The UTTAR PRADESH CO-OPERATIVE SOCIETIES ACT, 1965

S.1 Short title extent and commencement

(1) This Act may be called the Uttar Pradesh Co-operative Societies Act, 1965.

(2) It extends to the whole of the State of Uttar Pradesh.

(3) It shall come into force from such date as the State Government may, by notification¹ in the Gazette, appoint in this behalf.

Provided that while appointing such date, the State Government may declare that any provisions to be specified in the declaration shall not come into force from the date so appointed and in that case such provisions shall come into force from such date or dates as the State Government may similarly appoint in that behalf.

S.2 Definitions

In this Act, unless the context otherwise requires-

(a) "Arbitrator" means a person appointed under this Act to decide disputes referred to him by the Registrar ;

²[(a-1) 'agricultural credit society' means a credit society majority of the ordinary members whereof are primarily engaged in agricultural occupation ;

³[(a-2) 'agricultural occupation' shall include-

(i) production, processing or marketing of agricultural crops;
(ii) horticulture, sericulture or animal husbandry which includes piggery, pisciculture, poultry farming and dairying ;
(a-3)<

S.3 Registrar

(1) The State Government may appoint a person to be the Registrar of Co-operative Societies for the State.

(2) The State Government may, for the purposes of this Act, also appoint other persons to assist the Registrar and by general or special order, confer on any such person all or any of the powers of the Registrar.

¹[(3) Where any order has been made under sub-section (2) conferring on any person all or any of the powers of the Registrar under any provision of this Act, such order shall be deemed to confer on him all the powers under that provision as may be amended from time to time.]

S.4 Societies which may be registered

Subject to the provisions of this Act, a society which has as its object the promotion of the economic interest of its members in accordance with co-operative principles or a society established with the object of facilitating the operations of such a society may be registered under this Act.

Explanation- Co-operative principles shall include-

(a) advancement of economic interest of the members in accordance with public morals, decency and the relevant directive principles of State Policy enunciated in the Constitution of India ;

S.5 Registration with limited or unlimited liability

(1) A society may be registered as a co-operative society with limited or unlimited liability ;

Provided that a society having another co-operative society as its ordinary member shall be registered only with limited liability.

(2) The word सीमित or its equivalent in English "Limited" shall be the last word in the name of a society registered under this Act with limited liability.

S.6 Application for registration

(1) An application for the registration of a society shall be made in the manner prescribed to the Registrar in such form as the Registrar may from time to time specify; and the applicants 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) that it is accompanied by three copies of the proposed bye-laws of the society ;

(b) that the applicants are eligible for membership under section 17 ;

(c) that the application is duly signed by e

S.7 Registration

(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;

(d) That the proposed society complies with the requirements of rules in regard to the existence of any conditions in general or for the class of societies to which the particular society belongs and with the requirements of sound business and has reasonable chances of s

S.8 Registration certificate

(1) Where society is registered under this Act or deemed to be registered under the proviso to sub-section (1) of section 7, the Registrar shall issue a certificate of registration signed by him which, unless the registration is proved to have been cancelled, shall be conclusive evidence that the society therein mentioned is a co-operative society duly registered under this Act.

(2) No person or society shall commence business in the name of or professing to be, a co-operative society unless a certificate of registration has been obtained under sub-section (1) for such society and every person or member of society carrying on business in contravention of this sub-section, shall be personally liable for all liabilities incurred in such business.

S.9 Co-operative societies to be bodies corporate

The registration of a 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 purpose for which it was constituted.

S.10 Change of name of co-operative society

(1) A co-operative society may, by amending 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 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 society or of any of its members, past members, officers, past officers, or the heirs of anyh of them, if deceased, or render defective any legal proceeding by or against the co-operative society, and any legal proceedings which might have been continued or commenced by or against the society by its former name, ma

S.11 Change of liabilities

(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 three months from the date of service of the notice upon him, have the option of withdrawing, subject to the provisions of section 41, 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

S.12 Amendment of bye-laws of co-operative society

(1) A co-operative society may, subject to the provisions of this Act and rules, amend its bye-laws in the manner prescribed ;

Provided that no such amendment shall be valid and operative unless it has been registered under this Act.

¹[(2) The proposal for an amendment of the bye-laws shall be forwarded to the Registrar and if the Registrar is satisfied that the proposed amendment-
(i) is not contrary to the objects specified in section 4 of the Act ; and
[(ii) is not contrary to the other provisions of the Act or the rules, he shall register the amendment within one month from the date of receipt of such proposal. If the Registrar does not register the amendm

S.13 When amendment of bye-laws come into force

An amendment of the bye-laws of a co-operative society shall, of it is expressed to come into operation on a particular day after registration come into force on that day, but in all other cases on the day on which it is registered.

S.14 Power to direct amendments in bye-laws

(1) Where the registrar is of the opinion, whether on the representation of a member of a co-operative society, or otherwise, that an amendment in the bye-laws of a co-operative society is necessary or desirable in the interests of such society, or in public interest, he may, under such circumstances as may be prescribed, by order in writing issued to the society by registered post, require the society to make the amendment within such time as he may specify in the order.

(2) If the society fails to make the amendment within the time specified, the Registrar may, after giving the society an opportunity of being heard, [X X X]³ register such amendment and issue to the society by registered post a copy of the amendment certified by him as a copy and such copy shall

S.15 Amalgamation and merger of co-operative societies

(1) Any two or more co-operative societies may, after duly informing the Registrar, at their respective ordinary general meetings, called for the purpose, of which at least fifteen clear days' notice shall be given to their respective members, resolve, by a majority of at least two-thirds of the members present, to amalgamate into some society or to merge into any of them. The resolution (hereinafter called preliminary resolution) shall contain all particulars of amalgamation or merger, as the case may be, including the transfer of assets and liabilities to the new society in case of amalgamation and to the continuing society in case of merger and also the bye-laws of such a society.

¹[(2) Notwithstanding any other provision of this Act or of any bye-law of any society, notices of any meeting referred

S.16 Division of co-operative society

(1) Any co-operative society may, after duly informing the Registrar, at a general meeting called for the purpose of which at least fifteen clear days' notice shall be given to its members resolve to divide itself into two or more societies. The resolution (hereinafter in this section referred to as the preliminary resolution) shall contain proposals for the division of the assets and liabilities of the society among the new societies into which it is proposed to divide it and may prescribe the area of operation of and specify the members who will constitute each of the new societies.

¹[(2) Notwithstanding any other provision of this Act or of any bye-law of such society, notices of any meeting referred to in this section shall be given to the members of the society and a copy of the preliminary resolu

S.17 Persons who may be members of a co-operative society

(1) No person shall be a member of a co-operative society except the following, namely-

(a) an individual who except as provided in sub-section (4) of section 18, section 80 and sub-section (2) of section 81, is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject ;

(b) any other co-operative society ;

(c) the State Government ;

(d) the Central Government ;

S.18 Classes of members

(1) A co-operative society may, in addition to ordinary members, have the following kinds of members-

(a) sympathizer members ;

(b) nominal members ;

(2) (a) A person may be admitted as a sympathizer member if he is genuinely interested in the promotion of the object of the society or in the welfare of the member workers.

(b) The number of sympathizer members in a soc

S.19 Member not to exercise right till due payment made

No member of a co-operative society shall exercise the rights of a member unless he has made such payment to the society in respect of membership or has acquired such interest in the society as may be specified in the rules or the bye-laws of the society.

S.20 Vote of members

A member of a co-operative society shall, notwithstanding the quantum of his interest in the capital of the society, have one vote in the affairs of the society.

Provided that-

(a) no nominal or associate member shall have the right of vote ;

¹[(aa) a member shall have no right of vote if-

(i) he is defaulter and has been a defaulter for a period of not less than six months ; or

(ii) he is a delegate of a society which is such defaulter as is referred to in sub-section (i).

(iii) ²[ * * * * *]

Every individual member, every delegate and every nominee shall exercise his vote in the affairs of a co-operative society in person and no member, delegate or nominee shall be permitted to vote by proxy.

S.22 Restriction on holding of shares

A member who is an individual shall-

(a) neither hold more than such portion of the total share capital of the society nor exceeding one-fifth thereof, as may be prescribed,

(b) nor have or claim any interest in the shares of the society exceeding ¹[such amount as may be prescribed] in nominal value.

S.23 Restrictions on transfers of shares of interest

(1) The transfer of a share or interest of a member in the capital of a co-operative society shall he subject ot scuh conditions and restrictions as to the maximum holding as are specified in section 22.

(2) No transfer by a member of his share or interest in the capital of a co-operative society shall be valid unless-

(a) the membr has held such share or interest for not less than one year ;

(b) the transfer is made to the society or a member of the society; or

(3) Notwithstanding anything contained in sub-section (2) a cooperative society may

S.24 Transfer of interest on death of members

(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 the manner prescribed, or if no person has been so nominated, to such person as may appear to the committee of management to be the heir or legal representative of the deceased member ;

Provided that no such transfer shall be made unless such nominee, heir or legal representative, as the case may be, is admitted as a member of the society ;

Provided further that if any dispute arises whether any person is the heir or legal representative of the deceased member, it shall be referred to the Registrar who shall thereupon refer it for arbitration under sect

S.25 Liability of past member and estate of deceased member

(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 a period of two years from such date.

(2) Where a co-operative society is ordered to be wound up under section 72 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 the order of winding up, shall continue until the entire winding up proceedings are completed, but such l

S.26 Admission to and withdrawal from membership

(1) A person may be admitted as a member of co-operative society subject to the provisions of this Act, the rules and the bye-laws.

(2) Where a person may be admitted as a member of cooperative society, the decision refusing admission shall be communicated by the society to that person within seven days of the date of the decision.

(3) A member of a co-operative society, if he is not in debt to the society or is not a surety for any unpaid debt, may withdraw from the membership of the society after giving at least one month's notice to the society provided that he has put in such minimum period of membership, if any, as may be laid down in the bye-laws of the society which may also provide for a longer period of notice not exceeding six months. After the expiry of the period of notice of withd

S.26-A Universal membership for primary agricultural societies

¹[ 26-A. (1) any individual who qualified for admission to membership under the provision of this Act, the rules and the bye-laws and makes an application in the manner prescribed, for membership of a primary agricultural credit society shall be deemed to have been admitted to the membership of such society from the date of receipt of such application in the office of the society.

(2) If at any time after the date of admission of the individual under sub-section (1), it is discovered that the individual concerned is not qualified, under this Act, the rules or the bye-laws, to become a member of such society, the Registrar may, notwithstanding anything contained in this Act, either suo-moto or on the application of the concerned society within a period of three months from the date of such

S.27 Removal or expulsion of member by a society or the Registrar

(1) A co-operative society may, by resolution, remove orexpel a person from its membership in accordance with such procedure and for such causes and within such period as may be prescribed.

(2) The Registrar may also remove or expel a person from the membership of a co-operative society-

(a) if the person has ceased to fulfill the qualification required for membership, or is disqualified to be a member under this Act or the rules or the bye-laws of the society, and the cooperative society, even when required by the Registrar by order in writing, fails to remove or expel him, in accordance with the provisions of sub-section (1) within thirty days from the receipt of the order of the Registrar, or

S.28 Final authority in co-operative society

Subject to the provisions of this Act and the rules the final authority of co-operative society shall vest in the general body of its members in general meeting ;

Provided that, in such circumstances as may be prescribed, ¹[the final authority shall vest in the delegates of such members elected in the manner prescribed] and assembled in general meeting and in such case all references in this Act, the rules or the bye-laws to the general body and general meeting shall be deemed to be reference to the body consisting of such delegates of members and to the general meeting of such delegates.

S.29 Committee of management

(1) The management of every co-operative society shall vest in a committee of management constituted in accordance with this Act, the rules and the bye-laws which shall exercise such powers and perform such duties as may be conferred or imposed by this Act, the rules and the bye-laws.

²[(2) (a) The term of every Committee of Management shall be five years and the term of elected members of the Committee of Management shall be co-terminus with the term of such Committee.

(b) The provisions of clause (a) shall apply also to a Committee of Management in existence on the date of the commencement of the Uttar Pradesh Co-operative Societies (Amendment) Act, 2013 and to the elected members of such committee
<

S.29-A A Special provision for Primary Agricultural Co-operative Credit Societies, Central Co-operative Banks and Apex Bank

³[(29-A.) Notwithstanding anything to the contrary in any other provision of this Act, rules and Bye-laws of the society, the Committee of Management of a Primary Agricultural Co-operative Credit Society or a Central Co-operative Bank or an apex bank shall exercise such powers and perform such duties as may be necessary and expedient for the purpose of carrying out its functions under this Act which shall include,-

(a) the power to,-

(i) admit members and dispose of applications for shares ;

(ii) interpret the organizational objectives and set specific goals to be achieved towards those objectives ;

¹[(1) Every co-operative society shall have a Chairman and Vice-Chairman elected, nominated or appointed in accordance with provisions of this Act, the rules and the bye-laws.]

(2) The Chairman shall be responsible for the control, supervision and guidance of the affairs and business of the society and shall exercise such powers ad perform such duties as may be conferred or imposed on him by this Act, the rules, the bye-laws and the resolutions of the committee of management. When present, he shall, except as otherwise provided in the rules, preside at the meeting of the general body and the committee of management.

(3) The Vice-Chairman shall except as otherwise prov

S.30-A Motion of nonconfidence against Chairman or Vice-Chairman

³[30-A. (1) A motion expressing non-confidence against the Chairman or the Vice-Chairman of a Co-operative Society shall be made and proceeded with in accordance with the procedure as may be prescribed.

(2) When a motion for non-confidence is carried, the Chairman or the Vice-Chairman against whom it is carried shall cease to hold that office forthwith and shall be succeeded by his successor, who shall be elected by another resolution in the same meeting in the manner as may be prescribed.]

S.31 The Secretary his emoluments and functions

⁴(1) Except in the case of any apex society there shall be a secretary of every co-operative society, to be appointed and removable by the society subject to the provisions of the rules and regulations framed under section 121 and 122. The emoluments and other conditions of service of the Secretary shall be such as may be prescribed in the byelaws of the society made in conformity with the rules and regulations made in this behalf.

Provided that where a service for the post of secretaries common to any class of co-operative societies has been created under section 122-A, the recruitment, appointment, removal and other conditions of service of persons appointed to such posts, including persons appointed to such posts before the creation of such service, shall be governed by the provisions of that

S.31-A Appointment of Managing Director instead of Secretary for Apex Societies

³[31-A (1) For every apex society there shall be, instead of a Secretary, a Managing Director who shall be a government servant not below the rank of a class I officer, nominated by the State Government, and his services shall be deemed to be on deputation with the society and his salary and allowances, as determined by the State Government, shall be paid from the funds of the society.

(2) The Managing Director shall be ex-officio member of the Committee of Management.

(3) All references in the Act to Secretary shall in relation to an apex society be construed, wherever practicable, as references to the Managing Director.

(1) A meeting of the general body of a co-operative society (hereinafter referred to as the annual general meeting) shall be held, once in a co-operative year within such period as may be prescribed, for the purposes of :-

(a) approval of the programme of the activities of the activities of the society prepared by the committee of management for the ensuing co-operative year ;

³[(b) x x x]

(c) consideration of the balance sheet and the annual report for previous co-operative year unless the audit has not been completed within the period specified in

S.33 Other general meeting

(1) The committee of management may, as often as may be necessary for the transaction of business of the co-operative society, call a general meeting of the general body of the society (to be called ordinary general meeting).

(2) The committee of management shall call a general meeting of the general body of the society (to be called extraordinary general meeting) within one month after the receipt of a requisition in writing from the Registrar or from at least one-fifth of the members of the general body of the society. In default of the committee of management to call a meeting, the Registrar or any person duly authorized by him in this behalf shall have the power to call the extraordinary general meeting at such place and time as he may direct.

S.34 Nominees of the Government on the Committee of management

¹[34. (1) Where the State Government has-

(a) subscribed directly to the share capital of a co-operative society under Chapter VI, or

(b) assisted indirectly in the formation or augmentation of the share capital of a co-operative society as provided in Chapter VI; or

(c) given loans or made advances to a co-operative society or guaranteed the repayment of principal and payment of interest or debentures issued by a co-operative society or guaranteed the repayment of principal and payment of interest on loans or advances to a co-operative society ;-

The State Government shall have the right to nominate

S.35 Supersession or suspension of Committee of Management

³[(1) Where, in the opinion of the Registrar, the Committee of Management of any co-operative society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws of the society or commits any act which is prejudicial to the interest of the society or its members, has failed to conduct the election in accordance with provisions of this Act before the expiry of the term of the Committee of Management or is otherwise not functioning properly, the Registrar after affording the Committee of Management a reasonable opportunity of being heard and obtaining the opinion of the General Body of the society in a general meeting called for the purpose in the manner prescribed may, by order in writing, supersede the Committee of Management ;

S.36 Securing possession of record etc

(1) When the Committee of Management of a co-operative society is suspended or superseded under section 35 or if the society is ordered to be wound up under section 72 and outgoing members of the Committee of Management fail to hand over charge of the records and property of the society to a nominee of the Registrar or the Committee, the administrator or administrators appointed under sub-section (2), (3) and (4) of section 35, or the Liquidator, as the case may be, such nominee of the Registrar or the Committee, the administrator or administrators or the Liquidator may apply to any Magistrate within whose jurisdiction the society functions for securing the records and property of the society.

(2) On receipt of an application under sub-section (1) the Magistrate shall take

S.37 Registrar’s emergency powers to seize records etc.

(1) Where the Registrar is satisfied that the books and records of a co-operative society are likely to be tampered with or the funds and property of a society are likely to be misappropriated or misapplied, the Registrar may issue an order directing a person duly authorized by him in writing to seize and take possession of such books, records, funds and property of the society and the officer of the society responsible for the custody of such books, records, funds and property shall give delivery thereof to the person so authorized.

(2) A person authorized by the Registrar under sub-section (1) may for the purpose of execution of the said order request the officer-incharge of the nearest police station to give him necessary police help and such police officer shall thereup

S.38 Removal of an officer of a co-operative society

(1) If in the opinion of the Registrar any officer of a cooperative society has contravened or omitted to comply with any provisions of this Act, the rules or the bye-laws of the society or has forfeited his right to hold office, the Registrar may, without prejudice to any other action that may or can be taken against him, call upon the society to remover within a specified period such officer from the office held by him and where necessary also to disqualify him from holding any office under that society for a period not exceeding three years whereupon officers concerned, pass such orders as it may deem fit.

¹[Provided that on the request of the Reserve Bank of India the competent authority shall remove a director or the secretary/chief executive officer of a Cen

S.39 First charge of cooperative society on certain assets

Notwithstanding anything contained in the Provincial Insolvency Act, 1920, or in the Code of Civil Procedure, 1908 or in any other enactment relating to land-tenure for the time being in force, any debt or outstanding demand due to a co-operative society by any member past or present or stranding against the estate of any deceased member, shall subject to any claim of the Central Government or the State Government arising from a loan granted by it before, but not after, the grant of the loan by the society, or in respect of land revenue or any sum recoverable as arrears of land revenue, be a first charge-
(a) if such debt or demand is due in respect of the supply of, or any loan to provide the means for, seed, manure, labour subsistence, fodder for cattle or any other thing incident

S.40 Deduction from salary to meet society’s claim in certain cases

(1) Notwithstanding anything contained in any law for the time being in force, but subject to such conditions, if any, as may from time to time be laid down by the State Government, a member of a cooperative society may execute an agreement in favour 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) Notwithstanding anything in any law for the time being in force, 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 deductio

S.41 Charge and set-off in respect of shares of interest of members in the capital of a co-operative society

A co-operative society shall have a charge on the share or interest in the capital and on the deposits of a member, a past-member or a deceased member and on any dividend, bonus or profits, payable to a member or a past-member, or the heirs or legal representatives of a deceased member in respect of any debt or outstanding demand owing to the co-operative society and may notwithstanding anything to the contrary contained in any other law for the time being in force, set off any sums so credited or payable to such member or his heirs or legal representatives towards payment of any such debt or outstanding demand ;

Provided that no financing bank to which a co-operative society is affiliated shall gave a charge upon any sum invested in the financing bank as reserve fund by the

S.42 Share of interest not liable to attachment

Subject to the provisions of section 41, 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 a court of justice 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 in solvency shall not be entitled to, or have any claims on, such share or interest.

S.43 Exemption from compulsory registration of instruments

Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act, 1908, shall apply to-
(a) any instrument relating to shares in a co-operative society, notwithstanding that the assets of the society consist in whole or in part of immovable property ; or

(b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holders 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 int

S.44 Promotion of Co-operative Movement by Government

(1) it shall be the duty of the State Government to encourage and promote the co-operative movement in the State and to take such steps in this direction as may be necessary.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the State Government may-

(a) with a view to aid the growth of co-operative societies in general or of any class of co-operative societies, subscribe directly to the share capital of a co-operative society with limited liability with its consent;

(b) subject to any rules made in this behalf, provide money to a State-level co

S.45 Principal State partnership Fund

(1) An apex society which is provided with moneys by the State Government under section 44 shall, with such money, establish a Fund to be called the "Principal State Partnership Fund".

(2) An apex society shall utilize 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 which includes in its membership other co-operative societies, to enable that society ¹[ X X X ] to purchase shares in other affiliated co-operative societies with lim

S.46 Subsidiary State Partnership Fund

(1) A central society which is provided with moneys by an apex society form 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 utilize 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.

S.47 Approval of State Government for purchase of shares

No share 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 State Government.

S.48 Liability to be limited in respect of certain shares

Where any shares are purchased in a co-operative society by-

(a) the State Government; or

(b) an apex society from the Principal State Partnership Fund; or

(c) a central society from the Subsidiary State Partnership Fund, the liability in respect of such shares shall, in the event of the co-operative society being wound up, be limited to the nominal value of the shares.

S.49 Restrictions on amount of dividend

An apex society which has purchased shares in other cooperative societies from the moneys in the Principal State Partnership Fund and a central society which has purchased shares in primary societies from the moneys in the Subsidiary State Partnership Fund shall be entitled only to such dividend on the said shares as if declared by the society concerned and is payable to other share-holders of that society.

S.50 Indemnity of apex and central societies

(1) If a co-operative society in which shares are purchased from the Principal State Partnership Fund is would up or is dissolved, the State Government shall not have any claim against an apex society which purchased the shares in respect of any loss arising from such purchase, but the State Government shall be entitled to any moneys received in connection with such shares by the apex society in winding up proceedings or on dissolution, as the case may be.

(2) If a co-operative society in which shares are purchased from the Subsdiary State Partnership Funds is wound up or is dissolved, neither the State Government nor the apex society shall have any claim against the central society which purchased the shares in respect of any loss arising from such purchase; but the apex

S.51 Disposal of share capital and dividends etc.

(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 society in respect of shares of primary societies purchased from the money in the Subsidiary State Partnership Fund on redemption of such shares or by way 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-sections (1) and (2) shall, notwithstandin

S.52 Disposal of Principal State Partnership Fund and Subsidiary State Partnership Fund on winding up of an apex or a central society

(1) If an apex society which has established a Principal to the Partnership Fung is wound up or is dissolved, all moneys to the credit of, or payable to, that Fund shall be paid to the State 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 45.

S.53 Principal State Partnership fund and Subsidiary State Partnership Fund not to form part of the assets

53. Any amount to the credit of a 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.

S.54 Terms and conditions for providing moneys

Subject to the foregoing provisions of this Chapter-

(a) the State 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 45 ;

(b) an apex society may, with the previous approval of the State 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 (a) of sub-section (2) of section 46.

S.55 Other forms of State-aid to cooperative societies

Subject to the rules made in this behalf, the State 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 ;

(d) give financial assistance in any other form including subsidies, to a co-operative society.

S.56 Provisions of this Chapter to override other laws

56. The provisions of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

S.57 Fund not to be divided

Except as otherwise specifically provided in this Act, 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 on such scale as may be laid down in the bye-laws for any services rendered by him to the co-operative society.

S.58 Disposal of net profits

¹[(1) the net profit of the Co-operative Society in a co-operative year shall be computed after deducting the following from its gross profit in that year-

(a) interest that is overdue ;

(b) managerial expenses ;

(d) interest on loans and deposits ;

(e) audit fee ;

Subject to the provisions of the rules a co-operative society may invest or deposit its funds-

(a) in any of securities specified in section 20 of the Indian Trust Act, 1882 ; or

(b) in the shares or debentures of any other co-operative society ; or

(d) in any other mode as may be prescribed.

³[Provided that in the case of a Co-operative Credit society, the committee of management shall be competent to invest its surplus and other funds in any financial institution regulated by Reserve Bank in the interest of the society.]

S.60 Restriction of borrow in

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.

⁴[Provided that a Primary Agriculture Credit Co-operative Society shall receive deposits only from its ordinary members admitted under section-17 of this Act and no other person shall be allowed to make deposit in a Primary Agriculture Credit Co-operative Society.]

S.61 Restrictions on loan

(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 a co-operative society may make loans to another co-operative society.

(2) Notwithstanding anything contained in sub-section (1) a co-operative society may make a loan to a depositor on the security of his deposit.

(3) The state Government may by a notification in the Gazette generally or specially prohibit or restrict the lending of money on mortgage of immovable property by a co-operative society.

S.62 Restrictions on other transactions with nonmembers

62. Save as provided in sections 60 and 61 the transactions of a co-operative society, including making of deposits of its funds, with persons other than members shall be subject to such restrictions, if any, as may be prescribed.

S.63 Contributory Provident Fund

(1) A co-operative society having such number or class of employees as may be prescribed, shall establish a contributory provident fund for the benefit of such 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) shall not-

(a) be used in the business of the society ;

(b) form part of the assets of the society ;

S.64 Audit

(1) The Registrar, or any other person appointed by the state Government, shall audit or cause to be audited by a person authorized by him by general or special order in writing and possessing such qualifications as may be specified by the State Government in this behalf, accounts of every co-operative society, ¹[within six months of the close of the financial year to which such accounts relate.]

²[Provided that the audit of a Co-operative Bank shall be conducted by the Chartered Accountants from the panel approved by the National Bank Chartered Accountants shall be appointed by the concerned bank from the approved panel. The fess of Chartered Accountants shall be determined and paid by the concerned bank.

(1) The Registrar may, of his own accord, himself, or by a person authorized by him by 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 by the Registrar or by a person authorized by him in writing in this behalf on the application of-

(a) a co-operative society to which the society concerned is affiliated ;

(b) not less than one-third of the total members of the society ;

S.66 Inspection books and property of a co-operative society

(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 authorized by him by order in writhing in this behalf, to inspect books, cash and other property of the society ;

Provided that no such inspection shall be made on the application of a creditor unless the applicant satisfies the Registrar that a debt is still due to him and that he has demanded payment thereof and has not received satisfaction within a reasonable time.

(2) The Registrar shall communicate the results of any such inspection :-

(a) where the inspection is made of his own mo

S.67 Costs of inquiry

Where an inquiry is held under section 65, or an inspection is made under section 66 on the application of a creditor, the Registrar may apportion the cost, 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 for such apportionment shall be made unless the society or the person south to be made liable to pay the costs thereunder has been afforded a reasonable opportunity of being heard ;

(b) the

S.68 Surcharge

(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 is or was entrusted with the organization or management of such society or who is or has at any time been an officer or an employee of the society, has made or caused to be 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 authorized by him by an order in writing in this behalf to inquire into the conduct of such person ;

Provided t

S.69 Registrar’s power to order remedying of defects

69. If as a result of audit held under section 64 or an inquiry under section 65, or an inspection under section 66, the Registrar is of opinion that the society is not working on sound lines, or its management is defective he may, without prejudice to any other action under this Act, make an order directing the society or its officers to take such action not inconsistent with this Act, the rules and the bye-laws as may be specified in the order to remedy the defects within the time specified therein.

S.70 Disputes which may be referred to arbitration

(1) Notwithstanding anything contained in any law for the time being in force, if any dispute relating to the constitution, management or the business of a co-operative society other than a dispute regarding disciplinary action taken against a paid servant of a 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 any person claiming through a member, past member or deceased member, and the society, its committee of management [hereinafter in this chapter referred to as the committee] or any officer, agent or employee or the society, including any past officer, agent or employee, or

S.71 Reference of dispute to arbitration

On receipt of a reference under sub-section (1) of section 70, the Registrar may, subject to the provisions of the rules, if any-

(a) decide the dispute himself ; or

(b) refer it for decision to an arbitrator appointed by him; or

(c) refer it, if the parties so request in writing, for decision to a board of arbitrators consisting of three persons to be appointed in the prescribed manner.

(2) The Registrar may, for reasons to be recorded withdraw any reference made under clause (b) or (c) or sub-section (1) and refer it t

S.71-A Powers of creditor society against debtor society and its members

¹[71-A. (1) If a co-operative society is unable to pay its debts (hereinafter in this section referred to as the debtor-society) by reason of its members defaulting in the payment of the moneys due to another co-operative society (hereinafter in this section referred to as the creditor-society), and the Committee of Management of the debtor-society omits or neglects to take necessary steps for recovery of money due from its members, the creditor-society may, notwithstanding anything in this Act, direct the said committee by a notice in writing to proceed against the defaulting members in accordance with the provisions of [section 70, section 91, section 92 or section 95-A]² as the case may be.

(2) If the Committee of Management of the debtor-society fails to comply with the notice re

S.72 Winding up of co-operative societies

(1) If the Registrar, after an enquiry has been held under section 65, or an inspection has been made under section 66 or on receipt of an application made by not less than three-fourth of the members of a co-operative society, is of the opinion that the society ought to be wound up, he may pass an order directing it to be wound up.

(2) The Registrar may of his own motion and after giving such notice as may be prescribed pass an order directing the winding up of a co-operative society-

(a) where the registration of the co-operative society was obtained by fraud or mistake ; or

(b) where the member of ordinary members

S.73 Liquidator

(1) Where the Registrar has made an order under section 72 for the winding up of a co-operative society, he may appoint a person to be a liquidator for the purpose and, if necessary, 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. The liquidator shall keep full accounts of all such property, effects and actionable claims and be responsible for their safe custody.

(3) Where an appeal is preferred under section 98 aga

S.74 Power of liquidator

(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 passed, shall vest in the liquidator appointed under section 73 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 and o

S.75 Bar of suit in winding up and dissolution matters

75. Save in so far as is expressly provided in this Act, no civil court shall take cognizance of any matter connected with the winding up or dissolution of a co-operative society under this Act and when a winding order has been made, no suit or legal proceedings shall lie or be proceeded with against the society except by leave of the Registrar and subject to such terms as he may impose.

S.76 Cancellation of registration of a co-operative society

76. Where in respect of a co-operative society which has been ordered to be wound up under section 72, the Registrar is of opinion that it is not necessary to appoint a liquidator, or where the affairs of a co-operative society in respect of which a liquidator has been appointed under section 73 have been wound up, the Registrar shall make an order cancelling 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.

S.77 Registration of co-operative farming societies

(1) Where any ten or more persons-

(a) holding bhumidhari or sirdari rights in land in a circle, and desiring to pool it ; or

(b) intending together to obtain, in the name of the society land in a circle, by purchase, lease or otherwise ;

form a society with the object of jointly using such land for any purpose connected with agriculture, horticulture, sericulture or animal husbandry which includes piggery, pisciculture and poultry farming or for the development of any cottage industry subsidiary to any such purpose along with such purpose, such society (to be hereinafter called a "co-operative farming society"

S.78 Certain requirements of registration

An application for registration of farming society shall be accompanied by-

(a) extracts from the record of rights showing the total area with the recorded numbers of all the fields which will be contributed to the society ;

(b) in the case of society covered by clause (b) of sub-section (1) of section 77, only a description of the land intended to be obtained and the manner of obtaining it and the plans for developing and using the same ;

S.79 Consequences of registration

(1) When a co-operative farming society is registered under section 77, all land in the circle held by a member, whether as bhumidhar or sirdar, other than land in possession of his asami, till such time as it is so held by the asami, shall be deemed to have passed into the possession, control and management of the co-operative farming society, which shall thereupon hold such land in accordance with the provisions of this Chapter and may use the same for any of the purposes mentioned in sub-section (1) of section 77 ;

Provided that nothing in this sub-section shall apply to any land on which a farmhouse has been built or to such land, not exceeding one half of an acre in area, appurtenant to the farmhouse as the member, at the time of applying for membership of the society, opts to r

S.80 Lunacy of member

80. If a member of a co-operative farming society becomes a lunatic, he may continue to be a member through his curator who may act in his behalf as if he were the member himself.

S.81 Admission of new members

(1) Any person who is a resident of the circle where a co-operative farming society has been formed or who intends to settle down in the circle or who cultivates land therein, may be admitted as a member thereof, upon such terms and conditions as may be laid down in the bye-laws of the society.

(2) A minor or a lunatic holding land in the circle as a bhumidhar or sirdar, may through his legal guardian or curator, as the case may be, be admitted as a member of a co-operative farming society in that circle and in such a case, the guardian or the curator may act on behalf of the minor or the lunatic as if he were the member himself.

(3) Where a person is admitted as a member of the society on the conditio

S.82 Effect of cessation of membership

(1) Subject to the other provisions of this Act and the rules and the bye-laws where a member who contributed land to the co-operative farming society ceases to be a member , he shall be given back the land contributed by him, or, in the interests of compactness of the land left with the society or of the land being returned to the member, any other land of equivalent value belonging to the society or any other member whose written consent to such exchange has been obtained ;

Provided that the society shall be entitled to re-imburse itself from such member the cost of any improvement or operations effected by the society, benefiting, or contributing to or helping in production from, the land to be returned ;

Prov

S.83 Heirs entitled to become members of the cooperative farming society U. P. Act I 1951

83. When a member whose land is held by a co-operative farming society, dies, his hers under the U. P. Zamindari Abolition and Land Reforms Act, 1950, in respect of such land, shall become members of the society and if any such heir is a minor or a lunatic his legal guardian or curator if he as the case may be, shall act in his behalf as were a member himself.

S.84 Consolidation of the land held by the co-operative farming society

(1) It shall be the duty of every co-operative farming society to take steps for the consolidation of the land held by it.

(2) A co-operative farming society may make an application containing such particulars as may be prescribed to the Assistant Collector incharge of the sub-division for consolidation of the land held by it.

(3) The Assistant Collector shall, unless for reasons to be recorded he considers it inexpedient, pass an order for the consolidation of the land and may, for such purpose, direct exchange of land within the circle.

(4) In directing exchange of the land, the Assistant Collector shall, as far as possible, order land to given in exchange approximately equal in value to the land taken in exchange ; and, where the

S.85 Distribution of profit

(1) A co-operative farming society shall carry at least one-twentieth of its net profits to a fund called the reserve fund.

(2) A co-operative farming society may out of its net profits pay to such extent and in such manner as may be prescribed, bonus to its members in respect of their land and labour contributions made to the society.

(3) The provisions of sections 58, in so far as they are not inconsistent with sub-sections (1) and (2), shall also apply to the utilization of the net profits of a co-operative farming society.

S.86 Power of a co-operative farming society to raise loan on the mortgage of loan held by it

86. Subject to such conditions as may be prescribed, a co-operative farming society may for the purpose of raising a loan from the State Government or any co-operative society, mortgage without possession any land held by it in its own name and after obtaining an authorization in writing from the members concerned, the land contributed by its members under sub-section (1) of section 79, anything to the contrary contained in the Transfer of Property Act, 1882, or any other law for the time being in force notwithstanding.

S.87 Concessions and facilities for co-operative farming societies

Without prejudice to any other concession admissible to co-operative societies in general under this Act, the co-operative farming societies shall be entitled to such other concessions, facilities and priorities as may be prescribed and there may, amongst others, include the following ;

(a) reduction in land revenue ;

(b) reduction in irrigation charges, taxes by local bodies and sales tax on the purchase of diesel oil, petrol and mobil oil for agricultural purpose ;

(d) priority in the construction of irrigation and other pr

S.88 Power to make rules

(1) In addition to rules framed under section 130, the State Government may make rules for the purpose of carrying into effect the provisions of this Chapter.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for :-

(a) the grounds on which a co-operative farming society may grant permission to a bhumidhar member for disposition of his land under section 79 ;

(b) the principles on which and the manner in which cost and compensation shall be determined or re-imbursed or paid under section 82;

S.89 Definitions U. P. Act No. 1 of 1951

89. Words and expressions used in the preceding sections and not defined in this Act but defied in U. P. Zamindari Abolition and Land reforms Act, 1950, shall have the meanings assigned to them in that Act.

S.90 Provisions of chapter to prevail over other law

90. The provisions of this Chapter shall take effect notwithstanding anything to the contrary in this Act or any other enactment for the time being in force.

S.90-A Interpretations Act No. 47 of 1961

90-A. In this Chapter ‘insured co-operative bank’ means a co-operative bank insured under the Deposit Insurance Corporation Act, 1961, hereinafter in this Chapter referred to as the said Act.

S.90-B Special provisions applicable to insured cooperative banks

Notwithstanding anything contained in this Act, the following provisions shall apply to every insured co-operative bank, namely :-

(i) an order sanctioning a scheme or resolution for the amalgamation or merger or division or winding up an insured co-operative bank may be made by the Registrar only with previous sanction in writing of the Reserve Bank ;

(ii) an order for the winding up of an insured co-operative bank shall be made under the provisions of this Act if so required by the Reserve Bank in the circumstances referred to in the section 13-D of the said Act ;

(iii) if the Reserve Bank is of opinion that it is necessary so to do in the public interest or for preventing the affairs of an ins

S.90-C

²[The provisions of section 90-B shall be applicable to all the banks whether Insured or not and if advised by the Reserve Bank for the supersession of its Committee of management or its winding up or liquidation and appointment of liquidator the Registrar shall execute it within one month.]

S.91 Enforcement of charge

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 other gazetted officer subordinate to him and authorized by him in this behalf may on the application of a co-operative society and on being satisfied of the existence of the debt or outstanding demand, make an order directing the payment of such debt or outstanding demands 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 section 39 ;

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 applicat

S.92 Execution of certain orders and awards

Every award made under section 71 and capable of execution in the manner provided below and every order so capable of execution made by the Registrar under section 67 or sub-section (2) of section 68 or under section 91, or by the liquidator under section 74 or by an appellate authority on appeal under section 97 or 98 or on review under section 99 or as an interlocutory order under section 100 [or a certificate for recovery issued under section 95-A]¹ shall, if not carried out, be executed-

(a) in the manner provided by law for the time being in force for the recovery of arrears of land revenue ;

Provided that an application for the recovery of any such sum is made to the Collector and accompanied by a c

S.92-A Appointment of Amins and other staff

²[92-A. (1) There shall be appointed such number of Amins and other staff as may be determined by the State Government from time to time, for collection of an amount due to a Co-operative Society or for execution of a process issued in the proceedings of execution of an award, order or certificate for recovery under clause (a) or clause (b) of section 92.

(2) The State Government may by rules regulate the recruitment and conditions of service of Amins and other staff.

S.92-B Co-operative Collection Fund

(1) There shall be established a fund, to be called the Co-operative Collection Fund to which the following amounts shall be credited, namely :-

(a) all costs of collection recovered on an amount due to a Co-operative Collection Society ;

(b) all costs of execution recovered on an award, order or certificate for recovery under clause (a) or clause (b) of section 92 ;

(2) The fund established under sub-section (1) shall be utilized for meeting out all expenses relati

S.93 Registrar or person empowered by him to be a civil court for certain purposes

93. 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 steps in aid of such recovery, to be civil court for the purposes of Article 136 of the Schedule to the Indian Limitation Act, 1963.

S.94 Attachment of property before award or order

94. If the Registrar is satisfied on 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 provisions of this Act, is about to dispose of, or remover from the jurisdiction of the Registrar, the arbitrator, the board of arbitrators or the liquidator, as the case may be, the whole or any part of his property, he may, unless adequate security is furnished, direct the attachment of the said property, and such attachment shall have the same effect as made by a competent civil court.

S.95 Recover of sums due to Government

(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 State Government or the Central Government, including any costs awarded to any such Government under any provisions of this Act, may, on 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 the State Government or the Central 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 member

S.95-A Special provision for recovery of certain dues of agricultural society

¹[95-A. (1) The registrar may, on an application made by a society referred to in section 34 or an agricultural credit society for the recovery of arrears of any loan advanced by it or any installment thereof to any member and on its furnishing a statement of accounts in respect of such loan and after making such inquiries, if any, as he thinks fit, issue a certificate for recovery of the amounts due.

(2) A certificate issued by the Registrar under sub-section (1) shall be final and conclusive proof of the dues which shall be 2executable under section 92.]²

S.96 Co-operative Tribunal

(1) The State Government may constitute a tribunal or tribunals, each to be called Co-operative Tribunal, to exercise the functions conferred on the tribunal under this Chapter and where more than one tribunal is constituted, the State Government may fix, by order in writing, the area within which or the class of cases over which each tribunal shall exercise jurisdiction.

(2) A Tribunal shall consist of ¹[ * * *] three persons possessing such qualifications as may be prescribed.

(3) Where the tribunal consists of three members, an two members shall form the quorum for the disposal of its business ;

Provided

S.97 Appeals against awards of Registrar

(1) Any person aggrieved by any award of the Registrar made under clause (a) of sub-section (1), or sub-section (2) of section 71 may, within thirty days after the date on which the award is communicated to such person, appeal to the Tribunal.

(2) The Tribunal after hearing an appeal under this section may pass such order as it may deem just.

S.98 The awards orders and decisions Appeal against

(1) An appeal against -

(a) an order of the Registrar made under sub-section (2) of section 7 refusing to register a co-operative society ;

²[(b) an order of the Registrar under sub-section (3) of section 12 refusing to register, or under sub-section (2) of section 14 registering, an amendment in the bye-laws of a co-operative society ;]²

(c) a decision of co-operative society refusing to admit any person as a member of the society under sub-section (2) of section 26 or expelling any member of the society under sub-section (1) of section 27 ³[or an order passed under sub-section (1) of

S.99 Review of order of appellate authority

(1) The appellate authority under section 97 or section 98, as the case may be, may on the application of any party, review its order in any case and pass in reference thereto such order as it thinks fit ;

Provided that no such application shall be entertained unless the appellate authority is satisfied that there has been a discovery of new and important matter or evidence which, after exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when the order was made or that there has been some mistake or error apparent on the face of the record or for any other sufficient reason ;

Provided further that no such order shall be made under this sub-section unless

S.100 Interim orders

100. Where an appeal is preferred under section 97 or section 98, the appellate authority may, in order to present the ends of justice being defeated, make such interlocutory orders pending the decision of the appeal as it may deem fit.

S.101 Transfer of appeals

(1) The State Government may, on the application of any party and after affording an opportunity to the other party of being heard, transfer an appeal filed under section 97 from one Tribunal to another Tribunal.

(2) The State Government may transfer to itself an appeal filed under section 98 pending before the Registrar of Co-operative Societies appointed under sub-section (1) of section 3 and dispose it off.

(3) The Registrar of Co-operative Societies appointed under sub-section (1) of section 3 may transfer an appeal pending before one officer exercising the powers of Registrar under sub-section (2) of section 3 to any other officer exercising similar powers or transfer an appeal pending before any such officer t

S.102 Finality of orders and decisions

Every award made under section 71 and every order of the nature referred to in sub-section (1) of section 98 where no appeal has been preferred against such award or order under section 97 or section 98, as the case may be, and every decision in appeal under the said section, shall, subject to section 99, be final and binding on the parties concerned and shall not be questioned in any court.

S.103 Offence and penalties under the Act

(1) It shall be an offence under this Act, if-

(i) a committee of management of a co-operative society or a member or an officer thereof fails without reasonable cause to submit any return, report or information required under the provisions of this Act by the Registrar or by a person of a rank not below that specified the State Government duly authorized by the Registrar in this behalf, or willfully makes a false return or furnishes false information or fails to maintain proper accounts ; or

(ii) an officer, employee or a member of a co-operative society fraudulently destroys, mutilates, alters, falsifies or abets the destruction, mutilation alteration, or falsification of any books, papers, or securities, or makes or abets the making of any false entry

S.104 Penalty for contravention of section 8 or section 106

Any person contravening the provisions of sub-section (2) of section 8 or of section 106 shall be punishable with fine which may extend to ²[two thousand five hundred rupees]² and in the case of continuing offence with further fine of ²[fifty rupees] for each day on which the offence is continued after conviction therefor.

S.104-A Compound of offences

³[104-A. (1) The Registrar may, either before or after the institution of the prosecution, compound any offence punishable under this Act on realization of such amount of composition fee as he thinks fit, and where such offence is punishable with fine only then such composition fee shall not exceed the maximum amount of fine fixed for the offence.

(2) Where the offence is so compounded-

(a) before the institution of the prosecution, the offender shall not be liable to prosecution for such offence and shall, if in custody, be set at liberty ;

(b) after the institution of the prosecution, the composition shall amount to acquittal of the accused.]³

S.105 Cognizance of offence

(1) No court, inferior to that of a stipendiary magistrate of the first class shall try any offence under this Act.

(2) No prosecution shall be instituted under this Act without the previous sanction of the Registrar and such sanction shall not be given without affording to the person sought to be prosecuted an opportunity to present his case.

S.106 Prohibition against the use of word Sahkari or Co-operative

No person other than a co-operative society shall trade or carry on business under any name or title of which the word Sahkari or its equivalent in English, co-operative forms part ;

Provided that nothing in this section shall apply to the use by any person or his successor in interest of any name or title under which he carried on business at the date on which the Co-operative Societies Act, 1912, had come into operation.

S.106-A Prohibition of use of certain words by a society other than a bank

¹[106-A. Prohibition of use of certain words by a society other than a bank-No Co-operative Society other than a Cooperative Society other than a Co-operative Bank and the Uttar Pradesh Sahkari Gram Vikas Bank shall use the word "Bank", "Banker" and "Banking" in its name.]¹

S.107 Address of co-operative society

(1) Every co-operative society shall have an address registered in the prescribed manner and all notices and communications to the society may be sent at such address. The society shall sent to the Registrar notice of any change of such address within thirty days of the change.

²[(2) Every co-operative society shall, at every office or place where it carries on business, display its name and address of its registered office along with the words "registered under the Uttar Pradesh Co-operative Societies Act, 1965" in legible character at a conspicuous place and shall also mention the same-

(a) in all notices and other publications authorized by it ;

S.108 Copies of Act etc. to be open for inspection

³[108. Every Co-operative Society shall keep a copy of this Act, the rules made thereunder, its bye-laws last audited annual balance sheet, profit and loss account and minutes of the general meetings open to inspection free of charge at the registered address of the society.]³

S.109 Powers of civil court to Tribunals, arbitrators others in certain matters

(1) While deciding a dispute, making inquiry or inspection, hearing an appeal or investigating any claim, the Registrar, the arbitrator, the board of arbitrators, the Tribunal or the liquidator shall have all the powers of a Civil procedure, 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 ;

(d) issuing commissions for examination of witness

S.110 Exemption from Indian Limitation Act, 1963

Notwithstanding any provision in the Indian Limitation Act, 1963, the period of limitation for the institution of a suit to recover any sum including interest thereon due to a co-operative society by a member thereof, shall be computed form the date on which such member dies or ceases to be a member of the society

S.111 Bar of jurisdiction of court

Save as expressly 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 its bye-laws or of an amendment of a bye-laws ;

(b) the supersession or suspension of a committee of management ;

(d) any other order or award made under this Act.

S.112 Power to exempt society from conditions of registration

Notwithstanding anything contained in this Act, the State 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

S.113 Filling of returns

¹[113. (1) Every Co-operative society shall file returns within six months of the close of every financial year to the Registrar or any officer authorized by him including the following matters, namely :-

(a) annual report of its activities ;

(b) its audited statement of accounts ;

(d) list of amendment to the bye-laws of the Co-operative Society, if any.

(e) declaration regarding date of holding of its General Body meeting and conduct the election when due, and

(f) any other information as required by the Registrar.

(2) Every co-operative society shall be covered by the right to information Act, 2005.]¹

S.114 Register of members

Any register or list of member or shares kept by any cooperative society shall be prima facie evidence of any of the following particulars 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.

S.115 Proof of the entries in books of co-operative societies

(1) A copy of any entry in a book of a co-operative society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceeding as prima facie 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 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, are admissible.

¹[115-A. (1) A Co-operative Society which gives loans to its members or a co-operative society or a class of co-operative societies, as may be notified by the State Government shall provide to each member pass-book which shall contain the details of transaction with the member, such as, the date of the transaction, the amount of loan advanced, the rate of interest, the repayments made by the member, the amount of the principal and interest due and such other particulars as may be prescribed. The entries of the pass-book shall be up to dated from time to time and shall be countersigned by such officer of the cooperative society as may be authorized by it in this behalf and for this purpose such member shall present the pass-book to such officer who shall issue a receipt there of if the pass book is required to be detained for making entries therein.

¹[117-A. No expenditure from the funds of a society shall be incurred without prior sanction in writing of the Registrar for the purposes of defraying the cost of any proceedings field or instituted in any court by any officer or Committee of Management of the Registrar or the State Government under section 29, section 34, section 35 or section 35-A.]

S.118 Acts of cooperative societies not to be invalidated by certain defects

No act of a co-operative society or any committee of management or of any officer of a co-operative society shall be deemed to be invalid by reason only of the existence of any defect in the constitution of such society or committee or in the appointment or election of such an officer or on the ground that such officer was disqualified for such appointment or election.

S.119 Indemnity U. P. Act no. XVI of 1964

No suit, prosecution, or other legal proceeding shall lie against the trustee appointed under the U. P. Co-operative Land Development Banks Act, 1964, the Registrar or any person subordinate to him or acting on his authority, a liquidator, an arbitrator, the board of arbitrators, the Tribunal or any member thereof in respect of anything in good faith done or purporting to have been done under this Act.

S.120 Qualifications, for appointment as secretary manager, etc. of cooperative societies

(1) No person shall be appointed by a co-operative society as secretary, manager, accountant or as any other officer to be paid or remunerated by the society unless he possesses such qualifications and furnishes such security, if any, as may be specified by the Registrar from time to time in respect of any co-operative society or class of societies.

(2) Any person appointed in contravention of the provisions contained in sub-section (1) shall be liable to removal form his officer by the Registrar.

S.121 Power of Registrar to determine terms of employment of society

(1) The Registrar may, from time to time, frame regulations to regulate the emoluments and other conditions of service including the disciplinary control of employee in a co-operative society or a class of cooperative societies and any society to which such terms are applicable shall comply with those regulations and with any orders of the Registrar issued to secure such compliance.

(2) The regulations framed under sub-section (1) shall be published in the Gazette and take effect from the date of such publication.

S.122 Authority to control employees of co-operative societies

(1) The State Government may constitute an authority or authorities, or a class of co-operative societies and may require such authority or authorities to frame regulations regarding recruitment, emoluments, terms and conditions of service including disciplinary control of such employees and, subject to the provisions contained in section 70, settlement of disputes between an employee of a co-operative society and the society.

(2) The regulations framed under sub-section (1) shall be subject to the approval of the State Government and shall, after such approval, be published in the Gazette and take effect from the date of such publication and shall supersede any regulations made under section 121.

S.122-A Centralization of certain services

¹[122-A. (1) Notwithstanding anything contained in this Act, the State Government may by rules provide for the creation of one or more services of such employees of such co-operative societies or class of co-operative societies as the State Government may think fit, common to such co-operative societies and prescribe the method of recruitment, appointment, removal and other conditions of service of persons appointed to any such service.

(2) When any such service is created, all employees of such societies existing on the date of creation of such service on the posts included in such service, shall be deemed to have been provisionally absorbed in the service with effect from the date of creation of such service ;

Provided that any such employee may, by notice in writing to the

S.123 Constitution or recognition of co-operative federal authority to supervise working of cooperative societies

(1) The State Government may constitute or recognize one or more co-operative federal authorities, in such manner as may be prescribed and subject to such conditions as the State Government may impose, for the supervision of co-operative societies or a class of co-operative societies may grant loans or subsidies to such authority or authorities in the manner prescribed.

(2) The State Government may, by general or special order, require a co-operative society or a class of co-operative societies to make contribution of such a sum every year as may be fixed by the Registrar towards the full or partial recoupment of expenditure incurred or likely to be incurred in respect of supervision of societies by the feral authority or authorities mentioned in sub-section (1).

(a) to take measures for the observance of co-operative principles;

(b) to promote and organize co-operative societies and for this purpose frame model bye-laws, issue guide lines for making regulations sand policies for consideration ;

(d) to undertake research and evaluation and assist in preparation of perspective development plans of member

S.124 Registrar and other officers to be public servants Act XLV of 1860

The Registrar or any person appointed, or authorized to conduct audit under section 64 or to hold inquiry under section 65 or to make inspection under section 66, or authorized under section 123 to conduct inspection, an arbitrator or a member of the board of arbitrators to whom any dispute is referred under section 71, or a member of the Tribunal or a liquidator, or any person authorized by the Registrar under section 93 to make attachment and sale ²[or any officer of the Co-operative Society] shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code.

S.125 Powers of Registrar to direct amalgamation or merger of co-operative societies

(1) Where in the opinion of the Registrar amalgamation or merger of two or more co-operative societies is necessary or desirable for increasing their strength or usefulness, he may, notwithstanding anything to the contrary contained in this Act, after consulting the financing bank, if any, to which the societies are indebted, call upon such societies by order in writing to amalgamate or merge, within such time as may be specified by him, into one society, and thereupon the societies shall take all such steps as may be necessary for that purpose in accordance with the provisions of section 15.

(2) On the failure of the societies to amalgamate or merge in accordance with the order passed under sub-section (1) the Registrar may ³[X X X] by order in writing direct amalgamation or merger of the societies i

S.125-A Special provision in respect of cooperative sugar mills

[125-A]¹ (1) (a) Notwithstanding anything to the contrary contained in any other provision of this Act or the rules made thereunder or the bye-laws of the societies concerned of in any other law for the time being in force, where a Co-operative Sugar Mill in which Majority of shares are held by the State Government, and the State Government is satisfied that neither the Sugar Mill is being run as sound business nor there is any chance of it being run as sound business, it may recommends the Registrar to transfer such Cooperative Sugar Mill to any other society, company, firm or body and on the receipt of the recommendation of the State Government, the Registrar shall after consulting the financing Bank or Financing Institution, if any, to which such sugar mill is indebted, call up the committee concerned by notice in writing containing such particulars as may be prescribed and within such time as may be specified in the notice to transfer its assets or its assets and

S.126 Power of registrar to direct division of co-operative society in to two or more co-operative societies

(1) Where in the opinion of the Registrar it is essential in public interest or in the interest of the co-operative movement or desirable for the purpose of securing better management of a cooperative society, that any co-operative society should be divided to form two or more societies, he may, notwithstanding anything to the contrary contained in this Act, after consulting the financing bank, if any, to which the society is indebted, call upon such society by order in writing to divide itself in to two or more societies with such constitutions, assets, liabilities, rights, duties and obligations as may be specified in the order and thereupon in the society shall take all such steps as may be necessary for that purpose in accordance with the provisions of section 16.

(2) on the failure of the society to divide

S.127 Writing off of non-recoverable assets

A co-operative society may, with the previous approval of the Registrar, write off such of the assets as are bad and cannot be recovered.

S.128 Registrars power to annul resolution of cooperative society or cancel order passed by an officer of a co-operative society in certain cases

The Registrar may -

(i) annul any resolution passed by the committee of management, or the general body of any co-operative society ; or

(ii) cancel any order passed by an officer of a co-operative society;

If he is of the opinion that the resolution or the order, as the case may be, is not covered by the objects of the society, or is in contravention of the provisions of this Act, the rules or the bye-laws of the society, whereupon every such resolution or order shall become void and inoperative and be deleted from the records of the society.

¹[Provided that, the Registrar shall, befor

S.129 Registrars power to permit a co-operative society to function as a Land Development Bank

It shall be competent for the Registrar to permit any cooperative society carrying on the business of banking to function as a Land Development Bank under such terms and conditions and for such period as he may deem fit. Thereupon the provisions of any law relating to Co-operative Land Development Banks for the time being in force in Uttar Pradesh shall also be applicable to such co-operative society.

S.130 Power to make rules

(1) The State Government may ²[ * * *] make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the power under sub-section (1), the rules to be made under this section may provide for all or any of the following matters ;

(i) the applicant to whom, and the manner in which, the order refusing the registration of a co-operative society may be communicated by the Registrar under sub-section (2) of section 7 ;

(ii) the matters in respect of which a co-operative society shall or may make bye-laws ;

S.131 Provisions in regard to existing societies and their bye-laws Act X of 1904

(1) Any co-operative society existing on the date coming into force of this Act and registered under the Co-operative Credit Societies Act, 1904, or the Co-operative Societies Act, 1912, or under any other law relating to co-operative societies in force in the State of Uttar Pradesh shall be deemed to be registered under this Act, and its bye-laws shall so far as the same are not inconsistent with the express provisions of this Act ²[or the rules made thereunder] continue in force until altered or rescinded according to the provisions of this Act ³[and the rules made thereunder.]

(2) Any co-operative society to which sub-section (1) applies and which conforms to the requirements of section 77 shall be deemed to be a co-operative farming society for the purposes of Chapter XI.

(1) Any suit, other proceeding, inquiry or inspection instituted or commenced under the Co-operative societies Act, 1912, shall so far as may be, deemed to have been instituted or commenced under this Act and may be continued accordingly.

(2) Any power, function or duty required to be exercised, performed or discharged under this Act by an authority different from the authority provided for that purpose under the Co-operative Societies Act, 1912, shall until such authority is constituted or appointed under this Act, continue to be exercised, performed or discharged by the authority hitherto exercising, performing or discharging the power, function or duty and the Registrar shall have the power to take measures in the manner prescribed for the early constitution or appointment of the authority unde

S.133 Power to remove difficulties

¹[(1) The State Government may from time to time, by notification make such incidental and consequential order as may appear to it to be necessary or desirable for the removal of any difficulty in any matter relating to elections under the provisions of this Act or rules made thereunder.]

(2) An order, made under sub-section (1) shall be laid, as soon as may be, before both the Houses of the State Legislature.

S.134 Repeals, amendment and construction of enactments U. P. Act No. II of 1904

(1) The Co-operative Societies Act, 1912, as amended from time to time in its application to Uttar Pradesh is hereby repealed and the provision of section 6 and 24 of the U. P. General Clauses Act, 1904, shall apply to the repeal of the Co-operative Societies Act, 1912, as if it were an Uttar Pradesh Act.

(2) All references to the Co-operative Societies Act, 1912, occurring in any enactment made by any authority in India and for the time being in force in the State of Uttar Pradesh shall in its application to the said State, be construed as reference to the relevant provisions of this Act.

(3) Sections 295 to 318 of the U. P. Zamindari Abolition and Land Reforms Act, 1950, are hereby repealed.

S.135 Certain Acts to apply to co-operative societies U. P. Act XIV of 1947 U. P. Act XXVIII of 1947

The provision contained in the Industrial Disputes Act, 1947 and the U. P. Industrial Disputes Act, 1947 shall not apply to Cooperative Societies.