The Gujarat Co-operative Societies Act, 1961
Gujarat Act No. X of 1962
1st March, 1962
An Act to consolidate and amend the Law relating to co-operative societies in the State of Gujarat.
Read full Act(1) This Act may be called the Gujarat Co-operative Societies Act, 1961.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.
In this Act, unless the context otherwise requires,-
(1) For carrying out the purposes of this Act, the State Government shall appoint a person to be the Registrar of Co-operative Societies for the State.
(2) To assist the Registrar in his functions under this Act, the State Government may appoint such number of Additional Registrars, Joint Registrars, Deputy Registrars, Assistant Registrars and other persons with such designations as it may think fit.
(3) The State Government may, by general or special order, confer on a person or persons appointed under sub-section (2) all or any of the powers of the Registrar under this Act.
(4) Every person appointed under sub-section (2) shall work under the general guidance, superintendence and control of the Registrar.
A society, which has as its object the promotion of the economic interests or general welfare of its members, or of the public, in accordance with 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 it shall not be registered if, in the opinion of the Registrar, it is economically unsound, or its registration may have an adverse effect upon any other society, or it is opposed to, or its working is likely to be in contravention of public policy.
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 (each of such persons being a member of different family), who are qualified to be members under this Act and who reside in the area of operation of the society.
(1A) In case of the society in co-operative credit structure registered under sub-section (1), the society shall have power to decide their respective area of operation without any restrictions.
(2) No society with unlimited liability shall be registered, unless all persons forming the society reside in the same town or village, or in the same group of villages.
(3) No Federal society shall be registered, unless it has at least five societies as its members.
(4) Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act.
(5) The word “limited” or its equivalent “unlimited” shall be the last word in the name of
Notwithstanding anything contained in this Act, the State Government may, by special order in each case, exempt, subject to such conditions, if any, as it may impose, any society from any of the requirements of this Act as to registration.
(1) For the purposes of registration, an application shall be made to the Registrar in the prescribed form, and shall be accompanied by four copies of the proposed bye-laws of the society.
(2) The person by whom, or on whose behalf, such application is made, shall furnish such information in regard to the society, as the Registrar may require.
(3) The application shall be signed—
No signature to an application on behalf a society shall be valid unless the person signing is member of the committee of such society, and is authorized by the committee by resolution to sign on its behalf the application for registration of the society and its bye-laws; and a copy of such resolution is appended to
(1) On receipt of an application for registration from a society—
(2) When a society has been provisionally registered the Registrar shall, on its compliance with the
The Registrar shall maintain a register in the prescribed form of all societies registered or deemed to be registered under this Act.
When any question arises whether for the purpose of the formation, registration or continuance of a society or the admission of a person as member of a society under this Act a person is an agriculturist or a non-agriculturist, or whether any person is a resident in a town or village or group of villages, or whether two or more villages shall be considered to form a group, or whether any person belongs to any particular tribe, class or occupation, the question shall be decided by the Registrar.
The Registrar may classify all societies in such manner, and into such classes, as he thinks fit; and the classification of a society under any head of classification by the Registrar shall be final.
(1) No amendment of the bye-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.
(2) If the Registrar is satisfied that the amendment so forwarded is not contrary to this Act or the rules, he may register the amendment:
Provided that no order refusing an amendment shall be passed except after giving the society an opportunity of being heard.
Provided further that the application for registration of amendment of bye-laws of a society shall be disposed of within sixty days from the date of its receipt.
(3) When the Registrar registers an amendment of the bye-laws of a society, he shall issue to the society copy of the amendment certified by him, which shall be conclusive evidence of its registration.
(4) Where the Registrar refuses to register
(1) If it appears to the Registrar that an amendment of the bye-laws except in respect of the name or objects of a society is necessary or desirable in the interest of such society, he may call upon the society, in the prescribed manner, to make the amendment within such time as he may specify.
(2) If the society fails to make the amendment within the time so specified, the Registrar after giving the society an opportunity of being heard and with the prior approval of the State Co-operative council, may register the amendment, and shall thereupon issue to the society a copy thereof certified by him.
(3) 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 so amended shall be binding on the society and its members.
(1) Subject to the provisions of the rules 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 of any of the persons who have ceased to be members; and any legal proceedings pending before any person, authority or court may be continued by or against the society, under its new name.
(2) When 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 passing a resolution and by amending 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 investment in its shares, and his deposits and loans, and demanding the payment of his other dues, if any.
(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, shall not be registered or take effect until, either—
(1) Subject to the provisions of the rules and the previous sanction of the Registrar a society may, by resolution passed by two-thirds majority of the members present and voting at a special general meeting held for the purpose, decide—
(2) Where the amalgamation, transfer, division or conversion referred to in sub-section (1) involves a transfer of the liabilities of society to any other society, the Registrar shall not sanction the resolution of the society unless he is satisfied that—
(1) Where the Registrar is satisfied that it is essential in the public interest or in the interest of co-operative movement, or for the purpose of securing proper management of any society that two or more societies should be amalgamated or that any society should be re-organized, then, notwithstanding anything contained in section 17 but subject to the provisions of this section, the Registrar may, after consulting such federal society as may be notified in this behalf by the State Government by order published in the Official Gazette, provide for the amalgamation of those societies into a single society or, as the case may be, for the re-organization of that society, with such constitution, property rights, interests and authorities, and such liabilities, duties and obligations as may be specified in the order. Such order may also provide for the constitution of the committee of management or any other committees of the new amalgamated, or re-organized society, the persons who sh
Where two or more societies have been amalgamated, or a society has been divided or converted, the registration of such societies or society, as the case may be, shall be cancelled on the date of registration of the new society or societies so formed.
Where a compromise or arrangement is proposed—
(1) 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 or it has not commenced business within a reasonable time of its registration or has ceased to function.
(2) An order made under sub-section (1) shall be published in the Official Gazette.
(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.
(1) Any two or more societies may, with the prior approval of the Registrar, by resolution passed by three-fourths majority of the members present and voting at a general meeting of each such society, enter into partnership for carrying out any specific business or businesses, provided that each member of each society has had clear ten days written notice of the resolution, and the date of the meeting.
(2) Nothing in the Indian Partnership Act, 1932 and the Indian Companies Act, 1956 shall apply to such partnership.
(1) Subject to the provisions of section 25, no person shall be admitted as member of a society except the following, that is to say—
Provided that, the provisions of clause (a) shall not apply to an individual seeking admission to a society exclusively formed for the benefit of students of a school or c
(1) Where a person becomes a member of any society on his making a declaration as required by the bye-laws of the society or otherwise and such declaration as found to be false, then such person shall be disqualified to continue as a member of the society.
(2) Where a person continues as a member of any society notwithstanding the disqualification incurred by him under sub-section (3) of section 22 or under sub-section (1) he shall be removed from the society by the Registrar:
Provided that the Registrar shall, before making an order of removal give the person an opportunity of being heard.
(1) No society shall, without sufficient cause, refuse admission to membership to any person duly qualified therefor under the provisions of this Act, the rules and bye-laws of such society.
(2) Where the society does not communicate any decision to a person within a period of three months from the date of receipt by the society of his application for admission, such person shall be deemed to have become the member of such society on the expiry of the aforesaid period of three months.
(3) Where a person is refused admission as a member of a society, the decision (together with the reasons therefor) shall be communicated in writing to such person by the society within three months from the date of receipt by the society.
(4) Any society aggrieved by the admission of a member under sub-section (2) or any person aggrieved by the decision of the society refusing him its membership under sub-section (3) may appeal to the Registrar.
(5) An appeal under sub-sect
(1) notwithstanding anything contained in section 22, a society of such class as may be prescribed may admit any person as a nominal, associate, or sympathiser member :
Provided that the total number of associate and sympathiser members in a society shall not exceed ten per cent of the total number of members thereof.
(2) A nominal, associate or sympathizer member shall not be entitled to any share, in any form whatsoever, in the assets or profits of the society. Subject to the provisions of Sub-section (6) of section 28 a nominal, associate or sympathizer member shall have such privileges and rights of a member and be subject to such liabilities of a member, as may be specified in the bye-laws of the society. A person shall cease to be a member of a society on his resignation from the membership thereof being tendered in writing to the society and accepted by the society 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 expulsion from the society :
89[(1)] 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 bye-laws of such society.
81(2) The person who has committed a default and remains as such defaulter in making repayment of loan or interest thereon for a period of one year from the due date of repayment of such loan or interest or installment shall not be entitled to exercise voting rights of a member of a society till all such repayments are made.]
(1) No member of any society shall have more than one vote in its affairs :
(2) Where a share of a society is held jointly by more than one person, each such person shall have, in the absence of preceding person or persons, a right to vote :
(3) A society which has invested any part of its funds in the shares of another society, may appoint one of its members to vote on its behalf in the affairs of that other society, and accordingly such member shall have the right to vote on behalf of the first society :
(4) A company or any other body corporate constituted under any law for the time being in fo
In any society, no member other than the State Government or a society, shall hold more than such portion not exceeding one fifth of the total share capital of the society as may be prescribed :
(1) (2)
(1) Subject to the provisions of section 29 and sub-section (2) a transfer of, or charge on, the share or interest of a member in the capital of a society shall 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 any society, or any part thereof, unless,-
(3) On the death of a member of a society, the society shall subject to the provisions of sub-section (2) transfer his share or interest in the society to a person or persons nominated by such member in accordance with the rules or, in the absence of such nomination to such person as may appear to the Committee to be the heir or legal representative o
Notwithstanding anything contained in sub-section(2), any such nominee, heir or legal representative, as the case may be, may require the society to pay to him the value of the share or interest of the deceased member, ascertained as prescribed.
(4) A society may pay all other moneys due to the deceased member from the society to such nominee, heir or legal representative, as the case may be.
(5) All transfers and payments duly made by a society in accordance with the provisions of this section, shall be valid and effectual against any demand made upon the society by any other person.
(6)
Where a person has ceased to be member of a society under section 26.
(2) Where society is ordered to be wound up under any provisions of the Act, then the liability under clause (b) of sub-section (1) of a person, who has ceased to be a member thereof within three years immediately preceding the date of order of winding up, shall c
Notwithstanding anything contained in 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 his dues to Government or to a local authority.
(1) Every member of a society shall be entitled to inspect, free of cost, at the society’s office during office hour, or any time fixed for the purpose by the society, a copy of the Act, the rules, and the bye-laws, the last audited annual balance sheet, the profit and loss account, a list of the members of the committee, a register of members, the minutes of general meetings, 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 sub-section (1)
(1) A society may, by resolution passed by three-fourths majority of all the members present and voting at a general meeting of members held for the purpose, expel member for acts which are detrimental to the proper working of the society :
(2) No member of a society who has been expelled under sub-section (1) shall be eligible for re-admission as a member of that society, or for the admission as member of any other society, for a period of two years f
A Society on its registration shall be a body corporate by the name under which it is registered, with perpetual succession and a common seal and with power to acquire, hold and dispose of property, to enter into contract, 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 society shall 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,-
(2) The register shall be prima facie evidence of the date on which any person was admitted to membership, and of the date on which he ceased to be a member.
Every society shall keep, at the registered address of the society, a copy of this Act and the rules, and of its bye-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 recorded in every case where, and to the same extent to which, the original entry would, if produced, have been admissible to prove such matter.
(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 sub-section (1) or to appear as a witness to prove the matters, transactions and accounts therein recorded, except by order of the Court or a Judge made for special cause.
Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act, 1908 shall apply—
The State Government, by notification in the Official Gazette may, in the case of any society or class of societies, remit—
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 bye-laws of the society.
Notwithstanding anything contained in this Act or the rules or bye-laws made thereunder, the committee of every society in a co-operative credit structure shall have freedom to decide its financial and internal administrative matters, especially:-
(1) No society shall make a loan to any person other than a member, or on the security of its own shares, or on the security of any person who is not a member :
(2) Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit.
(3) Notwithstanding anything contained in this Act, no person or group of persons other than a member or members shall be eligible to borrow from or make deposit in a Primary Agricultural Credit Co-operative Society.
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.
In respect of any debt due to a society by any member thereof, the society shall have a charge upon the share or interest of such member in the capital of the society, upon the deposits of such member with the society and upon any dividend, rebate or profits payable to such member; and the society may set off any sum credited or payable to such member in or towards the payment of any such debt:
(1) Notwithstanding anything contained in any other law for the time being in force, but subject to any prior claim of Government in respect of land revenue or any money recoverable as land revenue and to the provisions of sections 60 and 61 of the Code of Civil Procedure, 1908,—
(1) Notwithstanding anything contained in sub-sections (2) and (3), a society, which has as one of its objects the disposal of the produce of its members, may provide in its bye-laws, or may otherwise contract with its members,—
Notwithstanding contained in this Act or in any other law for the time being in force, —
(1) A member of a society may execute an agreement in favour of the society, providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement, and to pay to the society the amounts so deducted in satisfaction of any debt or other demand of the society against the member.
(2) On the execution of such agreement, the employer shall, if so required by the society by a requisition in writing and so long as the society does not intimate that the whole of such debt or demand has been paid, make the deduction in accordance with the agreement notwithstanding anything to the contrary contained in the Payment of Wages Act, 1936 and pay the amount so deducted to the society, as if it were a part of the wages payable by him as required under the said Act on the day on which he makes payment.
In making such deduction and payment, it shall not be open to the employer to question the vali
The State Government may subscribe directly to the share capital of a society with limited liability:
(2) The share capital subscribed by the State Government under sub-section (1) shall not be returned to the State Government by a society except with the previous sanction of the Government.
The State Government may, by appropriation made by law, provide moneys to a society for the purchase directly or indirectly, of shares in other societies with limited liability. A society to which moneys are so provided for the aforesaid purpose is hereinafter in this Act referred to as an “Apex society”.
(1) An Apex society shall, with the moneys provided under section 52 establish a Fund to be called the “Principal State Partnership Fund”.
(2) An apex society shall utilize the Principal State Partnership Fund for the purpose of
(1) A central society which is provided with moneys by an Apex society from the Principal State Partnership Fund shall, with such moneys establish a Fund to be called the “Subsidiary State Partnership Fund”.
(2) A Central society shall utilize the Subsidiary State Partnership Fund for the purpose of
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.
Where any shares are purchased in a society by—
then in the event of the winding up of such society the liability in respect of such shares shall be limited to the amount paid in respect of such shares.
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 out of the Principal State Partnership Fund is wound up or 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 Government shall be entitled to any moneys received by the Apex society in liquidation proceedings or on dissolution; as the case may be.
(2) If a society in which shares are purchased out of 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 credited to the Principal State Partnership Fund.
(1) All moneys received by an Apex society in respect of the redemption of shares of other societies purchased out of the moneys in the Principal State Partnership Fund, or by way of dividends or otherwise or by way of interest, dividend or otherwise on the balance of that fund shall be credited to that Fund.
(2) All moneys received by a Central society in respect of the redemption of shares of primary societies purchased out of the moneys in the Subsidiary State Partnership Fund, or by way dividends or otherwise or by way of interest, dividend or otherwise on the balance of that fund, 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 Government.
If an Apex society which has established a Principal State Partnership Fund is wound up or dissolved, all moneys at the credit of, or payable to that fund, shall be paid to the State Government.
If a Central society which has established a Subsidiary State Partnership Fund is wound up or dissolved, all moneys at 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 53.
Any amount at 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—
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,—
The provisions of section 52 to 62 (both inclusive) in this Chapter shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
(1) No part of the funds or assets of a society, other than the dividend equalization fund, if any, and the net profits thereof, shall be paid by way of rebate or dividend or otherwise distributed, to its members:
(1) No honorarium shall be paid out of the funds and assets of a society, other than the net profits and such honorarium shall not exceed the prescribed limit.
(2) A society earning profit, shall calculate its annual net profits by deducting from the gross profits for the year, all accrued interest which is overdue for more than six months, establishment charges, contributions, if any, towards the provident fund and gratuity fund of its employees, interest payable on loan and deposits, audit fees, working expenses including repairs, rents, taxes and depreciation, and after providing for or writing off bad debts and losses not adjusted any fund created out of profits. A society may, however, add to the net profits for the year, interest accrued in the preceding years, but actually recovered during the year. The net profits thus arrived at, together with the amount of profits brought forward from the previous year shall be available for appropriation.
A society may appro
(1) Every society which does or can, derive a profit from its transactions, shall maintain a reserve fund.
At least one-fourth net profits of the society each year, shall be carried to the reserve fund; and such reserve fund may be used in the business of the society or may, subject to the provisions of section 71, 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 :
(1) Every society which earns profit from its transactions, shall maintain a Bad Debt Reserve Fund.
(2) Every year, the society shall carry at least fifteen per cent. of the net profit to the Bad Debt Reserve Fund.
(3) All debts which are found to be irrecoverable and certified as such by a certified auditor and expenses incurred in recovering the same shall first be written off against the Bad Debt Reserve Fund.
(4) Notwithstanding anything contained in section 67-
No society shall pay dividend to its members at a rate exceeding the rate as may be prescribed by the State Government, by notification in the Official Gazette, from time to time for all societies generally or a class of societies in particular:
(1) Every society which declares, out of the current year’s profit, a dividend to its members at a rate of 3 per cent. or more, shall contribute towards the education fund of the Gujarat State Co-operative Union at such rate as may be prescribed.
(2) No society, liable to contribute towards the education fund, shall pay a dividend its members, unless the said contribution is made to the Gujarat State Co-operative Union within two months from the date on which its accounts are adopted by the general body of members at its annual general meeting.
(3) An officer willfully failing to comply with the requirements of this section, shall be personally liable for making good the amount to the Gujarat State Co-operative Union.
(4) The provisions of sub-sections (1) to (3) shall not apply to the societies in the co-operative credit structure.
Explanation:- In this section the expression “Gujarat State Co-operative Union” means federal society established for the St
After providing for the reserve as provided in section 67 and for the bad debt reserve fund as provided in section 67A and for the educational fund as provided in section 69, a society may set aside a sum not exceeding twenty per cent. of its net profits, and utilize from time to time, with the approval—
the whole or part of such sum in contributing to any prescribed co-operative purpose, or to any charitable purpose within the meaning of section 2 of the Charitable Endowments Act, 1890, or to any other public purpose.
(1) A society may invest, or deposit its funds,—
(1) Any society establish for its employees a provident fund, into which shall be paid the contributions made employees and by the society. Such provided 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 section 71 and shall be administered in the prescribed manner.
(2) Notwithstanding anything contained in sub-sections (1) a provident fund established by a society to which the Employees Provident Funds Act, 1952, is applicable, shall be governed by that Act.
Subject to the provisions in this Act and 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 bye-laws:
Provided that, where the bye-laws of a society provide for the election of delegated of such members, the authority may vest in the delegates of such members elected in the prescribed manner, and assembled in general meeting.
Notwithstanding anything contained in this Act or the rules for the time being in force, the societies in the co-operative credit structure shall be at liberty to affiliate or disaffiliate with any federal society of its choice provided a resolution approving such affiliation or disaffiliation with a federal society is passed in the annual general meeting held for the purpose with three-fourth majority of total members, and subject to the rules as may be prescribed and the guidelines issued by the Reserve Bank of India.
*[(1)] The management of every society shall vest in a committee, constituted in accordance with this Act, the rules and bye-laws, which shall exercise such powers and perform such duties as may be conferred or imposed on it respectively by this Act, the rules and the bye-laws :
u[Provided that a Committee of a society falling in any of the categories mentioned in sub-section (1) of section 74C shall not be so constituted as to require a certain part or number, of its members to periodically retire by rotation and any bye- law of such society containing such provision shall with effect on and form the XIX of 1952.
(1) No person shall, at the same time, be or continue to be, a designated officer of more than one society falling in Category I or Category II or 1s[Category Ill or Category IV] of the categories mentioned below; and shall not be or continued to be a designated officer in more than two societies in the aggregate [in the four categories]:—
On the committee of such society or class of societies as the State Government may, by general or special order direct, two seats shall be reserved as follows namely :—
Where any of such reserved seats is not filled by election or appointment the committee shall fill such seat by co-option of a member on the committee 7*[form amongst other members].
Explanation.— For the purposes of this section, —
(1) The election of the members of the committees and of the officers by the conduct of elections committees, of the societies of the categories mentioned below shall be subject to the provisions of Chapter XI-A and shall be conducted in the manner laid down by or under that Chapter :—
(1) Where in respect of any society including a society existing immediately before the commencement of the Gujarat Co-operative Guj. Ord. 1 of Societies (Ahmedabad) Ordinance, 1982 a new committee of management is, for any reason whatsoever, not elected **[before] the expiry of the term of office of members of a committee of management of such society, (not being a committee referred to in section 80A) *“"[or having been elected not functioning] the Registrar may by an order in writing, appoint a person or a committee of persons to be the custodian of the society until a new committee of management is elected or, as the case may be, starts functioning.
341(1A) The Registrar shall hold election of such society within a period of two months and the Committee shall be constituted before the expiration of that period.
(2) The custodian so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have powers to exer
(1) Notwithstanding anything contained in the bye-laws of a society— no society shall prescribe nor member of a committee thereof shall be entitled fees, and traveling and daily allowances while touring on public business, at rates exceeding such rates as may be prescribed, and a member of a committee of a society shall, in relation to touring on public business be subject to such conditions and limitations as may be prescribed and different rates, conditions and limitations may be prescribed in relation to members of committees of different societies or class of societies.
Explanation —For the purposes of this section “touring on public business” includes—
The qualification for the appointment of a manager, secretary, accountant or any other officer or employees of a society and the conditions of service of such officer and such officers and employees shall be such as may, from time to time, be prescribed :
(1) (2)
(1) If, in the opinion of the Registrar, any officer makes persistent default or is negligent in performance of the duties imposed on him by this Act or the rules or the bye-laws or does anything which is prejudicial to the interest of the society or where he stands disqualified by or under this Act the Registrar may, after giving the officer an opportunity of being heard, by order remove such officer and direct the society to elect or appoint a person or a qualified member in the vacancy caused by such removal and the officer so elected or a appointment shall hold office so long only as the officer in whose place he is elected would have held if the vacancy had not occurred.
(2) The Registrar may, by order, direct that the officer so removed shall be disqualified to hold or to contest election for any office in the society from which he is removed in any other society for a period not exceeding four years form the date of the order and such officer shall disqualified accordi
(1) Every society shall, within a period of three months next after the date fixed for drawing up its accounts for the year under the rules for the time being in force, call a general meeting of its members :
(2) At every annual general meeting a society, the committee shall lay before the society a balance sheet and profit and loss account for the year in the manner, prescribed by the Registrar by general or special order for any class or
(1) A special general meeting may be called at any time by a majority of the committee, and shall be called by the committee within one month-
(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 period not exceeding three years, as he may specify in such order, and it the officer is a servant of the society, he may impose on him a penalty not exceeding one hundred rupees. Before makin
(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 organization 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.
No act done in good faith by any person appointed under this Act, the rules or 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 there under.
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.
Where the State Government has subscribed to the share capital of a society, directly or through another society, or has guaranteed the repayment of the principal of and payment of intere
(1) where on the expiry of the term of office of the members of any committee of management nominated by the State Government, or the Registrar, the State Government or, as the case may be, the Registrar is of the opinion that it is necessary or expedient so to do, it or he may, by an order published in the Official Gazette, —
(2) The custodian so appointed shall, subject to the control of the Registrar and to such instructions as he may, from time, give, have powers to exercise all or any of the functions of the Committee, and take all such actions as may be required in the interest of the society. All acts done or purported to be done by the custodi
If in respect of a committee of a Society having the Registrar as its member, the State Government and in respect of a Committee of a Society which does not have the Registrar as its member, the Registrar, is of the opinion that the Committee—
then subject to the rules the State Government or, as the case may be the Registrar may, after giving the committee an opportunity of stating its objection, if any, within fifteen days form the date of issue of notice, by order in writing, remove the Committee; and appoint—
(1) It shall be the duty of every society to keep the prescribed 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 such records to the Registrar as the Registrar may by order direct from time to time; and the officer or officers of the society shall be bound to comply with the 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 in compliance with an order made under sub- section (1) and such section is not taken—
(1) Where the Registrar is satisfied that the books and records of a society are likely to be suppressed, tampered with or destroyed or the funds and property of a society are likely to be mis-appropriated or mis- applied or the officer or the person in possession of the records, funds and property, the Registrar may issue an order directing the person duly authorized by him in writing to seize and take possession of such books and record, fund and property of the society, and the officer of the society responsible of the custody of such books, records, funds and property or person in possession of the same shall give delivery thereof forthwith to the person so authorized.
If the officer of the society or person in possession does not so give the delivery, then, without, prejudice to any other action that may be taken against such officer, person or society under the provisions of this Act, the Registrar or the person authorized by him may apply to the Executive Magistrate wi
If the result of the audit held under section 84 discloses any defects in the working of the society, the society shall within three months form the date of the 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 and within such time as may specified therein to remedy the defects. Where society concerned is a member of a federal society, such order shall be made after consulting the federal society.
(1) The Registrar may of his own motion himself, or by a person duly authorized by him writing this behalf, hold an inquiry into the constitution, working and financial conditions of a society.
(2) The Registrar shall hold such an inquiry—
(3) Every officer, member and past member of the society in respect of which an inquiry is held, and any other person who is in possession of information, books and papers relating to the society,. Shall on being so required furnish such information as in his possession, and produce all books and paper relating to the society which are in his custody or power, and otherwise give to the
On the application of a creditor of a society who,-
the Registrar may, if he thinks it necessary, inspect or direct a person authorized 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 such inspection to the applicant, and to the society whose books have been inspected.
(3) It shall be competent for the Registrar to withdraw any inspection from the officer to whom it is entrusted, and to carry out to the inspection himself or entrust it to any other person as he deems fit.
(1) (a) The Registrar or the person authorized by him in this behalf shall have the right to inspect the books of any society and shall have free access to the books, accounts, documents, securities, cash and other properties belonging to, or in the custody of, the society.
(1) Where in the course of an audit under section 84 or an inquiry under section 86 or an inspection under section 87 or section 88, it is brought to the notice of the Registrar that a paid officer or servant of a society has committed or has been otherwise responsible for misappropriation, breach of trust or other offence, in relation to the society, the Registrar may, if in his opinion, there is prima facie evidence against such paid officer or servant and the suspension of such paid officer or servant is necessary in the interest of the society, direct the committee of the society pending the investigation and disposal of the matter, to place or cause to be placed such paid officer or servant under suspension from such date and for such period as may be specified by him.
(2) On receipt of a direction from the Registrar under sub-section (1), the committee of the society shall, notwithstanding any provision to the contrary in the bye-laws, place or cause to be placed the pa
(1) The cost of an inquiry under section 86 or, as the case may be of an inspection under section 87 shall be in the first instance from the Consolidated Fund of the State and shall be recovered in accordance with sub-section (2) and section 91.
(2) The Registrar shall determine the total amount of the cost referred to in sub-section (1) and by order apportion the cost or such part thereof as he may think just between the society, the members or creditors demanding the inquiry or inspection, the officers or former and the members or past members of the society:
Any sum imposed as penalty under sections 77, 78 or 86 or awarded by way of costs under section 90 may, on application by the Registrar or a person authorized by him in that behalf to a Magistrate having jurisdiction in the place where the person from whom the penalty or costs are recoverable resides or carries his business, be recovered by the Magistrate as if it were a fine imposed by himself; and such Magistrate shall proceed to recover the same in the manner provided by the Code of Criminal Procedure, 1898, for the recovery of fines.
(1) If the result of any inquiry held under section 86 or inspection made under section 87, discloses any defects in the constitution, working or financial condition or the books of a 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 officer 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 make an appeal against an order made by the Registrar under sub-section (1) to the State Government within two months from the date of the communication of the order to the society. The State Government may, in deciding the appeal, annul, reverse, modify or confirm the order of the Registrar.
(3) Where the society fails to rectify the defects as directed by the Registrar and where no appeal has been made to the State Government under sub-section (2) or where on the appeal so made the State Govern
(1) Where in the course of or as a result of an audit under section 84, or an inquiry under section 86 or an inspection under section 87, or the winding up of a society, the Registrar is satisfied on the basis of the report made by the auditor or the person authorized to make inquiry under section 86, or the person authorized to inspect the books under section 87, or the Liquidator under section 110, that any person who has taken any part in the organization or management of the society or any deceased, or past or present officer of the society has 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 authorized by him in that behalf may investigate the conduct of such person or persons and after framing charges against such person or persons, and after giving a reasonable opportunity to the person concerned and in the case of a dece
The Registrar or the person authorized by him, when acting under section 86, 87 or 93 shall have the power to summon and enforce the attendance of any person to give evidence 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.
(1) The State Government may constitute committee or recognize one or more co-operative federal societies in such manner as may be prescribed and subject to such conditions as the State Government may impose for the supervision of a society or a class of societies and may frame rules for making grants to any such committee or federal society.
(2) The State Government may, by general or special order, require of a society or a class of societies to make contribution of such sum every year as may be fixed by the Registrar towards the recoupment of expenditure which the State Government or any person authorized or a committee in that behalf has incurred or is likely to incur, in respect of the supervision of societies.
(3) A society to which sub-section (2) is applicable shall pay to such authorities such fee as may be prescribed within a reasonable time and, if it fails to pay such fee within a reasonable time, the authority may recover it as if it were an arrear of land
CHAPTER IX. PROCEDURE FOR DECIDING DISPUTES.
Notwithstanding anything contained in any other law for the time being in force, any dispute touching the constitution, management or business of a society shall be referred in the prescribed form either 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, to the Registrar, if the parties thereto are from amongst the following:-
(1) Notwithstanding anything contained in the Indian Limitation Act, 1908, but subject provisions made in this Act, the period of limitation in the case of a dispute referred to the Registrar under section 96 shall—
(1) If the Registrar is satisfied that any matter, referred to him is a dispute, within the meaning of section 96 the Registrar shall subject to the rules, decide the dispute himself, or refer it for disposal to a nominee, or a board of nominees, appointed by the Registrar:
(2) Where any dispute is referred under sub-section (1) for decision to the Registrar’s nominee or board of nominees, the Registrar may at any time, for reasons to be recorded in writing withdraw such dispute from his nominee, or board of nominees, and may decide the dispute himself, or refer it again for decision to any other nominee, or board of nominees, appointed by him.
(1) Notwithstanding anything contained in section 96, the Registrar may, if he thinks fit, suspend proceedings in regard to any dispute, if the question at issue between a society and a claimant or between different claimants, is one involving complicated question of law or fact, until the question has been tried by a regular suit instituted in any Civil Court. If such suit is not instituted within two months from the Registrar’s order suspending proceedings, the Registrar shall take action as is provided in sub-section (1).
(2) The Registrar, or his nominee or board of nominees, hearing a dispute under section 98 shall hear the dispute in the manner prescribed and shall have power to summon and enforce attendance of witnesses including the parties interested or any of them and to compel them to give evidence, and to compel the production of documents by the same means and as far as possible in the same manner as provided in the case of a Civil Court by the Code of Civil Proc
(1) Where a dispute has been referred to the Registrar or his nominee or board of nominees under section 98 or under section 110, or where the Registrar or the person authorized under section 93 hears a person against whom charges are framed under that section, the Registrar or his nominee or board of nominees, or as the case may be, the person so authorized under section 93 is satisfied on enquiry or otherwise that a party to such dispute or against whom proceedings are pending under section 93 with intent to defeat, delay or obstruct the execution of any award or the carrying out of any order that may be made,—
may, unless adequate security is furnished, direct conditional attachment of the said property and such attachment shall have the same effect as if made by a competent Civil
(1) When dispute is referred to the Registrar for decision, he or his nominee or board of nominees may, after giving a reasonable opportunity to the parties to the dispute to be heard, make an award on the dispute, on the expenses incurred by the parties to the dispute in connection with the proceedings, and the fees and expenses payable to the Registrar or his nominee or, as the case may be, board of nominees. Such an award shall not be invalid merely on the ground that it was made after the expiry of the period fixed by the Registrar, for deciding the dispute and shall, subject to appeal or review or revision, be binding on the parties to the dispute.
(2) The Registrar, his nominee or, as the case may be, the board of nominees, may before hearing the parties, require any party or parties to such dispute to meet the expenses including the payment of fees, that may be payable to the Registrar, his nominee or, as the case may be, the board of nominees, in pursuance of the awar
Any party aggrieved by any decision of the Registrar or his nominee or board of nominees under section 101 or in an order passed under section 100 may, within two months from the date of the decision or order, appeal to the Tribunal.
Every order passed by the Registrar or a person authorized by him under section 93, or by the Registrar, his nominee or board of nominees under section 100 or 101, every order passed in appeal under section 102, every order passed by a Liquidator under section 110, every order passed by the Government in appeal against orders passed under section 110, and every order passed in revision under section 155, shall, if not carried out,—
Provided that, any application for the recovery in such manner of any such sum shall be made to the Collec
Any private transfer or delivery of, or encumbrance or charge on, property made or created after the issue of the certificate of Registrar, Liquidator, or Assistant Registrar, as the case may be under section 103 shall be null and void as against the society on whose application the said certificate was issued.
(1) When in execution of an order sought to be executed under section 103 any property cannot be sold for want of buyers, if such property is in occupancy of the defaulter, or of some person in his behalf, or of such person claiming under a title created by the defaulter subsequently to the issue of the certificate of the Registrar, Liquidator or the Assistant Registrar, under clause (a) or (b) of section 103, the Court or the Collector or the Registrar, as the case may be, may direct that the said property or any portion thereof shall be transferred to the society which has applied for the execution of the said order, in the manner prescribed.
(2) Where property is transferred to the society under sub-section (1), or is sold under the provision of section 103, the Court, the Collector or the Registrar, as the case may be, may, in accordance with the rules, place the society or the purchaser, as the case may be, in possession of the property transferred or sold.
(3) Su
(1) Notwithstanding anything contained in sections 96, 98, and 103, on an application made by a society undertaking the financing of crops and seasonal finance as defined under the Bombay Agricultural Debtors Relief Act, 1947, or undertaking medium term finance for the recovery of arrears of any sum advanced by it to any of its members on account of the financing of crops, seasonal finance or medium term finance and on its furnishing a statement of accounts in respect of the arrears, the Registrar may, after making such inquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as arrears.
Explanation.—In this sub-section “medium term finance” advancing of loans for any purpose of production relating to agriculture, fishery, animal husbandry and industry such loans being repayable otherwise than in the manner specified in the definitions of the expressions “financing of crops” and “seasonal finance” in the Bombay Agricultural Debtor
CHAPTER X. LIQUIDATION
(1) If the Registrar,—
is of the opinion that a society o
(1) When an interim or final order is made under section 107 for the winding up of a society, the Registrar may, in accordance with the rules appoint a person to be the liquidator of the society, and fix his remuneration.
(2) Where an interim order is made 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 made confirming the interim order, the officers of the society—
(1) The committee, or any member, of the society ordered to be wound up, may within two months from the date of the communication to the society of the order made under section 107 appeal, if the order is made by the Registrar, Additional Registrar or Joint Registrar to the State Government, or if the order is made by any other person on whom the powers of the Registrar are conferred, to the Registrar:
(2) No appeal under this section shall be entertained from a member unless it is accompanied by such sum as security for the costs of hearing the appeal, as may be prescribed.
The liquidator shall, subject to the general control of the Registrar exercise all or any of the powers mentioned. The Registrar may r
The Liquidator appointed under section 108 shall have power, subject to the rules and the general supervision, control and direction of the Registrar,—
After the expiry of the period for appeal under section 109 against the order made under sub-section (3) of section 107, 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 realize 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, 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 und
(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 receipt 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 of books kept by him in the manner prescribed.
(4) The liquidator shall be held liable for any irregularities which might be discovered in the course or as a result of audit in respect of transactions, subsequent to his taking charge of the affairs of the society, a
(1) The winding up proceedings of a society shall be closed within three years from the date of the order of the winding up, unless the period is extended by the Registrar:
Provided that, the Registrar shall not grant any extension for a period exceeding one year at a time and four years in the aggregate, and shall, immediately after the expiry of seven years from the date of the order for winding up of the society, deem that the liquidation proceedings have been terminated, and pass an order terminating the liquidation proceedings.
Explanation.—In the case of a society which is under liquidation at the date of the commencement of this Act, an order for the winding up of the society shall be deemed for the purpose of this section to have been passed on the said date.
(2) Notwithstanding anything contained in sub-section (1) the Registrar shall terminate the liquidation proceedings on receipt of the final report from the liquidator. The final report shall state t
Any surplus assets, as shown in the final report of the liquidator of a society which has been wound up, shall not be divided amongst its members but shall be devoted to any object or objects provided in the bye-laws of the society, if they specify that such a surplus shall be utilized for the particular purpose. Where the society has no such bye-law, the surplus shall vest in the Registrar, who shall 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 cancellation of the registration of the society whose surplus is vested in the Registrar, the Registrar may distribute the surplus in the manner he thinks best, among any or all of the following :
Notwithstanding anything contained in this Act, in the case of an insured co-operative bank, —
In this Chapter, unless the context otherwise requires, —
(2) A person shall be disqualified for being a committee member if he ceases to possess any of the qualifications mentioned in clauses (a) and (b) of sub-section (1).
(3) A person shall be disqualified for being chosen as or for being a committee member, —
(4) A committee
No person shall exercise the right to vote at an election of a member of a committee in a financial year unless he is a member of the bank for the whole of the financial year preceding the financial year in which the election is held and continues to be such member.
Explanation-I—For the purpose of this section, the expression, “term’ means a term consisting of three years commencing from the date of the first meeting of a committee in which a Chairman, vice-chairman or, as the case may be, Managing Director (if he is elected) is elected.
Explanation-II—Where any person holding the office of the Chairman, Vice- Chairman or Managing Director (if such Director is elected) of a Committee for a period exceeding three years but not exceeding six
A committee shall ensure that—
(2) Where an offence under this section has been committed by a committee of a bank, every person who, at the time the offence was committed, was a member of such committee, shall be deemed to guilty of the offence and shall be liable to be proceeded against and punished accordingly :
Provided that nothing contained in this sub-section shall render any such person liable to any punishment as provided in this section if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
The provisions of section 84 shall apply to a specified bank as if in sub-section (1) of that section, for the words “at least once in each year”, the words “at least once in each quarter of a year” had been substituted.
Explanation.—for the purpose of this section, the expression, “specified bank” means,—
The provisions of this Chapter shall have effect notwithstanding anything to the contrary contained in the other provisions of this Act or the rules made there under or the bye-laws or the bye-laws of the bank.
The provisions of this Chapter shall have effect notwithstanding anything to the contrary contained in the other provisions of this Act or the rules made there under or the bye-laws or the bye-laws of the bank.
Nothing in sub-section (2) of section 115C shall apply to a person who is a committee member on the date of the commencement of the Gujarat Co-operative Societies (Amendment) Act, 2002.
This Chapter shall apply to Land Development Banks advancing loans, other than short terms loans, for the purposes herein enumerated that is to any—
In this Chapter unless the context otherwise requires, —
The Registrar or where the State government appoints any other person in this behalf, such person, shall be the Trustee for the purpose of securing the fulfillment of the obligations of the State Land Development Bank to the holders of debentures issued by the State Land Development Bank.
The Trustee shall be a corporation sole, by the name of the Trustee of the debentures in respect of which he is appointed and, as such, shall have perpetual succession and a common seal, and in his corporate name may sue and be sued.
The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed between the State Land Development Bank and the Trustee as modified from time to time by mutual agreement between the State Land Development Bank and the Trustee.
With the previous sanction of the State Government and the Trustee, and subject to the rules, the State Land Development Bank in the discharge of its functions issue debentures of such denominations, for such period, and at such rates of interest, as it may deem expedient on the security of the mortgages, or mortgages to be acquired or partly on mortgages held and partly on those to be acquired and properties and other assets of its land mortgages business.
Every debenture may contain term fixing a period not exceeding thirty years from the date of issue during which it shall be redeemable, or reserving to the committee the right to redeem at any time in advance of the date fixed for redemption after giving to the holder of the debenture not less than three months’ notice in writing.
(3) The total amount due on debentures issued by the State Land Development bank, and outstanding at any time, shall not exceed—
The principal of, and interest on, the debentures issued under section 119 shall, to such maximum amount as may be fixed by the State Government and subject to such conditions as the State government may think fit to impose, carry the guarantee of the State Government.
Upon the issue of debentures under the provisions of section 119, the mortgaged properties and other assets referred to in sub-section (3) of section 119 held by the State Land Development Bank shall vest in the Trustee; and the holders of debentures shall have a floating charge on all such mortgages and assets, and on the amount, paid under such mortgages and remaining in the hands of the State Land Development Bank or of the Trustee.
A written order by the Land Development Bank, or persons or committees authorized under the bye-laws of the Bank to make loans for all or any of the purposes specified in section 116 granting either before or after the commencement of this Act, a loan to or with the consent of a person mentioned therein, for the purpose of carrying out the work specified therein, for the benefit of the land or for the productive purpose specified therein, shall for the purposes of this Act be conclusive of the following matters that is to say,—
The mortgages executed in favour of, and all other assets transferred to a Primary Land Development bank by the members thereof shall, with effect from the date of such execution or transfer vest in the State Land Development Bank.
Notwithstanding anything contained in the Indian Registration Act, 1908 it shall not be necessary to register mortgages executed in favour of the Land Development Banks, provided that the Land Development Bank concerned sends within such time and in such manner as may be prescribed, a copy of the instrument whereby immovable property is mortgaged for the purpose of securing repayment of the loan to the Registering Officer within the local limits of situate. Such Registering Officer shall file a copy or copies as the case may be in his Book No. 1 prescribed under section 51 of the Indian Registration Act, 1908.
Notwithstanding anything contained in the Presidency-towns Insolvency Act, 1909 or the Provincial Insolvency Act, 1920 or any corresponding law for the time being in force, a mortgage, executed in favour of a land development bank shall not be called in question on the ground that it was not executed in good faith for valuable consideration, or on the ground that it was executed in order to give the bank a preference over other creditors of the mortgagor.
Provided that, where there is a dispute as regards the amount of any such debt, the person to whom such debt is due shall be bound to receive payment of the amount offered by the land development bank towards the debt, but such receipt shall not prejudice the right, if any, of such person to recover the balance claim
Provided that, the rights of the bank shall be enforceable against the lessee or the tenants, as the case may be, as if he himself was a mortgagor.
(2) Where land mortgaged with possession to a land development bank, is in actual possession of a tenant, the mortgagor or the mortgagee bank shall give notice to the tenant to pay rent to the bank during the currency of the lease and the mortgage, and on such notice being given, the tenant shall be deemed to have attorned to the bank.
Section 8 of the Hindu Minority and Guardianship Act, 1956, shall apply to mortgages in favour of a Land Development Bank, subject to the modification that any reference to the Court therein shall be construed as reference to the Collector or his nominee, and the appeal against the order of the Collector or his nominee shall be lie to the Commissioner.
On receipt of such application the Registrar may, notwithstanding anything contained in the transfer of Property Act, 1882, take action in the manner prescribed for the purpose of distraining and selling such produce subject to the prior charge of the society :
Provided that, no distraint shall be made after the expiry of twelve months from the date on which the installment fell due.
(3) The value of the property distrained shall as nearly as possible be equal to the amount due and the ex
Provided that where the Registrar is the Trustee, he shall submit such report to the State Government and the State Government may confirm the sale or cancel it.
The proceeds of every sale effected under section 134 and confirmed under section 136, shall be applied first in payment of all costs, charges and expenses incurred in connection with sale or attempted sales, secondly in payment of the interest due on account of the mortgage in consequence where of the mortgaged property was sold, and thirdly in payments of the principal dues on account of the mortgage including costs and charges incidental to the recovery. If there remains any residue from the proceeds of sale, the same shall be paid to the person proving himself interested in the property sold, or if there are more than one receipt or according to their respective interest therein, as may be determined by the land development bank:
Provided that, before any such payments are made—
It shall be competent for the Registrar or a person authorized by him to direct conditional attachment of the property of the mortgagor until the arrears due to the Land Development Bank together with interest and any incidental charges incurred in the recovery of such arrears, are paid or security for payment of such arrears is furnished to the satisfaction of the Registrar and the provisions of section 100 shall apply mutatis mutandis to conditional attachment of any property made or to be made under this section.
During such period as the State Government may general or special order notify in the Official Gazette, it shall be competent for the Collector, on application being made to him in that behalf by a Land Development Bank, to recover all sums due to the Land Development Bank (including the cost of such recovery).
Any amount due to a Land Development Bank shall be recoverable by the Collector or any officer specially authorized by the Collector in this behalf,
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Notwithstanding anything contained in the Indian Registration Act, 1908, it shall not be necessary for any officer of a land development bank to appear in person or by agent at any registration office in any proceedings connected with the registration of any instrument executed by him in his official capacity, or to sign as provided in section 58 of that Act.
Where any instrument is so executed, the Registering Officer to whom such instrument is presented for registration may, if he thinks fit, refer to such officer for information respecting the same and, on being satisfied of the execution thereof, shall register the instrument.
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 purposes of meeting losses that might arise as a result of loans being made by the Land Development Banks on titles to immovable property subsequently found to be defective or for any other purpose under this Chapter, for which in the opinion of the State Government, it is necessary to provide for or create a separate Guarantee Fund.
The State Land Development Bank and the Primary Land Development Bank shall contribute to such funds at such rate as may be prescribed, and the constitution, maintenance and utilization of such funds shall be governed by such rules, as may be made by the State Government in this behalf.
(1) Where any works included in a land improvement scheme which has come into force under the Bombay Land Improvement Schemes Act, 1942 are carried out at the cost or part cost of the State Government, and such cost or part of cost is to be recovered from the owners of the lands (other than Government) included in the scheme as shown in the statement prepared under section 13 or in the interim or final statement prepared under section 13A of that 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 shall stand transferred to the State Land Development Bank in relation to such owners of land, and subject to such terms and conditions (including any condition regarding giving of any guarantee by the State Government ) as may be agreed upon between the State Government and such Land Development Bank; and for arriving at such agreement, every owner of land shall
Notwithstanding anything contained in this Chapter, where a loan is given by the Land Development Bank to a Co-operative Society for undertaking any work or development of agriculture on condition that, the members of such are jointly and severally liable to the Bank for the payment of the whole amount and an agreement to that effect is entered which and signed by each of such members in the presence of an officer authorized in that behalf by the Registrar that agreement shall be conclusive evidence of the portion of that amount which each of the members is bound to contribute and against which he had mortgaged his lands or a portion of the lands by executing a separate mortgage deed with the Bank.
At any sale of movable or immovable property, held under the provisions of this chapter no officer or employee of a land development bank except on behalf of the bank of which he is an officer or an employee, and no person having or indirectly bid for or acquire or attempt to acquire any interest in such property.
All sections of this chapter except section 145Z shall apply to elections to committees of societies belonging to the categories specified in section 74C.
In this Chapter, unless the context otherwise requires, —
Every election shall be held as far as possible one month before the date on which the term of office of the members is due to expire.
(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 the specified society, the election of such nominee shall be conducted under the control of the Collector of the District in which the registered office if the society sending the nominee is situated.
(3) The voting at every election shall be by secret ballot.
(4) No election shall be held in the case where under the bye-laws of a specified society the Government nominee or the of a Financing Agency becomes a member of the committee of the society.
The expenses of the holding of any election, including the payment of traveling allowances, daily allowances and other remuneration, if any. To the persons appointed to exercise the powers and perform the duties in respect of the election, shall be borne by the specified society concerned.
A person shall be disqualified for being elected, as, and for being a member of the committee of any specified society—
Deleted by Guj.23 of 1982, s.28.
Deleted by Guj. 23 of 1982, s.28.
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—
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 authorized by or under any law) communicate to any person information, calculated to violate such secrecy.
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.
No person who is 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.
No such person as aforesa
(1) No person shall, on the date or dates on which poll is taken at any polling station, commit any of the following act within the polling station or in any public or private place within a distance of one hundred meters of the polling station , namely :-
(1) No person shall on the date or dates on which a poll is taken at any polling station, —
(2) Any person who contravenes, or willfully aids or abets the contravention of the provisions of sub-section (1) shall, on conviction, be punished with imprisonment which may extend to three months or with fine, or with both.
(3) If the Presiding Officer of a polling station has
Any person who during the hours fixed for the poll at any polling station misconducts himself or fails to obey the lawful direction 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 authorized in this behalf by such Presiding Officer.
The powers conferred by sub-section (1) shall not be exercised so as to prevent any elector who otherwise entitled to vote at a polling station form having an opportunity of voting at that station If any person who has been so removed from a polling station re- enters the polling station without the permission of the Presiding Officer he shall on conviction, be punished with imprisonment for a term which may extend to three months or with fine or with both.
An offence punishable under sub-section (3) shall b cognizable.
(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 cognizable.
(3) No suit or other legal proceeding 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 other persons 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 purposes of this section be constructed accordingly; but shall not include duties imposed otherwise than by or under this Act.
If any person is guilty of any such corrupt practice as is specified clause (3) or (4) of section 145-J at or in connection with an election , he shall, on conviction , be punished with fine which may extend to thousand rupees.
(1) Any person who at any election fraudulently takes or attempts to take a ballot paper put of a polling station, or willfully 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), such officer may, before such person leaves the polling station,. Arrest or direct a police officer to arrest such person and may search such person or cause him to be searched by a police officer: Provided that, where it is necessary to cause a woman to be searched, the search shall be made by another woman with strict regard to decency.
(3) Any ballot paper found upon the person arrested on search shall be made over for sage custody to a police officer by the Presiding officer, or wh
(1) A person shall be guilty of an electoral offence, if at any election he—
The provisions of section 148 shall apply to the offences under this chapter, subject to the modifications that it shall be lawful for a Metropolitan Magistrate or Judicial Magistrate of the first class to pass a sentence or fine on any person convicted of any offence under this Chapter in excess of his power under section 29 of the Code Criminal Procedure, 1973 and that no prosecution for an offence punishable under this Chapter shall be lodged, except with the previous sanction of the Collector.
(1) Notwithstanding anything contained in section 96 or any other provisions of this Act, any dispute relating to an election shall be referred to the Tribunal.
(2) Such reference may be made by an aggrieved party by presenting an election petition to the Tribunal: Provided that no such petition shall be made till after the final result of the election is declared and where any such petition is made it shall not be admitted by the Tribunal unless it is made within two months form the date of such declaration : Provided further that, the Tribunal may admit any petition after the expiry of that period, if the petitioner satisfies the Tribunal that he had sufficient cause for not preferring the petition within the said period.
(3) In exercising the functions conferred on it by or under this Chapter, the Tribunal shall have the same powers as are vested in a Court in respect of —
A petitioner presenting an election petition under section 145U shall pay a deposit not exceeding Rs. 500 as the tribunal 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 Tribunal shall assess the respondents, or both as the case may be, to defray the whole or in such proportion as it thinks first, the costs of the petition the whole or in such proportion as it thinks fir, the costs for the petition including the deposit so made. Such sum as the Tribunal may assess as the cost to Tribunal of hearing the petition (but not exceeding Rs. 500 in any case) shall be created to the Government.
(1) An election petition shall—
(2) Any schedule or annexure to the petition shall also be signed by the petitioner and verified in the same manner as the petition.
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 he himself or any other candidate has been duly elected.
Without prejudice to any other power to make rules contained elsewhere 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 elections (including preparation of list of voters.)
(1) This section shall apply only to election of officers by members of committee of societies belonging to the categories specified in section 74C.
(2) After the election of the members of the committee, 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 meeting of the committee for this purpose shall be presided over by the Collector or an officer nominated by him in this behalf.
(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 or under which he traded or carried on business at 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 sub-section (1) shall, on conviction, be punished with the fine which may extend to five hundred rupees.
(3) No Primary Agricultural Credit Co-operative Society shall use the word "bank", "banker", "banking" or any other derivative of the word "bank" in its name and the existing society using such name shall be deregistered by the Registrar.
(1) It shall be an offence under this Act, if—
(1) every employer, or officer, member, agent or servant of a society, or any other person, who commits an offence under section 147 shall, on conviction, be punished, —
(1) No prosecution for an offence under section 147 shall be instituted in respect of the same facts on which a penalty has been impose by the Registrar under any provisions of this Act.
(2) No court inferior to that of a Presidency Magistrate or a Magistrate of the First class shall try offence under this Act.
Notwithstanding anything contained in the Code of Criminal Procedure, 1898, it shall be lawful for a Presidency Magistrate or a Magistrate of the First Class to pass a sentences of fine on any person convicted of an offence under clause (c) of sub-section (1) of section 147 as provided under section 148, in excess of his powers under section 32 of that Code.
No prosecution under this Act shall be lodged, except with the previous sanction of the State Government in the case of an offence under clause (c) of sub-section (1) of section 147, and of the Registrar in the case of any other offence under this Act. Such sanction shall not be given, except after hearing the party concerned, by an officer authorized in this behalf by the State Government by a general or special order.
The State Government shall constitute a Tribunal called the Gujarat State Co-operative Tribunal to exercise the functions conferred on the Tribunal by or under this Act.
The State Government may terminate the appointment of any member of the Tribunal b
(1) The Tribunal may, either on the application of the Registrar, or on the application of any party interested, review its own order in any case, and pass in reference thereto such order as it thinks just:
Provided that, no such application made by the party interested shall be entertained, unless the Tribunal is satisfied that there has been discovery of new and important matter or evidence, which after the exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when its order was made, or that there has been some mistake or error apparent on the face of the record, or for any other sufficient reasons:
Provided further that, no such order shall be varied or revised, unless notice has been given to the parties interested to appear and be heard in support of such order.
(2) An application for review under sub-section (1) by any party, shall be made within ninety days from the date of the communication of th
(1) In exercising the functions conferred on it by or under this Act, the Tribunal shall have the same powers as are vested in a Court in respect of,-
(2) In the case of any such affidavit, any officer appointed by the Tribunal in this behalf may administer the oath to the deponent.
(1) An appeal against an order or decision by the Registrar, or an Additional or Joint Registrar on whom powers of the Registrar are conferred, shall lie—
(2) An appeal against an order of a liquidator under section 110 shall lie—
(3) An appeal against an order or decision under sections 82,90,90 and any order passed by the Registrar for paying compensation to a Society, and any other order for which an appeal to the Tribunal has been provided
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 appeal within such period.
The Government and the Registrar may call for and examine the record of any inquiry or the proceedings of any other matter of any officer subordinate to them, except those referred to in sub-section (9) of section 150, for the purpose of satisfying themselves as to the legality or propriety of any decision or order passed, and as to the regularity of the proceedings of such officer. If in any case, it appears to the State Government, or the Registrar, that any decision or order or proceedings so called for should be modified, annulled or reversed, the State Government or the Registrar, as the case may be, may after giving persons affected thereby an opportunity of being heard pass such order thereon as it or he may deem just.
(1) There shall be a Council to be called the Gujarat State Co-operative Council consisting of the following members, namely:—
Notwithstanding anything contained in the Transfer of Property Act, 1882, and the Indian Registration Act, 1908, it shall be lawful for a member of a Co-operative Farming Society to transfer to the society any land held by him or the whole or part of his interest in any land by an agreement and in such manner as may be prescribed.
(1) Unless otherwise provided by this Act, all sums due from a society or from officer or member or past member or a deceased member of a society as such to the Government, may be recovered as arrears of land revenue.
(2) Sums due from a society to the Government and recoverable under sub-section (1) 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 from their estate if they have died, subject to the limit of their liability, and, thirdly, in the case of societies with unlimited liability from the members or past members or their estate, if they have died.
(3) The liability under this section shall in all cases be subject to the provisions of section 34.
(1) The Registrar or any officer subordinate to him and empowered by him in this behalf may, subject to such rules as may be made by the State Government by or under this Act, recover—
together with interest, if any, due in such amount or sum and the costs of recovering the same by the attachment and sale or by sale without attachment of the property of the person against whom such decree, decision, award or order has been obtained or passed.
(2) The Registrar or the officer empowered by him shall be deemed when exercising the powers under sub-section (1) or when pas
(1) If the Registrar of his own motion or otherwise is satisfied that in public interest for the purposes of securing the proper implementation of co-operative production and other development programmes approved or undertaken by the State Government or for linking and coordinating of co-operative activities such as marketing and credit, or securing the proper management of the business of the society generally or preventing the affairs of the society being conducted in a manner detrimental to the interests of the members, or of the depositors or the creditors thereof, it is necessary to issue directions to any class of societies generally or to any society or societies in particular, he may issue directions to them, from time to time, and all societies or the society concerned, as the case may be, shall be bound to comply with such directions.
(2) The Registrar may of his own motion or otherwise modify or cancel any directions issued under sub-section (1), and where modifyin
The State Government may, by general or special order, to be published in the Official Gazette, exempt any society or class of societies from any of the provisions of this Act, or may direct that such provisions shall apply to such society or class of societies with such modifications not affecting the substance thereof as may be specified in the order:
Provided that, no order to the prejudice of any society shall be passed, without an opportunity being given to such society to represent its case.
Provided further that the aforesaid provision shall apply to societies in the co-operative credit structure subject to the guidelines issued by the Reserve Bank of India.
The State Government may by notification in the Official Gazette and subject to such conditions, as it may think fit to impose, delegate—
(1) No society shall open a branch or a place of business outside the State of Gujarat, 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 Gujarat 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 State of Gujarat under sub-section (1) or which has a branch or a place of business in the State of Gujarat at the commencement of this Act, shall, within three months from the date of the opening of such branch or place of business or from the commencement of this Act, file with the Registrar a certified copy of the bye-laws and amendments and, if these be not in English a certified copy translation thereof in English or Hindi and shall submit to the Registrar such returns and information as are submitted by similar societies registered under this Act in addition to those which
The Registrar, a person exercising the powers of the Registrar, a person authorized to audit the accounts of a society under section 84, or to hold an inquiry under section 86, or to make an inspection under section 87, and a person appointed as an administrator under section 81, or as a nominee or board of nominees under section 98, or as a liquidator under section 108, and all members of the Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.
No suit, prosecution or other proceedings 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 in pursuance of this Act or the rules made thereunder.
(1) Save as expressly provided in this Act, no Civil or Revenue Court shall have any jurisdiction in respect of—
(2) While a society is being wound up, no suit or other legal proceeding relating to the business of such society shall be proceeded with or instituted against the society or any member thereof, or any matter touching the affairs of the society, except by leave of the Registrar, and subject to such terms as he may impose.
All orders, decision or awards passed in accordance with this Act or the rules, shall, subject to the provisions for appeal or revision in this Act be final; and
Save as otherwise provided in this Act, 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, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may be made—
(3) The power to make rules conferred by this section is subject to the condition of the rules being made after previous publication.
(4) All rules made under this section shall be laid for not less than thirty days before the State Legislature as soon as possible after they are made, and shall be subject to such modification as the Legislature may make during the session in which they are so laid, or the session immediately following.
(5) Any modification so made by the State Legislature shall be publi
(1) The Bombay Co-operative Societies Act, 1925 (hereinafter referred to as “the said Act”) is hereby repealed:
Provided that, such repeal shall not affect the previous operation of the said Act and anything done or action taken (including any appointment or delegation made, application or other document filed, certificate of registration granted, agreement executed, notification, order, direction or notice issued, rule, regulation, form or bye-law framed or proceeding instituted before any Registrar, arbitrator, liquidator or tribunal or other officer, authority or person) by or under the provisions of the said Act shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act, and shall continue in force unless and until superseded by anything done or any action taken under this Act.
(2) All societies registered or deemed to be registered under the said Act the registration
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.
Notwithstanding anything contained in this Act or the rules made there under or the bye-laws of the bank, a person who at the commencement of the Gujarat Co-operative Societies (Amendment) Act, 2002 is holding the office of the Chairman, Vice-chairman or Managing director (if such Director is elected) of a committee continuously for a period not less than six years shall, unless he resigns or is removed earlier, cease to hold that office either on the date when the new chairman, Vice-chairman or, as the case may be, Managing Director is elected or on the 30th June, 2002, whichever is earlier.
(1) This Act may be called the Gujarat Co-operative Societies Act, 1961.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.
In this Act, unless the context otherwise requires,-
(1) For carrying out the purposes of this Act, the State Government shall appoint a person to be the Registrar of Co-operative Societies for the State.
(2) To assist the Registrar in his functions under this Act, the State Government may appoint such number of Additional Registrars, Joint Registrars, Deputy Registrars, Assistant Registrars and other person with such designations as it may think fit.
(3) The State Government may, by general or special order, confer on a person or persons appointed under sub-section (2) all or any of the power of the Registrar under this Act.
(4) Every person appointed under sub-section (2) shall work under the general guidance, and the superintendence and control of the Registrar.
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