RAJASTHAN CO-OPERATIVE SOCIETIES ACT, 1965
(1) This Act may be called the Rajasthan Co-operative Societies Act, 1965.
(2) It extends to the whole of the State of Rajasthan.
(3) It shall come into force on such 1date as the State Government may, be notification in the Official Gazette, appoint.
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1. Came into force w.e.f. 2.10.1965 vide Govt. Order No. F. 17(2)/Coop/58 dated 30.9.1965, Pub. in Raj.
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In this Act, unless the context otherwise requires,-
(a) "bye-laws" means the eye-laws registered or deemed to be registered under this Act and for the time being in force and includes the registered amendments of such bye-laws;
1(aa) "Chief Executive Officer" means an individual who, subject to the superintendence, control and direction of the Committee is entrusted with the management of the whole or substantially the whole of the affairs of a society and includes any other person occupying the position of a Chief Executive Officer by whatever name called;",
2(aaa) "Executive Officer" means an officer who, subject to the superintendence, control and directions of the Committee, is appointed under section 35-B to assist the Chief Executive Officer in the management of the affairs of a society
(1) The Government may appoint a person to be the Registrar of Co-operative Societies for the State and may appoint other persons to assist him.
(2) The Government may, by general or special order, confer on any person appointed to assist the Registrar, all or any of the powers of the Registrar under this Act.
(3) Every person appointed to assist the Registrar shall exercise the powers conferred on him under sub-section (2), subject to the general superintendence and control of the Registrar.
(1) Subject to the provisions of this Act, a co-operative society which has as its objects the promotion of the economic interests of its members in accordance with the co-operative principles, or a co-operative society established with the object of facilitating the operations of such society, may be registered under this Act.
(2) The Registrar shall classify societies of the nature specified in sub-section (1), with reference to their objects, area of operation, membership or any other prescribed matter, into such classes or sub-classes as may be prescribed.
(3) The Registrar may, for reasons to be recorded in writing, alter the classification pf a society from one class of society to another, or from one sub-class thereof to another, and may, in the public interest and subject to such terms and conditions as he may think fit to impose
The Rajasthan Co-operative Societies Act, 1965, provides a comprehensive legal framework for the establishment, regulation, and management of cooperative societies in Rajasthan. Section 4 specifically outlines the types of societies that may be registered under the Act, emphasizing the promotion of economic interests and welfare of members through cooperative principles.
Section 4(1) of the Rajasthan Co-operative Societies Act, 1965, states that a cooperative society can be registered if its objectives are to promote the economic interests or general welfare of its members or the public through self-help and mutual assistance.
The scope of Section 4 extends to various types of cooperative societies, including credit societies, agricultural societies, and consumer societies, among others. It establishes the foundational criteria for the registration of such societies under the Act.
While Section 4 itself does not prescribe specific punishments, violations related to the registration and operation of societies may lead to penalties as outlined in other sections of the Act.
Registration Requirement - A cooperative society must be registered under Section 4(1) to be recognized legally, promoting the economic interests of its members. - [ Sahkari Samitiyan Vyavasthapak Union VS State Of Rajasthan]
Cadre Authority Limitation - The Rajasthan Credit Cooperative Institutions Cadre Authority cannot be registered as a cooperative society under Section 4(1) as it does not meet the criteria set forth. - [ Sahkari Samitiyan Vyavasthapak Union VS State Of Rajasthan]
Three-Tier Structure - The cooperative structure is built on a three-tier system: Primary Agricultural Credit Societies (PACS), District Cooperative Societies, and Central Cooperative Banks, which must adhere to Section 4(1). - [ Sahkari Samitiyan Vyavasthapak Union VS State Of Rajasthan]
Promotion of Economic Interests - The Act emphasizes that societies must focus on promoting the economic interests of their members, aligning with cooperative principles. - [ Sahkari Samitiyan Vyavasthapak Union VS State Of Rajasthan]
Control and Discipline - Societies have the authority to maintain control and discipline over their officers and employees, as per the provisions of the Act. - [ Sahkari Samitiyan Vyavasthapak Union VS State Of Rajasthan]
Employee Status - Employees of cooperative societies, such as Loan Supervisors, must be recognized under the Act to ensure they receive appropriate benefits and protections. - [ Chittorgarh Central Co-Operative Bank Ltd. VS State of Rajasthan]
Registrar's Powers - The Registrar of Cooperative Societies has the authority to prescribe qualifications and service conditions for employees of registered societies, as per Rule 41 of the Cooperative Societies Rules, 1966. - [ Sahkari Samitiyan Vyavasthapak Union VS State Of Rajasthan]
Disqualification of Members - Section 34(4) outlines disqualifications for members, emphasizing the importance of compliance with cooperative principles. - [ Ganga Sahai Trivedi VS Joint Registrar Cooperative Societies Bharatpur,]
Judicial Interpretation - Courts have clarified that transactions involving overdrawing from accounts in non-lending societies do not constitute loan transactions, impacting member disqualifications. - [ Ganga Sahai Trivedi VS Joint Registrar Cooperative Societies Bharatpur,]
Consequential Benefits - Employees transferred between societies must be recognized as employees of the receiving society to ensure they receive all consequential benefits. - [ Chittorgarh Central Co-Operative Bank Ltd. VS State of Rajasthan]
Legislative Framework - The Act serves as a legislative framework that governs the registration and operation of cooperative societies, ensuring they operate within the law. -
Bye-Law Amendments - Any amendments to the bye-laws of a cooperative society must be registered to be valid, ensuring compliance with the Act. -
Economic Amelioration - The cooperative movement aims to achieve economic amelioration for its members, which is a fundamental principle of the Act. -
Member Participation - The Act encourages active participation of members in the management and decision-making processes of the society. -
Legal Recognition - Only societies registered under Section 4(1) are granted legal recognition, which is crucial for their operation and member protection. -
Regulatory Compliance - Societies must comply with the provisions of the Act and the rules made thereunder to maintain their registration and operational status. -
Judicial Oversight - The judiciary plays a critical role in interpreting the provisions of the Act, ensuring that the rights of members and the integrity of societies are upheld. -
Empowerment of Members - The Act empowers members to form societies that cater to their economic needs, fostering a spirit of cooperation and mutual assistance. -
Limitations on Authority - The powers of the Registrar and other authorities are limited to what is prescribed under the Act, ensuring checks and balances in the cooperative framework. -
Impact of Non-Compliance - Non-compliance with the provisions of the Act can lead to disqualification of members and invalidation of society operations. -
(1) A co-operative society may be registered with limited or unlimited liability:
Provided that the liability of a co-operative society of which any member is a co-operative society shall be limited.
(2) The word "limited" or its equivalent in any Indian language shall be the last word in the name of every co-operative society registered under this Act with limited liability.
(1) AN application for the registration of a co- operative society shall be made to the Registrar in such form as the Registrar may, from time to time, specify; and the applicant shall furnish to him all such information about the society as he may require.
(2) Every such application shall conform to the following requirements, namely:-
(a) the application shall be accompanied by three copies of the proposed bye-laws of the co-operative society;
(b) where all the applicants are individuals, the number of applicants shall not be less than fifteen and each of such persons shall be a member of a different family;
(c) where all the applicants are co-operative societies the number of applicants shall not be less than five:
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When any question arises whether for the purpose of this Act, a person is an agriculturist or not or whether any person is a resident in a town or village or group of villages or whether two or more village shall be considered to form a group or whether any person belongs to a particular class or occupation or a weaker section of the community, the question shall be decided by the Registrar whose decision shall, subject to the provisions contained in section 128, be final.
Explanation.-- For purposes of this section, the word "agriculturist" shall mean a person who earns his livelihood wholly or substantially, by agriculture or raising livestock or cattle breeding.
(1) If the Registrar is satisfied-
(a) that the application complies with the provisions of this Act and the rules,
(b) that the objects of the proposed society are in accordance with section 4,
(c) that the aims of the proposed society are not inconsistent with the principles of social justice, co-operation and public morality and that they facilitate the establishment of a socialistic pattern of society,
(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rule's and
(e) that the proposed society complies with the requirements of the sound business,
The Registrar may register the co-operative society and its bye-laws.
Where a co- operative society is registered under this Act, the Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the co-operative society therein mentioned is a co-operative society duly registered under this Act, unless it is proved that the registration of the society has been cancelled.
The registration of a co-operative society shall render it a body corporate by the name under which it is registered, having perpetual succession and a common seal, and with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted.
(1) A co-operative society may, by an amendment of its bye-laws, change its name.
(2) Where a co-operative society changes its name, the Registrar shall enter the new name on the register of co- operative societies in the place of the former name and shall amend the certificate of registration accordingly.
(3) The change of name of a co-operative society shall not affect any rights or obligations of the co-operative society, or render defective any legal proceedings by or against it; and any legal proceedings which may have been continued or commenced by or against the society by its former name may be continued or commenced by its new name.
(1) Subject to the provisions of this Act and the rules, a co-operative society may, by an amendment of its bye-laws, change the form or extent of its liability.
(2) When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any bye-law or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have assented to the change.
(4) An amendment of the bye-laws of a co-operative society
(1) No amendment of any bye-law of a co-operative society shall be valid unless such amendment has been registered or is deemed to be registered under this Act specified in sub- section (2) are complied with.
(2) Every proposal for such amendment shall be forwarded to the Registrar and if the Registrar is satisfied that the proposed amendment-
(a) is not contrary to the provisions of this Act and the rules,
(b) does not conflict with principles of co-operation social justice and public morality, but facilitates the establishment of a socialistic pattern of society,
(c) satisfies the requirements of sound business, and
(d) will promote the economic interests of the members of the society, he may register t
(1) If at any time, it appears to the Registrar that an amendment of the bye-laws of a co-operative society is necessary or desirable in the interests of such society, he may, by an order in writing, require the society to make such amendment within such time as he may specify in such order.
(2) If the society fails to make such amendment within the time so specified, the Registrar may, after giving the society an opportunity of being heard, make such amendment himself and register the same, and issue to the society a copy of such amendment certified by him and thereupon such amendment shall subject to appeal, if any, be binding on the society and its members.
An amendment of the bye-laws of a co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.
(1) A co- operative society may, with the previous approval of the Registrar and by a resolution passed by a two-thirds majority of the members present and voting at a general meeting of the society-
(a) transfer its assets and liabilities in whole or in part to any other co-operative society;
(b) divide itself into two or more co-operative societies.
(2) Any two or more co-operative societies may, with the previous approval of the Registrar and by a resolution passed by a two third majority of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new co-operative society.
(3) The resolution of a co-operative society under sub- section (1) or sub-section (2) shall contain all particulars of the tr
Section 16 of the Rajasthan Co-operative Societies Act, 1965, primarily deals with the cessation of membership of individuals in a co-operative society, including provisions related to resignation, death, and other modes of ceasing membership. It also addresses the legal continuity and rights of societies post-amalgamation, transfer, or division under the Act.
Note: The references are based on the provided sources, primarily focusing on the case analysis and legal interpretations related to Section 16 of the Rajasthan Co-operative Societies Act, 1965.
(1) Where the Registrar is satisfied that it is essential in the public interest, or in the interest of the co-operative movement, or for the purpose of securing the proper management of any co-operative society that two or more co-operative societies should amalgamate or any co-operative society should be divided to form two or more societies or should be reorganised then, notwithstanding anything contained in section 16, but subject to the provisions of this section, the Registrar may by order provide for the amalgamation, division or reorganisation, of these societies into a single society, or into societies with such constitution, property rights, interests and authorities and such liabilities, debts and obligations, as may be specified in the order.
(2) No order shall be made under this section, unless-
(a) a copy of the proposed or
(1) Where the whole of the assets and liabilities of a co-operative society are transferred to another co-operative society in accordance with the provisions of section 16 or 17, the registration of the first mentioned co-operative society shall stand cancelled and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more co-operative societies are amalgamated into a new co-operative society in accordance with the provisions of section 16 or 17, the registration of each of the amalgamated societies shall stand cancelled on the registration of the new society and each society shall be deemed to have been dissolved and shall cease to exist a corporate body.
(3) Where a co-operative society divides itself into two or more co-operative societies in accordance with the provisions o
(1) No person shall be admitted as a member of a co-operative society except the following, namely:-
(a) an individual competent to contract under section 11 of the Indian Contract Act, 1872 (Central Act 9 of 1872);
(b) any other co-operative society;
(c) the State Government; or
(d) any other person, body, or local authority as may be prescribed:
Provided that an individual shall not be eligible to the membership of a financing bank other than a Land Development Bank or such class of co-operative society as may be prescribed in this behalf:
Provided further that the provisions of clause (a) shall not apply to an individual seeking admission to a society exclus
(1) Notwithstanding anything contained in section 19, a co-operative society may admit-
(i) a prescribed class of persons as a nominal member; or
(ii) a prescribed class of persons or a prescribed local authority, an associate member.
(2) A service co-operative society, a marketing society and a central co-operative bank, as classified under the rules, shall respectively have the Sarpanch of the Panchayat of the village, Pradhan of the Panchayat Samiti and the Pramukh of the Zila Parishad of the district concerned, as an associate member.
(3) A nominal or an associate member shall not be entitled to any share in any form whatever in the assets or profits of the society.
(4) Save as provided in this sectio
No member of a co-operative society shall exercise the rights of a member unless he has made such payments to the society in respect of membership or has acquired such interest in the society, as may be specified in the bye-laws.
Every member of a co- operative society shall have one vote in the affairs of the society:
Provided that-
(a) a nominal or an associate member shall not have right of vote;
(b) Where the Government is a member of the co-operative society, each person nominated by the Government on the committee of the co-operative society shall have one vote.
1(1) Every member of a co-operative Society shall irrespective of the number and value of the shares he holds, have only one vote which shall be exercised in person and no member shall be permitted to vote by proxy."
(2) Notwithstanding anything contained in sub-section (1),-
2["(a) a co-operative society which is a member of another co-operative society shall, subject to any rules made under this Act, be represented by its Chairman or, in his absence, (b) by the Vice-Chairman to vote on its behalf in the affairs of that other society;
(b) a local authority or body which is a member of a co-operative society under section 19, may, subject to any rules made under this Act, be represented by its Chairman or in his absence, by the Vice-Chairman to vote on its behalf in the affairs of the society"
In any co-operative society, no member belonging to the category mentioned in clause (a) of sub-section (1) of section 19 shall-
(a) hold more than such portion of the total share capital of the society , not exceeding one fifth thereof, as may be prescribed, or
(b) have or claim any interest in the shares of the society exceeding five thousand rupees:
Provided that the Government may, by notification in the Official Gazette, specify in respect of any class of co-operative societies, a higher maximum than one fifth of the share capital or a higher amount than five thousand rupees, as the case may be.
(1) The transfer of a share or interest of a member in the capital of a co-operative society shall be subject to such conditions and restrictions as to the maximum holdings as are specified in section 24.
(2) No transfer by a member of his share or interest in a co-operative society shall be valid unless,-
(a) the member has held such share or interest for not less than one year;
(b) the transfer is made to the society or to a member of the society or to a person approved by the committee of the society; and
(c) the transfer is approved by the committee of the society.
(3) Notwithstanding anything contained in sub-sections (1) and (2), where a member is allowed to resign or is expelled or ceases to be a m
(1) On the death of a member of a co-operative society, the society shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules, or if no person has been so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member:
Provided that such nominee, heir or legal representative, as the case may be, is admitted as a member of the society:
Provided further that nothing in this sub-section shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise the share or interest of a deceased member in co-operative society.
(2) Notwithstanding contained in sub-section (1), any such nominee heir or legal representative, as the case may be, may require the s
(1) Subject to the provisions of sub- section (2), the liability of a past member or of the estate of a deceased member of a co-operative society for the debts of the society as they existed-
(a) in the case of a past member, on the date on which he ceased to be a member, and
(b) in the case of a deceased member, on the date of his death, shall continue for the period of two years from such date.
(2) Where a co-operative society is. ordered to be wound up under section 78, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceding the date of order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed
Not with standings any things contained in any law relating to insolvency for the time being in force, the dues of a society from a member, in insolvency proceedings against him, shall rank in order of priority next to the dues payable by him to Government or to a local authority.
The final authority in a co-operative society shall, subject to the provisions of this Act and the rules, vest in the general body of the members:
Provided that where the bye-laws of a co-operative society provide for the constitution of a smaller body consisting of delegated of members of the society elected in accordance with such bye-laws, the smaller body shall exercise such'. powers of the general body as may be prescribed or as may be specified in the bye-laws of the society:
Provided further that nothing in this section shall affect any powers conferred on a committee or any officer of a co-operative society by the rules or the bye-laws.
(1) Every co- operative society shall, within the time prescribed therefore, call an annual general meeting for the purpose of-
(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year;
(b) election, if any, in the prescribed manner of the members of the committee other than nominated members;
(c) consideration of the audit report and the annual report;
(d) disposal of the net profits; and
(e) consideration of any other matter which may be brought forward in accordance with the bye-laws:
Provided that if no such meeting is called within the time aforesaid, the Registrar or any person authorised by him may cal
(1) The committee of a co-operative society may, at any time, call a special general meeting of the society and shall call such meeting within one month after the receipt of requisition in writing from the Registrar or from such number of members, not being less than one-fifth of the total number of members as may be specified in the bye-laws.
(2) If a special general meeting of a co-operative society is not called in accordance with the requisition referred in sub- section (1), the Registrar or any other person authorised by him in this behalf, shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the committee.
(3) The Registrar shall have power to order that the expenditure incurred in calling a meeting under sub-section (2) shall be paid out of the funds of the society or by such person
(1) If in the opinion of the Registrar, any resolution passed at the meeting of any co-operative society or committee thereof is opposed to the objects of the society or is prejudicial to the interests of the society, or is in excess of the powers of the society, the Registrar, after giving the co- operative society an opportunity of being heard, may by order in writing rescind the resolution in whole or in part specifying the reasons therefore.
(2) On receipt of an intimation from the Registrar, of his proposal to rescind the resolution under sub-section (1), the said resolution shall cease to have effect until the Registrar passes final orders in the matter.
The general body of a co-operative society shall constitute a committee in accordance with the bye-laws and shall entrust the management of the affairs of the society to such committee:
Provided that in the case of a society registered after, the commencement of this Act, the persons who have signed the application to register the society may appoint a committee to conduct the affairs of the society for the period of three months from the date of the registration, but the committee appointed under this proviso shall cease to function upon the constitution of a new committee which shall be constituted in accordance with the bye-laws within the said period of three months.
1[Provided further that at least one-third of the members of the committee of a village service Society a farmers service society, a Primary Land Development Bank and a
(1) No person shall at the same time, be a chairman of more than one apex or central society, as classified under the rules.
(2) If any person is, on the date of his election or appointment as a chairman of- such apex or central society as aforesaid already a chairman of any such apex or central society then his election or appointment as the case may be, on the date aforesaid, shall be avoid.
(3) If any person is, at the commencement of this Act, a chairman of more than one of such apex or central society then at the expiration of a period of ninety days from such commencement, he shall cease to be a chairman of such societies unless he has previously resigned his chairmanship of more than one of such societies.
(4) No person shall be eligible for being elected or appointed as a member of a c
(1) Where the Government-
(a) has subscribed to the share capital of a co-operative society; or
(b) has assisted indirectly in the formation or augmentation of the share capital of a co-operative society as provided in Chapter VI; or
(c) has guaranteed the repayment of the principal and payment of interest of debentures issued by a co-operative society; or
(d) has guaranteed the repayment of principal amount and payment of interest on loans and advances to a co-operative society;
the Government or any authority specified by the Government in this behalf shall have the right to nominate not more than three members or one-third of the total number of members of the committee of a co-operative society, which
1[(1) Notwithstanding anything contained in this Act or in the bye-laws of the society, where the Government has subscribed to the share capital of a co- operative society to the extent of two lacs of rupees or more, the Government in this behalf may nominate another member in addition to those nominated under section 35 and appoint him as Chief Executive Officer of such society. The member thus nominated and appointed shall hold office during the pleasure of the Government or the specified authority as the case may be.
(2) Where the Government appoints a Chief Executive Officer under this section, the Chief Executive Officer holding office immediately before such appointment shall cease to hold office on such appointment.
(3) The terms and conditions of the Chief Executive Officer appointed under this section shall be such as may be det
1[(1) Notwithstanding anything contained in this Act or in the bye-laws of the society, where the Government has subscribed to the share-capital of a co- operative society to the extent of two lacs of rupees or more, the Government or any authority specified by the Government in this behalf may appoint an Executive Officer of such society. The officer thus appointed shall hold office during the pleasure of the Government or the specified authority as the case may be.
(2) The terms and conditions of the Executive Officer appointed under this section shall be such as may be determined by the Government and the remuneration payable to him shall be paid out of the funds of the Cooperative Society."
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1 Inserted vide Noti No. F. 2(18) vidhai/91, Pub. in Raj, Gaz. Exty., Pt 4(A)
(1) If, in the opinion of the Registrar, the committee of an co-operative society or any member of such committee persistently makes default or is negligent in the performance of the duties imposed on it or him by this Act or the rules or the bye-laws or commits any act which is prejudicial to the interest of the society or its members, or willfully disobeys directions issued by the Registrar for the purpose of securing proper implementation of co-operative production and other development programmes approved or undertaken by the Government, or is otherwise not discharging its or his functions properly, the Registrar may, after giving the committee or the member, as the case may be, a reasonable opportunity to state its or his objections, if any, by order in writing-
1(a) remove the committee and appoint a Government servant as an administrator to manage the affairs of the society
(1) If the committee of a co-operative society is reconstituted at a general meeting of the society or the committee of a co-operative society is removed by the Registrar under section 36 or if the society is ordered to be wound up under section 78, and the outgoing members of the committee refuse to handover charge of the records and property of the society to the new committee or the administrator or the liquidator, as the case may be, the 1[re-constituted or nominated committee] or the administrator or the liquidator may apply to the Magistrate, within whose jurisdiction the society functions, for securing the records and property of the society.
(2) Where the Registrar is satisfied that the books and records of a society are likely to be suppressed, tampered with, or destroyed, or the funds and property of a society are likely to be misappropriated or misapplied, the Registrar
(1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue-
(a) any debt or outstanding demand owing to a co-operative society by any member or past member or deceased member shall be a first charge upon the crops and other agricultural produce, cattle, fodder for cattle, agricultural or industrial implements, or machinery, raw materials for manufacture and any finished products manufactured from such raw materials, belonging to such member, past member or forming part of the assets of the deceased member, as the case may be; and
(b) any outstanding demands or dues payable to a co-operative society formed with the object of providing its members, with dwelling houses by any member or past member in resp
Notwithstanding anything contained in this Act or in any other law for the time being in force-
(a) any person who makes an application to a society of which he is a member for a loan, other than a short term loan as defined in section 84 shall, make a declaration in the prescribed form which ..hall state that the applicant thereby creates a charge on the immovable property owned by him and specified therein for the payment of the amount of the loan which the society may make to the member in pursuance of the application and for all future advances, if any, required by him from time to time which the society may make to him as such member, subject to such maximum as may be determined by the society together with interest on such amount of the loan and advances;
(b) any person who has borrowed a loan, other than a short term loan as defin
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, every member of a joint farming society as classified under the rules, whose lands have been pooled in the manner set out in the bye-laws of the society concerned, shall execute an agreement with the joint farming society specifying the period for which the land shall vest in the joint farming society, and the basis on which the share of his income shall be determined and such other matters as may be specified in the bye-laws.
(2) The agreement executed under sub-section (1) shall be sent by registered post by the joint farming society to the Sub- Registrar having jurisdiction over the area in which the lands are situated.
(3) On receipt of the agreement, the Sub-Registrar shall, notwithstanding anything contained in any law for the time b
Section 40 of the Rajasthan Co-operative Societies Act, 1965, governs the vesting of lands and property in cooperative societies, along with the Registrar's powers concerning property management, transfer, and related issues. It plays a crucial role in ensuring the proper administration and regulation of land and property held by cooperative societies, especially those engaged in agricultural, land development, or housing activities. The section also addresses the Registrar's authority to issue directives, oversee transfers, and ensure compliance with statutory provisions.
Section 40 primarily deals with:- The vesting of lands and immovable property in cooperative societies.- The Registrar's authority to issue orders regarding transfer, vesting, or management of such properties.- The power to declare lands or properties vested in a society as belonging to the society.- The Registrar's jurisdiction to issue directions for the management or transfer of property.- The provisions for safeguarding the interests of members and the society concerning land and property.
Key elements of Section 40 include:- Vesting of land and immovable property in the society.- The Registrar’s power to issue orders for vesting, transfer, or management.- The requirement of proper registration and compliance with procedural formalities.- The authority to declare lands as vested or transferred in accordance with the law.- The scope for the Registrar to intervene in property-related disputes or irregularities.- The protection of rights of members and third parties involved in property transactions.
While Section 40 primarily addresses administrative powers, violations such as:- Unauthorized transfer or alienation of land.- Non-compliance with Registrar’s orders.- Illegal encroachments or dispossession.- Failure to adhere to statutory procedures.may attract penalties under other provisions of the Act, including fines, suspension of management, or criminal prosecution for offences related to land fraud or breach of trust. Specific punishments are generally prescribed under Sections 40(4) and related provisions, which empower authorities to take action against offenders.
Scope of Section 40 - It authorizes the Registrar to vest or transfer lands in cooperative societies, ensuring proper land management and preventing illegal encroachments. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965]
Registrar’s Powers - The Registrar can issue orders for vesting, transfer, or management of land, which are binding unless challenged in accordance with law. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965]
Property Vesting - Lands acquired or vested in societies must be registered and documented properly; unauthorized transfers are voidable. [Source: Section 40(1), Rajasthan Co-operative Societies Act, 1965]
Intervention in Land Disputes - The Registrar has jurisdiction to resolve disputes relating to land or property, including cases of encroachment or illegal possession. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965]
Power to Declare Lands as Vested - The Registrar can declare lands as vested in the society to protect its rights and prevent illegal alienation. [Source: Section 40(2), Rajasthan Co-operative Societies Act, 1965]
Transfer of Property - The Registrar’s orders for transfer must follow procedural due process; any deviation can be challenged in courts. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965]
Protection of Members’ Rights - The provisions aim to safeguard the land rights of members, especially in land-based societies like agricultural or housing cooperatives. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965]
Registrar’s Authority to Issue Directions - The Registrar can issue directions for managing or transferring land, which are enforceable and binding on societies. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965]
Violation and Penalties - Unauthorized transfer or failure to comply with Registrar’s orders may lead to penalties, including fines or criminal proceedings under related sections. [Source: Section 40(4), Rajasthan Co-operative Societies Act, 1965]
Natural Justice and Due Process - Any action under Section 40 affecting land rights must observe principles of natural justice, including notice and hearing. [Source: Judicial interpretation, e.g., Bhanwar Singh vs. State of Rajasthan*]
Judicial Review - Orders issued by the Registrar under Section 40 are subject to judicial review for legality, procedural fairness, and compliance with constitutional principles. [Source: Supreme Court judgments on administrative orders]
Land Disputes and Civil Courts - Disputes over land vesting or transfer not involving management or constitution of the society are generally within civil courts’ jurisdiction unless specifically barred. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965 and judicial precedents]
Power to Rescind or Cancel Orders - The Registrar can revoke or cancel vesting or transfer orders if found illegal or against public interest, following due process. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965]
Protection Against Unauthorized Encroachment - The Registrar’s powers help prevent illegal encroachments, ensuring land remains in lawful possession of the society. [Source: Section 40, Rajasthan Co-operative Societies Act, 1965]
Land Management in Housing Societies - Section 40 is crucial for housing societies to regulate transfer of plots and land, ensuring transparency and legality. [Source: Case law and administrative guidelines]
Legal Remedies - Society or members aggrieved by Registrar’s orders can approach courts for judicial review, but must first exhaust statutory remedies. [Source: Legal principles of administrative law]
Penalties for Non-Compliance - Offenders may face penalties under Sections 40(4) and related provisions for illegal transfers, encroachments, or breach of Registrar’s orders. [Source: Section 40(4), Rajasthan Co-operative Societies Act, 1965]
Amendments and Reforms - The law has evolved to strengthen the Registrar’s powers, with recent amendments emphasizing transparency and accountability in land management. [Source: Rajasthan Cooperative Societies (Amendment) Acts]
This concise legal commentary emphasizes the scope, powers, and judicial considerations surrounding Section 40, highlighting its importance in land and property regulation within cooperative societies under Rajasthan law.
(1) Notwithstanding anything contained in any law for the time being in force, a member of a co-operative society may execute an agreement in such form as may be prescribed in favor of the society providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such an agreement the employer shall, if so required by the co-operative society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amounts so deducted to the society within fourteen days from the date of the deduction.
(3) Wher
A co-operative society shall have a charge upon the share or interest in the capital and on the deposits of a member or a past member and on any dividend, bonus or profits payable to a member or a past member in respect of any debt or outstanding demand owing to the co-operative society and may set off any sum credited or payable to a member towards payment of any such debt or outstanding demand:
Provided that no financing bank to which a co-operative society is affiliated shall have a charge upon any sum invested in the financing bank as reserve fund by the society if the bank is not the sole creditor of the society or be entitled to set off any such sum credited or payable to the society towards any debt due from such society.
Subject to the provisions of Section 42, the share or interest of a member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of court in respect of any debt, or liability incurred by such member or past member, and an official assignee or a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or interest.
(1) The Government may, by notification in the Official Gazette, remit in respect of any class of co-operative societies-
(a) the stamp duty chargeable under any law for the time being in force in respect of any instrument executed by or on behalf of a co-operative society, or by an officer or member thereof and relating to the business of such society, or any class of such instruments or in respect of any award or order made under this Act, in cases where, but for such remission, the co-operative society officer, or member, as the case may be, would be liable to pay such stamp duty;
(b) any fee payable under any law for the time being in force relating to registration of documents or court fees:
Provided that nothing in clause (a) shall apply in respect of bills of exchange, cheques, promisso
Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act, 1908 (Central Act 16 of 1908) shall apply to-
(a) any instrument relating to shares in a co-operative society, notwithstanding that the assets of the society consisting whole or in part of immovable property; or
(b) any debentures issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property except in so far as it entitled the holder to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
(c) any endorsemen
It shall be the duty of the Government to encourage and promote the co-operative movement in the State and to take such steps in this direction as may be necessary.
(1) The Government may subscribe directly to the share capital of a co-operative society with limited liability.
(2) Notwithstanding any agreement to the contrary, the Government shall not be entitled to a divided on the shares of any such co-operative society at a rate higher than that at which such divided is payable to any other shareholder of the society.
The Government may, subject to the appropriate bye-laws, provide moneys to co-operative society (hereinafter in this chapter referred to as an apex society) for the purchase of shares in other co-operative societies with limited liability.
(1) An apex society which is provided with money by the Government under section 48 shall, with such moneys, establish a fund to be called the "Principal State Partnership Fund".
(2) An apex society shall utilise the "Principal State Partnership Fund" for the purpose of-
(a) directly purchasing shares in other co-operative societies with limited liability;
(b) providing moneys to a co-operative society (hereinafter in this chapter referred to as central society) to enable that society to purchase shares in other co-operative societies with limited liability (hereinafter in this Chapter referred to as primary societies);
(c) making payments to the Government in accordance with the provisions of this Chapter; and for no other purpose.
(1) A central society which is provided with moneys by an apex society from the Principal State Partnership Fund shall, with such moneys, establish a fund to be called the "Subsidiary State Partnership Fund".
(2) A central society shall utilise the Subsidiary State Partnership Fund" for the purpose of-
(a) purchasing shares in primary societies;
(b) making payments to the apex society in accordance with the provisions of this Chapter; and for no other purpose.
No shares shall be purchased in a co-operative society from the moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund, except with the previous approval in writing of the Government.
Where any shares are purchased in a co- operative society by-
(a) the Government, or
(b) an apex society or a central society from the Principal State Partnership Fund or the Subsidiary State Partnership Fund, as the case may be, the liability in respect of such shares shall, in the event of the co-operative society being wound up, be limited to the amount paid in respect of such shares.
An apex society which has purchased shares in other co-operative societies from the money in the Principal State Partnership Fund and a central society which has purchased shares in primary societies from the moneys in the Subsidiary State Provident Fund, shall be entitled only to such dividend on the said shares as is declared by the society concerned and is payable to other share holders of that society.
(1) If a co-operative society in which shares are purchased from the Principal State Partnership Fund is wound up or is dissolved, the Government shall not have any claim against the apex society which purchased the shares in respect of any loss arising from such purchase, but the Government shall be entitled to any moneys received by the apex society in liquidation proceedings or on dissolution, as the case may be.
(2) if a co-operative society in which shares are purchased from the Subsidiary State Partnership Fund is wound up or is dissolved, neither the Government nor the apex society shall have any claim against the central society which the apex society shall be entitled to any moneys received by the central society in liquidation proceedings or on dissolution, as the case may be, and such moneys shall be credited to the Principal State Partnership Fund.
(1) All moneys received by an apex society in respect of shares of other co-operative societies purchased from the moneys in the Principal State Partnership fund on redemption of such shares or by way of dividends or otherwise, shall be credited to that Fund.
(2) All moneys received by a central in respect of shares of primary societies purchased from the moneys in the Subsidiary State Partnership Fund on redemption of such shares or by way of dividends or otherwise, shall in the first instance be credited to that Fund and then transferred to the apex society which shall credit them to the Principal State Partnership Fund.
(3) All moneys and dividends referred to in sub-section (1) and sub-section (2) shall, notwithstanding that the shares stand in the name of the apex society or the central society, as the case may be, be paid to the Go
(1) If an apex society which has established a Principal State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or payable to, that Fund shall be paid to the Government.
(2) If a central society which has established a Subsidiary State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or payable to, that Fund shall be paid and credited to the Principal State Partnership Fund from which it received moneys under clause (b) of sub-section (2) of section 49.
Any amount to the credit of Principal State Partnership Fund or a Subsidiary State Partnership Fund shall not form part of the Assets of the apex society or the central society, as the case may be.
Subject to the foregoing provisions of this Chapter,-
(a) the Government may enter into an agreement with an. apex society setting out the terms and conditions on which it shall provide moneys to the apex society for the purpose specified in section 48;
(b) an apex society may with the previous approval of the Government, enter into an agreement with a central society, setting out the terms and conditions on which it shall provide moneys to that society from the Principal State Partnership Fund for the purpose specified in clause (b) of sub-section (2) of section 49.
Notwithstanding anything contained in any law for the time being in force, the Government may,-
(a) give loans or make advances to co-operative societies;
(b) guarantee the repayment of principal and payment of interest on debentures issued by a co-operative society;
(c) guarantee the repayment of share capital of a co-operative society and dividends thereon at such rates as may be specified by the Government;
(d) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society; and
(e) give financial assistance in any other forms, including subsidies, to any co-operative society.
The provisions of sections 48 to 58 of this Chapter shall have effect notwithstanding inconsistent therewith contained in any other law for the time being in force.
No part of the funds other than the net profits of a co-operative society shall be paid by way of bonus or dividend or otherwise distributed among its members:
Provided that a member may be paid remuneration, allowances or honoraria on such scale as may be laid down by the bye-laws for any services rendered by him to the co-operative society.
(1) A co- operative society shall, out of its net profits in any year-
1["(a) transfer, to the reserve funds, such percentage of its profits and within such period as may be prescribed; and".
(b) credit such portion of the profits, as may be prescribed, to the Co-operative Education Fund constituted under the rules.
(2) The balance of the net profits may be utilised for all or any of the following purposes, namely:-
(a) payment of dividend to members on their paid up share capital at a rate not exceeding the prescribed limit;
(b) payment of bonus to members on the amount or volume of business done by them with the society, to the extent and in the manner specified in the bye-laws,
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(1) Except as otherwise provided in sub-section (2), a co-operative society shall invest its funds in one or more of the following-
(a) Central Co-operative Bank;
(b) Apex Bank;
(c) in the shares or securities or debentures issued by any other cooperative society with limited liability;
(d) in any other mode permitted by the rules or by general or special order of the Government.
(2) A co-operative society may deposit its funds for a temporary period in such manner as may be prescribed.
A co- operative society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or. as may be specified in the bye-laws.
(1) A co-operative society shall not make a loan to any person other than a member:
Provided that with the general or special sanction of the Registrar, Co-operative Society may make loans to another co- operative society.
1[(1-A) At least one-third of the total amount of loan to be sanctioned by a primary village service society era farmers society in a year, and not less than twenty-five per cent of the total amount of loan to be sanctioned by a Primary Land Development Bank in a year, shall be sanctioned to those members who belong to weaker sections:
Provided that where in the opinion of the State Government such reservation is not workable, the State Government may fix different percentages of reservation of such loan for weaker sections in different areas.]
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1[Notwithstanding anything contained in any agreement or in any law for the time being in force, a society other than a Land Development Bank shall not charge by way of interest an amount exceeding that of the principal from a member taking short-term loan for a period not exceeding fifteen months or from a member initially taking such short-term, loan but subsequently getting it converted into a medium-term loan on account of any natural calamity, irrespective of whether the loan was or is given before or after the commencement of the Rajasthan Co-operative Societies (Amendment) Act, 1984, subject, however, that the amount of such short-term loan including such portion there of as has been converted into a medium-term loan does not exceed Rs. 2,000/-.]
________________________
1 Inserted w.e.f. 21.7.1984 by section 2 of Rajasthan Act No
Save as provided in section 64 and 65, the transaction of a co-operative with persons other than members shall be subject to such restrictions, if any, as may be prescribed.-
(1) A co-operative society may establish a Contributory Provident Fund for the benefit of its employees to which shall be credited all contributions made by the employees and the society in accordance with the bye-laws of the society.
(2) A Contributory Provident Fund established by a co- operative society under sub-section (1)-
(a) shall not be used in the business of the society;
(b) shall not form part or the assess of the society, and
(c) shall not be liable to attachment or be subject to any other process of any court or other authority.
(1) The Registrar shall audit or cause to be audited by a person authorised by him general or special order in writing in this behalf, the accounts of every co-operative society at least once in each year.
(2) The audit under sub-section (1) shall include an examination of over due debts, if any, the verification or the cash balance and securities; and a valuation or the assets and liabilities of the society.
(3) The Registrar or the authorised person shall have access to all the books, accounts, documents, papers, securities, cash and other properties belonging to, or responsible for the custody of any such books, accounts, documents, papers, securities, cash or other properties, to produce the same at any place at the head quarters of the society or any branch thereof.
(4) Every person, who
(1) If the result of the audit held under section 68 discloses any defects in the working of a co-operative society the Registrar may bring such defects to the notice of the society and if the society is affiliated to another co-operative society, also to the notice of that other society.
(2) The Registrar may make and order directing the society or its officers to take such action as may be specified in the order within the time mentioned therein to remedy the defects disclosed in the audit.
(1) The Registrar may of his own motion, by himself or by a person authorised by him order in writing, hold an inquiry into the constitution, working and financial condition of a co-operative society.
(2) An inquiry of the nature referred to in sub-section (1) shall be held on the application of-
(a) a co-operative society to which the society concerned is affiliated;
(b) a majority of the members of the committee of the society; or
(c) not less than one-third of the total number of members of the society.
(3) The Registrar, or the person authorised by him under sub-section (1) shall, for the purposes of an inquiry under this section, have the following powers, namely:-
&n
(1) The Registrar may of his own motion, or on the application of a creditor of a co-operative society, inspect or direct any person authorised by him by order in writing in this behalf, to inspect the books of the society:
Provided that no such inspection shall be made on the application of a creditor unless the applicant-
(a) satisfies the Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
(b) deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require.
(2) The Registrar shall communicate the result of any such inspection-
(a) where the inspection is
A financing bank shall have the right to inspect the books of any co-operative society which is indebted to it. The inspection may be made either by an officer of the financing bank or by a member of its paid staff certified by the Registrar on the recommendation of the committee of such bank as competent to undertake such inspection. The officer or member so inspecting shall, at all reasonable times, have free access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the society and may also call for such information, statement and returns as may be necessary to ascertain the financial condition of the society and the safety of the sums lent to it by the financing bank.
Where an inquiry is held under section 70, or an inspection is made under section 71 on the application of a creditor, the Registrar may apportion the costs, or such part of the costs as he may deem fit, between the co-operative society to which the society concerned is affiliated, the society, the members or creditor, demanding an inquiry or inspection, and the officers or former officers of the society:
Provided that-
(a) no order of apportionment of the costs shall be made under this section unless the society or the person sought to be made liable to pay the costs there under has had a reasonable opportunity of being heard; and
(b) the Registrar shall state in writing the grounds on which the costs are apportioned.
(1) If in the course of an audit, inquiry, inspection or the winding up of a co-operative society, it is found that any person, who has taken any part in the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, the rules or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or willful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the Registrar may, of his own motion or on the application of the committee, liquidator or any creditor, inquire himself or direct any person authorised by him by an order in writing in this behalf, to inquire into the conduct of such person:
Provided that no such inquiry shall be held after the expiry of six years from the date of any act or o
Legal Comments
(1) Not with standing anything contained in any law for the time being in force, if any dispute touching the constitution, management, or the business of a co-operative society arises-
(a) among members, past members and persons claiming through members, past members and deceased members, or
(b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society, or
(c) between the society or its committee and any past committee, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any deceased officer, deceased agent or deceased employee of the society, or
(d) bet
The Rajasthan Co-operative Societies Act, 1965, provides a legal framework for the establishment, regulation, and management of co-operative societies in Rajasthan. Section 75 specifically addresses the resolution of disputes arising within co-operative societies, emphasizing the need for arbitration and limiting the jurisdiction of civil courts in such matters.
Section 75 of the Rajasthan Co-operative Societies Act, 1965, stipulates that disputes touching the constitution, management, or business of a co-operative society must be referred to the Registrar for resolution. It outlines the types of disputes that fall under this provision and explicitly bars civil courts from entertaining such disputes.
The scope of Section 75 is broad, encompassing various disputes related to the internal functioning of co-operative societies. It is designed to ensure that such disputes are resolved through a specialized mechanism rather than through the general civil court system.
While Section 75 itself does not prescribe specific punishments, it establishes a framework for resolving disputes. Violations of the provisions may lead to dismissal of suits in civil courts and referral to the Registrar.
This commentary provides an overview of Section 75 of the Rajasthan Co-operative Societies Act, 1965, highlighting its implications for dispute resolution within co-operative societies and the limitations on civil court jurisdiction.
(1) Notwithstanding anything contained in the Limitation Act, 1963 (Central Act 36 of 1963), but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to the Registrar under section 75 shall-
(a) when the dispute relates to the recovery of any sum, including interest thereon, due to a society by a member thereof, be computed from the date on which such member dies or ceases to be a member of the society;
(b) when the dispute is between a society or its committee, any past committee, any past or present officer, or past or present agent, or past or present servant or the nominee, heir or legal representative of a deceased officer, deceased agent or deceased servant of the society, or a member, or past member, or the nominee, heir or legal representative of a deceased member, and wh
(1) The Registrar may, on receipt of the reference of a dispute under section 75-
(a) decide the dispute himself, or
(b) transfer it for disposal to any person who has been invested by the Government with powers in that behalf, or
(c) refer it for disposal to one arbitrator.
(2) The Registrar may withdraw any reference transferred or referred for disposal under sub-section (1) and either decide it himself or transfer or refer it again for disposal to another person or arbitrator mentioned in clauses (b) or (c) of that sub- section if the person or arbitrator to whom the dispute was first transferred or referred.--
(i) dies, resigns or is transferred; or
(ii) ha
(1) If the Registrar, after an inquiry has been held under section 70, or an inspection has been made under section 71 or on an audit conducted under section 68 or on receipt of an application made by not less than three-fourths of the members of a co-operative society, present at a special general meeting called for the purpose, is of opinion that the society ought to be wound up, he may, after giving the society an opportunity of making its representation, issue an order directing it to be wound up.
(2) The Registrar may of his own motion and after giving the society an opportunity of being heard, make an order directing the winding up to such society,-
(a) where it is condition of the registration of such society-
(i) that it shall consist of at least fifteen members or fifty members, as th
1[Notwithstanding anything contained in this Act, in the case of an Insured Co-operative Bank-
(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or re-organisation) of the Bank may be made only with the previous sanction in writing of the Reserve Bank of India;
(ii) an order for the winding up of Bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in section 13D of the Deposit Insurance Corporation Act, 1961 (Central Act 47 of 1961);
(iii) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the Bank being conducted in a manner detrimental to the interests of the depositors or for securi
(1) Where the Registrar has made an order under section 78 for the winding up of a co-operative society, he may appoint a liquidator for the purpose and fix his remuneration.
(2) A liquidator shall, on appointment, take into his custody or under his control, all the property, effects and actionable claims to which the society is or appears to be entitled and shall take such steps as he may deem necessary or expedient, to prevent loss or deterioration of, or damage to, such property, effects and claims.
(3) Where an appeal is preferred under section 124, an order of winding up of a co-operative society made under section 78 shall not operate thereafter until the order is confirmed in appeal.
Provided that the liquidator shall continue to have custody or control of the property effects and actio
(1) Subject to any rules made in this behalf, the whole of the assets of a co- operative society in respect of which an order for winding up has been made shall vest in the liquidator appointed under section 79 from the date on which the order takes effect and the liquidator shall have power to realize such assets by sale or otherwise.
(2) Such liquidator shall also have power, subject to the control of the Registrar-
(a) to institute and defend suits and other legal proceedings on behalf of the co-operative society by the name of his office;
(b) to determine from time to time the contribution (including debts due) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal re- preventatives of deceased members or by any officers or former of
(1) The winding up proceedings of a society shall be closed within three years from the date of the order of the winding up, unless the period is extended by the Registrar:
Provided that the Registrar shall not grant any extension for a period exceeding one year at a time and four years in the aggregate, and shall, immediately after the expiry of seven years from the date of the order for winding up of the society deem that the winding up proceedings have been terminated, and pass an order terminating the winding up proceedings. Explanation.-- In the case of the society which is under liquidation proceedings at the commencement of this Act, an order for the winding up of the society shall be deemed for the purpose of this section to have been passed on the date of such commencement.
(2) Notwithstanding anything contained in the foregoing
After all the liabilities including the paid up share capital of the cancelled society have been met, the surplus assets shall not be divided amongst its members but they shall be devoted to any object or objects described in the bye-laws of the society and when no object is so described, to any object of public utility determined by the general meeting of the society and approved by the Registrar or they may in consultation with the members either be assigned by the Registrar in whole or in part to any or all of the following-
(a) an object of public utility;
(b) a charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890, or may be placed in deposit with the financing bank until such time as a new society with similar conditions is registered when, with the consent of the Registrar, such surplus may be credited
Where in respect of a co-operative society which has been ordered to be wound up under section 78, no liquidator has been appointed under section 79 after two months from the date of such order; or if an appeal has been filed, from the date of confirmation of the order in appeal, or where the affairs of a co-operative society in respect of which a liquidator has been appointed under section [illegible] have been wound up, the Registrar shall make an order canceling the registration of the society and the society shall be deemed to be dissolved and shall cease to exist as a corporate body from the date of such order of cancellation.
This Chapter shall apply to-
(a) co-operative banks advancing loans, other than short term and medium term loans, for the purposes herein enumerated, (hereinafter referred to as "Land Development Banks"), that is to say-
(i) land improvement and productive purposes;
(ii) the erection rebuilding or repairing of houses for agricultural purposes;
(iii) the purchase or acquisition of title to agricultural lands by tenants or agriculturists under the Rajasthan Tenancy Act, 1955; or
(iv) the liquidation of debts under the Rajasthan Relief of Agricultural Indebtedness Act, 1957 or any corresponding law for the time being in force in any part of the State; or (v) for the development of animal husbandry;
(1) There shall be a State Land Development Bank for the State .of Rajasthan and as many Land Development Banks as may be deemed necessary.
(2) A reference to Land Mortgage Bank in any law, or instrument, for the time being in force in the State, shall, with effect from the commencement of this Act, be construed as a reference to a Land Development Bank within the meaning of this Chapter.
(3) With effect from the commencement of this Act, and until such time as the names of the Land Mortgage Banks and societies functioning in the State at the commencement of this Act. are changed into Land Development Banks, all acts done by them or mortgages and other documents executed by them, or in their favor, and all suits and other proceedings filed by or against them shall be deemed to have been done, executed or filed, as the case may be, by or
(1) The Registrar, or any other person appointed by the State Government in this behalf, shall be Trustee for the purpose of securing the fulfillment of the obligations of the State Land Development Bank to the holders of debentures issued by it.
(2) The Trustee shall be a corporation sole by the name of the Trustee for the debentures in respect of which he is appointed, and shall have perpetual succession and a common seal, and in his corporate name may sue and be sued.
(3) The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed between the State Land Development Bank and the Trustee as modified from time to time by mutual agreement between them.
(1) With the previous sanction of the State Government and the Trustee and subject to such terms and conditions as the State Government may impose, the State Land Development Bank in the discharge of its function as a Land Development Bank may issue debentures of such denominations, for such period, and at such rates of interest, as it may deem expedient, on the security of mortgages, or mortgages to be acquired or partly on mortgages held and partly to be acquired and properties and other assets of the Land Development Banks.
(2) Every debenture may contain a term fixing a period not exceeding thirty years from the date of issue during which it shall be re-deem able.
(3) The total amount due on debentures issued by the State Land Development Bank, and outstanding at any time, shall not exceed-
&nbs
The principal of, and interest on the debentures issued under the preceding section, or any specified portion thereof, may carry the guarantee of the State Government, subject to such maximum amount as may be fixed by the State Government, and to such conditions as the State Government may think fit to impose.
Upon the issue of debentures under the provisions of section 87, the mortgaged properties and other assets referred to in sub-section (3) of that section held by the State Land Development Bank, shall vest in the Trustee, and the holders of debentures shall have a floating charge on all such mortgages and assets, and on the amount paid under such mortgages, and remaining in the hands of the State Land Development Bank or of the Trustee.
Subject to the provisions of this Act and the rules made there under, it shall be competent for the Land Development Banks to advance loans for the purposes referred to in section 84 and to hold lands the possession of which is transferred to them under the provisions of this Chapter.
(1) When an application for a loan is made for any of the purposes mentioned in section 84, a public notice shall be given of the application in such manner as may be prescribed, calling upon all persons interested to present their objections to the loan, if any, in person, at a time and place fixed therein. The Government may, from time to time, prescribe the persons by whom such public notice shall be given and the manner in which the objections shall be heard and disposed of.
(2) The prescribed officer shall consider every objection submitted under sub-section (1) and make an order in writing either upholding or over-ruling it:
Provided that when the question raised by an objection is. in The opinion of the officer, one of such a nature that it cannot be satisfactorily decided except by a civil court, he shall postpone the proceedings
A written order by the land Development Bank, or persons or committees authorised under the bye-laws of the Bank to make loans for all or any of the purposes specified in section 84, granting, either before or after the commencement of this Act, a loan to or with the consent of a person mentioned therein, for the purpose of carrying out the work specified therein for the benefit of the land or for the productive purpose specified therein, shall for the purposes of this Act be conclusive of the following matters, that is to say-
(a) that the work described or the purpose for which the loan is granted is an improvement or productive purpose, as the case may be, within the meaning of section 84;
(b) that the person had, at the date of the order, a right to make such an improvement, or incur expenditure for productive purpose, as the case ma
(1) A mortgage executed in favor of a Land Development Bank shall have priority over any claim of the Government arising from a loan granted after the execution of the mortgage under the Rajasthan Agricultural Loans Act, 1957.
(2) Notwithstanding anything contained in the Rajasthan Tenancy Act, 1955, or any other corresponding law for the time being in force, where a mortgage in favor of a Land Development Bank is in respect of land in which a tenant has an interest, the mortgage may be against the security of such interest, and the rights of the mortgage shall not be affected by the failure of the tenant to comply with the requirements of such law, and the sale of the land and his interest therein under such law shall be subject to the prior charge of the Land Development Bank.
The mortgages executed in favor of and all other assets transferred to, a Land Development Bank, by the members thereof, before or after the commencement of this Act, shall with effect from the date of such execution or transfer, be deemed to have been transferred by such Land Development Bank to the State Land Development Bank, and shall vest in the State Land Development Bank.
Notwithstanding anything contained in the Indian Registration Act, 1908, it shall not be necessary to register mortgages or leases executed in favor of the Land Development Banks, provided that the Land Development Bank concerned sends within such time and in such manner as may be prescribed, a copy of the instrument whereby immovable property is mortgaged or let out for the purpose of securing repayment of the loan to the Registering Officer within the local limits of whose jurisdiction the whole or any part of the property mortgaged or let out is situate, and such Registering Officer shall file a copy or copies, as the case may be, in his Book No. 1 prescribed under section 51 of the Indian Registration Act, 1908.
Notwithstanding anything contained in any law relating to insolvency and for the time being in force, a mortgage executed in favor of a Land Development Bank shall not be called in question in any in solvency proceedings on the ground that it was not executed in good faith for valuable consideration, or on the ground that it was executed in order to give the Bank a preference over other creditors of the mortgager.
(1) Where a mortgage is executed in favor of a Land Development Bank for payment of prior debts of the mortgager, such bank shall, notwithstanding anything contained in the Transfer of Property Act, 1882, by notice in writing, require any person to whom any such debt is due, to receive payment of such dent or part thereof from the bank at its registered office, within, such period as may be specified in the notice.
(2) Where any such person fails to accept such notice, or to receive such payments, such debts or part thereof, as the case may be, shall cease to carry interest from the expiry of the period specified in the notice:
Provided that where there is a dispute as regards the amount of any such debt, the person to whom such debt is due shall be bound to receive payment of the amount offered by the Land Development Bank towards the d
(1) Mortgages in respect of loans by a Land Development Bank or the State Land Development Bank either before or after the commencement of this Act, by the manager of a Hindu joint family for the improvement of agricultural land or of the methods of cultivation, or for financing any other means to raise the productivity of the land, or for the purchase of land, shall be binding on every member of such joint Hindu family, notwithstanding any law to the contrary.
(2) In other cases, where a mortgage executed in favor of a Land Development Bank or State Land Development Bank either before or after the commencement of this Act, is called in question on the ground that it was executed by the manager of a Hindu joint family for a purpose not binding on the members (whether such members have attained majority or not) thereof, the burden of proving the same shall; notwithstanding any law t
Section 8 of the Hindu Minority and Guardianship Act, 1956 shall apply to mortgages in favor of a Land Development Bank, subject to the modification that reference to the court therein shall be construed as reference to the Collector or his nominee, and the appeal against the order of the Collector or his nominee shall lie to the Revenue Appellate Authority.
(1) Notwithstanding anything contained in the Transfer of Property Act, 1882, or any other law for the time being in force, no mortgager of property mortgaged to a Land Development Bank, shall, except with the prior information in writing to the Bank, lease or create any tenancy rights on any such property:
Provided that the rights of the Land Development Bank shall be enforceable against the tenant or the lessee, as the case may be, as if he himself were a mortgager.
(2) Where land mortgaged with possession to a Land Development Bank, is in the actual possession of a tenant, the mortgager or the Land Development Bank shall give notice to the tenant to pay rent to the Land Development Bank during the currency of the lease and the mortgage and on such notice being given, the tenant shall, notwithstanding anything contained in any law for
Notwithstanding anything contained in section 94, all moneys due under the mortgage, shall, unless otherwise directed by the State Land Development Bank or the Trustee, and communicated to the mortgager, be payable by the mortgager to the Land Development Bank, and such payments shall be as valid as if the mortgage had not been so transferred and the Land Development Bank shall, in the absence of specific direction to the contrary issued by the State Land Development Bank or Trustee and communicated to the Land Development Bank, be entitled to sue on the mortgage or take any other proceeding for the recovery of the moneys due under the mortgage.
Where any property mortgaged to a Land Development Bank is wholly or partially destroyed, or for any reason the security is rendered insufficient and the mortgager, having been given a reasonable insufficient and the mortgager, having been given a reasonable opportunity by the Bank to provide further security enough to render the whole security sufficient, or to repay such portion of the loan as may be determined by the Bank, has failed to provide such security or to repay such portion of the loan, the whole of the loan shall be deemed to fall due at once, and the Bank shall be entitled to take action against the mortgager under section 105 or section 106 for the recovery thereof.
Explanation.-- Security shall be deemed insufficient within the meaning of this section, unless the value of the mortgaged property (including improvements made thereon) exceeds the amount for the time be
(1) Property purchased under sub-section (3) of section 106 by and the property transferred under section 122 to, the Land Development Banks, may be disposed of by such banks by sale within such period as may be fixed by the Trustee, subject to the condition that such sales shall be in favor only of agriculturists eligible to hold land under the Rajasthan Tenancy Act, 1955 or any corresponding law for the time being in force, or may be leased out by them on such terms and conditions as may be laid down by the Government from time to time.
(2) Nothing contained in any law for the time being in force fixing the maximum limit of agricultural holdings shall apply to the acquisition or holding of land by the Land Development Banks under this section.
All loans granted by the Land Development Banks, all interests (if any) chargeable thereon, and costs (if any), incurred in making the same, shall, when they become due, be recoverable by the Land Development Bank concerned.
(1) If any installment payable under a mortgage executed in favor of a Land Development Bank, or any part of such installment, has remained unpaid for more than one month from the date on which it fell due, the committee of such Bank may, in addition to any other remedy available to the Bank, apply to the Registrar or the Collector for the recovery of such installments or part thereof, by distrait and sale of the produce of the mortgaged land, including the standing crops thereon.
(2) On receipt of such application, the Registrar or the Collector as the case may be, may, notwithstanding anything contained in the Transfer of Property Act, 1882, take action in the manner prescribed for the purpose of distaining and selling such produce:
Provided that no distrait shall be made after the expiry of twelve months from the date on which the ins
(1) Notwithstanding anything contained in the Transfer of Property Act, 1882, the Land Development Bank or any person authorised by it in this behalf shall, in case of default of payment of the mortgage money, or any part thereof, have power, in addition to any other remedy available to the Bank, to bring the mortgaged property to sale by public auction in the village in which the mortgaged property is situated or at the nearest place of public resort without the intervention of the Court:
Provided that no action shall be taken under this sub-section and no such power shall be exercised, unless and until-
(a) the Land Development Bank has been previously authorised by the Collector or the Registrar, to exercise the power conferred under this sub-section, after hearing the objections, if any, of the mortgager or mortgagers;
(1) On effecting the sale by a Land Development Bank under section 106, the said Bank shall, in the prescribed manner submit to the State Land Development Bank and the Registrar, a report setting forth the manner in which the sale has been effected and the result of the sale, and the State Land Development Bank may, with the approval of the Registrar, confirm the sale or cancel it.
(2) Where the sale is effected by the State Land Development Bank or the Trustee under section 106, the State Land Development Bank or the Trustee, as the case may be, shall in the prescribed manner, submit to the Registrar, a report setting forth the manner in which the sale has been effected and the result of the sale and the Registrar may confirm or cancel the sale:
Provided that where the Registrar is the Trustee, he shall submit such report to the Governm
(1) The proceeds of every sale effected under section 106 and confirmed under the preceding section, shall be applied first in payment of all costs, charges and expenses incurred in connection with the sale or attempted sales, secondly in payment of any or all interest due on account of the mortgage in consequence whereof the mortgaged property was sold, and thirdly in payment of the principal due on account of the mortgage including costs and charges incidental to the recovery.
(2) If there be any residue from the proceeds of sale, the same shall be paid to the persons-proving himself interested in the property sold, or if there are more such persons than one, then to such persons upon their joint receipt or according to their respective interest therein, as may be determined by Land Development Bank:
Provided that before any such payme
(1) Where a sale of mortgaged property has become absolute under section 107 and the sale proceeds have been received in full by the Land Development Bank, the bank shall-grant a certificate to the purchaser in the prescribed form certifying the property sold, the sale price, the date of its sale, the name of the person who at the time of the sale is declared to be the purchaser, and the date on which the sale becomes absolute, and upon the production of such certificate, the Sub-Registrar appointed under the Indian Registration Act, 1908, within the limits of whose jurisdiction the whole or any part of the property specified in the certificate is situated, shall enter the contents of such certificate in his register relating to immovable property.
(2) (a) where the mortgaged property sold is in the occupancy of the mortgager, or of some person on his behalf, or some person clai
(1) Notwithstanding anything contained in sections 75 and 118, on an application made by a Land Development Bank for the recovery of arrears of any sum advanced by it to any of its members and on its furnishing a statement of account in respect of the arrears, the Registrar may, after making such inquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as arrears.
(2) A certificate by the Registrar under sub-section (1) shall be final and conclusive as to the arrears due. The arrears stated to be due therein shall be recoverable according to the law for the time being in force for the recovery of arrears of land revenue.
(3) It shall be competent for Registrar or a person authorised by him to direct conditional attachment of the property of the mortgager until the arrears due to the Land Deve
(1) During such period as the State Government may, by general or special order notify in the Official Gazette, it shall be competent for the Collector, on application being made to him in this behalf by a Land Development Bank, to recover all sums due to the Land Development Bank (including the cost of such recovery).
(2) Any amount due to a Land Development Bank shall be recoverable by the Collector, or any officer specially authorised by the Collector in this behalf, in all or any of the following modes, namely:-
(a) from the borrower, as if they were arrears of land revenue due by him;
(b) out of the land for the benefit of which the loan has been granted as if they were arrears of land revenue due in respect of that land;
(c) from a surety, if
At any sale of movable or immovable property, held under the provisions of this Chapter, no officer or employees of the Land Development Bank or the State Land Development Bank, except on behalf of the Bank of which he is an officer or an employee, and no person having any duty to perform in connection with such sale, shall either directly or indirectly bid for or acquire or attempt to acquire any interest in such property.
(1) It shall be competent for the State Government to constitute one or more Guarantee Funds on such terms and conditions as it may deem fit, for the purpose of meeting losses that might arise as a result of loans being made by the Land Development Banks on titles to immovable property subsequently found to be defective or for any other purpose under this Chapter, for which in the opinion of the Government, it is necessary to provide for or create a separate Guarantee Fund.
(2) The State Land Development Bank and the Land Development Banks shall contribute to such funds at such rate as may be prescribed, and the constitution, maintenance and utilization of such Fund shall be governed by such rules as may be made by the State Government in this behalf.
It shall be competent for the Registrar to permit any Financing Bank to function as a Land Development Bank under such terms and conditions and for such period as he may deem fit.
The provisions of sections 102 and 103 of the Transfer of Property Act, 1882, and of any rules made under section 104 thereof, shall apply, so far as may be in respect of all notices to be served under this Chapter.
The committee of the State Land Development Banks shall have a general power of supervision over Land Development Banks and may, with the previous sanction of the Government, make regulations, not inconsistent with this Act or the rules made there under, for all or any of the following matters, namely:-
(a) for the inspection of the account books and proceedings of Land Development Banks;
(b) for the submission of returns and reports by such banks in respect of their transactions;
(c) for the periodical settlement of accounts between such banks and the State Land Development Bank, being accounts relating to the payment of the amounts recovered by such banks on mortgages transferred to the State Land Development Bank;
(d) for the form in which applic
notwithstanding anything contained in chapter ix, or any other law for the time being in force, but without prejudice to any other mode of recovery provided in this act, the registrar or any person subordinate to him empowered by the registrar in this behalf, may, on his own motion or on the application of a co-operative society, make an order directing the payment of any debt or outstanding demand due to the society by any member or past or deceased member, by sale of the property or any interest therein, which is subject to a charge under sub-section (1) of section 38;
provided that no order shall be made under this section unless the member, past member or the nominee, heir or legal representative of the deceased member, has been served with a notice of the application and,-
(i) where such person disputes the debt or demand, such disp
(1) every order made by the registrar under sub-section (2) of section 74 or under section 117, every decision or award made under section 77, every order made by the liquidator under section 80 and every order made by the tribunal under sections 123, 125, 126 or 127 and every order made under section 124, shall, if not carried out,-
(a) on a certificate signed by the registrar, or any person authorised by him in this behalf, be deemed to be a decree of a civil court and shall be executed in the same manner as a decree of such court; or
(b) be executed according to the law and under the rules for the time being in force for the recovery of arrears of land revenue:
provided that any application for the recovery in such manner of any sum shall be made, -
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The registrar or any person empowered by him in this behalf shall be deemed, when exercising any powers under this act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be a civil court for the purposes of article 136 of the first schedule to the limitation act, 1963 (central act 36 of 1963).
If the registrar is satisfied on an application, report, inquiry or otherwise, that any person with intent to delay or obstruct the enforcement of any order, decision or award that may be made against him under the provision of this act,-
(a) is about to dispose of the whole or any part of his property, or
(b) is about to remove the whole or any part of his property from the jurisdiction of the registrar, the arbitrator or liquidator, as the case may be,
he may, unless adequate security is furnished, direct the attachment of the said property and such attachment shall have the same effect as if made by a competent civil court.
(1) all sums due from a co-operative society or from an officer or member or past member of a co-operative society as such to the government, including any costs awarded to the government under any provision of this act may, on a certificate issued by the registrar in this behalf, be recovered in the same manner as arrears of land revenue.
(2) sums due from a society to government and recoverable under sub-section (1) may be recovered, firstly from the property of the society; secondly, in the case of a society the liability of the members of which is limited, from the members, past members, or the estates of deceased members, subject to the limit of their liability; and thirdly, in the case of other societies, from the members, past members or the estates of deceased members:
provided that the liability of past members and the estates o
(1) when in any execution of an order sought to be executed under section 117, any property cannot be sold for want of buyers, if such property is in the occupancy of the defaulter or of some person on his behalf or of some person claiming under a title created by the defaulter subsequent to the issue of the certificate under section 117 by the registrar or any person or persons appointed to assist him under section 3, on whom the power to sign such certificate shall have been conferred, the court or the collator, as the case may be, may with the previous consent of the registrar, direct that the said property or any portion thereof shall be transferred to the society which has applied for the execution of the said order and that the said property or the portion shall be delivered to the society in the prescribed manner.
(2) subject to such rules as may be made in this behalf and t
(1) the government shall constitute a tribunal called the Rajasthan state co-operative tribunal, to exercise the functions conferred on the tribunal by or under this act.
(2) the tribunal may consist of one person or of such number of persons as the government may think fit and where the tribunal consists of two or more members, one of them shall be appointed as the chairman.
(3) a person shall not be qualified for appointment as the presiding officer of the tribunal, unless-
(a) he has retired as a judge of a high court in India; or
(b) he is or has been a district judge; or
(c) he has served as a registrar of co-operative societies for not less than three years in any state in india.
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(1) an appeal shall lie under this section against,-
(a) an order of the registrar made under sub-section (2) of section 8 refusing to register a co-operative society;
(b) an order of the registrar made under sub-section (4) of section 13 refusing to register an amendment of the bye-laws of a co- operative society;
(c) an order of the registrar made under sub-section (2) of section 14;
(d) an order of the registrar made under sub-section (1) of section 17;
(e) a decision of a co-operative society other than that of a farming and producers' society, as classified under the rules, refusing to admit any person as a member of the society or expelling any member of the society;
Section 124 of the Rajasthan Co-operative Societies Act, 1965, provides the statutory framework for filing appeals against certain orders passed by authorities under the Act. It ensures a mechanism for review and redressal of decisions affecting co-operative societies and their members, thereby safeguarding their rights and ensuring administrative accountability.
Section 124 delineates the scope of appeals to other authorities against specific orders issued under the Act. It specifies the types of orders that are appealable, such as refusals to register societies, disqualifications, and other administrative decisions, and prescribes the procedure and time limits for filing such appeals.
While Section 124 itself primarily deals with appeals, offences related to non-compliance or false statements in the appeal process may attract penalties under other provisions of the Act, such as Sections 130 and 131, which prescribe fines and penalties for offences.
Note: The references are based on the provided sources, primarily [Jagdish Chand VS Regional Audit Officer], which discusses case law and procedural aspects related to Section 124.
the tribunal may call for and examine the record of any proceedings in which an appeal lies to it for the purpose of satisfying itself as to the legality or propriety of any decision or order passed and if in any case it shall appear to the tribunal that any such decision or order should be modified annulled or revised, the tribunal may pass such order thereon as it may deem fit.
(1) the tribunal may, either on the application of the registrar or on the application of any party interested, review its own order in any case and pass in reference thereto such order as it thinks fit:
provided that no such application shall be entertained unless the tribunal is satisfied that there has been a discovery of new and important matter or evidence which after the exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when its order was made or that there has been some mistake or error apparent on the face of the record or for any other sufficient reason:
provided further that no such order shall be made under this sub- section unless notice has been given to all interested parties and they have been giver a reasonable opportunity of being heard.
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where as appeal is made to the tribunal under section 123 or where the tribunal call for the record of a case under section 125, it may in order to prevent the ends of justice being defeated, make such interlocutory orders pending the decision of the appeal or revision as it may deem fit.
(1) the state government and the registrar may call for the examine the record of any inquiry or the proceedings of any other matter, of any officer subordinate to them, except those referred to in section 125, for the purpose of satisfying themselves as to the legality or propriety of any decision or order passed, and as to the regularity of the proceedings of such officer. if in any case, it appears to the state government, or the registrar, that any decision or order or proceeding so called for should be modified, annulled, or reversed, the state government or the registrar, as the case may be, may after giving persons affected thereby an opportunity of being heard, pass such order thereon as it or he thinks just :
provided that every application to the registrar or the government for the exercise of the powers under this section shall be preferred within ninety days from the da
(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 Indian language is a part:
provided that nothing in the sub-section shall apply to the use by any person or his succeed-in-interest of any name or title under which he carried on business at the date on which-
(a) the co-operative societies acts of the covenanting states in the areas respectively covered by those states, and
(b) the corresponding laws applicable in sunel, abu and ajmer areas before the 1st day of November, 1956 in those areas; came into operation.
(2) every person contravening the provisions of sub-section (1) shall on conviction, be punished with fine which may extend to
it shall be an offence under this act, if-
(a) any person transfers any property in contravention of sub-section (3) of section 38; or
(b) any member or the nominee, .heir or legal representative of deceased member alienates the whole or any part of any property specified in the declaration in contravention of clause (d) of section 39; or
(c) any employer and every director manager, secretary or other officer or agent acting on behalf of such employer who without sufficient cause, fails to make deductions of section 41; or
(d) a committee of a co-operative society or an officer or member thereof fails to invest funds of such society in the manner required by section 63; or
(e) any person collecting share
every society, officer or past officer, member or past member, employee or past employee of a society, or any other person, who commits an offence under section 130 shall, on conviction, be punished,-
(a) if it is an offence under clause (a) of that section, with imprisonment of a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both;
1["(b) if it is an offence under clause (b) of that section, with imprisonment for a term which may extend to six months or with fine which may extend to five thousand rupees, or with both,"; and
(c) if it is an offence under clause (c) of that section, with imprisonment for a term which may extend to one month, or with fine which may extend to five thousand rupees, or with both;
&
(1) no court inferior to that of a magistrate of the first class shall try any offence under this act.
(2) notwithstanding anything contained in the code of criminal procedure, 1[1973 (central act 2 of 1973), it shall be lawful for a magistrate of the first class to pass a sentence of fine on any person convicted of an offence under clause (c) of section 130 as provided under section 131, in excess of his powers under section 32 of that code.
(3) no prosecution under this act shall be lodged, except with the previous sanction of the government in the case of an offence under clause (c) of section 130 and of the registrar in the case of any other offence under this act. such sanction shall not be given, except after hearing the party concerned,by an officer authorised in this behalf by the government by a general or special order, or by t
every co-operative society shall have an address registered in accordance with the rules to which all notices and communications may be sent and shall send to the registrar notice of any change thereof within thirty days of the change.
(1) every member of a co-operative society shall be entitled to inspect, free of cost, at the society's office during office hours or at any time fixed for the purpose by the society, a copy of the act, the rules and the bye-laws, the last audited annual balance sheet, the profit and loss account, a list of the members of the committee, a register of members, the minutes of general meetings, minutes of committee meetings, and those portions of the books and records in which his transactions with the society have been recorded.
(2) a society shall furnish to a member, on request in writing, and on payment of such fees as may be prescribed there for, a copy of any of the documents mentioned in sub-section (1) within one month from the date of payment of such fees.
(1) in performing the functions conferred on it by or under this act, the tribunal, the registrar, the arbitrator, or any other person deciding a dispute and the liquidator of a co-operative society shall have all the powers of a civil court, while trying a suit, under the code of civil procedure, 1908 (central act 5 of 1908), in respect of the following matters, namely:
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of any document;
(c) proof of facts by affidavits; and
(d) issuing commissions for examination of witnesses.
(2) in the case of any affidavit, any officer, appointed by the tribunal, registrar, the arbitrator, or
the registrar, a person exercising the powers of the registrar, a person authorised to audit the accounts of a society under section 68, or to hold an inquiry under section 70, or to make an inspection under section 71, and a person appointed as an administrator under section 36, or as an arbitrator under section 77, or as a liquidator under section 79, shall be deemed to be public servants within , the meaning of section 21 of the Indian penal code.
(1) save as provided in this act, no civil or revenue court shall have any jurisdiction in respect of,-
(a) the registration of a co-operative society or of an amendment of a bye-law;
(b) the removal of a committee;
(c) any dispute required under section 75 to be refined to the registrar; and
(d) any matter concerning the winding up and the dissolution of a cooperative society.
(2) while a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with, or instituted against, the liquidator as such or against the society or any member thereof, except by leave of the registrar and subject to such terms as he may impose.
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Section 137 of the Rajasthan Co-operative Societies Act, 1965, establishes the jurisdictional boundaries for disputes involving cooperative societies, emphasizing the exclusive jurisdiction of the Registrar and the statutory arbitration mechanism over certain disputes, thereby limiting the role of civil courts.
Section 137 primarily bars civil courts from entertaining disputes that are deemed to touch the constitution, management, or business of a cooperative society, unless such disputes do not fall within the scope of Section 75. It mandates that disputes touching the society's constitution or management be referred to the Registrar or arbitration, thus excluding civil court jurisdiction.
Note: The references are based on the provided sources, summarized to highlight key legal principles and judicial interpretations relevant to Section 137 of the Rajasthan Co-operative Societies Act, 1965.
Not with standing anything contained in this act, the government may, by special order in each case and subject to such conditions, if any, as it may impose, exempt any co-operative society from any of the requirements of this act as to registration.
The government may, by general or special order, exempt any co- operative society or any class of societies from any of the provisions of this act or may direct that such provisions shall apply to such society or class of societies with such modifications as may be specified in the order.
Any register or list of members or shares kept by any co-operative society shall be prima facie evidence of any of the following entered therein,-
(a) the date on which the name of any person was entered in such register or list as a member;
(b) the date on which any such person ceased to be a member.
(1) A copy of any entry in a book of a co-operative society regularly kept in the course of its business, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of such entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in the same manner and to the same extent as the original entry itself is admissible.
(2) a co-operative society may grant copies of any document obtained and kept by it in the course of its business, or of any entries in such document; and any copy so granted shall, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document, or the entries therein, as the case may be.
(3) no officer of a co-operative society an
every notice or order issued or made under this act may be served on any person, by properly addressing it to the last known place of residence or business of such person prepaying and posting by registered post a letter containing the notice or order and unless the contrary is proved such service shall be deemed to have been effected at the time at which the letter would be delivered in the ordinary course.
No suit shall be instituted against a co-operative society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of two months next after notice in writing has bee delivered to the registrar, or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims; and the plaint shall contain a statement that such notice has been so delivered or left.
No act of a co-operative society or any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect in the constitution of the society or the committee or in the appointment or election of an officer or on the ground that such officer was disqualified for his appointment.
No suit, prosecution or other legal proceedings shall lie against the registrar or any person subordinate to him or acting on his authority in respect of any thing in good faith done or purporting to have been done under this act.
(1) the provisions of the companies act, 1956 (central act 1 of 1956), shall not apply to co-operative societies.
(2) nothing contained in the Rajasthan relief of agricultural indebtedness act, 1957 or any corresponding law for the time being in force in any part of the state shall apply to loans advanced by co-operative societies under this act.
1[(1)] the government may, by notification in the official gazette, and subject to such conditions, if any, as it may think fit to impose, delegate all or any of the powers of the registrar under this act to any apex or central society, as classified under the rules, or to an officer of any such society.
1(2) the government may, by notification in the official gazette, direct that all or any of the powers exercisable by it under this act or the rules may be exercisable by the registrar or such other officer, and subject to such conditions, if any, as may be specified in the notification.]
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1 Renumbered and inserted by section 11 of Rajsthan Act No. 17 of 1976, published in the Raj. Gaz.Pt. IV-A, Exty. dt. 13.2.1976.
(1) The state government may, for the whole or any part of the state and for any class of co-operative societies, after previous publication, make rules to carry out the purposes of this act:
1[provided that any rule may be made under this section without previous publication if the state government considers that it should be brought into force at once.]
(2) in particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
(i) the application to whom the order refusing the registration of co-operative society may be sent by the registrar;
(ii) the procedure and conditions for change in the form and extent of the liability of a co-operative society
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All rules made under this act shall be laid as soon as may be after they are so made before the house of the state legislature, while it is in session, for a period of not less than fourteen days which may be comprised in one session or in two successive sessions and if, before the expiry of the session in which they are so laid or of the session immediately following, the house of the state legislature makes any modification in any of such rules or resolves that any such rule should not be made, such rule shall thereafter have effect only in such modified form, or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done there under.
(1) no society shall open a branch or a place of business outside the state of Rajasthan, and no co-operative society registered under any law in any other state shall open a branch or place of business in the state of Rajasthan, without the permission or the registrar.
(2) every co-operative society registered under any law in any other state, and permitted to open a branch or place of business in rajasthan under the foregoing sub-section for which has a branch or place of business in Rajasthan at the commencement of this act, shall, within three months from the opening of such branch or place of business or from the commencement of this act, as the case may be, file with the registrar, a certified copy of the bye-laws and amendments and, if these are not written in English language, a certified translation thereof in english or hindi , and shall submit to the registrar such retur
(1) if any difficulty arises in giving effect to the provisions of this act or of any existing law, the government may, as occasion may require, by order, do anything which appears to them to be necessary for the purpose of removing the difficulty:
provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this act.
(2) the provisions made by order under sub-section (1) shall have effect as if enacted in this act, and any such order may be made so as to be retrospective to any date not earlier than the date of the commencement of this act:
provided that no person shall be deemed to be guilty of an offence by reason of so much of any notification as makes any provision thereof retrospective to any date before the making thereof.
notwithstanding anything contained in any law for the time being in force, no legal practitioner shall appear on behalf of any part in any proceeding, other than an appeal or a revision, under this act.
(1) the rajasthan co-operative societies act, 1953 (rajasthan act 4 of 1953) and the rajasthan sahkari bhumi bandhak bank adhiniyam, 1956.(rajasthan adhiniyam 38 of 1956) are hereby repealed.
(2) the repeal under sub-section (1) shall not affect the previous operation of the enactments so repealed and anything done or action taken or deemed to have been done or taken (including any appointment or delegation made, application or other document filed, certificate of registration granted, agreements executed, notification, order, direction or notice issued, regulation, form or bye-law framed and registered, rule made or deemed to be made or proceeding instituted before any registrar, arbitrator, liquidator, or other officer, authority or person) by or under the provisions of those enactments shall, in so far as it is not inconsistent with the provisions of this act, be deemed to have
The Rajasthan Co-operative Societies Act, 1965, serves as a legislative framework for the establishment, regulation, and management of co-operative societies in the state of Rajasthan. Section 153 specifically addresses the repeal of previous legislation and the provisions for the continuation of certain rights and obligations.
Section 153 of the Rajasthan Co-operative Societies Act, 1965, outlines the repeal of the earlier Rajasthan Co-operative Societies Act of 1953 and the Rajasthan Sahkari Bhumi Bandhak Bank Adhiniyam. It also includes provisions for the savings of certain rights and obligations that existed under the repealed laws.
The scope of Section 153 is primarily concerned with ensuring a smooth transition from the old legislative framework to the new one established by the 1965 Act. It aims to protect the interests of stakeholders who were governed by the previous laws.
Section 153 does not prescribe any specific punishment as it primarily deals with the repeal and savings of previous laws rather than outlining offenses or penalties.
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