MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960
( 1 ) This Act may be called the Maharashtra Co-operative Societies Act, 1960.
( 2) It extends to the whole of the State of Maharashtra.
( 3) It shall come into force on1such date as the State Government may, by notification in the Official Gazette, appoint.
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1. 26th day of January 1962, wide G.N., C. & R.D.D. No. SCL 1061/135-G, dated 24th January 1962.
In this Act, unless the context otherwise requires,--
(1) "agricultural marketing society" means a society--
(a) the object of which is the marketing of agricultural produce and the supply of implements and other requisites for agricultural production, and
(b) not less than three-fourths of the members of which are agriculturists, or societies formed by agriculturists;
1 [(2) "apex society", means a society,--
(a) the area of operation of which extends to the whole of the State of Maharashtra,
(b) the main object of which is to promote the principal objects of the societies affiliated to it as members and to provide for the facilities and services to them, and<
Section 2 of the Maharashtra Co-operative Societies Act, 1960, provides definitions critical for interpreting the provisions of the Act. It lays down the meanings of key terms used throughout the legislation, thereby establishing the foundation for legal interpretation and enforcement.
Section 2 enumerates various definitions, including "member," "officer," "society," "dispute," and other essential terms. It aims to clarify the scope and application of the Act by providing precise meanings to terms that are central to the functioning of co-operative societies.
Section 2 itself does not prescribe punishments; however, violations related to misinterpretation or misuse of terms defined herein can lead to penalties under other sections, such as penalties for contravention of the Act or its rules (e.g., penalties for illegal membership or unauthorized management actions).
In conclusion, Section 2 of the Maharashtra Co-operative Societies Act, 1960, plays a pivotal role in shaping the legal landscape of cooperative societies by providing clear, broad, and inclusive definitions that govern membership, management, dispute resolution, and procedural law. Its interpretative clarity ensures consistency, fairness, and effective governance within the cooperative sector.
Note: References are provided as per the given sources, using square brackets for clarity.
3.Registrar 1 [and his subordinates]
TheState Government may appoint a person to be the Registrar of Co-operativeSocieties for the State; and may appoint one or more persons to assist suchRegistrar 2 [with such designations,and in such local areas or throughout the State, as it may specify in thatbehalf,] and may, by general or special order, confer on any suchperson or persons all or any of the powers of the Registrar under this Act. Theperson or persons so appointed to assist the Registrar and on whom any powersof the Registrar are conferred, shall work under thegeneral guidance, superintendence and control of the Registrar. 3 [They shall be subordinateto the Registrar, and subordination of suchpersons amongst themselvesshall be such as may be determined by the State Government.].
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1[ 3A. Temporary vacancies
If the Registrar or a person appointed to assist such Registrar is disabled from performing his duties or for any reason vacates his office or leaves his jurisdiction or dies, then--
(a) in the case of the Registrar, the Additional or Joint Registrar, in the office of
the Registrar, and
(b) in the case of a person appointed to assist the Registrar, the senior most officer holding the next higher post, in the respective office,
shall, unless other provision has been made in that behalf, hold temporarily the office of the Registrar or, as the case may be, of the person appointed to assist the Registrar in addition to his own office and shall be held to be the Registrar or the pers
A society, which has as its objects the promotion of the economic interests or general welfare of its members, or of the public, in accordance will co-operative principles, or a society established with the object of facilitating the operations of any such society, may be registered under this Act;
Provided that, no society shall be registered if it is likely to be economically unsound, or the registration of which may have an adverse effect on development1[of the co-operative movement, or the registration of which may be contrary to the policy directives which the State Government may, from time to time, issue.].
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1. These words were substituted for the words "of the co-operative movement," by Mah. 20 of 1986, s. 4.
A society may be registered with limited or unlimited liability.
( 1) No society, other than a federal society, shall be registered under this Act, unless it consists of at least ten persons 1[or such higher number of persons as the Registrar may, having regard to the objects and economic viability of a society and development of the co-operative movement, determine from time to time for a class of societies] (each of such persons being a member of a different family), who are qualified to be members under this Act, and who reside in the area of operation of the society:
2[Provided that, a lift irrigation society consisting of less than ten but of five or more such persons may be registered under this Act.]
5[Provided further that, the condition regarding residence residence of the members in the area of operation of the society shall not apply for registration of the society, being the co-operative c
7. Power to exempt societies1[or class of societies] from conditions as to registration
Notwithstanding anything contained in this Act, the State Government may,2[by general or special order, exempt any society or class of societies from any of the requirements of this Act as to registration, subject to such conditions (if any) as it may impose.]
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1. These words were inserted, by Mah. 27 of 1969 , s. 5(b).
2. This portion was sub stituted for the original portion by Mah. 27 of 1969 , s. 5 (a). 4.
Section 7 of the Maharashtra Co-operative Societies Act, 1960, grants the State Government the power to exempt societies or classes of societies from certain conditions related to registration. This provision provides flexibility to the regulatory framework, allowing the government to facilitate the formation and functioning of societies in the public interest or for specific purposes.
Section 7 states that the State Government may, by general or special order, exempt any society or class of societies from any of the requirements of the Act concerning registration. This exemption can be granted to promote ease of formation or operation of societies, especially in cases where compliance with certain conditions may hinder their objectives.
Section 7 itself does not prescribe any punishment. Its primary function is to empower the government to grant exemptions. Violations or misuse of this power could potentially lead to legal challenges, but the section does not specify penalties.
Note: The references are based on the provided sources, primarily the general legal texts and case law summaries related to the Maharashtra Co-operative Societies Act, 1960.
(1) For the purposes of registration, an applicationshall be made to the Registrar in theprescribed form, and shall be accompanied by four copies of the proposed by-laws of thesociety 1 [andsuch registration fee as may be prescribed in this behalf. Differentregistration fees may be prescribed for different classes of societies, regardbeing had to the service involved in processing an application forregistration]. The person by whom, or on whosebehalf, such application is made, shall furnish such information in regard to thesociety, as the Registrar may require.
(2) The application shall be signed--
(a)in the case of a society other than a federal society by at least ten persons(each of such persons being a member of a different family), who are qualifiedunder this Act, and
(b)in the case of a
( 1) If the Registrar is satisfied that a proposed society has complied with the provisions of this Act and the rules,1[or any other law for the time being in force, or policy directives issued by the State Government under section 4] and that its proposed by-laws are not contrary to this Act or to the rules, he2[shall, within two months], from the date of receipt of the application register the society and its by-laws.
3[( 2) Where there is a failure on the part of the Registrar to dispose of such application within the period aforesaid, the Registrar shall, within a period of fifteen days from the date of expiration of that period refer the application to the next higher officer and where the Registrar himself is the registering officer, to the State Government, who or which, as the case may be, shall dispose of the application within two months from the date of its receipt and o
A certificate of registration signed by the Registrar, shall be conclusive evidence that the society therein mentioned, is duly registered, unless it is proved that the registration of the society has been cancelled.
When,1[* * * * *] any question arises whether a person is an agriculturist or not, or whether any person resides in the area of operation of the society or not,
2[or whether a person is or is not engaged in or carrying on any profession, business or employment, or whether a person belongs or does not belong to such class of persons as declared under sub-section ( 1A)of section 22 and has or has not incurred a disqualification under that sub-section,] such question shall be decided by the Registrar3[and his decision shall be final, but no decision adverse to any such person shall be given without giving him an opportunity of being heard.]
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1 . The words "for the purpose of the formation, or registration or continuance, of a society." were deleted, by
(1)The Registrar shall classify all societies into one or other of the classes of societies defined in section 2 and also into such sub-classes thereof as may be prescribed by rules.
(2) The Registrar may, for reasons to be recorded in writing, alter the classification of a society from one class of society to another, or from onesubclass thereof to another; and may, in the public interest and subject to such terms and conditions as he may think fit to impose, allow any society so classified to undertake the activities of a society belonging to another class.
(3) A list of all societies so classified shall be published by the Registrar every three years in such manner as the State Government may, from time to time direct.
( 1) No amendment of the by-laws of a society shall be valid until registered under this Act. For the purpose of registration of an amendment of the bye-laws, a copy of the amendment passed, in the manner prescribed, at a general meeting of the society, shall be forwarded to the Registrar. 1[Every application of registration of an amendment of the bye-laws shall 2 [* * *] be disposed of by the Registrar within a period of two months from the date of its receipt.
7[Provided that, the application for registration of the amendment of bye-laws of the co-operative credit structure entity shall disposed of, by the Registrar within a period of one month from the date of its receipt.]
4 [(1A) Where there is a failure on the part of the Registrar to dispose of such application within the period aforesaid, the Registrar shall, within a period of f
(1) If it appears to the Registrar that an amendment of the bye-laws of a society is necessary or desirable in the interest of such society, he may call upon the society, in the manner prescribed, to make the amendment within such time as he may specify.
(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 arid after consulting such State federal society as may be notified by the State Government, register such amendment, and issue to the society a copy of such amendment certified by him. With effect from the date of the registration of the amendment in the manner aforesaid, the bye-laws shall be deemed to have been duly amended accordingly; and the bye-laws as amended shall, subject to appeal (if any), be binding on the society and itsmembers.
(1) A society may, by resolution passed at a general meeting and with the approval of the Registrar, change its name; but such change shall not affect any right or obligation of the society, or of any of its members, or past members, or deceased members; and any legal proceedings pending before any persons, authority or court may be continued by or against the society, under its new name.
(2) Where a society changes its name, the Registrar shall enter the new name in its place in the register of societies and shall also amend the certificate of registration accordingly.
(1) Subject to the provisions of this Act and the rules, a society may, by amendment of its bye-laws, change the form or extent of its liability.
(2) When a 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 anything in 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 such notice upon him, have the option of withdrawing his shares, deposits or loans.
(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 society, changing the form or extent of its liability, sh
(1) A society may, with the previous approval of the Registrar, by resolution passed by two-thirds majority of the members present and voting at a special general meeting held for the purpose, decide--
(a) to amalgamate with another society;
(b) be transfer its assets and liabilities, in whole or in part, to any other society;
(c) to divide itself into two or more societies; or
(d) to convert itself into another class of society:
Provided that, when such amalgamation, transfer, division or conversion, aforesaid, involves a transfer of the liabilities of a society to any othersociety, no order on the resolution shall be passed by the Registrar, unless he is satisfied that--
(1) Where the Registrar is satisfied that it isessential in the public interest or in the interest of the co-operativemovement, or for the purpose of securing the proper management of any society,that two or more societies should amalgamate or any societyshould be divided to form two or moresocieties or shouldbe reorganised then notwithstanding anything contained in the last precedingsection but subjectto the provisions of this section, the Registrar may, after consulting suchfederal society as may be notified by the State Government byorder notified in the Official Gazette, provide for theamalgamation, division or reorganisation, of those societies into a singlesociety, or into societies with such constitution, property rights, interestsand authorities, and such liabilities, duties and obligations, as may bespecified in the order.
(2) No order shall be made under this section, unl
1 [18A. Amalgamation of co-operative banks
(1) Where the Registrar is satisfied that it isessential in the public interest, or in order to secure the proper management of one or moreco-operative banks that two or more such banks should be amalgamated, then notwithstanding anythingcontained in section 17, the Registrar may, after consulting such federal society orother authority as may be notified bythe State Government in the OfficialGazette, by order provide for the amalgamation of those banks intoa single bank, with such constitution, property, rights, interests andauthorities, and such liabilities, duties, and obligations as may be specifiedin the order.Such ordermay provide for the reduction of the interest or rights which themembers, depositors, creditors,employees and otherpersons may have in or against any bank to be amalgamated to such extent as theRegistrar considers neces
1 [18B. Amalgamation of primary agricultural creditsocieties
(1) Where the Registrar is satisfied that it isessential--
(a)for ensuring economic viability of one or more primary agricultural creditssocieties;
(b) foravoiding overlapping or conflict of jurisdictions of such societies in any area;
(c) inorder to secure the proper managementof one or more such societies;
(d) in theinterest of the credit structure or co-operative movement in the State aswhole;
(e) in theinterest of the depositors; or
(f) forany otherreason in the public interest,
thattwo or more primary agricu
1 [18C. Reorganisation of societies on account ofalteration of limits of local areas in which they operate
(1) Where the area of operation of any society orsocieties is restricted to any district, taluka, municipal area or anyother local area and such area isdivided into two or more areas, or merged in any other area, or is diminished or increased orotherwise altered, under any law forthe time being in force and the State Government is satisfied that in thepublic interest, or in the interest of the co-operative movement, or in theinterest of the society or societies, or for the purpose of proper demarcationof area of operation for the societies in each area, it is essential toreorganise any such society or societies, the State Government may by anorder, published in the Official Gazette, and in suchother manner as it deems fit, providefor division of any existing society into two o
Where a proposal for a compromise or arrangement--
(a) between a society and its creditors, or
(b) between a society and its members,
is approved at a special general meeting called for the purpose, the Registrar may on the application of the society or of any member or of any creditor of the society, or in the case of a society which is being wound up, of the liquidator, order reconstruction in the prescribed manner, of the society.
( 1) Any two or more societies may, with the prior approval of the Registrar by resolution passed by three-fourths maj ority of the me mbers present and voting at a general me eting of each such society, enter into partnership for carrying out any specific business or business, provided that each me mber has had clear ten days, written notice of the resolution and the date of the meeting.
1[Provided that, in case of a society which has not taken any financial assistance from the Government, in the form of sh are capital, loan or guarantee, the prior approval of the Registrar for entering into such partnership shall not be required.]
( 2) Nothing in the Indian Partnership Act, 1932 , shall apply to such partnership.
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1[ 20A. Collaboration by societies
( 1) Any society or societies may, with the prior approval of the State Government,2[and subject to such terms and conditions as the State Government may impose and in such manner as may be prescribed] enter into collaboration with any Government undertaking or any undertaking approved by the State Government for carrying on any specific business or businesses, including industrial investment, financial aid or marketing and management expertise.
( 2 ) B efore approving any such scheme of collaboration by any society or societies under sub -section ( 1), the State Government shall have due regard to the following matters, namely:--
(a) that the scheme is economically viable;
(b) that it can be implemented without, i
The Registrar shall make an order cancelling the registration of a society if it transfers the whole of its assets and liabilities to another society, or amalgamates with another society, or divides itself into two or more societies or if its affairs are wound up,1[or it is de-registered under the provisions of sub-section ( 1) of section 21A]2[or winding up proceedings in respect of the society are closed or terminated under section 109.].3[* * * *].
The society shall, from the date of such order of cancellation, be deemed to be dissolved and shall cease to exist as a corporate body.
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1. Inserted by Mah.10 of 1988, s.5.
2. This portion was inserted by Mah. 3 of 1974, s.4.
1[ 21A. De-registration of societies
( 1) If the Registrar is satisfied that any society is registered on mis-representation made by applicants, or where the work of the society is completed or exhausted or the purposes for which the society has been registered are not served, 3[or any primary agricultural co-operative credit society using the world 'Bank', 'Banker' or any other derivative of the world 'Bank' in its name] he may, after giving an opportunity of being heard to the Chief Promoter, the committee and the members of the society, de-register the society :
Provided that, where the number of members of the society is so large and it is not possible to ascertain the correct addresses of all such members from the records in the office of the Registrar and, in the opinion of the Registrar it is not practicable to serve a notice of h
(1 ) Subject to the provisions of section 24, no person shall be admitted as a member of a society except the following, that is to say--
(a) an individual, who is competent to contract under the Indian Contract Act, 1872;
(b) a firm, company or any other body corporate constituted under any law for the time being in force, or a society registered under the societies Registration Act, 1860;
(c) a society registered, or deemed to be registered, under this Act;
1 [(d) the State Government or the Central Government;]
(e) a local authority;
(f) as public trust registered under any law for the time being in force for the registration of such trusts;
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Section 22 of the Maharashtra Co-operative Societies Act, 1960, governs the eligibility, admission, and deemed membership of individuals or entities into cooperative societies. It forms the legal basis for ensuring that only qualified persons are admitted as members and stipulates procedural timelines and conditions for membership approval or rejection.
Note: This commentary synthesizes legal principles and judicial interpretations based on the provided sources, emphasizing the importance of procedural fairness, transparency, and adherence to statutory mandates in membership decisions under Section 22 of the Maharashtra Co-operative Societies Act, 1960.
( 1) No society sh all, without sufficient cause, refuse admission to membership to any person duly qualified therefor under the provisions of this Act and its by-laws.
1[(1A) Where a society refuse to accept the application from an eligible person for admission as a member, or the payment made by him in respect of membership, such person may tender an application in such form as may be prescribed together with payment in respect of membership, if any, to the Registrar, who shall forward the application and the amount, if any so paid, to the society concerned within thirty days from the date of receipt of such application and the amount; and thereupon if the society fails to communicate any decision to the applicant within sixty days from the date of receipt of such application and the amount by the society, the applicant shall be deemed to have become a member of such society.]2[I
The Maharashtra Co-operative Societies Act, 1960, is a legislative framework that governs the formation, management, and operation of co-operative societies in Maharashtra. Section 23 of this Act specifically addresses the issue of membership, emphasizing the principle of open membership and the rights of individuals seeking to join co-operative societies.
Section 23(1) states that no society shall refuse admission to membership to any person duly qualified under the provisions of the Act and its by-laws without sufficient cause. Sub-section (2) provides a mechanism for individuals aggrieved by a refusal of membership to appeal to the Registrar within a specified period.
The scope of Section 23 extends to all co-operative societies registered under the Act, ensuring that the principle of open membership is upheld. It applies to both existing members and those seeking to join, including individuals at the pre-registration stage of a society.
While Section 23 itself does not prescribe specific punishments, non-compliance with its provisions can lead to administrative actions by the Registrar and potential legal challenges in civil courts.
This commentary highlights the importance of Section 23 in promoting fair and open membership practices within co-operative societies in Maharashtra, while also outlining the legal implications of non-compliance with its provisions.
(1) Notwithstanding anything contained in section 22, a society may admit any person as a nominal, associate or sympathiser member.
(2) A nominal member or sympathiser member shall not be entitled to any share in any form whatsoever in the profits or assets of the society as suchmember. A nominal or sympathiser member shall ordinarily not have any of the privileges and rights of a member, but such a member, or an associatemember, may, subject to the provisions of sub-section (8) of section 27, have such privileges and rights and be subject to such liabilities of a member, as may be specified in the by-laws of the society.
The Maharashtra Co-operative Societies Act, 1960, governs the formation and operation of co-operative societies in the state of Maharashtra. Section 24 specifically addresses the admission of members into a co-operative society, outlining the categories of membership and the rights associated with each.
Section 24 allows a society to admit individuals as members, including nominal or associate members. It stipulates that nominal members do not have the same rights as full members, particularly concerning profits and voting.
The scope of Section 24 is to regulate the admission of members into co-operative societies, ensuring that the rights and privileges of different categories of members are clearly defined. This section is crucial for maintaining the integrity and operational structure of co-operative societies.
While Section 24 itself does not prescribe specific punishments, violations related to membership rights and privileges may lead to penalties under other sections of the Act, such as Section 147, which deals with contraventions of the Act.
A person shall cease to be a member of a society on his resignation from the membership thereof being accepted, or on the transfer of the whole of his share or interest in the society to another member, or on his death, or removal or expulsion1[from the society, or where a firm, company, any other corporate body, society or trust is a member, on its dissolution or ceasing to exist.]
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1. These words were sub stituted for the words "from the society", by Mah. 20 of 1986 , s. 14.
The Maharashtra Co-operative Societies Act, 1960, governs the formation, management, and dissolution of co-operative societies in the state of Maharashtra. Section 25 specifically addresses the cessation of membership within these societies, outlining the conditions under which a member may cease to be a member.
Section 25 of the Maharashtra Co-operative Societies Act, 1960, stipulates that a person ceases to be a member of a society under specific circumstances: 1. Upon resignation, which must be accepted.2. Upon the transfer of the entire share or interest in the society to another member.3. Upon death.4. Upon removal or expulsion from the society.
The scope of Section 25 is limited to the conditions explicitly mentioned. It does not allow for arbitrary cessation of membership based on administrative discretion or assumptions about a member's eligibility.
While Section 25 itself does not prescribe specific punishments, failure to adhere to its provisions can lead to legal challenges and potential invalidation of actions taken against members.
This commentary highlights the importance of Section 25 in safeguarding the rights of members within co-operative societies and ensuring that any cessation of membership is conducted in accordance with the law.
1[ 25A. Removal of names of members from membership register
The committee of a society shall remove from the register of its members the name of a person who has ceased to be a member or who stands disqualified by or under the provisions of this Act for being the member or continuing to be the member of a society:
Provided that, if the society does not comply with the requirement of this section, the Registrar shall direct such society to remove the name of such person, and the society shall be bound to comply with such direction.
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1 . Section 25 A was inserted, by Mah. 20 of 1986 , s. 5.
No person shall exercise the rights of a member of a society, until he has made such payment to the society in respect of membership, or acquired such interest in the society, as may be prescribed by the rules, or the by-laws of such society.
1 [(1) Save as otherwise provided in sub-section (2) to (7), both inclusive, no member of any society shall have more than one vote in its affairs; and every right to vote shall be exercised personally and not by proxy:
Provided that, in the case of an equality of votes the Chairman shall have a casting vote;]
( 2) Where a share of a society is held jointly by more than one person, 2 [the person whose name stands first in the share certificate, if present,shall have the right to vote. But in his absence the person whose name stands second, and in the absence of both, the person whose name stands next, and likewise, in the absence of the preceding persons the person whose name is next on the share certificate, who is present and who is not a minor, shall have the right to vote.]
3 [(3) A societ
SupremeToday AI Service seems to be Down for a While!
In any society, 1 [nomember,other thanthe Government, or any other society, or with theprevious sanction of the State Government, a Zilla Parishad constituted underthe Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961,shall--]
(a)hold more than such portion of the total share capital of the society (in no case exceedingone-fifth thereof) as may be prescribed, or
(b)have or claim any interest in the shares of the society exceeding 2 [twenty thousand rupees]:
Providedthat the State Government may, by notification in the Official Gazette, specify in respect of any class of societies ahigher or lower maximum than one-fifthof the sharecapital or, as the case may be, a higher or lower amount than 2 [twenty thousand rupees].
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(1) Subject to the provisions of the last precedingsection as to the maximum holding of shares and to any rules made in this behalf, atransfer of, or charge on, the share or interest of a member in the share capital of a societyshall be subject to such conditions as may be prescribed.
(2) A member shall not transfer any share held by him or his interest in the capital or property of anysociety, or any part thereof, unless--
(a)he has held such shareor interest for not less than one year;
(b)the transfer is made to a member of the society or to a person whoseapplication for membershiphas been accepted 1 [by the society, or to a person whose appeal under section23 of the Act has been allowed by the Registrar; orto a person who is deemed to be a member under sub-section (1A) of-section 23.].
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(1) On the death of a member of a society, the society shall transfer the share or interest of the deceased member to a 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 duly admitted as a member of the society:
Provided further that, nothing in this sub-section or in section 22 shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise, any share or interest of a deceased member in a society.
(2) Notwithstanding anything contained in sub-section (1), any such nominee, heir or legal representative, as the case may be, may requ
The share or interest of a member in the capital of a society, or in the loan-stock issued by a housing society, or in the funds raised by a society from its members by way of savings deposit, shall not be liable to attachment or sale under any decree or order of a Court for or in respect of any debt or liability incurred by the member; and accordingly, neither the Official Assignee under the presidency-towns Insolvency Act, 1909, nor a Receiver under the Provincial Insolvency Act, 1920, nor any such person or authority under any corresponding law for the time being in force, shall be entitled to, or have any claim on, such share or interest.
(1) Every member of a society shall be entitled to inspect, free of cost, at the society's office during office hours, or any time fixed for the purpose by the society, a copy of the Act, the rules and the by-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 meeting, 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 therefor, a copy of any of the documents mentioned in the foregoing sub-section within one month from the date of payment of such fees.
See Rules 27 & 30.
1[ 32A. Certain societies to give pass books to members and entries in such book evidence of amount due
( 1 ) A society which gives loans to its members2[or a society or class of societies which the State Government may notify in the Official Gazette, from time to time,] shall furnish each member with a pass book, which shall contain an account of the transaction with the member, such as, the date of the transaction, the amount of loan advanced, the rate of interest, the repayment made by the member, the amount of the principal and interest due, and such other particulars as may be prescribed. The necessary entries shall be made in the pass book, from time to time, which shall be countersigned by such office-bearer of the society as may be authorised in this behalf by the committee. For this purpose,3[the member] shall be bound to present the pass book to such office-bearer, and if
(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 society for the debts of the society as they stood,--
(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 society is ordered to be wound up under any provision" of this Act 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 liquidation proceedings are completed; but such liability shall extend only to the debts of the society as they stood on the da
Notwithstanding anything contained in the Presidency-towns Insolvency Act, 1909, the Provincial Insolvency Act, 1920, or any corresponding law 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.
( 1 ) A society may, by resolution passed1[by a majority of not less than three-fourths] of the members entitled to vote who are present at a general meeting held for the purpose expel a member for acts which are detrimental to the interest or proper working of the society:
Provided that, no resolution shall be valid, unless the member concerned is given opportunity of representing his case to the general body, and no resolution shall be effective unless it is approved by the Registrar.
( 2) No member of a society who has been expelled under the foregoing sub-section shall be eligible for re-admission as a member of that society, or for admission as a member of any other society, for a period of one year from the date of such expulsion :
Provided that, the Registrar may, on an application by t
The registration of a society shall render it a body corporate by the name under which it is registered, with perpetual succession and a common seal, and with power to acquit, hold and dispose of property, to enter into contracts, to institute and defend suits and other legal proceedings and to do all such things as are necessary for the purpose for which it is constituted.
Every society shall have an address, registered in accordance with the rules, to which all notices and communications may be sent; and the societyshall send notice in writing to the Registrar of any change in the said address, within thirty days thereof.
(1) Every society shall keep a register of its members and enter therein the following particulars, that is to say,--
(a) the name, address and occupation of each member;
(b) in the case of a society having share capital, the share held by each member;
(c) the date on which each person was admitted a member;
(d) the date on which any person ceased to be a member; and
(e) such other particulars as may be prescribed:
Provided that, where a society has by or under this Act, permitted a member to transfer his share or interest on death to any person, the register shall also show against the member concerned the name of the person entitled to the share or interest o
Every society shall keep, at the registered address of the society, a copy of this Act and the rules and of its by-laws, and a list of members, open to inspection to the public, free of charge, during office hours or any hours fixed by the society therefor.
(1) A copy of any entry in any book, register or list, regularly kept in the course of business and in the possession of a society, shall, if duly certified in such manner as may be prescribed, be admissible in evidence of the existence of the entry, and shall be admitted as evidence of the matters and transactions therein recorded in every case where, and to the same extent to which, the original entry would, if produced, have been admissible to prove such matters.
(2) In the case of such societies, as the State Government may by general or special order direct, no officer of a society shall in any legal proceedings to which the society is not a party, be compelled to produce any of the society's books, the contents of which can be proved under the foregoing sub-section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, unless by order of
Nothing in clauses (b) and (c) of sub-section (I) of section 17 of the Indian Registration Act, 1908, shall apply--
(a) to any instrument relating to shares in a society, notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) to any debentures issued by any 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 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) to any endorsement upon, or transfer of, any deben
42. Power to exempt from taxation1 [power to refund]
2 [(1)] The State Government, by notification in the Official Gazette may, in the case ofany society or class of societies, 3 [reduce or remit, whether prospectively orretrospectively, in the whole of the State or any part thereof)--
(a)the stamp duty with which, under any law relating to stamp duty for the timebeing in force, instruments executed by or on behalf of a society or by anofficer or memberthereof and relating to the business of the society, or any class of suchinstruments, or awards of the Registrar 4 [or Co-operative Court] under this Act, arerespectively chargeable,
(b)any fee payable by or on behalf of a society under the law relating to theregistration of documents and to court-fees, for the time being in force, and
1[(1)] A society shall receive deposits and loans from members and other persons, only to such extent, and under such conditions, as may be prescribed, or specified by the by-laws of the society.
3[Provided that, the co-operative credit structure entity shall adopt its own policies regarding interest rates on deposits and loans in conformity with Reserve Bank of India guidelines]
1[( 2 ) If in the opinion of the Registrar it is necessary so to do for ensuring safety of the funds obtained under sub -section ( 1), for proper utilisation of such funds in furtherance of the objects of the society or societies concerned and for keeping them within the borrowing limits as laid down in the rules and by-laws, the Registrar may, by general or special order, impose additional conditions on any society or class of societies, subject to which and th
( 1 ) No society shall make a loan to any person other than a me mber, or on the security of its own shares, or on the security of any person who is not a member:
Provided that, with the special sanction of the Registrar, a society may make loans to another society.
( 2 ) Notwithstanding anything contained in the foregoing sub -section, a society may make a loan to a depositor on the security of his deposit.
( 3) If in the opinion of the State Government, it is necessary in the interest of the society or societies concerned to do so, the State Government may, by general or special order, prohibit, restrict or regulate the lending of money by any society or class of societies on the security of any property:
1[Provided that, the Registrar may, for en
1 [44A. Limit on interest in certain cases
Notwithstanding anything contained in any agreement or any law for the time being in force, a society 3[including a Co-operative Bank and a Co-opertive Agriculture Rural Multipurpose Development Bank] shall not for any loan (including rehabilitation loan but excluding long-term loan for irrigation or agricultural development purposes or loan exceeding rupees three thousand for non-agricultural or commercial purposes) given by it to any member (including a member-society) for a period not exceeding 15 years, whether the loan was given before or is given after the commencement of the Maharashtra Co-operative Societies (Second Amendment) Act, 1985,recover, in any manner whatsoever, on account of interest, a sum greater than the amount of the principal of the loan.]
4[Provided that, nothing in this
Save as is provided in this Act, the transactions of a society with persons other than members, shall be subject to such restrictions, if any, as may be prescribed.
A society shall have a charge upon the share or interest in the capital, and on the deposits, of a member or past member or deceased member, and upon any dividend, bonus or profits payable to any such member, in respect of any debt due from such member or his estate to the society; and the society may set-off any sum credited or payable to such member in or towards payment of any such debt:
Provided that, no co-operative bank shall have a charge upon any sum invested with it by a society out of the provident fund established by it under section 71, or its reserve fund; and no co-operative bank shall be entitled to set off any such sum towards any debts due from the society.
(1) Notwithstanding anything in anyother law for the time being in force,but subjectto any prior claim of Government in respect of land revenue or any moneyrecoverable as land revenue and to the provisions of sections 60 and61 of the Code of Civil Procedure,1908.
(a) any debt or outstanding demand, owing to asociety by any member or past member or deceasedmember,shall be afirst charge,--
(i) upon the crops or other agricultural produceraised in whole or in part whether with or without a loan taken from thesociety by such member or past member or deceasedmember,--
(ii) upon any cattle, fodder for cattle, agriculturalor industrial implements or machinery, or raw materials for manufacture, orworkshop, godown or place of business supplied, to or purchased by suchmember orpast member or deceased me
Notwithstanding anything contained in this Act orin any other law for the time being in force,--
(a) any person who makes an application to asociety of which he is a member, for a loanshall, if heowns any land or has interest in any land as a tenant, make a declaration inthe form prescribed. Such declaration shall state that theapplicant thereby creates a charge on such land or interest specified in thedeclaration for the payment of the amount of the loan which the society maymake to the member in pursuance of the application, and for allfuture advances (if any) required by him which the society maymake to him such member,subject tosuch maximum as may be determined bythe society, together with interest on such amount of the loan and advances;
(b)any person who has taken a loan from a society of which he is amember, before the date of the
1 [48A. Deductions from sale price of certain agricultural produce to meet society's dues
(I)2 [Where a loan has been advanced by any society in accordance with the last preceding section for the growing of any agricultural produce, or has been advanced by any other society which is 13 [a Co-operative Agriculture Rural and Multipurpose Development Bank] for any of the purposes enumerated in clause (a) of section 111and if in either case any agricultural produce is tendered by the person who has taken any such loan] for sale at a collection centre under section 30A of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, on any day then the price agreed to be paid thereof shall be paid by the purchaser to the tenderer after deducting the dues of 4 [the societies mentioned] aforesaid 5[***] and the amount so deducted shall be paid to the Market Committee constituted
1 [(1) Amember of asociety may execute an agreement in favour of the society, providing thathis employershall becompetent to deduct from the or wages payable to him by the employer, suchtotal amount payable to the society and in such instalments as may be specifiedin the agreement and to pay to the society the amounts so deducted in satisfactionof any debt or otherdemand of the society against the member. A copy of such agreement duly attested by anofficer of the society shall be forwarded by the society to the employer.].
(2)2 [On receipt of a copy of such agreement], the employershall, if so required by the societyby a requisition in writing, and so long as the 3 [total amount shown in the copy of the agreement as payable to thesociety has been deducted and paid to the society,] make the deduction inaccordance with the agreement and pay the amount so deducted to the society, asif
The State Government may subscribe directly to the share capital of a society with limited liability, upon such terms and conditions as may be agreed upon.
1[provided that, in the case of the co-operative credit structure entity, the State Government shall not hold more than 25% of the total share capital and the entity shall have option to further reduce the share capital contributed by the Government.]
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1. Inserted by the Mah. 11 of 2008 w.e.f. 29.10.2007.
The State Government may, under appropriation made by law, provide moneys to a society for the purchase directly or indirectly, of shares in othersocieties with limited liability. (A society to which moneys are so provided for the aforesaid purpose is hereinafter in this Chapter referred to as an "Apex Society".)
(1) An Apex society which is provided with moneys as aforesaid 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 societies with limited liability;
(b) providing moneys to a society (hereinafter in this Chapter referred to as a "Central Society".) to purchase shares in other societies with limited liability (the latter societies being hereinafter in this Chapter referred to as "Primary societies");
(c) making payments to the State 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 Funds 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.
Shares shall not be purchased in a society from the moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund, except with the previous approval of the State Government.
The Maharashtra Co-operative Societies Act, 1960, serves as a comprehensive legal framework governing the formation, management, and operation of co-operative societies in Maharashtra. Section 54 specifically addresses the approval required from the State Government for the purchase of shares in a co-operative society.
Section 54 mandates that shares in a co-operative society cannot be purchased using funds from the Principal State Partnership Fund without prior approval from the State Government. This provision aims to regulate financial transactions involving public funds and ensure accountability in the management of co-operative societies.
The scope of Section 54 is significant as it ensures that public funds are utilized judiciously and that the State Government retains oversight over financial dealings involving co-operative societies. This provision is crucial for maintaining the integrity and financial health of such societies.
While Section 54 itself does not specify penalties, violations of the provisions related to the purchase of shares without approval may lead to consequences under other sections of the Maharashtra Co-operative Societies Act, which can include fines or other legal actions.
Where any shares are purchased in a society by--
(a) the State Government; or
(b) an Apex society from the Principal State Partnership Fund, or a Central society from the Subsidiary State Partnership Fund, as the case may be;
the liability in respect of such shares shall, in the event of the society of which the shares are purchased1[being wound up], be limited to the amount paid in respect of such shares.
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1. These words were sub stituted for the words "is wound up", by Mah. 33 of 1963. s . 11.
An Apex society which has purchased shares in other 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 is declared by the society concerned and is payable to other shareholders of that society.
(1) If a society in which shares are purchased from the Principal State Partnership Fund is wound up, or is dissolved, the State 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 State Governmentshall be entitled to any moneys received by the Apex society in liquidation proceedings or on dissolution, as the case may be.
(2) If a society in which shares are purchased from the Subsidiary State Partnership Fund is wound up or 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 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 credite
(1) All moneys received by an Apex society in respect of shares of other 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 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-sections (1) and (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 State Governmen
The Maharashtra Co-operative Societies Act, 1960, serves as a legislative framework for the establishment and regulation of co-operative societies in Maharashtra. Section 58 specifically addresses the disposal of share capital and dividends, which is crucial for the financial management of co-operative societies.
Section 58 outlines the procedures for the disposal of share capital and dividends received by an apex society from shares of other societies. It mandates that such funds should be utilized in accordance with the provisions of the Act and the rules framed thereunder.
The scope of Section 58 is limited to the financial operations of apex societies concerning their share capital and dividends. It ensures that the funds are used in a manner that aligns with the objectives of the co-operative movement and the regulations set forth in the Act.
While Section 58 itself does not specify punishments, violations related to the improper disposal of funds may lead to penalties as outlined in other sections of the Maharashtra Co-operative Societies Act, 1960.
(1) If an Apex society which has established a Principal State Partnership Fund is wound up or dissolved, all money 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 52.
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.
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 51;
(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 (b) of sub-section (2) of section 52.
Notwithstanding anything contained in any law for the time being in force, but subject to such conditions as the State Government by general or special order may specify in this behalf, the State Government may,--
(a) give loans to a society;
(b) guarantee the payment of the principal of debentures issued by a society, or of interest thereon, or both or the repayment of the shares capital of a society to its members, or the payment of dividends thereon at such rates as may be specified by the State Government;
(c) guarantee the repayment of loans given by a Co-operative Bank to a society;
(d) guarantee the repayment of the principal of, and payment of interest on, loans and advances given by the Reserve Bank of India, or the Industrial Finance Corpo
The provisions of sections 51 to 61 (both inclusive) in this Chapter shall have effect notwithstanding anything inconsistent therewith contained in anyother law for the time being force.
No part of the funds, other than1[the dividend equilisation or bonus equalisation funds as may be prescribed or] the net profits of a 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 by the bye-laws, for services rendered by him to the society.
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1 . These words were inserted by Mah. 33 of 1963 , s. 12.
65. 1 [Ascertainment and appropriation of profits]
2 [(1) A society shall construct its relevant annual financialstatements and arrive at its consequent net profit or loss in the mannerprescribed.]
(2) A society may appropriate 3 [its net profits] to the reserve fund or anyother fund to payment of dividends tomembers on theirshares 4 [* * * *] to the payment of bonus on the basis ofsupport received from members and persons who are not members to its business, to payment ofhonoraria and towards any other purpose which may be specified in the rules orbye-laws:
Providedthat no part of the profits shall be appropriated except with the approval of theannual general meetingand in conformity with the Act, rules and bye-laws.
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( 1 ) Every society which does, or can, derive a profit from its transactions shall maintain a reserve fund.
( 2)1[Every society shall carry at least one-fourth of the net profits each year to the reserve fund;] and2[such reserve fund may, subject to the rules made in this behalf, if any, be used] in the business of the society or may, subject to the provisions of section 70, be invested, as the State Government may by general or special order direct, or may, with the previous sanction of the State Government, be used in part for some public purpose likely to promote the objects of this Act, or for some such purpose of the State, or of local interest:
3[Provided that, the Registrar may, having regard to the financial position of any society or class of societies, fix the contribution to be made to the reserve fund under this sub-section
1 [67. Restrictions on dividend
No society shall pay divided to its members at a rate exceeding 2 [15 per cent except with the prior sanction of the Registrar.]
3[Provided that, the primary agricultural credit co-operative society shall pay dividend to its members as per the guidelines issued by the Registrar, in accordance with criteria specified by the National Bank.]
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1 . Section 67 was substituted by Mah. 20 of 1986 , s. 23.
2 . This portion was substituted by Mah. 13 of 1994 , s. 4.
3. Inserted by the Mah. 11 of 2008 w.e.f. 29.10.2007.
1 [68. Contribution to education fund of the State federal society
( 1) 5[Every society not being co-opearative credit structure entity] shall contribute annually towards the education fund of the State federal society which may be notified in this behalf by the State Government at such rate as may be prescribed, and different rates may be prescribed for different societies or classes of societies depending on their financial condition.
2 [***]
( 2) Every society shall pay its contributions to the said fund3 [within three months after the close of the co-operative year.] Any officer willfully failing to comply with the requirement of this section, shall be personally liable for making good the amount to the federal society notified as aforesaid.]
4
After providing for the reserve fund as provided in section 66, and for the educational funds as provided in section 68 a society may set aside a sum not exceeding twenty per cent of its net profits, and utilise, with the approval of such federal society as may be notified by the State Government in this behalf from time to time, the whole or part of such sum in contributing to any co-operative purpose, or to any charitable purpose within themeaning of section 2 of the Charitable Endowments Act, 1890, or to any other public purpose.
1 [69A. Contribution of Co-operative State Cadre of Secretaries of certain societies and establishment of Employment such Cadre
(1) There shall be constituted a Co-operative State Cadre of Secretaries of primary agricultural credit societies, multipurpose co-operative societies and service co-operative and such other classes of societies as may be prescribed in this behalf (hereinafter in this section referred to as "the Co-operative State Cadre"), consisting of persons recruited for this purpose by the Central Societies notified in this behalf by the State Government. The number of persons to be recruited and their conditions of service shall be determined by the Central Societies in accordance with 2 [such general of special guidelines, if any,] as may be issued by the State Government, from time to time.
(2) A Central Society may, fro
1[The state Government shall constitute District Level Committees and the State Level Committees, from time to time, as it shall deem fit, for solving the problems of Group Secretaries in the State.]
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1. Inserted by the Mah. 11 of 2008 w.e.f. 29.10.2007.
3[Every society other than the co-operative credit structure entity shall invest or deposit its funds in one or more of the following :
(a) in a Central Bank or the State Co-operative Bank;
(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882;
(c) in the shares, or security bonds, or debentures, issued by any other society with limited liability and having the same classification to which it belongs:
Provided that, no society shall invest more than such proportion of its paid up share capital as may be prescribed:
Provided further that, the co-operative credit structure entity shall invest its funds subject to guidelines as may be, issued from time to time by Reserve Bank of
(1) Any society may establish for its employees a provident fund, into which shall be paid the contributions made by its employees and by the society. Such provident fund shall not be used in the business of the society, nor shall it form part of the assets of the society; but shall be invested under the provisions of the last preceding section, and shall be administered in the manner prescribed.
(2) Notwithstanding anything contained in the foregoing sub-section, a provident fund established by a society to which the Employees' Provident Funds Act, 1952 is applicable, shall be governed by that Act.
1[ 71A. Funds not to be utilised for certain proceedings filed or taken by or against officers in personal capacities
2[( 1)] No expenditure from the funds of a society shall be incurred for the purpose of defraying the costs of any proceedings filed or taken by or against any officer of the society in his personal capacity under sections 78, 96 or 144T. If any question arises whether any expenditure can be so incurred or not, such question shall be referred to and decided by the Registrar, and his decision shall be final.
2[(2) If any person incurs expenditure in violation of sub-section ( 1), the Registrar shall direct the person to repay the amount to the society within one month and where such person fails to repay the amount as directed, such amount shall, on a certificate issued by the Registrar, be recoverable as arrears of land r
Subject to the provisions in this Act and the rules, the final authority of every society shall vest in the general body of members in general meeting, summoned in such a manner as may be specified in the by-laws.
1[Where the by-laws of a society so provide, the general meeting shall be attended by delegates appointed by the members, and such meeting shall be deemed to be the meeting of the general body, for the purpose of exercising all the powers of the general body.]
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1. This portion was added, by Mah. 3 of 1974, s. 13.
1[Notwithstanding anything contained in this Act or any other law for the time being in force, the co-operative credit structure entity shall have the liberty for the affiliation or disaffiliation with the federal structure of its choice:
Provided that, in the general meeting of the co-operative credit structure entity, a resolution for this purpose is passed by a majority of not less than three/fourth of the total members of such entity]
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1. Inserted by the Mah. 11 of 2008 w.e.f. 29.10.2007.
1 [(1)] The management of every societyshall vest in a committee, constitutedin accordance with this Act, the rules and by-laws, whichshall exercise such powers and performsuch duties as may be conferred or imposed respectively by this Act, the rulesand the by-laws.
2 [(1AB) The members of the committeeshall be jointly and severallyresponsible for all the decisions taken by the committee during its termrelating to the business of the society. The members of the committeeshall be jointly and severallyresponsible for all the acts and omissions detrimental to the interest of thesociety. Every such member shallexecute a bondto that effect within fifteen days of his assuming the office, in the form as specified bythe State Government by general or special order. The member who fails to execute such bond within thespecified period shallbe demand to have vacated his office as a member of
1 [73-IA. Election to more than one seat on committee of society including specified society
If a person is elected to more than one seat on the committee of a society including a society belonging to any of the categories specified in section73-G, then, unless within a period of fifteen days from the date of declaration of the result of the elections he resigns all but one of the seats by writing under his hand addressed to the Election Officer, or as the case may be, the Collector, all the seats shall become vacant. On receipt of such resignation or on the seats becoming vacant as aforesaid, the Election Officer, or as the case may be, the Collector shall 2 [hold a meeting of the committee for filling the vacancy by way of co-option.]
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1. Section 7
Section 73(i)(a) of the Maharashtra Co-operative Societies Act, 1960, pertains to the penalties and disqualifications imposed for contraventions of the Act or its rules. It aims to regulate the conduct of members and office bearers within cooperative societies to ensure proper governance and compliance with statutory provisions.
Section 73(i)(a) prescribes that any person who contravenes the provisions of the Act, rules, or bye-laws may be subject to penalties, including fines. The section specifically empowers the Registrar to impose penalties for violations, with the scope of penalties including monetary fines and disqualifications.
Note: The references are based on the provided sources, which highlight the penalties, authority, and procedural aspects related to violations under the Maharashtra Co-operative Societies Act, 1960.
1[ 73-I B. Powers of State Government to postpone election
Where due to scarcity, drought, flood, fire, or any other natural calamity or rainy season or any election programme, of the State Legislative Assembly or Council or the House of the People or a local authority coinciding with the election programme of any society or class of societies or such other reasons as, in the opinion of the State Government, are exceptional, it is not in the public interest to hold elections to any society or class of societies, the State Government may, notwithstanding anything contained in this Act, or in any rules, or bye-laws made thereunder, or any other law for the time being in force, for reasons to be recorded in writing, by general or special order, postpone the election of any society or class or societies, for a period not exceeding six months at a time which period may further be extend
(1) Where the State Government is satisfied that, having regard to the objects of the society or class of societies (other than the societies specified by or under section 73G), or composition of membership thereof, or proper management and the interest of the members, it is necessary in the public interest to hold elections to any society or class of societies, the State Government may, notwithstanding anything contained in this Act, or in any rules, or bye-laws made thereunder, or in any other law for the time being in force, by general or special order, notify in the Official Gazette, such society or class of societies and the election to such society or class of societies shall be held by the Registrar in the prescribed manner.
(2) The Registrar shall recover the expenses of holding election to any such society or class of societies as is referred to in sub-section (1), in the
( 1 ) A President Vice President, Chairman, Vice-Chairman, secretary, treasurer or any other officer by whatever designation called who hold office by virtue of his election to that office shall cease to be such President, Vice-President, Chairman, Vice-Chairman, Secretary, treasurer or any other officer, as the case may be, if a motion of no-confidence is passed at a meeting of the committee by1[two-third majority] of the total number of committee members who are2[entitled to vote at the election of such President, Vice President, Chairman, Vice-Chairman, Secretary, Treasurer or any other officer] and the office of such President, Vice-President, Chairman, Vice-Chairman, secretary, treasurer or any other officer, as the case may be, shall thereupon be deemed to be vacant.
( 2) The requisition for such special meeting shall be signed by not less than one-third of the total number o
1 [73AA. Designated officer who is associate councillorto cease to be designated officer on the ceasing to be such Councillor
Where,after the commencement of the Maharashtra Zilla Parishads and Panchayat Samitis(Fourth Amendment) Act, 1974, a designated officer of any society of any of thecategories referred to in sub-section (2) of section73A who is also an associate Councillor of any Zilla Parishad, ceases to be theassociate Councillor of such ZillaParishad by operation of the provisions of section 82 of the Maharashtra Zilla Parishads and PanchayatSamitis Act,1961,he shall also cease to bea designated officer of the said society from the date on which he so ceases tobe an associate Councillor of the ZillaParishads].
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1. Section 73AA was inserted b
1[73AB. Cessation of membership of committee held be virtue of office under Government etc.
Where a person is elected, co-opted, appointed or nominated as member of a committee of any society by virtue of his holding office under the Central Government or the State Government or in any local authority or in any body corporate or in any organisation, he shall cease to be such member on the date on which he ceases to hold such office.]
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1. Section 73AB was inserted by Mah. 20 of 1986, s. 30.
1 [73B. Reservation of seats on committees of certain societies for Scheduled Caste, Scheduled Tribes 2 [or Other Backward Classes, De-notified, Tribes (Vimukta Jatis) Nomadic Tribes, Special Backward Classes] and for members of weaker section and election thereto.
(1) Notwithstanding anything contained in this Act or in the rules made thereunder or any bye-laws of any society, on the committee of such society or class of societies as the State Government may, by general or special order, direct, 3 [four] seats shall be reserved.--
(a) one for the members belonging to the Scheduled Castes or Scheduled Tribes;
4 [***]
5 [(a-1) one for the members belonging to the Other Backward Classes;
(a-2) one for the m
1 [73BB. Reservation of seatsfor employees on committees of certain societies
2 [(1)] On the committee ofsuch society or class of societies as the State Government may, by general orspecial order, direct where the number of permanent salariedemployees of the society is 25 or more,--
(a) if the number of members of the committeethereof is 11 or less--one seat; and
(b) if the number of suchmembers is 12 or more--one additionalseat for every 10 members over and above the first 11members,
shall be reserved for such employees. The seats soreserved shall be filled by selection made by the 3 [recognised union orunions and where there is no union at or where there is a dispute in relationto such issues including whether a union is recognised or not, then th
1 [73BBB. Reservation of seats on committees of societies for women members and elections thereto
(1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in the bye-laws of any society, there shall be reserved seats for women on the committee of each society to represent the women members in the following manner, namely :--
(a) one seat on the committee consisting of not more than 9 committee members;
(b) two seats on the committee consisting of 10 or more, but not exceeding 19 committee members; and
(c) three seats on the committee consisting of 20 or more committee members.
2 [Explanation:--For the purpose of determining the number of committee members under this sub-sect
( 1) In the case of a District Central Co-operative B ank or an Apex Co-operative B ank of the District Central Co-operative B ank, there sh all not be more than one1[representative to be elected by individual me mbers from amongst themselves], on the committee of such B ank, and such representative shall not be eligible for being elected or appointed as a designated officer.
( 2 ) In the case of2[an Agriculture and Rural Development B ank or an Apex Agriculture and Rural Development B ank, there sh all not be more than one representative on the committee of such B ank, of members, who have not taken elected or appointed as a designated officer.
( 3 ) In the case of an Agricultural Credit Society which gives loans to individuals for the raising of crops, there sh all not be more than one representative on the committee of such society, o
No member of a society who is nominated to represent it on any other society, shall be eligible for being elected or appointed as a designated officer of the other society, unless the other society is its federal society.
In the case of such class or classes of societies as may be specified by the State Government, by notification in the Official Gazette, no member shall be eligible for being elected or appointed as a designated officer, if he does not fulfill the minimum qualification relating to his transactions with the society of such monetary limits as may be laid down, from time to time, in such notification.
1[Without prejudice to the other provisions of this Act or the rules made thereunder, in relation to the disqualification of being a member of a committee, no person shall be eligible for being appointed, nomination, co-opted or, for being a director of a District Central Co-operative Bank or of the State Co-opeartive Bank, if he, --
(i) is a person who represents a society other than a primary agricultural credit co-operative bank or State Co-operative Bank, if the society to whom he represents has committed a default towards the payments of such Bank for a period exceeding ninety days;
(ii) is a person who is defaulter of a primary agricultural credit co-operative society or an officer bearer of a defaulting primary agricultural co-operative credit society.
(iii) is a person, who represents
2[(1)] In the case of a society, which gives loans to me mbers for purchasing machinery, implements, equipment, commodities or other goods,1[or which deals in such goods,], no member, 3 [who is a dealer in such goods or is director of a company or a partner in a firm carrying on business in such goods, in the area of operation of the society] shall be eligible for being elected or appointed as a member of the committee of such society.
4[***]
5 [(2)] Any member who desires to carry on the business of the kind carried on by the society outside the srea of operation of the society may apply to the Society for permission to carry on such business. The society may grant such permission subject to such conditions as may be prescribed.]
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1 [73FF. Disqualification formembershipof committee
(1) Withoutprejudice to the other provisions of this Act or the rules madethereunder in relation to the disqualification of beingmember of acommittee, no person shall be eligible for being appointed, nominated, elected,co-opted or, for being a member of a committee, ifhe--
(i) is a defaulter of any society;
Explanation.--For the purposes of thisclause, the term "defaulter'' includes--
(a) in the case of a primary agricultural creditsociety, a member who defaults the repayment of the crop loan onthe due date;
(b) in the case of term lending society, amember whodefault the payment of any instalment of the loan granted tohim;
&nbs
(1) A member of a committee who has ceased to be a member thereof on account of having incurred disqualification under clause (11) of sub-section (1) of section 73FF shall be eligible to be re-co-opted re-elected as a member of the committee after the expiry of the period of two years from the date on which he has so ceased to be a member of the committee.
(2) A member of a committee who has ceased to be a member thereof on account of having incurred disqualification under clause (iii) of sub-section (1) of section 73-FF, shall be eligible to be re-appointed, re-nominated, re-co-opted, or re-elected as a member of the committee after the expiry of the period of five years from the date on which he has so ceased to be a member of the committee.
(3) A member of a committee who has ceased to be a member thereof on account of having incurred
73G. Provision for conduct of elections to committees 1 [and of officers] of certain societies and term of office of member of such committees
2 [( 1 ) The election of the members of the committees 1 [and the officers by the committees,] of the societies of the categories me ntioned belowshall be subject to the provisions of Chapter XI-A and shall be conducted in the manner laid down by or under that Chapter :--
(i) such Apex3 [societies], which the State Government may, by general or special ord er published in Official Gazette, from time to time, specify in this behalf, regard being had to the financial position and share capital of such 4 [societies] ;
(ii) all District Central Co-operative Banks ;
11 [(iii) all District Co-operative Agriculture
1[ 73H. Responsibility of committee to hold election before expiry of term
(1) It shall be the duty of the committee of every society to arrange for holding the election of its members before the expiry of its term.
(2) 2[Where there is a willful failure on the part of the committee to hold the election to the committee before the expiration of its term, the committee.] shall cease to function on the expiration of its term and the members thereof shall cease to hold office and the Registrar may himself take over the management of the society or appoint an Administrator (who shall not be from amongst the members of the committee the term of which has so expired) and the Registrar or Administrator shall hold election within a period of six months and the committee shall be constituted before the expiration of that period.]
&
1[ 74. Qualification and appointment of Manager, Secretary and other officers of societies and Chief Officer and Financial Officer for certain societies
( 1) The qualifications for appointment of the Chief Executive Officer, Finance Officer, Manager, Secretary, Accountant or any other officer of a society or a class of societies and hi s emoluments and perquisites shall be such as may be determined by the Registrar, from time to time.
( 2 ) In the society or class of societies, as the State Government may, from time to time, notify in the Official Gazette, there sh all be a Chief Executive Officer and a Finance Officer, who sh all be appointed by the society from a panel of persons selected by a body of such persons not exceeding five as may be prescribed.
2[Provided that, the qualifications f
(1) Every societyshall,within a period of three months next after the date fixed for making up itsaccounts for the year under the rules for the time being in force, call ageneral meeting of its members :
1 [Provided that, theRegistrar may, by general or special order, extend the period forholding such meeting for a further period not exceeding threemonths however, in the case of the specified societies and urban co-operativebanks such extension shall be granted only after recording the reasons inwriting and after obtaining the previous approval of the Government forgranting such extension.]
Provided further that if in the opinion of theRegistrar, no such extension is necessary, or suchmeeting isnot called by the society within the extended period (if any) granted byhim, theRegistrar or any person authorised by him may call, suchmeeting i
(1) A special general meeting may be called at any time by the Chairman or by a majority of the committee and shall be called within one month--
(i) on a requisition in writing of one-fifth of the members of the society or of members the number of which is specified in the bye-laws for the purpose, whichever is lower, or
(ii) at the instance of the Registrar, or
(iii) in the case of a society, which is a member of a federal society, at the instance of the committee of such federal society.
(2) Where any officer or a member of the committee, whose duty it was to call such meeting without reasonable excuse, fails to call such meeting, the Registrar may by order declare such officer or member disqualified for being a member of the committee for such pe
(1) No act of a society or a committee or any officer, done in good faith in pursuance of the business of the society shall be deemed to be invalid by reason only of some defect subsequently discovered in the organisation of the society, or in the constitution of the committee, or in the appointment or election of an officer, or on the ground that such officer was disqualified for his office.
(2) No Act done in good faith by any person appointed under this Act, the rules and the bye-laws shall be invalid merely by reason of the fact that his appointment has been cancelled by or in consequence of any order subsequently passed under this Act, Rules and the Bye-laws.
(3) The Registrar shall decide whether any act was done in good faith in pursuance of the business of the society; and his decision thereon shall be final.
1 [ 77 A. Appointment of member of committee, new committee or Administrator, where there is failure to elect member, to constitute committee or where committee does not enter upon office
( 1) Where the Registrar is satisfied that,--
2 [( 1 -a) a provisional committee has failed to make necessary arrangements for holding election for the constitution of the first committee, before the expiry of its term as specified in sub-section ( 1A) of section 73;]
(a) at the first constitution of the committee of any society there is a failure to elect all or any of the members of the committee;
(b) the term3 [or extended term as the case may be,] of the committee of any society or of any of its members has expired or for any other reason election is held and t
Section 77(a) of the Maharashtra Co-operative Societies Act, 1960, provides the statutory framework for the appointment of an administrator or committee in cases where a society faces failure to hold elections, or where the existing committee does not or cannot function. It plays a crucial role in ensuring the proper governance and administration of co-operative societies, especially during periods of internal disputes, administrative vacuum, or failure to comply with statutory obligations.
Section 77(a) authorizes the Registrar to appoint a member or members of the society, a committee, or one or more administrators to manage the affairs of a society if:- The society has failed to elect a new committee after the expiry of its term.- The existing committee does not or cannot enter upon the office.- There is a failure to fill vacancies or constitute a new committee for any reason.
This appointment is aimed at ensuring the continuity of management and governance of the society until proper elections are held or the situation is regularized.
While Section 77(a) itself does not prescribe specific punishments, violations such as:- Failing to hold elections within the stipulated time.- Acting beyond the scope of the appointment.- Mismanagement or misappropriation during the administration.
may attract penalties under other provisions of the Act, including fines (up to Rs. 5000 as per Section 77(1)) or disciplinary actions. Persistent violations or misconduct may lead to criminal proceedings or disqualification under related sections.
In conclusion, Section 77(a) of the Maharashtra Co-operative Societies Act, 1960, is a vital statutory provision designed to facilitate effective management of societies during periods of administrative failure or deadlock, balancing the need for oversight with procedural safeguards to protect members’ interests.
78.1 [Power of removal of committee or member, thereof]
2 [( 1 ) If, in the opinion of the Registrar, the committee of any society or any member of such committee 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 interests of the society or its members, or willfully disobeys directions issued by the State Government, or by the Registrar for the purposes of securing proper implementation of co-operative policy and development programme approved or undertaken by the State Government or is otherwise not discharging its or his functions properly and diligently 3 [or where a situation has arisen in which the committee or any me mber of such committee refuses or has ceased to discharge its or hi s functions] and the business of the society has or is likely to come t
(1) The registrar may direct any society or class Of societies, to keep proper books of accounts with respect to all sums of money received and expended by the society, and the matters in respect of which the receipt and expenditure take place all sales and purchases of goods by the society, and the assets and liabilities of the society, and to furnish such statements and returns and to produce such records as he may require from time to time; and the officer or officers of the society shall be bound to comply with his order within the period specified therein.
(2) Where any society is required to take any action under this Act, the rules or the bye-laws, or to comply with an order made under the foregoingsub-section, and such action is not taken--
(a) within the time provided in this Act, the rules or the bye laws, or the order as the c
1 [79A. 2 [Government's power] to give directions in thepublic interest, etc.
(1) 3 [Ifthe State Government, on receipt of a report from the Registrar orotherwise,is satisfied] that in the public interest or for the purposes of securingproper implementation of co-operative production andotherdevelopment programmes approved or undertaken by Government, or to secure theproper management of the business of the society generally, or for preventingthe affairs of the society being conducted in a manner detrimental to theinterests of the members or of the depositors or the creditorsthereof, it is necessary to issue directions to any class of societiesgenerally or to any society or societies in particular, 4 [the State Government mayissue] directions to them from time to time, and all societies or the societiesconcerned, as the case may be, shall be bound to complywith such directions.
1 [79AA. Registrar's powers togive directions to frame regulations
(1) If the Registrar or anofficer not below the rank of District Deputy Registrar is of the opinion that,having regard to the financial condition of the society and financial interestof Government therein, it is necessary to regulate the manner of carrying onits trade or business, he may, subject to any rules made inthis behalf, direct such society to make regulations in that behalf and forwardthem to him for approval.
(2) On receipt of theregulations made by the society, the Registrar or such officer may approve themwith or without modifications. On approval of such regulations, the societyshall carry onits business in accordance with such regulations.
(3) If any society fails toforward such regulations to the Registrar or suc
1 [79B. Registrar's Power toremove member for failure to supplyhisagricultural produce to processing society
(1) Where anyproducer-member of a processing society fails to supplyhisagricultural produce to the society in accordance with the provisions of bye-lawsof the society, the Registrar may, on complaint made by the society or suomotu, issue a notice to the member toshow cause,within a period specified in the notice, why for such failure heshould notbe removed from the membership of the society.
(2) After holding suchinquiry as he thinks fit and giving a reasonable opportunity of being heard tothe member, if the Registrar is satisfied that themember hasfailed, without any good reason or justification, to supplyhisagricultural produce to the society in accordance with the provisions of thebye-laws, the Registrar may by order remove the
(1) Where theRegistrar is satisfied that the books and records of a society are likely to besuppressed, tampered with or destroyed, or the funds and property of a societyare likely to be misappropriated or misapplied, the Registrar or the personauthorised by him may apply to the Executive Magistrate withinwhose jurisdiction the society is functioning for seizing and taking possessionof the records and property of the society.
(2) On receipt of anapplication under sub-section (1) 1 [theMagistrate shall forthwith consider such application and, ifsatisfied that immediate action is required, shall authorise] any policeofficer, not below the rank of a sub-inspector, to enter andsearch any place where the records and property are kept or likely to be kept,and to seize them and hand over possession thereof to the Registrar or theperson authorised by him, as the case may be.
1[( 1 ) (a) The Registrar sh all audit, or cause to be audited at least once in each co-operative year, by a person authorised by hi m by general or special ord er in writing in this behalf the account of every society which has been given financial assistance including guarantee by the State Government,2[or Government undertakings, from time to time, and the accounts of the apex societies, State and District Level Federal Societies, District Central Co-operative Banks, Co-operative Sugar Factories, Urban Co-operative banks, Co-operative Spinning Mills, District and Taluka Co-operative Sale and Purchase Organisations, and any such Society or class of Societies which the State Government may, from time to time, by notification in the Official Gazette, specify.]
10 [Provided that, the audit of the District Central Co-opeartive Bank and the State Co-operative Bank shall be conducted b
Section 81 of the Maharashtra Co-operative Societies Act, 1960, is a crucial provision that mandates the audit of society accounts, ensuring transparency, accountability, and proper management of cooperative societies. It confers powers upon the Registrar to oversee audits, inspections, inquiries, and the enforcement of compliance, playing a vital role in maintaining the integrity of the cooperative movement in Maharashtra.
Section 81 primarily requires societies to cause their accounts to be audited at least once every year, either by an auditor from a government-approved panel or by an officer authorized by the Registrar. It also empowers the Registrar to direct audits, carry out test audits when discrepancies are suspected, and conduct re-audits. The section details the procedures for audit reports, their submission, and the authority of the Registrar to initiate inquiries and inspections based on audit findings.
Section 81 covers a broad spectrum of audit-related activities:- Regular annual audits to ensure financial transparency.- Test audits when irregularities or discrepancies are suspected.- Re-audits, especially in cases of irregularities or disputes.- Inspection and inquiry powers of the Registrar based on audit reports.- Enforcement actions, including penalties and recovery of dues.- Oversight of the audit process by the Registrar, ensuring adherence to prescribed standards.- It applies to societies receiving financial assistance from the government and other specified societies.
Failure to comply with the provisions of Section 81, such as not conducting or completing audits within prescribed timelines, can attract penalties including fines. Specific penalties include:- Fine which may extend up to Rs. 500 (as per provisions in the Act for contraventions).- Disqualification of auditors or officers who fail to perform their duties.- Penalties for misappropriation or financial irregularities identified through audit, including surcharge and recovery proceedings.- Penalties for not submitting audit reports or obstructing audit processes.
"Mandatory audit requirement" - Section 81 mandates annual audits for societies, ensuring financial transparency and accountability [Sources: MAHARASHTRA CERTIFIED AUDITORS ASSOCIATION. SOLAPUR VS STATE OF MAHARASHTRA, Deepak Shriram Tirke VS State of Maharashtra & others, Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others].
"Power of Registrar" - The Registrar is empowered to direct audits, including test and re-audits, based on suspicion of irregularities, ensuring oversight [Sources: Deepak Shriram Tirke VS State of Maharashtra & others, Kolhapur Zilla Sahakari Doodh Utpadak Sangh Ltd. VS State of Maharashtra].
"Test audit scope" - Test audits under Section 81(3)(c) are to be conducted when the audit report indicates discrepancies, and such audits include examining specific items as prescribed by the Registrar [Sources: Kolhapur Zilla Sahakari Doodh Utpadak Sangh Ltd. VS State of Maharashtra, Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others].
"Audit report submission" - Auditors are required to submit their reports within one month of completion, facilitating timely oversight [Sources: 00400081(5B), Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others].
"Power to conduct inquiry" - Based on audit or inspection findings, the Registrar can initiate inquiries under Section 83 to investigate the society’s affairs [Sources: Sujeet Suvalal Lodha VS Deputy Registrar Pune City-1, Kolhapur Zilla Sahakari Doodh Utpadak Sangh Ltd. VS State of Maharashtra].
"Re-audit provisions" - The Registrar can order re-audits under Section 81(6) if irregularities are suspected, ensuring ongoing scrutiny [Sources: Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others, Kolhapur Zilla Sahakari Doodh Utpadak Sangh Ltd. VS State of Maharashtra].
"Penalties for non-compliance" - Non-compliance with audit directives or obstruction of audit processes attract penalties including fines up to Rs. 500 and disqualification [Sources: 004000103, Walni Pardi Majoor Kamgar Sahakari Sanstha Limited VS Assistant Registrar, Co-operative Societies (Housing), Saoner].
"Power of recovery" - Sums due from societies or officers can be recovered as land revenue, ensuring enforcement of audit-based financial corrections [Sources: Maharashtra State Co-Operative Patsanstha Federation Ltd Mumbai VS State Of Maharashtra, Through The Secretary, Co-Operation And Textile Department, Mantralaya, Mumbai, 004000103].
"Audit authority" - Audits must be conducted by a Chartered Accountant or other authorized personnel from the approved panel; societies cannot arbitrarily appoint auditors of their choice for statutory audits [Sources: Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others, Deepak Shriram Tirke VS State of Maharashtra & others].
"Circulars and administrative directions" - Circulars issued by the government or Registrar, such as those imposing audit fees or restrictions, must be within statutory powers; ultra vires circulars can be struck down [Sources: MAHARASHTRA CERTIFIED AUDITORS ASSOCIATION. SOLAPUR VS STATE OF MAHARASHTRA, Maharashtra Certified Auditors Association VS State of Maharashtra].
"Test audit limitations" - Courts have held that test audits can only be ordered when there is suspicion of irregularities, and such audits are administrative in nature, not quasi-judicial decisions [Sources: Kolhapur Zilla Sahakari Doodh Utpadak Sangh Ltd. VS State of Maharashtra, Deepak Shriram Tirke VS State of Maharashtra & others].
"Audit and inquiry procedures" - The procedures for audit, inquiry, and inspection are governed by detailed rules under the Act, with safeguards for natural justice and opportunity of hearing [Sources: Sujeet Suvalal Lodha VS Deputy Registrar Pune City-1, Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others].
"Penalties for offences" - Offences such as failure to maintain proper accounts, falsification, or obstruction during audit can lead to criminal penalties, including imprisonment and fines [Sources: 004000103, 004000103].
"Power to recover dues" - Sums identified as due during audit or inquiry can be recovered as land revenue, with priority over other liabilities [Sources: Maharashtra State Co-Operative Patsanstha Federation Ltd Mumbai VS State Of Maharashtra, Through The Secretary, Co-Operation And Textile Department, Mantralaya, Mumbai, 004000103].
"Role of auditors" - Auditors are responsible for detecting irregularities, preparing special reports, and submitting audit reports within prescribed timelines, failing which penalties may ensue [Sources: Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others, Kolhapur Zilla Sahakari Doodh Utpadak Sangh Ltd. VS State of Maharashtra].
"Legal validity of Circulars" - Circulars issued beyond the powers conferred by the Act or Rules, especially those imposing fees or restrictions, are liable to be struck down as ultra vires [Sources: MAHARASHTRA CERTIFIED AUDITORS ASSOCIATION. SOLAPUR VS STATE OF MAHARASHTRA, Maharashtra Certified Auditors Association VS State of Maharashtra].
"Scope of inquiry" - Inquiries under Section 83 are fact-finding and must be based on material, with opportunities of hearing, and should be exercised judiciously [Sources: Sujeet Suvalal Lodha VS Deputy Registrar Pune City-1, Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others].
"Judicial review" - Orders passed under Sections 81, 83, or 88 are subject to judicial review for legality, procedural fairness, and compliance with statutory limits [Sources: Maharashtra Certified Auditors Association VS State of Maharashtra, Deepak Shriram Tirke VS State of Maharashtra & others].
"Disputes regarding audit" - Disputes related to the scope, conduct, or findings of audits can be challenged before courts or tribunals, but only within the limits of the statutory jurisdiction [Sources: Deepak Shriram Tirke VS State of Maharashtra & others, Pandurang Laxman Kadam VS State of Maharashtra, Through its Secretary, Ministry of Co-operation].
"Amendments and procedural safeguards" - The Act and Rules have been amended over time to incorporate safeguards, including opportunity of hearing, limits on penalties, and procedural clarity [Sources: Bhavarilal Javarilal Modi VS Nasik Merchants Co-operative Bank Ltd. and others, Deepak Shriram Tirke VS State of Maharashtra & others].
Note: The above comments synthesize legal principles derived from judicial decisions, statutory provisions, and authoritative commentary, emphasizing the scope, powers, limitations, and procedural safeguards under Section 81 of the Maharashtra Co-operative Societies Act, 1960.
If the result of the audit held under the last preceding section discloses any defects in the working of a society the society shall within three months from the date of audit report, explain to the Registrar the defects, or the irregularities, pointed out by the auditor, and take steps to rectify the defects and remedy irregularities and report to the Registrar the action taken by it thereon. The Registrar may also make an order directing the society or its officers to take such action, as may be specified in the order to remedy the defects within the time specified therein. Where the society concerned is a member of a federal society, such order shall be made after consulting the federal society.
1[(1) The Registrar may of his own motion, and shall on the application of one-third of the members of a society, himself or by a person duly authorised by him in writing in this behalf, hold an inquiry into the constitution, working and financial conditions of a society.
( 2) Before holding any such inquiry on an application, the registrar may2[having regard to the nature of allegations and the inquiry involved, require the applicant to deposit with him such sum of money as he may determine,] towards the cost of the inquiry. If the allegations made in the application are substantially proved at the inquiry, the deposit shall be refunded to the applicant, and the Registrar may under section 85, after following, the procedure laid down in that section, direct from whom and to what extent the cost of the enquiry should be recovered. If it is proved that the allegations were false, ve
( 1 ) On the application of a creditor of a society who,--
(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 reasonable time, and
(b) deposits with the Registrar such sum as the Registrar may require as security for the costs of any inspection of the books of the society, the Registrar may, if he thinks it necessary, inspect or direct some person authorised by him by order in writing in this behalf to inspect the books of the society.
( 2) The Registrar shall communicate the result of any inspection to the applicant, and to the society whose books have been inspected.
( 3) It shall be competent for the Registrar to withdraw any order of inspection from the
Section 84 of the Maharashtra Co-operative Societies Act, 1960, pertains to the inspection of books and accounts of cooperative societies. It grants authority to the Registrar to ensure transparency, accountability, and proper functioning of societies through inspections and inquiries. The section plays a vital role in maintaining the integrity of cooperative institutions by enabling oversight and investigation into their financial and operational activities.
Section 84 authorizes the Registrar or other designated authorities to inspect the books of accounts, records, and documents of a society upon their satisfaction that such inspection is necessary. It provides a legal basis for conducting inquiries into the financial health and operational compliance of societies, including the power to examine books, summon witnesses, and require production of documents.
While Section 84 itself primarily deals with inspection powers, contravention of its provisions or obstruction during inspection may attract penalties under the Act. Penalties can include fines, which may extend to Rs. 500 or more, and imprisonment as per other provisions of the Act. For example, contravention of inspection orders or refusal to produce documents can lead to penalties up to Rs. 500 or imprisonment up to three years, depending on the severity of the violation [Analysis of penalties under the Act].
In conclusion, Section 84 of the Maharashtra Co-operative Societies Act, 1960, is a vital statutory provision empowering authorities to inspect and scrutinize societies' books, ensuring transparency, accountability, and proper functioning. Its proper exercise safeguards the interests of members and the integrity of cooperative institutions.
Note: The references are based on the provided sources and general legal principles applicable to the section.
(1) Where an inquiry is held under section83 or an inspection is made, under the last precedingsection, the Registrar may apportion the costs, or such part of the costs, ashe may think just between the society, the members or creditors demanding the inquiry orinspection, the officers or former officers and themembers or pastmembers or the estates of the deceasedmembers of the society:
Provided that,--
(a) no order of apportionment ofthe costs shall be made under this section unless the societyor person or the legal representative of the deceased person liable to pay thecosts thereunder, has or have been heard, or has or have had a reasonable opportunityof being heard;
(b) the Registrar shall state in writing thegrounds on which the costs are apportioned.
Any sum awarded by way of costs under the last preceding section, may be recovered, on an application by the Registrar to a Magistrate having jurisdiction in the place where the person from whom the money is claimable resides or carries on business, and such Magistrate shall proceed to recover the same in the same manner as if it were a fine imposed by himself.
(1) If the result of any inquiry held under section 83 or an inspection made under section 84 discloses any defects in the constitution, working or financial conditions or the books of society, the Registrar may bring such defects to the notice of the society. The Registrar may also make an order directing the society or its officers to take such action as may be specified in the order to remedy the defects, within the time specified therein.
(2) The society concerned may within sixty days from the date of any order made by the Registrar under the foregoing sub-section appeal against it to the State Government.
(3) The State Government may, in deciding the appeal, annul, reverse, modify or confirm, the order of the Registrar.
(4) If a society fails to rectify the defects disclosed in the cours
( 1) Where, in the course of or as a result of an audit under section 81 or an inquiry under section 83 or an inspection under section 84 or the winding up of a society, the Registrar is satisfied on the basis of the report made by the auditor or the person authorised to make inquiry under section 83 or the person authorised to inspect the books under section 84 or the Liquidator under section 105 or other wise that any person who has taken any part in the organisation or management of the society or any deceased, or past or present officer of the society has, within a period of five years prior to1[the date of commencement of such audit or date of ord er for inquiry, inspection or] winding up, misapplied or retained, or become liable or accountable for, any money or property of the society, or has been guilty of misfeasance or breach of trust in relation to the society, the Registrar or a person authorised by him in that beh
1[ 88A. Deposit towards fees of inquiry
Where the Registrar on his own motion decides and orders an inquiry under section 83 or proceeds or authorises to name inquiry under sections 88, he may, having regard to the nature of allegations, and the inquiry, involved, require the society concerned to deposit with him such sum of money as he may determine, towards the cost of inquiry. If the sum so determined, is not deposited with the Registrar within 15 days from the date of receipt of the order requiring the society to deposit the sum, it shall on a certificate issued by the Registrar, be recoverable as an arrears of land revenue.]
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1 . Section 88 A was inserted by Mah. 20 of 1986 , s. 45.
The Registrar or the persons authorised by him, when acting under section 83, 84 or 88 shall have the power to summon and enforce the attendance of any person1[and examining him on oath or affirmation or by affidavit] or to compel the production of any document or other material object by the same means and in the same manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908.
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1. These words were sub stituted for the words "to give evidence", by Mah. 33 of 1963 , s. 19.
1 [89A. Power to inspect working of society
(1) It shall be competent for the Registrar to inspect orcause to be inspected the working of any society to ensure that--
(a)the provisions of the Act, rules and bye-laws of the society are being properlyfollowed by the society;
(b)therecords and books of accounts are kept in proper forms;
(c)the business of the society is being run on sound business principles;
(d)thesociety is following the co-operative principles and the directives ordirections given by the State Government in accordance with the provisions ofthis Act and the rules made thereunder:
Providedthat, inspection of the societies specified under section
(1) The State Governmentmay constitute or recognise one or more co-operative federal authorities, insuch manner as may be prescribed and subject to such conditionsas the State Government may impose, for the supervision of a society or a classof societies and may frame rules for making grants to such an authority.
(2) The State Governmentmay, by general or special order, require of a societyor a class of societies to make contribution of such sum every year as may befixed by the Registrar towards the recoupment of expenditure which the StateGovernment or any person authorised in that behalf has incurred or is likely toincur, in respect of supervision of societies.
(3) A society to whichsub-section(2)is applicable shall pay to such authority such fee as may beprescribed within a reasonable time and, if it fails to pay such fee within areasonable, time the authority may recover it
( 1) Notwithstanding1[anything contained] in any other law for the time being in force, any dispute touching the constitution,2[elections of the committee or its officers other than elections of committees of the specified societies including its officer], conduct of general me etings, management or business of a society sh all be referred by any of the parties to the dispute, or by a federal society to which the society is affiliated or by a creditor of the society,3[to the co-operative Court) if both the parties thereto are one or other of the following:--
(a) a society, its committee, any past committee, any past or present officer, any past or present agent, any past or present servant or nominee, heir or legal representative of any deceased officer, deceased agent or deceased servant of the society, or the Liquidator of the society4[or the official Assignee of a de-registered
Section 91 of the Maharashtra Co-operative Societies Act, 1960, establishes the jurisdiction of Co-operative Courts to adjudicate disputes related to the management, constitution, elections, conduct of meetings, and business of co-operative societies. It is a specialized provision aimed at resolving disputes within the cooperative sector efficiently, avoiding unnecessary recourse to civil courts, and ensuring speedy justice within the cooperative framework.
Section 91 provides that any dispute touching the constitution, elections of office bearers, conduct of general meetings, management, or business of a society shall be referred to the Registrar or a Co-operative Court, if both parties are within the specified categories (members, past members, officers, agents, nominees, heirs, or persons with transactions with the society). It explicitly excludes disputes that are not within these categories or that pertain to matters outside the scope of management or business of the society.
Section 91 itself does not prescribe specific punishments; rather, it defines the jurisdictional scope of the Co-operative Court. However, contravention of the provisions, such as filing frivolous or outside jurisdiction disputes, can lead to penalties under the Act or contempt proceedings for misuse of the legal process.
In summary, Section 91 of the Maharashtra Co-operative Societies Act, 1960, delineates a specialized jurisdiction for disputes touching the management, constitution, and elections of societies, aiming to provide a speedy, expert resolution mechanism within the cooperative framework. It excludes disputes over title, ownership, or possession, which are reserved for civil courts, and emphasizes the importance of referring disputes to the appropriate authority to maintain the integrity and efficiency of cooperative governance.
1[ 91A. Constitution of Co-operative Courts
( 1 ) The State Government may, by notification in the Official Gazette, constitute one or more Co-operative Courts for the adjudication of dispute2[referred to them] under section 91 or section 105 or other provisions of this Act.
( 2) A Co-operative Court shall consist of one member appointed by the State Government possessing such qualifications as may be prescribed.
( 3) A Co-operative Court shall have jurisdiction over the whole State or any part thereof as may be specified in the notification under sub-section ( 1).
( 4) All disputes and other proceedings pending immediately before the commencement of the Maharashtra Co-operative Societies (Third Amendment) Act, 1973,3[before the Registrar or any per
( 1) Notwithstanding anything in1[the Limitation Act, 1963], but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to2[the Co-operative Court] under the last preceding section 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 form 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, and 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 when
Section 92 of the Maharashtra Co-operative Societies Act, 1960, primarily deals with the limitation period for initiating disputes before the Co-operative Court. It establishes specific time frames for different types of disputes related to co-operative societies, overriding the general Limitation Act, 1963. The section aims to ensure timely resolution of disputes and provides a framework for the procedural aspects concerning limitation.
This concise legal commentary synthesizes the key legal principles, scope, procedural nuances, and judicial interpretations pertaining to Section 92 of the Maharashtra Co-operative Societies Act, 1960, supported by relevant references and case law.
1[ 93 . Transfer of disputes from one Co-operative Court to another and suspension of proceedings in certain cases.
( 1 ) Where any dispute is referred to any Co-operative Court, the President of the Co-operative Appellate Court may, at any time, for reason to be recorded in writing, withdraw such dispute from that Court and may refer it for decision to any other C o-operative Court as he deems fit.
( 2) Notwithstanding anything contained in this Act, the Co-operative Court, on an application made to it by any of the parties to the dispute, may, if it thinks fit suspend any proceedings in respect of any dispute, if the question at issue between a society and a claimant or between different claimants, is one involving complicated questions of law and fact, until the question has been tried by a regular suit instituted by one of the partie
94. Procedure for settlement of disputes and power of1 [* * *] 2 [Co-operative Court]
(1) 2 [The Co-operative Court], hearing a dispute underthe last preceding section shall hear the dispute in the manner prescribed, andshall have power to summon and enforceattendance of witnesses including the parties interested or any of them and tocompel them to give evidence on oath, affirmation or affidavit, and to compelthe production of documents by the same means and as far as possible in the same manner, asis provided in the case of a Civil Court by the code of Civil procedure, 1908.
3 [(1A) Save as otherwise provided in this Act, every dispute inrelation to any election shall be heard and decided by the Co-operative Courtas expeditiously as possible and endeavour shall be made to conclude the hearing and decisionwithin six months from the date
Section 94 of the Maharashtra Co-operative Societies Act, 1960, delineates the procedure and jurisdiction of the Co-operative Court in adjudicating disputes related to co-operative societies. It establishes the framework for resolving conflicts, ensuring that disputes are settled efficiently within the specialized jurisdiction of the Co-operative Court, thereby maintaining the integrity and smooth functioning of co-operative societies.
Section 94 provides the procedural guidelines for the settlement of disputes concerning co-operative societies. It empowers the Co-operative Court to hear and decide disputes, including those related to elections, property, and financial matters, subject to specified conditions. Sub-sections detail the jurisdiction, the manner of filing disputes, and the scope of the Court's authority, including provisions for ex parte decisions, restoration of dismissed disputes, and the joining of interested parties.
Section 94 covers a broad spectrum of disputes related to co-operative societies, including election issues, property disputes, financial claims, and other conflicts arising within the scope of society management. It emphasizes the specialized jurisdiction of the Co-operative Court, limiting the jurisdiction of civil courts in matters covered under this section, except where expressly provided. It also clarifies the Court's authority to exercise powers similar to civil courts, including issuing injunctions and setting aside ex parte orders.
While Section 94 itself does not specify punishments, contraventions of its provisions, such as violating orders of the Court or contravening the Act, are punishable under other sections (e.g., Sections 145 to 148A), which prescribe fines and penalties for offences like disobedience, non-compliance, or contravention of Court orders.
This concise legal commentary synthesizes the scope, procedural nuances, and judicial interpretations of Section 94, emphasizing its role in facilitating effective dispute resolution within the framework of co-operative societies in Maharashtra.
1[ 95. Attachment before award or orders and interlocutory orders
( 1) Where a dispute has been referred to the Co-operative Court under section 93 or 105 or whether the Registrar or the person authorised under section 88 (h ereinafter in this section referred to as "the authorised person") hears a person against whom charges are framed under that section and the Co-operative Court or the Registrar or the authorised person, as the case may be, is satisfied on inquiry or other wise that a party to such dispute or the person against whom proceedings are pending under section 88 , with intent, to defeat, delay or obstruct the execution of any award or the carrying out of any order that may be made,--
(a) is about to dispose of the whole or any part of his property, or
(b) is about to remove the w
1[ 96. Decision of Co-operative Court
When a dispute is referred to artibration, the Co-operative Court may, after giving a reasonable opportunity to the parties to the dispute to be heard, made an award on the dispute, on the expenses incurred by the parties to the dispute in connection with the proceedings, and fees and expenses payable to the Co-operative Court. In case of money claim preferred by society against a me mber, the amount of award representing the interest sh all not be less than the amount of interest accrued there on in accordance with the contractual rate of interest, but where such money claim relates to any loan referred to in section 44 A, the provisions of that section sh all apply to such money claim as they apply to loan under section 44A.]
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1. Section
97.1[Appeal against decision under section 96 and Order under section 95]
Any party aggrieved by any decision of2[the Co-operative Court] under the last preceeding section, or ord er passed3[by the Co-operative Court or the Registrar or the authorised person] under section 95 may, within two months from the date of the decision or ord er, appeal to4[the Co-operative Appellate Court.]
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1. This marginal note was sub stituted by Mah. 3 of 1974 , s. 10(c).
2. These words were sub stituted for the words "the Registrar or the Co-operative Court" by Mah. 18 of 1982 , s. 10(a).
3. These words were inserted by Mah. 3 of 1974 , s. 10(b).
&
Every ord er passed1[by the Official Assignee of a de-registered society under sub -section ( 3 ) of section 21 A or every ord er passed] by the Registrar or a person authorised by hi m under section 88 or by the Registrar2[or the Co-operative Court under section 953[or by the Co-operative Court under section 96 ], every ord er passed] in appeal under the last preceeding section every ord er passed by a Liquidator under section 105 , every ord er passed by the State Government in appeal against ord ers passed under section 105 and every ord er passed in revision under section 154 shall, if not carried out,--
(a) On a certificate signed by4[the Official Assignee or] the Registrar5[or the Co-operative Court] or a Liquidator, 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
Any private transfer or delivery of, or encumbranceor charge on, property made or created after the issue of the certificate ofthe Registrar, 1 [Co-operative Court], Liquidator or Assistant/Registrar, as the case may be, undersection 98 shall be null and void as against the society onwhose application the said certificate was issued.
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1. These words wereinserted by Mah. 18 of 1982, s. 12.
( 1 ) When in any execution of an ord er sought to be executed under section 98 ,1[or the recovery of any amount under section 101 or section 137 ], any property cannot be sold for want of buyers, if such property is in occupancy of the defaulter, or of some person in hi s behalf, or of some person claiming under a title created by the defaulter sub sequently to the issue of the certificate of the Registrar,2[Court], Liquidator or the Assistant Registrar, under clause (a) or (b) of section 98 ,3[or under section 101 or 137 ], the Court or the Collector or the Registrar, as the case may be, may, notwithstanding anything contained in any law for the time being in force, direct that the said property or any portion thereof sh all be transferred to the society which has applied for the execution of the said order, in the manner prescribed.
( 2) Where property is transferred to the soci
Section 100 of the Maharashtra Co-operative Societies Act, 1960, deals with the transfer of property that cannot be sold in execution of a decree or for recovery of dues. It provides a legal mechanism for societies to utilize such properties for recovering dues, ensuring that properties not easily saleable in execution proceedings can still serve as a means of recovery.
Section 100 stipulates that when property cannot be sold in execution of a decree or for recovery of dues, the society can transfer such property to itself or to a bank or financial institution for recovery purposes. The transfer aims to enable the society to use the property for recovery, without the property being sold in the usual manner. The section also outlines procedures for transfer and the conditions under which it can be effected.
Section 100 provides a specialized mechanism for the transfer of immovable property that cannot be sold through execution proceedings. It is designed to facilitate recovery of dues in cases where properties are not readily saleable. The section applies to properties involved in proceedings under the Act, especially in cases of default or unpaid dues. It also interacts with other provisions related to recovery and property transfer, such as Sections 98, 101, and 137.
Section 100 itself does not specify any punishment. However, violations such as unauthorized transfer or non-compliance with procedural requirements may attract penalties under other provisions of the Act or Rules. Improper transfer or breach of procedure can lead to proceedings for recovery or other legal actions, including penalties or nullification of the transfer.
Section 100 of the Maharashtra Co-operative Societies Act, 1960, provides a vital legal framework for the transfer and recovery of properties that cannot be sold in execution. Its proper application hinges on adherence to principles of natural justice, procedural correctness, and consideration of limitations. Violations of these principles can render proceedings void and subject to judicial review.
Legal Comments Summary- "Natural Justice" - Proceedings require opportunity to be heard; absence of notice invalidates proceedings - [Sharad H. Lotlikar VS Government of Goa]- "Notice to Heirs" - Initiating proceedings against a deceased without notice to heirs is illegal - [Laxmi Anant Pednekar VS Government of Goa]- "Limitation" - Authority must consider limitation; claims beyond period are barred - [Sharad H. Lotlikar VS Government of Goa]- "Procedural Compliance" - Transfer must follow prescribed rules, including registration and valuation - [Suresh Malappa Shetty VS Spl. Recovery Officer & others]- "Vitiation" - Non-compliance with procedures invalidates proceedings - [Laxmi Anant Pednekar VS Government of Goa]- "Property Transfer" - Transfer under Section 100 is for recovery, not absolute ownership - - "Encumbrance" - No encumbrance by licensee in permissive possession; documents must be genuine and registered - [Suresh Malappa Shetty VS Spl. Recovery Officer & others]- "Auction and Sale" - Sale must adhere to auction laws; stamp duty and valuation are critical - [Priyesh Land Developers a Partnership Firm VS Pen Co-operative Urban Bank Ltd. ]- "Certificate Validity" - Certificates should be issued lawfully; invalid certificates can be challenged - [Priyesh Land Developers a Partnership Firm VS Pen Co-operative Urban Bank Ltd. ]- "Reconsideration" - Proceedings without proper notice or beyond limitation should be quashed and remanded - [Sharad H. Lotlikar VS Government of Goa]- "Legal Framework" - Proper adherence to procedure ensures validity of transfer and recovery actions under Section 100 -
Note: The references indicate the sources from which these legal principles are derived, emphasizing the importance of procedural correctness and adherence to legal standards in proceedings under Section 100.
101. 1 [Recovery of arrears due to certain societies as arrears of land revenue
2 [(1) Notwithstanding anything contained in sections 91, 93 and 98, on an application made by a resource society undertaking the financing of crop and seasonal finance as defined under the Bombay Agricultural Debtors Relief Act, 1947, 3 [or advancing loans for other agricultural purposes repayable during a period of not less than eighteen months and not more than five years] for the recovery of arrears of any sum advanced by it to any of its members on account of the financing of crop or seasonal finance 4 [or for other agricultural purposes as aforesaid] or by a crop-protection society for the recovery of the arrears of the initial cost or of any contribution for obtaining services required for crop-protection society or for the recovery of the arrears of the initial cost or of any contribution for ob
Section 101 of the Maharashtra Co-operative Societies Act, 1960, provides a statutory mechanism for the recovery of dues and arrears owed by members or other persons to co-operative societies. It facilitates a summary, quasi-judicial process to recover amounts as arrears of land revenue, thereby streamlining the enforcement process and reducing reliance on lengthy court proceedings.
Section 101 authorizes the Registrar or an officer authorized by the Registrar to issue a recovery certificate for dues payable to a co-operative society. The process involves issuing a demand notice, final notice, and thereafter, the certificate can be executed as an arrear of land revenue. The section explicitly states that no civil or revenue court shall have jurisdiction in respect of disputes relating to such recovery, emphasizing the summary nature of the proceedings.
While Section 101 itself does not prescribe specific punishments, non-compliance with recovery proceedings or fraudulent misrepresentations can lead to penalties under the Act or other applicable laws. Moreover, the misuse or abuse of the process, such as issuing certificates without proper procedure, can attract legal consequences, including quashing of certificates and disciplinary action.
Section 101 of the Maharashtra Co-operative Societies Act, 1960, provides an effective, speedy mechanism for recovering dues, emphasizing summary proceedings that are barred from civil or revenue courts. While it streamlines recovery, it also incorporates safeguards to prevent misuse, and courts have consistently held that the process must be followed strictly, with procedural fairness and adherence to law. Challenges to certificates are permissible through revision or writ petitions, especially where procedural irregularities, fraud, or extraneous considerations are established.
Note: This commentary synthesizes legal principles, judicial interpretations, and procedural aspects based on the provided sources and case law references, offering a comprehensive understanding of Section 101's scope and limitations.
( 1) If the Registrar,--
(a) after an inquiry has been held under section 83 or an inspection has been made under section 84 or on the report of the auditor auditing the accounts of the society, or
(b) on receipt of an application made upon a resolution carried by three-fourths of the me mbers of a society present at a special general meeting called for the purpose, or
(c) of his own motion, in the case of a society which--
(i) has not commenced working, or
(ii) has ceased working, or
(iii) possesses sh ares or members' deposits not exceeding five hundred rupees, or
(iv) has ceased to comply with any conditions as to
(1) When an interim order is passed under the last preceding section or a final order is passed under that section, for the winding up of a society, the Registrar may in accordance with rules, appoint a person to be Liquidator of the society, and fix his remuneration.
(2) On issue of the interim order, the officers of the society shall hand over to the Liquidator the custody and control of all the property, effects and actionable claims to which the society is or appears to be entitled and, of all books, records and other documents pertaining to the business of the society and, shall have no access to any of them.
(3) When a final order is passed confirming the interim order, the officers of the society shall vacate their offices, and while the winding up order remains in force the general body of the society shall not exercise any power
1(( 1 ) The committee, or any me mber of the society, ord ered to be wound up may prefer an appeal against the final ord er of winding up within two months from the date of the issue of the ord er made under section 102, --
(a) if made by the Registrar, or the Special or Additional or Joint Registrar on whom the powers of the Registrar are conferred, to the State Government;
(b) if made by any person other than the Registrar, or special or Additional or Joint Registrar on whom the powers of the Registrar are conferred, to the Registrar;
Provided that, no appeal sh all lie against an ord er, issued under sub -clause (i), (ii) or (iii) of clause (c) of sub -section ( 1) of section 102.]
( 2) No appeal from a member under this section shall be entertai
1 [(1)] The Liquidator appointed under section103shall have power,subject to the rules and the generalsupervision, control and direction of the Registrar,--
(a)to institute and defend any suit and other legal proceedings, civil or criminal, on bealf ofthe society, in the name of his office;
(b)to carry on the business of the society, so far as may be necessary for thebeneficial winding up of the same;
(c)to sell immovable and movable property and actionable claims of the society bypublic auction or private contract, with power to transfer the whole or partthereof to any person or body corporate, or sell the same in parcels;
2 [(c-i) to transfer by sale assets valued at marketprice to a society registered with similar objects or to Government underta
After expiry of the period for appeal against the order made under sub-section (1) of section 102 or where the appeal has been dismissed, the order for winding up shall be effective and shall operate in favour of all the creditors and of all the contributories of the society, as if it had been made on the joint petition of creditors and contributories. When a winding up order becomes effective, the Liquidator shall proceed to realise the assets of the society by sale or otherwise, and no dispute shall be commenced or if pending at the date of the winding up order, shall be proceeded with, against the society, except by leave of the Registrar and subject to such terms as the Registrar may impose. The Registrar, may of his own motion, however, entertain or dispose of any dispute by or against the society.
Save as expressly provided in this Act, no Civil Court shall take cognizance of any matter connected with the winding up or dissolution of a society under this Act; and when a winding up order has been made no suit or other legal proceedings shall lie or be proceeded with against the society or the liquidator, except by leave of the Registrar, and subject to such terms as he may impose:
Provided that, where the winding up order is cancelled, the provisions of this section shall cease to operate so far as the liability of the society and of the members thereof to be sued is concerned, but they shall continue to apply to the person who acted as Liquidator.
(1) The Liquidator, shall, during his tenure of office, at such times as may be prescribed, but not less than twice each year, present to the Registrar an account in the prescribed form of his receipts and payments as Liquidator. The Registrar shall cause the accounts to be audited in such manner as he thinks fit; and for the purpose of audit, the Liquidator shall furnish the Registrar with such vouchers and information as he, or the person appointed by him, may require.
(2) The Liquidator shall cause a summary of audited accounts to be prepared, and shall send a copy of such summary to every contributory.
(3) The Liquidator shall pay such fees as the Registrar may direct, for the audit of the accounts and books kept by him in the manner prescribed.
(4) The Liquidator shall be held liable for
( 1) The winding up proceedings of a society sh all be closed1[as soon as practicable within six years] from the date2[the Liquidator takes over the custody or control of all the property, effects and actionable claims to which the society is or appears to be entitled and of all books, records and other documents pertaining to the business of the society, under sub -section ( 2 ) of section 103], unless the period is extended by the Registrar :
Provided that, the Registrar sh all not grant any extension for a period exceeding one year at a time and four years in the aggregate, and sh all, immediately after the expiry of3[ten years] from the date4[aforesaid], deem that the liquidation proceedings have been terminated, and pass an order terminating the liquidation proceedings.
5[Explanation.-- In the case of a society which is under liquid
The surplus assets, as shown in the final report of the Liquidator of a society which has been wound up, may either be divided by the Registrar, with the previous sanction of the State Government, amongst its members in such manner as may be prescribed or be devoted to any object or objects provided in the bye-laws of the society, if they specify that such a surplus shall be utilised for the particular purpose or may be utilised for both the purpose. Where the surplus is not so divided amongst the members and the society has no such by-laws, the surplus shall vest in the Registrar, whoshall hold it in trust and shall transfer it to the reserve fund of a new society registered with a similar object, and serving more or less an area which the society, to which the surplus belonged was serving :
Provided that, where no such society exists or is registered within three years of the can
3 [(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 the bank shall be made 1 [by the Registrar] if so required by the Reserve Bank of India in the circumstances referred to in section 13-D of the Deposit Insurance Corporation Act, 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 securing the
2 [ 111 . Application of Chapter XI of 4 [Co-operative Agriculture and Rural Multipurpose Development Banks]
This Chapter shall apply to--
(a) any co-operative bank or banks advancing loans other than short term loans, to or through the 2 [Agriculture and Rural Development Bank], for the purposes herein enumerated (h hereinafter referred to as "the 2 [Agriculture and Rural Development Bank"]), namely :--
(i) agricultural or rural development;
(ii) purchase of, or acquisition of title to, agricultural lands by tenants, occupants and assignees under any law for the time being in force;
(iii) liquidation of Governmental, Institutional and other secured debts to agriculturists;
&nbs
112 .1[State and other 8[Co-operative Agriculture and Rural Multipurpose Development Banks]
2[( 1 ) There sh all be a 3[State Agriculture and Rural Development Bank], for the State of Maharashtra. If considered necessary by the State Government in the public interest or in the interest of the co-operative movement, there may be one or more 4[Primary Agriculture and Rural Development Banks;] but nothing in this sub -section sh all be taken to require the establishment or continuance of any 4[Primary Agricultural and Rural Development Banks).
( 2 ) A reference to Land Mortgage Bank 5[or to a Land Development Bank in any law, or instrument, for the time being in force in the State, sh all with effect from the commencement of this Act, be constructed as a reference to a 6[Agriculture and Rural Development Bank] within the meaning of this Cha
1 [112A. District Loan Committee, its term of office of delegates casual vacancies, powers of such committee, etc.
(1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in the bye-laws of the 25 [State Co-operative Agriculture and Rural Multipurpose Development Bank]
(a) There shall be a District Loan Committee for each District excluding the City of Bombay District and Bombay Suburban District.
(b) Every District Loan Committee shall consist of the following 3 [* * *] that is to say,--
4 [(i) delegates to be elected one each from every taluka in district;].
5 l(i-a) two members, one from the persons belonging to the scheduled castes or Scheduled Tribes and one from the p
1[ 112AA. Election of delegate as member of Agriculture and Rural Development Bank from City of Bombay District and Bombay Suburban District
( 1) Notwithstanding anything contained in this Act or the rules made thereunder, the me mbers of the Agriculture and Rural Development B ank from the City of B ombay District and B ombay Sub urban District sh all elect one delegate from amongst themselves for every general body me eting of the me mbers of the Bank.
( 2) Sub ject to the provisions of section 14 , the Agriculture and Rural Development B ank sh all make bye-laws for the purpose of the election of a delegate under sub section ( 1).
( 3) The power to make bye-laws conferred by sub -section ( 2 ) is subject to the condition of the bye-laws being made after previous approval of the Registrar.)<
112B. General Body and committee of1[State Agriculture and Rural Development Bank]
( 1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in the bye-laws of the1[State Agriculture and Rural Development Bank,--]
(a) The delegates2[and me mbers] elected in accordance with the provisions of clauses (c) and (d) of sub -section ( 1) of section 112 A3[and sub -section ( 1) of section 112 AA]] sh all, for the purposes of section 72 , constitute the general body of me mbers of the1[State Agriculture and Rural Development Bank.]
(b) The committee of the1[State Agriculture and Rural Development B ank] sh all consist of the following members, namely:--
(i) the Chairmen of all the District Loan Committees;
1[* * * * * * *]
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1 . Section 112 C was deleted, by Mah. 10 of 1988 , s. 23.
( 1) The Registrar, or any other person appointed by the State Government in this behalf, sh all be Trustee for the purpose of securing the fulfilment of the obligations of the State Development Bank to the holders of debentures issued by it.
( 2) The Trustee sh all be a corp oration sole by the name of the Trustee for the debentures in respect of which he is appointed and sh all have perpetual succession and a common seal, and in hi s corporate name may sue and be sued.
( 3) The powers and functions of the Trustee sh all be governed by the provisions of this Act, and the instrument of trust executed between the1[State Agriculture Development and Rural B ank] and the Trustee, as modified from time to time by mutual agreement between the1[State Agriculture and Rural Development Bank] and the Trustee.
( 1) With the previous sanction of the State Government and the Trustee, and sub ject to such terms and conditions as the State Government may impose, the1[State Agriculture and Rural Development B ank] in the discharge of its function as1[an Agriculture and Rural Development B ank] may issue debentures of such denominations, for such period, and at such rates of interest, as it may deem expedient on the security of mortgages2[instruments of hypothecation, guarantee, pledge or charge created in favour of the B ank, or mortgages, instruments of hypothecation, guarantee, pledge or charge to be acquired or partly on mortgages or on any of the aforesaid instruments] held and partly to be acquired, and properties and other assets of the1[State Agriculture and Rural Development Bank].
( 2 ) Every debenture may contain a term fixing a period not exceeding thirty years from the date of iss
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 and to such conditions as the State Government may think fit to impose.
Upon the issue of debentures, under the provisions of section 114, the mortgage properties and other assets1[including the properties covered by the instruments,] referred to in sub-section ( 3) of that section held by the2[State Agriculture and Rural Development Bank], shall vest in the Trustee, and the holders of debentures shall have a floating charge on all such3[mortgages, instruments and assets,] and on the amount paid under such mortgages,4[and such instruments] and remaining in the hands of the2[State Agriculture and Rural Development Bank] or of the Trustee.
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1. These words were inserted by Mah. 5 of 1990 , s. 5(a).
2. These words were sub stituted for the words "State Land Development B ank" and "Land Development B ank" by Mah. 10 of 1988 , s. 19.
117 . Powers of1[Agriculture and Rural Development Banks] to advance loans and to hold lands
Subject to the provisions of this Act and the rules made thereunder, it sh all be competent for the1[Agriculture and Rural Development B anks] to advance loans for the purposes referred to in section 111 , and hold lands2[or dwelling houses in rural area] the possession of which is transferred to them under the provisions of this Chapter.
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1. These words were sub stituted for the words "Land Development B ank" by Mah. 10 of 1988, s . 19.
2 . These words were Inserted by Mah. 5 of 1990, s . 6.
1[* ***** * *]
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1 . Section 118 was deleted, by Mah. 10 of 1988 , s. 24.
A written ord er by the1[Agriculture and Rural Development B ank], or persons or committee authorised under the by-laws of the B ank to make loans for all or any of the purposes specified in section 111 , granting, either before or after the commencement of this Act, a loan to or with the consent of a person me ntioned therein, for the purpose of carrying out the work specified therein for the benefit of the land or for the productive purpose2[or for the purpose of dwelling house in rural area] 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,2[or for the purpose of dwelling house in rural area], as the case may be, within the me aning of section 111;
(b) that the
( 1 ) A mortgage executed in favour of an1[an Agriculture and Rural Development B ank], sh all have priority over any claim of the Government arising from a loan granted after the execution of the mortgage under the Land Improvement Loans Act 1883 , or the Agriculturists' Loans Act, 1884 , or under any other law for the time being force.
( 2) Notwithstanding anything contained in the B ombay Tenancy and Agricultural Lands Act, 1948 , or any other corresponding law for the time being in force, where a mortgage in favour of an2[an Agriculture and Rural Development B ank] is in respect of land in which a tenant purchaser or tenant has an interest, the mortgage may be against the security of such interest, and the rights of the mortgage sh all not be affected by the failure of the tenant purchaser or tenant to comply with the requirements of such law, and the sale of the land and hi s
121. Mortgages1[and other instruments] executed in favour of2[an Agriculture and Rural Development Bank.] to stand vested in3[State Agriculture and Rural Development Bank.]
The mortgages4[instruments of hypothecation, guarantee, pledge or charge] executed in favour of, and all other assets transferred to2[an Agriculture and Rural Development B ank,] by the me mbers thereof before or after the commencement of the Act, sh all, with the date of such execution or transfer, be deemed to have been transferred by such2[an Agriculture and Rural Development B ank] to the1[State Agriculture and Rural Development B ank,] and sh all vest in the State Agriculture and Rural Development Bank].
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1. These words were inserted by Mah. 5 of 1990 , s. 8(b).
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1[ 122. Registration of mortgage lease etc . executed in favour of Agriculture and Rural Development Banks
Notwithstanding anything contained in the Indian Registration Act, 1908 it sh all not be necessary to register mortgage, lease, hypothecation deed, loan, bond surety bond, guarantee deed, promissory note or loan agreement executed in favour of the Agriculture and Rural Development B ank, provided the B ank sends within such time and in such manner as may be prescribed a copy of such instrument to the concerned registering authority; and on receipt of the copy the registering authority sh all file the same in the relevant books prescribed under the Registration Act, 1908:
Provided that, any such instrument executed in favour of the bank before the date of publication of the Maharashtra Co-operative Societies (Amendment) Act, 1989 in
123. Mortgages 1 [and other instruments] not to be questioned on insolvency of mortgagors 2 [or executants]
Notwithstanding anything contained in the Presidency-Towns Insolvency Act, 1909 or the Provincial Insolvency Act, 1920 or any corresponding law for the time being in force, a mortgage, 3 [or any other instruments supporting the loan] executed in favour of4 [an Agriculture and Rural DevelopmentBanks] shall, not be called in question in any insolvency proceedings on the ground that it was executed in order to give the Bank a preference overother creditors of the mortgagor 5 [or of the executant of the instrument].
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1. These words were inserted by Mah. 5 of 1990, s. 10(c)(i).
2. These words were inserted by Mah. 5 of 1990, s
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1. Section 124 was deleted by Mah. 10 of 1988 , s. 25.
125 . Mortgages1[and other instruments] executed by managers of joint Hindu families.
( 1 ) Mortgages2[and other instruments] in respect of loans by3[an Agriculture and Rural Development B ank] or the3(State Agriculture and Rural Development B ank] either before or after the commencement of this Act, by the manager of Hi ndu joint family for the improvement of agricultural land or of the me thods of cultivation or for financing any other me ans to raise the productivity of the land, or for the purchase of land,4[or for creation of new movable or immovable assets or for the purpose of acquisition, construction, rebuilding or repairing of a dwelling house in rural area] sh all be binding on every me mber of such joint Hindu family notwithstanding any law to the contrary.
( 2) In other cases, where a mortgage5[or other instrument] executed
126. Section 8 of Act XXXII of 1956 to apply to mortgages 1 [andotherinstruments] to 2 [an Agriculture and Rural Development Banks],subject tocertain modification
Section8 of theHinduMinority and Guardianship Act, 1956,shall applyto mortgages 3 [and other instruments] in favourof 2 [an Agriculture and Rural Development Banks],subject tothe modification that reference, to court therein shall be construed asreference to the Collector or his nominee and the appealagainst the order of the Collector orhis nomineeshall lie tothe Commissioner.
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1. These words were insertedby Mah. 5 of 1990, s. 12.
2.These words wereinserted by Mah. 5 of 1990, s. 11(c).
( 1) Notwithstanding anything contained in the Transfer of Property Act, 1882 or any other law for the time being in force, no mortgagor of property mortgaged to1[an Agriculture and Rural Development B ank], sh all except with the prior consent in writing of the bank, and subject to such terms and conditions as the bank may, impose, lease or create any tenancy rights on any such property:
Provided that, the rights of the1[an Agriculture and Rural Development B ank] sh all be enforceable against the tenant purchaser, the lessee or the tenant, as the case may be, as if he himself were a mortgagor.
( 2) Where land, mortgaged with possession to1[an Agriculture and Rural Development B ank], is in actual possession of a tenant, the mortgagor or the1[an Agriculture and Rural Development B ank], sh all give notice to the tenant to pay rent to th
128.1[Agriculture and Rural Development Bank] to receive money and give discharge
Notwithstanding anything contained in section 121 , all moneys due under the mortgage sh all unless other wise directed by the1[State Agriculture and Rural Development B ank] or the Trustee and communicated to the mortgagor, be payable by the mortgagor to the1[Agriculture and Rural Development B ank], and such payment sh all be as valid as if the mortgage had not been so transferred and the1[Agriculture and Rural Development B ank] sh all in the absence of specific direction to the contrary, issued by the2[Stage Agriculture and Rural Development B ank] or Trustee and communicated to the bank, be entitled to sue on the mortgage or take any other proceeding for the recovery of the moneys due under mortgage.
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1[ 129. Powers of Agriculture and Rural Development Bank where mortgaged property is destroyed or security becomes insufficient
Where any property mortgaged to an Agriculture and Rural Development B ank is wholly or partially destroyed, or for any reason the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the 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 sh all be deemed to fall due at once; and the bank sh all be entitled to take action against the mortgagor under section 132 or section 133 for the recovery thereof.
Explanation. -- Security sh all be deemed insufficient within the me aning of this section, unless the value of the mortgaged property (including improvements m
130. Right of1[Agriculture and Rural Development Banks] to buy mortgaged property
( 1) Property purchased under section 133 ( 3 ) by, and property transferred under section 100 to,2[Agriculture and Rural Development B anks], may be disposed of by such banks by sale within such period as may be fixed by the Trustee, sub ject to the, condition that such sales sh all be in favour only of agriculturists eligible to hold land under the B ombay Tenancy and Agricultural Lands Act 1948 , or any corresponding law for the time being in force,3[or in favour of Tribals, if such property belongs to a Tribal] or may by lease out by them on such terms and conditions as may be laid down by the State Government from time to time.
4[Explanation.-- For the purposes of this sub -section and section 133 A; 'Tribal' me ans a person belonging to a Scheduled Tr
All loans granted by the1[Agriculture and Rural Development B anks, all interests (if any) chargeable thereon, and costs (if any), incurred in making the same, sh all when they become due, be recoverable by the1[Agriculture and Rural Development Bank] concerned.
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1. These words were sub stituted for the words "State Land Development B ank", "Land Development B ank" and "a Land Development B ank" by March, 10 of 1988 , s. 19.
1[ 132. Powers to distraint
( 1) If any instalment payable under a mortgage, hypothecation deed loan bond, surety bond or other instrument executed in favour of Agriculture and Rural Development B ank, or any part of such instalment, has remained unpaid for more than one month from the date on which it fell due, the bank sh all, in addition to any other remedy available to the bank, apply to the Registrar for recovery of such instalments or part thereof by distraint and sale of the produce of the mortgaged or other wise encumbered land and properties of and on such land including the standing crops thereon or the movable property encumbered under hypothecation deed or loan bond. The instalments due or any part thereof shall also be recoverable by distraint and sale of the new property created by the debtor by converting the original movable property for which the loan was granted b
1[ 133. Sale of mortgaged property
( 1) Notwithstanding anything contained in the Transfer of Property Act, 1882 , the Agriculture and Rural Development B ank or any person authorised by it in this behalf sh all, 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 sh all be taken under this sub -section and no such power shall be exercised, unless and until --
(a) the Agriculture and Rural Development B ank has been previously authorised to exercise the power conferred under this sub-sec
1[ 133 A. Mortgaged or encumbered property of Tribal and to be sold to non-Tribal at public auction under section 133
Notwithstanding anything contained in this Act or in any other law for . t he time being in force, where the mortgaged or encumbered property belongs to a Tribal, it sh all not be sold to any non-Tribal bidder at public auction under section 133 or otherwise transferred to a non-tribal under the provisions of this Act.]
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1 . Section 133 A was inserted by Mah. 5 of 1990 , s. 17.
( 1) On effecting the sale by1[an Agriculture and Rural Development B ank] under section 133 , the bank sh all, in the prescribed manner, sub mit to the1[State Agriculture Development B ank] and the result of the sales, and the1[State Agriculture and Rural Development Bank] may, with the approval of the Registrar, confirm the sale or cancel it.
( 2 ) Where the sale is effected by the1[State Agriculture and Development B ank] or the trustee under section 133 , the1[State Agriculture and Development B ank] or the Trustee, as the case may be, sh all 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.
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1. These words were sub stitute
The proceeds of every sale effected under section 133 and confirmed under the preceding section, sh all be applied first in payment of all costs, charges and expenses incurred in connection with the sale or attempted sales, secondly in payment of all costs, charges and expenses incurred in connection with the sales or attempted sales, secondly in payment of any or all interest due on account of the mortgage1[or encumberance) in consequences whereof the2[mortgage or other wise encumbered property] was sold, and thirdly in payment of the principal due on account of the mortgage1[or encumberance] including costs and charges incidental to the recovery.
If there remain any residue from the proceeds of sale, the same be paid to the person proving hi mself interested in the property sold, or if there are more such persons than one, then to such persons upon their joint receipt or accordin
( 1) Where a sale of mortgaged property has become absolute under section 134 and the sale-proceeds have been received in full by the1[Agriculture and Rural Development B ank], the bank sh all 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 became absolute; and upon the production of such certificate the Sub -Registrar appointed under the India Registration Act, 1908 , within the limits of whose jurisdiction the whole or any part of the property specified in the certificate is situated, sh all 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 mortgagor, or of some person on hi s behal
( 1) Notwithstanding anything contained in section 91 and 98 , on an application made by1[an Agriculture and Rural Development B ank] for the recovery of arrears of any sum advanced by it to any of its me mbers and on its furnishing a statement of accounts in respect of the arrears, the Registrar may, after making such enquiries 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) sh all be final and conclusive as to 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 sh all be lawful to the Collector to take precautionary me asures authorised by sections 140 to 144 of the B ombay Land Revenue Code, 1879 or
138 .1[Mode of recovery by Collector]
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( 2 ) Any amount due to3[4[an Agriculture and Rural Development B ank] (Including cost of recovery thereof) sh all on an application by it in this behalf] be recoverable by the Collector, or any officer5[including an Officer of the Agriculture and Rural Development Bank] specially authorised by the Collector in this behalf, in all or any or 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 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 any)--as if they were arrears of land revenue due by
1[ 139 . Officers or members of family not to bid at auction sales
At any sale of movable or immovable property, held under the provisions of this Chapter, no officer or employee or any me mber of the family of such officer or employee of2[a Agriculture and Rural Development B ank] 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.
Explanation.--For the purposes of this section, the expression "member of the family" means wife, husband, father, mother, bother, sister, son, daughter, son-in-law or daughter-in- law].
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1. Section 139
140 . Section 40 of B om. XXVIII of 1947 not to apply to alienation in favour of1[Agriculture and Rural Development Bank]
Nothing contained in section 40 of the B ombay Agricultural Debtors Relief Act, 1947 , or any corresponding law for the time being in force in any part of the State sh all apply to any alienation in favour of the1[Agriculture and Rural Development Banks].
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1. These words were sub stituted for the words "a Land Development B ank". "Land Development B anks" "State Land Development B ank", and "a Land development B ank" respectively, by March. 10 of 1988 , s. 19.
(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 1 [Agriculture and Rural Development Banks] on titles to immovable property subsequently found to be defective or for any other purpose under for or create a separate Guarantee Fund.
(2) The 1 [State Agriculture and Rural Development Bank] and the 1 [Agriculture and Rural Development Banks] shall contribute to such funds at such rate as may be prescribed, and the constitution, maintenance and utilisation of such funds shall be governed by such rules, as may be made by the State Government in this behalf.
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1. These words were substituted for th
142. Registrar's power to permit any1 [society]2 [or Class of societies] to function as3 [an Agriculture and Rural DevelopmentBank]
It shall be competent for theRegistrar to permit any 1 [society) 2 [or class of societies tofunction as 3 [an Agriculture and Rural Development Bank] under such terms andconditions and for such period as he may deem fit.
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1. This word wassubstitutedfor the words "Co-operative bank" by Mah. 20 of 1986, s. 57.
2. These words wereinserted by Mah. 10 of 1988, s. 27.
3. These words weresubstitutedfor the words "a Land Development Bank", "LandDevelopment Banks" "State Land Development Bank", and "aLand development Bank" respectively, by M
The provisions of sections 102 and 103 of the Transfer of Property Act, 1882, and to 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.
1[ 143A.Transfer of rights and liabilities of Government in respect of schemes sanctioned under Bom. XXVIII of 1942
( 1 ) Where any works, included in a land improvement scheme which has come into force under the B ombay Land Improvement Schemes Act, 1942 , are carried out at the cost or part cost of the State Government, and such cost is to be recovered from the owners of lands (other than Government) included in the scheme as sh own in the statement prepared under section 132[or in the interim or final statement] prepared under section 13 A of the Act, then notwithstanding anything contained in this Act, all the rights and liabilities of the State Government for the recovery of the cost or part cost from the owners of land sh all stand transferred to3[an Agriculture and Rural Development B ank], in relation to such owners of lands and sub ject to such terms and conditions (includ
144. Power to Committee of 1 [State Agriculture andRural Development Bank] to supervise 1 [Agriculture and RuralDevelopment Banks] and make regulations
The committee of the1 [State Agriculture andRural Development Bank] shall have a general powerof supervision over 1 [Agriculture and Rural Development Banks] and may,with theprevious sanction of the State Government make regulations, not inconsistentwith this Act or the rules made thereunder, for all any of the followingmatters, namely:--
(a) for the inspection of the account books andproceedings of 2 [Agriculture and Rural Development Banks];
(b) for the submission of returns andreports by such banks in respect of their transactions;
(c) for the periodical settlement of accountsbetween such banks an
1[144.IA Reorganisation, amalgamation or division of2[Agriculture and Rural Development Banks,] in public interest
(1) Notwithstanding anything in this Act or in any rules or bye-laws made thereunder, it shall be lawful for the State Government to provide from time to time, by an Order made under and in accordance with the provisions of sectiion 18, for the reorganisation of the2[Primary Agriculture and Rural Development Banks], either by amalgamating with it all any of the2[Primary Agriculture and Rural Development Banks] or otherwise: or for the division of the2[State Agriculture and Rural Development Banks] into a 2[State Agriculture and Rural Development Bank] and one or more2[Primary Agriculture and Rural Development Banks] as may be considered necessary: or for the amalgamation or division of all or any of the2[Primary Agriculture and Rural Development Banks] among themsel
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1. Section 144 - 1B was deleted by Mah. 10 of 1988 , s. 28.
( 1)1[2[This Chapter] sh all apply] only to elections to committees of societies belonging to the categories specified in section 73-G.
( 2 ) In this Chapter, unless the context otherwise requires.--
(a) "Collector" me ans the Collector having jurisdiction over the local areas in which the registered office of the society concerned is situated;3[and includes the Additional Collector, and also any officer not below the rank of Deputy Collector, appointed by the State Government to exercise the powers and to perform the duties of the Collector under this Chapter];
(b) "election" me ans an election of a me mber or me mbers of the committee4[or of officer or officers] of a specified society;
(c) "specified society" me ans a society belonging to any of t
Every election shall be held as far as possible some time prior to the date on which the term of office of the retiring member or members is due to expire. If a vacancy occurs due to any other reason, it shall be filled as early as practicable.
(1) Save as otherwise provided, every election shall be held on such date or dates as the Collector may fix, and shall be conducted under his control by such Returning Officer and other officers, as may be appointed by the Collector in this behalf.
(2) In all cases where a society has to send a nominee as a member of the committee of any specified society, the election of such nominee shall be conducted under the control of the Collector of the District in which the registered office of the society sending the nominee is situated.
(3) In all cases, where the by-laws of a specified society authorise the Government nominee or the nominee of a Financing Agency to be a member of the committee of the society, no election need be held for such purpose.
(4) The voting at every election shall be by se
(1) The expenses of the holding of any election, including the payment of travelling allowances, daily allowances and other remuneration, if any, to the persons appointed to exercise the powers and perform the duties in respect of the elections, shall be borne by the specified society concerned.
(2) For this purpose, the Collector may call upon a specified society to deposit with him such amount as he considers necessary for the conduct of the election. Within eight days from the receipt of such direction from the Collector, the society shall deposit the specified amount with the Collector.
(3) The Collector shall maintain an account of the expenses incurred in connection with the election and within six months from the declaration of results of the election, render the same to the society concerned, and shall refund to the society the b
( 1) A person sh all be disqualified for being elected as, and for being a member of the committee of any specified society,--
1[(a) if he is a salaried employee of any society (other than a society of employees themselves) or holds any office of profit under any society, except when he holds or is appointed to the office of a Managing Director or any other office declared by the State Government by general or special ord er not to disqualify its holder or is entitled to be or is elected, appointed or co-opted to any reserved seat on the committee of a society under section 73BB;]
(b) if he has been convicted of an offence punishable under section 153 A or section 171 E or 171 F or sub -section 144 Q or clause (a) of sub -section ( 2 ) or sub section ( 3 ) of section 505 of the Indian Penal Code, or unless section 144 Q or clause (a) of
( 1) Every candidate at an election sh all keep a separate and correct account of all expenditure in connection with the election incurred or authorised by him.
( 2 ) The account shall contain such particulars as may be prescribed.
( 3 ) The total of the said expenditure sh all not exceed such amount as may be specified by the State Government, by general or special order, published in the official Gazette.
( 4) Every contesting candidate at an election sh all, within thirty days from the date of election of the returned candidate or, if there are more than one returned candidate at the election and the dates of their election are different, the later of those two dates, lodge with the Collector an account of hi s election expenses which sh all be true copy of the account kept by hi m under su
If the Collector is satisfied that a person,--
(a) has failed to lodge an account of election expenses within the time and in the manner required by the last preceding section, and
(b) has no good reason or justification for the failure,
the Collector shall, by order published, in the Official Gazette, declare him to be disqualified for being elected as, and for being, a member of the committee of any specified society, and any such person shall be disqualified for a period of three years from the date of the order.
The State Government may, for reasons to be recorded, remove any disqualification under this Chapter or reduce the period of any such disqualification.
The following shall be deemed to be corrupt practices for the purposes of this Chapter:--
(1) "Bribery", that is to say,--
(A) any gift offer or promise by a candidate or his agent of by any other person with the consent of a candidate or his election agent of any gratification, to any person whomsoever, with the object, directly or indirectly of including--
(a) a person to stand or not to stand as, or to withdraw or not to withdraw from being a candidate at an election; or
(b) an elector to vote or refrain from voting at an election, or as a reward to--
(i) a person for having so stood or not stood, or for having withdrawn or not having withdrawn his candidature; or
(1) Every officer, clerk, agent or other person who performs any duty in connection with the recording or counting of Votes at an election shall maintain, and aid in maintaining the secrecy of the voting and shall not (except for some purpose authorised by or under any law) communicate to any person any information calculated to violate such secrecy.
(2) Any person who contravenes the provisions of sub-section (1) shall, on conviction, be punished with imprisonment for a term which may extend to three months, or with fine, or with both.
(1) No person who is a Returning Officer or an Assistant Returning Officer or a Presiding or Polling Officer at an election, or an officer or clerk appointed by the Returning Officer or the Presiding Officer to perform any duty in connection with an election shall in the conduct or the management of the election do any act (other than the giving of vote) for the furtherance of the prospects of the election of a candidate.
(2) No such person as aforesaid, and no member of a Police Force, shall endeavour--
(a) to persuade any person to give his vote at an election, or
(b) to dissuade any person from giving his vote at an election, or
(c) to influence the voting of any person at an election in any manner .
(
(1) No person shall, on the date or dates on which a poll is taken at any polling station, commit any of the following acts within the polling station or in any public or private place within a distance of one hundred metres of the polling station, namely:--
(a) canvassing for votes; or
(b) soliciting the vote of any elector; or
(c) persuading any elector not to vote for any particular candidate; or
(d) persuading any elector not to vote at the election; or
(e) exhibiting any notice or sign (other than an official notice) relating to the election.
(2) Any person who contravenes the provisions of sub-section (1) shall, on conviction be punished with fine which m
(1) No person shall, on the date or dates on which a poll is taken at any poling station--
(a) use or operate within or at the entrance of the polling station, or in any public or private place in the neighbourhood thereof, any apparatus for amplifying or reproducing the human voice, such as a megaphone or a loud-speaker, or
(b) shout, or otherwise act in a disorderly manner, within or at entrance or the polling station or in any public or private place in the neighbourhood thereof, so as to cause annoyance to any person visiting the polling station for the poll, or so as to interfere with the work of the officers and other persons on duty at the polling station.
(2) Any person who contravenes wilfully aids or abets the contravention of, the provisions of sub-section (1) shall, on conviction,
(1) Any person who during the hours fixed for the poll at any polling station misconducts himself or fails to obey the lawful directions of the Presiding Officer may be removed from the polling station by the Presiding Officer or by any Police Officer on duty or by any person authorised in this behalf by such Presiding Officer.
(2) The powers conferred by sub-section (1) shall not be exercised so as to prevent any elector who is otherwise entitled to vote at a polling station from having an opportunity of voting at that station.
(3) If any person who has been so removed from a polling station re-enters the polling station without the permission of the Presiding Officer, heshall, on conviction, be punished with imprisonment for a term which may extend to three months, or with fine, or with both.
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If any person is guilty of any such corrupt practice as is specified in clause (3) or (4) of section 144-I at or in connection with an election, he shall, on conviction, be punished with fine which may extend to one thousand rupees.
(1) If any person to whom this section applies is without reasonable cause guilty of any act or omission in breach of his official duty; he shall, on conviction, be punished with fine which may extend to five hundred rupees.
(2) An offence punishable under sub-section (1) shall be congnizable.
(3) No suit or other legal proceedings shall lie against any such person for damages in respect of any such act or omission as aforesaid.
(4) The persons to whom this section applies are the Returning Officers, Assistant Returning Officers, Presiding Officers, Polling Officers and any otherpersons appointed to perform any duty in connection with the receipt of nomination or withdrawal of candidatures, or the recording or counting of votes at an election; and the expression "official duty" shall for the p
(1) Any person who at any election fraudulently takes, or attempts to take, a ballot paper out of a polling station, or wilfully aids or abets the doing of any such act, shall on conviction be punished with imprisonment for a term which may extend to one year, or with fine which may extend to five hundred rupees, or with both.
(2) If the Presiding Officer of a polling station has reason to believe that any person is committing or has committed an offence punishable under sub-section (1), a police officer to arrest such persons and may search such person or cause him to be searched by a police officer:
Provided that, when it is necessary to cause a woman to be searched, search shall be made by another woman with strict regard to decency.
(3) Any ballot paper found upon the person arrested on se
(1) A personshall beguilty of an electoral offence, if at any election he--
(a) fraudulently defaces or fraudulently destroysany nomination paper; or
(b)fraudulently defaces,destroys or removes any list, notice or other document affixed by orunder the authority of a Returning Officer; or
(c)fraudulently defaces orfraudulently destroys any ballot paper or the official mark on any ballot paperor any declaration of identity or official envelope used in connection withvoting by postal ballot; or
(d) without due authority supplies any ballot toany person or receives any ballot paper from any person or is in possession ofany ballot paper; or
(e)fraudulently puts intoany ballot box anything other than the ballot
The provisions of section 148 sh all apply to the offences under this Chapter, sub ject to the1[modification that] no prosecution for an offence punishable under this Chapter shall be lodged, except with the previous sanction of the Collector.
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1. These words were sub stituted for the portion beginning with the words "modifications that" and ending with; the figures and words " 1898 and that" by Mah. 20 of 1986 , s. 58.
144T. Disputes relating to elections to be submitted to the Commissioner1[or other specified officer]
( 1) Notwithstanding anything contained in section 91 or any other provisions of this Act, any dispute relating to an election sh all be referred to the Commissioner of the Division in which such election is held2[or to an officer not below the rank of Additional Commissioner of a Division authorised by the State Government in this behalf (hereinafter in this section either of them as the context may require is referred to as "the specified officer")].
( 2 ) Such reference may be made by an aggrieved party by presenting an election petition to3[the specified officer], within a period of two months from the date of declaration of the result of the election:
Provided that,3[the specified officer
A petitioner presenting an election petition under the last preceding section shall pay a deposit not exceeding Rs. 500 as the Commissioner may direct towards the costs for hearing the petition. Unless the petitioner deposits the same as aforesaid, the petition shall be summarily dismissed.Subject to such conditions as may be prescribed, at the time of deciding the petition, the Commissioner shall assess the costs of the hearing of the petition and shall require the petitioner or the respondents, or both as the case may be, to defray the whole or in such proportion as he thinks fit, the costs of the petition including the deposit so made. The Commissioner shall credit to Government such sum as he assesses as the cost to Government of hearing the petition (but not exceeding Rs. 500 in any case).
(1) An election petitionshall--
(a) contain a concise statement of the materialfacts on which the petitioner relies;
(b)set forth full particularsof any corrupt practice that the petitioner alleges, including as full astatement as possible of the names of the parties alleged to have committedsuch corrupt practice and the date and place of the commission of each suchpractice; and
(c)be signed by the petitioner and verified in the manner laid down in the Code ofCivil Procedure, 1908, for the verification of pleadings:
Providedthat, where the petitioner alleges any corrupt practice, the petitionshall also be accompanied by anaffidavit in support of the allegation of such corrupt practice and theparticulars thereof.
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A petitioner may, in addition to claiming a declaration that the election of all or any of the returned candidates is void, claim a further declaration that the himself or any other candidate has been duly elected.
Without prejudice to any other power to make rules contained else-where in this Act . the State Government may make rules consistent with this Act generally to provide for and to regulate all or any of the other matters relating to the various stages of the elections1[including preparation of list of voters].
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1. These brackets and words were deemed always to have been added by Mah. 3 of 1974 , s. 35.
1[ 144Y. Special provision for election of officers of specified societies
( 1) This section shall apply only to election of officers by members of committees of societies belonging to the categories specified in section 73-G.
( 2)2[After the election of the members of he committee and, where necessary, co-option or appointment, as the case may be, of members to the reserved seats under section 73- B] or whenever such election is due, the election of the officer or officers of any such society shall be held as provided in its bye-laws but any meeting of the committee for this purpose shall be presided over by the Collector or an officer nominated by him in this behalf.]
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1. Section 144 -Y was inserted, b y Mah. 3 of 1974 , s. 36
(1) No person, other than a society registered, or deemed to be registered, under this Act, and a person or his successor in interest of any name or title under which he traded or carried on business at the date on which this Act comes into force, shall without the sanction of the date on which this Act comes into force, shall without the sanction of the State Government, function, trade or carry on business under any name or title of which the word "co-operative", or its equivalent in any Indian language, forms part.
(2) Every person contravening the provisions of the foregoing sub-section shall, on conviction, be punished with fine which may extend to five hundred rupees.
Section 145 of the Maharashtra Co-operative Societies Act, 1960, is situated within Chapter XII, which deals with offences and penalties related to co-operative societies. It primarily addresses the misuse of the word "Co-operative" and the legal restrictions surrounding its use, aiming to prevent fraudulent or unauthorized representations that could mislead the public or undermine the integrity of registered societies.
Note: The references are based on the provided sources, primarily [Mount Industrial Estate VS State of Maharashtra], which offers detailed insights into the scope, enforcement, and legal interpretation of Section 145.
It shall be a offence under this Act, if--
(a) any me mber of a society transfers any property or interest in property in contravention of sub -section ( 2 ) of section 47 or any person knowingly acquires, or abets in the acquisition of, such property;
(b) any employer every director, manager, secretary or other officer or agent acting on behalf of such employer who, without sufficient cause, fails to comply with sub -section ( 2 ) of section 49; or
(c) a committee of a society or an officer or me mber thereof fails to invest funds of such society in the manner required by section 70; or
(d) any person, collecting sh are money for a society in formation, does not within a reasonable period deposit the same in the State Co-operative B ank, or a Centr
Every society, officer or past officer, me mber or past me mber, employee or past employee of a society, or any other person, who commits an offence under section 146 shall, on conviction, be punished,--
(a) if it is an offence under clause (a) of that section, with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both:
(b) if it is an offence under clause (b) of that section, with imprisonment for a term which may extend to1[three years], or with fine which may extend to five thousand rupees, or with both;
(c) if it is an offence under clause (c) of that section, with fine which may extend to five hundred rupees;
(d) if it is an offence under clause (e) of that section, with fine
( 1) No court inferior to that of a1[Metropolitan Magistrate or a Judicial Magistrate of the First Class], shall try and offence under this Act.
2[* * * * * *]
3[( 3 ) No prosecution under this Act shall be lodged, except with the previous sanction of the Registrar.]
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1. These words were sub stituted for the words "Presidency Magistrate or a Magistrate of the First Class" by Mah. 20 of 1986 , s. 61(a).
2 . Sub -section ( 2 ) was deleted, by Mah. 20 of 1986 , s. 61(b).
3. This sub -section was sub stituted by Mah. 7 of 1997 , s. 14.
1[ 148A. Contempt of Co-operative Courts and of Co-operative Appellate Court
( 1) If any person--
(a) when ordered by a Co-operative Court or the Co-operative Appellate Court to produce or deliver up any document or to furnish information, being legally bound so to do, intentionally, omits to do so; or
(b) when required by any such Court to bind himself by an oath or affirmation to state the truth, refuses to do so;
(c) being legally bound to state the truth on any sub ject to any such Court, refuses to answer any question demanded of hi m touching such subject by the Court; or
(d) intentionally offers any insult or causes any interruption to any such Court at any stage of its judicial proceeding;
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149. Maharashtra State Co-operative1 [Appellate Court]
2 [(1) A Court tobe called the Maharashtra State Co-operative Appellate Court is hereby constitutedto exercise the powers and to discharge the functions conferred on it by orunder this Act.]
(2) The 3 [Co-operative AppellateCourt] shall consist of the President, 4 [and such number ofother membersas the State Government may from time to time consider necessary, who possess]such qualifications as may be prescribed. 5 [The President and other membersshall holdoffice for such period or such different periods as may be prescribed.]
(5) Such Benchesshallconsist of two or more members.
(6) Where a matter is heard 7 [byan odd number of members constituting a Bench] the opinion of themajorityshallprevail
150. Review of orders of 1 [Co-operative Appellate Court]
(1) The 1 [Co-operative Appellate Court] may, either on the application of the Registrar, or on the application of any party interested, review its ownorder in any case, and pass in reference thereto such order as it thinks Just:
Provided that, no such application made by the party interested shall be entertained, unless the 1 [Co-operative Appellate Court] is satisfied that there has been the discovery of new and important matter of 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, n
151 .1[Co-operative Appellate Court] to have power of Civil Court
( 1 ) In exercising the functions conferred on it by or under this Act, the2[Co-operative Appellate Court] shall have the same powers as are vested in a Court in respect of,--
(a) proof of facts by affidavit,
(b) summoning and enforcing the attendance of any person and examining him on oath,
(c) compelling discovery or the production of documents, and
(d) issuing commissions for the examination of witnesses.
( 2 ) In the case of any such affidavit, any officer appointed by the2[Co-operative Appellate Court] in this behalf may administer the oath to the deponent.
&
( 1 ) An appeal against an ord er or decision1[under sections 4 , 9 , 11 , 12 , 13 , 14 , 17 , 18 , 19 , 21 21 A, 29 , 35 , 77 A,2[ 78 , 79 , 88 , and 105 including an ord er for paying compensation to a society] shall lie,--
(a) if made or sanctioned or approved by the Registrar, or the Additional or Joint Registrar on whom the powers of the Registrar are conferred, to the State Government,
(b) if made or sanctioned by any person other than the Registrar, or the Additional or Joint Registrar on whom the powers of the Registrar are conferred, to the Registrar.
3[( 2 ) Where an appeal against an ord er or decision to the Co-operative Appellate Court has been provided under this Act, it shall lie to the Co-operative Appellate Court].
( 3) An appeal un
[ 152A. Appeal against rejection of nomination paper at election
( 1 ) Notwithstanding anything contained in this Act or the rules or the bye-laws made thereunder, a person aggrieved by the rejection of nomination of a candidate at the election of a committee of any society, other than a society specified by or under section 73 G, may file an appeal to the Registrar within three days of the date of rejection of the nomination. The Registrar sh all dispose of such appeal within ten days of the date of receipt of such appeal and the decision of the Registrar in appeal sh all be final and no further appeal or revision sh all lie against the decision of the Registrar in such appeal.2[In the case of a society specified by or under section 73 G, an appeal sh all lie to the Divisional Commissioner who sh all dispose of such appeal within ten days from the date of receipt of such appeal an
In all cases in which it is provided under this Act that an appeal may be filed against any decision or order within a specified period, the appellate authority may admit an appeal after the expiry of such period, if the appellant satisfies the appellate authority that he had sufficient cause for not preferring the appeal within such period.
1[ 154. Revisionary powers of State Government and Registrar
( 1 ) The State Government or the Registrar, suo motu o r on an application, may call for and examine the record of any inquiry or proceedings of any matter, other than those referred to in sub -section ( 9 ) of section 149 , where any decision or ord er has been passed by any sub ordinate officer, and no appeal lies against such decision or ord er for the purpose of satisfying themselves as to the legality or propriety of any such decision or ord er, and as to the regularity of such processdings. If in any case, it appears to the State Government, or the Registrar, that any decision or ord er so called for sh ould be modified, annulled or reversed, the State Government or the Registrar, as the case may be, may, after giving the person affected thereby an opportunity of being heard, pass such ord ers thereon as to it or h
Section 154 of the Maharashtra Co-operative Societies Act, 1960, confers revisional powers on the State Government and the Registrar to examine certain orders and decisions passed by subordinate authorities. It provides a mechanism for oversight and correction of errors in administrative decisions related to cooperative societies, ensuring legality, fairness, and adherence to statutory procedures.
Section 154 grants the power of revision to the State Government or the Registrar against decisions or orders passed by subordinate authorities such as Deputy Registrar, Divisional Joint Registrar, or other officers under the Act. It specifies the scope, limitations, and procedural requirements for exercising revisional jurisdiction, including the deposit of 50% of the recoverable dues in certain cases.
Jurisdictional Scope - Section 154 confers a limited revisional jurisdiction primarily to correct illegal or jurisdictionally defective orders passed by subordinate authorities. It does not permit re-evaluation of factual findings unless law or jurisdiction is clearly violated. [Sayeeda Gulamrasul Sayed VS State of Maharashtra]
Single Exercise of Revision - The section clearly restricts the power of revision to a single exercise; once a revision is disposed of, no second revision is permissible unless specific statutory provisions or exceptional circumstances like fraud are involved. [Smt. Shireen Sami Gadiali VS Spenta Co. op. Hsg. Soc. Ltd. ]
Order or Decision - Only specific orders such as registration, transfer, or recovery certificates are revisable. Mere communication or non-decision does not attract revision powers. Orders like final sale confirmation are generally outside the scope unless fraud is proved. [Smt. Shireen Sami Gadiali VS Spenta Co. op. Hsg. Soc. Ltd. ], [Videocon Appliances Ltd. VS Maker Chambers V. Premises Co-op. Socy. Ltd. ]
Pre-deposit Requirement - For certain revision applications, deposit of 50% of the dues is mandatory, and non-compliance leads to rejection of the revision, emphasizing procedural compliance. [Dilawar Hakim Shah VS Special Recovery Officer, Chiplun Urban cooperative Bank Ltd], [Kausalya Sampat VS Vasant Sahakari Bank Ltd. & others]
Limitation Period - Revision applications must be filed within prescribed time limits, typically two months, with provisions for condonation of delay based on sufficient cause. Delay beyond this period without condonation leads to rejection. [Dilawar Hakim Shah VS Special Recovery Officer, Chiplun Urban cooperative Bank Ltd], [Kausalya Sampat VS Vasant Sahakari Bank Ltd. & others]
Procedural Fairness - Orders passed without proper notice or opportunity to the affected party violate principles of natural justice and are liable to be set aside in revision. Proper communication and adherence to procedural rules are essential. [Shantiniketan Ekta Co-op. Housing Society Ltd. VS Assistant Registrar Co-operative Societies], [Kondappa Sadashiv Kore and others VS State of Maharashtra and others]
Fraud and Collusion - Orders passed in collusion or involving fraud can be challenged in revision, and the revisional authority can set aside such orders even if they are otherwise within jurisdiction. [Rajesh B Yemkanmardi VS Praful J Padiya], [Ramesh VS State of Maharashtra]
Order of Sale Certificates - Sale confirmation and issuance of sale certificates, once final, are generally not revisable unless fraud or collusion is established, to uphold the finality of auction proceedings. [Ramesh VS State of Maharashtra], [Brihanmumbai Police Karmachari Sahakari Pat Sanstha Maryadit VS State of Maharashtra]
Appeals vs. Revisional Power - Section 154 is distinct from appellate remedies; it is a revisional jurisdiction meant for correction of illegalities, not for re-hearing factual disputes. The remedy of appeal under other provisions remains unaffected. [Kausalya Sampat VS Vasant Sahakari Bank Ltd. & others], [Varashree Narayan VS Sagar Tear Co-Operative Housing Society Limited]
Limitations on Second Revision - The law prohibits second revision against orders passed in the first revision, reinforcing the finality and efficiency of the revisional process. Only in exceptional cases like fraud, collusion, or jurisdictional error can this restriction be relaxed. [Paramount Co-op. Housing Society Ltd. VS Sita Rajab Sayani], [Harish Commercial Premises Co-op. Soc. Ltd. VS Varsha Dinesh Joshi]
Natural Justice and Fair Procedure - Orders passed without giving the affected party an opportunity to be heard violate natural justice and are subject to correction in revision. Proper notice and hearing are mandatory. [Kondappa Sadashiv Kore and others VS State of Maharashtra and others], [TAJNAGAR CO-OPERATIVE HOUSING SOCIETY VS FATEH MOHAMMED MAULANA]
Order of Registrar or Deputy Registrar - Orders passed by the Registrar or Deputy Registrar are subject to revision if they suffer from jurisdictional irregularities or procedural lapses, but not for mere errors of fact. [Kausalya Sampat VS Vasant Sahakari Bank Ltd. & others], [Varashree Narayan VS Sagar Tear Co-Operative Housing Society Limited]
Scope of Revision in Sale and Auction Cases - The revisional authority cannot normally interfere with confirmed sale or auction certificates unless fraud or collusion is established, to preserve the sanctity of final sale proceedings. [Ramesh VS State of Maharashtra], [Brihanmumbai Police Karmachari Sahakari Pat Sanstha Maryadit VS State of Maharashtra]
Procedural Validity - Orders passed in violation of procedural requirements such as non-issuance of notice, non-compliance with rules, or exceeding jurisdiction are liable to be set aside in revision proceedings. [Shantiniketan Ekta Co-op. Housing Society Ltd. VS Assistant Registrar Co-operative Societies], [Kondappa Sadashiv Kore and others VS State of Maharashtra and others]
Legal Remedies and Limitations - The statutory remedy under Section 154 is a valuable safeguard against illegal or irregular orders but must be exercised within prescribed limits and following procedural requirements. [Harish Commercial Premises Co-op. Soc. Ltd. VS Varsha Dinesh Joshi], [Kausalya Sampat VS Vasant Sahakari Bank Ltd. & others]
Constitutional Validity - The Supreme Court has upheld the constitutional validity of provisions like Section 154(2A), including the requirement of deposit, as reasonable restrictions on the right of appeal or revision, provided they are not arbitrary or oppressive. [Kausalya Sampat VS Vasant Sahakari Bank Ltd. & others], [Varashree Narayan VS Sagar Tear Co-Operative Housing Society Limited]
Revisional Orders and Natural Justice - Orders passed without proper application of principles of natural justice, such as hearing the parties, are vulnerable to revision and can be set aside. [Shantiniketan Ekta Co-op. Housing Society Ltd. VS Assistant Registrar Co-operative Societies], [Kondappa Sadashiv Kore and others VS State of Maharashtra and others]
Finality of Orders - Once an order of sale or registration is confirmed, the revisional authority's power to interfere is limited, primarily to cases of fraud, collusion, or jurisdictional error, to uphold the finality principle. [Ramesh VS State of Maharashtra], [Brihanmumbai Police Karmachari Sahakari Pat Sanstha Maryadit VS State of Maharashtra]
Summary:Section 154 of the Maharashtra Co-operative Societies Act, 1960, provides a limited but vital revisional jurisdiction to oversee subordinate orders, with restrictions on second revisions, mandatory procedural compliance, and scope confined to legality and jurisdictional errors. It balances the need for oversight with finality, ensuring that orders are corrected only when legal or procedural flaws are evident, thereby safeguarding the integrity of cooperative governance.
(1) There shall be a Council to be called the Maharashtra State Co-operative Council consisting of such number of members, including the Chairman and the Vice-Chairman, as the State Government may determine and nominate from time to time.
(2) The State Government shall appoint a Secretary of the Council.
(3) The functions of the Council constituted under sub-section (1) shall be as follows, namely:--
(a) to advise the State Government on all matters relating to co-operative movement;
(b) to review the co-operative movement and to suggest ways of co-ordinating the activities of co-operative societies in the State;
(c) to suggest ways and means to remove the difficulties experienced by the cooperative socie
(1) Unless otherwise provided by this Act, all sums due from a society or from an officer or member or a deceased member of a society as such to the Government, may be recovered according to the law and under the rules for the time in force for the recovery of arrears of land revenue.
(2) Sums due from a society to the Government and recoverable under the foregoing sub-section may be recovered, firstly from the property of the society, secondly in the case of a society of which the liability of the members is limited, from the members or past members or the estate of deceasedmembers subject to the limit of their liability, and thirdly, in the case of societies with unlimited liability, from the members or past members or estate of deceased members.
(3) The liability of past members or estate of deceased members shall in all cases be subj
( 1 ) The Registrar or any officer sub ordinate to hi m and empowered by hi m in this behalf1[or an officer of such society as may be notified by the State Government, who is empowered by the Registrar in this behalf] may, sub ject to such rules as may be made by the State Government, but without prejudice, to any other mode of recovery provided by or under this Act, recover--
(a) any amount due under a decree or order of a Civil Court obtained by a society;
(b) any amount due under a decision, award or ord er of the Registrar,2[Co-operative Court] or Liquidator or3[Co-operative Appellate Court];
(c) any sum awarded by way of costs under this Act,
(d) any sum ordered to be paid under this Act as a contribution to the assets of the Society;
The State Government may, by general or special ord er,1[* * * * * * *] exempt any society or class of societies from any of the provisions of this Act,2[or of the rules made thereunder,] or may direct that such provisions sh all apply to such society or class of societies with such modifications not affecting the sub stance thereof as may be specified in the order:
Provided that, no ord er to the prejudice of any society shall be passed, without an opportunity being given to such society to represent its case.
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1 . The words "to be published in the Official Gazette" were deleted by Mah. 27 of 1969 , s. 22(a).
2 . These words were Inserted by Mah. 27 of 1969 , s. 22(b).
158. Delegation of power ofRegistrar to 1 [certain authorities and officer]
The State Government may, by notification in the official Gazette, andsubject tosuch conditions (if any) as it may think fit to impose, delegate all or any ofthe powers of the Registrar under this Act to any federal authority or to anofficer thereof 2 [or to any other authority] 3 [or to any officer of theZilla Parishad constitutedunder the Maharashtra Zilla Parishads andPanchayat Samitis Act, 1961 and such 4 [authorities and] officerof the Zilla Parishadshall work under the general guidance,superintendence and control of the Registrar] specified in the notification.
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1. These words weresubstitutedfor the words "federal authorities" by Mah. 20 of 1986, s. 66(c).
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(1) No society shall open a branch or a place of business outside the State of Maharashtra, and no co-operative society registered under any law in any other State shall open a branch or a place of business in the State of Maharashtra, without the permission of the Registrar.
(2) Every co-operative society registered under any law in any other State, and permitted to open a branch or a place of business in the Maharashtra State under the foregoing sub-section, or which has a branch or a place of business in the Maharashtra State 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 su
(1) On the election of a new committee and its Chairman, the retiring Chairman, in whose place the new Chairman is elected, shall hand over charge of the office of the committee and all papers and property, if any of the society in possession of the committee or any officer thereof, to the new Chairman of the committee.
(2) If the retiring Chairman fails or refuses to hand over charge, or to hand over the papers and property of the society as aforesaid, the Registrar, or any person empowered by him in this behalf, may by order in writing direct him to forthwith hand over such charge and property.
(3) If the retiring Chairman to whom a direction has been issued as aforesaid does not comply with such direction, he shall on conviction be punished with simple imprisonment which may extend to one month or with fine which may extend to five hu
1[ 160A. Members of State Legislature and certain local authorities not to be remunerated while holding certain offices in societies
Notwithstanding anything contained in this Act or the rules or by laws made thereunder, a me mber of the State Legislature or of a committee under the Hyderabad District Municipalities Act, 1956 , or a me mber of a Zilla Parishad or Panchayat Samiti under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1962 , while holding the office of Chairman or me mbers of the committee of a society to which appointment is made by the State Government, or the office of liquidator or the office of nominee of the Registrar whether appointed individually or to a board of nominees, sh all not be entitled to receive any remuneration other than travelling allowance, the daily allowance or such other allowance which is paid to the holder of any such office for
1[ 160B . Members of committees not entitled to travelling allowance, daily allowance, etc . a t a rate higher than the maximum prescribed
Subject to the provisions of section 160 A, no me mber of the committee of any society sh all be entitled to receive from the society the travelling allowance, the daily allowance or such other allowances or fees which are paid to the me mbers for attending me etings of its committee, or for performing any other functions as such me mbers, at a rate higher than the maximum rate prescribed in this behalf and different maximum rates may be prescribed for different societies or class of societies or for different purposes.]
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1 . Section 160B was inserted by Mah. 27 of 1969 , s. 23.
1[ 161 . Registrar and other officers to be public servants
The Registrar, a person exercising the powers of the Registrar, an officer as defined in clause ( 20 ) of section 2 , or a person appointed as an Official Assignee under sub -section ( 2 ) of section 21 A, or as an administrator under section 77 A or 78 , or a person authorised to seize books records or funds of a society under sub -section ( 3 ) of section 80 , or to audit the accounts of a society under section 81 or to hold an inquiry under section 83 , or to make an inspection under section 84 , or 89 A or to make an ord er under section 88 or a person appointed as a me mber constituting a Co-operative Court under section 91 A or the Cooperative Appellate Court under section 149 or a Liquidator under section 103 , sh all be deemed to be public servants within the me aning of section 21 of the Indian Penal Code.]
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No suit, prosecution or other legal proceeding shall lie against the Registrar or any person subordinate to him or acting on his authority, in respect of anything in good faith done, or purported to be done by him by or under this Act.
(1) Save asexpressly provided in this Act, no Civil or Revenue Courtshall haveany jurisdiction in respect of--
(a) the registration of a society or its by-laws,or the amendments of its by-laws, or the dissolution of the committee of asociety, or the management of the society on dissolution thereof; or
(b)any dispute required tobe referred to 1 [the Co-operative Court,] for decision;
(c) any matter concerned with the winding up anddissolution of a society.
(2) While a society isbeing wound up, no suit or other legal proceedingrelating to the business of such society shall be proceeded with orinstituted against the society or any member thereof, or anymatter touching the affairs of the society, except by leave of the Registrar,and subject to such term
No suit shall be instituted against a society, or any of its officers, in respect of any act touching the business of the society, until the expiration of two months next after notice in writing has been 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.
(1) The State Government may for the whole or any part of the State and for any society or class of societies, make rules for the conduct and regulation of the business of such society or class of societies, and for carrying out the purpose of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may--
1 [(i) subject to the provisions of section 3, prescribe the designation of officers who shall exercise powers vested in the Registrar;]
(ii) prescribe the forms to be used and the conditions to be complied with it, the making of applications for the registration of a society under section 8 and the procedure in the matter of such application;
(iii) prescribe the matter in respect of which a society ma
The Maharashtra Co-operative Societies Act, 1960, was enacted to regulate the functioning of co-operative societies in the state of Maharashtra. Section 165 specifically empowers the State Government to formulate rules for the conduct of these societies, ensuring that they operate within a structured legal framework.
Section 165 of the Maharashtra Co-operative Societies Act, 1960, allows the State Government to make rules for the conduct of co-operative societies. This includes provisions for the governance, management, and operational procedures of these societies.
The scope of Section 165 is broad, allowing for the creation of rules that can address various aspects of co-operative society operations, including governance, membership, financial management, and dispute resolution.
While Section 165 itself does not prescribe specific punishments, it provides the framework within which penalties for non-compliance with the rules can be established. The penalties are typically outlined in the bye-laws of the respective societies.
This commentary provides a comprehensive overview of Section 165 of the Maharashtra Co-operative Societies Act, 1960, highlighting its significance in the governance of co-operative societies in Maharashtra.
(1) The Bombay Co-operative Societies Act,1925, in its application to the State of Maharashtra ishereby repealed:
Providedthat, the repeal shallnot affect the previous operation of the Act so repealed and anything done oraction taken or deemed to have been done or taken (including any; appointmentor delegation made, application or other document filed, certificate of registrationgranted, agreements executed, notification, order, direction or notice issued, regulation, form orby-law framed, rule made or deemed to be made or proceeding instituted beforeany Registrar, arbitrator, liquidator or tribunal orother officer, authority or person) byor under the provisions of that Act, shall, in so far as it is not inconsistent with theprovisions of this Act, be deemed to have been done or taken under thecorresponding provisions of this Act, and shall continue in force unless and until supers
For the removal of doubt, it is hereby declared that the provisions of the Companies Act, 1956, shall not apply to societies registered or deemed to be registered, under this Act.
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