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No. 4906/XVII-V-1-122-76 Dated Lucknow, November 20, 1976 ,

IN pursuance of the provisions of clause (3) of Article 348 of the Constitution of India, the Governor is pleased to order the' publication of the following English translation of the Uttar Pradesh Sahakari Samiti (Sanshodhan Tatha Vaidhikaran) Adhiniyam, 1976 (Uttar Pra- desh Ad hiniyam Sankhya 40 of 1976), as passed by the Uttar Pradesh Legislature and assented to by the Governor on November 20, 1976:

THE UTTAR PRADESH CO-OPERATIVE SOCIETIES (AMENDMENT AND VALIDATION) ACT, 1976

[U. P. ACT NO. 40 OF 1976]

.(As passed by the Uttar Pradesh Legislature) i AN

ACT further to amend the Uttar Pradesh Co-operative Societies Act, 1965 and to

provide for matters connected therewith.

IT IS HEREBY enacted in the Twenty-seventh Year of the Republic of India as follows :—

I. This Act may be called the Uttar Pradesh Co-operative Societies (Amendment and Validation) Act, 1976.

2: After section 26 of the Uttar Pradesh Co-operative Societies Act, 1965 (hereinafter referred to as the principal Act), the following section shall be inserted and be deemed to have been inserted with effect from June 25, 1076, namely :—

"26-A. (1) . Any individual Who is qualified for admission to membership under the provision of this Act, the rules and the bye-laws

Universal mem- and makes an application in the manner prescribed, for bership for pd. mary agricultural membership of a primary agricultural credit society shall credit societies. be deemed to have been admitted to the membership of

such society from the date of receipt of such application in the office of she society.

(2) If at any time after the date of admission of the individual under sub-section (1) , it is discovered that the individual concerned is not quali- fied, under this Act, the rules or the bye-laws, to become a member of such society, the Registrar may, notwithstanding anything contained in this Act, either ,suo motu or on the application of the concerned society within a period of three months from the date of such discovery give notice to such individual to show cause why he should not be removed from the membership of the society, and upon an order of the Registrar made in this behalf such individual shall, from the date of the order, cease to be the member of such society."

Short title'

Insertion of new section 26-A in U.P. Act no. 11 of 1966.

4 .- oar ahaatui‘mnaz, 20 Ram; 1976 (3) mumnfirmgaufirfiwfiumufiwh farm mnmfwi . mififaéfm‘tefifafimwfiflfiawwfam m—figm, Mam: ,‘ fammmmmwfisfifiafiwmmmuifmimmfiwefi - .mmnarfirmt -.——~¢ 5”" “.5" 7——ma&nagmlnfifafiumm’t, 19623de 4455 atom as mm“? famfimmmnu‘tt ism—(aft, 197sfififimmmml A from our s--~(1) minim wasn't afwfir (Mam ism-(w) ass/min, 197:; as!" W ammsfinem’tafifafian’tudtfiuflm,lemon-{rmfi'cfisafmm' 3': t (2) Qafiwwfifigfiwlmfiwfiwfimuwmfuafiaafofiwé m fwnmn slimline} we fim‘twufiifirw em mammary, - We: «animal fiwa'twfmmmm n‘tnfimfiaa‘tw‘tamam .mfi,m7saufafims‘smw’tmmwa§aul ' No. 4906/XVII-V—1-122-76 ‘ _ Dated Lucknow, November 20, 1976 , '- ‘ IN pursuance of the provisions of clause (3) of Article 348 of the Constitution of India, the Governor is pleased to order the' publication of the following English translation ofthe Uttar Pradcsh Sa hakari Samiti (Sanshodban Tatha Vaidhikara n) Adhiniyam, 1976 (Uttar Pra- desh Ad hiniyam Sankhya 40 of 1976), as passed by the Uttar Pradesh Legislature and assented to by the Governor on November 20,_1976: THE UTTAR PRADESH-CO-OPERATIVE SOCIETIES (AMENDMENT ' } AND VALIDATION) ACT. 1976 : ' i [U. P. Ac‘r NO. 40 or 1976] .(As passed ‘by’ the Uttar Pradesh Legislature), AN ACT further to amend the’ Uttar Pradesh Cooperative Societies Act, 1965 and to {l provide for matters connected therewith. IT 15 HEREBY enacted in the Twenty-seventh Year of the Republic of India -. > as follows :— I Shortliilq 1. This Act may be called the Uttar Pradesh Co-operative Societies (Amendment and Validation) Act. 1976. Insertion of new 2'. After section 26 of the Uttar Pradesh Cooperative Societies Act, 1965 _ ‘flflun‘o‘ I"; (hereinafter referred to as the principal Act), the following section shall be » of {966. n ‘ inserted and be deemed to have been inserted with efiect from June 25, 1976. . . namely :— . , "26-A. (l)' Any individual Who is qualified for admission to membership under the provision of this Act, the rules and the bye-laws Universal meni- and makes an application in the manner prescribed, for 21‘8"“? {9‘ [PH'] membership of a primary agricultural credit society shall éflé’i’tsiréfeliiélslra be deemed to have been admitted to the membership of ' ‘ such society from the date of receipt of such application in the office of the society. «’. (2) If at any time after the date of admission of the individual urldt?r 4 sub-section (1) , it is discovered that the individual concerned is not qulli‘ . ~ fled, under this Act, the rules or the bye-laws, to become a member of such society, the Registrar may, notwithstanding anything contained in . this Act. eitherEsuo main or on the application of the concerned society ' within a period of three months from the date of such discovery $ch notice to such individual to show cause why he should not be remOVCd ' ’ from the membership of the society, and upon an order of the Regisml’ made in this behalf such individual shall, from the date of the 0rd“: cease to be the member of such society."

5 rifft g ;PRIM Vrf TIM, 2.0 gaila T, 192 6

3. In section 29 of the principal Act,—

in sub-section• -(2)7 the proviso shall be omitted and be deemed to have been omitted with effect from June 25, 1976.

for sub-section (4), the following sub-section shall be substituted and be deemed to have been substituted with effect from February 16,

Amendment of section 29.

1976 :— "(4) (a) Where, for any reason whatsoever, the election of the

elected members of the Committee of Management has not taken place or could not take place before expiry of the term of elected members, the Committee of Management shall, notwithstanding anything -to the contrary in this Act or the rules, or the bye-laws of the Society, cease to exist on the expiry of such term.

(b) On or as soon as may be after the expiry of such term, the Registrar shall appoint an Administrator for the management of the affairs of the society until the reconstitution of the Committee of Management in accordance with the provisions of this Act, the rules and the bye-laws of the society, and the Registrar shall have power to change the Administrator from time to time:

Provided that so long as no Administrator is appointed under this sub-section, the Secretary or the Managing Director, as the case may be, of the society shall be in charge only of the current duties of the Committee of Management.

Explanation—Where results of the election of members of the Committee of Management have not been or could- not be declared, for any reason whatsoever, before the expiry of the term of the elected mem- bers of the outgoing Committee, it shall be deemed that the election of the elected members of the Committee has not taken place within the meaning of this sub-section ;";

for sub-section (6), the following sub-section shall be substituted and shall be deemed to have been substituted with effect from February 16, 1976, namely

"(6) The Administrator appointed under sub-section (4) shall as soon as may be, but not later than the expiry of one year from the date of commencement of the Uttar Pradesh Co-operative Societies (Amendment and Validation) kat, 1976 or from thefl date of his appointment, whichever is later, arrange for the reconstitution of the Committee of Management in accordance with this Act, the rules and the bye-laws of the society to take over the management of the society from him.

Explanation—Notwithstanding that the process of election may have commenced before the appointment of Administrator under sub-section (4), a fresh process of election shall be commenced after such appointment"

sub-section (7) shall be omitted and be deemed to have been omitted with effect from February 16, 1976.

In section 34 of the principal Act, in sub-section (I), in the second proviso, for the words "Provided further that" occurring in the beginning, the words "Provided further that notwithstanding anything contained in the preceding proviso," shall be substituted and be deemed to have been substituted with effect from January 17, 1972.

After Chapter XI of the principal Act, the following new Chapter shall be inserted, and be deemed to have been inserted with effect from August 28, 1976, namely :—

"CHAPTER XI-A Insured Co-operative Banks

Chapter 'insured co-operative bank' means a co-operative bank insured under the Deposit Insurance Corporation Act, 1961; hereinafter in this Chapter referred to as the

said Act.

90-A. In this Interpretation.

Amendment of section 34.

Insertion of new Chapter XI-A.

ear stew 931mm we, 2.0 HEWT, 1976 In section 29 of the principal Act,— , Sgfiggggclt 0f (i) in sub-section '(2)',:the previso sliall be omitted and be deemed to have been omitted with effect from June 25, 1976. (ii) for sub-section (4), the following sub-section shall be substituted and be deemed to have been substituted with effect from February 16, 1976 :— "(4) (a) Where, for any reason whatsoever, the election of the elected members of the Committee of Management has not taken placeor could not take'place before expiry of the term of elected members,” the Cemmittee of Management shall, notwithstanding anything to the contrary in this Act or the rules, or the bye-laws of the Society, cease to exist on the expiry of such term. (b) On or as soon as may be after'the expiry of such term, the Registrar shall appoint an Administrator for the management of the affairs of the society until the reconstitution of the Committee of Management in accordance with the provisions of this Act, the rules and the bye-laws of the society, and the Registrar shall have power to change the Administrator from time to time: Provided that so long as no Administrator is appointed under this sub-section, the Secretary or the Managing Director“ as the case may be, of the society shall be in charge ohly of the current duties of the Committee of Management. Explanation—Vvhere results of ’the election of members of the Committee of Management have not been or could-not be declared, for any reason whatsoever, before the expiry of the term of the elected mem- bers of the outgoing Committee, it shall be deemed that the election of the elected members of the Committee has not taken place within the meaning of this sub-section ;"; (iii) for sub-section (6) , the following sub-section shall be substituted and shall be deemed to have been substituted with effect from February 16, 1976, namely :— “ (6) The Administrator appointed under sub-section (4) shall . as soon as may be, but not later than the expiry of one year from the date of commencement of the Uttar Pradesh Co—operative Societies (Amendment and Validation) Act, 1976 or from the date of his appointment, Whichever is later, arrange for the reconstitution-of the Committee of Management in accordance with this Act, the rules and the bye—laws of the society to take over the management of the society from him. Explauati(nu—Notwithstanding that the process [of election may have commenced before the appointment of Administrator under sub-section (4), a fresh process of election shall be commenced aEter such appointment." (iv) subsection (7 shall be omitted and be deemed to have been omitted with effect rom February 16, 1976. 4. In section 34 of the principal Act, in sub-section (1), in the second Amendment of ;‘proviso, for the words “Provided further that" occurring in the beginning, SCCti°n34- I the words ~“Provided further that notwithstanding anything contained in the preceding proviso,” shall be substituted and be deemed to have been substituted with eEect from January 17, l972. 5. After Chapter XI of the principal Act, the following new Chapter shall “153mm“ new be inserted, and. be deemed to have been inserted with effect from August 28, Chapter KM" 1976, namely :— , , - " "- .s ., , ,. “$93 ”CHAPTER XLA’ Insured Co-operative Bank: 90-A. In this Chapter ‘insured co-operative bank’ means a co-operative Interpretation. bank insured under the Deposit Insurance Corporation Act, 1961,’ hereinafter in this Chapter referred to as the said Act.

6 3•ff 51i1f1 s51frIM71.1.;17a-, 20 R•TRrT, 1976 •

90-B. Notwithstanding anything contained in this Act, the following Special orovi- provisions shall apply to every insured co-operative sions applicable bank, namely: — to Insured Co- operative Banks.

an order sanctioning a scheme or resolution for the amalga.' motion or merger or division or winding up of an insured co-operative bank may be made by the Registrar only with the previous sanction in .. writing of the Reserve Bank;

an order for the winding up of an insured co-operative bank - shall be made under the provisions of this Act if so required by the Reserve Bank in the circumstances referred to in the section 13-D of the said Act ;

if the Reserve Bank is of opinion that it is necessary so to do In the public interest or for preventing the affairs of an insured co- operative bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of such co-operative bank, it may require the Registrar to pass an order • - for supersession of the Committee of Management or other managing • body (by whatever name called) of such co-operative bank and to • appoint an administrator therefor for such period or periods not exceeding five years in the aggregate as may, from time to time, be specified by the Reserve Bank and the Registrar shall pass an order accordingly and the remaining provisions of sections 35 and 36 shall., apply in relation to such an order as if it were an order made under • section 35, but the requirements of that section to afford the Corn- ' mittee of Management an opportunity of being heard and to obtain . - the opinion of the general body of the society shall not be applicable;

• in the event of the Chairman and members of the Committee

of Management of an insured co-operative bank vacating their respective offices under sub-section (1) or sub-section (2) of section 35-A, the Reserve Bank may require the Registrar to make such': arrangements as it thinks proper for the management of the affairs • of such bank and the Registrar shall pass an order accordingly, and the remaining provisions of section 35-A shall apply in relation • to such an order as if it were an order made under that section:

an order sanctioning a scheme of or the resolution for - amalgamation or merger or the division or winding up of an insured co-operative bank or of the supersession of the Committee of Management or other managing bodies (by whatever name called)': of such bank and the appointment of an administrator thereof ." made with the previous sarfction in writing or on the requisition

- of the Reserve Bank shall not be called in question in any manner ; and

the liquidator or the insured co-operative bank or the : transferee bank, as the case may be, shall be under an obligation • to repay to the Deposit Insurance Corporation the sums mentioned in section 21 of the said Act in the circumstances and to the extent and in the manner referred to in that section."

Validation. 6. Notwithstanding any judgment, decree or order of any court,—

(1) any order passed or purporting to have been passed before the... commencement of this Act, by the Registrar under sub-section (4); of section 29 of the principal Act, shall be deemed to be valid as if the,, amendments made in the said sub-section by this Act were in force at, all material times ;

the Registrar may pass any such fresh order in accordance with the - provisions of the said section 29 as amended by this Act as he may think fit ;, ,

every nomination of Chairman of the Committee of Management of a Society made or purporting to be made by the State Government under ' section 84 of the principal Act, shall be deemed to be validly made as

art? were nmurrfinaz, 20 amt, 1976 - ; 90-13. Notwithstanding anything contained in this Act. the following . Special pi'O‘.‘i-_ provisions shall apply to'every insured cooperativej_ sions applicable 1 ;_ to Insured Co- bank’ nan ely operative Banks. . a... (i) an order sanctioning a scheme or resolution for the amalgafi mation or merger or division or winding up of an insured cooperative bank may be made by the Registrar only with the previous sanction in '_ writing of the Reserve Bank ; (ii) an order for the winding up of an insured co-operative bank- shall be made under the provisions of this Act if so required by the' Reserve Bank in the circumstances referred to in the section lS—D of ' the said Act ; - (iii) if the Reserve Bank is of opinion that it is necessary so to do ' in the public interest or for preventing the affairs of an insured co- operative bank being conducted in rt manner detrimental to the interest of the depositors or for securing the proper management of such co-o ' ‘ . for supersession of the Committee of ging ‘ body (by whatever name called) of such co-operative bank and to _, ‘ ‘ ' or such period or periods notp' as may. from time to time, be e Registrar shall pass an order accordingly and the remaining provisions of sections 85 and 36 shall.” apply in relation to such an order as if it were an order made under J - section 35, but the requirements of that section to afford the Com- '. mittee of Management an opportunity of being heard and to obtain the opinion of the general body of the society shall not be applicable; - (iv) in the event of the Chairman and members of the Committee of Management of an insured co-operative bank vacating their. ‘ respective offices under sub—section (1) or sub-section (2) of sectionfi -_ 55-A, the Reserve Bank may require the Registrar to make such 2' arrangements. as it thinks proper for the management of the affairs _. ,- of such bank and the Registrar shall pass an order accordingly," and the remaining provisions of section 3‘5~A shall apply in relation to such an order as if it were'an order made under thlat section; (v) an order sanctioning a scheme of or the resolution for amalgamation or merger or the division or winding up of an insured . V ' co-operative bank or of the supersession of the Committee of Management or other managing bodies (by whatever name called)”: ' of such bank and the appointment [administrator thereof, made with the previous san‘ction in writing or on the requisition' of the Reserve Bank shall not be called in question in any manner ;" and "‘ _ . (vi the liquidator or the insured cooperative bank or the} trans eree bank, as the case may be, shall be under an obligation 1 to repay to the Deposit Insurance Corporation the sums mentioned." _, in section 21 of the said Act in the circumstances and to the, " extent and in the manner referred to in that section." ~-v_—=: : Validation. 6. Notwithstanding any judgment, decree or order of any court,—. (i) any order passed or purporting to have been passed before th. _ commencement of this Act, by the Registrar under sub-section (4): of section 29 of the principal Act, shall be deemed to be _valid as if the... » amendments made in the said Sub-section by this Act were in force at__.‘ all material times; (ii) the Registrar may pass any such fresh order in accordance with the: - provisions of the said section 29 as amended by this Act as he may think fit :. (iii) every nomination of Chairman of the Committee of Managemégrii - of a Society made or' purporting to be made by the State Government under ' section 34 of the principal Act, shall be deemed to be validly made as

397 A iV TUIVTir Wel 20 z-171-ff Ty 1976

if the amendment made in the said section by this Act, were in forte at all material times.

In rule 445 of Uttar Pradesh Co-operative Societies Rules, 1968 the proviso shall be 'omitted and be deemed to have been omitted with effect from February 16, 1976.

(1) . The Uttar Pradesh Co-operative Societies (Amendment and Validation) Ordinance, 1976 and the Uttar Prndesh Co-operative Societies

au- (Second Amendment) Ordinance, 1976, are hereby repealed.

(2) Notwithstanding such repeal anything done or any action taken Under the principal Act as amended by the said Ordinances shall be deemed to have been done or taken under the corresponding provisions of the principal Act as amended by this Act as if the provisions of this Act. were in force at all material times.

Consequential amendment to rule 445.

Repeal and sav- ings.

Tarr 4,

Tvr 9Tzr -47,

41'94

9'10 TI,T10 zfe‘0 to 367 ff10(1410)--1976--7 50 (40) I

3w: EE‘ST we term flare, 20 Karat, 1976 if the amendment made in the said section by this Act, were in force at all material times. 7. ‘ln rule 445 of Uttar Pradesh C0-0perative Societies Rules, 1968 the proviso shall be'omitted and be deemed to have been omitted with. effect om February 16, 1976. as 8. (l)' The Uttar Pradesh Co—operatiVe Societies (Amendment and Validation) Ordinance, 1976 and the Utt‘ar Pr‘adesh Cooperative Societies (Second Amendment) Ordinance, 1976, are hereby repealecl. ‘1 J (2) Notwithstanding such repeal anything done or any action taken tinder :he principal Act as amended by the said Ordinances shall be deemed to have been done or taken tinder the corresponding pro-visions 0E the principal Act as amended by this Act as if the provisions of this Act were in force at all material times. ’ ' mm it, Consequential amendment to rule 445. Repeal and sav- in gs. 93mm HT»: Th'lTfi', flair | lfroqrro Ignite-40 (fro 36'] H10(fw10)——197e——750 (do) |