EXECUTIONS OF AWARDS AND ORDERS
Enforcement of 91. Notwithstanding anything contained in Chapter IX, or any other law for the charge 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 and empowered by him in this behalf may, on the application of a co-operative society and on being satisfied of the existence of the debt or outstanding demand make an order direction the payment of such debt or outstanding demands due to the society by any member or past or deceased member, by
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sale of the property or any interest therein, which is subject to a charge under section 39 :
Provided that no order shall be made under this section, unless the member, past member or the nominee, heir or legal representative of the deceased member, has been served with a notice of the application and has failed to pay the debt or outstanding demand within one month from the date of service.
Execution of 92. Every award made under section 71, and capable of execution in the manner certain orders provided below, and every order so capable of execution made by the and awards Registrar under section 67 or sub-section (2) of section 68 or under section 91, or by the liquidator under section 74 or by an appellate authority on appeal under section 97 or 98 or on review under section 99 or as an interlocutory order under section 100 or a certificate for recovery issued under section 95-A shall, if not carried out, be executed-
(a) in the manner provided by law for the time being in force for the recovery of arrears of land revenue where the order is for the recovery of money:
Provided that an application for the recovery of any such sum is made to the collector and accompanied by a certificate signed by the Registrar or any person authorized by him in this behalf; Provided further that such application is made within 12 years from the date fixed for payment in the order or award and if no such date is fixed, from the date of the order or award, as the case may be;
(b) by the Registrar or any other person subordinate to him and empowered by him in this behalf, by attachment and sale or sale without attachment of any property of the person or the co-operative society against whom the order or award has been made; or
(c) by the civil court having jurisdiction over the matter as if the order or award were the decree of that court.
Registrar or 93. The Registrar or any person empowered by him in this behalf shall be person deemed, when exercising any power under this Act for the recovery of any empowered by amount by the attachment and sale or by sale without attachment of any him to be a civil property or when passing any orders on any application made to him for court for certain
such recovery or for taking steps in aid of such recovery, to be civil court purposes
for the purposed of Article 136 of eh Schedule to the Indian Limitation Act, 1963 (Act XXXVI of 1963).
Attachment of 94. If the Registrar is satisfied on application, inquiry or otherwise that any property before person, with intent to delay or obstruct the enforcement of any order, award or order decision or award that may be made against him under the provisions of this Act, is about to dispose of , or remove from the jurisdiction of the Registrar, the arbitrator, the board of arbitrators or the liquidator, as the case may be, the whole or any part of his property, he may, unless adequate security is furnished, direct the attachment of the said property, and such attachment shall have the same effect as if made by a competent civil court.
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Recovery of 95. (1) All sums due from a co-operative society or from an officer or member or sums due to past member of a co-operative society as such to the State Government or Government the Central Government society including any costs awarded to any such Government under any provision of this Act, may, on certificate issued by the Registrar in this behalf, be recovered in the same manner as arrears of land revenue.
(2) Sums due from a society to the State Government or the Central Government and recoverable under sub-section (1) may be recovered, firstly, from the property of the society secondly, in the case of a society the liability of the members of which is limited, from the members, past members or the estates of deceased members, subject to the limit of their liability, and thirdly, in the case of other societies, from the members, past members, or the estate of deceased members:
Provided that the liability of past members and the estates of deceased members shall in all cases be subject to the provisions of section 25. Special 95.A (1) The Registrar may, on an application made by society referred to in section provision for 34 or an agricultural credit society for the recovery of arrears of any loan recovery of advanced by it or any installment thereof to any member and on its certain dues of furnishing a statement of accounts in respect of such loan and after making agricultural
such inquires, if any, as he thinks fit, issue a certificate for recovery of the society
amounts due.
(2) A certificate issued by the Registrar under sub-section (10 shall be final and conclusive proof of the dues which shall be executable under section 92.
CHAPTER XIII
APPEAL AND REVIEW
Co-operative 96. (1) The State Government may constitute a tribunal or tribunals, each to be Tribunal called co-operative Tribunal, to exercise the functions conferred on the tribunal under this Chapter and where more than one tribunal is constituted, the State Government may fix, by order in writing, the area within which or the class of cases over which each tribunal shall exercise jurisdiction.
(2) A Tribunal shall consist of three persons possessing such qualifications as may be prescribed.
(3) Where the Tribunal consist of three members, any two members shall form the quorum for the disposal of its business:
Provided that in the event of a difference of opinion between them the matter over which there is a difference of opinion, shall be placed before the third member and the opinion with which the third member agrees, shall be deemed to be the opinion of the Tribunal. Where a matter is heard by all the three members of the tribunal and there is a difference of opinion, the majority opinion shall prevail.
(4) Any vacancy in the membership of the tribunal shall be filled by the State Government.
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(5) The procedure for holding the meeting and disposal of business by a Tribunal shall be such as may be prescribed.
Appeals against 97. (1) Any person aggrieved by any award of the Registrar made under clause (a) awards of of sub-section (1), or sub section (2) of section 71 may within forty five Registrar days after the date on which the award is communicated to such person appeal to the Tribunal.
(2) The Tribunal after hearing an appeal under this section may pass such order as it may deem just.
Appeal against 98. (1) An appeal against-
the awards,
orders and (a) an order of the Registrar made under sub-section (2) of section 7 decisions refusing to register a co-operative society;
(b) an order of the Registrar under sub-section (3) of section 12 refusing to register, or under sub-section (2) of section 14 registering an amendment in the bye-laws of a co-operative society;
(c) a decision of co-operative society refusing to admit any person as a member of the society under sub-section (2) of section 26 of expelling any member of the society under sub-section (1) of section 27 or an order passed under sub-section (1) of section 38 for removal of an officer from the office held by him or to disqualify him from holding any office;
(d) an order of the Registrar under sub-section (2) of section 27 expelling or removing a member or under sub-section (2) of section 38 removing or disqualifying any officer of a co-operative society;
(e) an order of the Registrar superseding the committee of management of a co-operative society under section 35;
(f) an order made by the Registrar, under section 67 apportioning the cost of an enquiry held under section 65 or an inspection made under section 66;
(g) an order of surcharge made by the Registrar under section 68;
(h) an award made by an arbitrator or board of arbitrators under sub- section (1) or sub-section (2) of section 71;
(i) an order made by the Registrar under section 72 direction the winding up of a co-operative society;
(j) any order made by the liquidator of a co-operative society in exercise of the powers conferred on him by clause (b) and (g) of section 74;
(k) any order made by the Registrar on a question arising between the parties or proceedings under clause (b) of section 92 and of the nature referred to in section 47 of the code of civil procedure, 1908,(Act V of 1908);
(l) an order for attachment of any property made by the Registrar under section 94;
(m) an order of the Registrar under section 16 (A) direction amalgamation
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or merger, or under section 16(B) direction division;
(n) an order passed by the Registrar under section 126 annulling any resolution or canceling any order, may, within forty five days of the communication of the order, decision or award to be appealed against, be preferred by the aggrieved party to the authorities mentioned in sub-section (2) in the manner prescribed.
(2) An appeal under clauses (c), (d), (e), (f), (g), (k), and (i) of sub- section (1) shall be preferred to the Tribunal, and an appeal under clauses (a), (b), (h), (i), (j), (m) and (n) of the said sub-section shall be preferred—
(a) if the decision or the order was made by the Registrar, to the State Government;
(b) if the decision or order or award was made by any other person or authority, to the Registrar;
(c) if the order or award was made on a dispute relating to an election, to the Tribunal.
(3) Notwithstanding anything contained in clause (b) of sub-section (2) the State Government may by notification in the Gazette. Direct that appeals against awards mentioned in clause (h) of sub-section (1) shall, in respect of such cases or class of cases, as may be specified in the said notification lie to the Tribunal, and thereupon any person aggrieved by such award, may appeal to the Tribunal.
(4) The appellate authority after hearing an appeal under this section may pass such orders as it may deem fit.
Revision by 99.A The Tribunal may call for and examine the record of any proceedings in Tribunal which an appeal lies to it for the purpose of satisfying itself as to the legality or propriety of any decision or order passed and if in any case it shall appear to the Tribunal that any such decision or order should be modified annulled or revised, the tribunal may pass such order thereon as it may deem fit:
Provided that the Tribunal shall not take any action under this section if-
(a) the time for appeal against the decision or order has not expired;
(b) the decision or order has been made the subject matter of an appeal:
Provided further that no order shall be made under this section unless notice has been given to all interested parties and they have been given a reasonable opportunity of being heard.
Review of order 99.B (1) The appellate authority under section 97 or section 98, as the case may be, of appellate may on the application of any party, review its order in any case and pass in authority reference thereto such order as it thinks fit:
Provided that no such application shall be entertained unless the
appellate authority is satisfied that there has been a discovery of new and important matter of evidence which, after exercise of due diligence, was not within the knowledge of the applicant or could not be produced by him at the time when the order was made or that there has been some mistake or
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error apparent on the face of the record or for any other sufficient reason:
Provided further that no such order shall be made under this sub- section unless notice has been given to all interested parties and they have been afforded a reasonable opportunity of being heard.
(2) An application for review under sub-section (10 by any party shall be made within thirty days from the date of communication of the order of the appellate authority sought to be reviewed.
Powers of 99.C (1) The Registrar may of his own motion or on application call for and examine revision of the record of any officer subordinate to him being an officer exercising the Registrar and powers of the Registrar, and the Government may of their own motion or an Government application call for and examine the record of the Registrar including any officer exercising the powers of the Registrar in respect of any proceeding, not being a proceeding in respect of which an appeal to the Tribunal is provided by section 98 to satisfy himself or themselves as to the regularity of such proceedings, or the correctness, legality or propriety of any decision passed or order made thereon, and if in any case, it appears to the Registrar or the Government that any such decision or order should be modified annulled reversed or remitted for reconsideration he or they may pass orders accordingly:
Provided that every application to the Registrar or the Government for the exercise of the powers under this section shall be preferred within three months from the date on which the proceeding decision or order to which the application related was communicated to the applicant.
(2) No order prejudicial to any person shall be passed under sub-section (1) unless such person has been given an opportunity of making his representation.
(3) The Registrar or the Government as the case may, be any, suspend the execution of any decision or order pending the exercise of his or their power under sub-section (1) in respect thereof.
(4) The Registrar or the Government may award costs in proceedings under this section to be paid either out of the funds of the society or by such party to the application for revision as the Registrar or the Government may deem fit.
Interim orders 100. Where an appeal is preferred under section 97 or section 98, the appellate authority may, in order to prevent the ends of justice being defeated, make such interlocutory orders pending the decision of the appeal as it may deem fit.
Transfer of 101. (1) The State Government may, on the application of any party and after appeals affording an opportunity to the other party of being heard, transfer an appeal filed under section 97 from one Tribunal to another Tribunal.
(2) The State Government may transfer to itself an appeal filed under section 98 pending before the Registrar of co-operative societies appointed under sub-section (1) of section 3 and dispose it of.
(3) The Registrar of co-operative societies appointed under sub-section (1) of section 3 may transfer an appeal pending before one officer exercising the powers of Registrar under sub-section (2) of section 3 to any other officer exercising similar powers, or transfer an appeal pending before any such
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officer to himself and dispose it of. Finality of 102. Every award made under section 71 and every order of the nature referred orders and to in sub-section (1) of section 98 where no appeal has been preferred decisions against such award or order under section 97 or section 98, as the case may be, and every decision in appeal under the said sections, shall, subject to section 99, be final and binding on the parties concerned and shall not be questioned in any court.
CHAPTER XIII -A UTTARAKHAND STATE CO-OPERATIVE COUNCIL
Constitution of 102.A (1) There shall be a council to be called the Uttarakhand State co-operative State co- Council consisting of such number of members including the Chairman and operative the Vice-chairman, as the State Government may determine and nominate Council, its from time to time.
functions etc.
(2) The State Government shall appoint a Secretary in the council.
(3) The functions of the council constituted under sub-section (1) shall be as follows, namely---
(a) to advise the State Government on all matters relating to co-operative movement;
(b) to revive the co-operative movement and to suggest ways of co- ordinating the activities of co-operative societies in the State;
(c) to suggest ways and means to remove the difficulties experienced by the co-operative societies;
(d) to report to the State Govt. on such matters as may be referred to it by the State Government;
(e) to recommend the plans and policies for the development of co- operative movement in the State;
(f) to evaluate existing schemes and suggest new schemes for co-operative development especially for the development of backward classes and economically weaker sections of the society;
(g) to advise the State Govt. for the implementation of special scheme of economic development through co-operative methods; and
(h) to undertake studies for any of the purposes aforesaid either through department or specialized bodies.
(4) The State Government may by general or special order provide for—
(a) the calling of the meetings of the council and the procedure at such meetings;
(b) duties of the Secretary to the council;
(c) sub-committee or committees of the council; and
(d) the term of office of members of the council and traveling and daily allowances admissible to the members of the council—
(i) State co-operative council's term will be 3 years;
(ii) There will be maximum eleven members of the State co-operative council;
(iii) The State co-operative council's Secretary will not be below the rank of Additional Registrar co-operative societies.
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CHAPTER XIV
OFENCES AND PENALTIES
Offences and 103. (1) It shall be an offence under this Act, if- penalties under (A) A committee of management of a co-operative society or a member or the Act
an officer thereof fails without reasonable cause to submit any return, report or information required under the provisions of this Act by the Registrar or by a person of a rank not below that specified by the State Government duly authorized by the Registrar in this behalf, or willfully makes a false return or furnishes false information or fails to maintain proper account; or
(B) an officer employee or a member of a co-operative society fraudulently destroys, mutilates, alters, falsifies or abets the destruction, mutilation, alteration, or falsification of any books, papers, or securities, or makes or abets the making of any false entry in any register, book of account or document belonging to the society; or
(C) the committee of management of a co-operative society, or an officer in possession of the books, records and property of he society refuses or fails without reasonable cause to hand over the custody of such books, records and property belonging to the society to a person lawfully entitled to receive the same under this Act, the rules or the bye-laws; or
(D) the committee of management of a co-operative society or an officer fails, without reasonable cause, to establish a provident fund for its employees as required by section 63;
(E) any officer or a co-operative society fails to maintain such accounts and registers as may be prescribed; or
(F) an officer or a member of co-operative society who is in possession of information, books and records, fails, without reasonable cause, to furnish such information or produce books and papers or give assistance to the person appointed by the State Government under sub-section (1) of section 64, or any person authorized by him to conduct audit, or to the Registrar or a person authorized or appointed by the Registrar under section 64,65,66,73 or 123;
(G) an employer, without sufficient cause, fails to pay to a co-operative society the amount deducted by him under sub-section (2) of section 40 within a period of 14 days from the date on which such deduction is made ; or
(H) an officer or member of a co-operative society or any person does any act or omission declared by the rules to be an offence.
(2) (a) whoever commits an offence under clauses (i), (iv), (v), (vii), or (viii) of sub-section (1) shall on conviction be liable to be punished with fine which may extend to five thousand rupees :
Provided that, any person who does an act in relation to elections which has been made an offence under the rules, shall be punishable with imprisonment for such term not exceeding two years, or with fine not exceeding rupees ten thousand as may be provided in the rules or with both;
(b) whoever commits an offence under clause (ii), clause (iii) or clause (vi) of sub section (1) shall on conviction be liable to be punished with
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imprisonment of either description which may extend to two years and shall also be liable to fine which may extend to five thousand rupees.
(c) every offence referred to in clause (b) shall be cognizable and bailable. Penalty for 104. Any person contravening the provisions of sub-section (2) of section 8 or of contravention section 106 shall be punishable with fine which may extend to one thousand of section 8 or rupees and in the case of continuing offence with further fine of one section 106 hundred rupees for each day on which the offence is continued after conviction thereof.
Compounding 104.A (1) the Registrar may, either before or after the institution of the prosecution, of offences compound any offence punishable under this Act on realization of such amount of composition fee as he thinks fit, and where such offence is punishable with fine only then such composition fee shall not exceed the maximum amount of fine fixed for the offence.
(2) Where the offence is so compounded-
(a) before the institution of the prosecution, the offender shall not be liable to prosecution for such offence and shall, if in custody, be set at liberty;
(b) after the institution of the prosecution, the composition shall amount to acquittal of the accused.
Cognizance of 105. (1) No court, inferior to that of a stipendiary magistrate shall try any offence offences under this Act.
(2) No prosecution shall be instituted under this Act without the previous sanction of the Registrar and such sanction shall not be given without affording to the person sought to be prosecuted an opportunity to represent his case.
CHAPTER XV
MISELLANEOUS PROVISIONS
Prohibition 106. No person other than a co-operative society shall trade or carry on business against the use under any name or title of which the word "lgdkjh" or its equivalent in of word or "co-
English, co-operative; forms part. operative"
Address of co- 107. (1) Every co-operative society shall have an address registered in the prescribed operative manner and all notices and communications to the society may be sent at society such address the society shall send to the Registrar notice of any change of such address within thirty days of the change.
(2) Every co-operative society shall, at every office or place where it carries on business, display its name and address of its registered office along with the words "Registered" under this Act in legible character at a conspicuous place and shall also mention the same-
(a) in all notices and other publications authorized by it;
(b) in all business contracts, business letters, order for goods, invoices,
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statements of accounts, receipts and letters of credits; and
(c) in all bills of exchange, promissory notes, endorsements, cheques and orders for money it signs or that are signed on its behalf. Copies of Act 108. Every co-operative society shall keep a copy of this Act, the rules made etc. to be open thereunder, its bye-laws, last audited annual balance-sheet, profit and loss for inspection account and minutes of the general meetings open to inspection, free of charge at the registered address of the society.
Powers of civil 109. (1) while deciding a dispute, making an enquiry or inspection, hearing an court to appeal or investigation any claim, the Registrar, the arbitrator, the board of Tribunals, arbitrators, the tribunal or the liquidator shall have all the powers of a civil Arbitrators and court while trying a suit under the code of civil procedure, 1908, in respect others in certain
of the following matters namely-
matters
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of any document;
(c) proof of facts by affidavits; and
(d) issuing commissions for examination of witnesses.
(2) An affidavit to be filed under sub-section (1) may be sworn before the Registrar, the arbitrator, the board of arbitrators, the Tribunal or the liquidator, as the case may be, or before an officer appointed in this behalf by the Registrar or the Tribunal.
Bar of 110. Save as expressly provided in this Act, no civil or revenue court shall have jurisdiction of any jurisdiction in respect of -
court
(a) the registration of a co-operative society or its bye-laws or of an amendment of a bye-law;
(b) the super session or suspension of a committee of management;
(c) any dispute required under section 70 to be referred to the Registrar;
(d) Any other order or award made under this Act. Power to 111. Notwithstanding anything contained in this Act, the State Government may, exempt society by special order in each case and subject to such conditions, if any, as it from conditions may impose, exempt any co-operative society from any of the requirements of registration of this Act as to registration.
Service of 112. Except where otherwise provided by or under this Act, every notice or order notice under the issued or made under this Act may be served on any person by properly Act addressing to the last known place of residence or business of such person and posting by registered post, a letter containing the notice or order, and unless the contrary is proved, such service shall be deemed to have been effected at the time at which the letter would be delivered in the ordinary course.
Notice 113. No suit shall be instituted against a co-operative society or any of its necessary in officers in respect of any act relating to the constitution, management or the suits 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
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such notice has been so delivered or left & the Registrar has passed orders on that.
Control of 113.A No expenditure from the funds of a society shall be uncured without prior expenditure in sanction in writing of the State Government for the purposes of defraying litigation in the costs of any proceedings filed or instituted in any court by any officer or certain cases committee of management of the society against any order made or purporting to be made by the Registrar or the State Government under section 29, section34, section 35 or section 35-A.
Act of co- 114. No Act of a co-operative society or any committee of management or of any operative officer of a co-operative society shall be deemed to be invalid by reason societies not to only of the existence of any defect in the constitution of such society or be invalidated committee or in the appointment or election of such an officer or on the by certain
ground that such officer was disqualified for such appointment or election. defects
Indemnity 115. No suit prosecution, or other legal proceeding shall lie against the trustee appointed under this Act, the Registrar or any person subordinate to him or acting on his authority, a liquidator, an arbitrator, the board of arbitrators, the Tribunal or any member thereof in respect of anything in good faith done or purporting to have been done under this Act.
Partnership and 116. (1) Partnership of societies:--
joint ventures Any two or more societies may, with the prior approval of the Registrar, by resolution passed by three-fourths majority of the members present and voting at a general meeting of each such society, enter into partnership for carrying out any specific business or businesses Provided that each member has had clear ten days written notice of the resolution and the date of the meeting
Nothing in the Indian Partnership Act 1932 shall apply to such
partnership.
(2) Joint venture by societies:-
(1) any society or societies may with the prior approval of the State Government enter into joint venture with any Government or Private undertaking for carrying on any specific business or businesses including industrial investment financial aid or marketing and management expertise;
(2) Before approving any such scheme of joint venture by any society or societies under sub-section (1) the State Government shall have due regard to the following matters namely---
(a) that the scheme is economically viable;
(b) that it can be implemented without any way, eroding the co- operative character of the society or the societies concerned, and
(c) that the scheme is in furtherance of the interests of the members of the society or societies concerned, or is in public interest and in the interest of the co-operative movement in general.
Promotion of 117. (1) Any co-operative society may, by a resolution passed at general meeting by subsidiary a majority of members present and voting promote one or more subsidiary organization organization or organizations may be registered under any law for the time being in force, as agreed to by general body.
(2) The annual reports and accounts of any such subsidiary organization shall
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be placed before the general meeting of the promoting co-operative society each year.
Board of 118. When central/Apex co-operative societies are continuously in loss and reconstruction where loses are so much that they have eaten the entire share capital and caused deficiency in assets to the extent that the same exceed liabilities, before winding up, such societies their cases can be referred by the Registrar to the board of reconstruction for examining if such societies can be revived by infusing capital & Technological support or by any other manner. The board or reconstruction will be composed of the following members---
(1) Managing Director of Uttarkhand State co-operative Bank —Chairman
(2) One nominee of Directorate of Institutional finance not below Dy. Director- Member
(3) One representative of Audit Department not below the rank of class I officer-- Member
(4) One representative of Lead Bank not below the rank of Asstt. General Manager - Member
(5) One representative of State Govt. co-operation Department not below the rank of Deputy Secretary - Member
(6) One representative of State finance Department not below the rank of Dy. Secretary- member
(7) Deputy or Assistant Registrar, co-operative societies at the head quarter of Registrar, co-operative societies to be nominated by Registrar, co-operative societies as -member-Secretary.
The board will consider cases referred to it and send its duly considered recommendations in detail to the State Govt. through Registrar, co-operative societies whether the society should be wounded up or its affairs could be reorganized or reconstructed. In the latter course full package containing recommendations about infusion of capital, technology, managerial and other support from Government and other institutions will be proposed by the Board and send to Government for decision. Action will follow after Government decision at the level of Registrar, co-operative societies.
For revival of primary co-operative societies, which are incurring losses continuously, the Registrar will make a district level reconstruction committee and ensure. The revival of such societies in accordance with the decisions of the said committee.
Functions of 119. An apex society may, for servicing its constituents and in accordance with apex society its bye-laws, perform the following functions, namely---
(a) to take measures for the observance of co-operative principles;
(b) to promote and organize co-operative societies and for this purposes frame model bye-laws, issue guidelines for making regulations and policies for consideration;
(c) to provide co-operative training, education and information and promote co- operative principles;
(d) to undertake research and evaluation and assist in preparation of perspective development plans of member co-operative societies;
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(e) to promote harmonies relations amongst member co-operative societies;
(f) to represent the interest of member co-operative societies and to make efforts for policies and legislation favorable to co-operative societies;
(g) to provide business services on behalf of its members;
(h) to provide co-operative and management of development services to member co-operative societies including participation in board meetings where such member societies are invited;
(i) to assist member co-operative societies in regular conduct of general meetings;.
(j) To evolve code of conduct for its members;
(k) To evolve the viability norms for its members;
(l) To provide legal aid and advice to its members;
(m) to provide any other service in the interest of its members. Qualifications 120. (1) No person shall be appointed by a co-operative society as a Chief Executive for appointment (other than managing director of apex society who will be a Govt. nominee) as secretary, secretary, manager, accountant or as any other officer to be paid or manager, etc. of remunerated by the society unless he possesses such qualifications and co-operative
furnishes such security, if any, as may be specified by the Registrar from societies
time to time in respect of any co-operative society or class of societies.
(2) Any person appointed in contravention of the provisions contained in sub- section (1) shall be liable to removal from his office by the Registrar. Power of 121. (1) The Registrar may, from time to time, frame regulations to regulate the Registrar to emoluments and other conditions of service including the disciplinary determine control of employees in a co-operative society or a class of co-operative terms of societies and any society to which such terms are applicable, shall comply employment
with those regulations and with any orders of the Registrar, issued to secure of society
such compliance.
(2) The regulations framed under sub-section (1) shall be published in the Gazette and take effect from the date of such publication. Authority to 122. (1) The State Government may constitute an authority or authorities, in such control manner as may be prescribed, for the recruitment, training and disciplinary employees of control of the employees of co-operative societies, or a class of co-operative co-operative societies, and may require such authority or authorities to frame regulations societies
regarding recruitment, emoluments, terms and conditions of service including disciplinary control of such employees and, subject to the provisions contained in section 70, settlement of dispute between an employee of a co-operative society and the society.
(2) The regulations framed under sub-section (1) shall be subject to the approval of the State Government and shall. After such approval, be published in the Gazette, and take effect from the date of such publication and shall supersede any regulations made under section 121.
(3) Direct recruitment of employee of class III and IV at district level shall be made by the committee constituted by the Registrar and procedure laid
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down by Registrar co-operative societies.
(4) In the Direct recruitment of employees of class I and II the Chairman of the concerned society shall be a member of selection Board/committee. Centralization 122.A (1) Notwithstanding anything contained in this Act, the State Government may of certain by rules provide for the creation of one or more services of such employees services of such cooperative societies or class of a cooperative societies as the State Government may think fit, common to such co-operative societies and prescribe the method of recruitment, appointment, removal and other conditions of service of persons appointed to any such service;
(2) When any such service is created, all employees of such societies existing on the date of creation of such service on the posts included in such service, shall be deemed to have been provisionally absorbed in the service with effect from the date of creation of such service :
Provided that any such employee may, by notice in writing to the prescribed authority within the prescribed period, intimate his option of not becoming a member of such service, and in that event his services in the society shall stand determined with effect from the date of such notice and he shall be entitled to compensation from the society which shall be—
(a) in the case of a permanent employee, a sum equivalent to his salary (including all allowances) for period of three months or for the remaining period of his service, whichever is less;
(b) in the case of a temporary employee, a sum equivalent to his salary (including all allowances) for a period of one month or for the remaining period of his service, whichever is less.
(3) An employee provisionally absorbed under sub-section (2) may be absorbed finally in the service if found suitable after screening in accordance with the instructions issued by the Registrar; and the services of any such employee as is not found suitable for absorption in the service shall stand determined with effect from the date of issue of orders in that behalf by the prescribed authority and until such authority is prescribed, by the officer specified by the Registrar in that behalf in such instructions and he shall be entitled to compensation as laid down in clause (a) or clause (b) of sub-section (2) according as he was a permanent or a temporary employee. Constitution or 123. (1) The State Government may constitute or recognize one or more co- recognition of operative federal authorities, in such manner as may be prescribed and co-operative subject to such conditions as the State Government may impose, for the federal supervision of co-operative societies or a class of co-operative societies and authority to
may grant loans of subsidies to such authority or authorities in the manner supervise
working of co- prescribed.
operative (2) The State government may, by general or special order, require a co- societies operative society or a class of co-operative societies to make contribution of such a sum every year as may be fixed by the Registrar, towards the full or partial recoupment of expenditure incurred or likely to be incurred in respect of supervision of societies by the federal authority or authorities mentioned in sub-section (1).
(3) A co-operative society to which sub-section (2) is applicable shall pay to such authority or authorities within such time as may be fixed by the
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Registrar, the contribution as may be fixed under the sub-section, and if it fails to make such payment within such time, the amount shall be recovered as arrears of land revenue on a requisition made by the authority or authorities through the Registrar to the Collector of the district in which the registered office of the defaulting co-operative society is situate.
(4) Any officer or officers of the federal authority or authorities mentioned in sub-section (1) may be authorized by the Registrar by general or special order in writing to conduct inspection of a co-operative society or class of co-operative societies, the supervision of which has been entrusted to the federal authority or authorities under sub-section (1), provided that such officer or officers shall work under the general guidance, superintendence and control of the Registrar in exercise of such powers and report the result of inspection to the Registrar.
Registrar and 124. The Registrar, or any person appointed, or authorized to conduct audit other officers to under section 64 or to hold enquiry under section 65 or to make inspection be public under section 66,or authorize under section 123 to conduct inspection, an servants arbitrator or a member of the board of arbitrators to whom any dispute is referred under section 71, or a member of the Tribunal or a liquidator, or any person authorized by the Registrar under section 93 to make attachment and sale (or any officer of a co-operative society) shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code, (Act XIV of 1860).
Writing off 125. A co-operative society may, with the previous approval of the Registrar, non- write off such of the assets as are bad and cannot be recovered. The recoverable as Registrar shall give his approval with two months from the date of the sets receipt of proposal or in case of the refection proposal, the reason thereof shall be communicated to the concerned society.
Registrar's 126. The Registrar may-
power to annual
resolution of a (1) annual any resolution passed by the committee of management, or the co-operative general body of any co-operative society; or
society or (2) cancel any order passed by an officer of a co-operative society; cancel order
passed by an If he is of the opinion that the resolution or the order, as the case may officer of a co-
be, is not covered by the objects of the society, or is in contravention of the operative provisions of this Act, the rules or the bye-laws of the society, whereupon society in every such resolution or order shall become void and inoperative and be certain cases deleted from the records of the society :
Provided that, the Registrar shall before making any order, require the committee of management, general body or officer of the co-operative society to reconsider the resolution, or as the case may be , the order, within such period as he may fix but which shall not be less than fifteen days, and if he deems fit may stay the operation of that resolution or the order during such period.
Applicability- the Registrar can annual a resolution of the General body if he is of opinion that the resolution is in contravention of the provisions of the Act. A party aggrieved by such resolution is entitled to invoke the powers of the Registrar and request him to annul the resolution.
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Registrar power 127. It shall be competent for the Registrar to permit any co-operative society or to permit a co- societies carrying on the business of banking to disburse developmental operative society
to function as an loans for Agriculture & Rural Development scheme & allied activities laid agency for down in Chapter XVI.
disbursement of
developmental
Loans for Agri-
culture and Rural
Development
Schemes and
Allied activities
Power to make 128. (1) The State Government may make rules to carry out the purposes of this Act. rules (2) In particular and without prejudice to the generality of the power under sub- section (1), the rules to be made under this section may provide for all or any of the following matters-
1- the applicant to whom, and the manner in which, the order refusing the registration of a co-operative society may be communicated by the
Registrar under sub-section(2) of section 7;
2- the matters in respect of which a co-operative society shall or may make bye-laws;
3- the procedure and conditions for change in the form and extent of the liability of a co-operative society;
4- the procedure to be followed for amendment of bye laws by a co-
operative society;
5- constitution committees of management;
6- the appointment of co-operative society of one or more of its members to represent and vote on its behalf at a meeting of another co-operative society of which it is a member;
7- rights and liabilities of ordinary members and the proportion of
members who are individuals and other members in the constitution of the general body or the committee of management of a co-operative
society having other co-operative societies also in its membership;
8- the exercise of the right of vote where a share is held jointly by more than one person;
9- the procedure for the nomination by a member of a person to whom the share or interest of such member on his death may be transferred or the value thereof may be paid;
10- the mode in which the value of the share of a deceased or past member shall be ascertained and its payment;
11- the election of the members and Chairman and Vice-chairman of the committee of management of a co-operative society, including
delimitation of constituencies, reservation of seats for women and
members be longing to weaker sections, settlement of election disputes, and levy of fees in respect of any such matter;
11-A- the nomination of women and members belonging to weaker sections in the committee of management of a co-operative society;
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12- the calling of a general meeting or a meeting of the committee of the management of a co-operative society and the quorum and procedure at such meetings;
13- the remuneration payable to a committee or administrator or administrators appointed in place of a committee of management superseded or suspended by the Registrar;
14- the qualification or disqualification for membership of committee of management of a co-operative society;
15- the restrictions against officers of co-operative society being interested in contracts with the society;
16- the matters connected with the direct and indirect partnership of the State Government in co-operative societies;
17- determination of distributable profits out of net profits for purposes of payment of dividend and bonus, and allocation to funds of a society; 18- the establishment and control of co-operative Education Fund, payment to be made to the Fund by a co-operative society out of its net profits and the mode of investment of the fund and its disposal; 19- the mode and conditions of investment of funds of a co-operative society and of establishment and investment of Provident Fund; 20- the object of reserve and other funds of a co-operative society may receive deposits and take loans;
21- the mode of disposal of reserve funds of a co-operative society, their utilization and mode of investment;
22- the extent and conditions subject to which a co-operative society may receive deposits and take loans;
23- the restrictions on transactions by a co-operative society with non members;
24- the restrictions on grant of loans by a co-operative society; 25- the form and standard of fluid resources to be maintained by co- operative societies accepting deposits and granting cash credits; 26- conducting of audit and levy of audit fees on co-operative societies; 27- procedure to be followed in various proceedings under this Act including proceedings before the Registrar, an arbitrator or board of arbitrators or before Tribunals or other authorities in entertaining and disposing of appeals and reviews;
28- the fees and expenses that may be charged in proceedings under this Act;
29- the conditions subject to which assets of a co-operative society shall vest in a liquidator and the procedure to be adopted in winding up of a co-operative society;
30- the procedure for recovery of amounts due or payable to a co- operative society;
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31- the mode of making attachment before judgment and the procedure for sale of property in proceedings under this Act; 32- the qualifications of members of the Tribunal; 33- the manner of registering the address of a co-operative society; 34- the account books and registers to be kept by a co-operative society and power of Registrar to direct the account books and registers to be written up;
35- the manner of certification of copies of entries in the books and of documents kept by a co-operative society in the course of business; 36- the statements, reports and returns to be furnished by co-operative societies to the Registrar;
37- restrictions on persons appearing as legal practitioners in proceedings under this Act;
38- inspection of documents and levy of fees for granting certified copies thereof;
39- the maximum rate of interest to be charged by a central bank from the co-operative societies;
40- the levy of supervision fees to be realized from the co-operative societies;
41- duties and functions of honorary organizers and honorary managers and payments of allowances and honorarium to them and to the office bearers, delegates and other members of co-operative societies; 42- method of communicating or publishing any order, decision or award required to be communicated or published under the Act or the rules; and
43- the other matter which may be or is required to be prescribed. Provisions in 129. (1) Any co-operative society existing on the date of coming into force of this regard to Act and registered under the U.P. co-operative societies Act 1965 or under existing any other law relating to co-operative societies in force in the State of societies and Uttarakhand shall be deemed to be registered under this Act, and its bye- their bye-laws
laws shall, so far as the same are not inconsistent with the express provisions of this Act (or the rules made thereunder) continue in force until altered or rescinded according to the provisions of this Act (and the rules made thereunder)
(2) Any co-operative society to which sub-section (1) applies and which conforms to the requirements of section 77 shall be deemed to be a co- operative farming society for the purposed of Chapter XI.
(3) Every co-operative society covered by sub-section (1) shall, within a period of one year from the date of coming into force of this Act, delete or amend such bye-laws as are inconsistent with the provisions of this Act and the rules and shall make such further bye-laws as may be necessary having regard to the provisions of this Act and the rules.
(4) In default of action on the part of any co-operative society as required by
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sub-section (3), the Registrar may make necessary amendment including deletions and additions in the bye-laws of the society.
(5) Every co-operative society shall within a period of one year from the date of coming into force of this Act or such further period as the Registrar may, for reasons to be recorded in writing, allow for any co-operative society, adjust its membership according to the classification of members under this Act:
Provided that any existing member who cannot be adjusted into one or the other kinds of membership shall be deemed on the expiry of the period of one year or the extended period, if any, to have withdrawn from the membership of the society with the same rights and liabilities attached as if he had withdrawn from membership before the coming into force of this Act.
(6) Where a co-operative society fails to adjust membership as specified in sub- section (5), the Registrar may make the adjustment and direct as to who, if any, of the existing members shall be deemed to have withdrawn their membership under the provisions of sub-section (5).
(7) Every co-operative society shall within one year of the coming into force of this Act constitute its committee of management in accordance with the provisions of this Act and the rules and in default thereof the Registrar shall in the manner prescribed constitute the committee of management.
(8) Notwithstanding, anything in this Act no act or proceeding of a co-operative society or its committee of management shall be invalid or questioned in court merely on the ground that up to the time of adjustment of membership or re-constitution of the committee of management in accordance with the provisions of this section the membership of the society or the constitution of its committee of management was inconsistent with the provisions of this Act or the rules.
Other provi- 130. (1) Any suit, other proceeding , enquiry or inspection instituted or commenced sions in regard under the U.P. co-operative societies Act 1965, shall so far as may be, be to existing deemed to have been instituted or commenced under this Act and may be societies continued accordingly.
(2) Any power, function or duty required to be exercised, performed or discharged under this Act by an authority different from the authority provided for that purpose under the U.P. co-operative societies Act 1965, shall until such authority is constituted or appointed under this Act, continue to be exercised, performed or discharged by the Registrar who will have the power to take measures in the manner prescribed for the early constitution or appointment of the authority under this Act. Power to 131. (1) The State Government may from time to time, by notification make such remove incidental and consequential order as may appear to it to be necessary or difficulties desirable for the removal of any difficulty in any matter under the provisions of this Act or rules made thereunder.
(2) An order made under sub-section (1) shall be laid, as soon as may be, before the House of the State Assembly.
Repeals 132. (1) The co-operative societies Act 1965 amended from time to time in its
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amendment and application to Uttarakhand is hereby repealed and the provisions of section construction of 6 and 24 of the U.P. General Clauses Act 1904, shall apply to the repeal of enactments the U.P. co-operative societies Act 1965.
(2) All references to U.P. co-operative societies Act 1965, occurring in any enactment made by any authority in India and for the time being in force in the State of Uttarakhand shall, in its application to the said State, be construed as reference to the relevant provisions of this Act.
CHAPTER XVI
TERM LOANS FOR AGRICULTURE AND RURAL DEVELOPMENT
Advancement 133. This Chapter shall apply to advancement of Term loans for Agriculture & of Term Loans Rural Development by the Uttarakhand State co-operative Bank---
for Agriculture
& Rural Explanation— Expression Agriculture & Rural Development will mean any Development work, construction or activity pertaining to Agriculture and Rural Development which includes the following-
(1) Construction of well and Tubewells.
(2) Installation of Machinery including oil Engines, Pumpsets & Electric Motors.
(3) Purchase to Tractors and power Tillers.
(4) Animal Husbandry & dairy farming such as purchase of Milch Cattle, searing of cross Breed female scarves, cattle breeding, sheep and Goat rearing, Piggery, poultry farming and purchase of Rabbit and transportation bulks and Mules.
(5) Horticulture and Herbs.
(6) Forestry.
(7) Pisciculture, including fisheries and all activities connected therewith or incidental therets.
(8) Sericulture.
(9) Bio-gas plants.
(10) Setting up of cottage and village industries.
(11) Construction of Dwelling houses in Rural Areas.
(12) Such other purposes as the State Government may, from time to time, by notification in the official Gazette declare to be Agricultural of Rural Development purposes and
(13) All other activities of Agriculture & Rural Development permitted by the NABARD and approved by the State Government.
Procedure of 134. Extent and procedure of disbursement of Agriculture & Rural Development advancement of Loans under this Chapter will be such as specified by the committee of Agriculture and management of Uttarakhand State co-operative Bank from time to time in Rural consultation with Trustee as referred to in section 135. Loans will be Development
advanced against the mortgage of or the charge on immovable property or Loans, extent
on hypothecation of movable property or against the guarantee of the State and security
Government.
Appointment of 135. Registrar, co-operative societies or any other officer appointed by the State Trustee Government shall be the trustee for the purpose of securing the fulfillment of the obligations of the Uttarakhand State co-operative Bank to the holders of debentures issued by the Bank.
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Powers & 136. The powers and functions of trustee shall be governed by the provisions of functions of this chapter and by the instrument of Trust executed between Uttarakhand Trustee State co-operative bank and the Trustee as modified or substituted from time to time by their mutual agreement with the approval of State Government.
Trustee to be a 137. The Trustee appointed under section 135 shall be a corporation sole by the corporation sole name of the Trustee and shall have perpetual succession and a common seal and in his corporate name may sue and be sued.
Issue of 138. (1) With the previous sanction of the State Government and the Trustee and Debentures subject to such terms and conditions as the State Government may impose, Uttarakhand State co-operative Bank may from time to time, issue
debentures of one or more denominations, for such period or periods as it may deem expedient, against the guarantee by the State Government for repayment in full of the principal and payment of interest thereon or on the security of mortgages, charge or hypothecations partly held and partly to be acquired and the properties and other assets of the bank.
(2) Such debentures may contain a term fixing a period not exceeding twenty years from the date of issue during which period they shall be irredeemable, reserving to the Bank the right to call in at any time any of the debentures in advance of the date fixed for redemption, after giving to the debenture- holders concerned not less that three months notice in writing.
(3) The total amount due on debentures issued by the bank under sub-section
(1) outstanding at any time shall not exceed the aggregate of-
(a) the amounts due on the mortgages or charges on hypothecation and other assets of Uttarakhand State co-operative Bank;
(b) the accumulations in the debenture Redemption Fund;
(c) the cash in hand and the balances with the banks and the book value or market value of securities under general funds, whichever is less; and
(d) such percentage of the amounts mentioned in clauses (a), (b) and (c) as may be prescribed.
Vesting of 139. Upon the issue of debentures under section 138 the benefit under the State property in Government guarantee and the mortgaged properties and other assets Trustee and referred to in sub-section (3) of the said section and held by the Bank, shall debenture vest in the Trustee and the holders of the debentures shall be entitled to the holders charge
benefit of the guarantee of the State Government and shall also have a on the assets
floating charge on all such mortgage and assets and amounts paid under such guarantee or mortgages and remaining in the hand of the Uttarakhand State co-operative bank or of the Trustee.
Guarantee by 140. (1) The principal of and interest on the debentures issued under section 138 State shall in respect of such maximum, amount as may be fixed by the State Government of Government in this behalf, and subject to such conditions as it may think fit principal and to impose therein, carry the guarantee of the State Government. interest on
debentures (2) The State Government may, subject to such conditions as may be prescribed increase the maximum amount of any guarantee given under sub-section
(1).
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Borrowings 141. Notwithstanding anything contained in this Act, the Bank, may borrow from Govt. & money from the State Government or Govt. of India or National Bank for other financial Agricultural and Rural Development & other financial institutions, as may institutions be approved by the Trustee.
Priority of 142. A mortgage executed in favour of the Uttarakhand State co-operative Bank mortgage over after the introduction of this chapter under the Act shall have priority over certain claims any claim of the Government arising from a loan granted, after the execution of such mortgage, or creation of such charge.
Right of 143. (1) Notwithstanding anything contained in any law for the time being in force, Uttarakhand it shall be lawful for Uttarakhand State co-operative Bank to purchase any State co-
property sold under this Act and the property so purchased shall be disposed operative Bank of by such bank by sale within such period as may be fixed by the Trustee. to purchase
mortgaged (2) Nothing in any other law for the time being in force, fixing a maximum property limit of agricultural holding shall apply to the acquisition of land or other immovable property by Uttarakhand State co-operative Bank under sub- section (1).
(3) If the bank has to lease out any land acquired by it under sub-section (1) pending sales thereof the period of lease shall not exceed one year at a time and the lessee shall not acquire any other interest in that property, notwithstanding any provisions to the contrary in any other law for the time being in force.
Powers of sale 144. (1) Notwithstanding anything contained in the Transfer of property Act 1882, when to be where a power of sale without the intervention of court is expressly exercised conferred on Uttarakhand State co-operative Bank by a declaration of charge made or mortgage deed executed before or after the commencement of this Act, the managing committee of the bank or any person authorized by such committee in this behalf shall, in case of default in payment of the money due under the mortgage or charge, or any part thereof, have power, in addition to any other remedy available to the bank, to sell the property (subject to any mortgage or charge) without the intervention of court.
(2) No such power shall be exercised unless---
(a) A notice in writhing requiring payment of such money has been served upon—
(i) the mortgagor or each of the mortgagors;
(ii) any person who has to the knowledge of the bank any interest in or charge upon the property mortgaged or right to redeem the same;
(iii) any surety for the payment of the mortgage debt or any part thereof, and
(iv) any creditor of the mortgagor who has in a suit for the administration of his estate obtained a decree for sale of the mortgaged property;
(b) default in payment of such mortgage money or part thereof continues beyond three months after such service, and
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(c) the Bank has after hearing the objection if any, of the mortgagor or any other person mentioned in clause (a) authorized the exercise of such power.
(3) A sale under this section shall be conducted in such manner, as may be prescribed.
(4) Where any property sold under this Act, is in the occupancy of any person creating mortgage or charge or of some person on his behalf, or some person claiming title subsequent to the creation of such mortgage or charge in favour of Uttarakhand State co-operative Bank, the Collector shall on the application of he purchaser order delivery to be made by putting such purchaser or any person appointed by him in this behalf, in possession of he property.
(5) A sale under this section of an agricultural holding or any other immovable property or any interest therein shall be subject to the provisions of Land law prevailing in Uttarakhand State.
Power of 145. Where any property mortgaged to Uttarakhand State co-operative Bank is Uttarakhand wholly or partially destroyed or the security is rendered insufficient and the State co- mortgagor, having been given a reasonable opportunity by the managing operative Bank committee of Uttarakhand State co-operative Bank of providing further where
security so as to render the security sufficient or of repaying such portion of mortgaged
property is the loan as may be determined by the committee, has failed to provide such destroyed or security or to repay such portion of the loan, the whole of the loan shall be security deemed to fall due at once and the committee shall be entitled to take action becomes against the mortgagor under this Act or any other law for the time being, in insufficient force for the recovery thereof.
Explanation- A security shall be deemed in sufficient within the meaning of this section if the value of the mortgaged property does not exceed the amount for the time being due on the mortgage by such proportion as may be specified in the rules or the regulations made by the Uttarakhand State co-operative Bank.
Title of 146. Where any property is sold in the exercise or purported exercise of a power purchaser not to of sale under section 144, the title of the purchaser shall not be questioned be questioned on the ground that---
on grounds of (a) the circumstances required for authorizing the sale had not arisen, or irregularity etc.
(b) due notice of the sale was not given, or
(c) the power of sale was otherwise improperly or irregularly exercised, but any person who has suffered any damage by an unauthorized, improper or irregular exercise of any such power shall have the right to claim damages against the Uttarakhand State co-operative Bank.
Mortgage not 147. Notwithstanding anything contained in any law relating to insolvency, a to be questioned mortgage executed in favour of Uttarakhand State co-operative Bank shall on insolvency not be called in question on the ground that it was not executed in good of mortgagor faith for valuable consideration or on the ground that it was executed in order to give the Uttarakhand State c-operative Bank a preference over other creditors of the mortgagor.
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Appointment of 148. (1) The Bank may, on its own motion under circumstances in which the power receiver and his of sale without the intervention of court may be exercised under section 145 powers by the Bank, appoint in writing, a receiver of the mortgaged property or any part thereof and such receiver shall be entitled to take possession of the property, to collect its produce and income, to retain any money realized by him for the expenses of management including his remuneration, if any, as fixed by the Bank, and to apply the balance in accordance with the provisions of sub-section (8) of section 69-A of the Transfer of property Act, 1882 so far as applicable.
(2) The Bank may, either on its own motion or on an application made by the mortgagor, remove a receiver appointed under sub-section (1).
(3) A vacancy in the office of the receiver may be filled up by the Bank.
(4) Nothing in this section shall empower the Bank to appoint a receiver where the mortgaged property is already in possession of a receiver appointed by a civil court.
Vesting of right 149. The State Government may, by notification, vest, subject to such of alienation on restrictions as may be specified in the notification all Bhumidhars with agriculturists transferable rights and the Government lessees, with rights of alienation in not having such land held under their tenure or any interest in such land including the right rights
to create a charge on mortgage on such land or interest in favour of Uttarakhand State co-operative Bank for the purpose of obtaining loan from the bank, and upon the issue of such notification, such Bhumidhars and Government lessees shall notwithstanding anything contained in any law for the time being in force or any contract, grant or other instrument to the contrary, or any custom or tradition, have a right of alienation in accordance with the terms of the notification.
Creation charge 149.A (1) A person desirous of securing financial assistance from Uttarakhand State in favour of co-operative Bank by hypothecation of movable property owned by him Uttarakhand may make a declaration in writing on a duly stamped paper that he thereby State co-
hypothecates such property in favour of the Bank. operative Bank
(2) When a person desirous of securing financial assistance from Uttarakhand State co-operative Bank does not posses property of sufficient value to secure the loan financial assistance may be provided to him by the bank on furnishing sureties to the satisfaction of the bank subject to such condition if any, as may be prescribed.
(3) The provisions of this Act and rules made there under relating to charge and mortgage made under this Act shall mutatis mutandis apply to hypothecation of movable property made under this Act.
Mortgagors 150. Notwithstanding anything contained in the Transfer of property Act, 1882 power to lease or any other law for the time being in force, no property in respect of which or to create a charge, hypothecation or mortgage has been made in favour of other rights in Uttarakhand State co-operative Bank shall be sold or otherwise transferred the mortgaged
by the person making the charge hypothecation or mortgage until the entire any charged
amount of loan or advance taken by him from the Uttarakhand State co- property
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operative Bank together with interest thereon is paid to the bank and any transaction made in contravention of this section shall be void:
Provided that, if a part of the amount borrowed by a member is paid, the Uttarakhand State co-operative bank may, on application from the member release from the mortgage charge or hypothecation created or made in favour of the Bank, such part of the property or interest therein as it may deem proper with due regard to the security of the balance of the amount remaining outstanding from the member.
Registration of 151. (1) Notwithstanding anything contained in the Registration Act, 1908 or any documents other law for the time being in force a deed creating charge or mortgage in executed in any land or interest therein or other immovable property executed by a favour of borrower member in favour of Uttarakhand State co-operative Bank for the Uttarakhand purpose of securing repayment of loan, shall be deemed to have been duly State co-
registered in accordance with that Act with effect from the date of its operative Bank
execution provided the bank has sent to the sub-Registrar within the local limits of whose jurisdiction the whole or any part of the property charged, or mortgaged in situated within a period of three months from the date of execution, by registered post or hand delivery under acknowledgement a copy of the document creating such charge or mortgage duly certified to be a true copy by an employee of the bank authorized to sign on its behalf, and the sub-registrar concerned shall file such copy or copies, as the case may be in his book no.1 prescribed under section 51 of the Registration Act,
1908.
(2) Where the sub-registrar is of the opinion that the said document is not duly stamped or suffers from any defect arising out of the accidental slip or omission, he shall send the copy or the copies as the case may be, of the documents to the bank requiring it to get the deficiency in stamp duty made good on the original or to get the defect removed within thirty days or within such extended time as the sub-registrar may allow in that behalf. The bank shall get the deficiency made good or the defect removed, not withstanding anything contained in the Indian Stamps Act, 1899.
(3) After the deficiency in stamp duty has been made good or as the case may be, the defect has been removed, the bank shall send the copy of the document again to the Sub-Registrar in the manner laid down in sub-section (1), and there upon the sub-Registrar shall file the copy in Book no.1 in accordance with the provisions of sub-section (1).
(4) Notwithstanding anything contained in the Registration Act, 1908 it shall not be necessary for the borrower member, the Trustee or for any officer of Uttarakhand State co-operative Bank to appear in person or by agent at any registration office in any proceedings connected with the registration of any instrument executed by him in his official capacity or to sign as provided in section 58 of the said Act.
Revenue 152. Where a copy of the document creating charge, or mortgage has been sent Register for for registration under section 151, the bank shall also send a copy of such noting of charge document to the Tehsildar or such other official as may be designated in this of mortgage behalf by the State Government. The Tehsildar or other official shall make a note of the particulars of such charge, or mortgage in a register maintained for this purpose. The Register shall be in such form and inspection thereof
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shall be allowed and copies or extracts there from issued in such manner and on payment of such fee as may be prescribed.
Section 102, 153. The provision of section 102 and 103 of the Transfer of property Act, 1882 103, 104 of the and of any rules made by the High Court under section 104 of the said Act Transfer of for carrying out the purposed of the said sections, shall apply, so far as may Property Act, be, in respect of all notices to be served under this Act. 1882, to apply
to notices this
Act
Mortgages 154. (1) Where a mortgage executed in favour of Uttarakhand State co-operative executed by Bank, whether before or after the commencement of the Act, is called in manager of question of the ground that it was executed by the manager of a Joint Hindu Joint Hindu Family for a purpose not binding on the member thereof whether major or Families
minor, the burden of proof shall, notwithstanding anything contained in any other law for the time being in force, rest upon the party which calls such mortgage in question.
(2) For the purpose of this section the following shall be regarded as purposed binding on members of a Joint Hindu Family-
(a) the improvement of agricultural land or of the methods of cultivation or for financing any other means to raise the productivity of land;
(b) the purchase of land;
(c) construction of rural dwelling houses for the family. Modification 155. Section 8 of the Hindu Minority and Guardianship Act, 1956 shall apply to subject to which mortgages in favour of Uttarakhand State co-operative Bank, subject to the section 8 of the modification that reference to the court therein shall be construed as Hindu Minority reference to the collector or his nominee and the appeal against the order of & Guardianship
the collector or his nominee shall lie to the commissioner.
Act, 1956 shall
apply to the
mortgages under
this Act
Reference to 156. A reference to the Uttar Pradesh Sahkari Gramya Vikas Bank in any law or Uttar Pradesh statutory instrument shall, with effect from the commencement of the Sahkari Gramya Uttarakhand State co-operative societies Act be construed as Uttarakhand Vikas Bank to State co-operative Bank.
be construed as
a reference to
Uttarakhand
State co-
operative Bank
Power of the 157. The Board of Uttarakhand State co-operative Bank, may subject to the Board of approval of Trustee, make regulations not inconsistent with the provisions Uttarakhand of this Act, the rules and the bye-laws of Uttarakhand State co-operative State co-
bank, providing for all or any of the following matters----
operative Bank
to make (a) fixing the period of debentures and the rate of interest payable thereon; regulations
(b) calling the debentures after giving notice to debenture-holders;
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(c) issue of new debentures in place of debentures damaged or destroyed;
(d) converting one class of debentures into another bearing a different rate of interest;
(e) valuation of properties offered as security for loans;
(f) investment of moneys realized from mortgagors; and
(g) generally for any other matter in respect of which the Board considers that the provisions should be made for carrying out the purpose of this Chapter:
Provided that the regulations framed under section 157 shall be subject to the approval of State Government.
Power of State 158. (1) The State Government may, after publication in Gazette, make rules Government to generally for carrying out the purposes of this Chapter, including any rules make rules prescribing fees in respect of any proceedings under this Chapter.
(2) In particular and without prejudice to the generality of the power under sub- section (1) the State Government may make rules providing for all or any of the following matters-
(a) the procedure for the distraint and sale of produce of land mortgaged to Uttarakhand State co-operative Bank;
(b) the procedure for sale of property mortgaged to Uttarakhand State co- operative Bank;
(c) fixing the percentage under clause (c) of sub-section 3 of section 136 for determining the limit of the debentures issued by the Bank;
(d) laying conditions under which the maximum amount of guarantee given by the State Government may be increased, withdrawn restricted or modified;
(e) any other matter which has to be, or may be prescribed.
(3) All rules made under this section shall as soon as may be, after they are made, be laid before the State Legislature while it is in session, for a total period of not less than 14 days and shall take effect from the date of their publication in the Gazette.
Trustee and 159. The Trustee, the Registrar or any person authorized by the Registrar to others to be distrain and sell property or a Receiver appointed under section 148 shall public servants be deemed to be a public servant within the meaning of section 21 of the Indian penal Code.
Public servants 160. No public Servant referred to in section 159 shall purchase or bid for any not to bid at movable or immovable property sold under the provisions of this Act.
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by the Uttarakhand State co-operative Bank on titles to immovable property subsequently found to be defective or for any other purpose under this chapter, for which in the opinion of the State Government, it is necessary to provide for or create a separate Guarantee fund.
(2) The Uttarakhand State co-operative Bank shall contribute to such funds at such rate as may be prescribed, and the constitution maintenance and utilization of such funds shall be governed by such rules, as may be made by the State Government in this behalf.
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