BIHAR AND ORISSA CO-OPERATIVE SOCIETIES ACT, 1935

Act No. 06 of 1935

29th May, 1935

An Act to consolidate and amend the law relating to Co-operative Societies in [the States] of Bihar and Orissa. Whereas it is expedient to facilitate the formation, working and consolidation of co-operative societies for the promotion of thrift, self-help and mutual aid among agriculturists and other persons with common needs, and for that purpose to consolidate and amend the law relating to co-operative societies in [the State] of Bihar [and Orissa]; And whereas the previous sanction of the Governor-General under sub-section (3) of section 80A of the Government of India Act has been obtained to the passing of this Act: It is hereby enacted as follows:-

Read full Act

S.1 Short title and extent

(1) This Act may be called the Bihar and Orissa Co-operative Societies Act, 1935.

(2) It extends to the whole of [the States] of Bihar [and Orissa] including the Santal Parganas.

S.2 Definitions

In this Act, unless there is anything repugnant in the subject or context,-

• (a) 'by-laws' means the registered by-laws for the time being in force, and includes a registered amendment of the by-laws;
• (b) 'Co-operative Federation' means a registered society the main object of which is to co-ordinate and facilitate the activities of other registered societies and to foster the growth of the co-operative movement;
• (c) 'financing bank' means a registered society the main object of which is to make advances in cash or kind to other registered societies or to agriculturists who are not members of registered societies or to both such societies and agriculturists;
• (d) 'liquidator' means a person or persons appointed by the Registrar under sub-section (1) of section 44 to wind up the affairs of a registered society;
• (e) 'managing committee' means the committee of management or other body to whom the management of the affairs of a registered s
  

S.3 Indian Companies Act, 1913, not to apply

The provisions of the Indian Companies Act, 1913 (7 of 1913), shall not apply to registered societies.

S.4 Saving of existing societies

(1) Every society now existing which has been registered under the Co-operative Credit Societies Act, 1904 (10 of 1904), or under the Co-operative Societies Act, 1912 (2 of 1912), shall be deemed to be registered under this Act, and its by-laws shall, so far as they are not inconsistent with the express provisions of this Act. continue in force until altered or rescinded.

(2) All appointments, rules and orders made, notifications and notices issued, all transactions entered into and suits and other proceedings instituted under the said Acts, shall be deemed, so far as may be, to have been respectively made, issued, entered into and instituted under, this Act.

S.5 Construction of references to Co-operative Societies Act 1912 in enactments

All references to the Co-operative Societies Act, 1912 (2 of 1912) occurring in any enactment made by any authority in India and for the time being in force in [the States] of Bihar [and Orissa] shall, in the application of any such enactment to the said [States] be construed as references to this Act,

S.6 The Registrar

(1) The [State] Government may appoint a person to be Registrar of Co-operative Societies for the [State] or any portion of it, and may appoint persons to assist such Registrar.

(2) The [State] Government may, by general or special order published in the [Official Gazette], confer,-

• (a) on any person appointed under sub-section (1), to assist the Registrar, all or any of the powers of the Registrar under this Act except the powers under section 26, section 40 section 11 sub-section (5) of section 44, sub-section (3) of section 47 and sub-sections (6) and (8) of section 48 and
• (b) on any Co-operative Federation or financing bank, all or any of the powers of the Registrar under section 20, sub-section (3) of section 28 and section 33.

S.7 Societies which may be registered

(1) Subject to the provisions of this Act, a society which has as its object the promotion of the common interests of its members in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act with or without limited liability:

Provided that, unless the [State] Government by general or special order otherwise directs,-

• (a) the liability of a society of which a member is a registered society shall be limited; and
• (b) the liability of a society of which the primary object is the creation of funds to be lent to its members, and of which the majority of the members are agriculturists, and of which no member is a registered society, shall be unlimited.

(2) Where the liability of a society is limited, the liability of each member, past member, or the estate of a deceased member shall, on liquidation, be limited to the amount, if any, unpaid o

S.8 Conditions of registration

(1) No society, other than a society of which a member is a registered society, shall be registered under this Act which does not consist of at least ten persons above the age of eighteen years and, where the, primary object of the society is the creation of funds to be lent to its members, unless such persons-

• (a) reside in the same town or village or in the same group of villages; or
• (b) save where the Registrar otherwise directs, are members of the same tribe, class or occupation.

(2) The word 'limited' shall be the last word in the name of every society with limited liability registered under this Act.

S.9 Application for registration

(1) An application for the registration of a society shall be made to the Registrar, and shall be accompanied by a copy of the proposed bylaws of the society; and the persons by whom or on whose behalf sub-application is made shall furnish such information in regard to the society as the Registrar may require.

(2) The application shall be signed-

• (a) if none of the applicants is a registered society, by at least ten persons qualified in accordance with the requirements of sub-section (1) of section 8; and
• (b) if any of the applicants is a registered society, by a duly authorised person on behalf of every such registered society, and where all the members of the society are not registered societies, by ten other members or, where there are less that ten other members, by all of them.

S.10 Power of Registrar to decide certain questions

When any question arises whether for the purposes of this Act person is an agriculturist or a non-agriculturist, or whether any person is a resident in a particular 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, whose decision shall be final.

S.11 Registration

(1) If the Registrar is satisfied that a society has complied with the provisions of this Act and the rules and that its proposed by-laws are not contrary to this Act or to the rules, he may, if he thinks fit, register the society and its by-laws.

(2) If the Registrar refuses to register a society, he shall record his reasons for such refusal.

(3) An appeal shall lie to the [State] Government from an order of the Registrar refusing to register a society, within two months from the date of the receipt of the order by at least one of the applicants.

S.12 Evidence of registration

A certificate of registration signed by the Registrar shall be conclusive evidence that the society therein mentioned is duly registered unless it is proved that the registration of the society has been cancelled.

S.13 Societies to be bodies corporate

The registration of a society shall render it a body corporate by the name under which it is registered, with perpetual succession and a common seal and with power to acquire and hold property, to enter into contracts, to institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.

S.14 Registered societies to have a managing committee, etc

(1) Every registered society shall have an address, registered in accordance with the rules, to which all notices and communications may he sent, and shall send notice, in writing, to the Registrar and to the financing bank, if any, of which it is a share-holder and to the Co-operative Federation, if any, of which it is a member, of any change in the said address within fifteen days of such change.

(2) The management of a registered society shall be vested in a managing committee constituted in accordance with the rules.

(3) Every registered society shall keep open to inspection free of charge at all reasonable times at its registered address-

• (a) a copy of this Act,
• (b) a copy of the rules governing such society,
• (c) a copy of the by-laws of such society, and
• (d) a register of its members.

S.15 Restrictions on borrowing

A registered society shall receive deposits and loans from members and non-members only to such extent and under such conditions as may be prescribed by the rules or by-laws.

S.16 Restrictions on lending

(1) Except with the general or special sanction of the Register and subject to such restrictions as he may impose, a registered society shall not-

• (a) make a loan to any person other than a member, or
• (b) lend money on the security of nonviable property.

(2) The [State] Government may, by general or special order, prohibit or restrict the lending of money on mortgage of immoveable property by any registered society of class of registered societies.

(3) Where the Register has accorded sanction to a financing bank under the provisions of sub-section (1), a registered society which is a member of such financing bank may, subject to the terms of the sanction and such other terms and conditions as may be prescribed by the Registrar, act as agent for the financing bank and as such agent carry out, with or without any commission, all or any transactions connected with loans or advances made or to be made by the financing bank.

S.17 Restrictions on other transactions with nonmembers

The transactions of a registered society with persons other than members shall be subject to such further prohibitions and restrictions, if any, as the [State] Government may by rules prescribe.

S.18 Reserve fund

(1) At least thirty-five per cent of the net profits of a registered society shall each year be carried to a reserve fund, provided that the [State] Government may by rule increase or decrease this proportion for any society or class of societies.

(2) The reserve fund shall not be used in the business of the society except to such extent and in such manner as may be prescribed by the rules.

(3) Any portion of the reserve fund not used in the business of the society shall be invested or deposited in one or more of the ways specified in section 19 subject to such rules as the [State] Government may make in this behalf.

S.19 Investment of funds

Subject to the provisions of sub-section (2) of section 16 a registered society may invest or deposit its funds-

• (a) in a Government Savings Bank; or
• (b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (2 of 1882); or
• (c) with the general or special sanction of the Registrar and on such conditions as he may impose-
• (i) in the shares or on the security of any other registered society; or
• (ii) with any bank or person carrying on the business of banking approved for this purpose by the Registrar;
• (d) in any other mode permitted by the rules.

S.20 Contribution to charitable purpose

Any registered society may, after the amount required by sub-section (1) of section 18 or by any rule has been carried to the reserve fund, contribute an amount not exceeding ten per cent. of the net profits to any charitable purpose, as defined in section 2 of the Charitable Endowments Act, 1890 (6 of 1890):

Provided that the Registrar may, by general or special order, prohibit any society or class of societies from making any contribution under this section.

S.21 Restriction on division of funds

No part of the funds of a registered society shall be divided by way of bonus or dividend or otherwise among its members:

Provided that after the amount required by sub-section (1) of section 18 or by any rule has been carried to the reserve fund, the balance of the net profits, if any, together with any available profits of past years, may be distributed as dividend among members or paid as bonus or remuneration to a member for any specific service rendered to the society or used for the common benefit of members to such extent and under such conditions as may be prescribed by the rules or by-laws.

S.22 Charge and set-off in respect of shares or interest of members

A registered society shall have a charge upon the share or interest in the capital and on the deposits or contribution of a member past member or deceased member and upon any amount payable out of profits to a member or past member or to the estate of a deceased member in respect of any debt due from such member, past member or the estate of such deceased member to the society, and may set off any sum credited or payable to a member, past member or the estate of a deceased member in or towards payment of any such debt.

S.23 Prior claim of society

Subject to any claim of the [Government] in respect of land-revenue or any money recoverable as land-revenue or as a public demand or any claim of a landlord in respect of rent or any money recoverable as rent, any debt or outstanding demand due to a registered society from any member, past member or the estate of a deceased member, shall be a first charge,-

• (a) If the demand is due in respect of the supply of, or any loan granted for the purchase of, seed or manure-upon the crops or other agricultural produce of such member, or past member or belonging to the estate of such deceased member, at any time within two years from the date on which the last installment of such supply or loan shall become repayable;
• (b) if the demand is due in respect of the supply of, or of any loan granted for the purchase of, cattle, fodder for cattle, agricultural or industrial implements or machinery or raw materials for manufacture-upon any cattle or things so supplied, or purc
  

S.23A Application of section 23 to non-members

Any debt or outstanding demand due to a registered society, authorised under clause (a) of sub-section (1) of section 16, from any non-member or the estate of a deceased non-member, shall be a first charge on the property of the non-member or belonging to the estate of the deceased non-member to the same extent and subject to the same claims, conditions and restrictions as a debt or outstanding demand due to a registered society from any member or the estate of a deceased member is, under section 23. a first Charge on the property of the member or belonging to the estate of the deceased member.

S.24 Transfer of interest on death of member

(1) A registered society may, on the death of a member, transfer his share or interest in the capital of the society to the person nominated in accordance with the rules or, if there is no person so nominated, to such person as may appear to the society or managing committee to be the heir or legal representative of the deceased member, or may pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest, as ascertained in accordance with the rules or by-laws:

Provided that-

• (i) in the case of a society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid, after deducting the amount of any charge existing under section 22;
• (ii) in the case of a society with limited liability, the society shall transfer, subject to any charge e
  

S.24A Power of Registrar to sanction compromise between a registered society and its creditors

(1) Notwithstanding anything contained in this Act, where a compromise or arrangement is proposed between a registered society and its creditors or any class of them, the Registrar may, on the application in a summary way of the society or of any creditor or, in the case of a society in respect of which an order of winding up has been passed, of the liquidator, order a meeting of the creditors or class of creditors, as the case may be, to be called, held and conducted in such manner as may be prescribed by rules.

(2) If a majority in number representing three-fourths in value of the creditors, or class of creditors, as the case may be, present either in person or by proxy at the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by an order of the Registrar, be binding on all the creditors or the class of creditors, as the case may be, and also on the society, or, in the case of a society in respect of which an order of windin

S.25 Amendment of the by-laws of a registered society

(1) No amendment of the by-laws of a registered society shall be valid until the amendment has been registered under this Act.

(2) If the Registrar is satisfied that an amendment of the by-laws is not contrary to this Act or to the rules, he may register the amendment.

(3) When the Registrar registers an amendment of the by-laws of a registered society, he shall issue to the society a copy of the amendment certified by him, which shall be conclusive evidence that the amendment has been duly registered.

S.26 Power of Registrar to direct amendment of the bylaws of a registered society

(1) If it appears to the Registrar that an amendment of the bylaws of a registered society is necessary or desirable in the interest of such society, he may, by order in writing to be issued to the society by registered post, require the society to make the amendment within such time as he may specify in such order.

(2) If any society fails to make any such amendment within the time specified, the Registrar may, after giving the society an opportunity of being heard, register such amendment, and issue to the society by registered post a copy of the amendment certified by him, which shall be conclusive evidence that the amendment has been duly registered, and such amendment shall be binding on the members of such society.

(3) An appeal shall lie to the [State] Government from any order of the Registrar passed under sub-section (2) within two months from the date of the issue of such order. The order of the [State] Government on appeal and, subject to the result of such

S.27 Member not to exercise rights till due payment made

No member of a registered society shall exercise the rights of a member unless or 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 by-laws.

S.28 Votes of members

(1) Subject to the provisions of sub-section (2), each member of a registered society shall have one vote only as a member in the affairs of the society, provided that in the case of an equality of votes the chairman shall have a casting vote.

(2) A registered society which is a member of any other registered society shall have as many votes as may be prescribed by the by-laws of such other society, and may, subject to such by-laws, appoint any number of its members, not exceeding the number of such votes, to exercise its voting power, provided that no member who is disqualified for such appointment under any rule shall be so appointed.

(3) Save as provided in sub-section (2), voting by proxy shall not be allowed except with the general or special sanction of the Registrar for any society or class of societies.

S.29 Restrictions on holding of members

No member of a registered society, other than another registered society, shall have or claim any interest in the capital of a registered society exceeding one-fifth of the total capital or such smaller proportion as may be prescribed by the rules.

S.30 Share or interest not liable to attachment

Subject to the provisions of section 22, the share or interest of a member in the capital of, or contribution to, a registered society shall not be liable to attachment or sale under any decree or order of a Court of Justice in respect of any debt or liability incurred by such member, and neither the Official Assignee under the Presidency-towns Insolvency Act, 1909 (3 of 1909), nor a Receiver under the Provincial Insolvency Act, 1920 (5 of 1920), shall be entitled to, or have any claim on, such share, interest or contribution.

S.31 Restrictions on transfer of share or interest

(1) The transfer or charge of the share of interest of a member in the capital of a registered society shall he subject to such conditions as to maximum holding as may be prescribed by this Act or by the rules.

(2) In case of a society registered with unlimited liability, a member shall not transfer any share held by him or his interest in the capital or property of the society or any part thereof unless-

• (a) he has held such share or interest for not less than one year; and
• (b) the transfer or charge is made to the society or to a member of the society or to a person whose application for membership has been accepted by the society.

S.32 Liability of a past member and of the estate of a decease member

The liability of a past member or of the estate of a deceased member for the debts of a registered society as they existed on the date of his ceasing to be a member or of his decease as the case may be shall continue for a period of two years from such date.

S.33 Audit

(1) The Registrar shall audit, or cause to be audited by some person (hereinafter referred to as the auditor) authorised by him by general or special order in writing in this behalf, the accounts of every registered society once at least in every year.

(2) Every officer or member of the society shall furnish such information in regard to the transactions and working of the society as the Registrar or the auditor may require.

(3) The audit under sub-section (1) shall be conducted according to the rules, and shall include an examination of overdue debts, if any, the verification of the cash balance and securities and a valuation of the assets and liabilities of the society.

(4) The auditor shall submit a report on such examination, verification and valuation, and shall include in his report a statement of-

• (a) every transaction which appears to the auditor to be contrary to law or to the rules or by-laws of the society;
• (b) the amount of any
  

S.34 Inspection by Registrar

The Registrar may from time to time inspect a registered society himself or cause it to be inspected by some person authorised by him in this behalf by general or special order.

S.35 Inquiry by Registrar

(1) The Registrar may, of his own motion, and shall, on the request of the Collector, or on the application of a majority of the managing committee or of not less than one-third of the members hold an inquiry, or direct some person authorised by him by order in writing in this behalf to hold an inquiry, into the constitution, working and financial condition of a registered society.

(2) The Registrar or the person authorised by him under sub-section (1) may-

• (a) require an officer of the society to call a general meeting at such time and place at the headquarters of the society and require the society to take into consideration such matters as he may direct, and
• (b) if the officer of the society refuses or fails to call such a meeting or if there be no quorum at a meeting so convened, call such meeting himself by giving notice to the members in such a way as he may consider reasonable, notwithstanding any rules or by-laws prescribing the period of notice
  

S.36 Inspection of books by Registrar

(1) The Registrar may, on the application of a creditor of a registered society, inspect, or direct some person authorised by him in this behalf by order in writing to inspect, the books of the society.

(2) No inspection shall be made or directed under sub-section (1) unless the applicant-

• (a) satisfies the Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
• (b) deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require.

(3) Where an inspection is made under sub-section (1), the Registrar shall communicate the results of such inspection to the creditor, to the society, and to the financing bank, if any, to which the society is affiliated.

S.37 Inspection of books by financing bank

(1) A financing bank may cause an inspection to be made of the books of any registered society which is affiliated to it, and may direct such society to furnish such information, statements and returns as may be required.

(2) An inspection under sub-section (1) may be made by any of the officers of the financing bank or by any member of its paid staff approved by the Registrar by general or special order.

(3) The financing bank shall communicate the result of such inspection to the Registrar and to the society concerned.

S.38 Power to call for documents and to issue summons

The Registrar or any person authorised to audit the accounts of a society under Section 33 or to make an inspection or to hold an inquiry under section 34, 35, 36, or 37-

• (a) shall at all reasonable times have free access to the books, accounts, documents, securities, cash and other properties belonging to, or in the custody of, the society and may summon any person in possession of or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same at the office of the society or at any branch thereof or except in the case of a financing bank, at any place at its headquarters; and
• (b) may summon any person who, he has reason to believe, has knowledge of any of the affairs of the society to appear before him at the office of the society or at any branch thereof or, except in the case of a financing bank, at any place at its headquarters, and may examine such person on oath.

S.39 Costs of inquiry and inspection

Where an inquiry is held under section 35, or an inspection is made under section 36, the Registrar may, after giving the parties an opportunity of being heard and after recording the reasons, apportion the costs of such inquiry or inspection, or such part of the costs as he may think fit, between the society, the members or creditor demanding an inquiry or inspection and the officers or former officers of the society.

S.40 Surcharge

(1) Where as the result of an audit under section 33 or an inquiry under section 35, or an inspection under section 34, section 36, or section 37, or the winding up of a society, it appears to the Registrar that any person who has taken part in the organization or management of the society or any past or present officer of the society has-

• (a) made any payment which is contrary to law or to the rules or by-laws of the society, [or is against the directions or instructions of the financing bank for which the society is acting as agent under sub-section (3) of section 16,] or
• (b) by reason of his culpable negligence or misconduct, involved the society [or the financing bank for which it is acting as agent] under sub-section (3) of section 16, in any loss or deficiency, or
• (c) failed to bring into account any sum which ought to have been brought into account, or
• (d) misappropriated or fraudulently retained any property of the society, [or of the
  

S.41 Supersession of managing committee

(1) If, in the opinion of the Registrar, the managing committee of any registered society is mismanaging the affairs of the society, he may, by order in writing, after giving the managing committee an opportunity to state its objections, if any, dissolve the managing committee and order that all or any of its members shall be disqualified from being elected to the managing committee of the society for a period to be specified in the order not exceeding three years:

Provided that the Registrar may from time to time extend the period specified in such order for further periods not exceeding one year at a time and not exceeding in the aggregate, two years.

Every order of the Registrar under this sub-section shall state the reasons for which it is made and shall be communicated by registered post to the registered society concerned.

(2) When a managing committee is dissolved under sub-section (1), the society shall elect a fresh managing committee:

Provided

S.42 Winding up order

The Registrar may, by notification, order a registered society to be wound up if-

• (a) after an inquiry has been held under section 35 or an inspection made under section 34, section 36 or section 37, or on receipt of an application made by three-fourths of the members of the society, or of his own motion, in the case of a society that has not commenced working or has ceased working, he is of opinion that the society ought to be dissolved, or
• (b) it is a condition of the registration of the society that it should consist of at least ten members who have attained the age of eighteen years; and it is proved to the satisfaction of the Registrar that the number of the members has been reduced to less than ten.

S.43 Appeal against the order of winding up

(1) Any member of a society, in respect of which an order under section 42 has been passed may, within two months from the date of the publication of such order in the [Official Gazette] appeal to the [State] Government from such order.

(2) An order under section 42 shall not take effect until the expiry of two months from the date of the publication of such order in the [Official Gazette] or, if an appeal be preferred, unless and until it is confirmed by notification on appeal.

(3) The order of the [State] Government on appeal and, subject to the result of such appeal, if any, the order of the Registrar, shall be final.

S.44 Liquidation and dissolution

(1) Where the Registrar has passed an order for the winding up of a registered society, he shall appoint a person or persons to be liquidator of the society.

(2) Notwithstanding anything contained in sub-section (2) of section 13, a liquidator on appointment shall have power to take immediate possession of all assets belonging to the society and all books, records and other documents pertaining to the business thereof and to carry on the business of the society so far as may be necessary, and all the rights, duties assets and liabilities of the society shall be vested in and shall devolve upon the liquidator as such

(3) Subject to the Registrar's power of control and revision, such liquidator shall also have power,

• (a) to institute and defend suits and other legal proceedings on behalf of the society by his name of office;
• (b) to determine and realise all sums due to the society from any person;
• (c) to determine from time to time, subjec
  

S.45 Offences

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

• (a) an officer or member of a registered society intentionally neglects or refuses to do any act required to be done, or to furnish any information required to be furnished, by this Act or by any rule; or
• (b) an officer or member of a registered society willfully makes a false return or furnishes false information.

(2) Any officer or member of a registered society guilty of an offence under sub-section (1) shall be punishable with fine which may extend to fifty rupees.

S.46 Prohibition at the use of the word, 'co-operative'

(1) No person or society other than a registered society shall trade or carry on business under any name of title of which the word 'co-operative' is part without the sanction of the [State] Government:

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

(2) Any officer or member of a society or any person who contravenes the provisions of sub-section (1) shall be punishable with fine which may extend to fifty rupees, and, in the case of a continuing offence, with a further fine of five rupees for each day on which the offence is continued after conviction therefore.

S.47 Cognizance of offences

(1) No Court inferior to that of a Magistrate of the second class shall try any offence under this Act.

(2) Every offence under this Act shall, for the purposes of the Code of Criminal Procedure, 1898 (5 of 1898), be deemed to be non-cognizable.

(3) No prosecution for an offence under this Act shall be instituted without the previous sanction of the Registrar, and the Registrar shall nor sanction the prosecution of any person unless he has given such person an opportunity of being heard.

S.48 Disputes

(1) If any dispute touching the business of a registered society (other than a dispute regarding disciplinary action taken by the society fir its managing committee against a paid servant of the society) arises-

• (a) amongst members, past members, persons claiming through members, past members or deceased members, and sureties of members, past members or deceased members, whether such sureties are members or non-members; or
• (b) between a member, past member, persons claiming through a member, past member or deceased member, or sureties of members, past members or deceased members, whether such sureties are members or non-members, and the society, its managing committee or any officer, agent or servant of the society; or
• (c) between the society or its managing committee and any past or present officer, agent or servant of the society; or
• (d) between the society and any other registered society; [or]
• (e) between a financing bank authori
  

S.49 Registrar, liquidators and arbitrators to have certain powers of Civil Court

Subject to any rules, the Registrar, any person authorized to hold an inquiry under section 35 or an inspection under section 36, any liquidator, any person exercising the powers of a Registrar, or any arbitrator or arbitrators appointed under section 48, shall, in so far as such powers are necessary for carrying out any of the purposes of this Act, have power to summon and enforce the attendance of witnesses and parties concerned and to examine them upon oath and to compel the production of any books, accounts, documents or property by the same means and, so far as may be, in the same manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1896).

S.50 Attachment of property

(1) Where the Registrar is satisfied on the application of the liquidator or of a society that any person with intent to defeat or delay the execution of any order that may be passed against him under section 44 or 48-

• (a) is about to dispose of the whole or any part of his property; or
• (b) is about to remove the whole or any part of his property from the local limits of the jurisdiction of the Registrar,

the Registrar may, unless adequate security is furnished to his Satisfaction, direct the attachment of the said property or such part thereof, as he thinks necessary, and such attachment shall have the same effect as if it had been made by a competent Court.

(2) An order of attachment passed under sub-section (1) shall on the application of the Registrar, be executed by the Collector in whose jurisdiction the property lies, in the same manner as an order of a Revenue Court.

S.51 Enforcement of orders

Orders passed under sections 44, 48 and 50 shall, in addition to any other method of enforcement provided under this Act, on application, be enforced as follows:-

• (a) when passed by the Registrar, a liquidator or by an arbitrator or arbitrators, by any Civil Court having local jurisdiction in the same manner as a decree of such Court;
• (b) when passed by the District Judge, in the same manner as a decree of the District Judge made in any suit pending before him.

S.52 Recovery of sums due

Any sum payable by any person or by any registered society-

• (a) as fees for an audit held under section 33,
• (b) in accordance with an order of the Registrar under section 39 apportioning the costs of an inquiry or inspection,
• (c) in accordance with an order passed under section 40,
• (d) in accordance with an order of the Registrar or of a liquidator passed under section 44, or
• (e) in accordance with an order, decision or award passed or made under section 48,

shall be recoverable, as a public demand in any area, in which the Bihar and Orissa Public Demands Recovery Act, 1914 (B. & O. Act 4 of 1914), is in force, or as an arrear of land-revenue throughout the whole of [the State] and the Registrar or other person authorised by him in this behalf, shall be deemed to be the person to whom such public demand is due or to whom such arrear of land-revenue is payable.

S.53 Recovery of sums due to the Government

All sums due from a registered society or from an officer or: member, past or present, or from his sureties or from the estate of a deceased member of a registered society or from his sureties as such to the [Government], including any costs awarded to the [Government] may be recovered in the same manner as arrears of land-revenue.

S.54 Property from which sums due from a society can be recovered

All sums due from a registered society to the [Government] and all sums recoverable from a registered society under section 33, 39, 44 or 48 may be recovered firstly, from the property of the society; secondly, in the case of a society, the liability of the members of which is limited, from the members, past members or estates of deceased members or their sureties subject to the limit of their liability; and thirdly, in the case of other societies, from the members, past members or estates of deceased members or their sureties to such extent or in such proportion as may be determined by the Registrar.

S.55 Liability of past members

Notwithstanding anything contained in sections 53 and 54, the liability of past members and of the estates of deceased members shall in all cases be subject to the provisions of sections 32 and 63.

S.56 Power of revision by Registrar

The Registrar may on application or of his own motion revise any order passed by a person exercising the powers of a Registrar or by a liquidator under section 44.

S.57 Bar of jurisdiction of Courts

(1) Save in so far as expressly provided in this Act, no Civil or Revenue Court shall have any jurisdiction in respect of any matter concerned with the winding up or dissolution of a registered society under this Act, or of any dispute required by section 48 to be referred to the Registrar, [or of any proceedings, under Chapter VII-A.]

(2) While a society is in liquidation, no suit or other legal proceeding shall be proceeded with or instituted against the liquidator as such or against the society or any member thereof on any matter touching the affairs of the society, except by leave of the Registrar and subject to such terms as he may impose.

(3) No order of the [State] Government, District Judge, Registrar, a person appointed to assist the Registrar, liquidator, or an arbitrator or arbitrators purporting to be one, which under any provision of this Act is declared to be final, shall be liable to be challenged, set aside, modified, revised, or declared void in any C

S.Chapter VII-A Distraint

S.57A Cases in which application for distraint may be made

Where any debt or outstanding demand is due to a registered society from any member, past member or estate of deceased member, or is due to a registered society, which is duly authorised by the Registrar under any of the provisions of sub-section (1) of section 16 of this Act to grant loans to non-members, from any person who is not a member of a registered society or from the estate of such person if he is dead, the society may, in addition to any other remedy to which it is entitled by law, present an application to the Registrar requesting him to recover the debt or outstanding demand by distraining, while in the possession of the defaulter,-

• (1) any crops or other products of the earth standing or un-gathered on the holding of the defaulter;
• (2) any crops of other products of the earth which have been grown on the holding of the defaulter and have been reaped or gathered and are deposited on the holding or on a threshing floor or place for treading out gra
  

S.57B Form of application

(1) Every application under the last foregoing section shall specify-

• (a) the holding of the defaulter and the boundaries thereof, or such other particulars as may suffice for its identification)
• (b) the name of the defaulter;
• (c) the detailed account of the dues;
• (d) the nature and approximate value of the produce to be distrained;
• (e) the place where it is to be found, or such other particulars as may suffice for its identification; and
• (f) if it is standing or ungathered, the time at which it is likely to be cut or gathered.

(2) The application shall be signed and verified in the manner prescribed by the Code of Civil Procedure, 1908 (5 of 1908), for the signing and verification of plants.

S.57C Procedure on receipt of application

(1) The applicant shall, at the time of filing an application under the foregoing sections, file before the Registrar such documentary evidence (if any) as he may consider necessary for the purposes of the application.

(2) The Registrar may, after taking such evidence as he thinks fit, admit the application or reject it.

(3) Where the Registrar cannot forthwith admit or reject an application, he may, if he thinks fit, make an order prohibiting the removal of the produce specified in the application, pending the execution of an order for distraining the same or the rejection of the application.

(4) When an order for distraining any produce is made under this section at a considerable time before the produce is likely to be cut or gathered, the Registrar may suspend the execution of the order for such time as he thinks fit, and may, if he thinks fit, make a further order prohibiting the removal of the produce pending the execution of the order for distraint.

S.57D Execution of order for distraint

(1) If an application is admitted under the last foregoing section and an order for distraining any produce is made, the Registrar shall send a copy of the order containing the prescribed particulars to the Collector for execution.

(2) The Collector shall, upon receipt of the order referred to in sub-section (1), depute an officer to distrain the produce specified therein, or such portion of that produce as he thinks fit; and the officer shall proceed to the place where the produce is, and distrain the produce by taking charge of it himself or placing some other person in charge of it in this behalf, and publishing a notification of the distraint in accordance with rules to that effect made by the [State] Government:

Provided that produce, which from its nature does not admit of being stored, shall not be distrained under this section at any time less than twenty days before the time when it would be fit for reaping or gathering.

S.57E Service of demand and account

(1) The distraining officer shall, at the time of making the distraint, serve on the defaulter a written demand for the amount due and the costs incurred in making the distraint, with an account exhibiting the grounds on which the distraint is made.

(2) Where the distraining officer has reason to believe that a person other than the defaulter is the owner of the property distrained, he shall serve copies of the demand and account on that person likewise.

(3) The demand and account shall, if practicable, be served personally; but, if a person on whom they are to be served absconds or conceals himself or cannot otherwise be found, the officer shall affix-copies of the demand and account on a conspicuous part of the outside of the house in which he usually resides.

S.57F Right to reap, etc. produce

(1) A distraint under this Chapter shall not prevent any person from reaping, gathering or storing any produce, or doing any other act necessary for its due preservation.

(2) If the person entitled to do so fails to do so at the proper time, the distraining officer shall cause any standing crops or ungathered products distrained to be reaped or gathered when ripe, and stored in such granaries or other places as are commonly used for the purpose or in some other convenient place in the neighbourhood, or shall do whatever else may be necessary for the due preservation of the same.

(3) In either case the distrained property shall remain in the charge of the distraining officer, or of some other person appointed by him in this behalf.

S.57G Sale proclamation to be issued unless demand is satisfied

(1) Unless the demand, with all costs of the distraint, be immediately satisfied, the distraining officer shall issue a proclamation specifying the particulars of the property distrained, and the demand for which it is distrained, and notifying that he will, at a place and on a day specified not being less than three or more than seven days after the time of making the distraint, sell the distrained property by public auction:

Provided that when the crops or products distrained from their nature admit of being stored, but have not yet been stored, the day of the sale shall be so fixed as to admit of their being made ready for storing before its arrival.

(2) The proclamation shall be stuck up on a conspicuous place in the village in which the land of the defaulter is situate.

S.57H Place of sale

The sale shall be held at the place where the distrained property is, or at the nearest place of public resort if the distraining officer is of opinion that it is likely to sell there to better advantage.

S.57I When produce may be sold standing

(1) Crops or products which from their nature admit of being stored shall not be sold before they are reaped or gathered and are ready for storing.

(2) Crops or products which from their nature do not admit of being stored may be sold before they are reaped or gathered, and the purchaser shall be entitled to enter on the land by himself, or by any person appointed by him in this behalf, and do all that is necessary for the purpose of tending and reaping or gathering them.

S.57J Manner of sale

The property shall be sold by public auction, in one or more lots as the officer holding the sale may think advisable; and if the demand, with the costs of distraint and sale, is satisfied by the sale of a portion of the property, the order of distraint shall not be executed with respect to the remainder.

S.57K Postponement of sale

If, on the property being put up for sale, a fair price (in the estimation of the officer holding the sale) is not offered for it, and if the owner of the property, or a person authorised to act in his behalf, applies to have the sale postponed till the next day, or (if a market is held at the place of sale) the next market-day, the sale shall be postponed until that day, and shall be then completed, whatever price may be offered for the property.

S.57L Payment of purchase money

The price of every lot shall be paid at the time of sale, or as soon thereafter as the officer holding the sale directs, and in default of such payment the property shall be put up again and sold.

S.57M Certificate to be given to purchaser

When the purchase-money has been paid in full, the officer holding the sale shall give the purchaser a certificate describing the property purchased by him and the price paid.

S.57N Proceeds of sale Low to be applied

(1) From the proceeds of every sale of distramed property under this Chapter, the officer holding the sale shall pay the costs of the distraint and sale, calculated on a scale of charges prescribed by rules to be made, from time to time, by the [State] Government in this behalf.

(2) The remainder shall be applied to the discharge of the amount due for which the distress was made, with interest thereon up to the day of sale; and the surplus (if any) shall be paid to the person whose property has been sold.

S.57O Section 57O

Officers holding sales of property under this Chapter and all persons employed by, or subordinate to, such officers and all officers and members of the staff of registered societies are prohibited from purchasing, either directly or indirectly, any property sold by such officers.

S.57P Procedure where demand is paid before the sale

(1) If at any time after a distraint has been made under this Chapter, and before the sale of the distrained property, the defaulter, or any person making a bona fide claim as the owner of the distrained property, where he is not the defaulter, deposits with the Collector executing the order of distraint, or in the hands of the distraining officer, the amount specified in the demand served under section 57-E., with all costs which may have been incurred after the service of the demand the Collector or officer, as the case may be, shall grant a receipt for the same, and the order of distraint shall not be executed.

(2) When the distraining officer receives the deposit, he shall forthwith pay it to the Collector.

(3) After the expiration of one month from the date of a deposit being made under this section, the Collector shall pay therefrom to the applicant for distraint the amount due to him, unless in the meanwhile the person making a bona fide claim as the owner of t

S.57Q Distraint of property which is under attachment

When any conflict arises between an order for distraint issued under this Chapter and an order issued by a Civil Court for the attachment or sale of the property which the subject of the distraint the order for distraint shall prevail; but if the property is sold under that order the proceeds of the sale shall not be paid under section 57-N to the owner of the property without the sanction of the Court by which the order of attachment or sale was issued.

S.57R Suit for compensation tor wrongful distraint and appeals

No appeal shall lie from any order passed by the Registrar or a Collector under this Chapter; but any person whose property is distrained on an application made under section 57-A, in any case in which such an application is not permitted by that section, may institute a suit against the applicant for the recovery of compensation:

Provided that, if such an order is passed by an Assistant Registrar or Deputy Registrar exercising the powers of a Registrar, an appeal shall lie to the Registrar and his decision on such appeal shall be final.

S.57S Power to make rules

The [State] Government may, from time to time, make rules for regulating the procedure in all cases under the foregoing provisions of this Chapter.

S.57T Interpretation

In this Chapter, unless there is anything repugnant in the subject or context,-

• (a) "Collector" includes an officer appointed by the [State] Government to discharge any of the functions of a Collector under this Chapter;
• (b) "defaulter" means a person (including his legal representative if he is dead) from whom any such debt or outstanding demand as is referred to in section 57-A, is recoverable; and
• (c) "holding" means any land used for agricultural or horticultural purposes.

S.58 Registrar and other officers to be public servants

The Registrar, a person exercising the powers of a Registrar, a person authorized to make an inspection under section 34 or 36 or to hold an inquiry under section 35, a liquidator and an arbitrator or arbitrators to whom any dispute is referred under section 48, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

S.59 Proof of entries in societies books

(1) A copy of an entry in a Book, register or list of a registered society regularly kept in the course of business, shall, if certified in such manner as may be prescribed by the rules, be admissible in evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry would, if produced, have been admissible to prove such matters, transactions and accounts.

(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, unless by order of the Court or a Judge made for special cause.

S.60 Delegation of power to hear appeals

The [State] Government may, by general or special order, delegate its power of hearing appeals under the provisions of this Act, except the power of hearing appeals under sections 26, 40 and 41, to any authority Specified in such order.

S.61 Compulsory affiliation of registered societies to a Co-operative Federation

(1) The [State] Government may, by general or special order, direct that all or any registered societies situated within a specified area shall be affiliated to a Co-operative Federation in such manner and on such conditions as the [State] Government may direct.

(2) The [State] Government may, by general or special order, regulate, from time to time, the constitution and functions of any Cooperative Federation in respect of which an order of compulsory affiliation may have been passed under sub-section (1).

S.62 Exemptions from requirements as to registration

(1) Notwithstanding anything contained in this Act, the [State] Government may, by special order in each case and subject to such conditions, if any, as it may impose, exempt any society from any of the requirements of this Act as to registration.

(2) The [State] Government may, by general or special order, exempt any registered society from any of the provisions of this Act, or may direct that such provisions shah apply to such society with such modifications as may be specified in the order.

S.63 Limitation

Notwithstanding any of the provisions of the Indian Limitation Act, 1908 (IX of 1908), the period of limitation for debt including interest due to a registered society by a member thereof shall be computed from the date on which such member dies or ceases to be a member of the society.

S.64 Power to exempt from income-tax stamp-duty and registration fees

(1) The [Central Government], by notification in the [Official Gazette,] may, in the case of any registered society or class of registered societies, remit the income-tax payable in respect of the profits of the society, or of the dividends or other payments received by the members of the society on account of profits.

(2) The [collecting Government] may by notification remit, in the case of any registered society or class of registered societies-

• (a) the stamp duty with which, under any law for the time being in force, instruments executed by or on behalf of a registered society or by an officer or member thereof and relating to the business of such society or any class of such instruments, or decisions, awards or orders of the Registrar or of any arbitrator or arbitrators under this Act, are respectively chargeable; and
• (b) any fee payable under the law of registration for the time being in force.

In this sub-section "collecting Governme

S.65 Exemption from compulsory registration of instruments relating to shares and debentures of a registered society

Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act, 1908, shall apply to-

• (1) any instrument relating to shares in a registered society, notwithstanding that the assets of such society consist in whole or in part of immovable property; or
• (2) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immoveable property except in so far as it entitles the holder to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
• (3) any endorsement upon or transfer of any debenture issued by any such society.

S.66 Power to make rules

(1) The [State] Government may, for the whole or any part of the [State] and for any registered society or a class of registered societies, make rules to carry out all or any of the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may-

• (i) prescribe the forms to he used and the conditions to be complied with in the making of applications for the registration of a society and the procedure in the matter of such application;
• (ii) prescribe the conditions to be complied with by persons applying for admission or admitted as members, and provide for the election and admission of members and the payment to be made and the interests to be acquired before the exercise of the rights of membership;
• (iii) prescribe the extent to which a society may limit the number of its members and, subject to the provisions of section 29 prescribe the maximum number of shares or portion of the capital of
  

S.67 Repeals

The enactments specified in the schedule are hereby repealed in so far as they apply to [the States] to the extent specified in the fourth column of the said schedule.