WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 2006
(1) This Act may be called the West Bengal Co-operative Societies Act, 2006.
(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 in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.
(1) It shall be the policy of the State to promote Co-operative societies, which are instruments of equity, social justice and economic development in fulfilment of the Directive Principles of the State Policy as enshrined in the Constitution of India.
(2) Save as otherwise expressly provided in this Act, the State shall not interfere in the management and operation of the Co-operative societies and shall recognise Co-operative societies as democratic institutions owned, managed and controlled by members for their economic and social betterment, operating their business based on mutual aid and Co-operative principles.
The following shall constitute the Cooperative principles :-
(i) membership in Co-operative societies shall be voluntary and available irrespective of caste, creed, race and religion to all persons who can make use of its services and are willing to accept the responsibilities of membership;
(ii) Co-operative societies are democratic organisations controlled by their members who actively participate in setting their policies and making decisions. Their affairs shall be managed and administered by persons elected or appointed in the manner agreed by the members and accountable to them. Every member of a Cooperative society, other than a nominal member, shall have equal right of voting in accordance with the principle of "one member, one vote";
(iii) member holding share capital shall only recei
In this Act, unless there is anything repugnant in the subject or context,-
(1) "administrator" means an administrator appointed under section 35;
(2) "apex Co-operative society" means a Co-operative society whose 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 for the operation of other Co-operative societies which are its members and includes West Bengal State Co-operative Bank Limited and West Bengal State Co-operative Agriculture and Rural Development Bank Limited;
(3) "arbitrator" means an arbitrator appointed under section 103 and includes a board of arbitrators and a forum of arbitrators;
(4) "area of membership" means the area as specified in the by-la
Unless otherwise specified in this Act-
(a) expressions referring to writing include printing, typing, lithography, photography, photocopy, e-mails, fax and other method of representing or reproducing words in a visible form; and
(b) with reference to a person who is unable to write his name, the words "signature" shall include his thumb impression or other mark duly attested to signify his signature.
(1) The West Bengal Co-operative Societies Act, 1983 (West Ben. Act XLV of 1983) is hereby repealed.
(2) Notwithstanding such repeal anything done or suffered or any action taken including any rule made, and 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 (2 of 1912) or the Bengal Co-operative Societies Act, 1940 (Ben. Act XXVI of 1940) or the West Bengal Co-operative Societies Act, 1973 (West Ben. Act XXXVIII of 1973) or the West Bengal Co-operative Societies Act, 1983 (West Ben. Act XLV of 1983) shall be deemed to have been done or suffered or taken under this Act, as if
All reference to the Co-operative Societies Act, 1912 or to the Bengal Co-operative Societies Act, 1940 or the West Bengal Co-operative Societies Act, 1973 or to the West Bengal Co-operative Societies Act, 1983 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 reference 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, 1940 or to the West Bengal Co-operative Societies Act, 1983 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 provision of the Companies Act, 1956 shall not apply to Co-operative societies.
(1) 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.
(2) Any violation of the provision of sub-section (1) shall constitute an offence punishable with imprisonment for a term which may extend to two years or with fine which may extend to five thousand rupees or both.
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, 1860 (45 of 1860).
(1) The State Government may, by notification, for such reasons as may be prescribed, to be recorded in writing, exempt any Co-operative society or class of Co-operative societies or any other institution under this Act from the operation of any of the provisions of this Act, considered unsuited thereto and thereupon the said provisions shall not apply to such Co-operative society or class of Co-operative Societies or any other institutions under this Act until such provisions are applied thereto by notification:
Provided that no notification to the prejudice of any Co-operative society or class of Co-operative societies or any other institution under this Act shall be issued without an opportunity being given to it to represent its case. 1[ * * *] :
1. The words "Such opportunity of hearing has to be notified inviting objection, if any
(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 Director of Cooperative Audit for West Bengal and such number of other persons to assist him as it may deem fit.
(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, or the Registrar under this Act, other than those specified in the First Schedule, on any person appointed under sub-section (1) of section 12 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 Director of Co-operative Audit under this Act, other than those specified in the Sixth Schedule, on any person appointed under sub-section (2) of section 12 to assist the Director of Co-operative Audit.
(1) Subject to the provisions of this Act and rules, a Co-operative society established with the object of social and economic betterment of its members in their common interest through self-help and mutual aid in accordance with the 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 or reorganisation of two or more Co-operative societies with the approval of their members may be registered under this Act with limited liability.
(2) A Co-operative society shall be registered 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
(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 its, shall be registered under this Act or violate the provisions of existing laws of the land.
(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 no 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 specially debar admission as its member of a person who is a grocer by profession; and (c) no industrial Co-operative society shall be registered if the by-laws thereof do no
(1) An application for registration of a Co-operative society in 1[in Form along with fees as may be prescribed] and its by-laws shall be submitted to the Registrar by hand or by registered post with acknowledgement due with one copy to the District Co-operative Union in the case of the Co-operative society having its area of membership within a district and to the State Co-operative Union in more than one Co-operative range.
1. Subs, by s. 3 of the West Bengal Co-operative Societies (Second Amendment) Act, 2013 (West Ben. Act VII of 2013) (w.r.e.f. 19.2.2013) for the words "in form as prescribed".
(2) Every such application shall be accompanied by-
(a) four copies of the proposed by-laws of the Co-operative society as adopted by the promoting members;
&
(1) The registration of a Co-operative society shall render it a body corporate by the name under which it is registered, having a perpetual succession and a common seal and the Co-operative society shall be entitled to acquire, hold and dispose of property, to enter into contracts on its behalf, to institute and defend suits and other legal proceedings, and to do all other things necessary to achieve its objectives.
(2) All transactions entered into in good faith prior to registration of the purposes of the Co-operative, shall be deemed to be transactions of the Cooperative society after registration.
(1) Every Co-operative society shall display its name and the address of its registered office along with the registration number in legible character in a conspicuous position -
(a) at every office or place at which it carries on business;
(b) in all notices and other official publications;
(c) on all its contracts, business letters, orders for goods, invoices, statements of accounts, receipts and letters of credit; and
(d) on all bills of exchange, promisory notes, endorsements, cheques and orders for money it signs or that are signed on its behalf.
(2) The name of every Co-operative society shall contain the words ’Cooperative’ and ’limited’ or their equivalent in the official language of the State.
1[(1) A Co-operative society may by resolution in general meeting adopted by two-thirds of the members or delegates or representatives present but not less than one-third of the total number of members or delegates or representatives as on the register of members, or delegates or representatives on the date of issue of notice of such general meeting amend its by Laws.]
1. Sub-section (1) subs. by s. 5 of the West Bengal Co-operative Societies (Amendment) Act, 2011 (West Ben. Act XIV of 2011) (w.e.f. 6.2.2012), which was earlier as under:
"(1) A Co-operative society, may, by resolution in general meeting, adopted by two-third of the total members or delegates or representatives amend its by-laws.".
(2) 2[An application in such form along with such fees as may be prescribed] for registration of
(1) By-laws to be made on such specific matter which the Act has provided for and under the provision of this Act on such other matters and such by-laws shall not be valid unless they have been registered under the Act.
(2) Subject to provision of this Act, the function of every co-operative society shall be regulated by its bye-laws
(3) The by-laws of the Co-operative society may provide for the following matters as may be decided by the general body:
(a) Identification of the Co-operative -
(i) the name, address and registration number of the Co-operative;
(ii) the custody and use of the common seal;
(iii) the area of membership.
(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 societies; 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 as certified by the Audit Officer of the Co-operative societies forming such new Co-operative society.
(3)
(1) Unless otherwise directed by the State Government and 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 Co-operative movement or for the purpose of securing the proper management of any Co-operative society that any Cooperative society or Co-operative societies should be divided, reorganised or amalgamated then notwithstanding anything contained in section 21, the Registrar may by a notice direct the said Co-operative society or Co-operative societies stating therefor, 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 of the notice. If the direction is not acted upon or complied within the said period, the Regi
(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 Gazette stating reasons therefor, make a sch
(1) A Co-operative society may, with the previous approval of the Registrar, by a resolution passed at a general meeting change its name by two-third majority of members present and voting.
(2) A Co-operative society shall communicate its new name by 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 subsection (5) of 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.
(1) Any Co-operative society may, by a resolution passed at a general meeting by a two-third majority of members present and voting, promote one or more subsidiary organisation for the furtherance of its stated objectives, and such organisation or organisations may be registered under any law for the time being in force, as agreed to by the general body.
(2) The annual reports and accounts of any such subsidiary organisation 1[shall be placed before the general meeting] of the promoting Co-operative societies each year.
1. Subs. by s.6 of the West Bengal Co-operative Societies (Amendment) Act, 2011 (West Ben. Act XIV of 2011) (w.e.f. 6.2.2012) for the words "shall replace before the general meeting.".
(3) Any subsidiary organisation created under sub-section (1) shall exist only as long as the
Any two or more Cooperative societies may, by resolution passed at general meetings by a majority of members present and voting in each of such Co-operative societies, enter into a contract of partnership for carrying on any specific business permissible under the bye-laws of such Co-operative societies on such terms and conditions as may be mutually agreed upon. Such partnership of Co-operative societies shall be governed by the provisions of the Indian Partnership Act, 1932 (Act 9 of 1932).]
2. Section 26 subs. by s. 7, ibid (w.e.f. 6.2.2012), which was earlier as under:
"26. Partnership of Co-operative societies. - Any two or more Co-operative societies may, by resolution passed at general meetings by a majority of members present and voting in each such Co-operative society, enter into a contract or partnership for carrying out any s
(1) The general body of a Co-operative society shall consist of all the members of such society.
(2) Where the by-laws of a Co-operative society provide for constitution of a smaller body consisting of delegates of members of the Co-operative society elected in accordance with such by-laws, the smaller body shall exercise all powers of the general body in a general meeting.
(3) Where other Co-operative societies are members of a Co-operative society, the representative from the members Co-operative societies elected in a meeting of respective boards of such Co-operative societies shall exercise all powers of the general body in a general meeting.
Subject to the provisions of this Act, the final and ultimate authority of a Co-operative society shall vest in the general body of its members or its delegates or representatives elected under section 29 of this Act and assembled in a general meeting:
Provided that where the by-laws of a Co-operative society so provide for representation of self-help group in any meeting of the general body of the Cooperative society, such self-help group shall be represented through one of its members elected in a meeting of the self-help group.
1[(1) Every Co-operative society shall hold such number of general meetings of its members or delegates or representatives in a Co-operative year as may be prescribed to transact such business as may be considered necessary by the board and the annual general meeting of its members or delegates or representatives within a period of six months of close of the Co-operative year to transact such business as provided in this Act.]
1. Sub-section (1) subs. by s. 5(1) of the West Bengal Co-operative Societies (Second Amendment) Act, 2013 (West Ben. Act VII of 2013) (w.r.e.f. 19.2.2013), which was earlier as under:
"(1) Every Co-operative society shall hold a general meeting of its members or delegates or representatives in every Co-operative year in accordance with a fixed programme as mentioned in the table below and such general meeting sha
(1) A half-yearly general meeting of a Co-operative society shall be called at any time after six months but within eight months from the date of last annual general meeting for the following purposes :-
(a) to review of the activities of the Co-operative society on the basis of the report placed by the board;
(b) to consider audit report, if any;
(c) to review financial position on the basis of provisional accounts;
(d) any other item as may be specified in the by-laws.
(2) A half-yearly general meeting shall be called in accordance with the provisions of sub-section (1) of section 29.
(1) A special general meeting of a Cooperative society may be called at any time for the following reasons :-
(a) where the board decides to call a special general meeting on urgent matter or under sub-section (1) of section 29;
(b) where at least one-third of the members or delegates or representatives of the Co-operative society place before the board a requisition in writing for discussion and decision on a specific object including a call for adoption of resolution in a special general meeting for no confidence against the board or its reconstitution before the expiry of the full term of five years.
1[(c) if Registrar decides to call a special general meeting to transact any specified business.]
1. Clause (c) ins. by s. 9 of the West Bengal Co
(1) There shall be a board of directors 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 included in the board in the following manner to constitute it -
(a) by election of directors in accordance with the provisions of section 29 from amongst the members or delegates or representatives of the Co-operative society :
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 1[twenty-one] :
1. Subs. by s. 6(1) (a)(i) of the West Bengal Co-operative Societies (Second Amendment) Act, 2013 (West Ben. Act VII of 2013) (w.r.e.f. 19.2.2013) for the word "fifteen".
&nbs
(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 Co-operative 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 the agency is give 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, on such conditions and in such manner as may be prescribed. Such Government officer shall e
(1) The Registrar may, if he is satisfied, for reasons to be recorded in writing, that the board of any Cooperative society is mismanaging its affairs, under clause (a) of sub-section (1) of section 35, by order direct to call a special general meeting of the Cooperative society to dissolve the board and reconstitute it within such periods may be specified in the order.
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 appointmen
2[(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, no board shall be superseded or kept under suspension for a period exceeding six months:
Provided that in case of a Co-operative society carrying on the business of banking, the provisions of this section shall have the effect as if for the words "six months", the words "one year" had been substituted.]
1. Marginal heading subs. by s. 7(1) of the West Bengal Co-operative Societies (Second Amendment) Act, 2013 (West Ben. Act VII of 2013) (w.r.e.f. 19.2.2013), which was earlier as under:
"Dissolution of the board and appointment of administrator".
2. Sub-section (1) subs. by s. 7(2) ibid (w.r.e.f. 19.2.2013), which was earlier amended by s.11 (a) of
(1) Notwithstanding anything contained elsewhere in this Act or in any other law for the time being in force, where election of the board of directors of any Cooperative society has not been held within a period of thirty-six months from the date of their election where such election was held before the date of commencement of this Act or within a period of sixty months from the date of their election under sub-section (1) of section 29 of this Act, the directors of the board of such Co-operative society shall be deemed to have vacated their offices immediately on expiry of the period of thirty-six months from the date of their election where such election was held before the date of commencement of this Act or sixty months from the date of their election under sub-section (1) of section 29 of this Act, as the case may be, and the State Government shall, thereupon by notification, appoint special officer from amongst its offi
The West Bengal Co-operative Societies Act, 2006, aims to regulate the functioning of co-operative societies in West Bengal. Section 36 specifically addresses the expiry of the term of the board of directors and the appointment of a special officer to manage the affairs of the society in such instances.
Section 36 outlines the procedure to be followed when the term of the board of directors of a co-operative society expires. It provides for the appointment of a special officer to oversee the society's operations until a new board is elected.
The scope of Section 36 is significant as it ensures continuity in the management of co-operative societies. It allows for the appointment of a special officer to prevent any operational vacuum that may arise due to the expiration of the board's term.
While Section 36 itself does not prescribe specific punishments, it is part of a broader legal framework that may impose penalties for non-compliance with the provisions of the Act.
1[(1)] Notwithstanding anything contained in the by-laws of a Co-operative society, the Registrar or any person authorised by him specifying reasons in writing in his 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 with such agenda and 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 and furnish the proceedings thereof to the Registrar or the person authorized within a week of holding of such meeting, the Registrar or the person authorised by him shall summon the meeting of the board and such meeting shall be deemed to have summoned in accordance with the by-laws of the Co-operative society and shall be competent to transact such business as may be specified in the summons.
1. Ins. by s. 13 of the We
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 such community, class or group of persons which, in the opinion of the State Government, are socially, economically or educationally backward.
(1) Every Co-operative society shall mention in the by-laws its address indicating place of business, post office, police station, district which shall be taken to be the registered office of the Co-operative society to which all notices and communications may be sent.
(2) A change of the registered office shall be reported by the Co-operative society along with the resolution of the board by registered post with acknowledgement due or by hand delivery with acknowledgement to -
(a) the Registrar;
(b) the Director of Co-operative Audit;
(c) financing bank, if any;
(d) the Co-operative society to which this Co-operative society is affiliated;
(e) the Reserve Bank
The State Government may for the 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 Cooperative movement in general.
Every Co-operative society shall keep open to inspection by its members, free of charge, during office hours, at its address, such books 1[information and accounts of the Co-operative society kept in regular transaction of its business with members] 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. Ins. by s. 9 of the West Bengal Co-operative Societies (Second Amendment) Act, 2013 (West Ben. Act VII of 2013) (w.r.e.f. 19.2.2013).
(1) The members of a Co-operative society shall participate in the management of the Co-operative society by attending at least such number of meetings of the Co-operative society as may be prescribed and utilize the minimum level of service.
(2) The State Government shall provide for the Co-operative education and training to the members of a Co-operative society in such manner as may be prescribed.]
1. Section 41A ins. by s.10 of the West Bengal Co-operative Societies (Second Amendment) Act, 2013 (West Ben. Act VII of 2013) (w.r.e.f. 19.2.2013).
(1) Every Co-operative society shall be required to be affiliated to be State Co-operative Union or the District Co-operative Union, as the case may be, and the central society or the respective apex society, as the case may be, 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) The Board of a Co-operative society may, from time to time, create posts of different categories of employees to assist the Co-operative society in the performance of its duties and discharge of its function and such creation of posts shall only be made with prior approval by the general body.
(2) The Board of a Co-operative society shall appoint, subject to the provisions of this Act, the rules and the by-laws, such officer and other employees in respect of which the posts are created under sub-section (1).
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 of debentures of one or more denominations repayable within twenty-five years and such debentures shall not be issued or re-issued save with the express authority of the State Government.
(2) The issue or re-issue of debentures shall be subject to the following conditions :-
(a) that such debentures are secured by mortgages or any other security like Hypothecation of assets, Government securities and others as may be prescribed, held by the Co-operative society and assigned to the trustee or secured by Gehan under section 55, and
(b) that the total amount payable in respect of the debenture does not exceed three-fourths of the total value of the mortgage or any other security like Hypothecation of assets, Government securities and others a
Upon the issue of debentures under sub-section (1) of section 45, the assets of a Co-operative society (including any mortgage which it holds by acceptance, assignment or transfer) shall vest in the Trustee arid 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.
(3) The provisions of section 45 shall, with such modifications as may be made by the State Gove
(1) Notwithstanding anything contained elsewhere in this Act, the State Co-operative Bank and the Central Co-operative Banks may issue preference share to persons friendly and supporting the cause of Co-operative movement at a fixed rate of dividend and on such terms, as may be decided by general body of such banks subject to prior approval of the Reserve Bank of India.
(2) The preference shareholders shall have no right to attend the general meeting and for election as directors of the Board of the bank.
(3) The preference shareholders shall be eligible to the dividend due at the fixed rate in respect of any period, whether a dividend has been declared by the bank on such shares for such period or not.
(1) An application for loan shall be in such form as may be prescribed by the board and shall state the purpose for which the loan is required.
(2) A member of a primary Co-operative society applying for loan shall furnish a full statement of his -
(i) property and debts;
(ii) a scheme in case of medium term or long term loan;
(iii) annual expenditure incurred and proposed to be incurred; and
(iv) surplus available for repayment of the loan applied for.
(3) For every loan, a member shall furnish such security as may be required under the by-laws of the Co-operative society.
(1) A Cooperative society may grant loans to its members subject to provision of section 49 :
Provided that a Co-operative society may also grant loans to its members, self-help groups for lending its members against the surety of the group.
(2) A Co-operative society except a Co-operative bank may grant loans and advances to a member against a tangible security.
(3) A Co-operative society may, with the approval of the general body, grant loans to any other Co-operative society which is not its member against a tangible security.
(4) A Co-operative society may grant loans and advances to a non-member depositor against the security of his time deposit not exceeding ninety per cent of the deposit.
(5) A Co-
Notwithstanding anything contained in any other law for the time being in force, the State Government may, subject to the rules,(a) grant loans to, take shares in, or give financial assistance in any other form to, any Co-operative society;
(b) guarantee the payment of share capital of any Co-operative society and dividends thereon at such rates as may be specified by the State Government; and
(c) guarantee the repayment of principal and payment of interest on loans and advances to any Co-operative society.
Notwithstanding the provisions of the Limitation Act, 1963 (36 of 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 Operation Act, 1973 (West Ben. Act XXXIV of 1973) and to any claim of the State Government in respect’ of land revenue, any debt or outstanding demand owing to a Cooperative 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 members, 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 writing of the Co
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;
(c) the land or the interest upon which a charge has been created under clause (a)
(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 54, makes an application to a Co-operative credit society for loan, he shall by 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 future 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 interes
The Registrar shall appoint a sale officer for conducting the sale in respect of the land covered by declaration under Gehan under section 55 in case of default. The sale officer shall conduct the sale in the prescribed manner.
Out of the sale proceeds of a sale under section 56, the land revenue or any sum recoverable as a public demand shall be paid first and then any amount due to the agriculture and rural development bank on account of any outstanding loan from the 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 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 profit 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 70 to 73 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 a deceased member 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 or the drawing and disbursing officer where applicable shall be competent to deduct from the salaries or wages and retiring gratuity or death gratuity payable to him by such employer or the drawing and disbursing officer where applicable 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. A copy of such agreement shall be furnished to the employer or the drawing and disbursing officer where applicable.
(2) Upon the execution of the agreement under sub-section (1), the employer or the drawing and disbursing officer where applicable shall on the requisition of the Co-operative society in writing and for so long as the
(1) Nothing in clauses (b) and (c) of sub-section (1) of section 19 of the Registration Act, 1908 (16 of 1908) shall apply :-
(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 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 trustee upon trust for the benefit of the holder of the debenture; or
(c) any endorsement upon, or transfer, of any debenture issued by any Co-operative society.
(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 or a member of a Co-operative society remit such tax, cess or fee by general or special order.
(2) (a) The State Government may, by notification, remit 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 remission such Co-operative society or class of Co-operative societies or the officer or member the
The settlement shall be made between Co-operative society and its creditor by the Board to be ratified by the General Body.
(1) Subject to the by-laws, the following persons shall be eligible for membership of a Cooperative society:-
(a) an individual competent to contract under section II of the Indian Contract Act, 1872 (9 of 1872) and a permanent resident of India;
(b) any other Co-operative society;
(c) the State Government;
(d) a self-help group;
(e) any financing bank:
Provided that a student who has not attained the age of majority according to the law shall be eligible for membership of Co-operative society formed in an education institution to which he belongs.
(2) An employee of the Co-operative society who is eligible under sub
(1) Any person eligible for membership under sub-section (1) of section 63 may apply to the Co-operative society for admission as a member thereof in the form and manner as prescribed.
(2) Every application for membership shall be disposed of by the Cooperative society within a period of forty-five days from the date of receipt of application. The decision of the Co-operative society on such application shall be communicated to the applicant within fifteen days from the date of such decision. If no such communication is received, the application shall be deemed to have been accepted on the expiry of sixty days from the date of receipt of the application by the Co-operative society.
(3) No Co-operative society shall, without sufficient cause refuse admission to any person duly qualified for membership under this Act and the by-laws of th
(1) Every member of a Co-operative society shall have one vote on any matter that is put to vote in the affairs of the Co-operative society in a meeting.
(2) Every member of a Co-operative society shall cast his vote in person.
(3) In the case of equality of vote in meeting the Chairman shall have second vote.
(4) Where two persons are joint members of a Co-operative society, the first named joint member or in his/her absence, the other joint member may attend the meetings of the Co-operative society and shall have right to vote at such meetings:
Provided that both the joint members shall not attend the meeting at a time.
(5) A Co-operative society which is a member of any other Co-operative society (here
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 58, the share or interest of a member in the capital of a Co-operative society or in the provident fund established under section 83 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 dissolution 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 bylaws:
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 dissolution of the Co-operative society, be limited to the amount paid in respect of such shares.
The liability of 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 death of the member, as the case may be, shall continue for a period of five years from the date or till finalisation of the legal proceedings, if any, started within the period of five years as aforesaid :
Provided that the legal heirs of the deceased member shall be liable for his debts to the extent of the estate inherited by them and such debts are recoverable from the legal heirs:
Provided further that where a Co-operative society is directed to be dissolved under section 107 within the period of five years as aforesaid such liability shall continue until the proceedings for dissolution of the Co-operative society ar
(1) On the death of a person who is a member of Co-operative society, his share or interest in the Co-operative society shall, subject to the provisions of section 58 and 72 and to the further provisions of this section, be transferred -
(a) to the nominee, if any; made under section 76; or
(b) if there is no nominee or if the existence or residence of the nominee cannot be ascertained by the board or if the nominee does not claim possession of such share or interest or if for any other reason, the transfer cannot be made within one year from the date of death, to the person who (subject to the production by such person of probate, letter of administration or succession certificate issued by a competent court having jurisdiction) appears to the board to be entitled to the possession of such share and interest as per of the estate of the
When a member of a Co-operative society is expelled or resigns in accordance with its by-laws or becomes insane, his share or interest in the capital of the Co-operative society shall be transferred to a person qualified to be a transferee of such share or interest under section 77, and the value thereof shall be paid to the member after deducting his dues, if any or in the case of his becoming insane, to such person as may be appointed by the competent authority to manage his properties under the Mental Health Act, 1987 (35 of 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 force:
(a) a member of a Co-operative society, the object of which is the reclamation or acquisition of land and 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 Cooperative society or with its previous approval in accordance with its by-laws, to a new 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, insanity or any other cause, his possession of or interest in, and land held by him under the Co-operative society shall vest in his heir, executor or administrator or in the person, if any, nominated by him under section 7
When an order is issued under section 106 for dissolution of a Cooperative society which is a member of a Co-operative society with limited liability and liquidator is appointed under section 110, the liquidator shall transfer the share or interest of the Co-operative society being dissolved, subject to the provisions of section 77, to any person or any other Co-operative society on 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 107 for dissolution 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 dissolution, be paid to the liquidator, o
(1) All sums, calculated in accordance with the provisions of 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 provision of section 58, 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 provision of section 70;
(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 mental health Act, 1987.
(2) All payments and transfers made by a
Where the liability of a member of a Co-operative society is limited by shares, no member other than State Government shall hold more than such portion of the share capital of the Cooperative society as may, subject to the maximum of one-fifth be prescribed in the by-laws of the Co-operative society and shall have any claim in the form of dividend or profit or return in respect of the shares of the Co-operative society in excess of the limit prescribed in the by-laws: Provided that the State Government may subscribe to the share capital of a Co-operative society up to a maximum of one-fourth of the paid up share capital.
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) The transfer or change of the share or interest by a member in the capital of the Co-operative society shall be subject to such condition as to maximum holding as may be prescribed and shall require the approval of the board.
(2) No transfer or change of a share or interest by a member of a Cooperative society with unlimited liability shall be valid unless-
(a) he has held such share or interest (save in the case of transfer under sections 70, 71,73 or 74) for not less than one year; and
(b) the transferee or the mortgagee is either a member of such Cooperative society or a person whose application for membership has been accepted by the Co-operative society.
(3) Where the State Government is a member of a Co-operative society the restriction un
(1) Shares held in a Co-operative society by the State Government shall be redeemable in such manner as may be agreed upon between the Co-operative society and the State Government.
(2) Redemption of shares referred to in sub-section (1) shall be on the face value of the shares.
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 Trust Act, 1882 (2 of 1882); or
(c) in the share or debenture or security of any other Co-operative society; or
(d) in the West Bengal State Co-operative Bank Limited; or
(e) in the Central Co-operative Bank of the area within which its registered office lies, including branches of the said banks, if any; or
(f) in such other manner as may be prescribed.
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, after the close of each Co-operative year contribute to the Co-operative Education Fund such portion of its net profit in any Co-operative year as may be prescribed.
Every Co-operative society shall create a Bad Debt Fund by transferring of not less than fifteen per cent. of its net profit in a Cooperative year and shall utilize it in any business if it has no outside liability in the form of bad debt certified by the audit officer or in such other manner as may be prescribed.
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 Bank, Co-operative Banks and Regional Rural Banks or in any security specified in section 20 of the Indian Trust Act, 1882 or in the business of the Co-operative society in such manner as may be prescribed.
Employees’ Provident Fund-Cooperative Societies, which are not coverable under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (19 of 1952), may establish provident fund for the benefit of its employees with the contribution 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.
The West Bengal Co-operative Societies Act, 2006, aims to regulate and promote cooperative societies in the state of West Bengal. Section 83 specifically addresses the provisions related to the Employees' Provident Fund for employees of cooperative societies.
Section 83 mandates that cooperative societies in West Bengal must establish an Employees' Provident Fund for their employees, ensuring that they receive retirement benefits similar to those provided under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
The scope of Section 83 extends to all cooperative societies operating within West Bengal, ensuring that employees receive adequate retirement benefits. It emphasizes the need for equitable treatment of employees in cooperative societies compared to those in government service.
While Section 83 itself does not specify punishments, related provisions in the Act may impose penalties for non-compliance with the requirements set forth in this section.
A Co-operative society may establish retirement benefit fund for payment of gratuity to its employees in accordance, with the provision of the Payment of Gratuity Act, 1972 (39 of 1972) and for payment of cash equivalent of leave salary, if any, to its employees on retirement from service.
A Co-operative society may, if it considers expedient, create and maintain the following funds:
(a) inventory loss fund;
(b) price fluctuation fund;
(c) sinking fund;
(d) development fund;
(e) staff welfare fund;
(f) members’ welfare fund;
(g) dividend equalisation fund;
(h) building fund;
(i) community welfare fund;
(j) natural calamity fund;
(k) self-help group development fund; and
(l) such other funds as may be deemed to be benefic
(1) Subject to the provisions of sections 80 to 85 of this Act, the balance of the net profit in a Co-operative year together with the undistributed net profit, if any, of the previous year may be utilised for all or any of the following purposes :-
(a) payment of dividend to the members on their paid up share capital at a rate not exceeding twelve per cent.
(b) contributions of any amount not exceeding ten per cent. of the net profit in a Co-operative year for any charitable purpose as defined in section 2 of the Charitable Endowment Act, 1890 (6 of 1890).
(2) (a) In any Co-operative society dealing in goods, rebate may be allowed in the total amount of payments made by a member during a Co-operative year towards his purchase of goods from the Co-operative society during that year.
&
(1) In addition to the requirements under section 63, an individual shall be eligible for membership of a housing Co-operative society, if -
(a) he is a citizen of India or a non-resident Indian;
(b) he is not a member of any other housing Co-operative society in West Bengal;
(c) he or any member of his family does not own any plot of bastu land, house or flat within the local limits of any municipal corporation or municipality or town or any Gram Panchayat or any notified area authority where the housing Co-operative society is situated other than the one in relation to which the membership of a housing Cooperative society is applied for by him under this section;
(d) he is a permanent resident of West Bengal or intends to reside in West Bengal per
Housing Co-operative societies of the following types may be registered under section 16:-
(a) a housing Co-operative society of which all the members eligible under section 87 have purchased a consolidated land for the purpose of construction of unit houses on separate plots which shall be allotted by the Co-operative society and the common services and amenities shall be provided by the Co-operative society to all members who may construct their houses either on their own or through the Co-operative:
Provided that the members opting for construction of houses on their own must undertake construction within three years from the date of possession, failing which he shall surrender the plot of land in favour of the Co-operative society:
Provided further that if he does not surrender, it shall b
(1) Notwithstanding anything contained elsewhere in this Act, the first board of the housing Co-operative society shall, within three months from the date of registration under section 16, call the first general meeting of the housing Cooperative society for the purposes-
(a) electing directors of new board;
(b) placing a report on progress of work and other particulars relating to the project of the Co-operative housing society;
(c) apportionment of cost of land, house or flat, if applicable;
(d) placing a report of fund raised from the members, expenses incurred under various heads prior to, and after registration, any resignation and enrolment of members, latest estimate of the project cost and manner of payment towards cost of construction; (e)
(1) In the annual general meeting of a housing Co-operative society held in term of section 29, in addition to agenda mentioned therein, whichever applicable the board shall submit a comprehensive report covering the following points wherever applicable :-
(a) progress of implementation of project;
(b) particulars of fund for the project received from individual members and cases of default, if any;
(c) particulars of default in payment of service charges and maintenance, if any;
(d) confirmation of cost of land, house or flats as per up to date estimate of escalation, as the case may be;
(e) latest position as to drawal of loans from the West Bengal State Co-operative Housing Federation Limited, or any o
(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) After a Co-operative housing society has been registered and till the possession of land, house or apartment in a building, as the case may be, is made over to the members of the Co-operative housing society on the completion of a project undertaken by it, the Co-operative housing society shall furnish to is members and to the Registrar at the end of every quarter a statement in the prescribed manner.
(1) Any allotment (including re-allotment) of a plot of land or a house or apartment in a building made by a Co-operative housing society to its member in accordance with its by-laws 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 (1) of section 61 an instrument of transfer in accordance with the provisions of Transfer of Property Act. 1882 (4 of 1882) and the Registration Act, 1908 (16 of 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 building until he has made such payment as may be prescribed towards the cost of such plot or land
(1) No member of a housing Co-operative society shall, except under the following circumstances, be allowed to let out his house or flat allotted in his favour by the housing Co-operative society-
(a) where the member is transferred to his employer to any other place which is not agglomerated with the area of the housing Co-operative;
(b) where the member is under the condition of his service compelled to stay outside such as in office quarters;
(c) where the member is compelled to reside elsewhere due to reasons of his business or profession;
(d) where the member is compelled to reside elsewhere under such other circumstances as the board may approve.
(2) (a) No member of the housing Co-operative society
(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 has held a post not below the rank of a Special Secretary to the Government of West Bengal to be the Chairman of the Commission;
(b) two persons from two different apex Co-operative societies, to be nominated by the State Government.
(2) The Chairman and the other members of the Commission shall hold office for a term of three years:
Provided that no member of the Commission shall be re-appointed or renominated as a member of the Commission:
Provided further that if the of
(1) The State Government shall constitute a Co-operative Registration Council (hereinafter referred to in this section as the Council) consisting of a Chairman and two other members.
(2) The State Government shall appoint a person who is or has been a member of the West Bengal Higher Judicial Service, as the Chairman of the Council. The Chairman or the Vice-Chairman or any director of the State Cooperative Union as nominated by it shall be a member of the Council and the other member shall be nominated by the State Government.
(3) The Chairman and the members of the Council shall hold office for a term of three years.
(4) The State Government shall appoint an officer not below the rank of Deputy Registrar of Co-operative society as the secretary of the Council. The Secretary shall perform his
(1) The State Government shall constitute a Co-operative Election Commission (hereinafter referred to as the Election Commission) and shall appoint a person to be the Co-operative Election Commissioner of the Election Commission for the 1[superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to a registered Co-operative society] in West Bengal.
1. Subs. by s. 11 (1) of the West Bengal Co-operative Societies (Second Amendment) Act, 2013 (West Ben. Act VII of 2013) (w.r.e.f. 19.2.2013) for the words "superintendence, direction and control of election of all registered Co-operative societies".
(2) The Co-operative Election Commissioner of the Election Commission shall hold office for a term of three years.
(3) The Co-operative Election
(1) 1[(a) Every Cooperative society shall file return, within six months of the close of every Cooperative year, to the Director of Co-operative Audit and to the Registrar including the following matters, namely : -
(i) annual report of its activities;
(ii) its audited statement of accounts;
(iii) its cash account, profit and loss account, balance sheet and trading account where applicable in the Form as may be prescribed;
(iv) plan for surplus disposal as approved by the general body of the Co-operative society;
(v) list of amendments to the bye-laws of the Co-operative society, if any;
(vi) declaration regarding date of holding of its general body meeting an
(1) After completion of audit of accounts of any Cooperative society, the audit officer shall submit his report to the Director of Cooperative Audit, to the Registrar of Co-operative societies and to the Cooperative society together with the audited statement of accounts within the period of thirty days from the date of completion of audit specified in subsection (2) of section 97. The audit report shall be prepared and submitted in such manner and with 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 Director of Co-operative Audit a report of compliance within forty-five days from the date of receipt of the audit report. The Cooperative society shall acknowledge the receipt of the audit report as soon as the same is delivered to it.
(3) Where th
- (1) Every Co-operative society shall be liable at any time to inspection -
(a) by the Registrar or any persons authorised by the Registrar or by the State Government;
(b) by the financing bank, if any, of which it is a debtor;
(c) by the apex Co-operative society or Central Co-operative society, if any, of which it is a member.
(2) The financing bank, the apex Co-operative society or the Central Cooperative society, as the case may be, may authorise its officer, to conduct inspection of the Co-operative society.
(3) An inspecting officer may inspect any book or document of the Cooperative society at its office during the office hours. He may, if require, interrogate any present or past office bearer, m
(1) The Registrar may, at any time of his own motion, hold by himself or by any person authorised by him an inquiry into the affairs of any Co-operative society.
(2) An inquiry under sub-section (1) may also be held on the application of -
(a) the financing bank, if any, of which the Co-operative society is a debtor;
(b) one-third of the director of the board or one-tenth of the delegates or representatives of the Co-operative societies;
(c) one-tenth of the members of the Co-operative societies each of whom has been a member for not less than six months immediately preceding the date of application and who have deposited such security for cost, if any, as the Registrar may direct;
(d) the creditor repre
(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 99 or section 100, 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 member (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 management or business or affairs of a Co-operative society other than the dispute relating to election in a Co-operative society as and when such election is conducted by the Co-operative Election Commission and disciplinary action taken by Co-operative society against its paid employees regarding the terms and conditions of the service shall be filed before the Registrar for settlement if it arises -
(a) among members, past members and persons claiming through members and deceased members or then sureties; or
(b) between member, past member or a person claiming through a member, past member or deceased member representing through heirs or legal representatives and the Co-operative society, its board or any officer, agent or employees of the Co-operative society or liquidator, past or present; or
&nbs
(1) The State Government shall constitute a board of arbitrators consisting of a chief arbitrator of the rank of Additional Registrar of Co-operative Societies and 10 other Arbitrators-five from among the officers of the Department of Co-operation of that Government and five from among the distinguished Co-operators of this State.
1[(2) A dispute under section 102 relating to all apex Co-operative societies and all federal Co-operative societies shall be filed before the Registrar who shall after condoning the delay, if any found to be condonable, and admitting the dispute forthwith refer it for decision to the board of arbitrators as constituted under sub-section (a)* of this section. The chief arbitrator of the board may dispose it himself or transfer it to any arbitrator or arbitrators for disposal.
Explanation - For the purpose of th
(1) The arbitrators, not being serving Government Officers, shall be eligible to get fees not exceeding rupees three hundred per sitting as the Registrar may sanction.
(2) The Plaintiff shall deposit in such institution as may be cited by the Registrar the probable fees of the arbitrators on advance as may be assessed having regard to the nature of the dispute raised within fifteen days from the date of Registrar’s decision to refer the dispute to an arbitrator or board of arbitrators. In default of payment within the time as specified the plaint shall stand rejected and the dispute lapse.
(3) No fee shall be payable to an arbitrator till the dispute is finally settled and awarded.]
1. Section 104 subs. by s. 14 of the West Bengal Co-operative Societies (Second Amendment) Act, 2013 (West Ben.
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 on examination of a report of inspection under section 99 or a report of inquiry under section 100 or an audit report under section 98, the Registrar is of the opinion that the Co-operative society should be dissolved, he shall give a notice containing grounds for dissolution of the Co-operative society to its Chairman and Secretary requiring them to reply within forty-five days from the date of receipt thereof. A copy of the notice shall be sent to the federal Co-operative society and the financing bank, if any, for sending their comments to the Registrar within forty-five days from the date of receipt thereof.
(2) The Chairman or the Secretary of the Co-operative society shall call a general meeting of the members to consider whether any consent to such dissolution, as proposed in the notice under sub-section (1), shall be given or not. The Chairman or the Secretary shall
(1) If the board of the Co-operative society decides for any specific reason that it should be dissolved, the board shall cause a notice for holding a general meeting with a specific agenda as to dissolution to be sent to each member or delegate or representative for the purpose of authorising dissolution of the Co-operative society and such notice shall contain the following items :-
(a) details of assets and liabilities of the Co-operative society;
(b) details of claims of the creditors; and
(c) details of shares, loans, deposit and obligation of all members and the number of members.
(2) When the members approved dissolution by special resolution of two-thirds of members present and voting, the board shall send the copies of the notice and spec
The Registrar of his own motion after giving thirty days notice by order direct dissolution of a Co-operative society on one or more of the following grounds :-
(a) where the Co-operative society has not commenced working within twenty-four months from the date of its registration; or
(b) where the Co-operative society has not carried on business or ceased to function for two consecutive years; or
(c) where the Co-operative society has obtained its registration by mistake or fraud; or
(d) where the Co-operative society has lost the minimum number of members provided in section 16 for the purpose of registration:
Provided that where there is a provision under the by-laws to make good the deficit in the
When the Registrar passes an order under section 106 or 108 directing dissolution of a Co-operative society and appointing a liquidator to dissolve it, he shall :-
(a) publish the order in such manner in the local news paper as he thinks fit;
(b) communicate the order to the Co-operative society by registered post with acknowledgement due or through a messenger;
(c) send a copy of the order to the federal Co-operative society and the financing bank, if any, by registered post with acknowledgement due or through a messenger.
(1) The Registrar shall, in consultation with the federal Co-operative society, if any, appoint one or more than one liquidator from amongst :-
(a) officers of Government of West Bengal preferably retired officers of Co-operation Department of Co-operation Directorate and Cooperative Audit Directorate and the financing bank, if any;
(b) retired officers of apex Co-operative society and Central Cooperative society;
(c) chartered accountants, cost accountants and chartered engineers:
Provided that it shall not be necessary to appoint any liquidator for dissolution of a Co-operative society which has not commenced working. In such case, the Registrar, being satisfied that the Co-operative society has no assets and liabilities may issue a certificate of
(1) On the appointment of a liquidator under section 110, 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 subject to general superintendence and control of the Registrar. The liquidator shall immediately take all necessary steps to take possession of, and to prevent any loss or deterioration to, all assets, properties, effects and actionable claims of the Co-operative society or to which the Co-operative society is entitled.
(2) (a) Immediately after the date on which the order directing the dissolution of the Co-operative society takes effect, liquidator shall publish a notice in such Form as may be prescribed requiring all claims against the Co-operative society to be submitted to him within one month of the publication of the notice.
&
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 on examination of any representation of at least one-third of the total number of members or on his own motion, is of the opinion that a Co-operative society which has been directed to be dissolved under this Chapter should continue to function, he may with prior approval of the State Government, cancel such order of dissolution.
(2) In the event of cancellation of the order of dissolution, the Registrar shall constitute a board of directors from amongst the members of the Cooperative society to take charge from its liquidators and the said board shall convene a general meeting of the members for reconstitution of the board.
(1) When any property is mortgaged to a Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Co-operative society for payment of a prior debt or part thereof of a mortgagor, the Co-operative agriculture and rural development bank, financing bank or the primary agricultural credit Cooperative society shall, notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882 (4 of 1882), by serving a notice in writing in the prescribed 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 agriculture and rural development bank, financing bank or the primary agricultural
(1) When application for loan is made to a Co-operative agriculture and rural development bank for any approved purpose as may be prescribed, the bank shall, after due inquiry as to the title of the chargeable assets offered as security of loan:
(a) make such further inquiry in connection with the application for loan as it thinks necessary;
(b) value the land according to the instructions issued in this connection by the State Co-operative agriculture and rural development bank from time to time;
(c) estimate the repaying capacity of the applicant for loan; and
(d) examine the feasibility and utility of the purpose and dispose of the application within a period of two months from the date of receipt of the same.
&n
Notwithstanding anything contained in any other law for the time being in force, a mortgagor shall not been titled to transfer or create a charge on the property mortgaged to a Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Co-operative society without the concurrence of the said bank:
Provided that the said bank shall not give its concurrence without the previous sanction of the financing bank, if any:
Provided further that the financing bank shall, if it accords sanction, send a copy thereof to the trustee, if any, appointed under section 45.
Notwithstanding anything contained in any law relating to insolvency for the time being in force, a mortgage executed in favour of Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Co-operative society 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 said bank preference over the creditors of the mortgagor.
A mortgage executed in favour of Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Co-operative society before or after commencement of this Act shall have priority over loans of the State Government under Land Improvement Loans Act, 1883 (19 of 1883) or the Agriculturists’ Loan Act, 1884 (12 of 1884) granted after the execution of the mortgage and over all other registered or un-registered transfers effected on any account.
(1) Where a credit Co-operative society has granted a loan for improvement of any land to any person who in its opinion, 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 pay to the credit Co-operative society such loan as if that other person had executed the Gehan under section 55 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 sole or otherwise.
(2) The Gehan executed or deemed to have been executed in favour of, and all other assets charged to, a financing bank or a Primary Agricultural Credit Co-operative society shall be construed to have been charged or deem to have been charged by the said Co-operative society to the cen
(1) If any sum due as an instalment or part of an instalment payable under mortgage in favour of a Co-operative agriculture and rural development bank, central Co-operative bank or financing bank or primary agricultural credit Co-operative society has remained unpaid for more than one month from the date on which it fell due, the co-operative agriculture and rural development bank, Central co-operative bank, the financing bank or the primary agricultural credit co-operative society, as the case may be, may, in addition to any other remedy available to it, apply to the Registrar for recovery of such sum by distrain and sale of not more than half of the produce of the mortgaged land, the produced stored in the house and its premises and the standing crops thereon by distrain and sale of the movable property that has been acquired by the mortgagor with the amount of the loan advanced to him.
&nbs
The proceeds of any distraint and sale under section 120 shall be applied as follows:
(1) First, there shall be paid to the Co-operative agriculture and rural 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.
(3) Thirdly, the residue, if any, shall be paid to the person whose property has b
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 agriculture and rural development bank or a Central Co-operative bank or a primary cooperative bank or an apex housing society, or primary housing society or financing bank or primary agricultural credit co-operative society by a mortgage deed in favour of the bank or the society, as the case may, 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 mortgage property to sale and to deliver possession of the property sold to the purchaser without the intervention of any court.
(1) The bank or the Co-operative society, as the case may be, shall be competent to purchase any mortgaged property sold under this chapter, but such property shall be disposed of by such bank or the Co-operative society, as the case may be, by sale within one year from the date of purchase or where a trustee has been appointed, the bank or the Co-operative society, as the case may be, shall dispose of the property by public auction unless otherwise directed by the trustee, on the date not later than one year from the date of purchase.
(2) The sale shall be advertised at least a month before the date of sale by -
(a) describing the property with full details in the local newspaper;
(b) proclamation by beat of drum in the locality where it is situate; and
The title of 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 property 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 (4 of 1882) and determine his remuneration in the manner as may be prescribed.
(1) If any property mortgaged under this chapter is destroyed wholly or in part of, 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 agriculture and rural development bank or the State Co-operative and rural development bank or the Central Cooperative bank or the apex housing society or the housing Co-operative society or the financing bank or the primary agricultural credit Co-operative society shall, subject to the rules, be ent
A trustee and, in the case of a member of Co-operative society, the West Bengal State agriculture and rural development bank may, in accordance with the provisions of this chapter and by order, direct a Co-operative agriculture and rural 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 agriculture and rural development bank fails to take such action within the specified period, the trustee or the West Bengal State Co-operative agriculture and rural development bank, as the case may be, may take such action and the provisions of this Act and the by-laws shall apply in respect thereto, as if all references to the Co-operative agriculture and rural development bank were references to the trustee or West Bengal State Co-operative agriculture and rural 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 the bank or the Co-operative 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 any interest in such property on his personal account.
(1) Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908) it shall not be necessary for a trustee or for any officer of a Co-operative agriculture and rural development bank or Co-operative bank or primary credit Co-operative society or West Bengal State Co-operative agriculture and rural development bank or any apex Co-operative society or any co-operative society to appear in person or by agent at any registration office in any proceeding connected with 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 register such instrument.
- Where a Co-operative agriculture and rural development bank or a housing Co-operative society or a primary Co-operative credit society including primary agricultural credit Co-operative society advances money on a mortgage, hypothecation, Gehan or any other charge out of the funds borrowed wholly or in part from the West Bengal State Co-operative agriculture and rural development bank or the apex housing Co-operative 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 society or the primary Co-operative credit society including primary agricultural credit Co-operative society to the West Bengal State Co-operative agriculture and rural development bank or apex housing society or the financing bank, as the case may be, and such mortgage, hypothecation, Gehan or any ot
(1) Where a mortgage executed before or after the commencement of this Act in favour of a Co-operative agriculture and rural development bank or a financing bank or primary credit Co-operative society including primary agricultural credit Cooperative society, as the case may be, is called in question on the ground that it was executed by the manager of the 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 sub-clause (ii) of Explanation to clause (16) of section 4 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 agriculture and rural development bank contained in this Chapter shall apply, mutatis mutandis, to the branches of the West Bengal State Cooperative agriculture and rural development bank in so far as they perform the function and discharge the duties of a Co-operative bank.
The provisions of sections 126, 127 and 130 shall apply, mutatis mutandis, to loans issued against a Gehan of immovable property and hypothecation of assets credited with the help of loan.
(1) Registration and administration of an Urban Co-operative Bank will be governed by this Act and the rules made thereunder.
(2) Such bank will be regulated by the direction of the Reserve Bank of India and shall have the power to amend its by-laws.
Notwithstanding anything contrary or inconsistent contained in this Act or the rules framed thereunder or by-laws of any registered society or orders issued thereunder, the provisions of this Chapter shall have overriding effect.
(1) In this Chapter unless the context otherwise requires,
(a) "Co-operative Credit Structure Entity" includes the West Bengal State Co-operative Bank, a District Central Co-operative Bank, a Primary Agricultural Credit Co-operative Society, the West Bengal State Agricultural and Rural Development Bank, a Primary Cooperative Agricultural and Rural Development Bank;
(b) "National Bank" means the National Bank for Agricultural and Rural Development established under section 3 of the National Bank for Agricultural and Rural Development Act, 1981 (61 of 1981);
(c) "Primary Agricultural Credit Co-operative Society" includes a Farmers’ Service Co-operative Society, a Large-sized Multi-purpose Co-operative Society and any other Co-operative Society primarily dealing with agricultural credit identifie
(1) The following provisions shall apply to the Co-operative Credit Structure Entities :-
(a) a depositor holding a minimum deposit of rupees five thousand or such minimum sum as may be specified by the Government for a continuous period of minimum two years in the Primary Agricultural Credit Co-operative Society preceding the date of notification of election in a Primary Agricultural Credit Co-operative Society, shall become a member of the society under sub-section (1) of section 63 by subscribing at least the minimum share capital specified in the by-laws and shall have full voting rights;
(b) an individual or group borrower shall have the right to become a member of a Primary Agricultural Credit Co-operative Society or Primary Co-operative Agricultural and Rural Development Bank under sub-section (1) of section 63.
&nb
The Registrar, 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 Cooperative society.
(1) The Registrar, 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 enforce the attendance of witness 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 (5 of 1908).
(2) Where any person summoned under sub-section (1) fails, or refuses to produce books, accounts, documents, securities, cash or other properties specified in the summons, any Metropolitan Magistrate or Judicial Magistrate of the first class in whose jurisdiction such person resides shall, without prejudice to the penal measures provided in this Act,
(1) If the board of a Co-operative society or a liquidator appointed under section 107 is resisted in, or prevented from, taking possession of any books, accounts, documents, securities, cash or other properties of a Cooperative society by any person not entitled to be or to remain in possession of the same, the board of directors or the liquidator, 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 person resides or such books, accounts, documents, securities, cash or other properties lie for seizing and taking possession of the same.
(2) On receipt of an application under sub-section (1), such Metropolitan Magistrate or Judicial Magistrate of the first class, as the case may be, shall authorise any police officer not below the rank of sub-inspector to enter and
Section 137 of the West Bengal Co-operative Societies Act, 2006, deals with the delivery of books, accounts, and other related documents of a co-operative society upon request or in certain proceedings. It plays a crucial role in ensuring transparency, accountability, and proper management of co-operative societies by stipulating the procedures and authorities involved in the transfer or delivery of society records.
Section 137 primarily provides for:- The conditions under which the books, accounts, and other documents of a society can be delivered.- The authority (such as the Registrar or designated officer) empowered to order the delivery.- The process to be followed upon receipt of an application for such delivery.- The circumstances under which the delivery can be refused or restricted.
Specifically, subsection (1) states that if the Board of a society or a liquidator appointed under Section 107 is resisted in or prevented from taking possession of books or accounts, an application can be made to the competent authority (e.g., the Registrar or Magistrate). Subsection (2) empowers the Magistrate or the competent authority to order the delivery of such documents.
While Section 137 itself does not explicitly prescribe punishment, obstruction or resistance to lawful orders for delivery of society documents may attract penalties under other provisions of the Act or the Indian Penal Code (e.g., Section 186 IPC for obstruction of public servant in discharge of public functions). Additionally, refusal or failure to comply with a lawful order may lead to contempt proceedings or other legal consequences.
This concise commentary and analysis underscore the importance of Section 137 in ensuring transparency, accountability, and effective management of co-operative societies under the West Bengal Co-operative Societies Act, 2006.
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 be 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 sum or such portion thereof as may be considered sufficient by the Registrar or to show cause why he or it should not be furnished such security. The Registrar may also in
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 or the successors, or a legal heir of a deceased person, who may or may not be a member of the Co-operative society, to make payment of the amount found to be due.
(1) Where on an audit under section 97 or an inspection under section 99 or an inquiry under section 100 or an inquiry by a commission constituted under the Commission of Inquiry Act, 1952 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 provision of this Act, or the by-laws or any other law for the time being in force, or
(b) by reason of negligence in respect of any matter involved the Cooperative society in any loss or deficiency; or
(c) mis-ap
Where it appears to the Registrar that any person has contravened the provisions of this Act or the bylaws-
(a) by sitting or voting as a director of the board of a Co-operative society or voting in the affairs of the Co-operative society as the representative of another Co-operative society which a member of such Co-operative society or exercising the rights of member of the Co-operative society when such person was not entitled to sit or vote or exercise such rights, as the case may be; or
(b) by continuing, as an officer or office bearer of a Co-operative society after incurring disqualification thereof; or
(c) by utilizing a loan for a purpose other than the purpose for which it was granted; or
(d) by not depositing with the financing bank an
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 its by-laws -
(a) within such period as may be specified in this Act 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 any person authorised by him in this behalf, may take such action at the expense of the Co-operative society or may call upon any officer of the Co-operative society, whom he considers to be responsible for carrying out his directions and may, after giving such officer an opportunity of being heard, require him to pay to the assets of the Co-operative society a sum not exceeding twenty-five rupee
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 a decree of a court under the Code of Civil Procedure 1908 (5 of 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 139 shall be recoverable-
(a) if the salary or wages of the member of the Co-operative society or surety exceeds one thousand five hundred rupees per mensem, by attachment of such salary or wages to the extent of instalment in default or half of the difference between such salary or wages and five hundred rupees whichever is less, or
(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 connection with the affairs of a Co-operative society.
(1) No suit, prosecution or other legal proceedings shall lie against the Registrar or any person authorised by him or against a board of directors 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 or Consumer Disputes Redressal Forum 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 of the board of a Co-operative society and the management of such Co-operative society on such dissolution; or
(c) any matter concerned with dissolution or liquidation
(1) The State Government shall, by notification, constitute one or more Tribunals which shall consist of a Chairman and not less than -
(i) one judicial Member; and
(ii) one administrative Member.
(2) No person shall be qualified for appointment -
(a) as the Chairman unless he is or has been a Judge of the High Court or is holding or has held a post not below the rank of Judicial Secretary or Legal Remembrancer;
(b) as a Judicial Member unless he has held or is holding a post not below the rank of District Judge belong to Higher Judicial Services;
(c) as an administrative Member unless he has held or is holding a post not below the rank of Joint Secretary in
(1) An appeal shall lie from an order shown in column (2), to the authority shown in column 4, within the period shown in column (5), of the Third Schedule to this Act.
(2) The provisions of the Limitation Act, 1963 (36 of 1963) shall not apply to an appeal referred in sub-section (1).
(3) When an appeal is presented after the expiry of the period of limitation specified therefor in the Third Schedule to this Act, it shall be accompanied by an application for condonation of delay setting forth the facts on which the appellant relies to satisfy the Appellate Authority that he had sufficient cause for not preferring appeal within such time. If, after hearing the both sides, the Appellate Authority is satisfied that the appellant had sufficient cause for not preferring the appeal within such time, then it may condone delay and may proceed t
(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 proceedings of any person subordinate to him not vested with the powers of Registrar or acting on his
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 (2 of 1974) every offence under this Act shall be deemed to be non-cognizable.
(3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an offence punishable under section 403 of the Indian Penal Code, 1860 (45 of 1860) in respect of any movable property of a Co-operative society shall be cognizable.
(4) No prosecution shall be instituted under this Act, without the previous sanction of the Registrar.
(5) A prosecution under this Act shall be instituted by the Registrar or any person authorised by him in this behalf. All exp
(1) A register of members or shares properly ’maintained by a Co-operative society in the course of its business shall be prima facie evidence of -
(a) the date on which the name of any person has been entered in such register as member of such Co-operative society, and
(b) the date of which such person has ceased to be a member of such Co-operative society,
(2) If for any reason the register of members of shares is not available, the detailed list of members with shareholding enclosed with the audit report or inspection report, if any, shall be treated as prima facie evidence of membership as on the date the balance sheet is drawn up or inspection is held.
(1) A copy of any entry in a book of a Co-operative society regularly kept in the course of its business shall, if certified by duly authorised person, be accepted in any suit or legal proceedings as a prima facie evidence of the matters, transactions 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 dissolved shall, in any legal proceedings 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 contents of which can be proved under sub-section (1) or to appear as a witness can be proved under sub-section (1) or to appear as a witness to prov
Any officer or employee or member of Co-operative society or any arbitrator or liquidator appointed under this Act, who-
(a) sanctions and 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, 1860 (45 of 1980), 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 use any property of the Co-operative society entrusted to him or under his control or allows any other person so to do, shall be guilty of corrupt prac
This Act shall have effect notwithstanding anything 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.
1. Marginal note subs. by s. 17 of the West Bengal Co-operative Societies (Amendment) Act, 2011 (West Ben. Act XIV of 2011) (w.e.f. 6.2.2012), which was earlier as under:
"Offences and penalties.".
(1) Every Co-operative bank accepting deposits from non-members shall get itself insured under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961).
(2) Notwithstanding anything contained elsewhere in this Act, in respect of an insured Co-operative bank (mentioned in this sub-section as the "said bank"),-
(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction, of the said bank may be made only with the previous sanction in writing of the Reserve Bank of India;
(ii) an order for the winding up of the said bank shall be made, if so required by the Reserve Bank of India in the circumstances referred to in section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961;
&n
Certified copies of certain documents, as may be prescribed, be supplied on payment of prescribed fees:
Provided that the fees for filing disputes before the Registrar under section 102 of this Act shall be such as may be prescribed.]
1. Section 155A ins, by s. 19 of the West Bengal Co-operative Societies (Amendment) Act, 2011 (West Ben. Act XIV of 2011) (w.e.f. 6.2.2012).
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 Co-operative 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 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 may provide that any person committing a breach thereof shall on conviction by a court be punishable with fine which may extend to five hundred
Power exclusively exercisable by the Registrar
[See section 13(1)]
Serial Section Power
No.
(1) (2) (3)
1. Sub Section (1) of To require any office (including a
section 140 former officer) to pay to the assets of the Co
operative society for making good to loss
sustained by it in direct consequences of the
commission or omission specified or to
restore any property misappropriate or
fraudulently retained and to pay the
Recovery of sums due
[See section 143]
Serial Nature of Sum due Method of recovery
No.
(1) (2) (3)
1. Sums payable towards dues By the certificate officer as a public
recoverable under section 59. demand upon requisition by the
Co-operative society.
2. Audit fee payable under sub- By the certificate officer as a public
section (1) and the expenses demand upon requisition by the
for completing the accounts Director of Co-operative Audit or
Appeals
[See section 147]
Sl. Appeal lies against By whom Authority to Period of
No. appeal may be whom appeal limitation
preferred shall lie
(1) (2) (3) (4) (5)
1. An order of change Any member The Co- Two months from
of liability, transfer or creditor or operative the date on which
of assets and liabi- Co-operative Tribunal. the order is com
lity. division and society municated or two
amalgamation of a aggrieved by months fro
Offences and penalties
[See section 149]
Sl. Offence Person liable Penalty
No.
(1) (2) (3) (4)
1. Unauthorized used of the Any Company, Imprisonment for a term
word "Co-operative" or Co-operative which may extend to
its equivalent in contra- society or Per- two years or fine which
vention of section 9. son or a body may extend to five thou
of persons. sand rupees or both.
1[2. A Co-operative society or Any person making Imprisonment for a ter
Co-operative societies
[See section 94]
Sl. Type of Co-operative society
1. All Apex Co-operative society.
2. All Central Co-operatives including District Co-operative union.
3. All Agriculture & Rural Development Banks.
4. All Primary Co-operative Banks.
2[5. * * * *]
2. Serial No.5 and the entry relating thereto omitted by s. 17, ibid (w.r.e.f. 19.2.2013), which were earlier as under:
"5. Any Co-operative, Annual Turnover of which is Rupees one crore or above.".
Power exercisable by the Director of Co-operative Audit
[See section 13(2)]
Serial Section Power
No.
(1) (2) (3)
1. Sub-section (1) of section 97. To appoint Audit officer.
2. Sub-section (2) of section 97. To draw audit programme and to
appoint new audit officer on the
failure of the audit officer to take
up audit.
3. Sub-section (1) of section 97. To receive annual return from co-
operative societies.
&nb
Elevate your legal practice with advanced AI-driven research and drafting solutions. Experience unmatched efficiency, precision, and security, tailored exclusively for legal professionals.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
AI Assistant
