Jammu and Kashmir act 010 of 1989 : The JAMMU AND KASHMIR CO-OPERATIVE SOCIETIES ACT, 1989 Act No. X of 1989.

(1) This Act may be called the Jammu and Kashmir Co-operative Societies Act, 1989.

In this Act, unless the context otherwise requires,

(1) The Government may appoint a person to be the Registrar of Co-operative Societies for ²[the Union territory of Jammu and Kashmir] for all types of Societies and may appoint a person or persons to assist him.

Subject to the provisions of this Act, a Co-operative Society which has as its object the promotion of the economic interests of its members in accordance with Co-operative principles, or a Co-operative Society established with the object of facilitating the operations of such a Society, or a Co-operative Society, established for carrying out any of the objects specified in section 113 may be registered under this Act.

(1) An application for the registration of a Co-operative Society shall be made to the Registrar in such form as the Registrar may from time to time specify, and the applicants shall furnish to him all such information about the Society as he may require.

(1) If the Registrar is satisfied

(1) Where a Co-operative Society is registered provisionally under this Act, the Registrar shall issue the provisional certificate signed by him.

(1) A Co-operative Society may subject to the provisions of sub-section (2) be registered with or without limited liability.

¹[8A. Conversion. (1)A Co-operative Credit Structure Society registered under this Act shall be eligible to become a member of a Central Level Co-operative registered under the provisions of the Jammu and Kashmir Self-Reliant Co-operatives Act, 1999.

(1) No amendment of any bye-laws of a Co-operative Society shall be valid unless such amendment has been registered under this Act.

(1) If it appears to the Registrar that an amendment of the bye-laws of a class of Societies is necessary or desirable in the interest of such Societies or in the interests of the Co-operative movement or for the implementation of the development ³[programmes of the Union territory of Jammu and Kashmir], he may call upon all the Societies of that class, in the manner prescribed, to make the amendment within such time as he may specify.

(1) A Co-operative Society may, by an amendment of its bye-laws, change its name.

An amendment of the bye-laws of a Co-operative Society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.

(1) Subject to the provision of this Act and rules, a Co-operative Society may, by amendment of its bye-laws, change the form or extent of its liability.

(1) A Co-operative Society may, with the previous approval of the Registrar and by a resolution passed by a two-third majority of the members present and voting at the general meeting of the Society––

(1) Where the whole of the assets and liabilities of a Cooperative Society are transferred to another Co-operative Society in accordance with provisions of section 14 the registration of the first mentioned Cooperative Society, shall stand cancelled and the Society shall be deemed to have been dissolved and shall cease to exist as corporate body.

(1) Where the Registrar is satisfied that it is essential in the public interest, or in the interest of the Co-operative movement or for the purpose of securing proper management of any Society, that two or more Societies should be amalgamated or any Society should be divided to form two or more Societies or should be re-organised, then notwithstanding anything contained in section 3 but subject to the provisions of this section, the Registrar may after consulting the federal body of particular class of Societies, Jammu and Kashmir Co-operative Union/the financing agency which may have advanced any loan to the Societies or the Society concerned, provide for the amalgamation, division or re-organisation of those Societies into a single Society or into Societies with such constitution, property, rights, interest and authorities and such liabilities, duties and obligations, as may be specified in the order :

(1) No person shall be admitted as member of Co-operative Society except the following, namely :––

(1) A Co-operative Society may admit any person as nominal or associate member in accordance with its byelaws.

(1) Nomember of a Co-operative Society shall, save as otherwise provided in subsection (2), exercise the rights of a member unless or until he has made such payment to the Society in respect of membership or has acquired such interest in the Society as may be specified in the bye-laws.

Every member of Co-operative Society shall have one vote in the affairs of the Society :

(1) Every member of a Co-operative Society shall exercise his vote in person and no member shall be permitted to vote by proxy.

In any Co-operative Society no member other than the Government or any other Co-operative Society shall

(1) The transfer of share or interest of a member in the capital of a Co-operative Society shall be subject to such conditions and restrictions as to the maximum holdings as are specified in section 22.

(1) On the death of a member the Co-operative Society may transfer the share or interest of the deceased member in the capital to the person nominated in accordance with the rules made in this behalf, or if here is no person so nominated, the legal heirs or representatives of the deceased member or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such members share or interest as ascertained in accordance with the rules or bye-laws :

(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a Co-operative Society for the debts of the Society as they existed––

The final authority in a Co-operative Society shall vest in the general body of members :

(1) A general meeting of every Cooperative Society shall be held once in a year for the purpose of

(1) The Committee of a Co-operative Society may, at any time, call a special general meeting of the Society and shall call such meeting within one month after the receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be prescribed.

(1) The members of the Committee of a Co-operative Society shall be elected in such manner as may be prescribed and no person shall be elected unless he is a share-holder of the society.

¹[29A. Bar to election, nomination and continuance as member of Committees.–– No person shall be elected, nominated or co-opted or allowed to continue as a member of the Committee of a Co-operative Credit Structure Society, if he––

(1) Notwithstanding anything contained in this Act, the Chief Executive Officer or the members of the Committee of an Apex Co-operative Bank or a Central Co-operative Bank shall fulfill such qualifications and criteria as prescribed by the Reserve Bank and are, for the time being, in force and such person who, in the opinion of the Reserve Bank or the National Bank, does not fulfill the prescribed qualifications or the criteria, shall be removed on advice of the Reserve Bank or the National Bank after giving him a reasonable opportunity of being heard.

¹[(1) If in the opinion of the Government or Registrar, a Committee or Board, by whatever name called, of a Co-operative Society is persistently making a default or is negligent in the performance of duties imposed on it by this Act or the rules or bye-laws made thereunder or has committed any act which is prejudicial to the interests of the Society or its members, or has failed to comply with any direction given to it by the Government or the Registrar for the purpose of securing proper implementation of Co-operative production and other development programmes or that there is a failure in constituting or functioning of, the Committee or the Board, the Government or Registrar may, after giving the Committee or the Board, as the case may be, opportunity to state its objections, if any, within 15 days and after considering the objections, if received, by an order in writing remove the Committee or the Board and appoint one or more Administrators to manage the affairs of the Society for a period not exceeding two months and the elections shall be held within such period for the reconstitution of the Committee or the Board, as the case may be :

¹[30-A. Transitional provision. ––²[(1)] Notwithstanding anything contained in section 29 or section 30 of the Act, where the Government or the Registrar has appointed a Board of Management or Administrator, as the case may be, to manage the affairs of any society before the commencement of the Jammu and Kashmir Co-operative Societies (Amendment) Act, 2003 and elections for the constitution of the Committee for any such society have not been held before such commencement, such Board of Management or the Administrator may continue to manage the affairs of the society concerned for a period not exceeding one year from the date of its appointment and the elections shall be held within such period for reconstitution of the committee in accordance with the provisions of the Act.]

¹[30-B. Transitory provision for revival of certain Cooperative Banks. –– (1)Notwithstanding anything contained in section 29 or section 30 or any other provisions of this Act,––

(1) If the Committee or the Board, as the case may be, of Co-operative Society is reconstituted at a general meeting of the Society or the Committee or the Board of a Co-operative Society is removed by the Registrar under section 30 or if the Society is ordered to be wound up under section 74 and the outgoing member, of the Committee or the Board refuse to hand over charge of the records and property of the Society to the new Committee or Board or to the Administrators or the liquidators, as the case may be, the new Committee or Board or the Administrators or the liquidators may apply to the Executive Magistrate, within whose jurisdiction the Society functions, for securing the records and property of the Society.

No act, of a co-operative society or any committee or Board or of any officer shall be deemed to be invalid by reason only of the existence of any defect in the constitution of such society, committee or Board or in the appointment or election of an officer or on the ground that such officer was disqualified for his appointment.

¹[32A. Autonomy in all financial and internal administrative matters.––Subject to the provisions of this Act, rules or bye-laws made thereunder or ²[any other law for the time being in force and subject to overall supervision and control of the Government], a Co-operative Credit Structure Society shall have autonomy in all financial and internal administrative matters including the following areas :––

(1) The final registration of a co-operative society shall render it a body corporate by the name under which it is registered, having perpetual succession and a common seal with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it was constituted.

(1)Notwithstanding anything contained in any law for the time being in force but subject to any prior claim of the Government in respect of land revenue or any money recoverable as arrears of land revenue and subject to the provisions of the Tenancy Act, Samvat 1980 any debt or outstanding demand owing to a co-operative society by any member or past member or deceased member, shall be first charge upon the crops and other agricultural produce, cattle, fodder for cattle, agricultural or industrial implements or machinery, raw material for manufacture and any finished products manufactured from such raw materials, belonging to such member, past member or forming part of estate of the deceased member, as the case may be.

Notwithstanding anything contained in this Act or in any other law for the time being in force,—

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

Subject to the provisions of section 42, the share or contribution or interest of a member or past member or deceased member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member and receiver under any law relating to insolvency shall not be entitled to or have any claim on such share, contribution or interest.

Any register or list of members or shares kept by any co-operative society shall be prima facie evidence of any of the following entered therein :—

(1) A copy of any entry in book of a co-operative society regularly kept in the course of its business, shall, if certified in such manner as may be prescribed, be received in any suit or legal proceeding as prima facie evidence, of such entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in the same manner and to the same extent as the original entry itself is admissible.

Nothing in clauses (b) and (c) of sub-section (1) of section 17 of ¹[the Registration Act,1908 (16 of 1908)] shall apply to––

(1) The Government may, by notification, remit in respect of any class of cooperative societies––

(1) Notwithstanding anything contained in any law for the time being in force a member of a co-operative society may execute an agreement in favour of the society providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.

(1) The Government may subscribe directly to the share capital of co-operative society with limited liability.

The Government may subject to appropriate bye-laws, provide money to a co-operative society (hereinafter in this chapter referred to as apex society) for the purchase of share in other co-operative societies with limited liability.

(1) An apex society which is provided with money by the Government under section 44 shall, with such moneys, establish a fund to be called the “Principal Government Partnership Fund”.

(1) A central society which is provided with money by an apex society from the ‘Principal Government Partnership Fund’ shall with such money establish a fund to be called the ‘Subsidiary Government Partnership Fund’.

No shares shall be purchased in a co-operative society from the money in the ‘Principal Government Partnership Fund’ or the ‘Subsidiary Government Partnership Fund’ except with the previous approval in writing of the Government.

Where any shares are purchased in a co-operative society by

An apex society which has purchased shares in other co-operative societies from the money in the ‘Principal Government Partnership Fund’ and a central society which has purchased shares in primary societies from the money in the ‘Subsidiary Government Partnership Fund’ shall be entitled only to such dividend on the said shares as is declared by the society concerned and is payable to other share-holders of that Society.

(1) If a Co-operative Society in which shares are purchased from the “Principal Government Partnership Fund” is wound up, or is dissolved, the Government shall not have any claim against the apex society which purchased the shares in respect of any loss arising from such purchase ; but the Government shall be entitled to any money received by the apex society in liquidation proceedings or on dissolution as the case may be.

(1) All moneys received by an apex society in respect of shares of other co-operative societies purchased from the money in the ‘Principal Government Partnership Fund’ on redemption of such shares or by way of dividend or otherwise shall be credited to that fund.

(1) If an apex society which has established a ‘Principal Government Partnership Fund’ is wound up or is dissolved, all moneys to the credit of, or payable to, that fund shall be paid to the Government.

Any amount to the credit of ‘Principal Government Partnership Fund’ or a ‘Subsidiary Government Partnership Fund’ shall not form part of the assets of the apex society or the central society, as the case may be.

(a) the Government may enter into an agreement with the apex society setting out the terms and conditions on which it shall provide money to the apex society for the purpose specified in section 44 ;

Notwithstanding anything contained in any law for the time being in force the Government may,

The provisions of section 43 to 55 of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

No part of the funds other than the net profits of a co-operative society shall be paid by way of bonus or dividend or otherwise distributed among its members :

A society earning profit shall calculate the net profits by deducting from the gross profits for the year all accrued interest which is overdue for more than six months, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, and after providing for or writing off bad debts and losses not adjusted against any fund created out of profits. A society may, however, add to the net profits for the year interest accrued in the preceding year, but actually recovered during the year. The net profit thus arrived at, together with the amount of profits brought forward from the previous year, shall be available for appropriation.

(1) A co-operative society shall, out of its net profits duly certified in audit in any year, transfer an amount not being less than twenty-five per cent of the profits to the reserve fund.

A co-operative society may invest or deposit its funds

(1) A co-operative society shall not make a loan to any person other than a member :

¹[(1)] A co-operative society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as may be specified in the bye-laws.

Save as is provided in sections 61 and 62 the transactions of a co-operative society with persons other than members shall be subject to restrictions if any, as may be prescribed :

(1) The Registrar shall audit or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every co-operative society at least once in each year.

(1) If the result of the audit held under section 64 discloses any defects in the working of a co-operative society, the Registrar may bring such defect to the notice of the society and if the society is affiliated to another co-operative society also to the notice of that other society.

(1) The Registrar may of his own motion and shall on the application of a creditor of a cooperative society, inspect or direct any person authorised by him by order in writing to inspect the books of the society and the Registrar or the person so authorised shall have all the powers of the Registrar when holding an inquiry/ inspection under section 67 :

(1) The Registrar may of his own motion and shall on the application of a majority of the 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 enquiry into the constitution, working and financial condition of a co-operative society.

(1) Where an inquiry is held under section 67 or an inspection is made under section 66 the Registrar may apportion the cost of such part of the costs as he may deem fit between the co-operative society to which the co-operative society concerned is affiliated, the society, the members or creditors demanding an inquiry or inspection, and the officers or former officers of the society :

(1) If in the course of an audit, enquiry, inspection or the winding up of a co-operative society, it is found that any person, who is or was entrusted with the organisation or management of such society, or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, the rules or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or misappropriated or fraudulently retained any money or other property belonging to such society, the Registrar may, of his own motion or on the application of the committee, liquidator or any creditor, inquire himself or direct any person authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person.

(1) Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, management or the business of a co-operative society arises—

(1) If a society is unable to pay its debts to a Financing Bank by reason of its members committing default in the payment of the money due to them, the Financing Bank may direct the committee of such society to proceed against such members under section 70 and if the committee fails to do so within a period of 60 days from the date of receipt of such directions, the Financing Bank itself may proceed against such members under section 70 in which case the provisions of this Act, the rules or the bye-laws shall apply as if all references to the society or its committee in the said provisions were references to the Financing Bank.

(1) Disputes mentioned in sections 70 and 71 of the Act may be referred to the following authorities for adjudication—

(1) Notwithstanding anything contained in sections 70 and 71 on an application made by a society for the recovery of arrears of any sum advanced by it to any of its members on account of the financing of crop or seasonal finance and on its furnishing a statement of accounts in respect of the arrears, the Registrar may, after making such inquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as arrears.

¹[73A. Registrar’s obligations. ––(1) The Registrar shall issue directions to ensure that Reserve Bank’s regulatory prescriptions in case of an Apex Cooperative Bank or a Central Co-operative Bank are implemented within one month from the date of receipt of the advise from the Reserve Bank.

(1) If the Registrar, after enquiry has been held under section 67 or an inspection has been made under section 66 or on receipt of an application made by not less than three-fourth of the members of a Co-operative Society, is of opinion that the society ought to be wound up, he may issue an order directing it to be wound up. Before issuing such an order the Registrar shall consult the concerned federal society.

(1) Where the Registrar has made an order under section 74 for the winding up of a co-operative society, he may appoint a liquidator for the purpose and fix such remuneration as may be prescribed.

(1) Subject to any rules made in this behalf, the whole of the assets of a co-operative society in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 75 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise.

Where in respect of a co-operative society which has been ordered to be wound up under section 74 no liquidator has been appointed under section 75 after two months from the date of such order, or if an appeal has been filed from the date of confirmation of the order in appeal or where the affairs of a co-operative society in respect of which a liquidator has been appointed under section 75 have been wound up, the Registrar shall make an order cancelling the registration of the society and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body from the date of such order of cancellation.

In this Chapter :—

(1) There shall be a State Agriculture and Rural Development Bank for the ¹[the Union territory of Jammu and Kashmir] and as many Primary Agriculture and Rural Development Banks, as may be deemed necessary.

Subject to the provisions of this Act and the rules made thereunder, it shall be competent for the Agriculture and Rural Development Bank and the primary banks when authorised in this behalf by the Board to advance loans for the following purposes, namely :—

(1) The Registrar, or where the Government appoint any other person in this behalf, such person, shall be the trustee for the purpose of securing the fulfillment of the obligations of the (Agriculture and Rural Development Bank) to the holders of debentures issued by the Board.

The Trustee appointed under section 81 shall be a corporation sole by the name of the trustee for the debentures and as such shall have perpetual succession and common seal and in his corporate name shall sue and be sued

(1) With the previous sanction of the Trustee, the Board may from time to time issue debentures of one or more denominations for such periods as it may deem expedient, on the security of mortgage or hypothecation held or mortgages, charges or hypothecation partly held and partly to be acquired or other assets taken by the Agriculture or and Rural Development Bank and its other assets and mortgages or hypothecations transferred or deemed under the provisions of section 93 to have been transferred to the Agriculture and Rural Development Bank.

(1) Notwithstanding anything contained in this Act the Board may with the prior approval of the Government and subject to the regulations made under this Act, borrow money by issue of bonds :

The holders of the debentures shall have floating charge on

(1) The principal of, and interest on, the debentures issued under section 83 or bonds issued or loans raised under section 84 to such maximum amount as may be fixed by the Government from time to time and subject to such conditions as it may deem fit to impose, shall carry the guarantee of the Government.

(1) Subject to the provisions of this Act, the Agriculture and Rural Development Bank and the Primary Banks may advance loans to individuals and Institutions on the security of lands and other fixed assets or of assets acquired by the loans borrowed which have been hypothecated to the Agriculture and Rural Development Bank, as the case may be :

(1) When an application for loan is made for any of the purposes mentioned in section 80 a public notice shall be given of the application in such manner as may be prescribed calling upon all persons interested to present their objections to the loan, if any, in person at a time and place fixed therein. The Government or the Bank may, from time to time, prescribed the person by whom such public notice shall be given and the manner in which the objections shall be heard and disposed of.

Where a State Agriculture and Rural Development Bank or an Agriculture and Rural Development Bank has given a loan to a member for the development of any land is in excess of the amount of the loan to which such member would be entitled on the basis of the value of the land as determined in accordance with the principles of valuation approved by the Government, the Government may guarantee for specified period the repayment of the loan to the extent of the excess.

A written order by the State Agriculture and Rural Development Bank or the Agriculture and Rural Development Bank or person or committees authorised under the bye-laws of the Bank to make loans for all or any of the purposes specified in section 80, granting either before or after the commencement of this Act, a loan to or with the consent of a person mentioned therein, for the purpose of carrying out the work specified therein, for the benefit of the land or for productive purpose specified therein shall for the purpose of this Act, be conclusive of the following matters :—

(1) A mortgage executed in favour of a Agriculture and Rural Development Bank shall have priority over any claims of the Government arising from a loan under the aid to Agriculturists and Land Improvement Act, Samvat 1993 granted after the execution of the mortgage.

(1) Notwithstanding anything contained in any law for the time being in force, it shall be lawful for a Agriculture and Rural Development Bank of State Agriculture and Rural Development Bank to purchase any mortgaged property sold under this Chapter, and the property so purchased shall be disposed of by such bank by sale within such period as may be fixed by the Trustee.

The mortgages executed in favour of, and all other assets transferred to, an Agriculture and Rural Development Bank by the members thereof shall, with effect from the date of such execution or transfer, be deemed to have been transferred by such Agriculture and Rural Development Bank to the State Agriculture and Rural Development Bank and shall vest in the Trustee.

Notwithstanding anything contained in ¹[the Registration Act, 1908 (16 of 1908)], or any other law for the time being in force it shall not be necessary to register any mortgage or hypothecation or charge created or executed in favour of the Agriculture and Rural Development Bank or a Primary Bank ; Provided the Agriculture and Rural Development Bank or the Primary Bank, as the case may be send within such time and in such manner as may be prescribed, a copy of the declaration or instrument whereby the mortgage or hypothecation has been created or executed for the purpose of securing repayment of the loan, to the Registering Officer within the local limits of whose jurisdiction the whole or any part of the property to which the mortgage or hypothecation relates is situated.

(1) Notwithstanding anything contained in ¹[the Transfer of Property Act, 1882 (4 of 1882)], or any other law for the time being in force, no mortgage or property mortgaged to a State Agriculture and Rural Development Bank or to an Agriculture and Rural Development Bank, shall except with the prior consent in writing of the Bank, and subject to such terms and conditions as the Bank may impose, lease or create any tenancy rights on any such property :

All loans granted by the State Agriculture and Rural Development Bank, or the Agriculture and Rural Development Banks, all interests if any, chargeable thereon and costs, if any, incurred in making the same shall when they become due, be recoverable by the State Agriculture and Rural Development Bank or the Agriculture and Rural Development Banks concerned, as the case may be.

(1)Notwithstanding that a mortgage executed in favour of an Agriculture and Rural Development Bank has been transferred, or is deemed under the provisions of section 93 to have been transferred to the State Agriculture and Rural Development Bank

(1) Where a mortgage is executed in favour of an Agriculture and Rural Development Bank, for payment of prior debts of the mortgagor, the Bank may, notwithstanding the provisions of section 76 of ¹[the Transfer of Property Act, 1882 (4 of 1882)], by notice in writing require any person to whom any such debt is due, to receive payment of such debt or part thereof from the Bank at its registered office within such period as may be specified in the notice.

(1) If any instalment payable under a mortgage executed in favour of an Agriculture and Rural Development Bank or any part of such instalment has remained unpaid for more than one month from the date on which it fell due, the committee may in addition to any other remedy available to the Bank, apply to the Registrar for recovery of such instalment or part thereof by distraint and sale of the produce of the mortgaged land including the standing crops thereon.

(1) Notwithstanding anything contained in ¹[the Transfer of Property Act, 1882 (4 of 1882)], and where a power of sale without the intervention of the court is expressly conferred on the Agriculture and Rural Development Bank by the mortgage deed and the committee of such Bank or any person authorised by such committee in this behalf shall, in case of default of payment of the mortgage money or any part thereof, have power, in addition to any other remedy available to the Bank, to bring the mortgaged property to sale without the intervention of the Court.

(1) Where any property mortgaged to an Agriculture and Rural Development Bank is wholly or partially destroyed or the security is rendered insufficient and the mortgagor having been given a reasonable opportunity by the committee of Agriculture and Rural Development Bank of providing further security enough to render the whole security sufficient or of repaying such portion of the loan as may be determined by the committee, has failed to provide such security or to repay such portion of the loan, the whole of the loan shall be deemed to fall due at once and the committee shall be entitled to take action against the mortgagor under section 99 or section 100 for the recovery thereof.

(1) The Board or the Trustee may direct the committee of an Agriculture and Rural Development Bank to take action against a defaulter under section 99, section 100 or section 101 and if the committee neglects or fails to do so or if there be no such committee the Board or the Trustee may take such action.

Where any property is sold in the exercise or purported exercise of a power of sale under section 99 the title of the purchaser shall not be questioned on the grounds that—

Notwithstanding anything contained in any law relating to insolvency, a mortgage executed in favour of an Agriculture and Rural Development Bank shall not be called in question on the ground that it was not executed in good faith for valuable consideration or on the ground that it was executed in order to give the Agriculture and Rural Development Bank a preference over the other creditors of the mortgagor.

(1) The Board may, on the application of an Agriculture and Rural Development Bank and under circumstances in which the power of sale conferred by section 100, may be exercised, appoint in writing a receiver of the produce and income of the mortgage property or any part thereof and such receiver shall be entitled either to take possession of the property or collect its produce and income, as the case may be, to retain out of any money realised by him, his expenses of management including his remuneration, if any, as fixed by the Board, and to apply the balance in accordance with the provisions of sub-section (8) of section 69-A of ¹[the Transfer of Property Act, 1882 (4 of 1882)].

(1) Notwithstanding anything contained in ¹[the Transfer of Property Act, 1882 (4 of 1882)], or any other law for the time being in force, a mortgagor shall not grant a lease of the mortgaged property for a period exceeding five years.

(1) Notwithstanding anything contained in ¹[the Registration Act, 1908 (16 of 1908)] it shall not be necessary for any officer of an Agriculture and Rural Development Bank or of the State Agriculture and Rural Development Bank to appear in person or by agent at any registration office in any proceeding connected with the registration of any instrument executed by him in his official capacity or to sign as provided in section 59 of that Act.

The Board may, if it thinks fit, delegate all or any of its powers under sections 100, 102 and 105 to an executive committee constituted by it and consisting of two or more of its members.

The provision of sections 102,103 and 104 of ¹[the Transfer of Property Act, 1882 (4 of 1882)] and of any rules made by the High Court under section 104 of that Act for carrying out the purposes of the said section, shall apply as far as may be in respect of all notices to be served under this Chapter.

(1) The Board may, subject to the approval of the Trustee make regulations not inconsistent with the provisions of this Chapter—

Notwithstanding anything contained in section 6 of the Jammu and Kashmir Land Alienation Act, Samvat 1995, the State Agriculture and Rural Development Bank established under this Chapter shall be deemed to belong to an agricultural class throughout the ^*[Jammu and Kashmir State] for the purposes of said Act.

Except as otherwise expressly provided, nothing in this Chapter shall affect the provisions of the Jammu and Kashmir Land Alienation Act, Samvat 1995, and the Big Landed Estates Abolition Act, Samvat 2007.

The provisions of this Chapter shall apply to Co-operative Housing Societies registered in the ^*[Jammu and Kashmir State] before or after the commencement of this Act for the purpose hereinafter enumerated, namely :—

(a) ‘Board’ means the governing body of Housefed.

(l) With the previous sanction of the Government and the trustee the Board may for the purpose of financing Housing Societies issue debentures of such denominations, on the security of mortgages held property or such assets of the Housing Society and at such rates of interest as may be prescribed.

(l) The Registrar or such other person as the Government may, appoint, in this behalf shall be the trustee for the purpose of securing the fulfillment of the obligation of the Housefed to the holders of debentures issued by the Board.

The mortgages and other assets transferred or deemed to have been transferred under section 135 by the Housing Society to Housefed shall vest in the trustee from the date of such transfer and the holders of debentures shall have a floating charge on all such mortgages and assets and on the amounts paid under such mortgages and remaining in the hands of the Board or of the trustee and on the properties of the Housefed.

(1) The principal of and interest on the debentures issued under section 115 shall carry the guarantee of the Government to such maximum amount as may be fixed and subject to such conditions, as may be imposed by the Government.

(1) The Government may constitute a fund to be called ‘Guarantee Fund’ on such terms and conditions as it may deem fit, for the purpose of meeting losses that might arise on account of loans advanced by the Housing Society on the security of mortgages not being fully recovered due to such circumstances as may be prescribed.

The holders of the debentures shall have floating charge on—

The Housefed may raise loans from the following organisations on such terms and conditions as may be agreed between the lending institutions and the Housefed namely :––

The Housefed may accept deposits from the member co-operative institutions, nominal members and ^*[State Government] on such terms and conditions as may be decided by the Board from time to time.

(1) If one or more instalments or any part of such instalment including interest, penal interest and other dues payable under a mortgage executed in favour of a Housing Society or the Housefed remains unpaid for more than one month from the date on which it fell due, the Board or committee, as the case may be, in addition to any other remedy available to the Primary Housing Society or the Housefed, make an application to the Registrar with a statement of account in respect of such arrears of the defaulted amount for the recovery of such amount by distraint and sale of movable property.

(1) When a distraint is made under section 123 the distrainer shall serve or cause to be served upon the defaulter a written notice of demand specifying the amount for which the distraint is made.

(1) If, within fifteen days from the date of service of the notice of demand referred to in section 124 the defaulter does not pay the amount for which the distraint is effected, the distrainer may sell by auction the distrained property or such part thereof as may in his opinion be necessary to satisfy the demand together with the expenses of the distraint and the cost of the sale.

(1) Notwithstanding anything contained in ¹[the Transfer of Property Act, 1882 (4 of 1882)], the Board or any person authorised by it in this behalf shall have power, in addition to any other remedy available to the Housing Federation to bring the mortgaged property to sale without the intervention of the Court.

(1) The Board or any person authorised by it under sub-section (1) of section 126 may apply to the Sale Officer appointed for the purpose under section 135 to sell the mortgaged property or any part thereof and such officer shall after giving notice in writing to all the persons referred to in sub-section (2) of section 126.

(1) When any mortgage property has been sold under section 127 the mortgagor or any person having a right or interest therein may, within thirty days from the date of sale, apply to the Sale Officer to have the sale set aside on his depositing at the office of the Sale Officer—

The proceeds of every sale shall be applied by the Sale Officer—

Where a sale of mortgaged property has become absolute, the Sale Officer shall grant a certificate specifying the property sold, the name of the purchaser and the date on which the sale became absolute.

(1) If the property sold under section 127 is in the possession of the mortgagor or some person on his behalf or of some person claiming under a title other than a lease operated by the mortgagor subsequent to the mortgage in favour of the Housing Society or Housefed and a certificate has been granted under section 130, the Court shall on the application of the purchaser order the person in possession of the property to put the purchaser or his nominee in possession of such property.

(1) Notwithstanding anything contained in section 126 the Board may on the application of a Housing Society and in circumstances in which the power to sale conferred by section 126 may be exercised, appoint in writing a receiver of the property and income of such property or any part thereof and such receiver shall be entitled to take possession of the property or collect its income, as the case may be, to retain out any money realised by him his expenses of management including his remuneration, if any, fixed by the Board, and to apply the balance in accordance with the provisions of sub-section 8 of section 89-A of ¹[the Transfer of Property Act, 1882 (2 of 1882)].

When a sale has been made in exercise of a power of sale under section 126 and a certificate has been granted under section 132 the title of the purchaser shall not be impeachable on the ground that no case had arisen to authorise the sale or that due notice was not given or that the power was otherwise improperly or irregularly exercised.

(1) Notwithstanding anything contained in ¹[the Residential and Commercial Tenancy Act, 2012] or in any other law for the time being in force, when the mortgaged property sold in accordance with the provisions of this Act, is occupied by tenant or borrower or any other persons, such person shall be evicted forthwith treating him illegal and unauthorised occupant.

The Registrar may appoint Sale Officers for the purposes of conducting sales under this Chapter.

Notwithstanding anything contained in ¹[the Transfer of Property Act, 1882 (4 of 1882)] the mortgages executed in favour of and all other assets transferred to Housing Society by the members thereof, shall with effect from the date such execution or transfer be deemed to have been transferred by such Housing Society to HOUSEFED.

If any property mortgaged to a Housing Society or Housefed is wholly or partially destroyed or the security is rendered insufficient and the mortgagor, having been given reasonable opportunity by the Committee or Board or Housefed of providing further security enough to render the security sufficient or of repaying such portion of the loan as may be determined by the Committee or Board, has failed to provide such security or to repay such portion of loan the whole of the loan shall be deemed to fall due at once and the Committee or Board shall be entitled to take action against the mortgagor under sections 123 and 126 for the recovery thereof.

The Board of the trustee may direct the committee of a Housing Society to take action against a defaulter under section 123 or section 126 and if the committee neglects or fails to do so, the Board or the trustee may take such action and any reference in the provisions of this Chapter to the Board, trustee or the committee shall be construed accordingly.

Notwithstanding anything contained in any law relating to insolvency, mortgage executed in favour of Housing Society or Housefed shall not be called in question on the ground that it was not executed in good faith for valuable consideration or on the ground that it was executed in order to give the Housing Society or HOUSEFED a preference over other creditors of the mortgagor.

If a mortgage is executed in favour of Housing Society for payment of prior debts of the mortgagor, the society may notwithstanding anything contained in sections 82 and 84 of ¹[the Transfer of Property Act, 1882 (4 of 1882)], by notice in writing require any person to whom any such debt is due to receive payment of such debt or part thereof from the Society at its registered office, within such period as may be specified in the notice. If such person fails to receive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice :

Notwithstanding the fact that mortgage has been transferred or deemed to have been transferred under section 136 by a Housing Society to the HOUSEFED :—

If a mortgage executed in favour of a Housing Society or HOUSEFED, either before or after the commencement of this Act, is called in question on the ground that it was executed by the Manager of a Joint Hindu Family for a purpose not binding on the members thereof, the burden of providing the same shall notwithstanding any law to the contrary, lie on the party raising it.

Notwithstanding anything contained in ¹[the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement, Act 2013 (30 of 2013)] or any other law for the time being in force no land of Housing Societies purchased or acquired for housing purposes shall be liable for acquisitions for any other housing agency or authority or local body for the same purpose.

Any Housing Society or the HOUSEFED may grant copies to the borrowers themselves, or on the order of the court, to any person of any document obtained and kept by it in course of its business, or of any entries in such documents, and any copy as granted shall, when certified, in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document, or the entries therein, as the case may be.

The provisions of this Chapter shall apply also to loans advanced by a Primary Housing Society from funds which have not been borrowed by it from the HOUSEFED.

The provisions of sections 102, 103 and 104 of ¹[the Transfer of Property Act, 1882 (4 of 1882)] shall apply, so far as may be, in respect of all notices to be served under this Chapter.

At any sale of movable or Immovable property held under this Chapter, no Director, Secretary or other officer of such Housing Society or of the HOUSEFED and no sale officer or other persons having any duty to perform in connection with such sale shall, either directly or indirectly bid for or acquire or attempt to acquire any interest in such property.

The Board may, if it thinks fit, delegate all or any of its powers under sections 126, 132 and 138 to an executive committee constituted by it consisting of two or more of its members of whom one shall be the Registrar or his nominee not below the rank of Joint Registrar or Deputy Registrar Co-operative Societies.

Notwithstanding anything contained in this Act, or the rules made thereunder, the Board shall have a general power of supervision over the Primary Housing Societies.

This Board may, subject to the approval of the Trustee, make regulations not inconsistent with the provisions of this Chapter :—

The Government may, by notification, make rules not inconsistent with the provisions of this Chapter :—

Notwithstanding anything contained in Chapter X or any other law for the time being in force but without prejudice to any other mode of recovery provided in this Act, the Registrar or any person subordinate to him empowered under this Act or by the Registrar in this behalf may, on the application of a co-operative society, make an order directing the payment of any debt or outstanding demand due to the society by any member or past or deceased member, by sale of the property or any interest therein which is subject to a charge under sub-section (1) of section 34 :

Every order made by the Registrar under sub-section (2) of section 69 or under section 152 every decision or award made under section 73 every order made by the liquidator under section 76 and every order made by the Tribunal or Government under sections 158, 160, 161 or 162 and every order made under section 158 shall if not carried out : (a) on a certificate signed by the Registrar, or any person authorised by him in this behalf, be deemed to be a decree of a civil court and shall be executed in the same manner as decree of such Court ; or

If the Registrar or any other officer empowered by him, is satisfied on an application, report, inquiry or otherwise that any person with intent to delay or obstruct the enforcement of any order, decision or award that may be made against him under the provisions of this Act :

The Registrar or any person empowered by him under the Act in this behalf shall be deemed, when exercising any power under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any order on any application made to him for such recovery or for taking a step, in aid of such recovery, to be a civil court for the purposes of ¹[section 137 of the Limitation Act, 1963 (36 of 1963)].

(1) All sums due from a co-operative society or from an officer or member or past member of a co-operative society as such to Government, including any costs awarded to Government under any provision of this Act, may, on a certificate issued by the Registrar in this behalf, be recovered in the same manner as arrears of land revenue.

(1) The Government shall constitute a Co-operative Appellate Tribunal or Tribunals to be called the Co-operative Appellate Tribunal or Tribunals to exercise the functions conferred on Tribunal under this Chapter.

Save as otherwise provided by this Act, an appeal shall lie from the original order or appellate order of Deputy Registrar Co-operative Societies, Joint Registrar, Addl. Registrar as follows :—

The period of limitation for filing an appeal shall be as follows :—

(1) The Government or the Tribunal may call for and examine the record of any proceedings held or inspection made under this Act or the proceedings of any person vested with powers of Registrar or acting under his authority and if the Government or the Tribunal is of the opinion that any order, decision, or award or any proceedings so called for should be modified, annulled or revised, the Government or the Tribunal may make such order thereon as it may think fit :

(1) The Deputy Registrar, Joint Registrar, Additional Registrar or the Tribunal, Registrar as the case may be, may of its motion or on an application made by any person aggrieved by its order review its own order in any case and pass in reference thereto such order, as it thinks fit, after serving notice to the persons likely to be effected by such order and affording such persons an opportunity of being heard.

(1) Where an appeal is made to the Government or the Tribunal under section 150 or where the Government or Tribunal calls for the record of a case under section 160, the Government or the Tribunal as the case may be, may, in order to prevent the ends of justice being defeated, make such interlocutory orders pending the decision of the appeal or revision as it may deem fit.

(1) Any person other than a co-operative society carrying on business under any name or title of which the words “cooperative” or its equivalent in any Indian Language, is part, without the sanction of the Government shall be punishable with fine which may extend to two hundred rupees.

(1) No court inferior to that of a Judicial Magistrate of the 1st Class shall try any offence under this Act.

Every Co-operative society shall have an address registered in accordance with the rules to which all notices and communications may be sent and shall send to the Registrar notice or any change thereof within thirty days of the change.

Every Co-operative society shall keep a copy of this Act, the rules and its bye-laws open to inspection free of charge at all reasonable times at the registered address of the society.

No person other than a co-operative society shall trade or carry on business under any name or title of which the word “Co-operative” or its equivalent in any Indian language is part :

No suit shall be instituted against a cooperative society or any of its officer in respect of any Act touching the constitution, management of the business of the society until the expiration of two months next after notice in writing has been delivered to the Registrar or left at his office stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims ; and the plaint shall contain a statement that such notice has been so delivered or left.

No member of the committee of any society shall be entitled to receive from the society the travelling allowance, daily allowance or any other allowances or fees for attending meetings of its committee or for performing any other function as such member at a rate higher than the maximum rate prescribed in this behalf, and different rates may be prescribed for different societies or class of societies or for different purposes by the Registrar.

The Registrar shall prescribe the amount and nature of the securities to be furnished by an officer or employee of any society or class of societies, who are required to handle cash, securities, or property belonging to the society and the maximum amount of cash which may be handled or kept at a time by any officer or employee.

The provisions of ¹[the Companies Act, 2013 (18 of 2013)] shall not apply to Co-operative Societies.

(1) Any Co-operative society now existing which has been registered under the Co-operative Societies Act, 1960 shall be deemed to be registered under this Act, and its bye-laws shall so far as the same are not inconsistent with the express provisions of this Act, continue in force until altered or rescinded.

No suit, prosecution or other legal proceeding shall lie against the Registrar or any person subordinate to him or acting on his authority in respect of anything done or purporting to have been done in good faith under this Act.

(1) In exercising the functions conferred on it by or under this Act, the Government, the Tribunal, the Registrar, the Arbitrator or any other person deciding any dispute and the liquidator of a Cooperative society shall have all the powers of a Civil Court while trying a suit under ¹[the Code of Civil Procedure, 1908 (5 of 1908)], in respect of the following matters, namely :—

(1) Save as provided under this Act, no Civil Court, Revenue Officer or Revenue Court shall have a jurisdiction in regard to—

(1) The Government may for the whole or any part of ¹[the Union territory of Jammu and Kashmir] and for any class of co-operative societies after previous publication, make rules to carry out the purposes of this Act.

(1) The Jammu and Kashmir Co-operative Society Act, 1960 (Act No. XXVIII of 1960) is hereby repealed.