operational deficit, if any;
(f) creation of specific reserves and other funds;
(g) approval of the annual budget;
(h) rev
(1) The Chief Executive may, at any time, on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the bye-laws,
(2) If a special general meeting of a multi-State co-operative society is not called in accordance with the requisition referred to in sub-section (1), the Central Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such
(1) Subject to the provisions of this Act and rules, there shall be a board of directors for every multi-State co-operative society consisting of such number of members as specified in sub-section (3).
(2) The members of a multi-State co-operative society, by a resolution in a general meeting, shall elect directors who shall be members of board.
(3) The board shall consist of such number of directors as may be specified in the bye-laws:
Provided that the maximum number of directors in no case shall exceed twenty-one:
Provided further that the board may co-opt we directors in addition to twenty-one directors specified in the first proviso:
Provided also that the functional directors in the national co-oper
Every multi-State co-operative society shall devise such procedure, as may be specified in the bye-laws or in the administrative instructions of such society, for the association of the representatives of employees of such multi-State co-operative societies at such level or bodies as may be specified in the bye-laws or the instructions issued in this regard, in the management decision making process.
(1) No member of any multi-State co-operative society or nominee of a member, society or a national co-operative society shall be eligible for being chosen as, or for being, a member of the board of such multi-State co-operative society or a national co-operative society, or of any other co-operative society to which the multi-State co-operative society is affiliated, if such member--
(a) has been adjudged by a competent court to be insolvent or of unsound mind;
(b) is concerned or participates in the profits of any contract with the society;
(c) has been convicted for an offence involving moral turpitude;
(d) holds any office or place of profit under the society:
Provided that the Chief Executive or such
(1) No member of a board shall be eligible to be elected as the chairperson or president or vice-chairperson or vice-president of a multi-State co-operative society if such member is a Minister in the Central Government or a State Government.
(2) No member of a board shall be eligible to be elected as the chairperson or president of a multi-State co-operative society, after he has held the office, as such during two consecutive terms, whether full or part:
Provided that a member who has ceased to hold the office of the chairperson or president continuously for one full term shall again be eligible for election to the office as such.
Explanation.-- Where any member holding the office of the chairperson or president at the commencement of this Act is again elected to that office after such comme
(1) The conduct of elections to the board of a multi-State co-operative society shall be the responsibility of the existing board.
(2) The election of members of board shall be held by secret ballot in the manner as may be prescribed.
(3) The election of the members of the board shall be held in the general meeting of the members of the multi-State co-operative society.
(4) The elected members of the board shall, if the bye-laws of such society permit, be eligible for re-election.
(5) The term of office of the elected members of the board shall be such, not exceeding five years from the date of elections, as may be specified in the bye-laws of a multi-State co-operative society:
Provided that elected memb
Notwithstanding anything contained in this Act, no person shall be eligible to hold, at the same time, office of a president or chairperson or vice-president or vice-chairperson on the board of more than two multi-State co-operative societies.
An elected member of a board, who has acted adversely to the interests of multi-State co-operative society, may on the basis of a report of the Central Registrar or otherwise be removed from the board upon a resolution of the general body passed at its meeting by a majority of not less than two-third of the members present and voting at the meeting:
Provided that the member concerned shall not be removed unless he has been given a reasonable opportunity of making a representation in the matter.
(1) Where the Central Government or a State Government has subscribed to the share capital of a multi-State co-operative society, the Central Government or the State Government, as the case may be, or any person authorised by the Central Government or the State Government shall have right to nominate on the board such number of persons as its members on the following basis, namely:--
(a) where the total amount of issued equity share capital held by the Central Government or the State Government is less than twenty,-six per cent. of the total issued equity share capital, one member of the board;
(b) where the total amount of issued equity share capital held by the Central Government or the State Government is twenty-six per cent or more but less than fifty-one per cent. of the total issued equity share capital, two members of the board;
(1) The board may exercise all such powers as may be necessary or expedient for the purpose of carrying out its functions under this Act.
(2) Without prejudice to the generality of the foregoing powers, such powers shall include the power--
(a) to admit members;
(b) to interpret the organisational objectives and set-up specific goals to be achieved towards these objectives;
(c) to make periodic appraisal of operations;
(d) to appoint and remove a Chief Executive and such other employees of the society as are not required to be appointed by the Chief Executive;
(e) to make provisions for regulating the appointment of employees of the multi-State co-operative soc
(1) The Chief Executive shall convene the meetings of the board at the instance of the chairperson or president of the multi-State co-operative society.
(2) The total number of meetings of the board in a year and the venue of meetings as may be specified in the bye-laws:
Provided that the board shall meet at least once in every quarter:
Provided further that not more than two persons may be invited by the board in its meetings.
(3) The Chairperson, or if for any reason, he is unable to attend a meeting of the board, any other member of the board chosen by the members of the board present from amongst themselves at the meeting, shall preside at the meeting.
(1) There shall be a Chief Executive, by whatever designation called, of every multi-State co-operative society to be appointed by the board and he shall be a full-time employee of such multi-State co-operative society.
(2) The Chief Executive shall be a member of the board and of the Executive Committee and such other committees or sub-committees as may be constituted under sub-section (1) of section 53.
(3) Where the Central Government or the State Government holds fifty-one per cent. or more of the equity share capital or of total shares of the multi-State co-operative society, the salary and allowances payable to and other terms and conditions of service including pension, gratuity and other retirement benefits of the Chief Executive shall be such as may be prescribed.
The Chief Executive shall under the general superintendence, direction and control of the board, exercise the powers and discharge the functions specified below, namely:--
(a) day-to-day management of the business of the multi-State-co-operative society;
(b) operating the accounts of the multi-State co-operative society and be responsible for making arrangements for safe custody of cash;
(c) signing on the documents for and on behalf of the multi-State co-operative society;
(d) making arrangements for the proper maintenance of various books and records of the multi-State co-operative society and for the correct preparation, timely submission of periodical statements and returns in accordance with the provisions of this Act, the rules and the bye-law
(1) The board may, subject to such conditions as may be prescribed, constitute an Executive Committee and other committees or sub-committees as may be considered necessary:
Provided that other committees or sub-committees, other than the Executive Committee shall not exceed three.
(2) The Executive Committee or other committee or sub-committee referred to in sub-section (1) shall perform such functions as are assigned to it in accordance with the bye-laws of the multi-State co-operative society.
(1) If--
(a) the records, including registers and books of account of a multi-State cooperative society are likely to be tampered with or destroyed or the funds or other property of such society are likely to be mis-appropriated; or
(b) the board of a multi-State co-operative society is reconstituted at a general meeting of the society; or
(c) a multi-State co-operative society is ordered to be wound up under section 86 and the outgoing members of the board refuse to handover charge of the records and property of the society to those having or entitled to receive such charge,
the Chief Executive may apply to the magistrate within whose jurisdiction the multi-State co-operative society functions for securing the records and property of the society.
A multi-State co-operative society shall have a charge on the share or contribution or interest in the capital and on the deposits of a member or past or deceased member and on any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member or the estate of such deceased member to the society, and may set-off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt.
(1) Subject to the provisions of section 55, the share or contribution or interest of a member or past or deceased member in the capital of a multi-State co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member, and an official assignee or a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or contribution or interest.
(2) The reserve fund, or the bad debt reserves, or the provident fund of the employees, of a multi-State co-operative society invested by such society in accordance with the provisions of this Act and the bye-laws 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 multi-State co-operative society shall be prima facie evidence of any of the following particulars entered therein, namely:--
(a) the date on which any person entered in such register or list became 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 multi-State co-operative society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of the existence of such entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent, as the original entry itself is admissible.
(2) No officer of a multi-State co-operative society and no officer in whose office the books of a multi-State co-operative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and ac
Nothing in clauses (A) and (c) of sub-section (1) of section 17 of the Registration Act, 1908(16 of 1908) shall apply to--
(a) any instrument relating to shares in a multi-State co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) 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
(c) an endorsement
(1) Notwithstanding anything contained in any law for the time being in force, a member of a multi-State co-operative society may execute an agreement in favour of that society providing that his employer disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable to him, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand the member owes to the society.
(2) On the execution of such agreement, the employer disbursing the salary or wages of the members shall, if so required by the multi-State co-operative society, by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within a p
Notwithstanding anything contained in any law for the time being in force, the Central Government or a State Government, on receipt of request from a multi-State cooperative society and with a view to promoting co-operative movement, may,--
(a) subscribe to the share capital of a multi-State co-operative society;
(b) give loans or make advances to a multi-State co-operative society;
(c) guarantee the repayment of principal and payment of interest on debentures issued by a multi-State co-operative society;
(d) guarantee the repayment of share capital of a multi-State co-operative society and dividends thereon at such rates as may be specified by the Central Government or the State Government;
(e) guaran
(1) No part of the funds, other than net profits, of a multi-State co-operative society shall be divided by way of bonus or dividend or otherwise distributed among its members.
(2) The net profits of a multi-State co-operative society referred to in sub-section (1) in respect of a society earning profits shall be calculated by deducting from the gross profit for the year, all interest accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under the law relating to payment of bonus for the time being in force, and equalisation fund for such bonus, provision for payment of income-tax and making approved donations under the Income-tax Act, 1961(43 of 1961), development rebate, provision for development fund, bad
(1) A multi-State co-operative society shall, out of its net profits in any year,--
(a) transfer an amount not less than twenty-five per cent. to the reserve fund;
(b) credit one per cent. to co-operative education fund maintained, by the National Co-operative Union of India Limited, New Delhi, in the manner as may be prescribed;
(c) transfer an amount not less than ten per cent. to a reserve fund for meeting unforeseen losses.
(2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilised for all or any of the following purposes, namely:--
(a) payment of dividend to the members on their paid-up share capital at a rate not exceeding the prescribed limit;
A multi-State co-operative society may invest or deposit its funds--
(a) in a co-operative bank, State co-operative bank, co-operative tend development bank or Central co-operative bank; or
(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882(2 of 1882); or
(c) in the shares or securities of any other multi-State co-operative society or any co-operative society; or
(d) in the shares, securities or assets of a subsidiary institution or any other institution; or
(e) with any other bank; or
(f) in such other mode as may be provided in the bye-laws.
Explanation. ---For the purposes of claus
No multi-State co-operative society shall make a contribution, either in money or in kind, whether directly or indirectly, to an institution which has an object of furtherance of the interest of a political party.
(1) A multi-State co-operative society, other than a co-operative bank, shall not make a loan to a member on the security of his share or on the security of a non-member.
(2) Notwithstanding anything contained in sub-section (1), a multi-State co-operative society may make a loan to a depositor on the security of his deposit.
(1) A multi-State co-operative society may receive deposits, raise loans and receive grams from external sources to such extent and under such conditions as may be specified in the bye-laws:
Provided that the total amount of deposits and loans received during any financial year shall not exceed ten times of the sum of subscribed share capital and accumulated reserves:
Provided further that while calculating the total sum of subscribed share capital and accumulated reserves, the accumulated losses shall be deducted.
(2) Subject to the provisions of sub-section (1), a multi-State co-operative society may accept funds or borrow funds for the fulfilment of its objects on such terms and conditions as are mutually contracted upon.
(3) A multi-State co-ope
Save as provided in sections 66 and 67, the transaction of a multi-State cooperative society with any person other than a member, shall be subject to such prohibitions and restrictions, if any, as may be specified in the bye-laws.
(1) Subject to the provisions of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952(19 of 1952), a multi-State co-operative society having such number or class of employees as may be prescribed, may establish a contributory provident fund for the benefit of its employees to which shall be credited all contributions made by the employees and the society in accordance with the bye-laws of the society.
(2) Monies standing to the credit of any contributory provident fund established by a multi-State co-operative society under sub-section (1) 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 or other authority.
(1) Every multi-State co-operative society shall cause to be audited by an auditor referred to in sub-section (2), its accounts at least once in each year.
(2) Every multi-State co-operative society shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed:
Provided that such auditor or auditors may be appointed from a panel of auditors approved by the Central Registrar or from a panel of auditors, if any, prepared by the multi-State co-operative society.
(3) Every auditor appointed under sub-section (1) shall, within thirty days of the receipt from the multi-State co-operati
(1) A special notice shall be required for a resolution at an annual general meeting appointing as auditor a person other than a retiring auditor, or providing expressly that a retiring auditor shall not be re-appointed.
(2) On receipt of notice of such a resolution, the multi-State co-operative society shall forthwith send a copy thereof to the retiring auditor.
(3) Where notice is given of such a resolution and the retiring auditor makes with respect thereto representations in writing to the multi-State co-operative society (not exceeding a reasonable length) and requests their notification to members of the multi-State co-operative society, the multi-State co-operative society shall, unless the representations are received by it too late for it to do so,--
(a) in any notice of the resolutio
(1) A person shall not be qualified for appointment as an auditor of a multi-State co-operative society unless he is a chartered accountant within the meaning of the Chartered Accountants Act, 1949(38 of 1949).
(2) None of the following persons shall be qualified for appointment as auditor of a multi-State co-operative society--
(a) a body corporate;
(b) an officer or employee of the multi-State co-operative society;
(c) a person who is a member, or who is in the employment, of an officer or employee of the multi-State co-operative society;
(d) a person who is indebted to the multi-State co-operative society or who has given any guarantee or provided any security in connection with the indebtedness of any
(1) Every auditor of a multi-State co-operative society shall have a right of access at all times to the books, accounts and vouchers of the multi-State co-operative society, whether kept at the head office of the multi-State co-operative society or elsewhere, and shall be entitled to require from the officers or other employees of the multi-State cooperative society such information and explanations as the auditor may think necessary for the performance of his duties as an auditor.
(2) Without prejudice to provisions of sub-section (1), the auditor shall inquire,--
(a) whether loans and advances made by the multi-State co-operative society on the basis of security have been properly secured and whether the terms on which they have been made are not prejudicial to the interests of the multi-State co-operative society or its members;
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Only the person appointed as an auditor of the multi-State co-operative society shall sign the auditor's report, or sign or authenticate any other document of the multi-State co-operative society required by law to be signed or authenticated by the auditor.
The auditor's report shall be read before the multi-State co-operative society in the general meeting and shall be open to inspection by any member of the multi-State co-operative society.
All notices of, and other communications relating to, any general meeting of a multi-State co-operative society, which any member of the multi-State co-operative society is entitled to have sent to him, shall also be forwarded to the auditor of the multi-State co-operative society; and the auditor shall be entitled to attend any general meeting and to be heard at any general meeting which he attends on any part of the business which concerns him as auditor.
(1) Where the Central Government is of the opinion--
(a) that the affairs of any multi-State co-operative society are not being managed in accordance with self-help and mutual aid and co-operative principles or prudent commercial practices; or with sound business principles; or
(b) that any multi-State co-operative society is being managed in a manner likely to cause serious injury or damage to the interests of the trade, industry or business to which it pertains; or
(c) that the financial position of any multi-State co-operative society is such as to endanger its solvency,
the Central Government may at any time by order direct that a special audit of the multi-State co-operative society's accounts for such period or periods as may be specified in
(1) The Central Registrar may, on a request from a federal co-operative to which a multi-State co-operative society is affiliated or a creditor or not less than one-third of the members of the board or not less than one-fifth of the total number of members of a multi-State co-operative society hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a multi-State co-operative society:
Provided that no inquiry under this sub-section shall be held unless a notice of not less than fifteen days has been given to the multi-State co-operative society.
(2) The Central Registrar or the person authorised by him under sub-section (1) shall have the following powers, namely:--
(a) he shall at
(1) The Central Registrar may, on a request from a federal co-operative to which a multi-State co-operative society is affiliated or a creditor or not less than one-third of the members of the board or not less than one-fifth of the total number of members of a multi-State co-operative society by general or special order in writing in this behalf, inspect or direct any person authorised by him by order in writing in this behalf to make an inspection into the constitution, working and financial condition of a multi-State co-operative society:
Provided that no inspection under this sub-section shall be made unless a notice of not less than fifteen days has been given to the multi-State co-operative society.
(2) (a) For the purpose of inspection under sub-section (1), the Central Registrar or the person authorised by him under that sub-se
(1) The Central Registrar shall, on the application of a creditor of a multi-State cooperative society, inspect, or direct some person authorised by him by order in writing in this behalf to inspect, the books of the society:
Provided that no such inspection shall be made unless the applicant--
(a) satisfies the Central Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time;
(b) deposits with the Central Registrar such sum as security for the costs of the proposed inspection as the Central Registrar may require.
(2) The Central Registrar shall communicate the result of any such inspection to the creditor.
Where an inquiry is held under section 78 or an inspection is made under section 79, the Central Registrar may apportion the costs, or such part of the costs, as he may think fit, between the multi-State co-operative society, the members or creditors demanding an inquiry or inspection, and the officers or former officers and the members or past members of that society:
Provided that--
(a) no order of apportionment of the costs shall be made under this section unless the society or the person liable to pay the costs thereunder has had a reasonable opportunity of being heard;
(b) the Central Registrar shall state in writing under his own hand the grounds on which the costs are apportioned.
Any sum awarded by way of costs under section 81 may be recovered, on application to a magistrate having jurisdiction in the place where the person, from whom the money is claimable, actually and voluntarily resides or carries on business, and such magistrate shall recover the same as if it were a fine imposed by himself.
(1) If in the course of an audit, inquiry, inspection or the winding up of a multi-State co-operative society, it is found that any person, who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the Central Registrar may, of his own motion or on the application of the board, liquidator or any creditor inquire himself or direct any person authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person within a period of two years from the date of the report of the audit, inspection or inquiry or the date of the order of winding up, as the c
(1) Notwithstanding anything contained in any other law for the time being in force, if any dispute [other than a dispute regarding disciplinary action taken by a multi-State co-operative society against its paid employee or an industrial dispute as defined in clause (k) of section 2 of the Industrial Disputes Act, 1947(14 of 1947)] touching the constitution, management or business of a multi-State co-operative society arises--
(a) among members, past members and persons claiming through members, past members and deceased members, or
(b) between a member, past members and persons claiming through a member, past member or deceased member and the multi-State co-operative society, its board or any officer, agent or employee of the multi-State co-operative society or liquidator, past or present, or
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(1) Notwithstanding anything contained in the Limitation Act, 1963(36 of 1963), but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to arbitration shall,--
(a) when the dispute relates to the recovery of any sum including interest thereon due to a multi-State co-operative society by a member thereof, be computed from the date on which such member dies or ceases to be a member of the society;
(b) save as otherwise provided in clause (c), when the dispute relates to any act or omission on the part of any of the parties referred to in clause (b) or clause (c) or clause (d) of sub-section (1) of section 84, be six years from the date on which the act or omission, with reference to which the dispute arose, took place;
(c) when the disp
(1) If the Central Registrar, after audit has been conducted under section 70 or special audit has been conducted under section 77 or an inquiry has been held under section 78 or an inspection has been made under section 79, is of opinion that the society ought to be wound up, he may, after giving the society a reasonable opportunity of making its representations by order, direct it to be wound up.
(2) The Central Registrar may, of his own motion and after giving the multi-State cooperative "society a reasonable opportunity of making its representation, make an order directing the winding up of the multi-State co-operative society,--
(a) where it is a condition of the registration of the society that the society shall consist of at least fifty members and the number of members has been reduced to less than fifty; or
Notwithstanding anything to the contrary contained elsewhere in this Act, the Central Registrar shall make an order for the winding up of a co-operative bank, if so required by the Reserve Bank in the circumstances mentioned in section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961(47 of 1961).
Where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961(47 of 1961), is wound up and the Deposit Insurance Corporation has become liable to the depositors of the insured bank under sub-section (1) of section 16of that Act, the Deposit Insurance Corporation shall be reimbursed by the liquidator or such other person in the circumstances, to the extent and in the manner provided in section 21 of that Act.
(1) Where the Central Registrar has made an order under section 86 for the winding up of a multi-State co-operative society, the Central Registrar may appoint a liquidator for the purpose and fix his remuneration.
(2) A liquidator shall, on appointment, take into his custody or under his control all the property, effects and actionable claims to which the multi-State co-operative society is or appears to be entitled and shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims and he may carry on the business of the multi-State co-operative society so far as may be necessary with the previous approval of the Central Registrar.
(3) Where an appeal is preferred under clause (1) of sub-section (1) of section 99, an order for the winding up of a multi-Stat
(1) Subject to any rules made in this behalf, the whole of the assets of a multi-State co-operative society in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 89 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise.
(2) Such liquidator shall also have power, subject to the control of the Central Registrar--
(a) to institute and defend suits and other legal proceedings on behalf of the multi-State co-operative society by the name of his office;
(b) to determine from time to time the contribution (including debts due and costs of liquidation) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representat
The surplus assets, as shown in the report of a liquidator of a multi-State cooperative society which is wound up, -
(a) may, if the bye-laws of the multi-State co-operative society specify the purpose for which surplus shall be utilised, be utilised by the Central Registrar for the said purpose, and
(b) if the bye-laws aforesaid do not specify the purpose, be divided by the Central Registrar with the previous sanction of the Central Government, amongst the members of such multi-State co-operative society in such manner as may be prescribed.
Notwithstanding anything contained in any law relating to insolvency, the contribution assessed by a liquidator shall rank next to debts due to the Central Government or a State Government or a local authority in accordance with the order of priority in insolvency proceedings.
(1) The Central Registrar may, after considering the report of the liquidator made to him under sub-section (3) of section 90, order the registration of the multi-State co-operative society to be cancelled and on such cancellation, that society shall stand dissolved.
(2) An order passed under sub-section (1) shall be communicated by registered post to the president or the chairperson, as the case may be, of the multi-State co-operative society and to the financial institutions, if any, of which the society was a member.
Every decision or order made under section 39 or section 40 or section 83 or section 99 or section 101 shall, if not carried out,--
(a) on a certificate signed by the Central Registrar or any person authorised by him in writing in this behalf, be deemed to be a decree of a civil court and shall be executed in the same manner as if it were a decree of such court and such decree shall be executed by the Central Registrar or any person authorised by him in writing in this behalf, by attachment and sale or sale without attachment of any property of the person or a multi-State co-operative society against whom the decision or order has been made; or
(b) where the decision or order provides for the recovery of money, be executed according to law for the time being in force for the recovery of arrears of land revenue:
Every order made by the liquidator under section 90 shall be executed according to the law for the time being in force for the recovery of arrears of land revenue.
(1) Where the arbitrator is satisfied that a party to any reference made to him under section 84 with intent to defeat or delay the execution of any decision that may be passed thereon is about to--
(a) dispose of the whole or any part of the property; or
(b) remove the whole or any part of the property from its existing precincts,
the arbitrator may, unless adequate security is furnished, direct conditional attachment of the said property or such part thereof as he deems necessary.
(2) The attachment under sub-section (1) shall be executed by a civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such order.
The Central Registrar or the arbitrator or any person authorised by him in writing in this behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be a civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963(36 of 1963).
(1) All sums due from a multi-State co-operative society, or from an officer or member or past member of a multi-State co-operative society, to the Central Government or a State Government, including any cost awarded to the Central Government or the State Government, as the case may be, under any provision of this Act, may, on a certificate issued by the Central Registrar in this behalf, be recovered in the same manner as arrears of land revenue as first charge on the assets of such society or officer or member, as the case may be.
(2) Sums due from a multi-State co-operative society to the Central Government or a State Government and recoverable under sub-section (1) may be recovered firstly from the property of the society and secondly from the members, past members or the estates of deceased members, subject to the limit of their liability:
(1) Subject to the provisions of section 100, an appeal shall lie under this section against--
(a) an order made by the Central Registrar under sub-section (5) of section 7 refusing to register a multi-State co-operative society;
(b) an order made by the Central Registrar under sub-section (9) of section 11 refusing to register an amendment of the bye-laws of a multi-State co-operative society;
(c) a decision of a multi-State co-operative society refusing or deemed to be refusing under sub-section (4) of section 25 to admit any person as a member of the society who is otherwise duly qualified for membership under the bye-laws of the society;
(d) an order made by the Central Registrar under section 81 apportioning the costs of an inquiry held under s
Notwithstanding anything contained in this Act, where, with the previous sanction in writing of, or on requisition by, the Reserve Bank, a co-operative bank--
(a) is being wound up; or
(b) in respect of which a scheme of amalgamation or reorganisation is given effect to,
no appeal there against shall lie or be permissible, and the sanction or requisition of the Reserve Bank shall not be liable to be called in question.
(1) The appellate authority referred to in section 99, may, on the application of any party, review its own order in any case and pass in reference thereto such order as it thinks fit:
Provided that no such application shall be entertained unless the appellate authority is satisfied that there has been a discovery of new and important matter or evidence which after exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when the order was made or that there has been some mistake or error apparent on the face of the record or for any other sufficient reason:
Provided further that no such order shall be made under this sub-section unless notice has been given to all interested parties and they have been afforded a reasonable opportunity of being heard.
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Where an appeal is made under section 99, the appellate authority may, in order to prevent the ends of justice being defeated, make such interlocutory orders, including an order of stay pending the decision of the appeal as such authority may deem fit.
(1) Where, by virtue of the provisions of Part II of the State Reorganisation Act, 1956(37 of 1956) or any other enactment relating to reorganisation of States, any co-operative society which immediately before the day on which the reorganisation takes place, had its objects confined to one State becomes, as from that day, a multi-State co-operative society, it shall be deemed to be a multi-State co-operative society registered under the corresponding provisions of this Act and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, continue to be in force until altered or rescinded.
(2) If it appears to the Central Registrar or any officer authorised in this behalf by the Central Government (hereafter in this section referred to as the authorised officer) that it is necessary or expedient to reconstitute or reorganise any society
(1) A multi-State co-operative society or an officer or member thereof wilfully making a false return or furnishing false information, or any person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Act, or wilfully not furnishing any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which shall not be less than two thousand rupees and which may extend to ten thousand rupees.
(2) Any employer who, without sufficient cause, fails to pay to a multi-State cooperative society the amount deducted by him under section 60 within a period of fourteen days from the date on which such deduction is made shall, without prejudice to any action that may be taken against him under any other law for the time being in force, be pun
(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) No prosecution for offences under section 104 shall be instituted except on a complaint filed in writing by a member of a multi-State co-operative society or by the Central Registrar in the competent court.
Every multi-State co-operative society shall keep a copy of the rules and its bye-laws and also a list of its members, open to inspection free of charge at all resonable times, at the registered address of the society.
(1) The register of members commencing from the date of the registration of multi-State co-operative society, the index of members, the register of debenture holders, and copies of all annual returns prepared together with the copies of certificates and documents, shall be kept at the registered office of the multi-State co-operative society.
(2) The registers, indexes, returns and copies of certificates and other documents referred to in sub-section (1) shall be open during business hours (subject to such reasonable restrictions, as the multi-State co-operative society may impose, so that not less than two hours in each day are allowed for inspection) to the inspection--
(a) of any member or debenture holder, without fee; and
(b) of any other person, on payment of such sum as may be prescribe
(1) The books of account and other books and papers of every multi-State cooperative society shall be open to inspection during business hours--
(i) by the Central Registrar, or
(ii) by such officer of the Government as may be authorised by the Central Government in this behalf:
Provided that such inspection may be made without giving any previous notice to that society or any officer thereof;
(iii) by the members of the multi-State co-operative society.
(2) it shall be the duty of every director, other officer or employee of the multi-State cooperative society to produce to the person making inspection under sub-section (1), all such books of account and other books and papers of the multi-State co-opera
At every annual general meeting of a mufti-State co-operative society, the board shall lay before the multi-State co-operative society--
(a) a balance-sheet as at the end of every co-operative year; and
(b) a profit and loss account for that year.
(1) Every multi-State co-operative society shall cause minutes of all proceedings of every general meeting and of all proceedings of every meeting of its board or of every committee of the board, to be kept by making within thirty days of the conclusion of every such meeting concerned, entries thereof in books kept for that purpose with their pages consecutively numbered.
(2) Each page of every such book shall be initialed or signed and the last page of the record of proceedings of each meeting in such books shall be dated and signed--
(a) in the case of minutes of proceedings of a meeting of the board or of a committee thereof, by the chairperson of the said meeting or the chairperson of the next succeeding meeting;
(b) in the case of minutes of proceedings of a general meeting, by the chairp
Minutes of meetings kept in accordance with the provisions of section 110 shall be evidence of the proceedings recorded therein.
Where minutes of the proceedings of any general meeting of the multi-State cooperative society or of any meeting of its board or a committee of the board have been kept in accordance with the provisions of section 110, then, until the contrary is proved, the meeting shall be deemed to have been duly called and held, and all proceedings thereat to have duly taken place, and in particular, all appointments of directors or liquidators made at the meeting shall be deemed to be valid.
The books containing the minutes of the proceedings of any general meeting of a multi-State co-operative society shall--
(a) be kept at the registered office of that society, and
(b) be open, during business hours, to the inspection of any member of that society.
Any person appointed as liquidator under the provisions of this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code1860 (45 of 1860).
No suit shall be instituted against a multi-State co-operative society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of ninety days next after notice in writing has been delivered to the Central Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left,
(1) If the Central Government is satisfied that any multi-State co-operative society should be designated as a national co-operative society or any national co-operative society specified in the Second Schedule should be omitted from the said Schedule, it may, by notification, amend the said Schedule so as to include therein such multi-State cooperative society or exclude therefrom such national co-operative society, and thereupon the said Schedule shall be deemed to have been amended accordingly.
(2) A copy of every notification under sub section (1) shall be laid before each House of Parliament as soon as may be after it is made.
(1) Save as otherwise provided in this Act, no court shall have jurisdiction in respect of--
(a) the registration of a multi-State co-operative society or its bye-laws or of an amendment of the bye-laws;
(b) any matter concerning the winding up and the dissolution of a multi-State co-operative society.
(2) While a multi-State co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the liquidator or against the society or any member thereof, except by leave of the Central Registrar and subject to such terms and conditions as he may impose.
(3) Save as otherwise provided in this Act, no decision or order made under this Act shall be questioned in
Section 117 of the Multi-State Co-Operative Societies Act, 2002, primarily deals with the jurisdictional limitations of courts concerning matters related to the registration, winding up, and dissolution of multi-State cooperative societies. It aims to delineate the scope of judicial authority to ensure that certain administrative and statutory functions are exclusively handled by designated authorities, notably the Central Registrar.
Note: The analysis is based on the provided sources, emphasizing the jurisdictional limitations, role of administrative authorities, and procedural safeguards under Section 117 of the Multi-State Co-operative Societies Act, 2002.
No suit, prosecution or other legal proceedings shall lie against the Central Registrar or, any person subordinate to him or acting on his authority or against any other person, in respect of anything in good faith done or purporting to have been done under this Act.
Notwithstanding anything contained to the contrary in any law relating to cooperative societies in force in a State, a multi-State co-operative society, not being a cooperative bank, may open branches or places of business in any place in India.
Every year within six months of the closure of the accounting year every multi-State co-operative society shall file the following returns with the Central Registrar, namely:--
(a) annual report of the activities;
(b) audited statements of accounts;
(c) plan for surplus disposal as approved by the general body;
(d) list of amendments to the bye-laws of the multi-State co-operative society;
(e) declaration regarding date of holding of general body meeting and conduct of elections where due;
(f) any other information required by the Central Registrar in pursuance of any of the provisions of this Act.
(1) The provisions of the Companies Act, 1956(1 of 1956) and the Monopolies and Restrictive Trade Practices Act, 1969(54 of 1969) shall not apply to the multi-State co-operative societies.
(2) The multi-State co-operative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices as defined in the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969).
If the Central Government is satisfied that in the public interest or for the purposes of securing proper implementation of co-operative production and other developmental programmes approved or undertaken by the Central Government or to secure proper management of the business of the specified multi-State co-operative societies generally or for preventing the affairs of such society being conducted in a manner detrimental to the interests of the members, any depositors or creditors thereof, it is necessary to issue directions to any class of specified multi-State co-operative societies generally or to any specified multi-State co-operative society or societies in particular, the Central Government may issue directions to it or to them, from time to time, and all such specified multi-State co-operative society or the societies concerned, as the case may be, shall be bound to comply with such directions.
(1) If in the opinion of the Central Government, the board of any specified multi-State co-operative society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or has committed any act which is prejudicial to the interests of the society or its members, or has omitted or failed to comply with any directions given to it under section 122 or that there is a stalemate in the constitution or functions of the board, the Central Government may, after giving the board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, remove the board and appoint one or more administrators, who need not be members of the society, to manage the affairs of the society for such period not exceeding six months, as may be specified in the order which period may, at the discretion of the Central Government, be
(1) The Central Government may, by notification, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rates may provide for all or any of the following matters, namely:--
(a) the form to be used, the particulars to be given and the conditions to be complied with in making of applications under section 6 for the registration of a multi-State co-operative society and the procedure in the matter of such applications;
(b) the matters in respect of which a multi-State co-operative society may make bye-laws under sub-section (2) of section 10;
(c) the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub-section (
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order-published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
(1) The Multi-State Co-operative Societies Act, 1984(51 of 1984) is hereby repealed.
(2) Without prejudice to the provisions contained in the General Clauses Act, 1897(10 of 1897) with respect to repeals, any notification, rule, order, requirement, registration, certificate, notice, decision, direction, approval, authorisation, consent, application, request or thing made, issued, given or done under the Multi-State Co-operative Societies Act, 1984 (51 of 1984)shall, if in force at the commencement of this Act, continue to be in force and have effect as if made, issued, given or done under the corresponding provisions of this Act.
(3) Every multi-State co-operative society, existing immediately before the commencement of this Act which has been registered under the Co-operative Societies Act, 1912(2 of 1912) or under any other Act relatin
THE FIRST SCHEDULE
[See section 3(g)]
Co-Operative Principles
1. Voluntary and Open Membership.---Co-operatives are voluntary organisations, open to all persons capable of using their services and willing to accept the responsibilities of membership, without discrimination on bases of gender, social inequality, racial, political ideologies or religious consideration.
2. Democratic Member Control.--Co-operatives are democratic organisations con-trolled by their members, who actively participate in setting their policies and decision making. Elected representatives of these co-operatives are responsible and accountable to their members.
3. Member's Economic Participation.--Members contribute equitably and
THE SECOND SCHEDULE
[See sections 3(r) and 116]
List Of National Co-Operative Societies
1. National Co-operative Land Development Banks Federation Limited, Mumbai.
2. National Federation of State Co-operative Banks Limited, Mumbai.
3. National Co-operative Union of India Limited, New Delhi.
4. National Agricultural Co-operative Marketing Federation of India Limited, New Delhi.
5. National Co-operative Consumer's Federation of India Limited, New Delhi.
6. National Federation of Co-operative Sugar Factories Limited, New Delhi.
7.
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