Gujarat act 023 of 1982 : Gujarat Co-operative Societies (Amendment and Validation) Act, 1982

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Gujarat Co-operative Societies (Amendment and Validation) Act, 1982.

(2) It shall be deemed to have come into force on the 27th April, 1982.

Section 2. Insertion of ??? section 17 ??? in Guj. X of 1962

2. Insertion of ??? section 17 ??? in Guj. X of 1962.- In the Gujarat Co-operative Societies Act, 1961 (hereinafter referred to as "the principal Act"), after section 17, the following new section shall be inserted, namely (Guj. X of 1962):-

"17A. Power to direct ??? and ??? of section in public interest etc.- (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-organised, then, not withstanding 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 these societies into a single society or, as the case may be for the re-organisation of that society, with such cons it mien, 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-organised society, the persons who shall be, or continue to be the officers of such society and the period after which such committee or committees may be re-constituted.

(2) No order shall be made under this section unless-

(a) a copy of the draft of the proposed order has been sent to the society or each of the societies concerned;

(b) the Registrar has considered suggestions and objections if any received either from the society or from any member or class of members thereof or from any creditor or class of creditors within such period (not being less than one month from the date on which the copy of the order as aforesaid was received by the society) as the Registrar may fix in that behalf, and has, if necessary, modified the same in the light of such suggestions and objections.

(3) The order referred to in sub-section (1) may contain such incidental, consequential and supplemental provisions as may, in lie opinion of the Registrar, be necessary to give effect to the amalgamation or re-organisation.

(4) Every member of each of the societies so amalgamated, shall be deemed to be a member of the new amalgamated society, and every member of the society so re-organised shall be deemed to be a member of the new re-organised society and all such members shall have all rights, privileges and liabilities of the members of the concerned new society:

Provided that any member of the new society so amalgamated, or reorganised may within such period and in such manner as may be prescribed, resign his membership of the new society and on such resignation he shall be entitled to withdraw his share and any other dues and interest in the society.

(5)(a) On the issue of an order under sub-section (1) in respect of any societies or society, notwithstanding anything contained in any law for the time being in terce, all the assets, rights and liabilities of the amalgamating societies, or, as the cast may be, the original society which is re-organised shall stand transferred to, and vest in, the new amalgamated society, or, as the case may be, the new re-organised society;

(b) the provisions of sub-sections (3) and (4) of section 17 and the provisions of section 18 shall apply in relation to the amalgamation or re-organisation of the societies under this section as if-

(i) the order of amalgamation were a resolution of societies concerned with amalgamation, and

(ii) the original society was re-organised under section 17.".

Section 3. Amendment of section 22 of Guj. X of 1962

3. Amendment of section 22 of Guj. X of 1962.- In section 22 of the principal Act,-

(1) in sub-section (1),-

(i) in clause (b), for the word "association" the words "or any other body corporate constituted under any law for the time being in force" shall be substituted.

(ii) after clause (d), the following new clauses shall be inserted, namely:-

(e) a local authority;

(f) a public trust registered or deemed to have been registered under the Bombay Public Trusts Act, 1950 (Bom. XXIX of 1950);";

(iii) in the second proviso, for the words "a firm or company" the words "a firm or a company or other body corporate constituted under any law for the time being in force" shall be substituted;

(2) for sub-section (2), the following sub-sections shall be substituted, namely:-

"(2)(a) Every person seeking admission as a member of a society of such class as may be notified by the State Government in the Official Gazette in this behalf, shall, if he is duly qualified for membership of such society under the provisions of this Act, the rules and the bye-laws of the society, be deemed to have become a member of such society on the date of receipt by the society of the application for admission made by such person.

(b) Where such society refuses to accept the application or admission as a member, or the payment in respect of membership made by such person, such person may tender such application, together with payment in respect of membership, if necessary, to the Registrar, who shall, on receipt of the same, forthwith, forward them to the society concerned and thereupon such member shall be deemed to have become a member of such society on the date of receipt by the society of such application and the payment for membership, if any, from the Registrar.

(c) Where the society is of the opinion that such person is not qualified for being a member of the society or that he may not be continued as its member, such society may, within a period of three months from the date of receipt of his application for admission under clause (a), or, as the case may be, clause (b), move the Registrar by an application in writing stating all grounds in support thereof, for a declaration that such person shall cease to be its member with effect from such date as may be specified by the Registrar, in such declaration.

(d) On receipt of the application under clause (c), the Registrar shall after making such inquiry as he thinks fit and for reasons to be recorded in writing make an order either rejecting the application of the society or accepting the application of the society and declaring that such person shall cease to be its member with effect from such date as may be specified in such order:

Provided that no order accepting the application of the society and making a declaration as aforesaid shall be made by the Registrar under this clause unless an opportunity of being heard is give to the person concerned.

(e) The decision of the Registrar under clause (d) shall be final and shall not be called in question in any Court.

(3) Notwithstanding anything contained in sub-section (1), the State Government, may, having regard to the fact that the interest of any person or closes of persons engaged in or carrying on any profession, business or employment conflicts or is likely to conflict with the objects of any society or class of societies by general or special order published in the Official Gazette, declare that such person or such class on persons shall be disqualified from being admitted, or for continuing, as member or members or shall be eligible for membership only to a limited extent, of any society or class of societies, so long as such person or persons are engaged in or carry on that profession, business, or employment as the case may be.".

Section 4. Amendment of section 23 of Guj. X of 1962

4. Amendment of section 23 of Guj. X of 1962.- In the principal Act, in section 23, in sub-section (2), for the words, brackets and figures "under sub-section (1)" the words, brackets and figures "under sub-section (3) of section 22 or under sub-section (1)" shall be substituted.

Section 5. Amendment of section 24 of Guj. X of 1962

5. Amendment of section 24 of Guj. X of 1962.- In the principal Act, for section 24, the following section shall be substituted, namely:-

"24. Open membership.- (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 mouths from be; date of receipt by the society of the application for admission made by such person.

(4) Any society aggrieved by the admission on a member under sub-section (2) or any person aggrieved by the decision on the society refusing him its membership under sub-section (3) may appeal to the Registrar.

(5) An appeal under sub-section (4) shall be made within a period of two months from the date of communication to him of the decision of the society, or, as the case may be, from the date of the expiry of the period of three months specified in sub-section (2).

(6) The decision of the Registrar in appeal shall be final and shall not be called in question in any court.

(7) Nothing in this section shall apply to a society belonging to a case notified under sub-section (2) of section 22."

Section 6. Substitution of section 28 of Guj. X of 1962

6. Substitution of section 28 of Guj. X of 1962.- In the principal Act, for section 28, the following section shall be substituted, namely:-

"28. Voting powers of members.- (1) No member of any society shall have more than one vote in its affairs:

Provided that in the case of an equality of vote the Chairman shall have a casting vote.

(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:

Provided that such person is present and is not a minor:

Provided further that where the manner of voting is by ballot, all the joint holders of the share may appoint one of them to vote on their behalf in the affairs of the society.

(3) A society which has invested any part of is 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:

Provided that the first society shall not appoint any of its members who is also its paid employee.

(4) A company or any other body corporate constituted under any law for the time being in force which has invested any pan of its funds in the shares of a society may appoint any one of its directors or officers to vote on its behalf in the affairs of such society; and accordingly such director or officer shall have the right to vote on behalf of the company or the body corporate, as the case may be.

(5) Where a firm has invested any part of its funds in the shares of a society, any one of its partners appointed by the firm shall be entitled to vote in the affairs of the society on behalf of the firm.

(6) A local authority or public trust which has invested any part of its funds in the shares of a society may appoint any of is members or trustees to vote on its behalf in the affairs of that society; and accordingly, such person shall have the right to vote on behalf of the local authority or the public trust, as the case may be.

(7) No nominal or sympathiser member shall have the right to vote and no such member shall be eligible to be a member of a committee or for appointment as a representative of the society on any other society.

(8) The voting rights of individual members "if a federal society shall be such as may be regulated by the rules and by the bye-laws of the society.".

Section 7. Amendment of section 42 of Guj. X of 1962

7. Amendment of section 42 of Guj. X of 1962.- In the principal Act, in section 42, in clause (a), after the words "in it society", the words "not being a housing society", shall be inserted.

Section 8. Amendment of section 51 of Guj. X of 1962

8. Amendment of section 51 of Guj. X of 1962.- In the principal Act, section 51 shall be renumbered as sub-section (1) of that section and after sub-section (1) as so renumbered, the following sub-section shall be added, namely:-

"(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."

Section 9. Substiution of section 69 of Guj. X of 1962

9. Substiution of section 69 of Guj. X of 1962.- In the principal Act, for section 69, the following section shall be substituted, namely:-

"69. Contribution to education fund of Gujarat State Co-operative Union.- (1) Every society shall contribute every year to the education fund of the Gujarat State Co-operative Union a sum equal to such percentage not exceeding one percentage of its income, as may be prescribed and different percentages may be prescribed for different classes of societies, having regard to financial condition of such class of societies.

(2) Every society shall pay its contribution to the said fund, within two months from the date on which its accounts are adopted by he general body of members at its annual general meeting. Any officer wilfully failing to comply with the requirement of this section shall be personally liably for making good the amount to the Gujarat State Co-operative Union.

Explanation.-In this section-

(a) The expression "Gujarat State Co-operative Union," means a federal society established for the State of Gujarat with the object of giving training facilities for familiarising, promoting or encouraging in co-operative movement; and

(b) the expression "income" means gross annual income.".

Section 10. Amendment of section 74-A of Guj. X of 1962

10. Amendment of section 74-A of Guj. X of 1962.- In the principal Act, in section 74A,-

(1) in sub-section (2),-

(a) for the word and figure "Category III" the words and figures "Category III or Category IV" shall be substituted;

(b) for the words "in the three categories" the words "in the four categories" shall be substituted;

(c) under the heading Category II,-

(i) in clause (a), the words, letters and figures "and the authorised share capital of which is more than Rs. 10 lakhs" shall be deleted;

(ii) clause (c) shall be deleted;

(d) for the heading Category III and the portion thereunder, the following shall be substituted, namely:-

"Category III: Societies the area of operation of which does not extend to the whole of a district but extends to more than one taluka in a district.

Category IV: Such societies (the area of which extends to a taluka or less than a taluka) as the State Government may, having regard to their share capital, financial position and the public interest involved in their operation, by notification in the Official Gazette specify."

(2) in sub-section (5)-

(a)(i) for the words "ten years" wherever they occur the words "six years" shall be substituted; and

(ii) for the words "five years" the words "three years" shall be substituted

(b) for the Explanation, the following Explanation shall substituted, namely:-

"Explanation.-For the purposes of this sub-section;

(a) in calculating the consecutive period of six years in office, any period for which the person concerned play have been such of officer, before the commencement of the Gujarat Co-operative Societies (Amendment) Ordinance, 1982 (Guj. Ord. 1 of 1982), shall be excluded,

(b) if any person resigns is office as a designated officer at any time within twelve months from the date on which the consecutive period of six years would, but for his resignation, have been completed, he would be deemed to have completed a period of six years on his resignation.".

Section 11. Amendment of section 74-B of Guj. X of 1962

11. Amendment of section 74-B of Guj. X of 1962.- In the principal Act, in section 74B,-

(1) for sub-section (1), the following sub-section shall be substituted, namely:-

"(1) 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:-

(a) one for the persons belonging to the Scheduled Castes or the Scheduled Tribes or to both the Scheduled Castes and the Scheduled Tribes as the State Government may, having regard to the population of the Scheduled Castes and the Scheduled Tribes in the area of operation of the society, specify, and

(b) one for the persons who are small farmers and marginal farmers."

(2) in sub-section (2), for the words "from amongst persons eligible to fill the reserved seats", the words "from amongst other members" shall be substituted;

(3) in the Explanation, after clause (1), the following dame shall be inserted, namely:-

"(1A) the expression "population" in relation the area of operation of a society means the population of that area as ascertained at he last preceding census."

Section 13. Insertion of new section 74-D in Guj. X of 1962

13. Insertion of new section 74-D in Guj. X of 1962.- In the principal Act, after section 74C, the following section shall be inserted, namely:-

"74D. Appointment of custodian in certain circumstances.- (1) Where in respect of any society including a society existing immediately before the commencement of the Gujarat Co-operative Societies (Amendment) Ordinance, 1982 (Guj. Ord. 1 of 1982) a new committee of management is, for any reason whatsoever, not elected or having been elected not functioning, within a period of six months after 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) 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.

(2) The custodian so appointed shall, subject to the control of the Registrar and to such instruction as he may from time to 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.

(3) All acts done or purported to be done by the custodian during the period when the affairs of the society are carried on by such custodian, shall be binding on the new committee of management."

Section 14. Insertion of new section 75-A in Guj. X of 1962

14. Insertion of new section 75-A in Guj. X of 1962.- In the principal Act, after section 75, the following section shall be inserted, namely:-

"75A. Restriction on rates of sitting fees and traveling and daily allowances of members of Committee.- Notwithstanding anything contained in the bye-laws of a society-

(1) no society shall prescribe nor a member of committee thereof shall be entitled to sitting fees, and travelling and daily allowances while touring on public business, at rates exceeding such rates as may be prescribed, and

(2) 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-

(a) a journey for attending any meeting of the committee;

(b) a journey in connection with the performance of any other functions of the committee;

(c) a journey for attending any conference sponsored by-

(i) the Central Government,

(ii) a State Government,

(iii) any co-operative institution, or

(iv) such other institutions recognized by the State Government in this behalf.".

Section 15. Insertion of new sections 76A and 76-B in Guj. X of 1962

15. Insertion of new sections 76A and 76-B in Guj. X of 1962.- In the principal Act, after section 76, the following sections shall be inserted, namely:-

"76A. Appointment or removal of Managing Director or Chief Executive officer to be approved.- (1) No Managing Director or Chief Executive Officer of such society or a society falling within such class of societies as the State Government may, by notification in the Official Gazette, specify (hereinafter in this section referred to as "the notified society"), or person exercising the powers and performing the functions and duties of the Managing Director or Chief Executive Officer of such notified society by whatever designation known, shall be appointed or removed by such notified society except with the previous approval of the Registrar.

(2) Any appointment or removal of a Managing Director or a Chief Executive Officer or a person exercising the powers and performing the functions and duties of such Director or officer made without the previous approval of the Registrar shall be void.

76B. Removal of officer.- (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 ad or the rules or the bye-laws or does anything which is prejudicial to the interests 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 appointed shall hold office so long only as the officer in whose place he is elected or appointed 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 and in any other society for a period not exceeding four years from the date of the order and such officer shall stand disqualified accordingly."

Section 16. Amendment of section 80 of Guj. X of 1962

16. Amendment of section 80 of Guj. X of 1962.- In the principal Act, section 80 shall be renumbered as sub-section (1) of that section and after sub-section (1), as so renumbered, the following sub-section shall be added, namely:-

"(2) Where the State Government is of the opinion that having regard to the public interest involved in the operation of a society it is necessary or expendient so to do, it may nominate its representatives on the committee of such society as if the State Government had subscribed to the share capital of the society and the provisions of sub-section (1) shall, so far as may be apply to such nomination.".

Section 17. Insertion of new section 80A in Guj. X of 1962

17. Insertion of new section 80A in Guj. X of 1962.- In the principal Act, after section 80, the following new section shall be inserted, namely:-

"80A. Extension of term of nominated, committee or appointment of custodian.- (1) Where on the expiry of the term of office of the members of any committee of management nominated 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 expendient so to do, it or he may, by an order published in the Official Gazette,-

(a) extend the term of office of the members of the said committee of the management; or

(b) appoint a person or a committee of persons to be the custodian of the society;

for such period not exceeding two years in the aggregate or until a new committee of management is elected, whichever is earlier.

(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 exercise all or any of the functions of the Committee, and take all such actions as may be required in the interests of the society.

(3) All acts done or purported to be done by the custodian during the period when the affairs of the society are carried on by the custodian appointed under sub-section (1) shall be binding on the new committee of management.".

Section 18. Amendment of section 81 of Guj. X of 1962

18. Amendment of section 81 of Guj. X of 1962.- In the principal Act, in section 81-

(1) for sub-section (1), the following sub-section shall be substituted, namely:-

"(1) If in respect of a committee of a Society having the Registrar as it? 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-

(a) persistently makes default or, is negligent in the performance on the duties imposed on it by this Act or the rules or the by-laws, or does anything which is prejudicial to the interest of the society or its members, or

(b) fails to comply with any directions issued under sub-section (1) of section 160, or such directions as modified under sub-section (2) of that section,

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 objections, if any, within fifteen days from the date of issue of notice, by order he writing, remove the Committee; and appoint.-

(i) a committee, consisting of one or more members of the society, in its place, or

(ii) one or more administrators who need not be members of the society.

to manage the affairs of the society for a period not exceeding two years as may on specified in the order, such Perot may, at the discretion of the Registrar, be extended from time to time, so, however, that the total period does not exceed four years in the aggregate.";

(2) in sub-section (3), for the words, brackets, letter and figure "referred to in clause (b) of sub-section (1)," the words, brackets and figure "referred to in sub-section (1)" shall be substituted.

Section 19. Substitution of section 83 of Guj. X of 1962

19. Substitution of section 83 of Guj. X of 1962.- In the principal Act, for section 83, the following section shall be substituted, namely:-

"83. Registrars power to ??? records, etc.- (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 unreasonably refuses to give possession of the records, funds and property, the Registrar may issue an order directing the person duly authorised by him in writing to seize and take possession of such books and records, funds and property of the society, and the officer of the society responsible for 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 authorised. 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 authorised by him may apply to the Executive Magistrate within whose jurisdiction the society is functioning for seizing and taking the possession of the records and property of the society.

(2) On receipt of an application under sub-section (1), the Magistrate may authorise any police officer not below the rank of a Sub-Inspector to enter and search any place where the records and property are kept or likely to be kept and to seize them and hand over possession thereof to the Registrar or the person authorised by him, as the case may be.".

Section 20. Amendment of section 84 of Guj. X of 1962

20. Amendment of section 84 of Guj. X of 1962.- In the principal Act, in section 84, for sub-section (7), the following sub-sections and Explanation shall be substituted, namely:-

"(7) For auditing the accounts of a society under this section, every society shall be liable to pay to the Registrar, or, as the case may be, to the auditor, audit fee,-

(i) in relation to any period beginning from the date of the commencement of this Act and ending on the day immediately before the date of general or, as the case may be, special order made under clause (ii), at the existing rates;

(ii) in relation to any other period at such rates to scales as the State Government may, from time to time, by general or special order, determine.

(8) The State Government may, if it considers it necessary to do so in public interest, exempt, by notification in Official Gazette and for reasons to be specified therein, any society or class of societies wholly or partially from payment of audit fees.

(9) The amount of audit fees payable by any society for any period, whether before or after the commencement of this Act, shall be deemed to be a sum due to the Government for the purpose of section 157.

Explanation.-For the purpose of clause (i) of sub-section (7), "existing rates" means the rates of fees for auditing the accounts of societies, which were in force immediately before the commencement of this Act under the Bombay Co-operative Societies Act, 1925 (Bom. VII of 1925) as then in force and such rates shall be deemed to be the rates or scales prescribed under sub-section (7) as in force during the period referred to in the said clause (i)".

Section 21. Substitution of section 88 in Guj. X of 1962

21. Substitution of section 88 in Guj. X of 1962.- In the principal Act, for section 88, the following section shall be substituted namely:-

"88. Inspection of books by Registrar or ??? bank or federal society.- (1)(a) The Registrar or the person authorised 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.

(b) Every person who is or has at any time been an officer or employee of the society and every member and past member of the society shall furnish such information in regard to such transactions and working of the society as the Registrar or the person authorised by him may require.

(2) Where a society is indebted to any co-operative financing bank, such bank shall have the right to inspect the books of that society. The inspection may be made either by an officer of the bank authorised by the committee of such bank or by a member of its paid shall certified by the Registrar as competent to undertake such inspection. The officer or member so inspecting shall at all reasonable times, have free access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the society and may also call for such information, statements and returns, as may be necessary, to ascertain the financial condition of the society and the safety of the sums lent to it by the bank.

(3) Where a society is a member of a federal society recognised by the State Government under section 95 such federal society shall have the right to inspect the books of that society. The inspection may be made either by an officer of the federal society authorised by the committee of such federal society or by a paid employee on such federal society certified by the Registrar as competent to undertake such inspection. Such officer or employee shall at all reasonable times have free access to the books, accounts, documents, securities, cash and other properties belonging to, or in the custody of the society and may also call for such information, statements and returns as may be necessary,".

Section 22. Amendment of section 101 of Guj. X of 1962

22. Amendment of section 101 of Guj. X of 1962.- In the principal Act, section 101 shall be renumbered as sub-section (1) of that section and after sub-section (1), as so renumbered, the following sub-sections shall be inserted, namely:-

"(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 deposit such sum as may, in his or its opinion, be considered reasonable to meet the expenses including the payment of fees, that may be payable of the Registrar, his nominee or, as the case may be, the board of nominees, in pursuance of the award to be made under sub-section (1).

(3) The Registrar may, having regard to the nature of the cause of action or subject matter of a dispute, the nature of relief that may be claimed in a dispute and such other matters, specify by a general or special order, the scale of fees and expenses that may be made payable to him or his nominee or, as the case may be, the board of nominees, by or under an award made under sub-section (1)."

Section 23. Amendment of section 106 of Guj. X of 1962

23. Amendment of section 106 of Guj. X of 1962.- In the principal Act, in section 106,-

(1) in sub-section (1),-

(i) after the words and figures "Bombay Agricultural Debtors Relief Act, 1947 (Bom. XXV III of 1947)" the words "or undertaking medium term finance" shall be inserted;

(ii) for the words "financing of crops or seasonal finance" the words "financing of crops, seasonal finance or medium term finance" shall be substituted;

(iii) the following Explanation shall be inserted at the end, namely:-

"Explanation.-In this sub-section "medium term finance" means 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 Debtors Relief Act, 1947 (Bom. XXV, III of 1947)."

(2) after sub-section (1), the following new sub-section shall be inserted, namely:-

"("1-A) If a society referred to in sub-section (1) fails to make an application under that sub-section, then, if such society is a member of any co-operative financing bank such co-opera live financing bank may direct such society to take such action and if the society fails to take action in pursuance of such direction, the co-opcrative financing bank may itself make an application under sub-section (1) on behalf of the society.";

(3) in sub-section (2), for the words, brackets and figure "Where the Registrar is satisfied that a society has failed to take action under sub-section (1)" the words, brackets, letter and figures "Where the Registrar is satisfied that a society or the co-operative financing bank to which such society is affiliated has failed to make an application under sub-section (1) or, as the case may be, under sub-section (I-A)" shall be substituted.

Section 24. Amendment of section 107 of Guj. X of 1962

24. Amendment of section 107 of Guj. X of 1962.- In the principal Act, in section 107, in sub-section (1), in clause (c),-

(a) in sub-clause (iv), for the words "the rules or the by-laws", the words "the rules or the by-laws or" shall be substituted;

(b) after sub-clause (iv), the following sub-clause shall be inserted, namely.

"(v) has failed to comply with any directions issued under sub-section (1) of section 160 Or such directions as modified under sub-section (2) of that section".

Section 25. Amendment of section 108 of Guj. X of 1962

25. Amendment of section 108 of Guj. X of 1962.- In the principal Act, in section 108, for sub-section (3), the following sub-section shall be substituted, namely:-

"(3) When a final order is made confirming the interim order, the officers of the society-

(a) shall hand over to the liquidator the custody and control of any property, effects and actionable claims and any books, records, and other documents pertaining to the business of the society, which for any reason are not handed over to the liquidator under sub-section (2) at the time when an interim order was made,

(b) shall vacate their offices and while winding up order remains in force, the general body of the society shall not exercise any power?.".

Section 26. Amendment of section 116 of Guj. X of 1962

26. Amendment of section 116 of Guj. X of 1962.- In the principal Act, in section 116,-

(1) for clause (i), the following shall be substituted, namely:-

"(i) improvement and development of agriculture and productive purposes."

(2) in clause (iii) the word "or" occurring at the end shall be deleted;

(3) after clause (iv), the following clauses shall be inserted, namely:-

"(v) the purchase of agricultural lands by agriculturists whose agricultural lauds have been acquired for any public purpose under the Land Acquisition Act, 1894 (1 of 1894) or any other law for the time being in force;

(vi) promoting the development of animal husbandry, dairy farming, poultry farming, pisciculture or fishery; or

(vii) purchase of shares in a co-operative society engaged in the manufacture of sugar."

(4) in Explanation 2,-

(a) for the words "Land improvement and productive purposes" the words "Productive purposes" shall be substituted;

(b) in clause (n), for the words "Land improvement or productive purposes" the words "productive purposes" shall be substituted.

Section 27. Amendment of section 145A of Guj. X of 1962

27. Amendment of section 145A of Guj. X of 1962.- In the principal Act, in section 145A, for the figures and letter "145Y" the figures and letter "145Z" shall be substituted.

Section 28. Deletion of section 145-G and 145-H of Guj. X of 1962

28. Deletion of section 145-G and 145-H of Guj. X of 1962.- In the principal Act, sections MSG and 145H shall be deleted.

Section 29. Amendment of section 145-J of Guj. X of 1962

29. Amendment of section 145-J of Guj. X of 1962.- In the principal Act, in section 145J, clause (5) shall be deleted.

Section 30. Amendment of section 145-U of Guj. X of 1962

30. Amendment of section 145-U of Guj. X of 1962.- In the principal Act, in section 145U-

(1) for the words "State Government" wherever they occur the word "Tribunal" shall be substituted;

(2) for the word "Government" occuring at two places the word "Tribunal" shall be substituted;

(3) in sub-section (4), for the words "Subject to any rules" the words "Subject to any regulations" shall be substituted.

Section 31. Amendment of section 145V of Guj. X of 1962

31. Amendment of section 145V of Guj. X of 1962.- In the principal Act, in section 145V,-

(1) for the words "State Government" the word "Tribunal" shall be substituted;

(2) for the word "Government", wherever it occurs except at the last place the word "Tribunal" shall be substituted.

Section 32. Amendment of section 147 of Guj. X of 1962

32. Amendment of section 147 of Guj. X of 1962.- In the principal Act, in section 147, in sub-section (1) after clause (g), following clause shall be inserted, namely:-

"(g-i) a committee of a society or a member thereof fails to comply with the provisions of section 75A;"

Section 33. Amendment of section 148 of Guj. X of 1962

33. Amendment of section 148 of Guj. X of 1962.- In the principal Act, in section 148, in sub-section (1),-

(1) after clause (g), the following clause shall be inserted, namely:-

"(g-i) if it is an offence under clause (g-i) of that section, with imprisonment for a term which may extend to six months or with tine which may extend to five hundred rupees, or with both;"

(2) in clause (i), for the words "with fine which may extend to five hundred rupees" the words "with imprisonment for a term which any extend to three months, or with fine which may extend to one thousand rupees, or will both" shall be substituted;

(3) in clause (o), for the words "one hundred rupees" the words ‘five hundred rupees’ shall be substituted.

Section 34. Amendment of section 176 of Guj. X of 1962

34. Amendment of section 176 of Guj. X of 1962.- In the principal Act, in section 156, in sub-section (1),-

(1) for clause (ii), the following clause shall as substituted, namely:-

"(ii) Minister of State dealing with the co-operative ??? the State or in the absence of such Minister of State, Deputy Minister dealing with that subject shall be ex-officio Vice-Chairman li there is neither such Minister of as at nor such Deputy Minister, the Viec-Chairman shall be elected by the council from amongst its members."

(2) the following proviso shall be added at the end, namely:-

"Provided that during the operation of a Proclamation issued under clause (1) of article 356 of the Constitution, the Chairman and the Vice-Chairman shall be appointed by the Governor.".

Section 35. Substitution of new action 160 in Guj. X of 1962

35. Substitution of new action 160 in Guj. X of 1962.- In the principal Act, for section 160, the following section shall be subtitled, namely:-

"160. Register's power to give ???.- (1) If the Registrar of his own motion or otherwise is satisfied that in public interest or for the purposes of securing the proper implementation of co-operative production and other development programmes approved or under taken by the State Government or for linking and co-ordinating 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 detriments of the ??? of the members, 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 in modifying or cancelling such directions he may impose such ??? as he may deem fit.

(3) Where the Registrar is satisfied that any committee or, as the case may be, a general body of any society, whose duty it was to comply with any directions issued or modified as aforesaid, has failed, without any resonable or sufficient cause, to comply with such directions, the Registrar may exercise the powers conferred on him under sub-section (1) of section 31 or, as the case may be, under sub-section (1) of section 107.

(4) Where the Registrar is satisfied that any person, whose duty it was on comply with any directions issued or modified as aforesaid, has failed without any reasonable or sufficient cause, to comply with such directions, the Registrar may by an order in writing,-

(a) if such failure is committed by a member of the committee of the society in his capacity as a member of such committee, remove him as a member from the committee and appoint any other person as a member of the committee in his place for the remainder of the term of his office;

(b) if such failure is committed by a member of the society not falling under clause (a), remove him as a member of the society;

(c) if such failure is committed by an employee of the society, direct the society to remove such employee from employment of the society forthwith and if the society fails, without reasonable or sufficient cause to take action in pursuance of such direction,

make an order removing such person from employment of the society and thereupon such person shall be deemed to have been removed by the society:

Provided that, before making any order under this sub-section, the Registrar shall give or cause to be given a reasonable opportunity to the person concerned to show cause against the action proposed to be taken in regard to him.".

Section 36. Amendment of section 165 of Guj. X of 1962

36. Amendment of section 165 of Guj. X of 1962.- In the principal Act, in section 165, for the words "by or under this Act," the words "in pursuance of this Act or the rules made there under" shall be substituted.

Section 37. Insertion of Schedule in Guj. X of 1962

37. Insertion of Schedule in Guj. X of 1962.- In the principal Act, after section 170, the following Schedule shall be added, namely:-

"SCHEDULE

(See section 74C)

Apex Societies

(1) The Gujarat State Co-operative Land Development Bank Limited, Ahmedabad

(2) The Gujarat State Co-operative Bank Limited, Ahmedabad.

(3) The Gujarat State Co-operative Consumers Federation Limited. Ahmedabad.

(4) The Gujarat Pustakalaya Sahayak Sahakari Mandal Limited, Vadodara.

(5) The Gujarat State Co-operative Kheti Sangh Limited, Ahmedubad.

(6) The Gujarat State Poultry Farmers' Co-operative Federation Limited, Bharuch.

(7) The Gujarat State Co-operative Housing Finance Society Limited, Ahmedabad.

(8) The Gujarat Co-operative Milk Marketing Federation Limited, Anand.

(9) The Gujarat State Co-operative Marketing Federation Limited, Ahmedabad

(10) The Gujarat State Co-operative Cotton Marketing Federation Limited, Ahmedabad.

(11) The Gujarat State Co-operative Oil-Seeds Growers' Federation Limited, Bhavnagar.

(12) The Gujarat State Co-operative Oil Industries Limited, Ahmedabad.

(13) The Gujarat State Co-operative Fruits and Vegetable Federation Limited, Bardol; District Surat.

(14) The Gujarat Industrial Co-operative Bank Limited, Ahmedabad.

(15) The Gujarat State Co-operative Industrial Association Limited, Ahmedabad

(16) The Gujarat State Mitha Utpadak Sahakari Sangh Limited, Surendranagar."

Section 38. Validation ??? of ???

38. Validation ??? of ???.- (1) Notwithstanding any judgment, decree or order of any court, any extension of the term of office of the members of committee of management of any society or any appointment of custodian made by the State Government before the commencement of the Gujarat Co-operative Societies (Amendment and Validation) Ordinance, 1982 (Guj. Ord 1 of 1982) shall be and shall be deemed always to have been valid as if it was made under the principal Act as amended by the said Ordinance.

(2) No appointment of members of a committee of a society by the State Government before the commencement of the Gujarat Co-operative Societies (Amendment and Validation) Act, 1982 (Guj. 23 of 1982) shall be called in question before any court, tribunal or authority merely on the ground that the State Government has no power to make such appointment.

Section 39. Repeal and saving

39. Repeal and saving.- (1) The Gujarat Co-operative Societies (Amendment and Validation) Ordinance, 1982 (Guj. Ord. 1 of 1982) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the principal Act as amended by the said Ordinance, shall be deemed to have been done taken under the principal Act, as amended by this Act.