EXECUTION OF AWARDS, DECREES, ORDERS AND DECISIONS
Enforcement of charge.
104. Notwithstanding anything contained in Chapter VIII or any other law for the time being in force, but without prejudice to any other mode of recovery provided in this Act, the Registrar or any person subordinate to him empowered by the Registrar in this behalf may on the application of a co-operative society, make an order directing the payment of any debt or outstanding demand due to the co-operative society by any member or past or deceased member, by sale of the property or any interest therein, which is subject to a charge under section 45 :
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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 in the manner prescribed.
Execution of orders, etc.
105. Every decision award or order duly passed by the Registrar or the arbitrator (substituted vide Notification No. F.14(31)/LA-2004/16 dated 17/01/2005) or the Tribunal, or the Government under section 31, section 32, section 33, section 66, section 71, section 104, section 110, section 112, section 114, section 115, section 116 or any other provisions of this Act shall, if not carried out -
(a) where the decision, award or order provides for the recovery of money, be executed according to the law for the time being in force relating to the recovery of land revenue :
Provided that an application for the recovery of any sum in the manner aforesaid shall be made to the Collector and shall be accompanied by a certificate signed by the Registrar or by any person subordinate to him and empowered by the Registrar in this behalf;
(b) in any other case be executed by the Registrar or any person subordinate to him and empowered by the Registrar in this behalf, in the same manner as is provided in the case of a civil court by the Code of Civil Procedure, 1908 (5 of 1908).
Execution of orders of liquidator.
106. The orders of the liquidator under section 101 shall be executed according to the Act and under the rules for the time being in force for the recovery of arrears of land revenues.
Attachment before award.
107. Where the Registrar is satisfied that a party to any reference made to him under section 70 with intent to defeat or delay the execution of any decision that may be passed thereon is about to -
(a) dispose of the whole or any part of the property; or
(b) remove the whole or any part of the property from the local limits of the jurisdiction of the Registrar; the Registrar may, unless adequate security is furnished, direct the conditional attachment of the said property or such part thereof as he thinks necessary and such attachment shall be executed as if by a civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such an order:
Provided that the powers of the Registrar under this section shall not be delegated to any officer below such rank as may be prescribed. Recovery of debt.
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108. (1) Notwithstanding anything contained in this Act or in any other law for the time being in force and without prejudice to any mode of recovery which is being taken or may be taken, the Registrar may, on application made by a co-operative society including federal co-operative society or financial institution for recovery of arrears of any sums advanced to any of its members and on its furnishing a statement of accounts in respect of arrears and after making such inquiry as he deems fit, issue a certificate for recovery of the amount stated therein to be due as arrears.
(2) Where the Registrar is satisfied that a co-operative society has failed to take action under sub-section (1) in respect of any amount due as arrears, he may on his own motion, and after making such enquiry as he deems fit, issue a certificate for the recovery of the amount stated therein to be due as arrears and such certificate shall be deemed to have been issued on an application made by co- operative society or financial institution concerned.
(3) A certificate issued by the Registrar under sub-section (1) or sub-section (2) shall be final and conclusive proof of the arrears stated to be due therein and the certificate shall be executed in the manner specified in section 111. Registrar or person empowered by him to be civil court for certain purposes.
109. The Registrar or any person empowered by him in this behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step in aid of such recovery, to be civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963 (36 of 1963). Recovery of sums due to Government.
110. (1) All sums due from a co-operative society, or from an officer or member or past member of a co-operative society as such, to Government, including any costs awarded to Government under any provision of this Act, may on a certificate issued by the Registrar in this behalf, be recovered in the same manner as arrears of land revenue.
(2) Sums due from a co-operative society to Government and recoverable under sub- section (1), may be recovered, firstly, from the property of the co-operative society, secondly, in the case of the co-operative 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 co-operative societies, from the members, past members or the estates of the deceased members :
Provided that the liability of past members and the estate of deceased members shall in all cases be subject to the provisions of section 29. Special powers of Registrar for recovery of amount recoverable as arrears of land revenue.
111. (1) For the purpose of effecting recovery of amount due and recoverable under the provisions of this Act and the rules made thereunder, as arrears of land revenue -
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(i) the Registrar appointed under section 3 shall have and exercise all powers and perform all the duties of the Collector under the Delhi Land Reforms Act, 1954; (Delhi Act 8 of 1954) read with the Delhi Land Revenue Act, 1954 (Delhi Act 12 of 1954);
(ii) the Joint Registrars appointed to assist the Registrar under section 3 of this Act shall have and exercise all powers and perform all the duties of the Additional Collector;
(iii) the Deputy Registrars, Assistant Registrars and the Recovery Officer appointed under section 3 of this Act shall have and exercise all powers and perform all the duties of the Assistant Collector Grade I; and
(iv) Inspectors Grade II assigned the duties of recovery shall have and exercise all the powers and perform all the duties of Assistant Collector Grade II.
(2) Every notice issued or order passed in exercise of the powers conferred by sub-section (1) shall, for the purpose of sections 31, 33, 44, 51, 65, 66, 69, 77, 83, 84, 85, 89, 93, 105, 106, 108, 110, 111, 116 and 122 be deemed to be a notice or an order passed under this Act. CHAPTER - XII
APPEALS, REVISION AND REVIEW
Appeals.
112. (1) Subject to the provisions of section 113, an appeal shall lie under this section against-
(a) an order of the Registrar made under sub-section (2) of section 9 refusing to register a co-operative society;
(b) an order of the Registrar made under sub-section (4) of section 12 refusing to register an amendment of the bye-laws of a co- operative society;
(c) an order of the Registrar made under sub-section (1) of section 17;
(d) disputes relating to election under section 35;
(e) an order of the Registrar removing the committee of a co- operative society made under section 37;
(f) a decision of a co-operative society expelling any of its member under section 40;
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(g) an order made by the Registrar under section 64 apportioning the cost of an inspection held under section 61 or an inquiry made under section 62;
(h) an order of surcharge under sub-section (2) of section 66;
(i) any decision made under section 70;
(j) any deemed admission of case under sub-section (3) of section 70;
(k) any decision or award made under section 71;
(l) application for implementation of award for vacating possession of flat or plot under sub-section (7) of section 83;
(m) expulsion from the membership under sub-section (3) of section 86;
(n) an order made by the co-operative society or the Registrar under section 95 or section 96 or section 97 directing the winding up of a co-operative society;
(o) any order made by the liquidator of a co-operative society in exercise of the powers conferred on him by section 101;
(p) any order made under section 107; and
(q) a decision of a co-operative society refusing to admit any person as a member of the co-operative society who is otherwise duly qualified for membership under the bye-laws of the co-operative society.
(2) An appeal against any decision or order under sub-section (1) shall be made within sixty days from the date of decision or order -
(a) if the decision or order falls under clauses (d), (f) (g), (h), (i), (j), (k) and (m) of sub-section (1), to the Tribunal;
(b) if the decision or order falls under clause (e), to the Government;
(c) if decision or order falls under clause (l), to the court of Metropolitan Magistrate; and
(d) in any other case, to the Government or the Registrar according as the decision or order was made by the Registrar or any other person.
(3) No appeal shall lie under this section from any decision or order by the Registrar in appeal.
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No appeal or revision in certain cases.
113. Notwithstanding anything contained in this Act where, with the previous sanction in writing or on requisition of the Reserve Bank -
(i) a co-operative bank is being wound up; or
(ii) in respect of which a scheme of amalgamation or reorganisation is given effect to; or
(iii) in respect of which an order for the supersession of the committee and the appointment of an administrator therefor has been made; no appeal, revision or review thereagainst shall lie or be permissible, and the sanction or requisition of the Reserve Bank shall not be liable to be called in question.
Delhi Co-operative Tribunal.
114. (1) The Government shall by notification published in the official Gazette, constitute a Tribunal to be called the Delhi Co-operative Tribunal to exercise the powers and perform the functions conferred by or under this Act upon such Tribunal.
(2) The Tribunal shall consist of a Chairman and not more than two other members possessing such qualifications as may be prescribed, and shall be appointed by the Government by notification in the official Gazette for such term as may be prescribed.
(3) Any vacancy in the membership of the Tribunal shall be filled by the Government.
(4) Subject to the previous approval of the Government, the Tribunal shall frame regulations, consistent with the provisions of this Act and the rules made thereunder for regulating its procedure and the disposal of its business.
(5) The regulations made under sub-section (4) shall be published by the Government in the official Gazette.
(6) The Tribunal may call for and examine the record of any proceedings, in 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 reversed, the Tribunal may pass such order thereon as it may deem fit.
(7) An order passed in appeal under section 112 or in revision under sub-section (6) of this section or in review under section 115 by the Tribunal shall be final and conclusive, and shall not be called in question in any civil or revenue court. Explanation. - The Tribunal hearing an appeal under this Act shall exercise all the powers conferred upon an appellate court by section 97 of, and Order XLI of the First Schedule to, the Code of Civil Procedure, 1908 (5 of 1908). Review.
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115. (1) The Government or the Tribunal or the Registrar on the application of any party may review their own order in any case, and pass in reference thereto such order as they think just :
Provided that no such application made by the party shall be entertained unless the Government or the Tribunal or the Registrar, as the case may be, is satisfied that there has been the discovery of new important matter of evidence, which after the exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when order was made or that there has been some mistake or error apparent on the face of the record, or for any other sufficient reasons :
Provided further that no such order shall be varied or revised unless notice has been given to the parties interested to appear and being heard in support of such order.
(2) An application for review under sub-section (1) by any party shall be made within thirty days from the date of communication of the order of the Goverment or the Tribunal or the Registrar.
Revision.
116. (1) Goverment may of its own motion or on application made to it, call for and examine the record 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 114 to satisfy himself as to the regularity of such proceeding or the correctness, legality or propriety of any decision passed or order made therein and if, in any case, it appears to the Goverment that any such decision or order should be modified, annulled, reversed or remitted for reconsideration, he may pass orders accordingly :
Provided that every application to the Goverment for the exercise of the powers under this section shall be preferred within ninety days from the date on which the proceedings, decision or order to which the application relates 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) Government may suspend the decision or order pending the exercise of its power under sub-section (1) in respect thereof.
(4) Government may award costs in proceedings under this section to be paid either out of the funds of the co-operative society or by such party to the application for the revision as the Government may deem fit which may be recovered as arrears of land revenue.
Interlocutory orders.
117. Where an appeal is made under section 112 or where the Tribunal or the Government calls for the record of a case under section 113 or section 115, the appellate authority or the Tribunal or the Government, as the case may be, may in order to prevent the ends of justice being defeated, make such interlocutory
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order, including an order of stay, pending the decision of the appeal or revision as such authority or the Tribunal or the Government may deem fit. CHAPTER - XIII
OFFENCES AND PENALTIES
Offences and penalties.
118. (1) Any co-operative society or an officer or member thereof, willfully making a false return or furnishing false information, or any person willfully or without any reasonable excuse disobeys any summons, requisition or lawful written order issued under the provisions of this Act, or willfully not furnishing any information required from it or him or by a person authorized in this behalf under the provisions of this Act, shall be punishable with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees.
(2) Any employer who, without sufficient cause, fails to pay to a co-operative society the amount deducted by him under section 52 within a period of fourteen days from the date on which such deduction is made shall, without prejudice to any action that may be taken against him under any other law for the time being in force, be punishable with fine which may extend to five thousand rupees.
(3) Any officer or custodian who willfully fails to handover custody of books, accounts, documents, records, cash, security and other property belonging to a co-operative society of which he is an officer or custodian, to a person entitled under section 38 or section 60 or section 61 or section 62 or section 99 shall be punishable with fine which may extend to two thousand rupees and in the case of a continuing breach, with a further fine which may extend to five thousand rupees for every day during which the breach is continued after conviction for the first such breach.
(4) Any person who acts in contravention of section 44 or section 45 or sub-section
(2) of section 66 or section 67 or section 68 or section 138 shall be punishable with fine of five hundred rupees.
(5) The committee of a co-operative society or any of its officers or employees who falsify or tamper with the record of the co-operative society, shall be punishable with imprisonment which may extend to seven years and shall also be liable to fine.
(6) Any officer or employee of a co-operative society including the paid secretary who dishonestly or fraudulently misappropriates or otherwise converts for his own use or intentionally causes loss to the property of the co-operative society entrusted to him or under his control as such officer or employee, or allows another person so to do shall be punishable with imprisonment which may extend to seven years and shall also be liable to fine.
(7) If any allotment of plot or flat is made by the committee in contravention of the provisions of sub-section (1) of section 77, the committee and its members responsible shall be punishable with imprisonment which may extend to seven years and shall also be liable to fine.
(8) If a co-operative society fails to file return as required under section 32, the committee or the negligent officer shall be punishable with a fine, which may extend to five hundred rupees.
(9) If committee fails to dispose of application within the period prescribed in section 91, the committee members responsible shall be liable for a penalty of ten thousand rupees and in the case of a continuing breach, with a further fine of
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one hundred rupees for every day during which the breach is continued after the expiry of the prescribed period.
(10) On conviction, a member of the co-operative society shall be debarred from contesting election of a committee for a period of six years."
(substituted vide Notification No. F.14(31)/LA-2004/16 dated 17/01/2005) Prohibition of the use of the word `co-operative' or its equivalent.
119. (1) No person other than a co-operative society shall trade or carry on business under any name or title of which the word `co-operative' or its equivalent in any Indian language forms part without the sanction of the Government :
Provided that nothing in this sub-section shall apply to the use, by any person or his successor in interest, of any name or title under which he traded or carried on business at the date on which the Co-operative Societies Act, 1912, (2 of 1912 ) come into operation.
(2) Whoever contravenes the provisions of sub- section (1) shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing offence with further fine of five hundred rupees for each day during which the offence is continued after conviction therefor.
Punishment for offences not otherwise provided for.
120. Any co-operative society or any officer or member thereof or any other person contravening the provisions of this Act for which no punishment is expressly provided herein shall be punishable with a fine which may extend to five thousand rupees.
Cognizance of offences.
121. (1) No court inferior to that of a Metropolitan Magistrate shall try any offence 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 unless the person concerned has been provided a reasonable opportunity to represent his case.
(3) Every offence under this Act shall, for the purposes of the Code of Criminal Procedure, 1973 (2 of 1974), be deemed to be a cognizable offence. Presumption as to commission of offence in certain cases.
122. (1) In the trial of offences by the Metropolitan Magistrate, it shall be presumed until the contrary is proved that any officer or employee of a co-operative society -
(a) who draws the amounts from the financing institution and fails to properly disburse or account for it, has misused or misappropriated the amounts;
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(b) who is responsible for the custody of books and properties or who is in actual possession thereof, fails to produce the same on requisition by the Registrar or any person authorised by him, has wilfully withheld the same;
(c) who makes any false entries or manipulates or alters the account books of the co-operative society, has wilfully committed the said act in order to cause loss or damage to the co-operative society;
(d) who misuses the properties of the co-operative society in contravention of the provisions of this Act and the rules made thereunder or the bye-laws of the co-operative society has done so, for his personal benefit;
(e) who executes any documents or enters into an agreement for sale or purchase of the land, plots, flats, etc., in contravention of the provisions of the registered bye-laws of the co-operative society, has done so for his personal benefit and in order to cause loss to the members of the co-operative society.
(2) Any officer or employee of a co-operative society who issues any receipt shall be deemed to have issued the same in the name of the co-operative society and shall be responsible to account for the same.
(3) Notwithstanding the criminal liability, the officer or employee of a co-operative society shall be responsible to make good the loss caused to the co-operative society by committing such offences and the same shall be recovered as arrears of land revenue by the Registrar or the person authorised by him from the person responsible for causing such loss or his legal heirs or any person who has acquired the properties from such person or with the assistance of such person.
Presumption as to statements.
123. Where any member, officer or employee of a co-operative society has made a statement during the audit under section 60, or inspection under section 61, or inquiry under section 62, or inspection of debtor institution under section 63, or proceedings under section 66 and the statement is recorded by the Registrar or the person authorised by the Registrar in exercise of their powers conferred on them under this Act, the court shall presume that the statement was so recorded by the Registrar or the person authorised by him as a statement within the meaning of the Indian Evidence Act, 1872 (Act 1 of 1872). Address of co-operative society.
124. Every co-operative society shall have an address registered in the manner prescribed to which all notices and communications may be sent and shall send to the Registrar notice of every change thereof within thirty days of such change. Copy of Act, rules and bye-laws, etc. to be open for inspection.
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125. Every co-operative society shall keep a copy of this Act, the rule and its bye-laws and also a list of its members, open to inspection free of charge at all reasonable times at the registered address of the co-operative society.
Power to exempt co-operative societies from conditions as to registration.
126. Notwithstanding anything contained in this Act, the Government may, by general or special order and subject to such conditions, if any, as it may impose, exempt any co-operative society or class of co-operative societies from any of the requirements of this Act as to registration.
Power to exempt co-operative societies from the provisions of the Act.
127. The Government may, by general or special order, to be published in the official Gazette, exempt any co-operative society or class of co-operative societies from any of the provisions of this Act, or may direct that such provisions shall apply to such co-operative society or class of co-operative societies with such modifications as may be specified in the order.
Officers and employees to be public servants.
128. The Registrar or any person authorised by him to recover any amount or to execute any orders or decisions taken under any provisions of this Act and every officer and employee of the co-operative society shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860) Notice necessary in suits.
129. No suit shall be instituted against a co-operative society or any of its officer in respect of any act touching the business of the co-operative society until the expiration of ninety days next after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left. Companies Act not to apply.
130. The provisions of the Companies Act, 1956 (1 of 1956) shall not apply to co- operative societies.
Saving of existing co-operative societies.
131. (1) Every existing co-operative society which had been registered under the Co- operative Credit Societies Act, 1904 or under the Co-operative Societies Act, 1912, or under the Bombay Co-operative Societies Act, 1925, as was in force in Delhi, or the Delhi Co-operative Societies Act, 1972 shall be deemed to be registered under the corresponding provisions of this Act and rules framed thereunder and bye-laws thereof shall, so far as the same are not inconsistent with the express provisions of this Act, continue in force until altered or rescinded.
(2) All appointments, rules and orders made, notifications and notices issued and suits and other proceedings instituted under the said Acts shall, so far as they
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are consistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling registration of a co-operative society shall be deemed, unless the co- operative society has already been finally liquidated, as an order issued under section 95 or section 96 or section 97 for its being wound up. Bar of jurisdiction of civil or revenue courts.
132. (1) Save as provided in this Act, no civil or revenue court shall have any jurisdiction in respect of -
(a) the registration of a co-operative society or its bye-laws or of an amendment of a bye-law;
(b) the removal of the committee;
(c) any dispute required under section 70 to be referred to the Registrar; and
(d) any matter concerning the winding up and the dissolution of a co-operative society.
(2) While a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such co-operative society shall be proceeded with or instituted against the liquidator as such or against the co- operative society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose.
(3) Save as provided in this Act, no order, decision or award made under this Act, shall be questioned in any court on any ground whatsoever. Powers of civil Court.
133. (1) In exercising the functions conferred on him by or under this Act, the Registrar, the arbitrator (substituted vide Notification No. F.14(31)/LA-2004/16 dated 17/01/2005) or any other person deciding a dispute under section 70 and the liquidator of a co-operative society or person entitled to audit, inspect or hold an inquiry and the Tribunal shall have all the powers of a civil court, while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely -
(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 witness.
(2) In the case of an affidavit, the Registrar or any officer appointed by him, the arbitrator (substituted vide Notification No. F.14(31)/LA-2004/16 dated
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17/01/2005), the liquidator or the Tribunal, as the case may be, may administer the oath to the deponent.
Indemnity.
134. No suit, prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting on his authority in respect of anything in good faith done or purporting to have been done under this Act. Service rules for employees of co-operative societies.
135. The Government shall as soon as may be after the commencement of this Act, direct all co-operative societies or class of co-operative societies to frame service rules for their employees and get them approved from the committee within a period of three hundred and sixty five days.
CHAPTER - XIV
RULES AND MISCELLANEOUS PROVISIONS
Power to delegate.
136. The Government may, by notification in the official Gazette, direct that any power exercisable by it under this Act, except the power to make rules, may also be exercised by such officer as may be mentioned therein in such cases and subject to such conditions, if any, as may be specified therein.
Power to make rules.
137. (1) The Government may, by notification published in the official Gazette, make rules for carrying out all or any of the purposes of this Act and for any class of co- operative societies.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely -
(a) prescription of viability norms for registration of a co-operative society;
(b) the maximum number of shares or proportion of the capital of a co-operative society which may be held by a member;
(c) the form to be used and conditions to be complied with in making of application for the registration of a co-operative society and the procedure in the matter of such applications;
(d) the procedure to be followed in making, altering and abrogating the bye-laws and the conditions to be specified prior to such making, alteration and abrogation and compulsory amendment of the bye-laws by the Registrar;
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(e) the procedure and conditions for change in the form and extent of liability of a co-operative society;
(f) procedure for amalgamation, transfer of assets and division of co- operative society;
(g) classifications of co-operative societies with reference to their objects, area of operation, membership or any other matter by the Registrar;
(h) conditions to be complied with by a person applying for admission or admitted as member;
(i) admission of any person as nominal, associate or joint member and the terms and conditions and the procedure to be followed therefor;
(j) right of membership to be acquired only on payment made towards membership and interest to be acquired to exercise the right of membership and the manner in which vote can be exercised;
(k) restriction on transfer of shares or interest;
(l) transfer of interest on death of a member, procedure and liability of past member and estate of the deceased member;
(m) the proportion of individual and co-operative society in the constitution of the committee and the general body of co- operative society of which other co-operative society is a member and the power exerciseable by such committee or generla body;
(n) the procedure for holding of annual general body meeting, time to be given for finanalising the accounts at the close of the co- operative year, consequence of failure of a committee to conduct the annual general body meeting in time and action by the Registrar to conduct the same and recovery of the expenses as arrears of land revenue from the defaulting persons;
(o) details of the returns and their format to be filed relating to the constitution, business and allied matters by a co-operative society within thirty days of holding of the annual general body meeting;
(p) the procedure for holding a special general body meeting and recovery of expenses from delinquent officers of the committee;
(q) the constitution of the committee of a co-operative society for its management, procedure for nomination of members on the committees where the Government has contributed equity share capital and the Government guarantees have been given for loans or floating of bonds;
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(r) the procedure for holding of the elections and the steps to be initiated for such election before the expiry of the term, appointment of an administrator on failure to conduct elections and to conduct election within ninety days, recovery of expenses from the delinquent officers of the committee in cases of default;
(s) prescribing reservation of seats for schedule castes, other backward classes and woman on the committee, where share capital is subscribed by the government and reservation of two seats for woman in all types of co-operative societies;
(t) rules and procedure for conducting the election of the committees;
(u) the procedure for making a motion expressing lack of confidence in the committee or any of its officer in the special general body meeting convened for the purpose and setting up an ad-hoc committee to conduct fresh elections within the period of ninety days;
(v) the modalities to be complied with before supersession of the committee of a co-operative society and constitution of the new committee by the administrator before the expiry of his term;
(w) procedure for authorisation to Sub-divisional Magistrate for securing possession of records of a co-operative society;
(x) the manner in which funds may be raised for running the business of a co-operative society,
(y) the procedure to be followed for cessation of membership in a cooperative society.
(z) procedure to be followed for expulsion of members other than members of co-operative housing societies;
(za) the procedure for certifying any entries in the books of a co- operative society and charges to be levied for supply of copies thereof;
(zb) the formation and maintenance of reserve fund and other funds, and the objects to which such funds may be applied and allocation and distribution of the net profit arrived thereafter; (zc) the amount and percentage of net profit to be contributed by a co-operative society for Co-operative Education Fund and its utilisation;
(zd) manner in which a co-operative society may invest or deposit its funds;
(ze) the limit up to which a co-operative society can receive deposits and loans, conditions for it;
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(zf) prohibitions and restrictions subject to which co-operative societies may transact business with the persons who are not members;
(zg) the manner of getting the audit conducted by an auditor on the panel of the Registrar with in the prescribed time limit, action by the Registrar on failure to comply with the time limit by a co- operative society and recovery of expenses for getting the audit conducted as a arrears of land revenue from the officers of the committee;
(zh) the manner in which a copy of audit report to be sent to the Registrar and rectification of defects by a co-operative society reported in the audit report by an auditor;
(zi) the manner in which inspection, inquiry and inspection of books of indebted co-operative society is to be conducted, the security money to be deposited by a creditor for such inspection and the follow up action to be taken on the findings including the rectification thereof;
(zj) the accounts and books to be kept by a co-operative society during the course of its business and on failure to do so, to get them completed by the Registrar by engaging other persons as a charge on the committee recoverable as arrears of land revenue, the procedure and fee to be charged for it;
(zk) the manner in which disputes to be referred for arbitration and fee for it;
(zl) the procedure for selection and appointment of members of arbitrator (substituted vide Notification No. F.14(31)/LA- 2004/16 dated 17/01/2005), their terms and conditions of service and related matters;
(zm) the procedure to be followed before the Registrar or arbitrator (substituted vide Notification No. F.14(31)/LA- 2004/16 dated 17/01/2005) for settlement of disputes and guidelines and the format for announcing the award; (zn) the manner in which the affairs of a co-operative housing society shall be managed, rights and privileges of members on allotment of plot or flat, issue of certificate of allotment giving therein the details of plot or flat and the rights and privileges of member therein and member's obligations towards the co-operative society;
(zo) the procedure for the allotment of plot or flat by draw of lots and for the verification of membership or change in the membership, with special reference to co-operative housing societies which have been allotted land on leasehold right basis by the lessor;
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(zp) the manner in which membership can be transferred in a co- operative housing society to heir or a nominee subject to the terms and conditions of the lease of land;
(zq) the manner in which occupancy rights may be transferred in a co-operative housing society subject to right of the lesser in terms of lease deed of the land;
(zr) the guidelines for the creation, maintenance and utilisation of the building maintenance fund and replacement fund in a co- operative housing society;
(zs) the manner in which a mortgage in favour of a co-operative housing society or apex can be registered, its procedure and format;
(zt) the procedure and manner of settling disputes in a co-operative housing society;
(zu) the procedure for recovery of outgoings and arrears of dues of co-operative housing society or the apex by the Registrar as arrears of land revenue;
(zv) the recovery of dues and foreclosure of properties in respect of dues of a co-operative housing society, apex and other approved housing finance institutions;
(zw) the manner and procedure in which a member of a co-operative housing society may be expelled;
(zx) the manner and procedure in which the membership of a member of co-operative housing society can be ceased; (zy) the guidelines for the management of co-operative housing societies;
(zz) the guidelines for the maintenance of essential services in a co- operative housing society;
(zza) the form of register of the properties to be maintained by co- operative housing society;
(zzb) the manner of regularisation of membership of persons who have acquired property in a co-operative housing society as power of attorney holder or purchaser of property through agreement of sale and purchase subject to right of lessor and procedure for enforcement of time limit for conversion of property to freehold;
(zzc) the prescription of the guidelines for execution of co-operative housing projects and procedure for initiating action in case of default;
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(zzd) the prescription of the guidelines for the management of co- operative housing complex by the co-operative housing societies;
(zze) the manner in which a house building co-operative society which has achieved its objects is to be wound up and the scheme therefor subject to the prior consent of the lessor; (zzf) the procedure to be followed in respect of co-operative societies which have decided for the dissolution or where liquidator has been appointed for winding up proceedings by the Registrar and finalisation thereof;
(zzg) the manner of service of notice regarding the procedure for enforcement of charge;
(zzh) the manner of effecting execution of orders and attachment; (zzi) attachment before award and authorisation of officers by the Registrar for taking custody, preservation and sale of property under attachment, recovery of debt as arrears of land revenue, specifying officers who can be delegated powers of the Registrar to attach property before announcement of the award; (zzj) recovery of dues as arrears of land revenue procedure for it; (zzk) the procedure to be followed in presenting and disposing of appeals;
(zzl) the procedure for selection of members of the Tribunal, laying down the qualifications and the terms of the Chairman and the members of the Tribunal, and framing of regulations for the working of Tribunal;
(zzm) the procedure for submission of application for review; (zzn) the procedure for making submission for revision; (zzo) issuing directions to the co-operative societies to frame service rules for employees;
(zzp) fee to be fixed for supply of documents and information to a member or a creditor;
(zzq) the method of communication or publishing any order, decree or award required to be communicated or published under this Act or the rules;
(zzr) any other matter which is required to be, or may be, prescribed under this Act.
(2) Every rule made under this Act shall be laid as soon as may be after it is made, before the Legislative Assembly of the National Capital Territory of Delhi
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while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the Legislative Assembly agrees in making any modification to the rule or the Legislative Assembly agrees that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. Power of the Registrar to give directions to the co- operative banks.
138. The Registrar may generally or in any particular matter under this Act or for enforcement of directions of the Reserve Bank to protect the interest of members and depositors of the co-operative banks licensed by the Reserve Bank and registered under this Act or operating in Delhi under the Multi-State Co-operative Societies Act, 2002 (39 of 2002), issue such orders or directions as he may consider necessary to a co-operative bank or banks and thereupon such co- operative bank shall give effect to such orders or directions and shall report to him the compliance within the time specified in the order or direction. Right to information.
139. (1) Any member or creditor having interest in the affairs of the co-operative society may seek information relating to any transaction of the co-operative society and for that purpose may be provided a certified copy of any document within thirty days from the date of receipt of application relating to such transaction on payment of such fee as may be specified.
(2) Where a member or creditor having interest in affairs of a society seeking information prefers an appeal to the Registrar stating that the officer of the society without any reasonable cause, has refused to receive his application for providing information or has not furnished information within the time specified under sub-section (1) or has refused the request for information or knowingly given incorrect information or obstructed in any manner in furnishing the information, the Registrar, after affording a reasonable opportunity of being heard to the officer of the society and the appellant, may either reject the appeal; or direct the officer of the society to furnish information within the period specified in the order or such extended period as may be allowed, and in case of default the Registrar may impose a penalty of two hundred and fifty rupees each day till the information is furnished, so however, the total amount of such penalty shall not exceed ten thousand rupees which shall be recoverable as arrears of land revenue in case of default in payment.
Act to override other laws.
140. The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law.
Repeal and savings.
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141. On the day on which the Delhi Co-operative Societies Act, 2003 comes into force, the Delhi Co-operative Societies Act, 1972 (35 of 1972) in force in the National Capital Territory of Delhi shall stand repealed. Provided that the repeal shall not affect -
(a) the previous operation of the Act so repealed or anything duly done or suffered thereunder; or
(b) any right, privilege, obligation or liability acquired, accrued or incurred under the Act so repealed; or
(c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the Act so repealed; or
(d) any investigation, legal proceedings or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid and any such investigation, legal proceedings or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if that Act had not been repealed.
Removal of difficulties.
142. (1) If any difficulty arises in giving effect to the provisions of this Act, the Government may by order, do any thing not inconsistent with such provisions of this Act for the purpose of removing the difficulties :
Provided that no such order shall be made under this section after the expiry of two years from the commencement of this Act.
(2) Every order under this section shall be laid, as soon as may be after it is made, before the Legislative Assembly of Delhi for ratification.
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THE FIRST SCHEDULE
[SEE SECTION 2(g)] CO-OPERATIVE PRINCIPLES
1. Voluntary and Open Membership _ Co-operatives are voluntary organisations, open to all persons capable of using their services and willing to accept the responsibilities of membership, without discrimination on basis of gender, social inequality, racial, political ideologies or religious consideration.
2. Democratic Member Control _ Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and decision making. Elected representatives of these co-operatives are responsible and accountable to their members.
3. Member's Economic Participation _ Members contribute equitably and control the capital of their Co-operative democratically. At least a part of the surplus arising out of the economic results would be the common property of the co-operatives. The remaining surplus could be utilised benefiting the members in proportion to their share in the Co-operative.
4. Autonomy and Independence _ Co-operatives are autonomous, self-help organisations controlled by their members. If co-operatives enter into agreement with other organisations including Government or raise capital from external sources, they do so on terms that ensure their democratic control by members and maintenance of Co-operative autonomy.
5. Education, Training and Information _ Co-operatives provide education and training to their members, elected representatives and employees so that they can contribute effectively to the development of their Co-operatives. They also make general public, particularly young people and leaders aware of the nature and benefits of co-operation.
6. Co-operation among Co-operatives _ Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through available local, regional, national and international structures.
7. Concern for Community _ While focusing on the needs of their members, co-operatives work for the sustainable development of communities through policies accepted by their members. Sd/-
(P.S. PARMAR)
DEPUTY SECRETARY (LAW,JUSTICE & L.A.)
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PROVISIONS OF DELHI CO-OFERATIVE SOCIETIES ACT-2003
PRIOR TO
AMENDMENTS BEFORE 17-01-2005
I. Under Sec-2(a)
2. Under Sec-9(d)
3. Under Sec-3 I(I)
4. Under Sec-3 1(2)
5. Under Sec-37( I)
6. Under Sec-37(1)
7. Under Sec-37(7)
8. Under Sec-37(I)(b)
9. Under Sec-60(1)
10. Under Sec-71(1)
[82]
"arbitration councii" means a group of three individuals constituted by the Government for the settlement of disputes under section 71 in accordance with the provisions of this Act;
"and"
"ninty days"
"ninty days"
"persistently makes default"
"fails to initiate action for recovery or fails to recover any dues ofa federal co- operative society or any financial institution after the finality of award and issue
of recovery certificate or after such recovery fails to pay the recovery amount to the federal G)-operative society or the financial institution"
"five hundred and fifty days"
"Provided further that the supersession of the committee ofa co-operative society shall be made only where the Government has equity
of fifty one percentum or
more."
"ninty days"
"shall"
"(a) decide the dispute himself, or
(b) refer it for disposal to arbitration council.
(2) The Government shall constitute as many arbitration councils as may be necessary each consisting of three members incfuding a Chairman. to decide disputes under this section.
(3) (a) For selecting persons for appointment as members of the arbitration council, the Government shall constitute a selection committee as often as may be reqUired which shall consist of the follOWing namely-
(i) PrinCipal Secretary to the Government - Chairman
(ii) Secretary. Law and judicial - Member
(iii) Registrar Co-operative Societies - Member Secretary
(b) The selectian committee shall finalise within a period of thirty days from the date on which the reference is made to it.
(c) The selection committee shall recommend a panel of names for every vacancy referred
to it. (d)
All decisions of the selection committee shall be by majority.
(4) The Government shall appoint the member of the arbiU,,'ion council from the names recommended by the selection committee.
(5) The method. manner of selection. appointment of members of the arbitration council. designation of one of the members as Chairperson of such council. their qualifications, terms and conditions of appointment and fee payable to them shall be prescribed by the Government from time to time.
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II.
12.
13.
14.
Under Sec-91 Under 5ec-97 Under Sec-105 Under Sec-I 18( I)
(6) The term of members of tile ar!:>itralion council sholl be three years and they sholl hold their office at the pleasure of the Government.
(7) The decision of the arbitration council shalf be taken on the basis of majority.
(8) The Registrar or arbitrolion council will decide the dispute referred within a period of one hundred and (wenty five i"ys anu it' (,,,, '.hpute
;s not decided within the aforesaid period. (he ,'{t:g;strcr (j{ 'J/ bitration council, as the case may be. on a written appiic:JtHJn {rom rllt: parties to
the reference and on being satisfied that there were sufficient reasons (or delay, may extend the period upto further period of one hundred and twenty five days, within which the dispute shall be decided.
(9) The Registrar may withdrm'/ any reference transferred under clause
(b) of sub-section (I) and decide it himself or refer the same to another arbitration council for decision.
(10) The Registrar or arbitration council to wham a dispute is referred for decision under this section may. pending the decision of the dispute. make such interlocutory orders as may be deemed necessary in the interest of justice. "
"Any person who has acquired property an occupancy right in a co- operative housing society thraugh the instrument of power of attorney or agreement for sale shall have the opportunity to became member of the concerned co-operative housing society where the property exists by getting the property converted from leasehold to freehold and on paying the transfer fee to the concerned co-operative housing society along with dues, including the dues of the apex or financial institution. if any :
Provided that a power of attorney holder or purchaser of property through agreement of sale and purchase in a co-operative housing society shall get the said property converted from lease hold to free hold within a period of three hundred and sixty days at the commencement of this Act and all subsequent sales and purchases of such property after the commencement of this Act, the property shall be converted from lease hold to free hold within three hundred and sixty days, failure
to do so sholl be deemed to be an offence under section I 18 :
Provided further that any such person can have access to the paid services provided by the committee, namely the use of community hall. swimming pool or any other common facilities available to the members or the use of common parking spaces provided by the co-operative housing society only in the event of his becoming member as aforesaid and the transfer fee for becoming member sholl be ten thousand rupees or as may be revised by the Registrar from time to time."
"Notwithstanding anything to the contrary contained in this Act. the Registrar shall make an order for winding up of a co-operative bank. if so required by the Reserve Bonk."
"Arbitration council"
"( I) It shall be on offence under this Act.if-
(a) the committee. an officer. employee or any member of the co-operative society wilfully makes a false return or furnishes false information relating to the affairs
of the co-operative s,?ciety under this Act;
(b) the committee. its officers or employees falSify or tamper with the records
of the co-operative society:
(c) thecommittee failstoho!:1 annual generalbodymeeting undersub- section (I) of section 3 I or fails to send returns to the Registrar after the meeting under section 32:
[83]
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•
15. Under Sec-I33( I)
16. Under Sec-137(zl)
17. Under Sec-137(zrn)
[84]
(d) committee foils to act on a requisition for holding special general body meeting under sub-section (2) of section 33;
(e) the outgoing committee does not hand over the records to the newly elected committee or administrator or the liquidator under sub-section (2) of section 38;
en the committee or any of its officials fail to comply with the directions given under section
42 or section 138;
(g) any person acts in contravention of section 44 or section 45 or sub- section
(2) of section 66 or section 67 or section 68 or sub-section (8) of section 92;
(h) if any allotment of plot or" flat is made in contravention of provisions of sub-section (I) of section 77;
(i) an officer, or an employee of the co-operative society including the paid secretary, dishonesty or fraudulently mis-appropriates or otherwise converts
for his own use or intentionally causes loss to the praperty of the co-operative society entrusted to him or under his control as such officer or employee or allows any other person so to do;
(j) an officer or an employee of the co-operative society is or proved to have been in possession of any pro-perty of the co-operative society reasonably suspected to have been stolen or unlawfully obtained;
(k) any officer or employee abets any offence punishable under this Act whether or not that offence is committed in consequence of that abetment; (/) if the committee fails to initiate action against the defaulter member for recovery of dues of the apex or any other financing institution after the finality of the award or after recovery of such dues, fails to pay the recovered amount to the apex or the financial institution;
(m) on failure to convert the property to freehold by a power of attorney holder or purchaser of property on agreement to sell within a period of three hundred and sixty days the under provisions of section 91;
(n) on failure of the committee of a co-operative housing society to complete construction of its housing praject within time limit fixed under sub-section
(I) of section 92.
(2) An offence under clause (a) of sub-section (I) shall be punishable with fine which may extend to fifty thousand rupees.
(3) An offence under any of the clauses (b) to (n) of sub-section (I) shall be punishable with imprisonment for a term which may extend to seven years and with fine which may extend to fifty thousand rupees or the both.
(4) On conviction, a member of the co-operative society shall be debarred from contesting election of a committee for a period of six years.
(5) The period of limitation for taking cognizance of the offence under this section shall be three years from the date of the offence."
"Arbitration council"
"Arbitration council"
"Arbitration council"
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!'nOVISIONS OF DELHI CO-OPERATIVE SOCIETIES ACT-2003
PRIOR TO
AMENDMENTS BEFORE 13-01-2007
I.
2.
3.
4.
5.
6.
Unde,' Sec-35( I) Under Sec-60( I) Under Sec-77(1) Under 5ec-79(a) Under 5ec-91 Under 5ec-92(6) The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of elections of the members of the committee of. a co-operative society shall
be vested in the committee. Provided that the entire process of election will be conducted by a Returning Officer to be appOinted by the Government who shall be not below the rank ofa Gazetted Officer.'
co-operative society shall get its accounts audited annually by an auditor selected from the panel prepared by the Registrar in the prescribed manner within the period
ofninety days' from the cfose ofco-operative year. Allotment ofplots of land, flats, houses or other dwelling units shall be made by the committee
ofa co-operative housing society to the members strictly on the basis of draw oflots only in respect ofsuch members whose enrolment as a member ofa co· operative housing society is found proper in accordance with the provisions ofthis Act, rules framed thereunder and the bye-laws ofthe co-operative housing society by the Registrar and such a draw of lot shall be conducted by the lessor of the land in accordance with the terms and tonditions of lease.
the previous permission of the co-operative housing society has been obtained by the transferor by paying the transfer fee;
Any person who has acqUired property on occupancy right in a co-operative housing society through the instrument ofpower ofattorney or agreement for sale shallhave
the opportunity to become memberofthe concernedco-operative housing society where the property exists by getting the property converted from leasehold
to freehold and on paying the transfer fee of ten thausand rupees
or such amount as may be determined by the Registrar from time to time to the concerned co-operative housing society along with dues, incfuding the dues ofthe apex or financial institution, ifany:
Provided that the member who has sold his plot or flat on power ofattorney or agreemer.t for sale shall have no voting right in the affairs of the co- operative housing society, however, the power of attorney holder shall
. acquire voting right only after getting the property converted into freehold:
Provided further that any such person can have access to the paid services, namely, the use of community hall, swimming pool or any other common facilities available
to the members or the use of common parking spaces provided by the co-operative housing society only after becoming a nominal member of the co-operative housing society as per its bye-laws and after paying a nominal membership fee oftwo hundred rupees to the co-operative housing society: .
Provided also thot the committee ofco-operative housing society shall issue 'no objection certificate' to the general power of attorney holder on his application required for submission
to get the property converted to free- hold from
the lessor, within the period of thirty days ofits receipt, after ensuring that there are no dues outstanding against the member or general power ofattorney holder in the records ofthe co-operative housing society.' All proposals as above, shall be approved by the general body in a meeting by a majority
ofnot less then two-thirds of the total membership of the co-operative housing society.
[85]
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7.
8.
Under Sec-96( I) Under Sec-139
Where the Registrar has reason to believe that a co-operative society -
(a) has not commenced business within seven hundred seventy five days after the date shown on its certificate of registration; or
(b) has not carried on business for two consecutive co-operative years; 2(ii) receives a reply from the co-operative society that it is not carrying on
business; or
Any member or creditor having interest in the affairs of the co-operative society may seek ;nformation relating to any transaction of the co-operative society and for that purpose may be provided a certified copy ofany document within thirty days (rom the dote of receipt of application relating to such transaction on payment a( such fee as may be specified.
PROVISIONS OF DELHI CO-OPERATIVE SOCIETIES ACT-2003
PRIOR TO
AMENDMENTS BEFORE 29-C!~-:LO12
9.
[86]
Under Sec-35( I0) -Icc) where the total amount af issued equity share capital held by the Government is sixty per cent or more of the total issued share capital or the Government has given loan or made advances to the co-operative society or guaranteed the repayment ofprincipal and payment ofinterest on debentures or bonds issued by the co-operative society or guaranteed the payment of principa{ and payment
of interest on loan and advances to the co-operative society in amaunt not less than sixty percent in the aggregate of the total amount so borrowed by the co-operative society. three-fourth ofmembers of the committee including the Chairman;
Provided that the right once accrued under this clause shall continue until the percentage o( the amount in respect o( share contribution or guaranteed loan goes down toless than fifty per cent;'
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