WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 1983
(1) This Act may be called the West Bengal Co-operative Societies Act, 1983.
(2) It extends to the whole of West Bengal.
(3) It shall come into force on such date as the State Government may by notification appoint, and different dates may be appointed for different provisions of this Act.
In this Act, unless there is anything repugnant in the subject or context,
(1) "administrator" means an administrator appointed under section30;
(2) "apex society" means a co-operative society whose 11.Words subst. by W.B. Act 21 of 1990. for the operation of other co-operative societies which are its members, and includes a State Co-operative Bank; [area of membership] extends to the whole of West Bengal and the primary object of which is to promote the objects, and to provide facilities
(3) "arbitrator" means an arbitrator appointed under section 96 or section 97, and includes a Chief Arbitrator;
22. Clauses
(1) The West Bengal Co-operative Societies Act, 1973, is hereby repealed.
(2) Notwithstanding such repeal, anything done or suffered or any action taken (including any rule made, any transaction entered into, any notification or notice issued with prospective or retrospective effect, any order passed, any appointment or registration made, any suit or proceeding commenced, any dispute decided or referred to arbitration, any right or title accrued, or any liability or obligation or penalty incurred) under the Co-operative Societies Act, 1912 or the Bengal Co-operative Societies Act, 1940 or the West Bengal Co-operative Societies Act, 1973 shall be deemed to have been done or suffered or taken under this Act, as if the provisions of this Act were in force at all material times when such thing was done or suffered or such action was taken.
All references to the Co-operative Societies Act, 1912 or to the Bengal Co-operative Societies Act, 1940 or to the West Bengal Co-operative Societies Act, 1973 occurring in any enactment for the time being in force in West Bengal shall, in the application of any such enactment thereto, be construed as references to this Act; and anything done or any proceeding commenced in pursuance of any such enactment on or after the commencement of this Act shall be deemed to have been done or commenced and to have had effect as if any reference in such enactment to the Co-operative Societies Act, 1912 or to the Bengal Co-operative Societies Act, 1940 or to the West Bengal Co-operative Societies Act, 1973 had been a reference to this Act and no such thing or proceeding shall be deemed to have been invalid on the ground that such enactment did not refer to this Act.
The provisions of the Companies Act, 1956 shall not apply to co-operative societies.
No person other than a co-operative society shall trade or carry on business under any name or title of which the word "co-operative" or its equivalent in any language is a part :
Provided that nothing in this section shall apply to the use by any person or by his successor-in-interest of any name or title under which he lawfully traded or carried on business at the commencement of this Act.
The State Government may, if it is satisfied that it is necessary so to do in the public interest, by notification, for reasons to be recorded,
(a) exempt any co-operative society or class of co-operative societies from the application of any of the provisions of this Act or the rules, or
(b) direct that any of the provisions of this Act or the rules shall apply to any co-operative society or class of co-operative societies to such extent as may be specified in the notification:
Provided that no notification to the prejudice of any co-operative society or class of co-operative societies shall be issued without an opportunity being given to it to represent its case.
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Every officer of a co-operative society shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
1919. Sections 9 and 10 subst. by W.B. Act 27 of 1989. (1) The State Government may appoint a person to be the Registrar of Co-operative Societies for West Bengal and such number of other persons to assist him as it may deem fit.
(2) The State Government may appoint a person to be the 2020. Words subst. by W.B. Act 22 of 1992. [Director of Co-operative Audit] and such number of other persons to assist him as it may deem fit.
Sections 9 and 10 subst. by W.B. Act 27 of 1989.
(1) Subject to the rules; the State Government may, by general or special order in this behalf, confer all or any of the powers, or impose all or any of the duties, of the Registrar under this Act, other than those specified in the First Schedule, on any person appointed under sub-section (1) of section 9 to assist the Registrar.
(2) Subject to the rules, the State Government may, by general or special order in this behalf, confer all or any of the powers, or impose all or any of the duties, of the 2121. Words subst. by W.B. Act 22 of 1992. [Director of Co-operative Audit] under this Act, 2222. Word subst. by W.B. Act 21 of 1990. [including] those specified in the Sixth Schedule, on any person appointed under sub-section (2) of section 9 to a
(V Subject to the provisions of this Act and the rules, a co-operative society established with the object of promoting the common interests of its members in accordance with co-operative principles and facilitating the operation of such co- operative society (including a co-operative society formed by division of an existing co-operative society or by amalgamation of two or more existing cooperative societies) may be registered under this Act with limited liability :
Provided that a co-operative society with unlimited liability functioning immediately before the commencement of this Act may continue to function as such or may convert itself into a co-operative society with limited liability within such time and in such manner as may be prescribed :
Provided further that a co-operative soci
(1) No co-operative society the by-laws of which permit admission as its member of a person carrying on transaction or business of the same kind or nature as carried on by it shall be registered under this Act.
(2) In particular and without prejudice to the generality of the provisions of sub-section (1),
(a) no co-operative credit society shall be registered if the by-laws thereof do not specifically debar admission as its member of a person who is a money-lender by profession,
(b) no consumers' co-operative society shall be registered if the bylaws thereof do not specifically debar admission as its member of a person who is a grocer by profession, and
(c
(1) An application for registration of a co-operative society and its by-laws shall be made to the Registrar in the prescribed manner with one copy to the District Co-operative Union in the case of a co-operative society within a district and to the State Co-operative Union in the case of a State level society. The application shall be accompanied by two copies of the proposed by-laws of the co-operative society. The persons by whom or on whose behalf the application is made shall furnish such information in regard to the co-operative society as the Registrar may require.
(2) Where an application for registration of a co-operative society and its by-laws is made by individuals, the number of applicants shall not be less than ten, each of whom shall belong to a different family:
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(1) The Registrar shall decide all questions as to whether an application made under sub-section (1) of section 13 complies with the provisions of this Act and the rules and whether the co-operative society is eligible to be registered under sub-section (1) of section 11.(2) If the Registrar requires any particulars or papers for deciding the questions referred to in sub-section (1), he shall forthwith call for such particulars or papers from the applicant or the chief promoter of the application.
(1) If the Registrar is satisfied that an application for registration of a co-operative society and its by-laws is in accordance with the provisions of this Act and the rules, he shall, unless for reasons to be recorded in writing he thinks fit to refuse, register the co-operative society and its bylaws within the period mentioned in sub-section (4) of section 13.
(2) If the Registrar fails to dispose of the application for registration of a co-operative society and its by-laws or if registration thereof is refused by him, he shall transfer the application to the Registration Council as required under sub-section (5) of section 13.
When a co-operative society and its by-laws have been registered under sub-section (1) of section 15, the Registrar shall issue to the co-operative society a certificate, attaching thereto a copy of the by-laws, in the prescribed form, and such certificate shall be the conclusive evidence that the co-operative society and its by-laws have been duly registered under this Act, unless it is proved that the registration of the co-operative society has been cancelled or its by-laws amended in accordance with the provisions of section 17 or section 18.
(1) A co-operative society may make by-laws for carrying out its functions under this Act or the rules and such by-laws shall not be valid unless they have been registered under sub-section (1) of section 15:
2626. Proviso added by W.B. Act 21 of 1990. Provided that the provisions of any by-law shall, if in conflict with the provisions of this Act or the rules, be void and thereupon the matters governed by such by-law shall be governed by this Act or the rules until the bylaw is amended to remove the conflict.
(2) A co-operative society may amend its by-laws from time to time but no such amendment shall be valid unless it is registered under sub-section (3) of this section,
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(1) If, of his own motion or on the application of the financing bank concerned, it appears to the Registrar that any amendment of the by-laws of a co-operative society is necessary or desirable in the interest of such co-operative society, the Registrar or any person authorised by him in this behalf may by order direct the co-operative society to call a special general meeting in the prescribed manner to make the amendment and apply for registration thereof within such time as he may specify in the order. If the co-operative society
(2) If the co-operative society fails to make the amendment and apply for registration thereof within the specified time the Registrar shall, after consulting the financing bank 2727. Words inst. by W.B. Act 21 of 1990. [, if any] of which the co-operative society is a member or a debtor, as the case may
(1) Any co-operative society may, by a resolution passed by a majority of not less than two-thirds of the members thereof present and voting at a general or special general meeting,
(a) transfer, wholly or in part, its assets and liabilities to any other co-operative society, or
(b) divide itself to form two or more new co-operative societies.
(2) Any two or more co-operative societies may, by resolution passed by not less than two-thirds of the members present and voting at a general or special general meeting of each such co-operative society, amalgamate themselves and form a new co-operative society together with the assets and liabilities of the co-operative societies forming such new co-operativ
(1) If the Registrar is satisfied after due consultation with the respective apex society in the manner prescribed that it is essential in the public interest or in the interest of cooperative movement or for the purpose of securing the proper management of any co-operative society that 3232. Words subst. by W.B. Act 21 of 1990. [any co-operative society or co-operative societies should be divided, reorganised or amalgamated,] then notwithstanding anything contained in section 19, the Registrar may by a notice 3232. Words subst. by W.B. Act 21 of 1990. [direct the said co-operative society or co-operative societies,] stating reasons therefor, 3232. Words subst. by W.B. Act 21 of 1990. [to cause such division, reorganisation or amalgamation,] as the case may be, with such constitution, property, rights, interest, authority, liabilities, duties, and obligations as may be specified in the notice within three months of the date o
(1) If the State Government is of opinion that
(a) in the public interest, or
(b) in the interest of the depositors, or
(c) in order to secure proper management of any central co-operative bank, or
(d) in the interest of the co-operative movement in the State as a whole, or
(e) in the interest of the co-operative banking system in the State as a whole, or
(f) to make co-operative credit adequately available to the primary co-operative credit societies of any particular area in the State from the State Co-operative Bank, it is necessary so to do, the State Government may, by an order published in the Official Gazet
(1) A co-operative society may, with the previous approval of the Registrar, by a resolution passed at a general meeting, change its name.
(2) A co-operative society shall communicate its new name to the Registrar and the Registrar shall enter the new name in the relevant register and shall make necessary corrections in the certificate of registration issued under section 16.
(3) The change of name of a co-operative society under sub-section (1) shall not affect any right or obligation of such co-operative society or of any member or past member (including a deceased member) thereof, and any legal proceeding pending before any authority, tribunal or Court by or against such co-operative society may be continued in its new name.
A registered cooperative society shall be a body corporate by its registered name with perpetual succession and a common seal, and with power to acquire, hold and dispose of property, to enter into contracts, to institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.
(1) Subject to the provisions of this Act and the rules, the final authority of a co-operative society shall vest in the general body of its members in general meeting :
Provided that in such circumstances as may be prescribed, the final authority may vest in the delegates of such members elected in the prescribed manner and assembled in general meeting.
(2) The general meeting of a co-operative society shall be summoned, and the authority of the general body of members thereof shall be exercised, in such manner as may be prescribed.
(1) Every co-operative society shall hold at least once in every co-operative year a general meeting to be called the annual general meeting for
(a) election, if any, in the prescribed manner, of the directors of the board :
Provided that if in a general meeting 3636. Words om. by W.B. Act 27 of 1989. ****** the election cannot be held owing to an order of any court or for any other reason or if the directors of the board elected in such general meeting cannot function owing to an order of any court, the Registrar may constitute a board of directors from amongst the members of the co-operative society in conformity with sub-section (1) and sub-section (2) of section 27 3737. Words subst. by W.B. Act 27 of 1989. [and may appoint office-bearers of the board. The board so constituted shall fu
(1) A special general meeting of any co-operative society may be called at any time by a majority of the directors of the board 4242. Words inst. by W.B. Act 27 of 1989. [, and shall be called]
(a) on the requisition in writing of one-third of the members of the co-operative society or the delegates, where there are delegates; or
(b) at the direction of the Registrar.
(2) The special general meeting 4343. Words, figure, letters and brackets subst. by W.B. Act 27 of 1989. [under clause (a) or clause (b) of subsection (1)] shall be called within two months from the date of the requisition or the direction, as the case may be.
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(1) There shall be a board for every co-operative society to manage its affairs and the board shall consist of such number of directors as may be specified in the by-laws of the co-operative society. The directors shall be elected by the members of the co-operative society in a general meeting:
Provided that the number of directors to be elected by the members of a co-operative society shall not be less than six or more than fifteen, but where any co-operative society has less than twelve members, the number of such directors shall not be 4444. Words subst. by W.B. Act 21 of 1990. [less than three or more than six as may be specified in the by-laws of the co-operative society.]
(2) The State Government or any authority specified by it in this b
(1) The State Government may, on the application of a co-operative society supported by a resolution of the board or the general body of its members, depute on such conditions [and in such manner] as may be prescribed, a Government officer to the service of the cooperative society to manage its affairs. Such Government officer shall exercise such powers and perform such duties as may be prescribed:
Provided that if there is a condition by the financing agency that the State Government should depute a Government officer to manage the affairs of the co-operative society for which assistance from that agency is given or the State Government has given financial assistance directly to the co-operative society, the State Government shall, on the recommendation of the Registrar, appoint such officer 5656. Words inst. by W.B. Act 21 of 1990.
(1) The Registrar may, if he is satisfied for reasons to be recorded in writing that the board of any co-operative society is mismanaging its affairs, under clause (b) of sub-section (1) of section 26, by order direct the board to call a special general
Explanation. For the purpose of this sub-section, the expression "mismanaging its affairs" shall include any act of wilfully disobeying or failing to comply with any lawful order or direction issued by the State Government or the Registrar.
(2) In any direction under sub-section (1) the Registrar may, for reasons to be recorded in writing, order that all or any of the members of the board ' to be dissolved shall be disqualified for election to the board or for appointment as an officer of the co
(1)If, in the opinion of the Registrar,
(a) any board
(i) has persistently made defaults, or has been grossly negligent, in the performance of its duties under this Act or the rules or the by-laws, or
(ii) has committed any act prejudicial to the interest of the concerned co-operative society or any other co-operative society, or
(iii) has wilfully disobeyed or wilfully failed to comply with any lawful order or direction of the State Government or the Registrar; or
(b) the affairs and business of any co-operative society have due to persistent default or negligence in the performance of duties by its board or a
Notwithstanding anything to the contrary contained elsewhere in this Act or in any other law for the time being in force,
(a) the board of directors of any of the co-operative societies mentioned in the Fifth Schedule shall, if the election of its directors has not been held within a period of thirty-six months from the date of their election under sub-section (1) of section 25, stand dissolved on and from the date immediately following the date of expiry of the said period;
(b) with effect from the date of dissolution of the board under clause (a), the directors thereof shall be deemed to have vacated their offices;
(c) upon the dissolution of the board under clause (a) the Registrar shall, by notif
(1) Notwithstanding anything contained in the by-laws of a co-operative society, the Registrar, or any person authorised by him in writing in this behalf, may, at any time, direct the Chairman of a board or the Chief Executive of a co-operative society to summon a meeting of the board within such time as may be specified in the direction. If the Chairman or the Chief Executive, as the case may be, fails to summon the meeting of the board within the specified time, the Registrar or the person authorised by him shall summon the meeting of the board and such meeting shall be deemed to be a meeting summoned in accordance with the by-laws of the co-operative society and shall be competent to transact such business (which may be transacted at a meeting of the board) as may be specifically mentioned in the summons.
(2) The State Government ma
Where the State Government has
(a) subscribed to the share capital of a co-operative society, or
(b) guaranteed the principal and interest in respect of debentures issued by a co-operative society; or
(c) guaranteed the principal and interest in respect of loans and advances to a co-operative society; or
(d) assisted a co-operative society with loans or grants out of its own funds, the State Government, or any authority specified by the State Government in this behalf, shall have the right to nominate on the board of the cooperative society not more than three members of the board or one-third of the total num
The State Government may, by notification stating reasons therefor, provide for reservation of not more than one-fifth of the seats on the board of a co-operative society for the community, class or group of persons which, in the opinion of the State Government, are socially, economically or educationally backward.
(1) The State Government shall, by notification, appoint a Co-operative election authority with a Chairman [and a Secretary] and such number of other members, not exceeding three, as it may think fit for the superintendence, direction and control of election of the co-operative societies mentioned in the Fifth Schedule.
(2) The Chairman of the Co-operative election authority shall be a member of the West Bengal Civil Service (Executive) or the West Bengal Civil Service (Judicial) or the West Bengal General Service with not less than ten years' service as such. (2A) The Secretary of the Co-operative election authority shall be an officer of the Co-operative Directorate of the State Government, not below the rank of Assistant Registrar of Co-operative Societies, with five years' service as such.
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Subject to the provisions of this Act, the State Government shall make rules providing for
(a) the conduct of election of directors of the board of a co-operative society,
(b) the preparation of electoral roll for the election of such directors,
(c) fixing the date, place and manner of election of such directors,
(d) fixing the date of publication of the results of the election of such directors.
The State Government may constitute one or more cadres of services of managers, assistant managers and other employees for all co-operative societies or a class of cooperative societies on such terms and conditions and in such manner as may be prescribed.
Sub-sec. (1) subst. by W.B. Act 27 of 1997. (1) The State Government shall constitute a Co-operative Service Commission (hereinafter referred to in this section as the Commission) and shall appoint the following three persons as the members of the Commission:
(a) one person who is or was a Judge of the High Court at Calcutta or who holds or held a post not below the rank of Secretary to the Government of West Bengal, to be the Chairman of the Commission;
(b) two persons from the apex societies, to be nominated by the State Government.
(1A) The State Government shall appoint the Additional Registrar of Co-operative Societies to be the Secretary of the Commission.
Every co-operative society shall have an address, registered in accordance with the rules, to which all notices and communications may be sent and shall send notice in writing of every change thereof within thirty days of such change to the Registrar, the financing bank, if any, and the co-operative society of which it is a member.
Every co-operative society shall keep open to inspection by its members, free of charge, during office hours, Fit its address, such books and other documents as may be prescribed and certified copies thereof shall be supplied by it to its members on payment of the prescribed fee.
(1)Every co-operative society shall be required to be affiliated to the State Cooperative Union or the district co-operative union and the central society or the apex society on payment of the prescribed affiliation fee, periodical fee, subscription or contribution to share capital, as the case may be, and shall be required to be so organised as to promote the object of the co-operative societies to which it is affiliated.
(2) Non-compliance with the provisions of sub-section (1) shall be punishable with such penalty, not exceeding five hundred rupees, as may be prescribed.
(1) A co-operative society shall appoint, subject to the provisions of sub-section (5) of section 38, such officers and other employees as may be sanctioned by the Registrar to assist the co-operative society in the performance of its duties and discharge of its functions under this Act or the rules. The Registrar shall accord such sanction, or, in case of refusal, intimate to the co-operative society the reasons for such refusal within three months from the date on which any such proposal is submitted by the cooperative society, failing which the sanction shall be deemed to have been accorded by the Registrar. The qualifications and conditions of service of the officers and other employees of the co-operative society shall be such as may be prescribed.
(2)
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A co-operative society may receive deposits and loans to such extent and under such conditions as may be prescribed.
(1) A co-operative society may receive loans by issue or re-issue of debentures of one or more denominations for such period as may be prescribed. Such debentures shall not be issued or reissued save with the express authority of the State Government.
(2) The State Government shall guarantee the principal and interest on the debentures, subject to such conditions as it may lay down. The State Government shall appoint the Registrar or any other person as Trustee for securing the fulfilment of the obligations of the co-operative society to holders of the debentures. The Trustee so appointed shall exercise the powers and perform the functions of a Trustee laid down in the Indian Trusts Act, 1882.
(3) The State Government may by order declare that t
Upon the issue of debentures under sub-section (1) of section 44, the assets of a co-operative society (including any mortgage which it holds by acceptance, assignment or transfer) shall vest in the Trustee and the holders of debentures shall have a floating charge on all such assets (including the amounts paid under such mortgage and remaining in the custody of the Trustee or the co-operative society) and on other properties of the co-operative society.
(1) Notwithstanding anything contained elsewhere in this Act, a co-operative credit society may, with the prior approval of the State Government and subject to its by-laws, borrow money by issue of bonds in conformity with such directions or instructions as may be given by the Reserve Bank of India from time to time.
(2) The bonds shall be in the form of promissory notes repayable on the expiry of such period from the date of issue thereof as may be approved by the Reserve Bank of India:
Provided that the board may repay the amount due under the bonds to the holders thereof at any time before the expiry of the aforesaid period after issuing a notice in such manner as it may direct in this behalf.
(1) A co-operative society shall grant loans to its 7171. Words and brackets subst. by W.B. Act 21 of 1990. [members (other than nominal members) only:l
Provided that a co-operative society may, with the sanction of the Registrar, grant, in the manner prescribed, loans to any other co-operative society which is not its member:
7272. Provisos added by W.B. Act 21 of 1990. Provided further that a co-operative society may grant advance to a non-member depositor against the security of his time-deposit:
7272. Provisos added by W.B. Act 21 of 1990. Provided also that a co-operative society may grant advance to a nominal member against any tangible security.
(2)
Notwithstanding anything contained in any other law for the time being in force, the State Government may, subject to the rules,
(i) grant loans to, take shares in, or give financial assistance in any other form to, any co-operative society;
(ii) guarantee the repayment of share capital of any co-operative society and dividends thereon at such rates as may be specified by the State Government; and
(iii) guarantee, the repayment of principal and payment of interest on loans and advances to any co-operative society.
The State Government may, for reasons to be recorded in writing and after giving the cooperative society an opportunity of being heard, at any time issue directive to any co-operative society or any class of co-operative societies to modify its policies in the manner specified in such directives or to take such other action as the State Government may consider necessary or expedient in the interest of such co-operative society or class of co-operative societies or of the co-operative movement in general.
Notwithstanding the provisions of the Limitation Act, 1963, the period of limitation for the institution of a suit to recover any sum (including interest thereon) due to a co-operative society by a member thereof or any person having transaction with the co-operative society shall be computed from the date on which such member or person dies or ceases to be a member or, as the case may be, closes transaction with the co-operative society.
(1)Notwithstanding anything contained in any other law for the time being in force but subject to the provisions of the West Bengal Agricultural Credit Operations Act, 1973 and to any claim of the State Government in respect of land revenue, any debt or outstanding demand owing to a co-operative society by any member or any past or deceased member of such co-operative society shall be a first charge upon the lands, crops or other agricultural produce, cattle, fodder, agricultural or industrial implements or machinery, raw materials, finished products, house or building or any portion thereof belonging to such member or past member or forming part of the estate of such deceased member, as the case may be.
(2) No person shall transfer any property which is subject to a charge under sub-section (1) except with the previous permission in w
Notwithstanding anything contained in this Act or in any other law for the time being in force,
(a) a member who makes an application for loan to a co-operative society of which the majority of the members are agriculturists shall, if he owns any land or has interest in any land as a tenant, make in the prescribed form a declaration that he thereby creates a charge upon such land or interest as may be specified in the declaration for repayment with interest of the loan or of the future loans, if any that may be granted to him by the co-operative society from time to time;
(b) a declaration made under clause (a) may be varied or cancelled by the member at any time with the consent of the co-operative society;
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(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, if any member owning any land or other immovable property or having interest in any land or otherwise being in lawful occupation of any land (including a share cropper), who has not borrowed money under section 52, makes an application to a co-operative credit society for loan, he shall by a declaration in the prescribed form create a special charge to be called Gehan in favour of the co-operative credit society on such land or other immovable property or his interest therein to secure payment with interest of the loan to be granted to him for the present and in nature by the said co-operative credit society on such application and any other loan that may be granted to him by it from time to time so, however, that the total amount of all loans taken together does not exceed the maximum limit fixed by it and for payment of inter
The Registrar shall appoint a sale officer for conducting the sale under section 53. The sale officer shall conduct the sale in the prescribed manner.
Out of the sale proceeds of a sale under section 54, the land revenue or any sum recoverable as a public demand shall be paid first and then any amount due to the land development bank on account of any outstanding loan from that bank and the amount payable to the co-operative society together with the cost incurred for effecting the sale shall be paid. Thereafter the dues to the creditor shall be paid and the residue, if any, shall be paid to the debtor.
(1) A co-operative society having its object to provide irrigational facilities and embankment protection facilities to lands of its members may levy water rate and embankment protection rate on persons, who, although not members thereof, hold not less than forty per cent. of the agricultural land to be irrigated, under such circumstances and at such rates as may be prescribed.
(2) A co-operative society, an object of which is agricultural farming through consolidation of land holdings may admit any non-member owning agricultural lands as its member under such circumstances and stipulations as may be prescribed.
(1) A co-operative society shall have a charge upon the shares or interests in the capital and deposits of a member (including a past or deceased member) and upon the amount payable out of profits to a member or past member or to the estate of a deceased member on account of any debt due to it by such member or past member or deceased member, as the case may be.
(2) Subject to the provisions of sections 80 to 84 and the rules and the bylaws, a co-operative society may set off any amount credited or payable to a member or past member or the estate of deceased member in or towards payment of any debt referred to in sub-section (1).
(1) A member of a co-operative society may execute an agreement in favour of the co-operative society providing that his employer shall be competent to deduct from the salaries or wages and retiring gratuity or death gratuity payable to him by such employer such amount as may be specified in the agreement and to pay the amount to the co-operative society in satisfaction of any debt or other demands of the co-operative society against the member.
(2) Upon the execution of the agreement under sub-section (1), the employer shall on the requisition of the co-operative society in writing and for so long as the co-operative society does not intimate that the debt or demand has been fully paid, make the deduction in accordance with the agreement and pay the amount to the co-operative society 7575. Words inst. by W.B. Act 21 of 1990. [within f
(1) Nothing in clauses (b) and (c) of sub-section (1) of section 19 of the Registration Act, 1908 shall apply to
(a) any instrument relating to shares in a co-operative society, or
(b) any debenture issued by any co-operative society without creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in any immovable property except in so far as it entitled the holder of the debenture to the security afforded by a registered instrument whereby the co-operative society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or interest therein to trustees upon trust for the benefit of the holder of the debenture; or
(c) any endorsement upon, or transfer of, any debenture issued
(1) Where the State Government is competent to remit any tax, cess or fee payable under any law for the time being in force, it may in the case of a co-operative society or class of co-operative societies 7676. Words inst. by W.B. Act 27 of 1989. [or a member of a co-operative society] remit such tax, cess or fee by general or special order.
(2) The State Government may, by notification, remit (a) the stamp duty (other than the stamp duty falling within entry 91 or entry 96 of List 1 of the Seventh Schedule to the Constitution of India) in respect of any instrument executed by, or on behalf of, or in favour of, any co-operative society or a class of co-operative societies or an officer or member thereof and relating to the business of such co-operative society or such class of co-operative societies in cases where but for such remissio
No compromise or arrangement between a co-operative society and its creditor shall be made except with the prior approval of the Registrar and in such manner as may be prescribed.
A co-operative society may invest or deposit its funds
(a) in a Government savings bank; or
(b) in any security specified in section 20 of the Indian Trusts Act, 1882; or
(c) in the share or debenture or security of any other co-operative society with the previous sanction of the Registrar and in the manner prescribed:
Provided that no such sanction shall be necessary where a primary co-opertavie society invests or deposits its fund in the share or debenture of a central society or an apex society or where a central society or apex society invests or deposits its fund in the share or debenture of a primary co
(1) There shall be a Fund to be called the Co-operative Education Fund to be administered by such authority and in such manner as may be prescribed. Every co-operative society shall contribute to the Co-operative Education Fund such portion of its net profit in any co-operative year as may be prescribed.
(2) All references to the Co-operative Development Fund established under the West Bengal Co-operative Societies Act, 1973 shall be construed as references to the Co-operative Education Fund established under this Act.
Every co-operative society shall create a Bad Debt Fund by transfer of not less than fifteen per cent. of its net profit in a co-operative year and shall utilise it in any business if it has no outside liability in the form of bad debt certified by the audit or in such other manner as may be prescribed.
Section 64 of the West Bengal Co-operative Societies Act, 1983, mandates the creation of a Bad Debt Fund by co-operative societies to manage and cover bad debts, thereby promoting financial stability within the cooperative sector.
Note: The analysis is based on the available sources and references provided, emphasizing the statutory requirements and legal implications of Section 64.
Every co-operative society shall transfer in every co-operative year not less than ten per cent. of its net profit to a Reserve Fund:
Provided that the Reserve Fund shall be invested in a Government Saving Bank including Nationalised Banks and Regional Rural Banks or in any security specified in section 20 of the Indian Trusts Act, 1882 or in the business of the co-operative society in such manner as may be prescribed.
A co-operative society may, notwithstanding anything contained in the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, establish a provident fund for the benefit of its whole-time employees with the contributions of such employees and may make contribution to the fund at the prescribed rate and the fund shall be administered in such manner as may be prescribed
A co-operative society may establish a Gratuity Fund in accordance with the provisions of the Payment of Gratuity Act, 1972 for the benefit of its employees.
(1) Subject to the provisions of sections 63, 64 and 65 and sub-section (2) of this section, the net profit of a co-operative society in a co-operative year shall be distributed among its members by way of bonus or dividend.
(2) Subject to such conditions as may be prescribed, the balance of the net profit in a co-operative year together with the undistributed net profit, if any, of the previous year may, to such extent and under such conditions as may be prescribed, be utilised for all or any of the following purposes:
(a) payment of dividend to members on their paid up share capital at a rate not exceeding twelve per cent.;
(b) contribution to such special funds as may be prescribed or as may be pr
(1) Subject to the rules and the by-laws, the following persons shall be eligible for membership of a co-operative society:
(a) an individual competent to contract under section 11 of the Indian Contract Act, 1872;
(b) any other co-operative society;
(c) the State Government;
(d) subject to the approval of the State Government by general or special order, any association or body of persons (whether incorporated or not) or any financing bank:
Provided that a student who has not attained the age of majority according to the law to which he is subject shall be eligible for membership of a cooperative society formed in an educational institution to which he belo
(1) Any person eligible for membership under sub-section (1) of section 69 may apply to a co-operative society for admission as a member thereof in the prescribed form and manner. A copy of the application shall be hung up on the date of its receipt by the cooperative society on its notice board, and written objection, if any, thereto from any member of the co-operative society shall be received by the cooperative society within a period of seven days from that date. The application shall be granted within a period of forty-five days from the date of receipt thereof if no written objection thereto is received by the co-operative society within seven days from the date of its receipt.
(2) If any objection is received within the period referred to in sub-section (1), it shall be disposed of in the prescribed manner within a period of thi
(1) Subject to the rules relating to voting by delegates, no member of a co-operative society shall have more than one vote in any matter that is put to vote or be permitted to vote by proxy:
Provided that in the case of an equality of votes, the Chairman of the meeting shall have a second or casting vote:
82a82a. Proviso om.by W.B. Act 27 of 1989. ********
(2) Where two persons are joint members of a co-operative society 8383. Words subst. by W.B. Act 27 of 1989. [the elder of such joint members or, in his absence, the next member] may attend a meeting of the co-operative society and shall have the right to vote at such meeting.
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No member of a co-operative society shall exercise his right as such member till he has made such payments to the co-operative society in respect of his membership or has acquired such interest in the co-operative society as may be provided by rules or by-laws.
A loan granted by a co-operative society to a member thereof shall be utilised by such member for the purpose for which it was granted. If the co-operative society is of opinion that the loan has not been utilised for the purpose for which it was granted, it may direct such member in the prescribed manner to refund the entire amount of the loan, and the amount shall be refundable forthwith.
Notwithstanding anything contained in any law for the time being in force but subject to the provisions of section 57, the share or interest of a member in the capital of a co-operative society or in the provident fund established under section 66 shall not be liable to attachment or sale under any decree or order of a court in respect of any debt or liability incurred by such member, and neither the Official Assignee under the Presidency-towns Insolvency Act, 1909 nor the receiver under the Provincial Insolvency Act, 1920 shall be entitled to, or have any claim on, such share or interest.
The members of a co-operative society shall, upon the winding of the co-operative society, be jointly and severally liable to contribute towards any deficiency in the assets of the co-operative society,
(a) if the co-operative society is a co-operative society with unlimited liability, without limit; and
(b) if the co-operative society is a co-operative society with limited liability, subject to such limitation as may be provided in the by laws:
Provided that where any shares of a co-operative society are purchased by the State Government or by any other co-operative society, the liability in respect of such shares shall, upon the winding up of the co-operative society, be limited to the amount paid
The liability of a past member or the estate of a deceased member of a co-operative society for debts of the co-operative society as they existed on the date of ceasing to be a member of the co-operative society or on the date of death of the member, as the case may be, shall continue for a period of two years from that date:
Provided that where a co-operative society is directed to be wound up under section 99 within the period of two years as aforesaid, such liability shall continue until the proceedings for winding up of the co-operative society are completed by the liquidator.
Where the liability of a member of a co-operative society is limited by shares, no member other than the State Government or another co-operative society shall
(a) hold more than such portion of the 8484. Word inst. by W.B. Act 21 of 1990. [paid-up] share capital of the co-operative society as may, subject to a maximum of one-fifth, be prescribed; or
(b) have or claim any interest in the form of dividend, profit or return with respect to the share of the co-operative society exceeding five thousand rupees:
Provided that the State Government may, by notification, raise in respect of any co-operative society or any class of co-operative societies and to such extent as may be specified in the notificat
(1) The transfer or charge of the share or interest of a member or a co-operative society in the capital of the co-operative society shall be subject to the provisions of this Act and to such conditions as to the maximum holding as may be prescribed and shall require the approval of the board:
Provided that in the case of a member of a co-operative society with unlimited liability, such transfer or charge shall not require the approval of the board.
(2) No transfer or charge of his share or interest by a member of a co-operative society with unlimited liability shall be valid unless
(a) he has held such share or interest (save in the case of transfer un
Subject to the by-laws of a co-operative society, any member of such co-operative society may in accordance with the rules nominate a person in whose favour the co-operative society shall dispose of the share or interest of such member on his death.
(1) On the death of a member of a co-operative society 8585. Words inst. by W.B. Act 21 of 1990. [, other than a central society,] his share or interest in the co-operative society shall, subject to the provisions of Sections 57 and 78 and to the further provisions of this section, be transferred
(a) to the person, if any, nominated under section 79; or
(b) if there is no nominee or if the existence or residence of the nominee cannot be ascertained by the board or if, for any other cause, the transfer cannot be made without unreasonable delay, to the person who (subject to the production by such person of probate, letter of administration or succession certificate) appears to the board to be entitled in accordance with the rules to the possession of such share or interest as part of the est
8686. Sec. 81 subst. by W.B. Act 21 of 1990. When a member of a co-operative society is expelled or resigns in accordance with the rules or the bylaws of the co-operative society or becomes insane, his share or interest in the capital or the co-operative society shall be transferred to a person qualified to be a transferee of such share or interest under section 78, and the value thereof shall be paid to the member or, in the case of his becoming insane, to such person as may be appointed to manage his properties under the Mental Health Act, 1987, within two years from the date on which the member is expelled or resigns or the person as aforesaid is appointed, as the case may be.
Notwithstanding anything contained elsewhere in this Act or in any other law for the time being in force,
(a) a member of a co-operative society, the object of which is the reclamation and colonization of land or the acquisition of land and the leasing thereof to its members, shall not be entitled to transfer his possession of, or interest in, any land held by him under the co-operative society except to the co-operative society or with its previous approval in accordance with its by-laws, to a member thereof;
(b) when the membership of a member of a co-operative society referred to in clause (a) terminates by reason of death, expulsion, resignation or insanity or any other cause, his possession of, or interest in, any land held by him under the co-operative society shall vest in his heir,
When an order is issued under section 99 for winding up of a co-operative society which is a member of a co-operative society with limited liability and, liquidator is appointed under section 100, the liquidator shall transfer the share or interest of the co-operative society being wound up, subject to the provisions of section 78, to any person or any other cooperative society pn receipt from such person or co-operative society the value of such share or interest determined in accordance with the rules:
Provided that if the transfer of share or interest is not possible within a reasonable period from the date on which the order issued under section 99 for winding up of the co-operative society takes effect, the value of such share or interest determined in accordance with the rules shall, within two years from the date of the order for winding up, be paid to the liquidator, or ma
(1) All sums calculated in accordance with the rules to be due from a co-operative society to a member, other than payments to be made in respect of share or interest of such member to the co-operative society, shall, subject to the provisions of section 57, be paid within one year,
(a) in the case of a deceased member, to the person to whom the share and interest are transferred or their value is paid in accordance with the provisions of section 80;
(b) in the case of a member who has been expelled by, or has resigned from, a co-operative society, to him; and
(c) in the case of a member who has become insane, to the person appointed to manage his properties under the Indian Lunacy Act, 1912.
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(1) Notwithstanding anything contained elsewhere in this Act, but subject to such conditions as may be prescribed, any individual who is a permanent resident of West Bengal or who intends to reside in West Bengal permanently and the State Government shall be eligible for membership of a co-operative housing society.
(2) Any person eligible for membership of a co-operative housing society under sub-section (1) may apply to such society for being admitted as a member thereof, and membership shall not be denied to him if plots of land, houses or apartments in 8787. Word om. by W.B. Act 27 of 1989. * * * buildings constructed or under construction by it are available for allotment to such person on the date of application, and plot of land or house or apartment as applied for shall be allotted to him,
(1) Notwithstanding anything contained in this Act, a co-operative housing society shall, within ninety days from the date of receipt of the certificate of registration under section 16, call its first general meeting for the purpose of
(a) electing the directors of the board;
(b) placing a report on the progress of work and other particulars relating to the project of the co-operative housing society;
(c) finalising the policy and mode of allotment of plots, houses and apartments in multi-storied buildings.
(2) If the election referred to in clause (a) of sub-section(1) is not held within the specified time, the Registrar may, after such inquiry as he thi
9191. Sub-sec. (1) subst. by W.B. Act 20 of 1995. (1) Any allotment (including re-allotment) of a plot of land or a house or an apartment in a building made by a co-operative housing society to its member in accordance with its bylaws shall entitle such member to hold such plot of land, house or apartment, as the case may be, with such title or interest as may be granted under the prescribed conditions, and, subject to the provisions of sub-section (2) of section 60, an instrument of transfer in accordance with the provisions of the Transfer of Property Act, 1882 and the Registration Act, 1908, shall be the conclusive evidence of such title or interest in favour of such member.
(2) A member of a co-operative housing society shall not be entitled to any title or interest in any plot of land or house or apartment in a 9292. Word om. by W
(1) Notwithstanding anything contained in any other law for the time being in force, each plot of land or house or apartment in a* * * building (including the undivided interest in the common areas and facilities) shall constitute a separate unit for the purpose of assessment of rates and taxes to be realised by a municipality or a notified area authority or a competent authority.
(2) A co-operative housing society shall be liable to furnish to the Registrar such information or particulars in regard to its affairs at the end of each co-operative year or at any other time as the Registrar may by general or special order direct,
(3) After a co-operative housing society has been registered and till the possession of land, house or apartment in a 92
(1) Notwithstanding anything contained in any other law for the time being in force, no member of a cooperative housing society, who has been allotted a plot of land or a house or an apartment in a 92a*** building, shall let out such plot of land or house or apartment, as the case may be, and receive any compensation or income in respect of the plot of land or house or apartment, as the case may be, without the written consent of the co-operative housing society on an application made in this behalf. The co-operative housing society may give its consent or refuse such consent for reasons to be recorded in writing and
(2) If the co-operative housing society fails to take decision on the application within one month from the date of its receipt or refuses such consent, the member shall have a right of appeal to the Registrar.
(1) The accounts of every co-operative society shall, at least once in each co-operative year, be audited at the expense of the co-operative society by the 9393. Words subst. by W.B. Act 27 of 1989 and W.B. Act 22 of 1992. respectively. [Director of Cooperative Audit] or 9494. Words, figures and brackets subst. by W.B. Act 27 of 1989. [by a person appointed or authorised by the 93(Director of Co-operative Audit) to act as audit officer by general or special order in writing in this behalf! from among the officers under his administrative control or from the panel of auditors 9595. Words inst. by W.B. Act 21 of 1990. [, which shall include, among others, members of the Institute of Cost and Works Accountants of India constituted under the Cost and Works Accountants Act, 1959 (hereinafter referred to in this section as the Institute),] prepared by him for this purpose.
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(1) After completion of audit of the accounts of any co-operative society the audit officer shall submit his report 98a98a. Words subst. by W.B. Act 27 of 1989 and W.B. Act 22 of 1992, [to the Director of Co-operative Audit] and to the co-operative society together with the statement of accounts within the period specified in subsection (2) of section 90. The audit report shall include such information as, may be prescribed.
(2) A co-operative society shall rectify the defects pointed out in the audit report and submit to the 98a98a. Words subst. by W.B. Act 27 of 1989 and W.B. Act 22 of 1992, [Director of Co-operative Audit] a report of compliance within forty-five days from the date of receipt of the audit report.
(3) Where the 98a98a. Words s
(1) Every co-operative society shall be liable at any time to inspection
(a) by the Registrar or by any person authorised by the State Government or the Registrar in this behalf by general or special order;
(b) by the financing bank, if any, of which it is a debtor;
(c) by the apex society or the central society, if any, of which it is a member.
(2) An inspection under sub-section (1) by a financing bank or an apex society or a central society, as the case may be, shall be made by an officer of such financing bank or apex society or central society certified by the Registrar in accordance with the rules as competent to conduct such inspection.
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(1) The Registrar may, at any time of his own motion, hold by himself or by any person authorised by him by order in writing an inquiry into the constitution, working and financial condition of a co-operative society or into any specific matter relating to the affairs of a co-operative society.
(2) An inquiry under sub-section (1) may also be held by the Registrar or by any person authorised by him by order in writing on the application of
(a) the financing bank, if any, of which the co-operative society is a member or a debtor;
(b) the majority of the directors of the board of the co-operative society;
(c) one-third of the members of the co-operative soci
(1) The Registrar may, after giving the parties an opportunity of being heard, by order stating reasons, apportion the cost of inspection or inquiry held under section 92 or section 93, as the case may be, either wholly or in part, between the co-operative society and the directors, members, delegates or creditors thereof or the financing bank, as the case may be, making the application for inspection or inquiry, and the officers (including former officers) and the members (including past members) of the co-operative society.
(2) No expenditure shall be incurred from the funds of any co-operative society for defraying the cost of any appeal preferred against an order under sub-section (1) by any person other than the co-operative society.
(1) Any dispute concerning the business of a co-operative society capable of being the subject of civil litigation or any dispute relating to the affairs of a co-operative society (other than a dispute relating to the disciplinary action taken by a co-operative society against the paid employees of the co-operative society or the terms and conditions of service of the paid employees of the co-operative society) shall be referred in the prescribed manner to the Registrar, if the parties thereto are among the following:
(a) a co-operative society or its board or an officer ( past or present), agent, employee or liquidator of a co-operative society; or
(b) a member or a past member or a person claiming through a member or a past member or on behalf of a deceased member of a cooperative society
(1) On receipt of a reference under subsection (1) of section 95, the Registrar shall, subject to the rules,
(a) decide the dispute himself; or
(b) transfer the dispute for disposal to any person authorised by the State Government to exercise the powers of the Registrar in this behalf; or
(c) refer the dispute for disposal to one or more arbitrators to be appointed by the Registrar or, in the case of the co-operative societies in the Calcutta Metropolitan Area as defined in the Calcutta Metropolitan Development Authority Act, 1972, to the Court of Arbitrators constituted under section 97.
(2) Subject to the rules, the Registrar may withdraw any dispute tra
For the purpose of disposal of disputes relating to the affairs of the co-operative societies in the Calcutta Metropolitan Area, the State Government may constitute a Court of Arbitrators consisting of a Chief Arbitrator and such number of other arbitrators as may be prescribed, and the Chief Arbitrator and other arbitrators shall be appointed by the State Government from among the officers of the Department of Co-operation of that Government or from among the distinguished co-operators residing within the Calcutta Metropolitan Area.
Where a dispute involves property pledged as collateral security, the person deciding the dispute may make an award which shall have the same force and effect as a final mortgage decree of a civil court having jurisdiction to make such decree.
(1) If, after an audit under section 90 or an inspection under section 92 or an inquiry under section 93 or on an application made by not less than three-fourths of the members of any co-operative society, the Registrar is of opinion that the co-operative society should be wound up, he may by order direct it to wound up.
(2) The Registrar may of his own motion, after giving thirty days' notice in the form prescribed, by order direct the winding up of a co-operative society
(a) where the co-operative society has not commenced working within twenty-four months from the date of its registration or has ceased to function for eighteen months; or
(b) where the number of members of the co-operative society
After an order has been issued under sub-section (1) or sub-section (2) of section 99, the Registrar may, in accordance with the rules, appoint a person to be liquidator of the co-operative society in respect of which such order has been issued and fix his remuneration in the manner prescribed and may, if necessary, in the like manner remove such person and appoint another person in his place:
Provided that it shall not be necessary to appoint any liquidator for winding up of a co-operative society which has not commenced working.
(1) On the appointment of a liquidator under section 100, all assets, properties, effects and actionable claims of the co-operative society or to which the co-operative society is entitled shall vest in the liquidator.
(2) The liquidator shall from the date of his appointment have power
(a) to take immediate possession of
(i) all assets, properties, effects and actionable claims of the co-operative society or to which the co-operative society is entitled,
(ii) all books, records and other documents pertaining to the affairs of the co-operative society; and
(b) to t
Notwithstanding anything contained in any law relating to insolvency, the contribution assessed by a liquidator shall rank next to debts due to the State Government or to any local authority in the order of priority in insolvency proceedings.
(1) If the Registrar is of opinion that it is not necessary to appoint a liquidator for a co-operative society in respect of which an order for winding up has been issued under sub-section (1) or sub-section (2) of section 99, he shall by order cancel the registration of such co-operative society.
(2) Where a liquidator has been appointed by the Registrar under section 100, the Registrar shall consider the report of the liquidator regarding the winding up of the co-operative society and shall, if necessary, by order cancel its registration.
(3) After an order has been issued under sub-section (1), or sub-section (2), the co-operative society shall be deemed to have been dissolved and have ceased to exist as a corporate body on and from the date
(1) When any property is mortgaged to a co-operative land development bank for payment of a prior debt or part thereof of a mortgagor, the co-operative land development bank shall, notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882, by serving a notice in writing in the pres-cribed manner require any person to whom such debt is due to receive payment of such debt or part thereof from it within such period as may be specified in the notice.
(2) The person on whom a notice is served under sub-section (1) shall be bound to receive payment of the amount tendered by the co-operative land development bank. If there is a disagreement between the mortgagor and such person as regards the amount of the debt, the receipt of the sum tendered by the co-operative land development bank shall not prejudice the r
Subject to the provisions of section 104 and the rules, a co-operative land development bank shall receive applications for loan made in the prescribed manner and deal with such applications in accordance with the rules before granting the loan.
Notwithstanding anything contained in any other law for the time being in force, a mortgagor shall not be entitled to transfer or create a charge on the property mortgaged to a co-operative land development bank without the concurrence of the co-operative land development bank:
Provided that the co-operative land development bank shall not give its concurrence without the previous sanction of the financing bank :
Provided further that the financing bank shall, if it accords sanction, send a copy thereof to the Trustee, if any, appionted under section 44.
Notwithstanding anything contained in any law relating to insolvency for the time being in force, a mortgage executed in favour of a co-operative land development bank shall not be called in question on the ground that it was not executed in good faith for valuable consideration or on the ground that it was executed in order to give the co-operative land development bank preference over the creditors of the mortgagor.
A mortgage executed in favour of a co-operative land development bank before or after the commencement of this Act shall have priority over loans of the State Government under the Land Improvement Loans Act, 1883 or the Agriculturists' Loans Act, 1884 granted after the execution of the mortgage and over all other registered or unregistered transfers effected on any account.
(1) Where a co-operative credit society has granted a loan for improvement of any land to any person who, in the opinion of the co-operative credit society, has title to the said land or is in lawful possession thereof and the amount of the loan has been utilised wholly or in part for such improvement, any other person taking such land under a superior title or otherwise shall be liable to repay to the co-operative society so much of the loan as established to have been utilised for the improvement of the land as if that other person had executed the Gehan under section 53 for such part of the loan and shall be deemed to be the debtor to that extent for the purpose of enforcing the Gehan by sale or otherwise.
(2) The Gehan executed or deemed to have been executed in favour of, and all other assets charged to, a primary co-operative cre
(1) If any sum due as an instalment or part of an instalment payable under mortgage in favour of a cooperative land development bank, central co-operative bank or primary co-operative credit society has remained unpaid for more than one month from the date on which it fell due, the bank or the co-operative society, as the case may be, may, in addition to any other remedy available to it, apply to the Registrar for the recovery of such sum by distraint and sale of not more than half the produce of the mortgaged land, including the standing crops thereon.
(2) Upon receipt of such application, and notwithstanding anything contained in the Transfer of Property Act, 1882, the Registrar may, subject to the provisions of this Act and the rules, take such action as is deemed necessary to distrain and sell the produce or such portion thereof as
(1) Theproceeds of any distraint and sale under section 110 shall be applied as follows:
(1) First, there shall be paid to the co-operative land development bank or the central co-operative bank or the primary co-operative credit society, as the case may be, at the prescribed rate
(a) the costs of the sale; and
(b) the other expenses incurred on account of the distraint.
(2) Secondly, there shall be paid to the bank or the co-operative society, as the case may be, the amount for which the distraint was made and there shall be given to the person whose property has been sold a receipt for the amount so paid.
Figures and brackets "[1]" om. by W.B. Act 21 of 1990. *** Notwithstanding anything contained in any other law for the time being in force, where a power of sale and delivery of possession in respect of the property sold, without the intervention of any court, is expressly conferred on a co-operative land development bank or a central cooperative bank or an apex housing society, by a mortgage deed in favour of the bank or the society, as the case may be, if any instalment under such mortgage is not paid in full on the date on which it falls due, the board of directors of the bank or the society, as the case may be, shall, in addition to any other remedy available to it, have the power, subject to the provisions of this Act and the rules, to bring the mortgaged property to sale and to deliver possession of the property sold to the purchaser without the intervention of any court.
(1) A co-operative land development bank or a central co-operative land development bank or a central co-operative bank or an apex housing soriety or a cooperative housing society shall be competent to purchase any mortgaged property sold under this Chapter but such property shall be disposed of by such co-operative land development bank or central co-operative bank or apex housing society or a co-operative housing society, as the case may be, by sale within the prescribed period or, where a Trustee has been appointed, within such period as the Trustee may specify in accordance with the rules.
(2) The provisions of sections 14M and 14Q of the West Bengal Land Reforms Act, 1955 shall not apply to land acquired by a co-operative land development bank or central co-operative land development bank or central co-operative bank or apex housi
The title of a purchaser of any property sold under this Chapter shall not be questioned in any court by any mortgagor or his successor-in-interest.
For the purpose of conduct of sale and delivery of possession of any peoperty sold under this Chapter the Registrar may, where no Receiver has been appointed by any court in respect of such property, appoint a Receiver in accordance with the provisions of the Transfer of Property Act, 1882 and determine his remuneration in the manner prescribed.
(1)If any property mortgaged under this Chapter is destroyed wholly or in part or if the security for any loan is found to be insufficient on valuation in the manner provided in the rules or the by-laws, the mortgagor shall be required on the service of a notice on him in the prescribed manner, to furnish such further security, and within such period, as may be specified in the notice.
(2) If the mortgagor fails to furnish such further security within specified period, the entire amount of the loan together with the interest accrued thereon shall fall due at once and the co-operative land development bank or the central co-operative land development bank or the central co-operative bank or the apex housing society shall, subject to the rules, be entitled to take action for recovery thereof under this Chapter.
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A Trustee and, in the case of a member co-operative society, a central co-operative land development bank may, in accordance with the rules and by order, direct a co-operative land development bank to take action against a defaulter under this Chapter within such period as may be specified in the order. If the co-operative land development bank fails to take such action within the specified period, the Trustee or the central co-operative land development bank, as the case may be, may take such action and the provisions of this Act and the rules or the by-laws shall apply in respect thereto, as if all references to the cooperative land development bank were references to the Trustee or the central co-operative land development bank, as the case may be.
At any sale of movable or immovable property held under the provisions of this Chapter, no officer of a cooperative land development bank or central co-operative land development bank or central co-operative bank or apex housing society or sale officer or other person having any duty to perform in connection with such sale shall directly or indirectly bid for or acquire or attempt to acquire any interest in such peoperty on his personal account.
(1) Notwithstanding anything contained in the Registration Act, 1908 it shall not be necessary for a Trustee or for any officer of a co-operative land development bank or central co-operative bank or primary co-operative credit society or central co-operative land development bank or apex housing society or of any such class of co-operative societies as may be prescribed to appear in person or by agent at any registration office in any proceeding connected with the registration of any instrument executed by him in his official capacity or to sign as provided in section 58 of that Act.
(2) Where any such instrument is presented for registration, the registering officer may, if he thinks fit, refer to the Trustee or to the officer as aforesaid for any information relating thereto and, on being satisfied about the execution thereof, shall
(1) Where a co-operative land development bank or a primary co-operative housing society or a primary co-operative credit society advances money on a mortgage, hypothecation. Gehan or any other charge out of the funds borrowed, wholly or in part, from the central co-operative land development bank or the apex housing society or a financing bank, as the case may be, such mortgage, hypothecation, Gehan or any other charge shall be deemed, with effect from the date of execution thereof, to have been transferred by the co-operative land development bank or the primary co-operative housing society or the primary co-operative credit society to the central co-operative land development bank or the apex housing society or the financing bank, as the case may be, and such mortgage, hypothecation, Gehan or any other charge which shall be deemed to have been transferred to the central co-operative land development bank shall be deemed to
(1)Where a mortgage executed before or after the commencement of this Act in favour of a co-operative land development bank is called in question on the ground that it was executed by the manager of a joint Hindu Family for a productive purpose not binding on the members thereof, the burden of proof shall, notwithstanding anything contained in any other law for the time being in force, rest on the person who calls the mortgage in question.
(2) For the purpose of this section, the expression "productive purpose" within the meaning of clause (ii) of the Explanation to clause (12) of section 2 shall be deemed to be a purpose binding on the members (major or minor) of a joint Hindu Family.
The special provisions for the co-operative land development bank contained in this Chapter shall apply, mutatis mutandis, to the branches of the central cooperative land development bank in so far as they perform the functions and discharge the duties of a primary co-operative land development bank.
The provisions of sections 116, 117 and 120 shall apply, mutatis mutandis, to loans issued against a Gehan or immovable property and hypothecation of assets created with the help of loan.
(1) The Registrar and, subject to any restrictions prescribed, an audit officer, arbitrator or any person conducting an inspection or inquiry under Chapter X shall, at all reasonable times, have free access to books, accounts, documents, securities, cash and other properties belonging to, or in the custody of, a co-operative society.
(1) The Registrar and, subject to any restrictions prescribed, a Government officer deputed under section 28 or a committee appointed under section 29 or an administrator appointed under section 30 to manage the affairs of a co-operative society or an audit officer, arbitrator, liquidator or any person conducting an inspection or inquiry under Chapter X shall, in so far as necessary for carrying out any of the purposes of this Act, have power to summon and to enforce the attendance of witnesses and parties concerned and to examine them upon oath and to compel the production of any books, accounts, documents, securities, cash and other properties by the same means and so far as may be in the same manner as provided in the Code of Civil Procedure, 1908.
(2) Where any person summoned under sub-section (1) fails or refuses to produce any b
(1) If the board of a co-operative society or a Government officer deputed under section 28 or an administrator appointed under section 3.0 or a special officer appointed under section 31 or a liquidator appointed under section 100 is resisted in, or prevented from, taking possession of any books, accounts, documents, securities, cash or other properties of a co-operative society by any person not entitled to be or to remain in possession of the same, the Registrar or any person authorised by him in this behalf may, without prejudice to the penal measures provided in this Act, apply to any Metropolitan Magistrate or Judicial Magistrate of the first class within whose jurisdiction such books, accounts, documents, securities, cash or other properties may lie for seizing and taking possession of the same.
(2) On receipt of an application
Where it appears to the Registrar that any person or any co-operative society, with intent to defeat or delay the execution of any order that may te made under this Act,-
(a) is about to dispose of the whole or any part of his or its property, or
(b) is about to remove the whole or any part of his or its property from the local limits of the jurisdiction of the Registrar, the Registrar may, by order in writing, direct such person or co-operative society within a time to be fixed by him either to furnish security in such sum as may be specified in the order or to produce and place at the disposal of the Registrar, when required, the said property or the value of the sums or such portion thereof as may be considered sufficient by the Registrar or to show cause why he or it should not furnish
Notwithstanding anything contained in Chapter XI, the Registrar or any person empowered under the rules may, of his own motion Or on the written requisition of a co-operative society or the financing bank for the recovery of any sum due by a defaulting member (including a deceased member) of a co-operative society, after such inquiry as he may consider necessary or expedient, make an award directing such member or his surety who may or may not be a member of the co-operative society or the successor of a deceased member to make payment of the amount found to be due.
(1) Where, on an audit under section 90 or an inspection under section 92 or an inquiry under section 93 or an inquiry by a commission constituted under the Commissions of Inquiry Act, 1952 or an inquiry by an inquiry committee constituted by the State Government or a report from the liquidator, it appears to the Registrar that any officer (including a former officer) of any co-operative society has [at any time] after the commencement of this Act and within six years prior to the date of such audit, inspection, inquiry or report, as the case may be,
(a) intentionally made or authorised or allowed any payment which is, or may be deemed to be, contrary to the provisions of this Act or the rules or the by-laws or any other law for the time being in force, or
(b) by reason of negligence in res
Where it appears to the Registrar that any person has contravened the provisions of this Act or the rules or the by-laws
(a) by sitting or voting as a director of the board of a co-operative society or voting in the affairs of a co-operative society as the representative of another co-operative society which is a member of such co-operative society or exercising the rights of a member of a co-operative society, when such person was not entitled to sit or vote or exercise such rights, as the case may be,
(b) by continuing as an officer 55. Words inst. by W.B. Act 21 of 1990. [or office-bearer] of a co-operative society after incurring disqualification therefor,
(c) by utilising a loan for a purpose ot
Notwithstanding anything contained elsewhere in this Act,when a co-operative society fails to take any action required to be taken by it under this Act or the rules or its by-laws
(a) within such period as may be specified in this Act or the rules or the by-laws, or
(b) where no such period is specified within such period as the Registrar may, having regard to the nature and extent of the action to be taken, specify by notice in writing, the Registrar may himself or by any person authorised by him in this behalf take such action at the expense of the co-operastive society or may call upon any officer of the co-operative society, whom he considers in accordance with the prescribed principles to be responsible for carrying out his directions, and may, after giving such officer an opportunity
Any sum payable to the State Government or to the co-operative society in accordance with any order, decision or award under this Act shall be recoverable in the manner provided in the Second Schedule to this Act or as the decree of a Court under the Code of Civil Procedure, 1908:
Provided that notwithstanding anything contained in the Code of Civil Procedure, 1908 or in any other law for the time being in force, any sum payable in accordance with an award made under section 128 shall be recoverable
(a) if the salary or wages of the member of the co-operative society or of his surety exceeds one hundred and fifty rupees per mensem, by attachment of such salary or wages to the extent of the instalment in default or half the difference between such salary or wages and fifty rupees, whichever
(1) No act of a co-operative society or its board or any officer or liquidator of such co-operative society done in good faith in connection with the affairs of such co-operative society shall be invalidated by reason only of some defect subsequently discovered in the organisation or in the constitution of the board or in the appointment of such officer or liquidator or on the ground that such officer or liquidator was disqualified for such appointment.
(2) No act done in good faith by any person appointed under this Act shall be invalid merely by reason of the fact that his appointment has been cancelled by or in consequence of any order subsequently made under this Act.
(3) The Registrar shall decide whether any act was done in good faith in c
(1) No suit, prosecution or other legal peoceeding shall lie against the Registrar or any person authorised by him or against a Trustee in respect of anything done or purported to be done in good faith under this Act.
(2) Save as provided in this Act, no Civil Court or Revenue Court shall have jurisdiction [in regard to anything done or any action taken or any order passed under this Act and, in particular,] in regard to (a) the registration of a co-operative society or its by-laws or an amendment of its by-laws; or (b) the dissolution or the supersession of the board of a co-operative society and the management of such co-operative society on such dissolution or supersession; or (c) any directive issued by the State Government under section 49; or (d) any dispute [required to be] referred to the Registrar under section 95; or (e) any
(a) The State Government may by notification constitute one or more co-operative Tribunals. A Tribunal shall consist of such number of persons 99. Words and brackets inst. by W.B. Act 21 of 1990. [(including a Chairman)] possessing such qualifications and shall have such jurisdiction as may be prescribed.
(b) When nore than one Tribunal is constituted under clause (a), the State Government shall declare by notification one of the Tribunals to be the Principal Tribunal.
(2) A Tribunal shall exercise all the powers conferred upon an Appellate Court by Order XLI in the First Schedule to the Code of Civil Procedure, 1908.
(3) Any person aggrieved by an order made by a Tribunal may, within ninety days from
(1) An appeal shall lie from an order shown in column 2, to the authority shown in column 3, and within the period shown in column 4, of the Third Schedule to this Act.
(2) The provisions of the Limitation Act, 1963 shall not apply to an appeal referred in sub-section (1).
(3) Save as provided in this Act or the rules, no appeal shall lie against an order, decision or award made under this Act.
(4) An appeal referred to in sub-section (1) shall be decided by the appellate authority (other than the Co-operative Tribunal) within six months from the date of its presentation :
&n
(1) The State Government may, of its own motion or on an application made in the prescribed manner by any person aggrieved, call for and examine the records of any inquiry held or inspection made under this Act or the proceedings of the Registrar or of any person subordinate to him or acting on the authority of the Registrar and may make thereon such orders as it thinks fit after serving notices to persons likely to be affected by such orders.
(2) The Registrar may, of his own motion or on an application made in the prescribed manner by any person aggrieved,
(a) revise any order made by himself, or
(b) call for and examine the records of an inquiry held or inspection made under this Act or the procee
In addition to the penalties specified in sub-section (3) of section 147, any person mentioned in column 3 and guilty of an offence shown in column 2 of the Fourth Schedule to this Act shall, notwithstanding anything contained elsewhere in this Act or any other law for the time being in force, be liable on conviction to the penalty shown in column 4 of the said Schedule.
(1) No Court inferior to the Court of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence under this Act.
(2) For the purpose of the Code of Criminal Procedure, 1973, every offence under this Act shall be deemed to be non-cognizable.
(3) No prosecution shall be instituted under this Act without the previous sanction of the Registrar.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence punishable under section 403 of the Indian Penal Code in respect of any movable property of a co-operative society shall be cognizable.
&nb
(1) Aregister of members or shares maintained by a co-operative society in the prescribed manner shall be prima facie evidence of
(a) the date on which the name of any person has been entered in such register as a member of such co-operative society, and
(b) the date on which any such person has ceased to be a member of such co-operative society.
(2) If for any person the register of members or shares is not available, the detailed list of members with shareholding enclosed with the audit re- port, if any, shall be treated as prima facie evidence of membership as on the date the balance sheet is drawn up.
(1) A copy of any entry in a book of a co-operative society regularly kept in the course of its business and in the prescribed manner shall, if certified in the prescribed manner, be accepted in any suit or legal proceeding as a prima facie evidence of the existence of such entry in such book and shall be admitted as evidence of the matters, transaction and accounts therein recorded in every case where, and to the same extent as, the original entry is admissible.
(2) No officer or liquidator of a co-operative society or no other officer in whose custody the books and other records of a co-operative society have been kept after the co-operative society has been wound up shall, in any legal proceeding to which the co-operative society or the liquidator thereof is not a party, be compelled to produce any such books or other records the co
Any officer or employee or member of a co-operative society who
(a) sanctions or receives, as the case may be, any benami loan, or
(b) accepts or obtains or induces to accept or attempts to obtain from any person for himself or for any other person any gratification as a motive or reward as is mentioned in section 161 of the Indian Penal Code, or
(c) signs the minutes of any meeting of the co-operative society without attending such meeting, or
(d) dishonestly or fraudulently misappropriates or otherwise converts for his own use any property of the co-operative society entrusted to him or under his control or
This Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force or in any contract express or implied or in any instrument having effect by virtue of any enactment.
Such co-operative societies as may be prescribed shall get themselves insured within such time and in such manner as may be prescribed.
Notwithstanding anything contained elsewhere in this Act, the Registrar shall not take any action under this Act in respect of an insured co-operative bank without obtaining previous sanction of the Reserve Bank, of India and without compliance with the requirements of the Deposit Insurance Corporation Act, 1961,
Explanation. "Insured co-operative bank" shall mean a co-operative bank which is an insured bank within the meaning of clause (1) of section 2 of the Deposit Insurance Corporation Act, 1961.
The State Government may, with the approval of the Central Government, by notification, add to the Fifth Schedule any other co-operative society and thereupon the Schedule shall be deemed to be amended accordingly.
(1) The State Government may, after previous publication in the Official Gazette, make rules for carrying out the purposes of this Act for the whole or any part of West Bengal or for any cooperative society or class of co-operative societies:
Provided that any such rules may be made without previous publication if the State Government is of opinion that in the public interest such rules should be brought into force at once.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the matters which may be, or are required to be, prescribed or made by rules.
(3) Any rule made under this Act
Power exclusively exercisable by the Registrar
[See section 10 (1).]
Serial No.
Section 2
Power 3
1.
Sub-section (1) of section 47
To sanction granting of loan by a co-operative society to another co-operative society which is not its member.
2.
Recovery of sums due
(Sec section 132.)
Serial
No. 1
Nature of sums due 2
Method of recovery 3
1.
Audit fee payable under sub-section (1), and the expenses for completing the accounts payable under sub-section (5) of section 90.
By the Certificate Officer as a public demand upon requisition
Appeals
Serial No.1
Appeal lies against
2
By whom appeal may be referred 3
Authority to whom appeal shall lie
4
Period of limitation
5
1.
[An order] of division or transfer of assets and liabilities of a co-operative society under section 19.
Offences and penalties
(See section 138.)
Serial No.
1
Offence
2
Person liable
3
Penalty
4
Co-operative Societies
[See section 31(a).]
Serial No.
1
Name of co-operative society
2
1.
Apex Society.
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