TAMIL NADU CO-OPERATIVE SOCIETIES RULES, 1988
(1) These Rules may be called The Tamil Nadu Co-operative Societies Rules, 1988.
(2) They shall come into force on the date of the commencement of the Act, namely, the 13th April 1988.
In these Rules, unless the context otherwise requires,--
(a) "Act" means the Tamil Nadu Co-operative Societies Act, 1983(Tamil Nadu Act 30 of 1983);
(b) "decree" means any decree, decision, award, order or certificate obtained or passed under the Act and includes a decree or order of a Civil Court;
© "decree-holder" means any society or any person or the Government in whose favour a decree has been passed ;
(d) "default" means in respect of a loan, failure on the part of any member or person to repay to the society concerned the loan or any instalment thereof or any other amount due to the society within the time fixed for repayment or to keep any other obligation for the fulfilment of which a time limit has been specified in the bye-laws and in res
(1) Every application for the registration of a society shall be in Form No. 1.
(2) The application shall be sent by registered post with acknowledgement due or delivered in person under acknowledgement.
(1)The chief promoter may collect money towards initial share capital and entrance fees for the proposed society from the applicants and other persons who are willing to join as members of the proposed society and he shall issue receipts for the amounts so received by him.
(2) The chief promoter shall deposit all the moneys collected towards initial share capital and entrance fees in such financing bank or co-operative bank as may be approved by the Registrar in that behalf within seven days from the date of receipt of the moneys :
Provided that the chief promoter may retain such amount as may reasonably be necessary to meet the expenditure referred to in sub-rule (4).
(3) The chief promoter shall not withdraw any sum from the amount so deposited without the previous permission of the Registra
Before deciding any question under Section 7, the Registrar shall issue a notice giving an opportunity to the parties concerned to make their representations. The Registrar shall decide the question within a period of ninety days from the date of issue of the notice.
(1) The bye-laws may deal with all or any of the following matters, namely :--
(a) the name and address of the society ;
(b) the area of its operations ;
(c) the objects of the society ;
(d) the purposes for which its funds may be applied ;
(e) the qualifications for, admission to membership and the payment, if any, to be made or interest to be acquired as a condition precedent for exercising the right of membership ;
(f) the liability of the members of the society whether limited or unlimited, and if limited liability, the nature and extent of the liability of the members for the debts contracted by the society ;
(g
(1) The Registrar shall enter the particulars of the application for registration of a society on its receipt in a register to be maintained by him in Form No. 2, give a serial number to the application and issue forthwith an acknowledgement thereof in Form No. 3. If the application prima facie appears not to be in order or it does not contain the particulars required under Rule 3, the Registrar shall, within fifteen days from the date of receipt of the application in his office, pass an order refusing to register the proposed society specifying the reasons therefor in Form No. 4 and send it to the chief promoter by registered post with acknowledgement due or by personal delivery under acknowledgement.
(2) Where no order of refusal has been passed under sub-rule (1), the Registrar shall examine the application and the proposed bye-laws in order to satisfy himself that all the requi
Every society registered or deemed to have been registered shall commence working within a period of three months from the date of its registration. The Registrar may, either suo motu or on application from the President of the society, extend such period if, in the opinion of the Registrar, such extension is necessary :
Provided that the total period shall not exceed one year in the aggregate from the date of registration of the society.
Explanation.-- For the purpose of this rule, the society shall be deemed to have commenced working if, --
(i) the society has held the first general meeting after its registration and admitted members or has allotted shares; and
(ii) its board has held its first meeting.
(1) Save as otherwise provided in the Act and these rules, every amendment of bye-laws shall be made only by a resolution passed by a majority of the members present and voting at a meeting of the general body for which notice of amendment of bye-laws has been given in accordance with this rule and the bye-laws.
(2) Every such resolution shall be forwarded to the Registrar within a period of two months from the date of such meeting with an application in Form No. 9 for the registration of amendment of bye-laws, which shall be signed by the President or the Vice-President and two other members of the Board who were present at the meeting of the general body and sent to the Registrar by registered post with acknowledgement due or delivered personally under acknowledgement.
(3) On receipt of the application in Form No. 9, the Registrar shal
Where amendment of the bye-laws of a society is proposed for changing its liability from unlimited to limited under Section 5, the procedure specified in Rule 9 shall apply with the modification that the amendment shall be approved by a resolution passed by a majority of not less than two-thirds of the members present and voting at a meeting of the general body specifically called for the purpose under Section 5.
(1) The Registrar may direct amendment of bye-laws under sub-section (1) of Section 12, for the following other purposes, namely :--
(a) securing proper and efficient management of the business of any society or class or category of societies ;
(b) securing proper implementation of co-operative production or other development programme approved or undertaken by the Government;
(c) preventing the affairs of any society from being conducted in a manner detrimental to the interests of the members or the depositors or the creditors thereof.
(2) Before calling upon any society to show cause why an amendment of bye-laws shall not be made under sub-section (1) of Section 12, the Registrar shall furnish to the board of the financing bank, if any to which th
(1) Every society shall keep a copy of its registered bye-laws with all subsequent amendments thereto arranged in the order in which the amendments are registered. One copy of the registered bye-laws shall be kept in safe custody, and the other copy of the registered bye-laws shall be kept as a reference copy.
(2) Every financing bank, every federal society and every cooperative union shall also keep a register of the names and addresses of societies affiliated to them and their registered bye-laws with all subsequent amendments thereto arranged in the order in which the amendments are registered.
(3) Whenever there is any change in the address of a society, the society shall communicate a copy of the notice in that behalf to the Registrar under Section 37, to the financing bank, the federal society to which it is affiliated and to the c
For the purpose of notifying a society as a central society under of clause (9) of Section 2,--
(a) the turnover of the society including issue of loans during the preceding co-operative year or the working capital of the society at the end of the preceding co-operative year shall not be less than one crore of rupees ; and
(b) the number of members of the society at the end of the preceding co-operative year shall not be less than five thousand.
(1) After registration of a society, the Registrar shall classify and categorise the society into one or other of the following classes and categories of societies, according to the principal object provided in its bye-laws:--
Sl. Class Category
1. Agricultural Producers Marketing Society ...
2. Agro-Engineering Society ....
3. Consumer Society (i) Urban Stores
(ii) Rural Stores
(iii) Staff and Students Stores
(iv) Employees Stores
(v) Canteen and Restaurant.
4. Co-operative Union
&n
The rate of annual subscription payable to co-operative unions under subsection (2) of Section 20 shall be as follows :--
(A) District Co-operative Union Annual subscription
(i) Primary societies having jurisdiction of not more than one revenue taluk. Ten rupees for every one lakh of rupees of working capital or part thereof subject to a maximum of two thousand rupees.
(ii) Primary societies having jurisdiction of more than one revenue taluk, central societies other than cooperative training Institutes. One hundred rupees for every ten lakh of rupees of working capital or part thereof subject to a maximum of five thousand rupees.
(B) Tamil Nadu Co-operative Unions Annual subscription
(i) District Co-opera
(1) (a) The person by whom a joint meeting referred to in clause (e) of sub-section (2) of Section 13 shall be convened, shall be the person elected by a joint meeting of all the boards of the societies which have resolved to amalgamate into one society.
(b) If the boards of the societies referred to in clause (a) fail to meet and elect a person within three months from the date of despatch of the preliminary resolution by the societies or if a person is not elected for any reason, the Registrar may nominate the president of any of such societies as the person to convene the joint meeting.
(c) Notwithstanding anything contained in the bye-laws of any such society, the person so elected or nominated shall determine the date, time and place of the meeting. He shall preside over the joint meeting and in his absence, the members attendi
(1) The draft of the proposed order for amalgamation of societies under Section 14 shall, among others, specify the manner in which the board of the society resulting from such amalgamation shall be constituted and the bye-laws which such society shall follow.
(2) If any society fails, within a period of fifteen days from the date of receipt of the draft order, to communicate a copy of the draft order or gist thereof under clause (a) of sub-section (2) of Section 14, the Registrar may authorise the financing bank or the federal society or any person subordinate to him or an employee of the society concerned to communicate, within a period of fifteen days from the date of such authorisation, a copy of the draft order or gist thereof to every member and creditor of such society calling upon such member or creditor to send his objections and suggestions, if any, direct to the Registra
(1) The copy of the resolution referred to in clause (c) of sub-section (1) of Section 13 shall be signed by the President and not less than two members of the board, who were present at the meeting of the general body, and shall bear the seal of the society.
(2) The copy of the resolution referred to in clause (c) of sub-section (2) of Section 13 shall be signed by the person presiding over the joint meeting and not less than one member of the board of each society represented at such joint meeting and shall bear the seals of all the societies concerned.
(3) The copy of the resolution referred to in sub-section (3) of Section 15 shall be signed by the President of each of the societies concerned and not less than two members of the board of each such society, who were present at the meeting of the general body, and shall bear the seal o
(1) No society shall convert itself into a society of a class or category different from the one to which it belongs unless,--
(a) the principal object for which the society is registered no longer exists or the society cannot render service to its members ;
(b) the society after conversion will comply with the requirements of sound business and has reasonable chances of success; and
(c) the area of operations of the society after conversion will not overlap the area of operations of another society of the class or category into which the society is proposed to be converted, save as permitted by the Registrar.
(2) Subject to the provisions of sub-rule (1), any society may, at a meeting of its general body specially called for the purpose, of which a
(1) Every society shall keep and maintain correctly the following accounts, books and records up to date for the purpose of recording the business transacted by it, namely :--
(a) Minutes books for recording the proceedings of the board or of the meeting of the general body.
(b) Register of applications for membership containing the name and address of the applicant, the date of receipt of application, the number of shares applied for, the date of payment in the society in respect of membership and the amount paid, the date of admission and in case of refusal of admission, the date of communication of the decision refusing admission.
(c) Admission book showing the name and address of each member, the date of admission, the shares taken by him and the amount paid by him towards such shares and
(1) The Registrar may, by order in writing, direct any society to get any or all of the accounts, books and records required to be kept by it under Rule 20 written up to such date and within such time as he may direct. Where any society fails so to do, the Registrar may depute an officer subordinate to him or authorise any employee of the financing bank or of the federal society concerned to write up the accounts, books and records. In such cases, the Registrar may by order, determine with reference to the time involved in the work and the emoluments of the officer deputed or any employee of the financing bank or the federal society authorised to do it, the charges which the society concerned shall pay to the Government or the financing bank or the federal society and to direct its recovery from the society.
(2) The officer deputed or the employee of the financing bank or of the fe
Where the Registrar is satisfied that any society has not maintained the accounts, books and records required to be maintained by it under Rule 20 or prevented in any manner the officer deputed or employee of the financing bank or federal society authorised by the Registrar under sub-rule (1) of Rule 22 to write up the accounts, books and records, the Registrar may, without prejudice to any other action that may be taken under the Act and these rules, freeze such credit or other assistance as the Registrar may deem fit:
Provided that no order shall be passed by the Registrar under this rule without giving an opportunity to the society to make its representation.
(1) For the purposes of sub-section (1) of Section 47 or Section 133, a copy of any entry in a book of a society or of any document or any entry in such document shall be certified --
(a) by the chief executive, or the president of the society, if there is no chief executive and by not less than two members of the board; or
(b) where an administrator has been appointed under subsection (12) of Section 33, by such administrator; or
(c) where a Special Officer has been appointed under Section 88 or Section 89, by such Special Officer; or
(d) where a Liquidator has been appointed under subsection (1) of Section 138, by such Liquidator.
(2) Every certified copy shall be in the following form duly signed by th
(1) Every society shall prepare for each co-operative year and submit to the Registrar within a period of one month from the close of the co-operative year, --
(a) a statement showing the receipts and disbursements for the year or trial balance at the end of the year;
(b) a profit and loss account;
(c) a balance sheet; and
(d) such other statement or return as the Government may, from time to time, specify.
(2) (a) Every society shall also furnish a copy of the statements or returns submitted to the Registrar under sub-rule (1) to the financing bank and the federal society concerned simultaneously.
(b) In respect of societies affiliated to a federal society
(1) (a) Subject to the provisions of sub-rule (2), persons who are minors or of unsound mind may be admitted as members in the following societies, namely :--
(i) agricultural producers marketing societies ;
(ii) consumer societies;
(iii) credit societies other than financing banks and employees credit societies;
(iv) dairy societies;
(v) farming societies;
(vi) fisheries societies;
(vii) industrial societies;
(viii) irrigation societies; (ix) oil-seeds growers societies; (x) processing societies; and (xi) weavers societies.
(1) Every individual seeking admission as a member of any society under clause (z) of sub-section (2) of Section 21 shall make an application in Form No. 16.
(2) The application shall be sent to the society by registered post with acknowledgement due or personally handed over under acknowledgement to an officer or servant of the society authorised in this behalf by the society.
(3) Every individual seeking admission as a member of any society under clause (i) of sub-section (2) of Section 21 shall, along with the application for admission pay the value of at least one share or the first instalment of the share, where share capital is payable in instalments and also the entrance fees. Such payment may be made either by sending the required amount by money order or postal order sent by registered post with acknowledgement due or by making
Every order under clause (ii) of sub-Section (2) of Section 21 shall be passed by the Registrar within a period of ninety days from the date of information about the ineligibility of a member or from the date of receipt by him of the application, as the case may be.
(1) The financing bank or the Apex Society shall, within thirty days from the date specified in the notification issued under clause (b) of sub-section (1) of Section 21, by notice in writing, require the individual concerned or his nominee, heir or legal representative, as the case may be, to receive his share or interest in the capital and other moneys due to such individual within thirty days from the date of receipt of the notice.
(2) If the individual concerned or his nominee, heir or legal representative, as the case may be, fails to receive the share or interest in the capital and other moneys due to him within thirty days form the date of receipt of the notice under sub-rule (1), the amount representing the share or interest due to him shall forthwith be credited to a suspense account.
(1) Any person who is already a member of any one of the categories of societies specified below may become a member of any other category of societies so specified --
(i) primary agricultural service society ;
(ii) primary land development bank ; and
(iii) urban bank.
(2) Any person who is already a member of a primary agricultural service society or a primary land development bank may become a member of any one or more other societies of any one such category or both such categories, if such person owns or cultivates lands within the area of operations of the respective societies :
Provided that the total outstanding by way of borrowing from all such societies shall not exceed the individual maximum bor
(1) No individual other than an individual who is qualified for admission with reference to the principal object of the society shall be eligible for admission as a member of the society :
Provided that this rule shall not apply for admission of individuals as associate members in accordance with Rule 32 :
Provided further that every society having individual members not qualified for admission as a member with reference to the principal object of the society on the date of commencement of these rules shall, within three months thereof, issue notice to each such member requiring him to receive his share or interest in the capital of the society and other moneys due to him within thirty days from the date of receipt of such notice.
(2) If the individual concerned fails to receive his share or i
1[(1) Persons possessing the qualifications specified in sub-rule (2) may if the bye-laws so provide, be admitted as associate members in the following classes of societies, namely :--
(i) agricultural producers marketing societies ;
(ii) consumer societies;
(iii) credit societies;
(iv) dairy societies;
(v) fanning societies;
(vi) housing societies;
(vii) industrial societies (other than societies under the control of Khadi and Village Industries Board);
(viii) labour contract societies ;
(ix) oil-seeds growers societies ;
&n
The class of persons for the purpose of clause (a) of sub-section (3) of Section 23 shall be the discharged prisoners.
No question shall be decided under sub-section (4) of Section 23 without giving an opportunity to the applicant for admission or, as the case may be, the member concerned and to the society, of making his or its representations.
(1) The Registrar may of his own motion or on application, by an order in writing, direct the removal of a member of a society from such membership if in the opinion of the Registrar, such member was or has become, subject to any of the disqualification mentioned in Section 23 :
Provided that no member of a society shall be removed from such membership under this sub-rule without such member being given an opportunity of making his representations.
(2) Upon the issue of an order under sub-rule (1), the member concerned shall cease to be a member of the society.
(1) The decision of the board of a society specified in column (1) of the Table below on the application made by its member under sub-section (2) of Section 24, shall be communicated within the time limit specified in column (2) thereof.
THE TABLE
Class of society(1) Time limit(2)
(i) Agricultural producers marketing societies and consumer societies. Fifteen days from the date of receipt of the application by the society.
(ii) All other classes of societies to obtain services for which mortgage of immovable properties is not required. Thirty days from the date of receipt of the application by the society.
(iii) All other classes of societies to obtain services for which mortgage of immovable properties is
(1) On receipt of the requisition in writing under sub-section (1) of Section 25, the society shall, within a period of fifteen days from the date of receipt of the requisition in the office of the society, communicate a copy of such requisition to the member concerned calling upon him to make his representation, if any, within a period of fifteen days from the date of receipt by him of such communication.
(2) The member concerned shall also be given an opportunity of being heard at the special meeting convened for the purpose under sub-section (1) of Section 25.
No member shall be entitled to vote at any election in the society of which he is a member or be entitled to be elected or nominated to represent the society in any other society or to vote at any election in the other society if on thirty days prior to the date of election,--
(a) (i) he was in default to the society of which he is a member or any other society, for a period exceeding three months; or
(ii) a decree has been obtained against him and the decree is subsisting; or
(iii) proceedings have been initiated against him under sections 118, 119, 120 or 144 for recovery of any debts and the debt has not been fully discharged ; and
(b) where the member represents a society in any other society, if--
&nbs
No member shall be entitled to attend and participate in the meeting of the board or of the general body when a subject in which he is interested directly or indirectly is under consideration:
Provided that nothing contained in this rule shall apply to an office-bearer or a member of the board from attending and participating in the special meeting of the board called for the purpose of removing him from his office or membership of the board; or to a member of the society from attending and participating in the special meeting of the general body convened under sub-section (1) of Section 25 for expulsion of such member.
The fee payable under Section 27 for inspection of accounts shall be --
(i) five rupees for any one co-operative year to which the accounts to be inspected relate ;
(ii) three rupees for every such additional co-operative year; and
(iii) twenty-five rupees for any one member at any one such inspection:
Provided that the bye-laws may specify any fee not exceeding the rates specified in this rule.
Refund of share or interest in the capital of a member may be made before the expiry of the period of two years from the date of his taking the share or interest in the capital in the following classes of cases, namely :--
(i) where a person joins a society as a member and takes shares in the society for the purpose of obtaining loan or service and the loan or service applied for by such person is not sanctioned or refused; or
(ii) where a member takes additional shares in the society for the purpose of obtaining loan or service and the loan or service applied for by such member is not sanctioned or refused.
(1) The nomination made for the purpose of Section 30 shall be in Form No. 17 and signed by the member in the presence of at least two members of the society.
(2) The society shall enter the nomination in the nomination register.
(3) Any nomination made under this rule may be revoked at any time by the member and a fresh nomination made in a like manner.
(1) (a) Where a nomination has been made by member in accordance with Rule 42, the society shall, within ninety days from the date of knowledge of the death of the member, by notice in writing require the nominee to state within thirty days from the date of receipt of the notice whether he desires --
(i) the transfer of the share or interest of the deceased member in the capital of the society and other moneys due to the said deceased member in his name ; or
(ii) to receive the value of the share or interest of the deceased member in the capital of the society and other moneys due to the said deceased member.
(b) (i) where no nomination has been made within ninety days from the date of knowledge of death of the member, or
(ii) where the nomi
Where share or interest in the capital is repayable under any of the provisions of the Act, these Rules or the bye-laws to any member, or his nominee, heir or legal representative, the value of the share or interest in the capital shall be ascertained in the following manner, namely :--
(i) in the case of society with unlimited liability, the actual amount received by the society in respect of such share or interest in the capital from such member; and
(ii) in the case of society with limited liability, the amount arrived at by valuation based on the financial position as shown in the latest audited balance sheet of the society subject to the maximum of the actual amount not received by the society in respect of such share or interest in the capital from such member.
The shares of a society shall not be hypothecated as a security for loan.
(1) The general meeting of a society shall be held either at the premises of the society, the address of which is registered under Section 37, or at any public place at the headquarters of such society to which all the members thereof shall have access.
(2) The notice of the general meeting, whether ordinary or special, shall be sent by the society to the members by one or more of the following modes, namely :--
(a) by giving or tendering it to the member under his acknowledgement; or
(b) if the member is not found by giving or tendering it to some adult member of his family under his acknowledgement; or 1[(c) by post under certificate of posting ; or
(d) by publication in one or more local newspapers having circulation in the area of operation of t
(1) Where the area of operations of a society is more than one revenue district or where a society consists of not less than five thousand members, the bye-laws of the society may provide for the constitution of a representative general body.
(2) (a) The representative general body of a society shall consist of,--
(i) the delegate of each of the societies, if any, affiliated to it;
(ii) one representative for every fifty individual members or part thereof ; and
(iii) the members of the board of the society.
(b) The representative of individual members shall be elected from among themselves, --
(i) by the members of the branch or unit of the society, if any;
For the purposes of clause (d) of sub-section (2) of Section 32, the details of services rendered to the following near relations of any member of the board shall be placed for the consideration of the annual general meeting, namely:--
(1) Spouse (wife or husband).
(2) Father (including step-father).
(3) Mother (including step-mother).
(4) Son (including step-son).
(5) Daughter (including step-daughter).
(6) Brother (including step-brother).
(7) Sister (including step-sister).
The federal society may requisition a special general meeting under Section 32 (3) (a) (iii) or a special board meeting under Section 33 (14) (a) (iii) of any society of the same class or category affiliated to it.
2[(1) The following classes or categories of societies or scheduled co-operative societies shall be societies for the purposes of first proviso to clause (a) of subsection (1), first proviso to sub-section (2) and the proviso to sub-clause (i) of clause (b) of sub-section (4) of Section 33, namely :--
(a) agricultural producers marketing society;
(b) credit society;
(c) consumer society other than staff and students stores ;
(d) dairy society;
(e) oil-seeds growers society;
(f) agro-engineering society;
3[(g)***]
(h) housing society other than house service society ;
&n
Notwithstanding anything contained in the bye-laws of a primary society other than a scheduled co-operative society, the election of the members of the board shall be by all the members of the society entitled to vote:]
7[Provided that where there is provision in the bye-laws of any society for the formation of constituencies, otherwise than on the basis of area, the election of a member or members of the board in respect of each such constituency shall be by all the members from among themselves of that constituency only]
........................................
6 Substituted by G.O. Ms. No. 716, dated 19-8-1989.
7 Substituted by ibid.
Notwithstanding anything contained in the bye-laws of a society, the members who are not otherwise disqualified to vote at, or stand for, any election in accordance with the provisions of the Act, or these Rules, shall be eligible to vote at, or stand for, any election to the society.]
6[(1) (a) Every society shall report to the Registrar the date of expiry of the term of office of the members of the board for which elections are to be held and the number of members to be elected and the particulars of casual vacancy in the office of the members of the board which may arise within fifteen days of its occurrence.
(b) Notwithstanding anything contained in clause (a), the Registrar may, at any time, arrange for the conduct of election of members of the board of a society to fill up the existing or future vacancies.]
(2) The election of the members of the board of every society shall be conducted in the manner specified in this rule.
(3) (a) The Registrar shall appoint as many officers of the Government or officers subordinate to him as may be necessary, as election officer
The Registrar shall, on receipt of the report from the Election Officer under clause (d) of sub-rule (17) of Rule 52, appoint an officer of the Government or an officer subordinate to him to convene a meeting of the elected members of the board for co-option of such number of members from the representatives of women or Scheduled Castes and Scheduled Tribes as the case may be, as is necessary to give thirty per cent representation to women or eighteen per cent representation to Scheduled Castes and Scheduled Tribes, as the case may be, in the boards of such societies, by the elected members of the board, from among the members of the society. The officer so appointed by the Registrar shall convene the meeting of the elected members of the board and shall preside over such meeting. The co-option of members to the board shall be by a resolution passed by a majority of the elected members of the board present and voting and such
(1) (a) The Registrar shall appoint an officer of the Government or an officer subordinate to him as the Election Officer for conducting the election of office bearers of a board 1[***]. The Registrar may also appoint an alternative Election Officer for conducting the election.
(b) Where the Election Officer appointed under clause (a) is unable to attend any stage of the election owing to illness or other unavoidable reason, the alternative Election Officer, if any, appointed for the purpose shall proceed to conduct the election from the stage at which the Election Officer had left and in such cases, every reference to the Election Officer in this rule shall be construed as a reference to the alternative Election Officer.
7[(2) As soon as the members of the board have been 16[elected and co-opted], the Election Officer shall arrange
For the purpose of clause (b) of sub-section (2) of Section 26, the delegate of a society to the general body of another society shall be elected by the members of the board in the former society from among themselves by a resolution passed at a meeting of the board present and voting at the meeting.]
21 Inserted by ibid.
(1) For the purposes of item (iv) of clause (a) of sub-section (4) of Section 33, arural electric co-operative society or a producers society or a processing society shall be the other society in which the entire board including the President and Vice-President shall be nominated.
(2) The entire board including the President and Vice-President may be nominated --
(i) in the case of co-operative sugar mill, co-operative spinning mill, co-operative tea factory or rural electric co-operative society, by the Government, and
(ii) in the case of any other society to which clause (a) of subsection (4) of Section 33 applies, by the Registrar for the State.
(3) The nomination of the entire board including the President and Vice-President under clause (a) of
(1) Where the Act, these rules or the bye-laws provide for nomination by the board of a society to the board of another society, such nomination shall be made by the board of the former society by a resolution passed by a majority of the members present and voting.
(2) No person other than a member of the board of, or a delegate of, any society affiliated to any apex society or central society prescribed under sub-section (2) of Section 33 shall be nominated to the board of a scheduled co-operative society or of any society specified in subsection (4) of Section 33.
(3) Every nominee shall, notwithstanding the expiration of--
(a) his term of office as a member of the board which nominated him, or as the case may be,
(b) his term of office as a deleg
The term of office of a delegate shall be the same as the term 17[of his office as President or as a member in the board which elected him, as the case may be]:
Provided that a delegate shall, notwithstanding the expiration of 7[his term of office as President or as a member of the board which elected him, as the case may be], continue to be the delegate until his successor is elected, so however, his term of office shall not exceed three years:
Provided further that the delegate shall cease to be as such where --
(a) an Administrator is appointed under sub-section (12) of Section 33 to the society, which he represents; or
(b) a Special Officer is appointed under Section 88 or 89 to the society, which he represents; or
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(1) When the office of the President is vacant, the Vice-President shall exercise all the powers and perform all the functions of the president, until the election of a successor to the office of the President.
(2) If the President is continuously absent from the area of operations of the society or otherwise unable to exercise his powers or perform his functions for any other reason for more than ten days, it shall be open, to the board to authorise the Vice-President to exercise the powers and perform the functions of the President during such absence or Inability.
(3) When the offices of both the President and the Vice-President are vacant, or if both the President and Vice-President are continuously absent from the area of operations of the society or unable to exercise the powers or perform the functions of the President for more th
(1) The managing director, where there is no managing director, the President shall arrange to send notice of the meeting of the board together with the agenda therefor to every member of the board by one or more of the following modes, namely :--
(a) by giving or tendering it to such member under his acknowledgement; or
(b) if the member is not found, by giving or tendering it to some adult member of his family under his acknowledgement; or
(c) by post under certificate of posting.
(2) Meetings of the board shall be held at the premises of the society, the address of which is registered under Section 37 or at any other place within the area of operations of the society, to which all the members of the board shall have access.
&
The board of every scheduled co-operative society shall be constituted in the manner specified in Schedule II.
(1) A member of the board may resign his membership of the board by sending his resignation to the board and such resignation shall be placed before the next meeting of the board by the Chief Executive or the President of the society, where there is no Chief Executive.
(2) The board shall decide whether or not to accept the resignation of the member of the board and the decision of the board shall be communicated by the Chief Executive or the President, as the case may be, to the concerned member within seven days of the decision of the board but not later than sixty days from the date of receipt of the resignation letter in the office of the society.
(3) Where the decision of the board is not communicated to the concerned member within the said period of sixty days, it shall be deemed that the board has accepted the resignation on the s
(1) An elected member of the board may be removed by a resolution expressing no confidence in him passed in a special meeting of the members of the society or of the constituency which elected him.
(2) No special meeting shall be convened unless a requisition in writing signed by not less than one-fourth of the members or one hundred members, which ever is less, of the society or of the constituency which elected him, as the case may be, is presented to the Registrar.
(3) As soon as such a requisition is received, the Registrar shall communicate copy of the requisition to the member of the board concerned to make his representation, if any, within such time as may be specified by him. The Registrar shall, within two months from the date of receipt of such requisition, arrange to convene a special meeting of the members of the society or
The provision relating to the removal of an elected member of the board under Rule 61 shall, as far as may be, apply in relation to the removal of a co-opted member of the board.]
15 Inserted by G.O. Ms. No. 270, Co-operation Food and Consumers Protection, dated 5th June 1992.
(1) An elected office-bearer 19[***] may be removed by a resolution expressing no confidence in him passed in a special meeting of the board.
(2) No special meeting of the board shall be convened unless a requisition in writing signed by not less than two-third of existing members of the board of the society at the time of such requisition who are eligible to vote at elections is presented to the Registrar.
(3) As soon as such a requisition is received, the Registrar shall communicate a copy of the requisition to the office-bearer 19[***] concerned, calling upon him to make his representation, if any, within such time as may be specified by him. The Registrar shall, within thirty days from the date of receipt of such requisition arrange to convene a special meeting of the board of the society, for consideration of the resolution expressi
For the purposes of clause (a) of sub-section (1) of Section 34, the following near relations of the paid employee shall be disqualified for membership of the board, namely:--
(1) Spouse (wife or husband)
(2) Father (including step-father)
(3) Mother (including step-mother)
(4) Brother (including step-brother)
(5) Sister (including step-sister)
(6) Son (including step-son)
(7) Daughter (including step-daughter)
(8) Brothers wife, son and daughter
(9) Sisters husband, son and daughter
Nothing contained in sub-section (1) of Section 35, shall apply to any contract, sale, purchase or transaction which is in pursuance of, or in relation to a service rendered or to be rendered by a society to its members in accordance with its bye-laws and is in furtherance of the principal object of the society.
(1) A society may in its bye-laws provide for the constitution of one or more sub-committee by its board.
(2) Every sub-committee shall consist of such number of members of the board of the society, not exceeding seven, as may be specified in the bye-laws:
Provided that the President or the Vice-President and the Managing Director, if any, appointed under sub-section (7) of Section 33 shall be the members of every sub-committee.
(3) The board may delegate any of its powers, functions or duties to such sub-committee:
Provided that the board may withdraw any of its powers, functions or duties so delegated to any sub-committee at any time without notice.]
..............................................
1 S
(1) (a) Where the bye-laws of a district co-operative supply and marketing society or co-operative wholesale stores so provide, each branch or unit of the society shall have an advisory body.
(b) Where the bye-laws of a financing bank or any other society having branches or units so provide, each branch or unit of the society shall have an advisory body.
(2) (a) An advisory body shall consist of five members of the society elected from among themselves by the members of the society within the area served by the branch or unit:
Provided that in the case of a financing bank or credit society, depositors of the branch or unit shall also have right to vote at or stand for election to the advisory body as may be specified in the bye-laws.
(b) The
(1) Every delegate of one society attending the general meeting of another society shall be entitled to be paid travelling allowance to and from the place where he ordinarily resides and daily allowance by the society which he represents but he shall not be entitled to any sitting fees.
(2) Every member of the board shall be entitled to be paid by the society travelling allowance to and from his ordinary place of residence and daily allowance or sitting fees for attending the meetings of the board.
(3) Every member of the board proceeding on tour on the business of the society shall be entitled to be paid travelling allowance and daily allowance in respect of such tours by the society.
(4) Where any person has performed any journey to attend a meeting of a society and has claimed travelling an
Every declaration under clause (i) of Section 41 shall be in Form No. 26. The Society concerned shall keep a register of such declarations in Form No. 27.
(1) Every agreement under sub-section (1) of Section 48 shall be in Form No. 28. Upon the execution of such agreement, the society shall send intimation of the execution on of the agreement to the employer or the officer disbursing the salary or wages of the member who has executed the agreement and furnish the said employer or officer with a copy of such agreement.
(2) In respect of every member who had executed such agreement and in respect of whom intimation has been sent under sub-rule (1), the society may send to the employer or the officer disbursing the salary or wages of the member, a requisition in Form No. 29 every month for the recovery from the salary or wages of such member of the amount payable by the member to the society for the month and for the remittance of such amount to the society. It shall be sent at least seven clear days prior to the last working day of the
1[***]
1 Omitted by G.O. Ms. No. 82, Co-operation Food and Consumers Protection, dated 18th April 1995.
(1) Every society shall purchase commodities intended for sale directly from a society producing such commodities and where no society produces such commodities, from a producer himself:
Provided that where such commodities are not available for purchase from producers societies or producers, such commodities may be purchased from open market subject to such conditions and restrictions as may be specified by the Registrar by general or special order.
(2) Notwithstanding anything contained in sub-rule (1), every primary consumers society shall purchase goods required by it from the co-operative wholesale stores or regional distribution centre functioning in its area or consumers co-operative federation in respect of goods available with such consumers co-operative wholesale stores or regional distribution centre or consumers co-operative
(1) Where a society makes purchase of commodities or products by samples, description or specification, the chief executive shall nominate an employee of the society to maintain the sample or, as the case may be, to keep the description or specification.
(2) On receipt of commodities or products purchased by sample, description or specification, the employee of the society in charge of the sk on receiving the same shall intimate to the chief executive and the employee nominated under sub-rule (1) about the arrival of the same.
(3) Such commodities or products shall be verified with reference to the sample, description or specification in full or where the quantity purchased will not permit verification in full on a random sampling basis. Such verification shall be made jointly by the employee nominated under sub-rule (1) and another empl
3[(1) No society shall purchase any article or commodity required for its use from any person other than a society producing such article or commodity:
Provided that where no society produces any such article or commodity, such article or commodity may be purchased from any consumer society or any department or undertaking of the Government:
4[Provided further that where no such article or commodity is available for purchase in any consumer society or any department or undertaking of the Government also, such article or commodity may be purchased from the open market subject to such monetary limits and conditions as may be specified by the Registrar from time to time, in respect of a society or class or category of societies.]
5[(2) (a) No society shall entrust its printing work to any printi
(1) No society shall entrust the whole or any part of its business to any of its members or to any person or body of persons whether incorporated or not:
Provided that where the principal object of a society is production of articles or finished goods or processing of raw materials through or with the help of its members, such society may carry on its business through its members or entrust its business to its members in accordance with the specific provisions in its bye-laws:
Provided further that in the case of a society for unemployed engineering graduate, any part of its work may be entrusted by the society to its members on sub-contract basis.
(2) Notwithstanding anything contained in sub-rule (1), a society may entrust any part of its work not exceeding twenty-five per cent thereof to it
(1) No society other than a land development bank or a society the object of which is to grant long-term loans exclusively on the mortgage of immovable properties shall grant loans for a period exceeding three years:
Provided that the Registrar may, by a general or special order in writing, permit a credit society including a financial bank to grant loans for a period exceeding three years but not exceeding five years for any of the following objects, namely :--
(a) purchase of cattle and carts;
(b) constructions, buying or repairing of dwelling houses or cattle sheds or other buildings ;
(c) expenses on account of--
(i) purchase of land;
(ii) improvement to or
(1) No loan on the security of gold jewels and silverware shall be made or overdraft or discounting of bills and cheques shall be allowed to a person unless he is admitted as an associate member.
(2) The unit rate and conditions subject to which loans may be made on the security of gold jewels and silverware shall be such as the Registrar may fix. The limit up to which such loan can be granted to a depositor shall be such as may be fixed by the National Bank for Agriculture and Rural Development.
(3) No person shall be allowed overdraft or discounting facilities unless he is a depositor with the financing bank for a period of one year.
(4) The limit of such overdraft or discounting of bills shall not exceed four times the average of the deposits maintained by the depositor prior to the date of
(1) The borrowings of a society shall not exceed the maximum borrowing limit fixed in its by-laws or the limit, if any, fixed by the Registrar in respect of that society or any class or category of societies to which that society belongs, whichever is less.
(2) No society shall borrow from any source other than the Government or the financing bank except with the prior approval of the Registrar and subject to such limits and conditions as he may impose.
(1) A society may, with the previous sanction in writing of the Registrar, invest the whole or any portion of its funds in the purchase or lease of land or in the purchase, construction or remodelling of any building that may be necessary to conduct its business. The amount of the funds so invested shall be recouped on such terms as may be determined in each case by the Registrar :
Provided that this Rule shall not apply --
(a) to immovable property purchased --
(i) by a society at a sale held in execution of a decree obtained by it for the recovery of any sum due to it; or
(ii) by a financing bank at a sale held in execution of a decree obtained by a society financed by it, for the recovery of any sum due to such society or at a sale by or on behal
(1) A society may apply to the Registrar for grant of permission to invest or deposit its funds in the deposits of a banking company, if there is no branch of the financing bank or a co-operative bank to render the banking service required by it or the existing branch of the financing bank or a cooperative bank is not able to, or cannot, render the services required by it to carry on its business. The application made to the Registrar shall be in Form No. 32.
(2) The Registrar may grant permission to a society to invest or deposit its funds in the deposit of any banking company after satisfying himself that there is no branch of the financing bank or a co-operative bank available to render the banking services required by the society or an existing branch or the financing bank or a co-operative bank is not able to, or cannot, render the services required by the society to carry on
(1) A society, other than a society to which the Banking Regulations Act, 1949 (Central Act X of 1949) applies accepting deposits shall maintain fluid resources according to the following standard and form:--
A. Standard --
(i) twenty-five per cent of the amount held in fixed deposits falling due for repayment within the next thirty days ;
(ii) twenty-five per cent of the amount held in savings deposits;
(iii) twenty-five per cent of the amount held in current deposits; and
(iv) the entire amount of matured deposits (fixed, recurring and provident fund deposits) pending payment:
Provided that in respect of fixed deposits or matured deposits, which have been ple
A primary society other than a processing society may make payment to a member for work done by him as a clerk subject to approval by the general meeting in accordance with the bye-laws made in this behalf:
Provided that in no case such payment shall exceed seventy-five paise for every hundred rupees of the working capital or the business turnover, whichever is higher or part thereof, subject to a maximum of rupees two thousand and four hundred per annum :
Provided further that no such payment shall be made for the period during which there is a paid employee working in the society.
Explanation.-- For the purpose of this Rule, the working capital shall be as on the last day of the previous co-operative year.
A society with accumulated loss but working on current profit may pay honorarium to the members of the board including the President and the Vice-President at such sum as may be decided upon by the general meeting subject to the following conditions, namely :--
(1) Current profit shall be the notional net profit arrived at from the profit and loss account enclosed to the audit certificate issued by the Registrar without taking into account the accumulated loss at the end of the previous year.
(2) The aggregate of honorarium payable to all the members of the board including the President and the Vice-President shall not exceed five per cent of the current profit.
(3) The amount of honorarium payable to the President or the Vice-President shall not exceed rupees one thousand and two hundred in t
(1) Any society may, with the previous sanction of the Registrar, allow rebate on patronage to its members, in respect of any transactions other than loan transactions, with the society as a member :
Provided that no sanction is necessary for allowing cash discount:
Provided further that the Registrar shall not accord his sanction unless he is satisfied that after payment of rebate on patronage there shall be adequate net profit to pay reasonable dividend on paid up share capital of the members and also to make reasonable allocations to other funds in accordance with Section 72.
(2) The society may, and if the Registrar so directs, shall, credit a portion of, or the entire patronage rebate to, the share capital of the respective members.
No society shall incur any expenditure towards any dispute relating to, or in connection with, any election without the previous sanction of the Registrar.
(1) No society shall incur any expenditure for any purpose not directly connected with the management or business of the society:
Provided that the society may, with the prior sanction of the Registrar, incur expenditure in connection with any of the following purposes relating to the society, namely :--
(a) jubilee celebrations;
(b) inaugural functions;
(c) laying of foundation stone for buildings ;
(d) unveiling of portraits ; and
(e) such other purposes as may be notified by the Government.
(2) (a) No expenditure on jubilee celebrations shall exceed twenty-five per cent of the average net profit earned by the
9[(1) No society shall incur any expenditure on advertisement except for the development or improvement of its business:
Provided that no society shall incur any expenditure on advertisement through issue of calendars, diaries or compliments except with the prior permission of the Registrar :
Provided further that no advertisement shall be released to any newspaper or periodical which has not been in the approved list of the Government for release of Government advertisement, or to any newspaper or periodical published from outside the State of Tamil Nadu except with the prior permission of the Registrar :
Provided also that no advertisement shall be released to any souvenir or similar publication brought out by any other society or by any other person or to sponsor a supplement in any newspap
(1) No society shall, except with the previous sanction of the Registrar, use or allow to be used any of its immovable properties or premises wholly or partly, for any purpose other than its business or other co-operative activities:
Provided that no such sanction shall be granted to any society for using or allowing to be used any such immovable properties or premises or portion thereof for any political purposes.
(2) In respect of guest houses or other places intended for the use of others also, regulations for the use off and collection of charges shall be framed by the society with the approval of the Registrar.
(1) (a) No vehicle shall be purchased by the board of a society unless prior approval of the Registrar for such purchase has been obtained :
Provided that purchase of new car, jeep or van except in the case of replacement for condemned or damaged car, jeep, or van, as the case may be, shall not be made by the board of a society unless the general meeting accords its prior approval for such purchase.
(b) The board shall, before making the purchase of any vehicle, examine and satisfy itself that the vehicle proposed to be purchased is absolutely required in connection with the business of the society and that the purchase and maintenance of such vehicle shall not affect adversely the financial condition of the society.
(2) No used motor vehicle of a society shall be disposed of except with t
(1) No fresh telephone or additional telephone or extension to an existing telephone shall be installed unless it is required in connection with the business of the society and in the case of telephone connection to the residence of the President or any other officer, the general meeting accords its prior approval for such installation:
Provided that the board shall, before making such installation, examine and satisfy itself that the installation and maintenance of such telephone does not affect adversely the financial condition of the society.
(2) There shall be no subscriber trunk dialling facility in any telephone other than telephone intended for the use of the chief executive in the office. The telephone with subscriber trunk dialling facility shall be kept under lock and key and a register shall be maintained for subscriber trunk
(1) (a) Any sum to be contributed to the co-operative research and development fund (hereinafter in this rule referred to as the research and development fund) shall be remitted by the society concerned to the co-operative union of which it is a member, within one month from the date of receipt of the audit memorandum. Every district cooperative union to which any sum is remitted under this rule shall, within a period of thirty days from the date of receipt thereof, remit ninety per cent of the amount so received to the Tamil Nadu Cooperative Union to the credit of the research and development fund. The remaining ten per cent of the said amount shall be credited to the general fund of the district co-operative union concerned.
(b) The amount standing to the credit of the research and development fund with the Tamil Nadu Co-operative Union, shall be invested separately in the Ta
(1) (a) Any sum to be contributed to the Co-operative Education Fund (hereafter in this Rule referred to as the education fund) shall be remitted by the society concerned to the co-operative union of which it is a member within one month from the date of receipt of the audit memorandum. Every district co-operative union to which any sum is remitted under this rule shall, within a period of thirty days from the date of receipt thereof, remit ninety per cent of the amount so received to the Tamil Nadu Co-operative Union to the credit of the education fund. The remaining ten per cent of the said amount shall be credited to the general fund of the district co-operative union concerned.
(b) The amount standing to the credit of the education fund, with the Tamil Nadu Co-operative Union shall be invested separately in the Tamil Nadu State Co-operative Bank or in any financing bank, as
(1) The Tamil Nadu Co-operative Union may call for the details, particulars or returns concerning the collection and remittance of amounts towards the research and development fund and the education fund from the district co-operative unions.
(2) The Tamil Nadu Co-operative Union shall cause the accounts of the research and development fund or the education fund to be audited by the auditors of the Tamil Nadu Co-operative Union every year and place the audit report including financial statements relating to the funds aforesaid before the respective committee for its consideration.
(3) The Tamil Nadu Co-operative Union shall send a copy of the Audit report of the funds aforesaid along with the remarks or observations, if any, made by the respective Committee to the Government and the Registrar every year before the end of December succeed
(1) Agricultural Credit Stabilisation Fund shall not be utilised for any purpose except to enable borrowers to make postponement of repayment of loans on account of drought, floods, cyclone or other natural calamities resulting in failure of crops. This fund shall be maintained and administered in accordance with the rules made in this behalf by the Government.
(2) The State Land Development Bank shall contribute to a Failed Wells Fund ten per cent of its net profits. The Failed Wells Fund shall not be utilised for any purpose except for recouping partly or wholly the losses sustained by the borrowers on account of infructuous wells or failure of wells. This fund shall be maintained and administered in accordance with the Rules made in this behalf by the Government.
(3) The State Land Development Bank shall also contribute to a Project S
(1) A society may, subject to the provisions in this rule, pay honorarium to the members of the board including the President and Vice-President at such sum as may be decided by the general meeting and the aggregate of honorarium so payable shall not exceed ten per cent of its net profits.
(2) The amount of honorarium payable to the President or the Vice-President shall not exceed rupees two thousand and four hundred in the case of a primary society; rupees four thousand and eight hundred in the case of a central society and rupees seven thousand and two hundred in the case of an apex society.
(3) The amount of honorarium payable to a member of the board other than the President or the Vice-President shall not exceed fifty per cent of the amount of honorarium payable to the President or the Vice-President.
&nbs
Where the Government have permitted any society and the society has declared dividend at a rate exceeding fourteen per cent per annum in the paid-up value of each share, the amount of dividend in excess of fourteen per cent shall be credited to the share account of the members in the following manner, namely:--
(i) The amount equal to the value of one or more shares shall be credited to the share account of the member and the remainder which is less than the value of one share shall be kept in suspense account of the member.
(ii) The amount so kept in suspense account of a member shall be credited to share account as and when with any other amounts due to such member or with any amount remitted by him the amount equals to or exceeds the value of a share ; and
(iii) No interest or dividend shal
Any society other than a credit society may, in accordance with its bye-laws, pay bonus to its members based on the extent of business done by the members with it or the value of the services rendered by such members to the society subject to a maximum of fifty per cent of its net profits:
Provided that a society shall not utilise any portion of the bonus accruing on the business done by non-members for payment of bonus to members but shall carry the entire amount so accrued to the reserve fund or business loss reserve as may be decided by the general body.
A society, not governed by the Payment of Bonus Act, 1965 (Central Act 21 of 1965), which employs paid establishment, may pay bonus to such employees who have worked in the establishment for not less than thirty working days in the year to which the net profit relates:
Provided that a past employee shall not be entitled to receive bonus under this Rule if he was dismissed from service :
Provided further that the amount to be paid to an employee shall not exceed such amount as may be specified in its bye-laws subject to a maximum of three months basic pay or one thousand and two hundred rupees whichever is less.
(1) Every society, after appropriation under clauses firstly to seventhly of sub-section (2) of Section 72, shall contribute towards the common good fund the remainder of the net profits subject to the maximum often per cent of its net profits for being utilised on any of the charitable purposes including relief to the poor, education, medical relief and the advancement of any other object of general public utility, but excluding a purpose which relates exclusively to religious teaching or worship :
Provided that the common good fund shall not be utilised for the objects referred to in this sub-rule in respect of any sum exceeding 12[rupees ten thousand in the case of a primary society and rupees twenty-five thousand in the case of a central or an apex society] without the prior approval of the Registrar.
(2) Notwithstanding anything con
(1) The reserve fund shall belong to the society as a whole and is intended to meet unforeseen losses. It shall be indivisible and no member shall have any claim to a share in it. It may be drawn upon with the special sanction of the Registrar to meet unforeseen losses.
(2) A society shall not invest or deposit its reserve fund except in the modes mentioned in clauses (a), (b), (c) and (d) of Section 68 subject to the proviso thereunder :
Provided that when there the reserve fund of a society exceeds twenty per cent of its working capital, the excess may, with the sanction of the Registrar, be utilised in the business of the society :
Provided further that a society not being a credit society, may, with the sanction of the Registrar, utilise the whole of its reserve fund in its business:
&n
(1) On the winding up of the society, the reserve fund together with the other funds constituted by the society, in accordance with its bye-laws including the common good fund and the dividend equalisation fund shall be applied by the Liquidator to the discharge of such liabilities of the society as may remain undischarged out of the assets of the society, in the following order, namely :--
(a) the debts of the society ;
(b) the paid up share capital; and
(c) the dividend upon paid-up share capital at a rate not exceeding fourteen per cent per annum for any period or periods for which dividend has not been paid ; or such dividend upon paid-up share capital as may bring the total dividend paid to the maximum rate of fourteen per cent per annum for any period or periods for which the dividend at
(1) The chief executive of the society or where there is no chief executive, the President of the society shall prepare the financial statements and other details required for the completion of audit immediately after the close of the co-operative year of the society concerned and shall intimate in Form No. 34 to the auditor, the Registrar (Audit), the Registrar and the federal society concerned.
Explanation.-- For the purposes of this Rule and Rules 102 and 103, the expression "Registrar (Audit)" means the officer of the Government on whom the powers of a Registrar under Section 80 have been conferred.
(2) Where the financial statements and other details required for the completion of audit are not or could not be prepared within the period of three months, the Chief Executive or the President, as the case may be, shall make an applicat
(1) The audit under Section 80 shall in all cases extend back to the last date of the previous audit and shall be carried up to the last date of the co-operative year immediately preceding the audit.
(2) The Registrar (Audit) shall, where the audit is done by a person authorised by him under sub-section (1) of Section 80, obtain from such person an audit memorandum on the accounts and on every balance sheet and profit and loss account examined by him, and in the audit memorandum, the person who does the audit shall state whether in his opinion and to the best of his information and according to the explanation given to him, the said accounts give a true and fair picture --
(i) in the case of the balance sheet, of the state of the societys affairs as at the end of the co-operative year; and
(ii
(1) The Registrar (Audit) shall specify the fees payable by the different classes of societies for the audit of their accounts for each co-operative year under sub-section (6) of Section 80 as provided below :--
(a) Where the Registrar (Audit) appoints one or more persons specially or exclusively for the audit of the accounts of one or more societies, the fee payable by such society or societies shall be the entire or the proportionate cost of the staff as may be fixed by the Registrar.
(b) In respect of other societies, for the audit of whose accounts, the regular staff is employed, the Registrar (Audit) shall fix the scale of fees with the previous approval of the Government after taking into account the total cost of regular staff employed for this purpose.
(2) Every society which is subjec
(1) (a) The application made under sub-section (1) of Section 81 or of Section 82 shall state whether the inquiry or inspection or investigation is required into any specified alleged misappropriation, fraudulent retention of any money or property, breach of trust, corrupt practice, or mismanagement in relation to the society or into any particular aspect of the working of that society or whether the inquiry or inspection or investigation is required into the affairs of the society in general.
(b) the application shall state the reason for requesting the inquiry or inspection or investigation.
(c) the application shall be accompanied by a receipted challan or record to evidence payment towards the fees specified in Schedule III.
(2) (a) A creditor making an application under Section 82
The Registrar shall, in consulting the board of the financing bank under sub-section (6) of Section 88, send to the board of the financing bank, a copy of the notice of supersession issued by the Registrar and a copy of the reply, if any, to the said notice received from the board or any member of the board of the society together with the tentative conclusion arrived at by the Registrar or the gist thereof.
The Special Officer appointed under sub-section
(1) of Section 88 shall, immediately after taking charge of the management examine the defects which resulted in the supersession of the board and take steps to remedy the defects and send his report to the Registrar on the action taken by him to rectify or remedy the defects within a period of three months from the date of his appointment and periodically thereafter till the defects are completely rectified.
(2) The Special Officer appointed under sub-section (1) of Section 88 shall, immediately after taking charge of the management examine whether any paid officer or servant of the society, whether or not he is borne on a common cadre of service, was also responsible for any of the acts leading to the supersession of the board, and where there is a prima-facie evidence, he shall take such
(1) The reference to the Registrar of any dispute under sub-section (1) of Section 90 shall be in writing which shall be accompanied by, --
(a) a statement of the subject matter of the dispute referred to;
(b) a certified copy of the relevant records on which the dispute is based;
(c) a receipted challan or record to evidence payment of the fees fixed in accordance with sub-rule (11);
(d) sufficient number of copies of the application with all the enclosures for service on the defendant; and
(e) such other statement or records as may be required by the Registrar:
Provided that the original documents and records including bond or agreement on which the dispute i
(1) Every application under sub-section (1) of Section 150 by a society shall be made in Form No. 37 and shall be accompanied by a challan evidencing payment of the fee specified in Schedule III.
(2) Upon receipt of an application in Form No. 37, the Registrar shall issue a notice in Form No. 38 to the member concerned calling upon him to appear personally on the date specified in such notice or to make his written representation, if any, on or before the said date.
(3) Every certificate issued under sub-section (1) of Section 150 shall be in Form No. 39.
(1) Every petition or application to the Registrar under the provisions of the Act, these Rules or the bye-laws, in respect of which no separate procedure has been provided for, shall be accompanied by a challan or receipt evidencing payment of fees specified in Schedule III and sufficient number of copies of the petition or application with all the enclosures for service on other parties.
(2) No decision prejudicial to any person shall be taken unless such person has been given an opportunity of making his representations.
(3) (a) The decisions shall be reduced in writing and also contain an order as to costs.
(b) A copy of the decision shall be communicated free of cost by the Registrar to the parties to the petition or application by personal delivery under acknowledgement or under cer
Every application or petition under the Act, these Rules, or bye-laws specified in Schedule III shall be chargeable with the fee specified in the said Schedule in respect of such application or petition.
(1) (a) Every summons issued under the Act shall be in writing and signed by the officer issuing the same or such other person as he appoints in this behalf and sealed with the seal of such officer or other person.
(b) It may require the person summoned to appear before the said officer at a stated time and place and shall specify whether his attendance is required for the purpose of giving evidence or to produce a document, or for both the purposes; and any particular document, the production of which is required shall be described in the summons with reasonable accuracy.
(c) Any person summoned merely to produce a document shall be deemed to have complied with the summons if he causes such document to be produced instead of attending personally to produce the same.
(2) When the summons i
(1) Every notice, summons or other communication under the Act or these Rules for which no special mode of service has been specified, shall be served, --
(a) by giving or tendering it to such person under his acknowledgement; or
(b) by sending it to him by post; or
(c) if such person is not found, by giving or tendering it to some adult member of his family under his acknowledgements ; or
(d) if none of the above modes is available, by affixing it on some conspicuous part of his last known place of residence or business:
Provided that in the case of summons or notice other than a meeting notice if sent by post shall be by registered post with acknowledgement due, and in other cases under certificate of p
(1) Within ten days of receipt of the notice issued by the Registrar under sub-section (1) of Section 137, the society concerned shall call a special meeting of the general body for consideration of the notice. Seven clear days notice shall be given for such special meeting which shall be held within twenty-five days from the date of receipt of the notice under subsection (1) of Section 137. A copy of the notice issued by the Registrar under sub-section (1) of Section 137 shall be communicated to the members along with the notice issued for the special meeting, indicating therein that the members may also send their representations, if any, direct to the Registrar. The society shall send a copy of the resolution of the special meeting together with the representations, if any, on the matter to the Registrar within one month from the date of receipt of the notice from the Registrar.
Where a Liquidator has been appointed under sub-section (1) of Section 138, the following procedure shall be adopted, namely :--
(a) The appointment of Liquidator shall be notified by the Registrar in the Tamil Nadu Government Gazette.
(b) The Liquidator shall publish by such means as he may think proper a notice requiring all claims against the society to be submitted to him within two months of the publication of such notice. All liabilities recorded in the account books of such society shall be deemed ipso facto to have been duly submitted to him under this clause.
(c) The Liquidator shall after settling the assets and liabilities of the society as they stood on the date on which the order under Section 137 for its winding up was made, proceed next to determine the contribution to be made b
(1) Where the decision, award or order is for delivery of possession to a society of land or other immovable property resumed by it for breach of the conditions of assignment or allotment of the land or other immovable property, the society may apply to the Registrar within whose jurisdiction the land or other immovable property is situated for enforcement of the decision, award or order. On such application, such Registrar or the Sale Officer empowered by him shall deliver possession of the land or other immovable property to the society or to such person as it may appoint to receive delivery on its behalf, by removing, if necessary, any person bound by the decision, award or order who refuses to vacate the land or other immovable property.
(2) The fees payable for executing processes issued by such Registrar shall be at the rates specified in Schedule IV.
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(1) Every decree holder seeking recovery under Section 143 of any sum due under a decree shall apply to the Registrar within whose jurisdiction the cause of action arose in Form No. 41 which shall be signed by the decree holder.
(2) Every decree holder shall deposit such sum towards the fees payable for the processes of execution as specified by the Registrar.
(1) The fees chargeable for the processes of execution shall be at the rates specified in Schedule IV.
(2) Where, in connection with the proceedings on an application under Section 143, any person requires the issue of any process, or objects to any process issued, or proposed to be issued, or requires the adjournment of any proceedings or objects to any order passed, he shall pay such fee at the rate specified in Schedule IV.
(3) Persons employed in serving notices or other processes under these Rules shall be entitled to batta at such rates as may from time to time be fixed by the Registrar.
(1) Where a judgment-debtor dies before the decree has been fully satisfied, an application under sub-rule (1) of Rule 116 may be made against the legal representative of the deceased judgment-debtor and thereupon all the provisions of these Rules shall, save as otherwise provided in this Rule, apply as if such legal representative were the judgment-debtor.
(2) Where the decree is executed against such legal representative, he shall be liable only to the extent of the property of the deceased judgment-debtor which has come to his hands and has not been duly disposed of and for the purpose of ascertaining such liability, the Registrar executing the decree may, of his own motion or on the application of the decree-holder, compel such legal representative to produce such accounts as he thinks fit.
(3) Property in the hands of a son or other
(1) On receipt of the application under sub-rule (1) of Rule 116, the Registrar shall verify the correctness and genuineness of the particulars set forth in the application with the records, if any, in his office and prepare a demand notice in writing in duplicate in the form specified by the Registrar setting forth the name of the judgment-debtor, the amount due and forward it to a Sale Officer.
(2) If the judgment-debtor resides or the property to be proceeded against is situated in a district other than that in which the cause of action arose, the Registrar to whom the application is made shall forward the application and the demand notice to the Registrar, within whose jurisdiction the judgment-debtor resides or such property is situated.
(3) Where the application is for the recovery of any amount due under a decree or an order of a
(1) The decree-holder may indicate in his application made under sub-rule (1) of Rule 116, whether he wishes to proceed in the first instance, against the immovable property mortgaged to the decree-holder or any other immovable property or to secure the attachment of movable property.
(2) Unless the decree-holder has indicated in his application, the order in which the property of the judgment-debtor shall be proceeded against, execution shall, ordinarily, be taken in the following manner, namely:--
(i) movable property of the judgment-debtor shall be first proceeded against, but nothing in this clause shall preclude the immovable property being proceeded against simultaneously in case of necessity.
(ii) If there is no movable property, or if the sale proceeds of the movable property or proper
In the seizure and sale of movable property, the following rules shall be observed :--
(1) (a) The Sale Officer shall, after giving previous notice to the decree-holder, proceed to the place where the judgment-debtor resides or the property to be distrained is situated and serve the demand notice upon the judgment-debtor if he is present. If the amount due together with the interest and all expenses be not at once paid, the Sale Officer shall make the distress and shall immediately deliver to the judgment-debtor a list or inventory of the property distrained and an intimation of the place, day and hour at which the distrained property will be brought to sale if the amounts due are not previously discharged.
(b) If the judgment-debtor is absent, the Sale Officer shall serve the demand notice on some adult member of his family, or on h
Where the movable property to be attached is the salary or allowance or wages of a public officer or a servant of a railway administration or a local authority or a co-operative society or a Firm or a Company, the Registrar may, on receiving a report from the Sale Officer, order that the amount shall, subject to the provisions of Section 60 of the Code of Civil Procedure, 1908 (Central Act V of 1908), be withheld from such salary or allowances or wages either in one payment or by monthly instalments as the said Registrar may direct and upon notice of the order, the officer or other person whose duty it is to disburse such salary or allowances or wages, shall withhold and remit to the Sale Officer, the amount due under the order or, the monthly instalment, as the case may be.
(1) Where the property to be attached consists of the share or interest of the judgment-debtor in immovable property belonging to him and another as co-owners, the attachment shall be made by a notice to judgment-debtor prohibiting him from transferring the share or interest or charging it in any way.
(2) Where the property to be attached is a negotiable instrument not deposited in a Court nor in the custody of a public officer, the attachment shall be made by the actual seizure and the instrument shall be brought to the office of the Registrar ordering the attachment and be held subject to his further orders.
(3) Where the property to be attached is in the custody of any Court or public officer, the attachment shall be made by a notice to such Court or officer, requesting that such property and any interest or dividend becoming payable
(1) Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge, the attachment shall be made,--
(a) if the decree sought to be attached was passed by a Registrar or by any person to whom a dispute was transferred by a Registrar under Section 90 or by an Arbitrator or Arbitrators within the local limits of the jurisdiction of a Registrar, then by the order of the Registrar concerned.
(b) if the decree sought to be attached was passed by a Court and has not been sent for execution to any other Court, then by the issue to such Court of a notice by the Registrar concerned, requesting such Court to stay the execution of its decree unless and until --
(i) the Registrar aforesaid cancels the notice ; or
&
(1) Where the movable property to be attached is --
(a) a debt due to the judgment-debtor in question ; or
(b) a share in the capital of a corporation including a bank or a deposit invested therein ; or
(c) other movable property not in the possession of the judgment-debtor except property deposited in or in the custody of any Civil Court;
the attachment shall be made by a written order signed by the Registrar prohibiting--
(i) in the case of the debt, the creditor from recovering the debt and the debtors from making payment thereof;
(ii) in the case of the share or deposit, the person in whose name the share or the deposit may be standing from withdrawing or t
(1) Immovable property shall not be sold in execution of a decree unless such property has been previously attached :
Provided that where the decree has been obtained on the basis of a mortgage of such property, it shall not be necessary to attach it.
(2) In the attachment and sale or sale without attachment of immovable property, the following rules shall be observed :--
(a) The application presented under Rule 116 shall contain a description of the immovable property to be proceeded against, sufficient for its identification and in case such property can be identified by boundaries or numbers in record of settlement or survey, the specification of such boundaries or numbers and the specification of the judgment-debtors share or interest in such property to the best of the belief of the decre
(1) Where immovable property has been sold by the Sale Officer, any person either owning such property or holding an interest therein by virtue of a title acquired before such sale, may apply to have the sale set aside on his depositing with the Registrar,--
(a) for payment to the purchaser, a sum equal to five per cent of the purchase money and
(b) for payment to the decree-holder, the amount of arrears specified in the proclamation of sale as that for the recovery of which the sale ordered together with interest thereon and the expenses of attachment, if any, and sale and other costs due in respect of such amount less any amount which may, since the date of such proclamation have been received by such decree-holder.
(2) If such deposit and application are made within thirty days from the dat
(1) At any time within thirty days from the date of the sale of immovable property, the decree-holder or any person entitled to a share in rateable distribution of the assets or whose interests are affected by the sale, may apply to the Registrar to set aside the sale, on the ground of a material irregularity or mistake or fraud in publishing or conducting it:
Provided that no sale shall be set aside on the ground aforesaid unless the said Registrar is satisfied that the applicant has sustained substantial injury by reason of such irregularity or mistake or fraud.
(2) If the application be allowed, the said Registrar shall set aside the sale and may direct a fresh one.
(1) On the expiration of thirty days from the date of sale, if no application to have the sale set aside is made under Rule 127 or under sub-rule (1) of Rule 128 or if such application has been made and rejected, the said Registrar shall make an order confirming the sale :
Provided that if he shall have reason to think that the sale ought to be set aside notwithstanding that no such application has been made or on grounds other than those alleged in any application which has been made and rejected, he may, after recording his reasons in writing, set aside the sale.
(2) Whenever the sale of any immovable property is not so confirmed or is set aside, the deposit or the purchase money, as the case may be, shall be returned to the purchaser.
(3) After the confirmation of any such sale, the said Re
(1) Where any lawful purchaser of immovable property is resisted and prevented by any person other than a person not being the judgment-debtor, claiming in good faith to be in possession of the property on his own account from obtaining possession of the immovable property purchased, any Court of competent jurisdiction on application and production of the certificate of sale provided for by Rule 129, shall cause the proper process to be issued for the purpose of putting such purchaser in possession in the same manner as if the immovable property had been purchased by the purchaser at a public auction in execution of a decree of a Civil Court.
(2) The period of limitation for the purposes of sub-rule (1) shall be regulated by Article 134 of the Schedule to Limitation Act, 1963 (Central Act 36 of 1963) as if the purchase of immovable property is at a public auction sale in execution
(1) Where an immovable property purchased by a society as decree-holder is in its possession the society may, with the prior approval of the Registrar and subject to such conditions as may be imposed by him, reconvey such property to the original owner on an application in writing made in this behalf.
(2) Along with the application for reconveyance of the property, the original owner shall deposit with the society --
(a) the amount at which the property was purchased by the society including stamp duty and other charges paid upto the confirmation of sale;
(b) the interest on the above mentioned amount at the maximum lending rate in the case of a credit society or at a rate not less than the maximum borrowing rate, in the case of any other society, from the date of purchase till the date of dep
Where an attachment has been made under these Rules, any private transfer or delivery of the attached property or of any interest therein and any payment to the judgment-debtor of any debt, dividend or other moneys contrary to such attachment shall be void as against all claims enforceable under the attachment.
Explanation.-- For the purposes of this Rule, claims enforceable under an attachment include claims for the rateable distribution of assets under Rule 137.
Where the cost and charges incurred in connection with attachment and sale of movable property or the attachment and sale or sale without attachment of immovable property under these rules exceeds the amount deposited by the decree-holder under Rule 116 towards the fees chargeable for the processes of execution, such excess shall be deducted from the sale proceeds of the property sold or the moneys paid by the judgment-debtor, as the case may be, and the balance shall be made available to the decree-holders.
Every person making a payment towards any money due for the recovery of which application has been made under these Rules shall be entitled to a receipt for the amount signed by the Sale Officer or other officer empowered by the Registrar in that behalf. Such receipt shall state the name of the person making the payment and the subject matter in respect of which the payment is made.
(1) Where any claim is preferred to, or any objection is made to, the attachment of any property attached under these Rules on the ground that such property is not liable to such attachment, the Sale Officer shall investigate the claim or objection and dispose of it on merits :
Provided that no such investigation shall be made when the Sale Officer considers that the claim or objection is frivolous.
(2) Where the property to which the claim or objection relates has been advertised for sale, the Sale Officer may postpone the sale pending the investigation of the claim or objection.
(3) Where a claim or an objection is preferred, the party, against whom an order is made by the Sale Officer, may institute a suit within six months from the date of the order to establish the right which he claims t
Where any property has been attached in execution of a decree, but by reason of the decree-holders default, the Registrar is unable to proceed further with the application for execution, he shall either dismiss the application or for any sufficient reason adjourn the proceedings to a future date. Upon the dismissal of such application, the attachment shall cease.
(1) Where the Sale Officer attaches or has attached under these rules any property, not in the custody of any Court, which is already under attachment made in execution of a decree of any Court, such Court shall receive and realise such property and shall determine claims thereto and any objections to the attachment thereof:
Provided that where the property is under attachment in the execution of decree of more Courts than one, the Court which shall receive or realise such property shall determine any claim thereto and any objection to the attachment thereof shall be the Court of the highest grade, or where there is no difference in grade between such Courts, the Court under whose decree the property was first attached.
(2) Where assets are held by the Sale Officer and before the receipt of such assets, demand notice in pursuance of appl
Save as otherwise provided under the Act or under these Rules, every notice of process shall be in writing and authenticated by the seal, if any, of the Sale Officer by whom it is issued and shall be signed by such officer or by any person authorised by him in this behalf.
The provisions of Rules 115 to 137 shall apply in regard to the recovery of any sum due to the Government from a society or from an officer, former officer, member or past or deceased member of a society in pursuance of a demand issued by the Registrar or by any authority competent to issue such demand including any costs awarded to the Government in proceedings under the Act as if the Government were a decree-holder and the society or officer, former officer, member or past or deceased member of a society, as the case may be, was a judgment-debtor subject to the following modifications, namely :--
(a) The Registrar within whose jurisdiction the cause of action arose may, of his own motion, take any steps which he may deem suitable in the matter of such recovery in accordance with the provisions of these rules and without any applications having been made to him in that behalf unde
(1) Attachment of property under Section 167 shall be made in the manner provided in the foregoing Rules of this Chapter.
(2) Where a claim is preferred to property attached under sub-rule (1), such claim shall be investigated in the manner and by the authority specified in the foregoing rules of this Chapter.
(3) Where a direction is made for the attachment of any property under sub-rule (1), the Registrar shall order the attachment to be withdrawn,--
(a) when the party concerned furnishes the security required together with the security for the cost of the attachment; or
(b) when the Registrar makes an order under sub-section (1) of Section 167 that the party concerned need not repay or restore any money or property or contribute any sum to the as
(1) Every application under Section 144 shall be in such form as may be specified by the Registrar and shall be signed by a person authorised by the board.
(2) No application under sub-rule (1) shall be received unless the society making the application deposits, such sum towards the fees chargeable for the processes of execution as specified by the Registrar.
(3) On the receipt of the application referred to in sub-rule (1), the Registrar shall, if he is satisfied that the particulars set forth are correct, prepare a demand notice in duplicate in the form specified by the Registrar, setting forth the name of the member, past member, or the nominee, heir or legal representative of the deceased member, the amount due from him together with interest and cost, if any, and the description of the property or interest in the property for the s
(1) (a) Any property required by the society to be deposited with it or entrusted to its custody under sub-section (3) of Section 40 shall, subject to the provisions of these rules, be delivered to an officer of the society authorised by the board in this behalf after preparing an inventory of such property and such inventory shall be signed by the member, past member, or the nominee, heir or legal representative of the deceased member and such officer of the society.
(b) The society may, at the instance of the member, past member or the nominee, heir or legal representative of the deceased member or any person claiming an interest in such property, leave the property in-charge of the member, past member, or the nominee, heir or legal representative of the deceased member or person, as the case may be, if he enters into a bond in the form specified by the Registrar with one or
(1) The financing bank may, with the prior approval of the Registrar, publish the name of the member or past or deceased member of the society affiliated to it, who is in default to the said society in respect of any loan or loans taken by him for a period exceeding six months:
Provided that if the outstanding debt due by any member or past or deceased member does not exceed ten thousand rupees in respect of any Primary Land Development Bank or five thousand rupees in respect of any other credit society, the name of such member or past or deceased member shall not be published :
Provided further that where the list is published with reference to any particular amount due as on the particular date, the list shall contain the names of every member from whom any debt or outstanding demand is due in excess of the said amount as on the said d
The time limit within which action for the recovery of debt due by a member under sub-section (1) of Section 149 shall be ninety days from the date on which the debt has fallen due.
No person shall be eligible for appointment as Managing Director under subsection (7) of Section 33 of the society specified in column (1) of the Table below unless he possesses the qualifications specified in column (2) thereof.
THE TABLE
SOCIETY(1) QUALIFICATIONS(2)
APEX SOCIETIES
1. The Tamil Nadu State Cooperative Bank Limited, 1[Chennai],
A Member of the Indian Administrative service or an officer
2. The Tamil Nadu Co-operative State Land Development Bank Limited, 1[Chennai].
of the Co-operative Department not below the rank of a Joint Registrar of Co-operative Societies or an
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(1) The Managing Director shall be the Chief Executive of the society. He shall carry into effect the resolutions of the board which are in accordance with the Act, these Rules and the bye-laws and which are not against the interest of the society. He shall refer all other resolutions with details as to how, in his opinion, they are not in accordance with the Act, these Rules or the bye-laws or are against the interest of the society, to the Government in the case of an apex society and to the Registrar in the case of any other society.
(2) The Managing Director shall have an overall control of the day-to-day administration of the society and all correspondence shall be dealt with by him.
(3) The Managing Director may, with the approval of the board, institute or defend any suit or other legal proceedings on behalf of the society.
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Every credit society with a working capital of not less than rupees two lakhs, every housing society with a working capital of not less than rupees five lakhs and every other society with an annual production or purchase or sales or business turnover of not less than rupees five lakhs, shall appoint a paid secretary:
Provided that a society which has appointed a paid secretary under this rule shall not, without the previous sanction of the Registrar, dispense with the services of such paid secretary, notwithstanding that the working capital or the annual production or purchase or sales or business turnover fall below the limits specified in this rule :
Provided further that nothing contained in this rule shall apply to any society to which a Managing Director is appointed under subsection (7) of Section 33.
(1) No society shall appoint any person as its paid employee in any category of service unless such person furnishes security to the extent and in the form specified by the Registrar.
(2) No society shall retain in service any paid employee if he does not furnish security within a period of three months from the date of order of the Registrar specifying the extent and the form of security under sub-rule (1).
(3) Security deposits received by a society from its employee shall not form part of the assets of the society and shall be invested separately in the financing bank or a co-operative bank approved by the Registrar in this behalf by general or special order.
(4) Notwithstanding anything contained in sub-rule (3), every society shall have a lien on the security deposits received from its em
(1) Every society shall, taking into account its nature of business, volume of transaction and financial position, adopt, 6[with the prior approval of the Government], a Special bye-law covering the service conditions of its employees. The special bye-law shall, inter alia, prescribe the following :
(i) Cadre strength and classification of various categories of posts and the qualifications required thereof for each such post.
(ii) The method of recruitment for each such post.
(iii) The scale of pay and allowances for each such post.
(iv) Conditions of probation for each such post.
(v) Duties and responsibilities for each such post.
(vi) Leave of various kinds a
(1) The Recruitment Bureau for the State constituted under Section 74 shall consist of--
(a) the President of the Tamil Nadu State Co-operative Bank, 1[Chennai], who shall be its Chairman ;
(b) the Registrar of Co-operative Societies, 1[Chennai]; who shall be its Vice-Chairman ;
(c) the president or managing director of two other apex societies;
(d) an officer nominated by the Regional Officer of the National Bank for Agriculture and Rural Development, 1[Chennai]; and
(e) two other officers of the Government exercising the powers of the Registrar for the State.
(2) The Recruitment Bureau for a revenue district constituted under Section 74 shall consist of--
(1) Every society shall report to the Recruitment Bureau concerned every vacancy anticipated in the posts of paid officers or servants as are specified in sub-rule (4) or sub-rule (5) of Rule 150, that may arise in the society together with all the relevant particulars relating to the said post ninety days prior to the date on which such vacancy will arise. Every society shall also report to the Recruitment Bureau concerned every vacancy not anticipated in such posts immediately and in any case within a period not exceeding fifteen days of its occurrence together with all the relevant particulars thereto.
(2) On receipt of the report under sub-rule (1), the Recruitment Bureau shall call for from the societies, applications from their employees who are possessing the qualifications for the posts and shall, unless the Government have accorded special sanction for recruitment, by adve
(1) Every employee deemed under sub-section (3) of Section 75 to have been absorbed in the common cadre of service shall, within a period of thirty days from the date of constitution of such common cadre of service, intimate his option for not becoming a member of such common cadre of service.
(2) Officers of the Government, other than those working in the Co-operative Department who may be appointed in the committee constituted under sub-section (3) of Section 75 or the proviso thereto, shall be the holder of a post, the minimum of the time scale of pay of which is not less than one thousand rupees.
(3) Every society under which an employee borne on a common cadre of service is employed shall contribute the following towards the salary and other allowances of such employee, namely :--
(a) act
The declaration to be made under sub-section (1) of Section 95 shall be in Form No. 44.
The agreement referred to in sub-section (1) of Section 97 shall, in addition to the matters mentioned in that subsection, specify --
(i) the nature of improvement that may be effected to the lands ;
(ii) the manner in which the land may be realigned along with the other lands by the removal or alteration of the existing ridges or by the formation of new ridges thereon ;
(iii) the crop or crops that may be raised on the land ; and
(iv) the method of cultivation that may be adopted.
For the purpose of the proviso to Section 102, land may be acquired for the following purposes, namely:--
(i) sinking of a well or provision of irrigation facility; or
(ii) construction of a godown or cattle shed ; or
(iii) rounding off the holding for the purpose of effective cultivation of the lands pooled by the members of the society.
The proceedings of the Arbitrator appointed under clause (b) of sub-section (1) of Section 100 shall be summary and shall be governed as far as practicable by the provisions of the Code of Civil Procedure, 1908 (Central Act V of 1908).
The extent of land for the purposes of clause (2) of Section 104 shall be two hectares.
The declaration to be made under clause (a) of sub-section (1) of Section 105 shall be in Form No. 45.
The agreement referred to in sub-section (1) of Section 106 shall, in addition to the matters mentioned in that sub-section, specify --
(i) the crop or crops that may be raised on the agriculture and rural; and
(ii) the method of cultivation that may be adopted.
Any lift irrigation society may permit any member of that society to withdraw his membership, if--
(i) a period of not less than five years has elapsed since he has become a member of the lift irrigation society;
(ii) he has paid his entire share of the capital expenditure and the maintenance charges, for providing supply of water till the date of his withdrawal of his membership ;
(iii) he has repaid in mil the amounts outstanding against him and due to the society, including the interest and the penal interest, if any, up to the date of recovery in respect of loans borrowed from the lift irrigation society; and
(iv) he is otherwise eligible for the withdrawal of membership from the society according to its bye-laws.
(1) Every Primary Agricultureand Rural Development Bank seeking to recover any instalment or part thereof due to it under Section 118 shall make an application to the Registrar in Form No. 46, which shall be signed by a person authorised by the board of the Primary Agriculture and Rural Development Bank.
(2) The procedure laid down in Rules 116, 117, 119, 121, 132 to 137 shall apply to the distraint and sale under Section 118 of the produce of the mortgaged agriculture and rural, including the standing crop thereon, as if the Primary Agriculture and Rural Development Bank where a decree holder and the mortgagor, a judgment-debtor, subject to the modification that where the mortgagor does not live in the village where the agriculture and rural is situated and the demand notice cannot be served on the judgment-debtor or on some adult member of his family or his authorised agent as re
(1) Every Primary Agricultureand Rural Development Bank shall make an application to the Registrar in Form No. 47 signed by a person authorised by the board of the Primary Agricultureand Rural Development Bank.
(2) No application shall be made unless and until,
(a) a notice in writing requiring utilisation of loan or part thereof, or the payment of such mortgage money or part thereof has been served upon --
(i) the mortgagor or each of the mortgagors ;
(ii) any person who has any interest in or charge upon the property mortgaged or in or upon the right to redeem the same ;
(iii) any surety for the payment of the mortgaged debt or any part thereof; and
(iv) any
Where a Primary Agriculture and Rural Development Bank or the State Agriculture and Rural Development Bank, seeks to recover the moneys due, as if there were arrears of agriculture and rural revenue, under Section 120, such bank may apply to the Registrar in Form No. 48 which shall be accompanied by an extract of the loan ledger and a copy of the Boards resolution requesting action under the Tamil Nadu Revenue Recovery Act, 1864 (Tamil Nadu Act II of 1864).
(1) An officer of the State Agriculture and Rural Development Bank or the Primary Agriculture and Rural Development Bank authorised by the Registrar under subsection (1) of Section 120 shall be a person not below the rank of a Agriculture and rural Valuation Officer of the State Agriculture and Rural Development Bank or a Secretary of a Primary Agriculture and Rural Development Bank.
(2) The authorisation made shall be for a specified period not exceeding one year at a time and shall also specify the name and the designation of the officer so authorised:
Provided that such authorisation may be withdrawn by the Registrar at any time before the expiry of the period specified in the authorisation.
(3) (a) The officer authorised shall be under the administrative control of the Registrar in so
(1) Before taking action under Section 123, the Board of the State Agriculture and Rural Development Bank or the Trustee, as the case may be, shall direct the board of a Primary Agriculture and Rural Development Bank to take action for the recovery of moneys due and to report compliance within fifteen days from the date of receipt of such direction.
(2) On the expiry of the period specified in sub-rule (1) and on consideration of the reply, if any, received from the board of the Primary Agricultureand Rural development Bank, the board of the State Agriculture and Rural Development Bank or the Trustee, as the case may be, is of the opinion that the board of the Primary Agriculture and Rural Development Bank has neglected or failed to take action, the board of the State Agriculture and Rural Development Bank itself or the Trustee himself may proceed to take action under Section 123.<
(1) For the purpose specified in sub-section (3) of Section 129, copy of any document or of any entry therein shall be certified in the following manner:--
" I certify that the above is a true copy of the / true copy of an entry or entries in the............/ and that I have compared the above copy with the original/entry or entries in the.......................and found it / them to be correct.
Signature of the officer or person authorised under sub-section (1) of Section 129 of the Tamil Nadu Cooperative Societies Act, 1983."
(2) The fees payable for supply of certified copy shall be the same as prescribed in Rule 173 for granting certified copies of documents in the Registrars office.
The members of the Co-operative Tribunal shall be,--
(a) a Judicial Officer not below the rank of a Subordinate Judge, or
(b) any Officer of the Co-operative Department not below the rank of a Joint Registrar of Co-operative Societies, or
(c) any Officer of the Law Department of the Secretariat not below the rank of a Deputy Secretary to Government.
(1) The proceedings of a Co-operative Tribunal shall be summary and shall be governed, as far as practicable, by the provisions of the Code of Civil Procedure, 1908 (Central Act V of 1908).
(2) The fees payable in respect of every appeal to the Cooperative Tribunal and for other processes shall be at the rates specified in Schedule III.
(1) (a) An appeal under sub-section (2) of Section 152 or an application for revision under sub-section (1) of Section 153 shall be either presented in person or sent by registered post to the appellate or revising authority.
(b) The fee payable in respect of the appeal or the application for revision, shall be at the rates as specified in Schedule III.
(2) The appeal or the application for revision shall be in the form of memorandum and shall be accompanied by either the original or a copy certified in accordance with Rule 173 of the decision, order, award refusal, registration or approval of complained of or other proceedings appealed against or sought to be revised.
(3) Every appeal or application for revision shall, --
(a) specify the name a
(1) The time within which an application for review may be preferred under sub-section (1) of Section 154 shall be ninety days from the date of receipt by the applicant for review of the order to which the application relates.
(2) The application shall be in the form of a memorandum setting forth concisely and under distinct heads, the discovery of new and important facts which, after the exercise of due diligence, were not then within the knowledge of the applicant or couldnt be produced when the order was made or the mistakes or errors apparent on the face of the record or other good and sufficient reasons on the basis of which review is sought. It shall be accompanied by a memorandum of evidence.
(3) The application shall be accompanied by the original or a copy certified in accordance with Rule 173 of the order to which the applicati
The fees chargeable for the processes of Appeal, Revision and Review shall be at the rates specified in Schedule III.
The Registrar shall enforce the order passed by the Cooperative Tribunal, the Registrar or the Government under Section 152, 153 or 154 as if it were an order passed by him.
Any person may on payment of fees at the rates specified in Schedule V, obtain certified copies of any document not being a document privileged under Sections 123, 124, 129 and 131 of the Indian Evidence Act, 1872 (Central Act I of 1872) filed in the Registrars Office.
(1) The sums payable to Government by a registered society under Section 86 shall be determined by the Registrar in accordance with the such scale as may be notified by the Government from time to time.
(2) The payment shall be made by the society within fifteen days from the date of demand.
(3) The Government may, in their discretion, by a general or special order, remit all or any portion of the dues payable by any registered society or class of societies, for any period they may specify.
This Chapter shall apply only to the Co-operative Sugar Mills.
In this Chapter unless the context otherwise requires --
(a) "sugar mill" means a Co-operative Sugar Mill registered or deemed to have been registered under the Act;
(b) "default" includes failure to plant or ratoon Sugar cane or to register and supply sugarcane to the Sugar Mill from the area so planted or ratooned within the period specified in the bye-laws or to keep any other obligation for the fulfillment of which a time limit has been specified in the bye-laws ;
(c) "Federation" means the Tamil Nadu Co-operative Sugar Federation.
(1) Every Sugar Mill shall prepare for each cooperative year and submit to the Registrar within a period of three months from the close of the co-operative year, --
(a) a statement showing the receipts and disbursements for the year or trial balance at the end of the year;
(b) a profit and loss account ;
(c) a balance-sheet; and
(d) such other statement or return as the Government may, from time to time, specify.
(2) (a) Every Sugar mill shall also furnish a copy of the statements or returns submitted to the Registrar under sub-rule (1) to the financing Bank and the Federation simultaneously ;
(b) The Federation shall submit to the Registrar a consolidated
No individual qualified for membership of society under Section 21 (1) (a) (i) of the Act shall be eligible for admission as a member of a Sugar Mill unless he ,--
(a) owns or cultivates land capable of being cultivated with sugarcane within the area of the operation of the Sugar Mill; or
(b) resides in the area of operation of the Sugar Mill and has interest in the development of Sugar Mill:
Provided that the category of members referred to in clause (b) shall not exceed 25 per cent of the total membership.
Any person admitted as a member in a Sugar Mill under Rule 178 shall also be eligible for admission in one or more other Sugar Mills, if he owns or cultivates land capable of being cultivated with sugarcane in the area of operation of such other Sugar Mill.
A member of a Sugar Mill shall be considered to have acted adversely to the,interest of the Sugar Mill and liable for expulsion from membership of the Sugar Mill under Section 25 (1) of the Act, if he,--
(a) having raised sugarcane, fails to register and supply sugarcane to the Sugar Mill to the extent prescribed by the Sugar Mill; or
(b) having registered sugarcane with the Sugar Mill, fails to deliver the sugarcane in full from his registered area, as per the terms of the agreement with the Sugar Mill; or
(c) having received medium or long-term financial or other assistance from or through the Sugar Mill to improve his land and to increase the infrastructure, fails to cultivate, register and supply sugarcane to the Sugar Mill.
(1) Subject to the provisions contained in the proviso to clause (b) of Rule 178, every Sugar Mill having individual members not qualified for admission as a member with reference to the principal object of the Sugar Mill on the date of commencement of these Rules shall, in a phased manner and within a period of three years thereof, issue notice to each such member requiring him to receive his share in or interest on the capital of the Sugar Mill and other moneys due to him within thirty days from the date of receipt of such notice.
(2) If the individual concerned fails to receive his share in or interest on the capital and other moneys due to him within thirty days from the date of receipt of the notice under sub-rule (1), the amount representing the share in or interest on the capital and other moneys due to such individual shall, forthwith, be credited to a suspense account.
(1) The following categories of persons may be admitted as associate members in a Sugar Mill:--
(a) Any person interested in the property being mortgaged by a member in favour of the Sugar Mill for the purpose of joining in the execution of the mortgage deed or any other document by such member;
(b) Any person deciding to avail of any service other than credit rendered by the Sugar Mill;
(c) Any transfer, commission agent or merchant engaged in business, in commodities dealt with by the Sugar Mill and having dealings with the Sugar Mill;
(d) Any paid officer or servant of the Sugar Mill or of its financing Bank desiring to avail of the services of the Sugar Mill with the prior approval of the Registrar.
(
The Registrar may permit a Sugar Mill to grant medium and long-term loans to its members on the mortgage of immovable properties, wherever necessary, either as a part of scheme of Central or State Government or out of the funds of the Sugar Mill, for sugarcane development purposes for such periods as may be specified by the Registrar.
A Sugar Mill may entrust the whole or part of its business, sale or purchase, to the Federation for the purpose of securing the maximum advantage to the Sugar Mill.
(1) A Sugar Mill may, in its bye-laws provide for the constitution of a Purchase Committee by its Board.
(2) (a) The Purchase Committee shall consist of the following seven members, namely:--
(i) The President;
(ii) The Vice-president;
(in) One member of the Board ;
(iv) Managing Director;
(v) Three Heads of the Departments of the Sugar Mill, including the Chief Accountant;
(b) The Purchase Committee shall not make purchases beyond the monetary limit that may be specified by the Registrar, from time to time.
(3) All purchases beyond the monetary limit specified in sub-
(1) In case where there is need for the purchase of a new motor vehicle to carry on its business, the Board of Sugar Mill may purchase such vehicle with the prior approval of the Registrar. The fleet strength along with the staffing pattern for manning them shall be got approved by the Registrar.
(2) The Board shall determine the number of telephone installations, telex facilities, wireless equipments and such other facilities as may be necessary with the approval of the Registrar.
The Registrar shall, taking into account the technological innovations, alterations and additions made to the plant and machinery, specify, from time to time, for each Sugar Mill, the following conditions of service with the approval of the Government, namely:--
(i) Staff pattern;
(ii) Qualifications for the various posts ;
(iii) Pay scales;
(iv) Procedure for recruitment and promotion ;
(v) Disciplinary procedures;
(vi) Various kinds of leave ; and
(vii) Such other conditions of service.
A sum not less than 50 per cent of the total amount contributed by the Sugar Mill to the Co-operative Research and Development Fund shall be set apart by the Tamil Nadu Co-operative Union to meet the expenditure to be incurred by the South India Sugar Research Foundation set up jointly by the Sugar Mills to conduct applied research in engineering, processing and training every year, on the basis of the proposals received from the Registrar.
(1) The Managing Director shall be the chief executive of the Sugar Mill. He shall carry into effect the resolutions of the Board which are in accordance with the Act, these Rules and the bye-laws and which are not against the interests of the Sugar Mill. He shall refer all other resolutions with details as to how, in his opinion, they are not in accordance with the Act, these Rules or the bye-laws or are against the interests of the Sugar Mill, to the Registrar.
(2) The Managing Director shall have an overall control of the day-to-day administration of the Sugar Mill and all correspondence shall be conducted by him.
(3) The Managing Director may institute or defend any suit or other legal proceedings on behalf of the Sugar Mill and keep the Board informed.
(4) (a) The Managing Director sh
No member shall be entitled to vote at any election in the Sugar Mill of which he is a member or be entitled to be elected or nominated to represent the Sugar Mill in any other society or to vote at any election in any other society if he was in default to the Sugar Mill of which he is a member.
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