Gujarat act 008 of 1978 : Gujarat Co-operative Societies (Amendment) Act, 1978

Section 1. Short title

1. Short title.- This Act may be called the Gujarat Co-operative Societies (Amendment) Act, 1978.

Section 2. Amendment of section 68 of Guj. X of 1982

2. Amendment of section 68 of Guj. X of 1982.- In the Gujarat Co-operative Societies Act, 1961 (hereinafter referred to as "the principal Act") in section 68, for the words and figure "exceeding 9 per cent" the words and figures "exceeding 12 per cent" shall be substituted.

Section 3. Insertion of new Chapter XA in Guj. X of 1902

3. Insertion of new Chapter XA in Guj. X of 1902.- In the principal Act, after Chapter X, the following new Chapter shall be inserted, namely:-

"CHAPTER XA

Insured Co-operative Banks.

115A. Order winding up reconstruction, super session, of committee, etc. of insured co-operative bank not to be made without sanction of requisition of Reserve Bank of India.- Notwithstanding anything contained in this Act, in the case of an insured co-operative bank,-

(1) an order for winding up or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or reorganisation) of the bank may be made only with the previous sanction in writing of the Reserve Bank of India;

(2) an order for the winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in section 13-D of the Deposit Insurance Corporation Act, 1961; (Act 47 of 1961)

(3) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made by the Registrar for supersession of the committee and the appointment of an administrator in place thereof for such period or periods, not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank of India, and the administrator so appointed shall, after the expiry of his term of office, continue in office until the day immediately preceding the date of the first meeting of the new committee of such bank;

(4) an order for winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or reorganisation) or an order for the supersession of the committee of the bank and the appointment of an administrator in place thereof made with the previous sanction in writing or on the requisition of the Reserve Bank of India shall be final 2nd shall not be liable to be called in question in any manner in any court; and

(5) the liquidator or such bank or the transferee bank, as the case may be, shall be under an obligation to pay the Deposit Insurance Corporation established under the Deposit Insurance Corporation Act, 1961, (Act 47 of 1661.) in the circumstances, to the extent and in the manner referred to in section 21 of that Act.

Explanation.- In this section,-

(a) the expression "insured co-operative bank" means a society which is an insured bank under the provisions of the Deposit Insurance Corporation Act, 1961, (Act 47 of 1961)

(b) the expression "transferee bank" in relation to an insured co-operative bank means a co-operative bank-

(i) with which such insured co-operative bank is amalgamated, or

(ii) to which the assets and liabilities of such insured co-operative bank are transferred, or

(iii) into which such insured co-operative bank is divided or converted, under sub-section (1) of section 17.".

Section 4. Repeal and saving

4. Repeal and saving.- (1) The Gujarat Co-operative Societies (Amendment) Ordinance, 1977, (Guj. Ord. No. 10 of 1977) 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 or taken under the principal Act as amended by this Act, as if his Act had come into force on the date on which the said Ordinance had come into force.