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3-41
REGISTERED No. D. ,..,
zrciparai
EXTRAORDINARY
41-Tr 11—kau4 3 341-4133
PART II—Section 3—Sub-section (ii)
311?%1WIR 14.011.ti
PUBLISHED BY AUTHORITY
Rio 52]
14741, 0:11-41T, zlisi 15, 1 9 6 5/1:6711:7 24, 1886
No. 52]. NEW DELHI, MONDAY, MARCH 15, 1965/PHALGUNA 24, i886
ZW, .(.1k.41 7.1tit.; 3r-o-21- Ftr. TAT 71. Tr-4 I
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as a separate compilation
MINISTRY OF HOME AFFAIRS
NOTIFICATION
New Delhi, the 9th March 1965
S.O. 909.tvzIn exercise of the powers conferred by section 10 of the Dadra
and Nagar 1. veli Act, 1961 (35 of 1961), the Central Government hereby extends
to the Union' territory of Dadra and Nagar Haveli the Gujarat Co-operative
Societies Act, 1961 (Gujarat Act No. X of 1962), as at present in force in the
State of Gujarat, subject to the following modifications, namely:—
Modifications
1. (1) Any reference in the Act to a law not in force, or to a functionary not
in existence, in the Union territory of Dadra and Nagar Haven shall be construed
as a reference to the corresponding law in force, or to the corresponding func-
tionary in existence, in that Union territory:
. -Provided that if any auestion arises as to who such functionary is, the decision
f the Administrator of Dadra and Nagar Haveli shall be final.
(2) Throughout the Act, unless otherwise directed,—
(a) for the words "State Government", the word "Administrator" shall be
substituted and there shall also be made in any sentence in which
these words occur such consequential amendments as the rules of
grammar may require;
(b) for the words "State of Gujarat",the words "Union territory of Dadra
and Nagar Haveli" shall be substituted;
( 159 )
/\
~
111131 111 .221 ’” 3
REGISTERED No D. 1.
Eli-m {gimme 1131:. 61m
WW
EXTRAORDINARY
W 11_fi11g :1 mm (ii)
PART II—Sectian 3~Sub-section (ii)
afim 1% Wm
PUBLISHED BY AUTHORITY
m 52] a? 76351111721211: mi; 15, 1965112175113 24, 1886
No. 521 NEW DELHI, MONDAY, MARCH 15, 196 slPHALGUNA 21, {ass
fimfihflwmfimfié’mhfiammafimfmmfil
Separate paging is given to this Part in order that it may be filed
as a. separate compilation
MINISTRY OF HOME AFFAIRS
NOTIFICATION
New Delhi, the 9111 March 1965
5.0. 9091111111 exercise 01' 1112 puwers conferred by sectmn 10 of the Dadra
and Negar '1 veli Act, 1961 (35 of 1.0111)‘ the Central Government hereby extends
to the Union‘ territory 01' Dadra and Nagar Ha r the Gujarafi (to—operative
Sotieties Act 1‘16] (Gujarat Act No X at 15162) at present in force in the
StaLe of Gujarat, subject to the 1'0]! owinH 1110(111‘1caum15,mummy:—
Modificntwus
1v mimence in (he_
. in [he UuiDu te
1". 1,0 11 law not in Iurce, 01' to :1 functionary not
0111' (11' Dadra and N-agar Havefi 112111 be construed
01111111" [111v in force, or to 1.112 corresponding func'
. cure, in that Union tenilm'V:
“0an in 1:
1"1‘1‘111'Mer1 that if any (11105 s in whu much €112‘1('U(m.1ry L l 11 ,
21' 1111-3 :‘111111111istrfltr1r {11' Dad 1,1 111111 1 1 111‘ ”:1qu Shall be [111111
121 T111-111131‘1111ut the Ar'L 1111
(111 1111 the word» “st 1"131111110111”. 1111: 1- "Admi
, 11 111111 1.11111 11.111 .11 1 111: 111111111 in 11 g
1 .11 1111-13111111111111 11121211111‘11111115 1-1:, 11112 1‘
21111:] be
111(111
.125 131
1111 1111- 13m 111.1111; -
.11111 11111311 11:11111
111 (1111,1211", ‘111—
3111111 111‘ :‘1'1'<1ifl111‘v(
”Jul-111 11: 111 Dmim
THE GAZETTE,O.T.'<)IA EXTRAORDINARY
[PART
(c) for the word "State" [except- where it occurs in the expression "State
Government" and except in Chapters V and XI and sections 67(2) and
163], the words "Union territory" shall be substituted;
(d) for the words and figures "Indian Limitation Act, 1908", the words and
figures "Limitation. Act, 1963" shall be substituted.
2. In section 1, for sub-section (3), the following, sub-section shall be substituted,
Itamely:—
"(3) It shall come into force on such date as the Administrator may, by
notification in the Official Gazette, appoint; and different dates may
be appointed for different provisions of this Act."
3. In section 2—
(a) clause (1) shall be re-numbered as clause (la)
as so re-numbered, the following clause shall
"(1) "Administrator" means the Administrator of
Dadra and Nagar Haveli;"
(b) for clause (11), the following clause shall be substituted, namely:—
"(11) "Land Revenue Code" means Organizacao Agraria for Nagar-
Haveli in force in the Union territory of Dadra and Nagar Haveli
immediately before the commencement of this Act therein or any
other corresponding law for the time being in force;";
(c) clause (22) shall be omitted;
(d) in clause (23), for the words "Gujarat State", the words "Dadra and
Nagar Haveli" shall be substituted.
4. In sub-section (2) of section 14, for the words "State Co-operative Council"„
the word "Administrator" shall be substituted.
5. In clause (d) of sub-section (1) of section 22, in the first paragraph; of
section 29 and in section 43, .for the words "State Government", the :cords:
"Central Government" shall be substituted.
6. In sub-section (1) of section 49,—
•
(a) in the proviso to clause (d), for the words "State Government", the
words "Central Government" shall be substituted;
(b) for clause (g), the following clause shall be substituted, namely:—
"(g) the Record of Rights relating to the land shall include the particulars;
of every charge on land or interest created under a declaration
under clause (a) or clause (b)".
7. In Chapter V and in sections 80, 82(3), 86(5)(i) and 95(2). Tor the words
"State Government", wherever they occur, the words "Central Government" shall'
be substituted.
8. In section 66. in sub-section (2), the words 'to contribution to the educa-
tional fund of such federal co-operative society as the State Government may
by notification. in the Official Gazette specify as "the Gujarat State Co-operative.
Union" to the payment of rebate on the basis of support received from members
and persons who are not members to its business and subject to the prescribed
conditions to payment of honoraria,' shall be omitted.
9. Section 69 shall be omitted.
10. In section 70, the words and figures "and for the educational fund as pro-
vided in section 60," shall be omitted, and for clauses (a) and (b), the words "of
the Administrator" shall be substituted.
11. In section 71. in sub-section (2). for the words "State Co-operative Council'',
the word "Administrator" shall be substituted.
12. In section 81, for the word "administrator" or "administrators" wherever
it occurs, the words "Special Officer" or "Special Officers"„ as the case may be,
shall be substituted.
and before the clause
be inserted, namely:—
the Union territory of
r
o
J
(c) for the word ”State" [except where it occurs in the expression "State
Government” and except in Chapters V and XI and sections 67(2) and
163], the words “Union territory” Shall be substituted;
(:3) for the words and figures “Indian Limitation A_ct, 1908", the words and
figures “Limitation Act, 1963” shall be substituted.
2. In section 1, for sub-section (3), the following sub-section shall be substituted,
namely!
"(3) It shall come into force on such date as the Administrator may, by
notification in the Official Gazette, appoint; and difierent dates may
he aDpOinted for different provisions of this Act.“
3. in section 2#
(a) clause (1) shall be renumbered as clause (la) and before the clause
as so rte-numbered1 the following clause shall be inserted, namely:-
"(l) “Administrator" means the Administrator of the Union territory of
Dadra and Nagar Haveli;"
(b) for clause (11), the following clause shall be substituted, namely:—
”(11) “Land Revenue Code” means Organizacao Agraria for Nagar
Haveli in force in the Union territory of Dadra and Nagat Haveli
immediately before the commencement of this Act therein or any
other corresponding law for the time being in fornefl’;
(a) clause (22) shall be omitted;
(d) in clause (23), for the words “Gujarat State”, the words "Dadra anti
Nagar Haveli" shall be substituted.
4. In sub-section (2) of section 14. for the words “State Co-operative Council",
the Word “Administrator" shall be substituted.
:‘i, In clause (d) of sub-section (1) of section 22, in the first paragraoh of
section 29 and in section 4 for the words “State Government", the words
"Central Government" shall a substituted.
6. In sub—section (1) of section 49.—
(a) in the proviso to clause ((1). for the words “State Government", the:
words “Central Government” shall be substituted;
(1:) for clause (s), the following clause shall be substituted, namely:-
“(g) the Record of Rights relating to the land shall include the particulars
of every charge on land or interest created under a declaration
under clause (a) or clause (17)”.
’7. In Chapter V and in sections 80, 82(3). 85(5)“) and 95(2), {hr the words
”State Government”, Wherever they occur, the words "Central Government" shall
i: e substituted.
8. In section 66 in subsection (2). the words ‘to contribution to the educa~
tional fund of such federal coeoperaiive s ciety as the State Government may
by notification in the Ofiicial Gazette speci v as “the Gujarat State Cooperative
Union" to the payment of rebate on the basis of support received from members
and persons who are not members to its business and subject to the Prescribed
conditions to payment of honoraria,‘ shall be omitted.
9. Section 59 shall be omitted. ' ‘e
10. in section 70 the words and Flaurcs "and for the educational fund as pro-
vided in sEction 5“. shall he omi‘ltl. . and for clauses (a) and (b), the words “of
the Administrator shall be substituted.
ll. In section 7i. in sub-Section (2L ior the Words "State (Io-operative Council’.
the word "Administrator” shall be subslituted.
_ l2. In section Bl. '" r the word ”udmiliistrul r” or “udministratu‘ " W11
11 occurs. the‘lvorlls 'Speciul Olficul‘” or "Special Officers", as the case may he
shall be sunstltllted.
SEd. THE GAZETTE OF INDIA EXTRAORDINARY
13. In section 90, in sub-section (1), for the words "Consolidated Fund of the
state", the words "Consolidated Fund of India" shall be substituted.
14. In the proviso to section 103 and in section 105, for the words "the Collec-
tor", wherever they occur, the words "the Mamlatdar" shall be substituted.
15. In section 106,—
(a) in sub-section (1), the words and figures "as defined under the Bombay
Agricultural Debtors Relief Act, 1947", shall be omitted;
(b) for sub-section (4), the following sub-sections shall be substituted,
namely:—
"(4) Until the arrears due to the Society together with interest and any
incidental charges incurred in the recovery of such arrears are paid,
or security for payment of such arrears is furnished to the satis-
faction of the Registrar, it shall be lawful for the Mamlatdar and
the Registrar to take the following precautionary measures,
namely:—
(i) to prevent the crop being removed from the land;
(ii) (a) to require that the crop growing on any land liable to the pay-,
ment of arrears due to the society shall not be reaped until a
notice in writing is given to the Mamlatdar or the Registrar, as
the case may be, in this behalf, with an acknowledgment of its
receipt;
(b) to direct that no such crop shall be removed from the land on which
it 'has been reaped or from any place in which it may have been
deposited without the written permission of the Mamlatdar or
the Registrar;
(c) to cause watchmen to be placed for any such crop to prevent the
unlawful reaping or removal of the same, and to realise the
amount required for the remuneration of the said watchmen at
such rate not exceeding the rate of pay received by such watch-
men as an arrear of land revenue due in respect of the land to
which crop belongs.
(5) The Mamlatdar's or Registrar's orders under sub-clause (a) or (b)
of clause (ii) of sub-section (4) may be issued generally or in
individual cases. If the order be general, it shall be made known
by public proclamation to be made by beat of drum in the village
and by affixing a copy of the order in the Patelad or some other
public building in the village. If it be to individual holders, a
notice thereof shall be served on each holder concerned.
(6) Any person who shall disobey any such order after the same has been
so proclaimed, or a notice thereof has been served upon him, or
who shall within the meaning of the Indian Penal Code (45 of 1860),
abet the disobedience of any such order, shall be liable, on convic-
tion after a summary inquiry before the Mamlatdar, to a fine not
exceeding double the amount of land revenue due on the land to
which the crop belongs in respect of which the offence is committed.
(7) The Mamlatdar or Registrar, as the case may be, shall not defer the
reaping of the crop nor prolong its deposit unduly, so as to damage
the produce, and if within two months after the crop has been
deposited the dues have not been discharged, he shall 'either release
the crop and proceed to realise the revenue in any other manner
authorised by law, or take such portion thereof as he may deem
fit for sale in the prescribed manner and release the rest.",
16. In section 115, in the proviso, clause (b) shall be omitted.
17. In section 116.—
(a) in clauses (iii) and (iv), the words "in any part of the State" shall be
omitted;
(b) in Explanation 2, in clause (in), the words "or any other corresponding
law for the time being in force" shall be inserted at the end.
E GAZETTE OF INDIA
5m: . an] 'TK‘KORDlNARY 1 1
13. In section 90, in sub-section (1). for the words “Consolidated Fund of the
State”, the words “Consolidated Fund oi India“ shall be substituted.
14. In the proviso to section 103 and in section 105, for the words “the Collec—
tor”, wherever they occur, the words “the Mamlatdar" shall be substituted.
15. In section 106.—«
(a) in sub-section (1), the words and figures "as defined under the Bombay
Agricultural Debtors Relief Act, 1947", shall be om1tted;
(b) for sub-section (4). the following sub—sections shall be substituted,
namelyz~
“(4) Until the arrears due to the Society together with interest and any
incidental charges incurred in the recovery of such arrears are paid,
or security for payment of such arrears is furnished to the satis-
faction of the Registrar, it shall be lawful for the Mamlatdar and
the Registrar to take the following precautionary measures.
namely:—
(i) to prevent the crop being removed from the land;
(ii) (a) to require that the crop growing on any land liable to the pay:
ment of arrears due to the society shall not be reaped until a
notice in writing is given to the Mamlatclar or the Registrar, as
the case may be. in this behalf. with an acknowledgment of its
receipt:
(b) to direct that no such crop shall be removed irom the land on which
it has been reaped or from any place in which it may have been
deposited Without the Written permission of the Mamlatdnr or
the Registrar;
(c) to cause watchmen to he placed for any such croD to prevent the
, unlawful reaping or removal of the same, and to realise the
amount required for the remuneration of the said watchmen at
such rate not exceeding the rate of pay received by such watch—
men as an arrear of land revenue due in respect of the land to
which crop belongs.
(5) The Mamlatdar’s or Registrar's orders under sub—clause (3) or (b)
of clause (ii) of subsection (4) may he issued generally or in
individual cases. If the order be general. it shall be made known
by public proclamation to he made by heat of drum in the village
and by amxing a copy 01’ the order in the Fatelad or some other
public building in the village. If it be to individual holders, a
notice thereof shall be served on each holder concerned.
(6) Any person who shall disobey any such order after the same has been
so proclaimed, or a notice thereof has been served upon him. or
who shall within the meaning of the Indian Penal Code (45 of 1860),
abet (he disobedience of a V such order‘ shall be liable, on convic-
tion after a summary inqur before the Mamlatclar. to a line not
exceeding double the amounl ot'land revenue due on the land to
which the I'r‘up belongs in respect of which the offence is. committed.
(7) The Momlaidur or Registrar. us the case may be. shall not defer the
reaping ot‘ the crop nor prnlnng its deposit unduly, so nage
the produce. aml ll' within two months aitcr the l,_0r) has been
deposited the rlucs have not been discharged. he shall either release
the cm and pr 'Ell to real the revenue in any other manner
ch portion lherenl‘ us he may deem
‘ilmrl manner and release the rest”.
ll}. [n section 115. in the proviso. clause (ll) Shflll be omitted,
{7. in section 116,7
(a) in clans
omitted
(b) in Expl’ ‘tinn 2, in 01:!
law loi the time being
lliiv and lin'v.
'in any part of the Slate" Almll he
(ml. the words “or any olher carrespumlinq
m in "a" shall be inserted at the eml
162 THE GAZETTE OF INDIA EXTRAORDINARY [PAgoIl-
18. In sections 119, 120 and 141, for the words "State Government" wherever
they occur, the words "Central Government" shall be substituted.
19. In section 130, for the word "Collector", the word "Mamlatdar" and for the
word "Commissioner" the words "Collector, Dadra and Nagar Haveli" shall be
substituted.
20. In section 139, in sub-section (3), for the words and figures "It shall be
lawful for the Collector to take precautionary measures authorised by sections
140 to 144 of the Land Revenue Code", the words and figures "It shall be lawful
for the Mamlatdar to take the precautionary measures authorised under sub-
section (4) of. section 106" shall be substituted.
21. In clause (i) of sub-section (1) of section 147, for the words "State Gov-
ernment", the words "Central Government, Administrator" shall be substituted.
22. In sub-section (1) of section 150, for the words "Gujarat State Co-operative
Tribunal", the words "Dadra and Nagar Haveli Co-operative Tribunal" shall b
substituted.
fteir
23. Section 156 shall be omitted.
24. In section 160, for the words "State Co-operative Council", the word
"Administrator" shall be substituted.
25. In section 162, in clause (b), the words "or to any panchajat constituted
under any law relating to panchayats for the time being in force" shall be omitted.
26. In section 163—
(a) in sub-section (1), for the words "in any other State", the words
"elsewhere in India" shall be substituted;
(b) in sub-section (2), for the words "in any• other State", the words "else-
where in India" and for the words "Registrar of the State", the words
"Registrar of the State or Union territory" shall be substituted.
27. In section 164, for the words "an administrator", the words "SpeciaOfficer"
shall be substituted.
28. In section 168, sub-sections (4) and (5) shall be omitted.
29: Section 169 shall be omitted.
ANNEXURE
GUJARAT CO-OPERATIVE SOCIETIES ACT, 1961 AS EXTENDED TO THE
UNION TERRITORY OF DADRA AND NAGAR HAVELI
(GUJARAT ACT No. X OF 1962)
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.—(1) This Act may be called themes
Gujarat Co-operative Societies Act, 1961.
(2) It extends to the whole of the Union territory of Dadra and Nagar Haveli.
(3) It shall come into force on such date as the Administrator may, by-40tifi-
cation in the Official Gazette, appoint; and different dates may be appointed for
different provisions of the Act.
2. Definitions.—In this Act, unless the context otherwise requires,—
(1) "Administrator" means the Administrator of the Union territory of Dadra
and Nagar ilaveli;
(1a) "auditor" means a certified author appointed either by the Registrar or
by a society to audit the accounts of the society;
(2) "by-laws" means by-laws registered under this Act and for the time being
in force, and include registered amendments of such by-laws;
152 THE GAZETTE OF INDIA EXTRAORDINARY [PA;"I_I—
18.111 sections 119 120 and 141 for the words “State Government" Wherever
they occur, the words “Central Government” shall be substituted
19. In section 130, for the word ”Collector". the word “Mamlatdar” and for the
word ”Commissioner" the words “Collector. Dadra and Nagar Havali“ shall be
substituted,
20. In section 139, in subsection (3). for the words and figures “It shall be
lawful for the Collector to take precautionary measures authoiised by sections
140 to 144 of the Land Revenue Code“. the words and figures “It shall be lawful
for the Mamlatdar to take the precautionary measures authorised under sub-
section (4) of section 106” shall be substituted.
In Clause (i) of sub section (1) of section 141. for the words “State GovA
ernment". the words “Central Government. Administrator" shall be substituted.
22. In subsection (1) of section 150, for the words ”Gujarat State CD-Opel’ativfl
Tribunal", the words “Dadra and Nagar Haveli (So-operative Tribunal" shall b
substituted.
W-
23. Section 155 shall be omitted.
24. In section 160. for the words “State Co-operative Council”, the Word
‘Administrator” shall be substituted.
25. In section 1621 in clause (b). the words “or to any panchgyat constituted
under any law relating to panchayats for the time being in force" shall be omitted.
26. In section 153—
(a) in sub-section (1). for the words “in any other State”. the words I
”elsewhere in India" shall be substituted;
(1:) in sub-section (2). for the words “in any other State". the Words “else-
where in India" and for the words “Registrar of the state“. the words
“Registrar of the State or Union territory“ shall be substituted.
27. In section 16—}, for the words “an administrator", the words “Specierolficer”
shall be substituted.
:18. In section 168, sub—sections (4) and (5) shall be omitted.
29. Section 169 shall be omitted.
ANNEXURE
GUJARAT CO-OPERATI'VE SOCIETIES ACT, 1961 AS EXTENDED TO THE
UNION TERRITORY OF DADRA AND NAGAR HAVELI
(GUJARAT Acr No. X or 1962)
CHAPTER I
PRELDVUNARY
1. Short title. extent and commencement..~(h This Act may be called the“
Gujarat Co-operative Societies Act. 1961.
(:2) It extends to the whole of the Union territory of Dedra and Nagar I-Iaveli.
tor mav
(1‘) It shall come into force on such (lite as the Admin'
' be appointed for
cation in the Oflicial Gazette appo1nt:and (lilieient dates in
different prowsions of the Act.
' otherwise requires,#
2. Dcfiniiions.~1n this Ax-t, unless the cont
(1) "Alli '
and Nag-41-
trator" means the Aclrnit' r 01‘ the Union territory oi Dadra
"1111111111“ means '1 r‘r‘rtme author amphinted either by the Registrar or
t\* lo nu‘lit toe accounts at the 7‘“
1d [Dr the time heing
egistexcrl 1 411 thi Aw
nenrlw'v‘nts of 1:11 luv-laws
61 3 g
Sac .3 (ii)] THE GAZETTE OF INDIA EXTRAORDINARY 163
(3) "Central Bank" means a co-operative bank, the objects of which include
the creation of funds to be loaned to other societies;
(4.) "certified author" means a person who possesses the prescribed qualifica-
tions and is authorised by the Registrar as an auditor under section 84;
(5) "committee" means the committee of management, or other directing body,
to which the management of the affairs of •a society is entrusted;
(6) "company" means a company as defined in the Companies Act, 1956, (I of
1956) and includes a Banking Company and also any board, corporation or other
corporate body, constituted or established by any Central, State or Provincial Act
for the purpose of the development of any industry;
('7) "co-operative bank" means a society registered under this Act and doing
the business of banking, as defined in clause (b) of sub-section (1) of section 5
of the Banking Companies Act, 1949 (X of 1949);
(8) "dividend" means the amount paid, out of the profits of a society,, to a
member in proportion to the shares held by him;
(9) "federal society" means a society, not less than five members of which
are themselves societies;
(10) "firm" means a firm registered under the Indian Partnership Act, 1932
(IX of 1932);
(11) "Land Revenue Code" means Organizacao Agraria for Nagar Haveli in
force in the Union territory of Dadra and Nagar Haveli immediately before the
commencement of this Act therein or any other corresponding law for time being
in force;
_ (12) "Liquidator" means a person appointed as a liquidator under this Act;
(13) "member" means a person joining in an application for the registration
of a co-operative society which is subsequently registered, or a person duly
admitted.. to membership of a society after registration and includes a nominal,
associatii or sympathiser member;
(14) "officer" means a person elected or appointed by a society to any office
of such society according to its by-laws; and includes a chairman, vice-chairman.
president, vice-president, managing director, manager, secretary, treasurer, mem-
ber of the committee, and any other person elected or appointed under this Act,
the rules or the by-laws, to give directions in regard to the business of such sdciety;
(15) "prescribed" means prescribed by rules;
(16) "rebate" means any payment made in cash or kind, out of the profits of
a society, to a member or any other person, on the basis of his contribution to the
business of the society ;
(17) "Registrar" means a person appointed to be the Registrar of Co-operative
Societies under this Act; and includes to the extent of the powers of the Re-
gistrar conferred on any other person under this Act, such person and includes
an Additional or Joint Registrar ;
(18) "rules" means rules made under this Act ;
(19) "society" means a co-operative society registered, or deemed to be re-
gistered, under this Act ;
(20) "society with limitedyilwiaabsility" means a society having the liability Of
its ,members limited by its b
(21) "society with unlimited liability" means a society, the members of which
are, in the event of its being wound up, jointly and severally liable for and in
respect of its obligations and to contribute to any deficiency in the assets of the
society ;
* * * * 3* *
(23) "Tribunal" means the Dadra and Nagar Haveli Co-operative Tribunal
constituted under this Act ;
(24) "working capital" means funds at the disposal of a society inclusive of
paid-up share capital, funds built out of profits, and money raised by borrowing
and by other means.
6735)
555’ 3(ii)] THE (LA/.EI'TE OF INDIA EXTRAORDINARY 163
(3) “Central Bank" means a co-operative bank, the objects of which include
the creation of funds to be loaned to other societies;
(-l) “certified author” means a person who possesses the prescribed qualifica-
tions and is authorised by the Registrar as an auditor under section 84,
(5) "committee” means the committee of management. or other directing body.
to which the management of the arrairs of a society is entrusted;
(6) “company" means a company as defined in the Companies Act, 1956, (I o!
1956) and includes a Banking Company and also any board, corporation or other
corporate body. constituted or established by any Central, State or Provincial Act
for the purpose of the development of any industry;
(7) “co-operative bank” means a society registered under this Act and doing
the business of banking,las defined in clause (b) of subsection (1) or section 5
of the Banking Companies Act. 1949 (X of 1949);
(a) “dividend” means the amount paid, out or the profits of a society, to a
member in proportion to the shares held by him;
(9) “federal society” means a society, not less than five members of which
are themselves societies;
(10) ”firm” means a firm registered under the Indian Partnership Act, 1932
(IX of 1932);
(ll) ”Land Revenue Code” means Organizacao Agraria l'or Nagar Haveli in
force in the Union territory 0! Dadra and Nagar Haveli immediately before the
commencement of this Act therein or any othEr corresponding law for time being
in force;
(12) ”Liquidator” means a person appointed as a liquidator under this Act;
(13) “member” means a person joining in an application for the registration
of a comparative society which is subsequently registered, or a person duly
admitted to membership of a society after registration and includes a nominal,
associate or sympathiser member;
(14) "officer” means a person elected or appointed by a society to any office
of such society according to its by-laws; and includes a chairman, vice-chairman.
president, viceApresident: managing director, manager. secretary, treasurer, mem-
ber ok‘ the committee, and any other person elected or appointed under this Act,
the rules or the by-laws, to give directions in regard to the business or such society;
(15) “prescribed" means prescribed by rules;
(16) “rebate” means any payment made in cash or kind, out of the profits of
a society, to a member or any other person, on the basis of his contribution to the
business of the society;
(17) "Registrar" means a person appointed to be the Registrar of Co-operative
Societies under this Act; and includes to the extent of the powers of the Re
gistrar conferred on any other nerson under this Act, such person and includes
an Additional or Joint Registrar;
(Ill) ”rules” means rules made under this Act;
(10) “society” means a cooperative society registered, or deemed to be re—
gistered, under this Act:
(20) ”society with limited liability" means a society having the liabilitv of
its members limited by its by—laws;
(‘31) "
are, in :h;
' with uniimitetl liability" means a * 'ety, the members (it which
nt of its being “mum! up. Jointly and severally liable for and in
is of the
l sped. of ll< obligations and to mnlrilmto to any deficiency in the a
society ;
124:
unit: _
Anti by other
s (onus
unocdl of a
. and money in
cty inclusive of
(I by borrowing
THE GAZETTE.pf INDIA EXTRAORDINARY [PARTA_H-
CHAPTER II
REGISTRAR AND REGISTRATION
3: Registrar and other officers and their powers.—(1) For carrying out the
purposes of this Act, the Administrator shall appoint a person to be the Registrar
of Co-operative Societies for the Union Territory.
(2) To assist the Registrar in his functions under this Act, the Administrator
may appoint such number of Additional Registrars, Joint Registrars, Deputy Re-
gistrars, Assistant Registrars and other persons with such designations as he may
think fit,
(3) The Administrator may, by general or special order, confer on a person
or persons appointed under sub-section (2) all or any of the powers of the Regis-
trar under this Act.
(4) Every person appointed under sub-section (2) shall work under the
general guidance, and the superintendence and control of the Registrar. °••,yr
4. Societies which may be registered.—A society, which has as its object the
promotion of the economic interests or general welfare of its members, or of the
public, in accordance with co-operative principles, or a society established with
the object of facilitating the operations of any such society, may be registered
under this Act: '
Provided that it shall not be registered if, in the opinion of the Registrar, it
is economically unsound, or its registration may have an adverse effect upon any
other society, or it is opposed to, or its working is likely to be in contravention
of public policy.
5. Registration with limited or unlimited liability.—A society may be register-
ed with limited or unlimited liability.
•
6. Conditions of Registration.—(1) No society other than a federal society shall
be registered under this Act unless it consists of at least ten persons (each of such
persons being a member of different family), who are qualified to be members
under this Act and who reside in the area of operation of the society.
(2) No society with unlimited liability shall be registered, unless all persons
forming the society reside in the same town or village, or in the same group
of villages.
(3) No federal society shall be registered, unless it has at least five societies
as its members.
(4) Nothing in this Act shall be deemed to affect the registration of any society
made before the commencement of this Act.
(5) The word "limited" or "unlimited" shall be the last word in the name
of every society with limited or unlimited liability, as the case may be, which is
registered or deemed to be registered under this Act.
Explanation.—For the purposes of this section the expression "member of a
family" means a wife, husband, father, mother, grand-father, grand-mother, step-
father. step-mother, son, daughter, step-son, step-daughter, grand-son, grand-
daughter, brother, sister, half-brother, half-sister and wife of brother or
brother. .n•No
7. Power to exempt societies from conditions as to registration.—Notwithstand-
ing anything contained in this Act, the Administrator may, by special order in
each case, exempt subject to such conditions, if any, as he may impose, any
society from any of the requirements of this Act as to registration.
8. Application for registration.—(1) For the purposes of registration, an appli-
cation shall be made to the Registrar in the prescribed form, and shall be accom-
panied by four copies of the proposed by-laws of the society. The person by
whom, or on whose behalf, such application is made, shall furnish such informa-
tion in regard to the society, as the Registrar may require.
[64 THE GAZETTE ,OF INDIA EXTRAORDINARY [PAu'rtII—
;:
CHAPTER II
REGISTRAR AND REGISTRATION
3. Registrar and other oil-10ers and their homers—(1) For carrying out the
purposes of this Act, the Administrator shall appoint a person to be the Registrar
of (to-operative Societies for the Union Territory.
(2) To assist the Registrar in his functions under this Act, the Administrator
may appoint such number of Additional Registrars, Joint Registrars, Deputy Re-
gistrars, Assistant Registrars and other persons with such designations as he may
think fit.
(3) The Administrator may, by general or special order, confer on a person
or persons appointed under subsection (2) all or any of the powers of the Regis-
trar under this Act.
(4) Every person appointed under sub—section (2) shall work under the
general guidance, and the superintendence and control of the Registrar, w...
4. Societies which may be registerefl.~A society, which has as its object the
promotion of the economic interests or general weLiare of its members, or of the
public, in accordance with co-operative principles, or a Society established with
the object of facilitating the operations of any such society, may be registered
under this Act: ,
Provided that it shall not be registered if in the opinion of the Registrar. it
is economically unsound, or its registration may have an adverse eli‘ect upon any
other society, or it is opposed to. or its working is likely to be in contravention
of public policy.
5. Registration with limited or unlimitefl liability—A society may be register-
ed with limited or unlimited liability, ’
c
6. Couflitions oi Registration—(l) No society other than a federal socie‘t‘y shall
be registered under this Act unless it consists of at least ten persons (each of such
persons being a member of different family). who are qualified to be members
under this Act and who reside in the area of operation of the society
(2) No society with unlimited liability shall be registered. unless all persons
forming the society reside in the same town or village, or in the same group
of villages
(3) No federal sociezy shall be registered, unless it has at least five societies
as its members.
(4) Nothing in this Act shall be deemed to affect the registration of any society
made before the commencement of this Act.
(5) The word “limited" or “unlimited" shall be the last word in the name
of every society with limited or unlimited liability, as the case may be. which is
registered or deemed to be registered under this Act. 2"
Explanationvflor the purposes of this section the eiiiression “member of a
family” means a wiie, husband, father, mother, grand-father, grand-mother. step-
fiatllcr. step—mother, son, daughter, step—r step-daughter, erand~son, grand-
daughter, brother, sister, half-brother. hall ter and wife of brother or lr'lf»
brother. w
s to r egistratioulvNotwithstand-
7. Pm a? to exempt societies from comliii
or”: contained in this Act, the Adm trator mav, by special order in
exempt subject to such conditions it any, he may impose. any
any of the requiremenis of this Act as to registration,
society f1
u {or registration—(1) For the DL’JUQSCS of registration, on apoli-
l .e made in the Registrar in the pl'esr‘ iberl form nml shall be accom»
cation s.
paiiier‘. l) s of the proposed l «arson by
Whom, or ’ ““1, such :Ipplicoti Kanna-
tiou in
... 3 (ii)] THE GAZETTE • OF INDIA EXTRAORDINARY 165 •
(2) The application shall be signed—
(a) in the case of a society other than a federal society, by at least ten persons
(each of such persons being a member of a different family) who are qualified
under this Act, and
(b) in the case of a federal society, by at least five societies.
(3) No signature to an application on behalf of a society shall be valid unless
the person signing is a member of the committee of such society, and is authorised
by the committee by resolution to sign on its behalf the application for registra-
tion of the society and its by-laws; and a copy of such resolution is appended to
the application.
9. Registration and provisional registration, certificate of registration.—(1) On
receipt of an application for registration from a society—
(a) if the Registrar is satisfied that the society has complied with the provi-
sions of this Act and the rules as to registration and that its by-laws are not
contrary to this Act and the rules, he shall register the society and its by-laws;
and
(b) if the Registrar is of opinion that the application complies with the
requirements of section 8 but that its by-laws are not in conformity with the
provisions of this Act and the rules, he may provisionally register the society
and by an order in writing permit the society to perform such functions subject
to such conditions as he may specify in the order and may also by an order in
writing direct the society to amend within the period prescribed in this behalf
its by-laws so as to bring them in conformity with this Act and the rules.
(2) When a society has been provisionally registered, the Registrar shall on
its compliance with the order made under clause (b) of sub-section (1) finally
register it and its by-laws; and on its failure to comply with the order shall
cancel its provisional registration.
(3).A provisionally registered society shall not be deemed to be a society
regis...ered under this Act.
(4) On the registration of a society, the Registrar shall issue to it a certificate
of registration signed by him.
(5) A certificate of registration issued under sub-section (4) shall be con-
clusive evidence that the society therein mentioned is duly registered, unless it
is proved that the registration has been cancelled.
(6) If the Registrar refuses to register the society, he shall forthwith com-
municate his decision with reasons therefor, to the person who has signed first
on the application.
10. Register of societies.—The Registrar shall maintain a register in the
prescribed form of all societies registered or deemed to be registered under this
Act.
11. Power of Registrar to decide certain questions.—When, any question
arises whether for the purpose of the formation or registration or continuance
of a society or the admission of a person as a member of a society under this
Act a person is an agriculturist or a non-agriculturist, or whether any person is
a resident in a town or village or group of villages, or whether two or more
villages shall be considered to form a group, or whether any person belongs to
z,,ijr particular tribe, class or occupation, the question shall be decided by the
Registrar.
12. Classification of societies.—The Registrar may classify all societies in such
manner, and into such classes, as he thinks fit; and the classification of a society
under any head of classification by the Registrar shall be final.
13. Amendment of by-laws of society.—(1) No amendment of the by-laws of
a society shall be valid until registered under this Act. For the purpose of
registration of an amendment of the by-laws, a copy of the amendment passed, in
the manner prescribed, at a general meeting of the society, shall be forwarded to
the Registrar.
m
. 3(ii)] THE GAZETTE OF INDIA E TRAORUINARY
(2) The application shall be signed—
(a) in the case of a society other than a federal society, by at least ten persons
(each of such persons being a member of a different tamily) who are qualified
under this Act, and
(b) in the case ot a federal society, by at least five societies.
(3) No signature to an application on behalf of a society shall be valid unless
the person signing is a member of. the committee of such society, and is authorised
by the committee by resolution to sign on its behalf the application for registra-
tion of the society and its by-laws: and a copy of such resolution is appended to
:the application.
9. Registration and provisional registration, certificate of registration—(D On
receipt of an application for registration from a society:
(a) if the Registrar is satisfied that the society has complied with the provi-
sions of this Act and the rules as to registration and that its by—laws are not
contrary to this Act and the rules, he shall register the society and its toy-laws;
and
(b) it the Registrar is of opinion that the application complies with the
requirements of section 8 but that its by-laws are not in conformity with the
provisions of this Act and the rules. be may provisionally register the society
and by an order in writing permit the society to perform such functions subject
to such conditions as he may specify in the order and may also by an order in
writing direct the society to amend Within the period prescribed in this behalf
its byelaws so as to bring them in coniormity with this Act and the rules.
(2) When a society has been provisionally registered. the Registrar shall on
its compliance with the order made under clause (b) of sub-section (1) finally
register it and its by-laws; and on its failure to comply with the order shall
cancel its provisional registration
(3) A provisionally registered society shall not be deemed to be a society
regis.ered under this Act.
(4) On the registration of a society, the Registrar shall issue to it a certificate
of registration signed by him.
(5) A certificate of registration issued under sub-section (4) shall be con-
clusive evidence that the society therein mentioned is duly registered, unless it
is proved that the registration has been cancelled.
(6) It the Registrar refuses to register the society, he shall forthwith com-
municate his decision with reasons therefor, to the person who has signed first
on the application.
in. Register of societies—The Registrar shall maintain a register in the
prescribed form of all societies registered or deemed to be registered under this
Act
11. Power oi Registrar in decide certain (“motionsgwhem any question
arises whether for the purpose or the formation or registration or continuance
of a society or the admission or a person s a member of a society under this
Act a person is an agriculturist or a noneagriculturist, or whether any person is
a resident in a town or village or group of villages, or whether two or more
villages shall be considered to t'orm wrong, or whether any person belongs to
:uly particular tribe, class or ocuug on. the question shall be decided by the
Registrar.
1:. Classification of so . > ' - ' may classify all societies in such
manu ‘, uml into ' ‘ " (l the (:13 if: on or a society
under any 11-: d or classification by th” i shall be It
' '11 moiot l—(l) No amendment of the by—laws of
. , i! register? u‘vier this Act, For Him purpose of
ammo m 01’ the law . ii cripv at the amendment n' sFed, in
‘l’ibad, at u galeml lllL‘Ctlllg’ of the society. shall be forwurtleri to
registialion of ‘
the manner pm
the Registrar,
166 THE GAZETTE OF INDIA EXTRAORDINARY '1 [PART-
(2) If the Registrar is satisfied that the amendment so forwarded is not
contrary to this Act or the rules, he may register the amendment:
Provided that no order refusing to register the amendment shall be passed
except after giving the society an opportunity of being heard.
(3) When the Registrar registers an amendment of the by-laws of a society,
he shall issue to the society a copy of the amendment certified by him, which
shall be conclusive evidence of its registration.
(4) Where the Registrar refuses to register an amendment of the by-laws of
a society, he shall communicate the order of refusal, together with his reasons
therefor, to the society.
14. Power to direct amendment of by-laws.--(1) If it appears to the Registrar
that an amendment of the by-laws except in respect of the 'name or objects of a
society is necessary or desirable in the interest of such society, he may call upon
the society, in the prescribed manner, to make the amendment within such time
as he may specify.
(2.) If the society fails to make the amendment within the time so specified,.
the Registrar after giving the society an opportunity of being heard and with. the
prior approval of the Administrator, may register the amendment, and shall there-
upon issue to the society a copy thereof certified by him. With effect from the
elate of the registration of the amendment in the manner aforesaid, the by-laws
shall be deemed to have been duly amended accordingly; and the by-laws- as
amended shall be binding on the society and its members.
15. Change of name.—(1) Subject to the provisions of the rules a society may,
by resolution passed at a general meeting, and with the approval of the Registrar,,
change its name but such change shall not affect any right or obligation of. the
society, or of any of its members, or of any, of the persons who have ceased to be
members; and any legal proceedings pending before any person, authority or court
may be continued by or against the society, under its new name.
(2) Where a society changes its name, the Registrar shall enter the new name
in its place in the register of societies, and shall also amend the certificate :if re- •
gistration accordingly.
16. Change of liability.—(1) Subject to the provisions of this Act and the rules,
a society may by passing a resolution and by amending its by-laws, change the
form or extent of its liability.
(2) When a society has passed a resolution to chang.e the form or extent of its
liability, it shall give notice thereof in writing to all its members and creditors
and, notwithstanding anything in any by-law or contract to the contrary, any
member or creditor shall, during a period of one month from the date of service
of such notice upon him, have the option of withdrawing his investment in its
shares, and his deposits and loans and of demanding the payment of his other dues,
if . any.
(3) Any member or creditor who does not exercise his option within the period
specified in sub-section (2), shall be deemed to have assented to the change.
(4) An amendment of the by-laws of a society, changing the form or extent
of its liability, shall not be registered or take effect until, either—
(a) all members and creditors have assented, or deemed to have assented,.
thereto as aforesaid; or
(b) all claims of members and creditors exercising the option, under sub-sect
tion (2) have been met in full.
17. Amalgamation, transfer, division or conversion of societies.—(1)• Subject
to the provisions of the rules and the previous sanction of the. Registrar a society
may, by resolution . passed by two-thirds majority of the members present and
voting at a special general meeting held for the purpose, decide—
(a) to amalgamate with another society;
(b) to transfer its assets and liabilities, in whole or in part, to any other.
society;
(c) to divide itself into two or more societies;
(d) to convert itself into another class of society; o.r
(e) to change its object.
E OF INDIA
l‘llAORDINARV
(2) If the Registrar is satisfied that the amendment so forwarded is not
contrary to this Act or the rules, he may register the amendment:
Provided that no order refusing to register the amendment shall be passed!
except after giving the society an opportunity of being heard.
(3) When the Registrar registers an amendment of the by—laws of a societyt
he shall issue to the society a copy of the amendment certified by him. which
shall be conclusive evidence of its registration.
(4) Where the Registrar refuses to register an amendment of the byvlaWS of
a society, he shall communicate the order of refusal, together with his reasons
therefor. to the society.
14. Power to direct: amendment of bylaws—(1) Ii it appears to the Registrar
that an amendment of the by-laws except in respect of the name or objects of a
society is necessary or desirable in the interest of such society, he may call upon
the society, in the prescribed manner, to make the amendment within such time-
as he may specify.
(2) If the society fails to make the amendment within the time so specified,
the Registrar after giving the society an opportunity of being heard and with the
prior approval of the Administrator. may register the amendment, and shall there—
upon issue to the society a copy thereof certified by him. With elfect from the-
date of the registration of the amendment in the manner aforesaid. the bylaws
shall be deemed to have been duly amended accordingly; and the hy-laws as
amended shall be binding on the society and its members.
15. Change of name.~(l) Subject to the provisions of the rules a society may,
lay resolution passed at a general meeting, and with the approval of the RegistrarX
change its name but Such change shall not affect any right or obligation oi‘ the
society, or of any of its members, or of any of the persons who have ceased to be
members; and any legal proceedings pending before any person. authority or court
may be continued by or against the society, undei its new name.
(2) Where a society changes its name, the Registrar shall enter the new name
in its place in the register of societies, and shall also amend the certificate if re—
gistration accordingly. '
16. Change of liability.~(1) Subject to the provisions of this Act and the rules,
a somety may by passing a resolution and by amending its lay-laws, change the
form or extent of its liability.
(2) When a society has passed a resolution to change the form or extent of its
liability, it shall give notice thereof in writing to all its members and creditors
and, notwithstanding anything in any by-law or contract to the contrary, any
member 1‘ creditor shall, during a period of one month from the date of service
of such notice upon him, have the option of withdrawing his investment in its
shares. and his deposits and loans and of demanding the payment of his other tines,
if any.
(3) Any member or creditor who does not exercise his option within the period
specified in sub—section (2), shall be deemed to have assented to the change.
(All An amendment of tlie_by—laws of a society, changing the form or extent
of its liability, shall not be registered or take effect until. either-—
(a) all members and creditors have assented. or deemed to have assented.
thereto as aforesaid, or
(hi all claims of members and creditors exercising the option, under sub—s,
Sion (2) have been met in full.
.A‘
17. Amalgamation, transfer, division or conversion of societies—(l) Subject
to the provisions of the rules and the previous sanction of the Reg strar a society
may, 1 solution pa‘"ed by two-thirds majority of the members present and
Voting a special gel 1 meeting held for the purpose, decides
\a) to Tncleai ate h another societ
ib'y to iranst‘ s and liablhtlu‘f, in Whole or in part. to on}: other
' ty; or
lel to change its object.
3 (ii)1 THE GAZErrE OF INDIA EXTRAORDENAltY 167
(2) Where the amalgamation, transfer, divisi.on or conversion referred to in
sub-section (1) involves a transfer of the liabilities of a society to any other socie-
ty, the Registrar shall not sanction the resolution of the society unless he is satisfi-
ed that—
(i) the society, after passing such resolLtion, has given notice thereof in writ-.
ing to all its members, creditors, and other persons whose interests are likely to
be affected (hereinafter, in this section referred to as "other interested persons"),.
giving them the option, to be exercised: within one month from the date of the re-
ceipt of such notice, of becoming members of any of the new societies, or continu-
ing their membership in the amalgamated or converted society, or of withdrawing,
their investments in its shares, their deposits and loans and demanding payment.
of their other dues, if any,
(ii) all the members and creditors and other interested persons, have assented.
to the decision, or are deemed to have assented thereto by; having failed to exer-
cise the option within the period specified in clause (i), and
(iii) all claims of members and creditors and other interested persons, who,
exercise the option within the period specified, have been met in full.
(3) Notwithstanding anything contained in the Transfer of Property Act, 1882;
(IV of 1882) or the Indian Registration Act,. 1908,. (XVI of 1908) in the event of
division or conversion, the registration of the new societies or, as the case may be,
of the converted society, and in the event of amalgamation, on the amalgamation
the resolution of the societies concerned with amalgamation, shall in each case be-
sufficient conveyance to vest the assets and liabilities of the original society or
amalgamating societies in the new societies or converted or amalgamated society,
as the case may be.
(4) The amalgamation, transfer, division or conversion made under this section
shall not affect any right or obligation of the societies so amalgamated; or of the
society so divided or converted, or of the, transferee, or render defective any legal
proceedings which might have been continued or commenced by or against the
societies which have been amalgamated, or divided or converted;. and accordingly
such legal proceedings may be continued or. commenced by or against the amalga-
mated society; the converted society, the new societies or the transferee as the case
may be.
18. Cancellation of registration of amalgamated, divided or converted societies.—
Where two or more societies have been amalgamated, or a society has been divid-
ed or converted, the registration of such societies or society, as the case may be,
shall be cancelled on the date of registration of the new society or societies so
formed.
19. Reconstruction of societies.—Where a compromise or arrangement is pro-
posed—
(a) between a society and its creditors, or
(b) between a society and its members:
the Registrar may, on the application of the society or of any member or of any
creditor of the society, or in the case of a society which is being wound up, of the
liquidator, order reconstruction in the prescribed• manner, of the society.
20. Cancellation of registration.—(1)' The Registrar shall- make. an order can-
celling the registration of a society if it transfers the whole of its assets and liabili-
ties to another society, or amalgamates with another society, or divides itself into
two or more societies, or if its affairs are wound up or it has not commenced
business within a reasonable time of its registration or has ceased to function.
(2) An order made under sub-section (1) shall be published in the Officiat
Gazette.
(3) The society shall, from the date of such order of cancellation, be.cleemed:
to be dissolved and shall cease to exist as a corporate body.
21. Partnership of societies.—(1) 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 of each society has had clear ten days' written notice of the resolu-
tion. and the date of the meeting.
(2) Nothing in the Indian Partnership Act, 1932 (XI of 1932). and the Indians
Companies Act, 1956 shall apply to such partnership..
' lNUEA EXTRAORDINARY I5"
(2) Where the amalgamation, transfer, division or conversmn refs ed to in:
sub-section (1) involves a transier of the liabilities of a society to any other socie-
ty, the Registrar shall not sanction the resolution oi the society unless he is satisfi~
that—
(i) the society, after passing such resolution, has given notice thereof in writ—
ing to all its members, creditors, and other persons whose interests are likely to.
be affected (hereinafter, in this section referred to as “other interested persons”),
giving them the option. to be exercised within one month from the date of the re»
ceipt of such notice, of becoming members of any of the new societies, or continu-
ing their membership in the amalgamated or converted society, or of withdrawing
their investments in its shares, their deposits and loans and demanding payment
of their other dues, if any,
(ii) all the members and creditors and other interested persons, have assented
to the decision, or are deemed to have assented thereto by; having failed to exer—
cise the option within the period specified in clause (i), and
(iii) all claims of members and creditors and other interested persons, who
exercise the option within the period specified, have been met in i'ull.
(3) Notwithstanding anything contained in the Transfer of Property Act, 1882.
(1V of 1882) or the Indian Registration Act, 1908, (XVI of 1908) in the event of
division or conversion, the registration of the new societies or, as the case may be,
of the converted society, and in the event of amalgamation, on the amalgamation
the resolution of the societies concerned with amalgamation, shall in each case be
sutficient conveyance to vest the assets and liabilities of the original society or~
amalgamating societies in the new societies or converted or amalgamated society,
as the case may he,
(4) The amalgamation, transfer, division or conversion made under this section
shall not affect any right or obligation ol' the societies so amalgamated, or of the
society so divided or converted, or of the transferee, or render defective any legal
proceedings which might have been continued or commenced by or against the
societies which have been amalgamated, or divided or converted; and accordingly
such legal proceedings may be continued or commenced by or against the amalga—
mated society, the converted society, the new societies or the transferee as the case
may be.
18. Cancellation of registration of amalgamated: divided or converted societies.—
Where two or more societies have been amalgamated, or a society has been (livid‘
ed or converted, the registration of such societies or society, as the case may be,
shall be cancelled on the date of registration of the new society or societies so
formed
19. Reconstruction of societies—Where a compromise or arrangement is. prm
posed—
La) between a society and its creditors, or
(1)) between a societv and its members
the Registrar may, on the application of the society or of any member or of ny
creditor of the society, or in the case of a society which is being wound up, at the
liquidator, order reconstruction in the prescribed manner, of thc society,
20. Cancellation of registration—«til The Registrar shall make an order can-
e [ling the registration of a sociutV it it transfers the whole of its assets and liabilie
‘ to anolher societv, or amalgn ther society, or divides itself into
two or more societie ' ' up or it has not commenced
business within a re unable time of its reglst than or has ceased to function.
a
(2) An orclcr made Ulltlol’ sulrst't'llun (ll shall be published
Gazette.
n the OWL-ml
soc'cLy shall. from H
Ul\'L‘(l and shall me in c
lllll of such u lor ul' comellntmn. lJL‘ deemed.
: as a corporate hotly.
ship a
. the R .
present :m/l vutine or | ”gone Jl “”4131th of
Ll‘l\,’l,~ in r cnl‘i'ying nut l'rllfilll‘s‘
‘1 ruuml‘ei' of each sm‘lHL
lion. “ml the Llnte oL’ tln) lnct‘till‘
(2r Nothing: in the ImliJn 1 NH hip Art. 1032 (Kl of i332) and the [ndinn
Companies Act, 1938 shall “July to mull partnership.
! t
of 1hr: remix!—
THE GAZETTE OF INDIA EXTRAORDINARY
[PART II-
CHAPTER III.
MEMBERS AND THEIR RIGHTS AND LIABILITIES.
2/ Person who may become member.—(1) Subject to the provisions of section
'25, no person shall be admitted as a .member of a society except the following,
:that is to say—
(a) an individual, who is competent to contract under the Indian Contract
Act, 1872.—IX of 1872,
(b) a firm, company, association or a society registered under the Societies
Registration Act, 1860.—XXI of 1860.
(c) a society registered, or deemed to be registered, under this Act,
(.d) the Central Government:
Provided that, the provisions of clause (a) shall not apply to an individual
.seeking admission to a society exclusively formed for the benefit of students of a
school or college:
Provided further that subject to such terms and conditions as may be laid down
by general or special order a firm or a company may be admitted as a member
.only of such society as may be prescribed.
(2) Where a person is refused admission as a member of a society, the decision
refusing admission shall be communicated by the society to him within fifteen days
,,of the date of the decision.
23. Removal from membership in certain circumstances.—(1) Where a person
becomes a member of any society on his making a declaration as required by the
-by-laws of the society or otherwise and such declaration is found to be false, then
such person shall be disqualified to continue as a member of the society.
(2) Where a person continues as the member of a society notwithstanding the
.disqualification incurred by him under sub-section (1), he shall be removed from
the society by the Registrar:
Provided that the Registrar shall, before making an order of removal gi4 the
person an opportunity of being heard.
24. Open membership.—(1) No society of such class as may be prescribed shall,
without sufficient cause, refuse admission to membership to any person duly qualifi-
ed therefor under the provisions of this Act and its by-laws.
(2) Any person aggrieved by the decision of a society, refusing him admission to its membership, may appeal to the Registrar.
(3) The decision of the Registrar in appeal, shall be final.
25. Nominal, associate and sympathiser member.—(1) Notwithstanding anything
contained in section 22, a society of such class as may be prescribed may admit
any person as a nominal, associate, or sympathiser member:
Provided that the total number of associate and sympathiser members in a
society shall not exceed ten per cent. of the total number of members thereof.
(2) A nominal, associate or sympathiser member shall not be entitled to any
share, in any form whatsoever, in. the assets or profits of the society. Subject to
the provisions of sub-section (.6) of section 28 a nominal, associate or sympathiser
member shall have such privileges and rights of a member and be subject to such
liabilities of a member, as may be specified in the by-laws of the society.
26. Cessation of membership.—A person shall cease to be a member of a society
on his resignation from the membership thereof being tendered in writing to the
society and accepted by the society or on the transfer of the whole of his share or
interest in the society to another member, or on his death, or removal or expul-
sion from the society:
Provided that, the resignation of a person from the membership of a society,
if such member is not in debt to the society or is not a surety for an unpaid debt
due to the society; shall unless it is accepted earlier be deemed to have been
accepted on the expiry of one month from the date of his tendering his resignation
in writing to the society.
CHAPTER III.
MEMBERS AND more RIGHTS ANo LIABILITIES.
er.-(l) Subject to the provisions of section
22. Person who may become memb
.memher of a society except the following.
'25, no person shall be admitted as a
:ihat is to say——
(a) an individual, who is competent to contract under the Indian Contract
Act, 1572.~—IX of 1872.
(b) a firm, company, association or a society registered under the Societies
Registration Act, ESQ—XXI of 1860.
(c) a society registered, or deemed to be registered, under this Act,
(7d) the Central Government:
Provided that, the provisions of clause (a) shall not apply to an individual
seeking admission to a society exclusively formed for the benefit of students of a
school or college:
Provided further that subject to such terms and conditions as may be laid down
by general or special order a firm or a company may be admitted as a member
.only of such society as may be prescribed.
on as a member of a society, the decision
(2) Where a person is refused admissi
0 him within fifteen days
refusing admission shall be communicated by the society t
of the date of the decision.
23. Removal from membership in certain circumstances—(l) Where a person
becomes a member of any society on his making a declaration as required by the
bylaws of the society or otherwise and such declaration is found to be false, then
such person shall be disqualified to continue as a member of the society.
(2) Where a person continues as the member of a society notwithstanding the
disqualification incurred by him under sub-section (1), he shall be removed from
the society by the Registrar: ,
Provided that the Registrar shall, before making, an order of removal giv‘gthe
person an opportunity of being heard,
—(l) No society of such Class as may be prescribed shall,
without sudicierit cause. refuse admission to membership to any person duly qualifi—
ed therefor under the provisions of this Act and its by-lawsi
(2) Any person aggrieved by the decision of a society, refusing him admission
'to its membership, may appeal to the Registrar.
(3) The decision of the Registrar in appeal, shall be final.
25. Nominal, associate undermpathiser murmur—(1) Notwithstanding anything
contained in section 22, a society of such class as may be prescribed may admit
any person as a nominal, associate, or sympathiser member:
Provided that the total number of associate and sympathise: members in a
society shall not exceed ten per cent. of the total number of members thereon
mpathiser member shall not be entitled to any
assets or prelim of the society. Subjett to
al. associate or sympathiser
and be subject to such
24‘ Open membership
(2) A nominal, associate or sy
share, in any form whatsoever, in the
the provisions of sub-section (6) of section 28 a nomin
member hell have such privileges and rights oi a mom
5 of a member. as may be specified in the by—l
liabilit
26. Cessation of 'oieinbersliip—A person shall ca- se to be a member of a society
on ‘3 resignation from the membership thereof ‘0 ing tendered in writing to the
society said accept Ll by the socictv or on the transfer of the whole of his are or
interest in the ‘0: ow to another member, or on his death, or removal 0 expul—
sion from the :
eration of a person from the membership of a society.
fl not a su cry for an unpaid debt
be do neat to have he n
.einie X his resign
THE GAZETTEIOF INDIA EXTRAORDINARY [PART II~
, e V‘
of the society, ,x‘,
V.
Src. 3 (ii)] THE GAZETTE OF INDIA EXTRAORDINARY
169
27. No rights of membership to be exercised till due payments are made.—
No- person shall exercise the rights of a member of a society, until he has made
such payment to the society in respect of membership, or acquired such interest
in the society, as may be prescribed by the rules, or The by-laws of such society.
28. Voting powers of members.--(1) No member of any society shall have
more than one vote in its affairs:
Provided that, in the case of an equality of votes the chairman shall have a
=casting vote.
(2) Where a share of a society is held jointly by more than one person, only
the person whose name stands first in the share certificate. shall have the right
to vote.
(3) A society, which has invested any part of its funds in the shares of another
society, may appoint one of its members to vote on its behalf in the affairs of
the other society, and accordingly such member shall have the right to so vote.
(4) A company which has invested any part of its funds in the shares of a
society, may appoint one of its directors or officers to vote on its behalf in the
affairs of such society, and accordingly he shall have the right to so vote.
(5) Where a firm has invested any part of its funds in the shares of a society
any one of its partners shall be entitled to vote in. the affairs of the society on behalf of the firm.
(6) A nominal, associate, or sympathiser member of a society shall have the
right of vote if such right is conferred on him Ey the bye-laws.
(7) The voting rights of members of a federal society shall be regulated by
the rules, and by the by-laws of the society.
29. Restrictions of holding on, shares.—In any society, no member other than
the Central Government or a society, shall hold more than such portion not
oxceeding one fifth of the total share capital of the society as may be prescribed:
Provided that the Administrator may, by notification in the Official Gazette,
specify in respect of any class of societies a higher maximum than one-fifth of
the share capital.
30. Restrictions on transfer of share or interest.—(1) Subject to the provisions
of section 29 and sub-section (2) a transfer of, or charge 'on, the share or interest
of a member in the capital of a society shall be subject to such conditions as
may be prescribed.
(2) A member shall not transfer any share held by him, or his interest in
the capital or property of any society, or any part thereof, unless—
(a) he has held such share or interest for not less than one year;
(b) the transfer or charge is made to the society, or to a member of the
society, or to a person whose application for membership has been
accepted by the society; and
(c) the committee has approved such transfer.
31. Transfer of interest on death of member.—(1) On the death of a member
of a'society the society, shall subject to the provisions of sub-section (2) transfer
his share or interest in the society to a person or persons nominated by such
member in accordance with the rules or, in the absence of such nomination to
.such person as may appear to the Committee to be the heir or legal representa-tive of such member.
(2) No such transfer shall be made unless such nominee,
representative, as the case may be, is duly admitted as a member
(3) Notwithstanding anything contained in sub-section (2), any
heir or legal representative, as the case may be, may require the
to him the value of the share or interest of the deceased member,
prescribed.
(4) A society may pay all other moneys due to the deceased member from
the society to such nominee, heir or legal representative, as the case may be.
heir or legal
of the society.
such nominee,
society to pay
ascertained as
5w? ’
Sect 3(ii)] THE GAZETTE OF INDIA EXTRAORDINARY [69
27. No rights of membership to be exercised till due payments are made.—
No person shall exercise the rights of a member of a society, until he has made
such payment to the society in respect of membership. or acquired such interest
in the society, as may be prescribed by the rules, or the by<laws of such society.
2%. Voting powers of members—(l) No member of any society shall have
more than one vote in its affairs:
Provided that, in the case of an equality of votes the chairman shall have a
casting vote, ,
(2) Where a share of a society is held jointly by more than one person, only
the person whose name stands first in the share certificate. shall have the right
to vote.
33) A society, which has invested any part of its funds in the shares of another
society, may appoint one of its members to vote on its behalf in the affairs of
the other soc1ety, and accordingly such member shall have the right to so vote.
(4) A company which has invested any port of its funds in the shares of a
society, may appoint one of its directors or officers to vote on its behalf in the
affairs of such society, and accordingly he shall have the right to so vote.
(5) Where a firm has invested any part of its funds in the shares of a society
any one of its partners shall be entitled to vote in the affairs of the society on
behalf of the firm.
(6) A nominal, associate, or sympathiser member of a society shall have the
right of vote it such right is conferred on him by the bye-laws
) The voting rights of members of a federal society shall be regulated by
the rules, and by the by-laws of the society.
29‘ Restrictions of holding on shal'es.~ln any society, no member other than
the Central Government or a society, shall hold more than such portion not
leCéeding one fifth of the total share capital of the society as may be prescribed:
Provided that the Administrator may, by notification in the Official Gazette.
specify in respect of any class of societies a higher maximum than one-fifth of
the share capital.
30 Restrictions on transfer 01 share or interestfifl) Subject to the provisions
of section 29 and sub—section (2) a transfer oil or charge‘on, the share or interest
of a member in the capital of a society shall be subject to such conditions as
may be prescribed
(2) A member shall not transfer any share held by him, or his interest in
the capital or property of any society, or any part thereof, unless——
(a) he has held such share or interest for not less than one year;
(b) the transfer or charge is made to the society, or to a member of the
society, or to a person whose application for membership has been
accepted by the society; and
(c) the committee has approved such transfer,
31. Transfer of interest on death of )nEnIUOL—(l) On the death of a member
of a society the society, shall subject to the provisions of sub-section (2) transfer
his share or interest in the society to .1 person or persons nominated by such
member in accordance with the rules or, in the absence of such nomination to
such person as may appear to the Committee to he the heir or legal representa-
tive of such member. '
shrill oi,- mule unlos' such nominee, hair or legal
c ma, he, 3 ilLil'." admitted as a member oi the society
in sub-section (:l), any such nominee,
may rcqquc tl e so iety to pay
i th, deceased member, a rtained as
heir or leg“ 1,11L u!
to him th: Value at th
prescribed.
one to the deceased member from
iaLive, us the case may be,
H) A So’ieLN may pay oil
the society Lo such naminve, 5m
THE GAZETTE OF INDIA EXTRAORDINARY [PART rr
(5) AlI transfers and payments duly made by a society in accordance with the provisions of this section,' shall be valid and effectual against any demand
made upon the society by any other person.
(6) (a) Nothing in the foregoing provisions of this section or section 22 shall_ be construed to prevent a minor or a person of unsound mind from acquiring
by inheritance or otherwise, any share or interest of a deceased. member of a
society, but his liability in consequence of such acquisition shall be limited to his
interest in the shares of the society and the unpaid dividends as also the loan,.
stock, bonds, if any, and the interest earned on them which is unpaid and he
not have the right of voting.
(b) A person under any such disability as is referred to in clause (a) shall,.
on his disability ceasing, furnish to the society a declaration of his willingness
to become a member. On receipt of such declaration the society, notwithstanding,
anything contained in this section may, and if it is a cooperative housing society
such society shall admit him as a member if he is not otherwise disqualified. A
person so admitted shall become entitled to. all the rights and privileges of a
member and become subject to liabilities like any other member of the society. •
32. Share or interest not liable to attachment—The share or interest of a
member in the capital of a society, or in the loan-stock issued by a housing
society, or in the funds raised by a society from its members by way of savings
deposits shall not be liable to attachment or 'sale under any decree or order of a
Court for or in respect of any debt or liability incurred by the member; and
accordingly, neither a Receiver under the Provincial Insolvency Act, 1920 (V of
1920), nor any such person or authority under any corresponding law for the
time being in force, shall be entitled to or have any claim on such share or
interest.
33. Rights of members to see books, etc.—(1) Every member of a society shalt
be entitled to inspect, free of cost, at the society's office during office hours, or
any time fixed for the purpose by the society, a copy of the Act, the rules, and
the by-laws, the last audited annual balance sheet, the profit and loss account, a.
list of the members of the committee, a register of members) the minutes ,of
general meetings, and those portions of the books and. records in which his tilts-
actions with the society have been recorded.
(2) A society shall furnish to a member, on request in writing and on pay-
ment of such fees as may be prescribed therefor, a copy of any of the documents
mentioned in sub-section (1).
34. Liability of person who has ceased to be member.—(1)' Where a person
has ceased to be a member of a society under seat-fon- 26,
(a) his liability in respect of any debt due by him to the society and in respect of any outstanding demand owing to the society by him shall
continue as' if he had not ceased to be a member;
(b) his liability for the debts of the society as. they stood' immediately before the date of such cessation shall, save as otherwise provided
in sub-section (2), continue for a period' of three years from such
date as if he had not ceased to be a member:.
Provided that the liability shall attach to the estate of such person, if such
cessation was clue to his death or such person dies after his- ceasing: to be a
member.
(2) Where a society is ordered to be wound up under any provisions of this'
Act, then the liability under clause .(b) of sub-section (1) of a person who has*„.'
ceased to be a member thereof within three years immediately preceding the date •
of the order of winding up, shall continue, until the entire liquidation proceedings
are completed.
35. Insolvency of members.—Notwithstanding anything contained in the Pro-
vincial Insolvency Act, 1920, V of 1920, or any corresponding law for the time
being in force, the dues of a society from a member, in insolvency proceedings
egainst him, shall rank in order of priority next to his dues; to Government or
to a local authority.
36. Expulsion of members.—(1) A society may, by resolution passed by'
three-fourths majority of all the members present and. voting at as general,
(5) All transfers and payments duly made by a society in‘accordance with
the provisions of this section, shall be valid and effectual against any demand.
made upon the society by any other person.
(6) (a) Nothing in the foregoing provisions of this section or section 22 shall
be construed to prevent a minor or a person of unsound mind from acquiring
by inheritance or otherwise, any share or interest of a deceased member of a.
society, but his liability in consequence of such acquisition shall be limited to his
interest in the shares of the society and the unpaid dividends as also the loan,
stock, bonds. if any, and the interest earned on them which is unpaid and he
shall not have the right of voting.
(b) A person under any such disability as is referred to in clause (a) shall,
on his disability ceasing, furnish to the society a declaration of his willingness
to become a member. On receipt of such declaration the society, notwithstanding
anything contained in this section may, and if it is a cooperative housing society
such society shall admit him as a member if he is not otherwise disqualified. A
person so admitted shall become entitled to all the rights and privileges of a
member and become subject to liabilities like any other member of the society. ‘
32. Share or interest not liable to attachment.—The share or interest of a.-
member in the capital of a society, or in the loan-stock issued by a housing
society, or in the funds raised by a society from its members by way of savings
deposits shall not be liable to attachment or sale under any decree or order of a,
Court for or in respect of any debt or liability incurred by the member; and
accordingly, neither a Receiver under the Provincial Insolvency Act. 1920 (V of
1920), nor any such person or authority under any corresponding law for the
time being in force, shall be entitled to or have any claim on such share or
interest.
33. Rights of members to see books, eta—(1) Every member of a society shall
be entitled to inspect, free of cost. at the society’s office during oflice hours, or
any time fixed for the purpose by the society, a copy of the Act, the rules, and
the by-laws, the last audited annual balance sheet, the profit and loss account, a
list of the members of the committee, a register of members, the minutes of
general meetings. and those portions of the books and records in which his trains»
actions with the society have been recorded"; '
(2) A society shall furnish to a_ member. on request in writing and on pay-
ment of such fees as may be prescribed therefor, a copy of any of the documents
mentioned in sub-section (Dr
34. Liability of person who has ceased to he, ineglierr—(l) Where a person
has ceased to be a member of a society under section 26.
(a) his liability in respect of any debt due by him to the society and in
respect of any outstanding demand owing to the society by him shall
continue as if he had not ceased to be a member;
(b) his liability for the debts of the society as they stocd immediately
before the date of such cessation shall, save as otherwise provided
in sub-section (2), continue for a period‘ of three years from such
date as if he had not ceased to he a member:
Provided that the liability shall attach to the estate of such person. if such,
cessation was due to his death or such person dics alter his ceasing to be a
member.
(2) Where a society is ordered to bc wound up under any provisions of this
Act, then the liability under clause (b) oi‘ sub-section (1) of a person who has“
ceased to be a member thereof within three years immediately preceding the date
of the order of winding up, shall continue, until the entire liquidation proccadings
are completed.
35. insolvency of members—Nowithstanding anything contained in the Pro-
vincial insolvency Act. 1920. V of 1920, or any cor "sending law for the time
' , the dues of a society from a member. n insolvency proceedings
against him. iall rank in order of priority ncxt to his dues to Government or
‘le a local .ithority.
. re: lotion passed 1)."
and voting at a general.
THE GAZETTEIOI‘ INDIA EXTRAORDlNARY LPART 1T— “1‘
v
a••
SEc. 3 (ii)] THE GAZETTE OF INDIA EXTRAORDINARY
meeting of members held for the purpose, expel a member for acts which are
detrimental to the proper working of the society:
Provided that, no resolution shall be valid, unless the member concerned is
given an opportunity of representing his case to the general body, and no resolu-
tion shall be effective unless it is submitted to the Registrar for his approval and.
approved by him:
Provided further, that the approval or disapproval of the Registrar shall be
'communicated to the society within a period of three months from the date of such
submission, and in the absence of such communication the resolution shall be
'effective.
(2) No member of a society who has been expelled under sub-section (1) shall
be eligible for re-admisdion as a member of that society, or for admission as a
member of any other society, for a period of two years from the date of such
expulsion:
Provided that. the Registrar may, in special circumstances, sanction the re-
admission or admission, within the said period, of any such member as a member
of the said society or of any other society, as the case may be.
CHAPTER IV
INCORPORATION, DUTIES AND PRIVILEGES or SOCIETIES.
37. Societies to be bodies corporate.—A society on its registration shall be a
body corporate by the name under which it is registered, with perpetual
succession and a common seal. and with power to acquire, hold and dispose of
property, to enter into contracts, to institute and defend suits and other legal
proceedings, and to do all such things as are necessary for the purpose for which
it is constituted.
Address of societies.—Every society shall have an address, registered in
a. zordance with the rules, to which all notices and communications may be sent;
and the society shall send notice in writing to the Registrar of any change in the
said address, within thirty clays thereof.
39. Register of members.—(1) Every society shall keep a register of its
members, and enter therein the following particulars, that is to say,—
(a) the name, address and occupation of each member;
(b) in the case of a society having share capital, the share held by each
member:
.(c) the date on which each person was admitted a member;
(d) the date on which any person ceased to be a member; and
(e) such other particular as may be prescribed:
Provided that, where a society has by or under this Act, permitted a member
to transfer his share or interest on death to any person, the register shall also show
against the member concerned the name of the person entitle to the share or
interest of the member, and the date on which the nomination was recorded.
(2) The register shall be prima facie evidence of the date on which any person
'.was admitted to membership, and of the date on which he ceased to be a member.
40. Copy of an Act, etc., to be open to inspection.—Every society shall keep, at
the registered address of the society, a copy of this Act and the rules and of its
by-laws, and a list of members., open to inspection to the public, free of charge,
during of hours or any hours fixed by the society therefor.
41. Admissibility of copy of entry as evidence.—(1) A copy of any entry in
any book, register or list, regularly kept in the course of business and in the pos-
session' of a society shall, if duly certified in such manner as may be prescribed,
be admissible in evidence of the existence of the entry, and shall be admitted as
evidence of the matters and transactions therein recorded in every case where, and
to the same extent to which, the original entry would, if produced, have been
admissible to prove such matters.
: ‘3
Sec. 3(ii)] THE GAZETTE OF INDIA EXTRAORDINARY qkll) [71
meeting of members held for the purpose, expel a member for acts which are
detrimental to the proper working of the society:
Provided that, no resolution shall be valid, unless the member concerned is
given an opportunity of representing his case to the general body,_and no resolu»
'tion shall be effective unless it is submitted to the Registrar lot 1115 approval and
approved by him:
Provided further, that the approval or disapproval of the Registrar shall be
communicated to the society within a period of three months from the date at such
submission, and in the absence of such communication the resolution shall be
effective. .
(2) No member of a society who has been expelled under subvsection (I) shall
be eligible for re-admission as a member of that society, or for admission as a
member of any other society, for a period of [WC years from the date or Such
expulsion:
Provided that. the Registrar may, ‘in special circumstances, sanction the re—
admisston or admission, Within the said period, of any such member as a member
of the sold society or of any other society, as the case may be.
CHAPTER IV
INCORPORATION, DUTIES AND Parvrmens or SOCIETIES.
37. Societies to be bodies corporate—A society on its registration shall be a
body corporate by the name under which it is registered. with perpetual
succession and a common seal, and with power to acquire, hold and dispose of
property, to enter into contracts, to institute and defend suits and other legal
proceedings, and to do all such things as are necessary for the purpose for which
it is constituted.
_ .38. Address of societies—Every society shall have an address, registered in
a, :orclance with the rules, to which all notices and communications may be sent;
and the society shall send notice in writing to the Registrar oi any change in the
said address, within thirty days thereof.
39. Register of membersgu) Every society shall keep a register of its
members, and enter therein the following particulars, that is to say.—
(a) the name, address and occupation of each member;
(b) in the case of a society having share capital, the share held by each
member:
to) the date on which each person was admitted a member;
(d) the date on which any person ceased to be a member; and
(e) such other particular as may be prescribed:
Provided that, where a society has by or under this Act, permitted a member
to transfer his share or interest on death to any person, the register shall also show
against the member concerned the name of the person entitle to the share or
interest of the member. and the (tale on which the nomination was recorded.
K
w as
‘7) The register shall he piimu t'llr'in evidence of the date or: which (my [ermn
rimit‘tcd to membership, and of the date on which he ceased to be a member.
{Oi Copy of an Act, etc, to be open to inspectio. 1y shall keep, at
\urutl udtlru of the society, 21 Cupy of (it rules and of its
. and u l ' m illlth, upon to tion to Lh public, her: of chltlge,
ng on“: Iznths ! ‘ l: niely lbcreior.
J
Y
cvitlL‘nL'c l) A copy ul‘ ‘
t m the cot nf bus-int
ti in sit-sh l JIIHLI‘ t 1
LLICU of the entry, and
uns therein 1' orded in t cry c
«H. Admissib entry in
. a .
utliiiissl‘ole in
(WZIVE 111' the m
to the some extent to .
Adm Div to prove nurh mat Us.
THE GAZETTE OF INDIA EXTRAORDINARY [PART II— .It
(2) In the case of such societies, as the Administrator may by general or 'special
order direct, no officer of a society shall in any legal proceedings to which- the
society is not a party, be compelled to produce any of the society's books the con-
tents of which can be proved, under sub-section (1) or to appear as a witness to
prove the matters, transactions and accounts therein recorded, except by order of
the Court or a Judge made for special cause.
42. Exemption from Compulsory registration of instruments relating to shares
and debentures of society.—Nothing in clauses (b) and (c) of sub-section (1) of
section 17 of the Indian. Registration Act, 1908, XVI of 1908, shall apply—
(a) to any instrument relating to shares in a society, notwithstanding that the
assets of the society consist in whole or in part of immovable property; or
(b) to any debenture issued by any society and not creating, declaring, assign-
ing, limiting or extinguishing any right, title or interest to or in immovable pro-
perty, except in so far as it entitles the holder to the security afforded by a regis-
tered instrument whereby the society has mortgaged, conveyed or otherwise trans-
ferred the whole or part of its immovable property, or any interest therein to•
trustees upon trust for the benefit of the holders of such debentures; or
(c) to any endorsement upon, or transfer of, any debenture issued by any
society.
43. Power to exempt from taxation.—The Central Government, by notification
in the Official Gazette may, in the case of any society or class of societies, remit—
(a) the stamp duty with which, under any law relating to stamp duty for the
time being in force, instruments executed by or on behalf of a society or by an
officer or member thereof, and relating to the business of the society, or any class
of such instruments, or awards of the Registrar or his nominee or board of nomi-
nees under this Act, are respectively chargeable,
(b) any fee payable by or on behalf of a society under the law relating toVie.,
registration of documents and to court-fees, for the time being in force, and
(c) any other tax or fee or duty (or any portion thereof) payable by or on
behalf o_ a society under any law for the time being in force,
which the Central Government is competent to levy.
44. Restriction on borrowings.—A society shall receive deposits and loans from
members and other persons, only td such extent, and under such conditions. as may
be prescribed, or specified by the by-laws of the society.
45. Restrictions on making loans.—(1) No society shall make a loan to any
person other than a member, or on the security of its own shares, or on the:
security of any person who is not a member:
Provided that, with the special sanction of the Registrar, a society may make
loans to another society.
(2) Notwithstanding anything contained in sub-section (1) a society may inake:
a loan to a depositor on the security of his deposit.
46. Restrictions on other transactions with non-inembers.—Save as is provided:
in this Act, the transactions of society with persons other than members, shall be:
subject to such restrictions, if any, as may be prescribed.
47. Charge and set off in. respect of share or interest of member.—In respect of
any debt to a society by any member thereof, the society shall have a charge upon
the share or interest of such member in the capital of the society, upon the deposits.
of such member with the society and upon any dividend, rebate or profits payable-
to such member; and the society may set off any sum credited or payable to such.
member in or towards the payment of any such debt:
Provided that, no co-operative bank shall have a charge upon any sum invest-
ed with it by a society out of the provident fund established by it under section,
72, and no co-operative bank shall be entitled to set off any such sum towards any
debts due from the society.
x" \
{KO
[7 ‘ THE GAZETTE OF INDIA E TRAORDINARY [PARI‘ Ha
(Z) In the case of such societies, as the Administrator may by general or special
order direct, no officer of a society shall in any legal proceedings to which the
socxety is not a party, be compelled to roduce any of the society’s books the con—
tents of which can be proved under su -section (1) or to appear as a Witness to
prove the matters, transactions and accounts therein recorded, except by order of
the Court or a Judge made for special cause.
42. Exemption from Compulsory registration of instruments relating to shares
and debentures of societyiNotl-iing in clauses (b) and (c) of sub-section (1) of
section 17 ot' the Indian Registration Act, 1908. XVI of 1908, shall app1y~
(a) to any instrument relating to shares in a society, notwithstanding that the
assets of the society consist in whole or in part of immovable property; or
(b) to any debenture issued by any society and not creating, declaring, assign-
ing, limiting or extinguishing any right, title or interest to or in immovable pro-
perty, except in so far as it entitles the holder to the security afforded by a regis—
tered instrument whereby the society has mortgaged, conveyed or otherwise trans—
ferred the whole or part of its immovable property, or any interest therein to-
trustees upon trust for the benefit of the holders of such debentures; or
(c) to any endorsement upon, or transfer of, any debenture issued by any
society.
43. Power to exempt from taxation—The Central Government, by notification
in the Official Gazette may, in the case of any society or class of societies, remit—
(a) the stamp duty with which, under any law relating to stamp duty for the
time being in force, instruments executed by or on behalf of a society or by an
officer or member thereof, and relating to the business of the society, or any class
of such instruments, or awards of the Registrar or his nominee or board of nomi-
nees under this Act, are respectively chargeable.
(to) any fee payable by or on behalf of a society under the law relating to the
registration of documents and to court~fees, for the time being in force, and it
(c) any other tax or fee or duty (or any portion thereof) payable by or on
behalf o:‘ a society under any law for the time being in force.
which the Central Government is competent to levy.
44. Restriction on borrowings—~A society shall receive deposits and loans from
members and other persons, only to such extent, and under such conditions. as may
be prescribed, or specified by the by-laws of the socrety.
45, Restrictions on making loaneru) No society shall make a loan to any
person other than a member, or on the security of its own shares, or on the-
security of any person who is not a member:
Provided that, with the special sanction of the Registrar, a society may make
loans to another society. .
(2) Notwithstanding anything contained in sub
a loan to a depositor on the security of his deposit.
section (1) a society may make
46, Restrictions on other transactions with non-members—Save as is provided
in this Act, the transaction _of society with persons other than members. shall be
subject to such rest ictions, ii‘ any. as may be prescribed.
47, Charge and set off in respect of share or interest of meridian—in respect of
any debt to =uciety by MT, member thereof, the society shall have a charge upon
e1 E‘<l 01 , nbcr in the capital of the society. upon the deposits
ich member ' ' and upon any dividend, rebate or profits payable
to such member ' may set Off any stun credited or payable to such
member in or towards all: iyrzicnt or any such debt:
Provided that no coma: lve bank shall have 3 ch 9 upon anv sum invest-
ed With it by a society out o the proud 1: fund c tab? ed 1)" it under cum:
and no ownerfliu’c bunk shall be entitled to set 0 e 3.1 y such sum towel 5 any
at: clue L031] the moiety.
.A
3 (ii)] THE GAZETTE OF INDIA EXTRAORDINARY
48. Prior claim of. society.—(1) Notwithstanding anything contained in any-
other law for the time being in force, but subject to any prior claim of Govern-
ment in respect of land revenue or any money recoverable as land revenue and to
the provisions of section 60 and 61 of the Code of Civil Procedure, 1908,—
(a) V of 1908.—any debt or outstanding demand, owing to a society by any
member or a person who has ceased to be a member shall be a first charge upon--
(i) the crops or other agricultural produce raised in whole or in part whether
with or without a loan taken from the society by him,
(ii) cattle, fodder for cattle, agricultural or industrial implements or machine-
ry, or raw materials for manufacture, or workshop, godown or place of business,
supplied to, or purchased by him in whole or in part, from any loan whether in
money or goods made to him by the society, and
(iii) any movable property which may have been hypothecated, pledged or
otherwise mortgaged by him with the society, and remaining in his custody;
(b) any outstanding demands or dues payable to a society by any member or
a person who has ceased to be a member, in respect of rent, shares, loans or pur-
ch.ase money or any other rights or amounts payable to such society, shall be a.
first charge upon his interest in the immovable property of the society:
Provided that the prior claim of Government in respect of dues other than land
revenue, shall be restricted for the purpose of this sub-section to the assets created
by a member out of the funds in respect of which the Government has a claim.
(2) No property or interest in property, which is subject to a charge under
sub-section (1) shall be transferred in any manner without the previous permis-
sion of the society; and such transfer shall be subject to such conditions, if any,,
as the society may impose.
(3). Any transfer made in contravention of sub-section (2) shall be void,
(4). Notwithstanding anything contained in sub-sections (2) and (3), a society,
which has as one of its objects, the disposal of the produce of its members, may
provide in its by-laws, or may otherwise contract with its members,—
(a) that every such member shall dispose of his produce through the society,
and
(b) that any member, who is found guilty of a breach of the by-law or of any'
such contract, shall reimburse the society for any resultant loss, determined int
such manner as may be specified in the by-laws.
49. Charge on immovable property of members borrowing from certain..
societies.—(1) Notwithstanding anything contained in this Act or in any other-
law for the time being in force,—
(a) any person who makes an application to a society of which he is a member;
for a loan shall, if he owns any land or has interest in any land as a tenant, make
a declaration in the prescribed form. Such declaration shall state that the appli-
cant thereby creates a charge on such land or interest specified in the declaration
for the payment of the amount of the loan which the society may make to the
member in pursuance of the application, and for all future advances, if any, re-
quired by him which the society may make to him as such member, subject to
such maximum as may be determined by the society, together with interest on
such amount of the loan and advances;
(b) any person who has taken a loan from a society of which he is a member,
before the date of the coming into force of this Act, and who owns any land or
has interest in land as a tenant, and who has not already made such a declaration
before the aforesaid date shall, as soon as possible thereafter, make a declaration
in the form and to the effect referred to in clause (a); and no such person shall,
unless and until he has made such declaration, be entitled to exercise any right
as a member of the society;
(c) A declaration made under clause (a) or (b) may be varied at any time by-
a member, with the consent of the society in favour of which such charge is creat-
ed;
48. Prior claim of snoiety.—(1) Notwithstanding anything contained in any
othe1 law for the time being in force but subject to any prior claim of Govern—
ment in respect of land 1evenue or any money recoverable as land revenue and to
the provisions of section 60 and 61 of the Code of Civil Procedure, 1908,—
(a) V of 1908.-any debt or outstanding demand, owing to a society by any
member or a person who has ceased to be a member shall be a first charge upon—
(1) the crops or other agricultuial produce raised in whole or in part whethel"
with or without a loan taken from the society by him|
(ii) cattle, fodder for cattle, agricultural or industrial implements or machine—
ry, or raw materials for manufacture, or workshop, godown or place of business.
supplied to, or purchased by him in whole or in part, from any loan whether in
money or goods made to him by the society, and
(iii) any movable property which may have been hypothecated, pledged or
otherwise mortgaged by him with the society, and remaining in his custody;
(b) any outstanding demands or dues payable to a society by any member or
a person who has ceased to be a member, in respect of rent, shares. loans or pur-
chase money or any other righs or amounts payable to such society, shall be a:
first charge upon his interest in the immovable property of the society:
Provided that the prior claim of Government in respect of dues other than land
revenue shall be restricted [or the purpose of this sub— section to the assets c1 eated
by a member out, Of the funds in respect of which the Government has a claim
(2) No property or interest in property. which is subject to a charge under
sub—section (1) shall he transferred in any manner without the previous permis-
sion of the society; and such transfer shall be subject to such conditions. if any,.
as the society may impose.
(3) Any transfer made in contravention of sub-section (2) shall be void,
(~11 Notw1thstandi anything contained in subsections (2) and (3), a society,
which has as one of 1 objects the disposal of the produce or its members, may
provide in its by-laws, or may otherwise contract with its members,—
(a) that every such member shall dispose of his produce through the society,
and
(b) that any member. who is found guilty of a breach of the by—law 01' of any
such contract. shall reimburse the society for any resultant loss, determined in1
such manner as may be specified in the bylaws.
49. Charge on immovable property of members borrowing from certain
societiesgul Notwithstanding anything contamed in this Act or in any other
law for the lime being in force.—
(11) any peison who makes an application to a society 01 which he is 11 111emher
iur a loan shall if he owns any land or has inte1est in any land as a tenant m :e
a declaI ,on in the piesm 1bed E01111 Such decla1ation shall state that ti pli-
cnnt themby creates a (. also on Such land or interest specified in the duclamtmn
for the payment of lhe amount of the loan which the society may make to the
membe1 in pumuancc 01' the application. and for all future advance if any, re—
g by him which the society may make to him as such memlx , ’
5w. 14 1xim11m as h be xletmmmed by the '11)c'1e1y.toecthe1 with 11
:1 lab. amount of the ln 1 and advances;
1137 any {19 ‘ 11 who 11 " loin-n .1 10'
bill the d e 01' the 1:01.1111,r 111111 l'u'
has interest in l :1 tr-nunl.
helme the at”
P1 1.1-: term :mrt tn tln
111 1'1111 until in
..> 3 1111:1nl11'r of the
1 from a society of which he ‘
e of 1.111, Act. and who owns (my lm l 01'
and who has not only mati' '
nu :15 possible thereafter. .
11'11 )iElHllfl shall,
. ilght
(cl A (it’Cl‘ll'illlnn mule urn'lrr 1,}
a member, 1‘:th the sent at the .10
ed;
174 THE GAZETTE OF INDIA EXTRAORDINARY [PAirr
(d) no no member shall alienate the whole or any part of the land or interest
therein, specified in the declaration made under clause (a) or (b) until the whole
amount borrowed by the member together with interest thereon, is repaid in full:
Provided that, it shall be lawful for a member to execute a mortgage bond in
favour of a mortgage bank or the Central Government in respect of such land or
.any part thereof, under the rules made under the. Bombay Irrigation Act, 1879
(Born. VII of 1879) or under any corresponding law for the time being in force,
'for the supply of water from a canal to such land:
Provided further that, if a part of the amount borrowed by a member is paid,
-the society may, on an application from the member, release from .the charge
created under the declaration made under clause (a) or (b) such part of the
movable or immovable property specified in the declaration as it may deem proper,
with due regard to the adequacy, of the security for the balance of the amount
remaining due from or outstanding against the member;
(e) any alienation made in contravention of the provisions of clause (d) shall
be void;
(f) subject to the prior claims of the Government in respect of land revenue
or any money recoverable as land revenue. and to the charge, if any, created under
.an award made under the Bombay Agricultural Debtors Relief Act, 1947 (Born.
"XXV of 1947) or any corresponding law for the time being in force in any part of
the State, and to any mortgages created• in favour of a land mortgage bank by its
members there shall be a first charge in favour of the society on the land or in-
terest specified in the declaration made under clause (a) or (b), for and to the
-extent of the dues owing by him on account of the loan; and
(g) the Record of Rights relating to the land shall include the particulars of
-every charge on land or interest created under a declaration under clause (a) or
,clause (b).
(2) For the purpose of this section, the expression "society" means—
(i) any society, the majority of the members of which are agriculturistr--and
'the primary object of which is to obtain credit for its members, or
(ii) any society, or society of the class of societies, specified in this behalf by
.the Administrator by a general or special order.
50. Deduction from salary to meet society's claim in certain cases.—(1) A
member of a society may execute an agreement in favour of the society, providing
that his employer shall be competent to deduct from the salary or wages payable
to him by the employer, such amount as may be specified in the agreement, and
to pay to the society the amount so deducted in satisfaction of any debt or other
'demand of the society against the member.
(2) On the execution of such agreement, the employer shall, if by a requisi-
tion in writing so required by the society and so long as the society does not
intimate that the whole of such debt or demand has been paid, make the deduc-
tion in accordance with the agreement notwithstanding, anything to the contrary
-contained in the Payment of Wages Act, 1936 (IV of 1936) and pay the arnotint so
deducted to the society, as if it were a part of the wages payable by him as required
under the said Act on the day on which he makes payment. In making such deduc-
tion and payment, it shall not be open to the employer to question the validity or
,otherwise of such debt or demand.
••
(3) If after receipt of a requisition made under sub-section (2) the employer
;at any time fails to deduct the amount specified in the requisition from the salary
'or wages payable to the member concerned, or makes default in remitting the
:amount deducted to the society, the employer shall be personally liable for the
:payment thereof; and the amount shall be recoverable on behalf of the society
from him as an arrear of land revenue on a .certificate being issued by the Regis-
trar after holding such inquiry as he deems fit, and the amount so due shall rank
in priority in respect of such liability of the employer as wages in arreas. A
certificate so issued by the Registrar shall not be questioned in any court.
() Nothing contained in this section shall apply to persons employed in any
railway (within the meaning of the Constitution), and in mines and oil fields.
'amp
•
(,7.
We
17.4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II
_¥‘__ at
((1) no member shall alienate the whole or any part of the land or interest
therein, specified in the declaration made under clause (a) or (b) until the Whole
amount borrowed by the member together with interest thereon, is repaid in full:
Provided that, it shall be lawful for a member to execute a mortgage bond in
favour of a mortgage bank or the Central Government in respect of such land or
.any part thereof, under the rules made under the Bombay Irrigation Act, 1579
(Bom. VII of 1879) or under any conesponding law for the time being in force,
*for the supply of water from a canal to such land: ’
Provided further that, if a part of the amount borrowed by a member is paid,
*the society may, on an application from the member. release from the charge
created under the declaration made under clause (a) or (b) such part of the
movable or immovable property specified in the declaration as it may deem proper,
With due regard to the adequacy, of the security for the balance of the amount
remaining due from or outstanding against the member;
‘1: (e)dany alienation made in contravention of the provisions of clause (d) shall
e vol ;
(f) subject to the prior claims of the Government in respect of land revenue
or any money recoverable as land revenue and to the charge ‘f any, created under
.an award made under the Bombay Agricultural Debtors Relief Act, 1947 (Bom.
'XXV of 1947) or any corresponding law for the time being in force in any part of
'1he State, and to any mortgages created in favour of a land mortgage bank by its
members there shall be a first charge in favour of the society on the land or in—
terest specified in the declaration made under clause (a) or (b), for and to the
extent of the dues owing by him on account of the loan; and
(g) the Record of Rights relating to the land shall include the particulars of
every charge on land or interest created under a declaration under clause (a) or
clause (1')).
(2») For 1he purpose or this section, the expression “society" means—
ti) any society, the majority of the members of which are agriculturi.
the primary object of which is to obtain credit for its members, or
(ii) any society. or society of the clas: of societies. specified in this behalf by
the Administrator by a general or syecial order.
50. Deduction from salaiy to meet society’s claim in certain casesAu) A
Jiiember of a society may execute an agreement in favour of the society, providing
that his employer shall be competent to deduct from the salary or wages payable
'to him by the employer. such amount as may be specified in the agreement, and
to pay to the society the amount so deducted in satisfaction of any debt or other
demand of the society against the member.
(2) On the execution of such agreement. the employer shall, if by a requisi—
tion in writing so required by the soci and so long as the society does not
intimate that the whole of such debt or demand has been paid. make the deduc—
tion in accordance with the agreement notwithstanding _anythmg to the contrary
contained in the Payment 01' Wages Acti lBSG (IV of 1536) and pay the amount so
deducted to the society, as if it were a part of the wages payable by him as required
under the said Act on the day on which he makes payment. In making such deduc—
[ion a ('1 payment, it shall not be open to the employer to question the validity or
other\ a of : ch debt or demand.
(3) ‘t‘ alter receipt of El requisition made under sub cctlon (Z) the ample) ei
at any t1 ‘ ' lot the amount specified in the r quisition from the salary
member concerned. or makes default in r ittzng the
'l to the society. the employ" shall bc personally liable for the
05: and the amount shall be recoverable on behalf of tlw _
w ' revenue on a "el‘iiEi'ate being issn‘d by u c l
'1“ " 1 it, the 'niouiit so one shall Inn \
cl: employer as wages in {u'l‘L‘ A
' the Registrar shall not l‘l quostmned in any court
otiou shall "“1 to lessons emol
intwm. and in minvs and l
lfioih
i'» at
anl in any
c4,
THE GAZETTE, OF INDIA EXTRAORDINARY [PART ILL. •
(2) If a society in which shares are purchased out of the Subsidiary State
Partnership Fund is wound up or dissolved, neither the Central Government nor
the Apex society shall have any claim against the Central society which purchased
the shares, in respect of any loss arising from such purchase; but the Apex society
shall be entitled to any moneys received by the Central society in liquidation pro-
ceedings or on dissolution, as the case may be, and such moneys shall be credited
to the Principal State Partnership Fund.
59. Disposal of share capital and dividend, etc.—(1) All moneys received by an.
Apex society in respect of the redemption of shares of other societies purchased
out of the Moneys in the Principal State Partnership Fund, or by way of divi-
dends or otherwise or by way of interest, dividend or otherwise on the balance off
that fund shall be credited to that Fund.
(2) All moneys received. by a Central society in respect of the redemption of
shares of Primary societies purchased out of the moneys in the Subsidiary State
Partnership Fund, or by way of dividends or otherwise or by way of interest, divi-
dend or otherwise on the balance of that fund, shall in the first instance be cre-
dited to that Fund, and then transferred to the Apex society which shall credit
them to the Principal State Partnership Fund.
(3) All moneys and dividends referred to in. sub-sections (1) and (2) shall
notwithstanding that the shares stand in the name of the Apex society or thet
Central society, as the case may be, be paid to' the Central Government.
(4) Save as provided in sub-section (3), the Central Government shall not be
entitled to any' other return on the moneys provided by it to an Apex society
under section 52.
60. Disposal of Principal or Subsidiary State Partnership Fund on winding up'
of Apex or Central society.—(1) If an Apex society which has established a Prin-
cipal State Partnership Fund is wound up or dissolved, all moneys at the credit
of, or payable to that Fund, shall be paid to the Central Government.
(2)' If a Central society which has established a Subsidiary State Partnership
Fund is wound up or dissolved, all moneys at the credit of, or payable to ,that
Fund, shall be paid and credited to the Principal State Partnership Fun:1, lrorn
which it received moneys under clause (b) or sub-section (2) of section 53.
61. Principal or Subsidiary State Partnership Fund not to form part of assets.--
Any amount at the credit of a Principal State Partnership Fund or a Subsidiary
State Partnership Fund shall not form part of the assets of the Apex society or
the Central society, as the case may be.
62. Agreement by Central Government and Apex societies.—Subject' to the
foregoing provisions of this Chapter—
(a) the Central Government may enter into an agreement with an Apex
society setting out the terms and conditions on which it shall provide
moneys to the Apex society for the purpose specified in section 52;
(b) an Apex society may, with the previous approval of the Central Gov-
ernment, enter into an agreement with a Central society, setting out
the terms and conditions on which it shall provide moneys to that
society from the Principal State Partnership Fund for the purpose
specified in clause (b) of sub-section (2) of section 53.
63. Other forms of State aid to societies.—Notwithstanding anything contained
in any law for the time being in force, but subject to such conditions as the Cen-
tral Government by general or special order may specify in this behalf, the Central
Government may,—
(a) give loans to a society;
(b) guarantee the payment of the principal of debentures issued by a
society, or of interest thereon, or both, or the repayment of the share
capital of a society to its members, or the payment of dividends
thereon at such rates as may be specified by the Central Government;
(c) guarantee the repayment of the principal of, and the payment of
interest on, means given by a Go-operative Bank to a society;
(d) guarantee 'the repayment of the principal of, and payment of interest
on, loans and advances given by the Reserve Bank of India, or the
Industrial Finance Corporation of India, or any other authority consti-
tuted under any law for the time being in force, or
(e) provide financial assistance, in any other form (including subsidies),,
to a society.
1/76 THE GAZETTE} OF INDIA EXTRAORDINARY [PART IL-
(2) Lin society in which shares are purchased out of the Subsi"
Partnership Fund is wound up or dissolved, neither the Central Gov iiment nor
the Apex somety shall have any claim against the Central society which purchased
the shares, in respect of any loss arising from such purchase; but the Apex society
shall. be entitled to any moneys received by the Central society in liquidation pre-
ceedmgs or on dissolution, as the case may be, and such moneys shall be credited
to the Principal State Partnership Fund.
59‘ Disposal of share capital and dividend, etc.—(l) All moneys received by an
Apex society in respect of the redemption of shares of other societies purchased
out of the incneys in the Principal State Partnership Fund. or by way of divi-
dends or otherwise or by way of interest. dividend or otherwise on the balance oil
that fund. shall be credited to that Fund.
(1!) A11 moneys received by a Central society in respect of the redemption of
shares of Primary societies purchased out of the moneys in the Subsidiary State
Partnership Fund, or by way of dividends or otherwise or by Way of interest, divi—
dend or otherwise on the balance of that fund. shall in the first instance be cl‘ —
dited to that Fund. and then transferred to the Apex society which shall credit
them to the Principal State Partnership Fund.
(3) All moneys and dividends referred to in sub-sections (l) and (2) shall
notwithstanding that the shares stand in the name of the Apex somety or the
Central society, as the case may be, be paid to the Central Government.
(4) Save as provided in subsection (3), the Central Goyernmem shall not be
entitled to any other return on the moneys provided by it to an Apex society
under section 52.
60. Disposal of Principal or Subsidiary State Partnership Fund on winding up’
of Apex or Central amidst—(1) If an Apex society which has established a Prin—
cipal State Partnership Fund is woundiip or dissolved. all moneys at the credit
of, or payable to that Fund, shall be paid to the Central Government.
(2) If a Central society Which has established a Subsidiary State Partnership
Fund is wound up or dissolved, all moneys at the credit of. or payable to ,that
Fund. shall be paid and credited to the Principal State Partnership F|1n£,;l’0m
which it received moneys under clause (b) or sub—section (2) or" section 53.
61, Principal or Subsidiary State Partnership Fund not to farm part of assets..—
Any amount at the credit of a Principal State Partnership Fund or a Subsidiary
State Partnership Fluid shall not form part of the asets of the Apex society or
the Central society, as the case may be.
62. Agreement by Central Government and Apex societies—Subject to the
foregoing provisions of this Chapter—
(a) the Central Government may enter into an agreement with an Apex
society setting out the terms and conditions on which it shall provide
moneys to the Apex society for the purpose specified in section 52;
(b) an Apex society may, with the previous approval of the Central Gov-
ernment, enter into an agreement with a Central so“ ty, setting out
the terms and conditions on which it shall provide moneys to that
society from the Principal State Partnership Fund for the purpose
stpccified in clause (b) at sub-section (2) of section 53.
63. Other forms of State aid to societiesiNotwithstanding anything contained
in any law [or the lee helm: in to} but subject to such conditions as the Cen-
tral Government by general or spa order may specify in th‘lS behalf, the Central
Government may,—
(.1) give loans to a society;
(b) guarantee the payment at the principal of deb
ty. or of interest the n or both, 01‘
:11 nt’ :1 nor -
‘ wilt!“ of int: est.
, b 11 ur' ' . or t
ylnrotmn of India, or an HL'L w dutiinriti' cons -
for the time hr." in force, or
site, in any other form (including subsidies)
to) provide financial m
to a society.
'Ise. 3 (ii)1 THE GAZETTE OF INDIA EXTRAORDINARY
•
CHAPTER V
STATE AID TO SOCITTIES
51. Direct partnership of Central Government in societies.—The Central
Government may subscribe directly to the share capital of a society with limited
liability.
52. indirect partnership of Central Government in societies.—The Central
Government may, under appropriation made by law, provide moneys to a society
For the purchase directly or indirectly,, of shares in other societies with limited
liability. A society to which moneys a,re so provided for the aforesaid purpose is
hereinafter in this Act referred to as/an "Apex society",
• 53. Principal State Partnership Fund.—(1) An Apex society shall, with the
moneys provided under section 52 establish a Fund to be called the "Principal
State Partnership Fund".
•
(2) An Apex society shall utilise the Principal State Partnership Fund for the
purpose of—
(a) directly purchasing shares in other societies with limited liability;
(b) providing moneys to a society to enable that society (hereinafter in this
Chapter referred to as a "Central society") to purchase shares in other
societies with limited liability (the latter societies being hereinafter
in this Chapter 'referred to as "Primary Societies");
(c) making payments to the Central Government in accordance with the
provisions of this Chapter; •
and for no other purpose.
54. Subsidiary State Partnership Fund.—(l) A Central society which is pro-
videdawith moneys by an Apex society from the Principal State- Partnership Fund
shalLwith such moneys establish a Fund to be called the "Subsidiary State Part-
nersHio Fund".
(2.) A Central society shall utilise the Subsidiary State Partnership Fund for
the purpose of •
(a) purchasing shares in primary societies;
(b) making payments to the Apex society in accordance with the provisions
of this Chapter;
and for no other purpose.
55. Approval of Central Government for purchase of. shares.—Shares shall not
the purchased in a society from the moneys in the Principal State Partnership
Fund or the Subsidiary State Partnership Fund,. except with the previous
approval of the Central Government.
56. Liability to be limited in respect of certain shares.—Where any shares are
purchased in a society by—
(a) the Central Government, or
(b) an Apex society from the Principal State Partnership Fund, or a Cen-
tral society from the Subsidiary State Partnership Fund, as the case
may be,
then in the event of the winding up of such society the liability in respect of such
it shall be limited to the amount paid in respect of such shares.
57. Restriction on amount of dividend.—An Apex society which has purchased
shares in other societies from the moneys in the Principal State Partnership Fund,
and a Central society which has purchased shares in Primary societies from the
moneys in the Subsidiary State Partnership Fund, shall be entitled only to such
dividend on the said shares as is declared by the society concerned and is payable
to other shareholders of that society
53. Indemnity of Apex and Central Societies.—(1) If a society in which shares
are purchased out of the Principal State Partnership Fund. is wound up or dissolv-
ed, the Central Government shall not have any claim against the Apex society
which purchased the shares in respect of any loss arising from such purchase; but
the Central Go-eernment shall be entitled to any moneys received by the Apex
:society in liquidation proceedings or on dissolution, as the case may be.
“V
THE GAZETTE OF INDIA EXTKKORDINARY
STATE Am TO SOCEE’I‘IES
51. Direct partner-shin of Central Government in societies—The Central
Gogei'nment may subscribe directly to the share capital of a society with limited
lia i iiy.
52. Indirect partnership of Central Government in societies—The Central
nment may= under appropriation made by law. provide moneys to a society
c purchase directly or indirectly. at e. n other societies with limited
A society lo which moneys are l. provided for the aforesaid purpose is
nartcr in this Act referred to 25,2111 “Ape: society"
53. Principal State Partnership Farah—(1) An Apex society shell, with the
9 provided under section 52 establish a Fund to be called the “Principal
Partnership Fund”.
(2"; An Apex society shall utilise the Principal State Partnership Fund for the
.90—
(a) directly purchasing shares in other societies with limited liability;
5h) providing moneys to a society to enable that society (hereinafter in this
Chapter referred to as a “Central society") to purchase shares in other
societies with limited liability (the latter societies being hereinafter
in this Chapter referred to as “Primary Societies");
(c) making payments to the Central Government in accordance with the
provisions of this Chapter:
and fine no other purpose
_ 54. Subsidiary State Partneiship Fund.~( l) A Central society which is pro-
with moneys by an Apex society from the Princioel State Partnership Fund
with such moneys establish a Fund to be called the “Subsidiary State Part—
r A Central society shall utilise the Subsidiary State Partnership Fund for
the purpose of
(a) purchasing shares in primary societies;
(is) making payments to the Apex society in accordance with the provisions
of this Chapter;
and for no other purpose.
55‘ Approval of Central Government for purchase of shares.——Shares shall not
Joe purchased in a society from the moneys in the Principal State Partnership
Fund or the Subsidiary State Partnership Fund, except with the previous
approval of the Central Government.
56. Liability to be limited in respect of certain shares—Where any shares are
purchased in a society by—
(a\ the Central Government, or
(b) an Apex society from the Principal State Partnership Fund, or a Cen-
tral society from the Subsidiary State Partnership Fund, as the case
may e,
the event of the winding up of such society the abilitv in respect of such
{hall be limited to the amount paid in respect of . lCll shares
57. Rash-i
shares in other soc
and a Centrai so
,5 in the 9
nd on {he
ion on amount of clividenfi.vl‘m Apex society which has purchased
r‘ m the moneys in the Principal State Perth rship Fund,
w! ch has nurchased shares in P‘rimarv societi from the
.v State Farm 0 Fund. shall entitleci o to such
as as is declared - y the society co .Jned and . payable
5 of that society
@
" or Supt-7 and Central. Socicti
'ncipal Stat»: 1391*“
cm shall not have an
s in respect of any in
1 be ntitler‘. _
has or on dissoluhon.
s4(15 if a society in which shares
i“ Fund iv wound up or dissolv-
acainst ihe Apev society
‘- m 5 ch mucha ‘ but
recenod by the Apex
rho case may no.
s,ttc. 3 (ii)] THE GAZETTE OF INDIA EXTRAORDINARY
77
64. Provisions of this Chapter to override other laws.—The provisions of sec-
tions 52 to 62 (both inclusive) in this Chapter shall have effect notwithstanding
anything inconsistent therewith contained in any other law for the time being in
force.
CHAPTER VI
PROPERTY AND FUNDS OF SOCIMIES
65. Fund not to be divided.---(1) No part of the funds or assets of a society,
other than the dividend equalisation fund, if any, and the net profits thereof, shall
be paid by way of rebate or dividend or otherwise distributed, to its members:
Provided that in the case of a member, who is also a salaried servant of
the society payment on such scale as may be laid down by the by-laws may be
made to him for work done as such servant.
(2) No honorarium shall be paid out of the funds and assets of a society other
than the net profits and such honorarium shall not exceed the prescribed limit.
66. Appropriation of profits.—(1) A society earning profit, shall calculate its
annual net profits by deducting from the gross profits for the year, all accrued
interest which is overdue for more than six months, establishment charges, con-
tributions, if any, towards the provident fund and gratuity fund of its employees,
interest payable on loan and deposits, audit fees, working expenses including
repairs, rents, taxes and depreciation, and after providing for or writing off bad
debts and losses not adjusted against any fund created out of profits. A society
may, however, add to the net profits for the year, interest accrued in the preceding
years, but actually recovered during the year.. The net profits thus arrived at,
together with the amount of profits brought forwarded from' the previous year
shall be available for appropriation.
. (2) A society may appropriate its profits to its reserve fund or any other fund;
created by it to payment of dividends to members on their shares, and to any
other purpose which may be specified in the rules or by-laws:
--'s(ovided that, no part of the profits shall be appropriated except with the
approVal of the annual general meeting and in conformity with the Act, rules and
by-laWs.
67. Reserve Fund.— (1) Every society which does, or can, derive a profit front
tits transactions, shall maintain a reserve fund.
(2) At least one-fourth of the net profits of the society each year, shall be
carried to the reserve fund; and such reserve fund may be used in the busineSs
of the society or may, subject to the provisions of section 71, be invested, as the
Administrator may by general or special order direct, or may, with the previous
sanction of the State Government, be used in part for some public purpose likely
to promote the objects of this Act, or for some such purpose of the State, or of
local interest:
Provided that if the Registrar is satisfied that financial condition of the society
is such that it is unable to carry to its reserve fund an amount upto the aforesaid
limit of one-fourth of its net profits, he may by order in writing, for such period
as he may specify in the order, fix for the society a limit lower than the aforesaid
limit but not lower than one-tenth of its net profits.
(3) 'Where the reserve fund of a society exceeds its authorised share capital,
then, notwithstanding anything contained in sub-section (1), the society may,
with the previous permission of the Registrar carry to its reserve fund each year
amount which may be less than one-fourth but not less than one-tenth of its
net profits.
68. Restriction on dividend.—No society shall pay a dividend to its members
at a rate exceeding 9 per cent.
70. Contribution to pubic purposes.—After providing for the reserve fund as
provided in section 67 a society may set aside a sum not exceeding twenty per
cent. of its net profits, and utilise from time to time, with the approval of the
Administrator.
71. Investment of funds.—(1) A society may invest, or deposit its funds,—.
(a) in a Central Bank, or the State Co-operative Bank,
(b) in the State Bank of India,
CW9“
_ 64, Provisions of this Chapter to override other laws.—The revisions of sec»
tions ‘52 to 62 (both inclusive) in this Chapter shall have efi‘ecltJ notwithstanding
Emythmg inconsistent tlicrcwnh contained in any other law for the time beintT in
orce. a
SEQ 3(ii)] THE GAZETTE OF INDIA EXTRAORDINARY
CHAPTER VI
Pimrnfln’ mm FUNDS or Socmrms
65. Fund moth} be divided—i1) No part. of the funds or assets of a society.
othor_than the duodenal equal\_sati_on tun , if any, and the net profits thcrcut shall
be paid by way of rebate or L'llwuend or otherwise distributed, to its members
Provided that in the case of member, who is also a salaried servant of
the society payment on such, scale as may be laid down by the lay-laws may he
made to him for work done as such servant.
(2) No honorarium shall be paid out of the funds and assets of a society other
than the net profits and such honorarium shall not exceed the proscribed limit.
66. Appropriation of profits.~(ii A society earning profit, shall calculate its
annual net profits by deduciing [ruin the gross profits for the year, all accrued
interest which is overdue for more than six months, es 'blishment charges, con»
tributions, if any, towuds the provident fund and gratuit fund of its employees,
interest payable on loan and deposits, audit fees, we ng expenses including
repairs, rents, taxes and depreciation. and after providing for or writing off bad
debts and losses not adJustod against any fund created out of profits. A society
may, however, add to the net profits for the year, interest accrued in the preceding
years, but actually recovered during the year. The net profits thus arrived at,
together with the amount of profits brought forwarded from the previous year
shall be available for appropriation.
(2) A society may appropriate its profits to its reserve fund or any other fund
created by it to payment of dividends to members on their shares. and to any
other purpose which may be specified in the rules or lay-Jaws:
”’c‘ovided that. no part of the profits shall be appropriated except with the
approval of the annual general meeting and in conformity with the Act, miles and
by‘laws.
67. Reserve Fund—(l) Every society which does, or can, derive a profit from
its transactions, shall maintain a reserve fund.
(2) At least one«fourth of the net profits of the society each , shall he
carn’cd to the reserve fund; and such reserve fund mav be used in the business
of the society or may, subject to the provisions of section 71, be invested, as the
Administrator may by general or special order direct, or may, with the previous
sanction of the State Governmsnt, be used in part for some public purpose likely
to promote the objects of this Act. or for some such purpose of the State. or of
local interest:
Provided that ii the Registrar is satisfied that financial condition ol‘ Ihe society
is such that it is unable to carry to its reserve fund an amount upto 1118 aforesaid
limit of one—fourth of its not crits. ho masr by order in writinszl for such pei d
as he may specify in the or (:1, Li: for the society a limit lower than the More; id
limit but not lower than on<2~tenlh of its net profits.
(3) Where the reserve fund ol a. society exceeds its authorised :‘c cupilall
thou, notwithstandi g nvthim contained in sub—section, ll). 1h 7' y may,
with the previous mi ion of the Registrar curry to its re rvn [unti each y
wan OlleiiC‘flifll of its,
: 3‘ amount which mTAV be lC'FS thmi one—fourth but not law
net profits.
ion on ( members
Filing 0 p
-: l'un' as
*nlv my:
] Hf Hit;
70. Con; bullion to on
, "-u'ui
‘: sum imL v
» m Limo. .xxilh
er! i'i smiiun 67 n :v
i“ _.L fronts, am.
>
may im’L '1, or its “Intimir
(a) in :3 Central Bank, or I11»: State Co—opcrative Bali‘s,
(b) in the State Bank of India,
Zig THE GAZETTE OF INDIA EXTRAORDINARY (PART 11:*'
(c) in the Postal Savings Bank,
(d) in any of the securities specified in section 20 of the Indian Trusts Act,
1882, II of 1882.
<e) in shares, or security bonds, or debentures, issued by any other society
with limited liability, or
(f) in any co-operative bank or in any banking company approved for this
purpose by the Registrar, and on such conditions as the Registrar may
from time to time impose,
*(g) in any other mode permitted by the rules, or by general or special order
of the Administrator.
(2) Notwithstanding anything contained in sub-section (1), the Registrar may,
'with the approval of the Administrator order a society or a class of societies to
invest any funds in a particular manner, or may impose conditions regarding the
-mode of investment of such funds.
72. Employees provident fund.—(1) Any society may establish for its
employees a provident fund, into which shall be paid the contributions made by
its emplbyees and by the society. Such provident fund shall not be used. in the
business of the society, nor shall it form part of the assets of the society; but shall
be invested under the provisions of section 71 and shall be administered in the
prescribed manner.
(2) Notwithstanding anything contained in sub-section (1) a provident fund
established by a society to which the Employees Provident Funds Act, 1952. XIX
oaf 1952 is applicable, shall be governed by that Act. •
CHAPTER VII
MANAGEMENT OF. Socrrrias
73. Final authority of society.—Subject to the provisions in. this Act and the
rules, the final authority of every society shall vest in the general body of mem-
bers in general meeting, summoned in such a manner as may be specified,in the
by-laws:
Provided that, where the by-laws of a society provide for the election of dele-
gates of such members, the final authority may vest in the delegates of such meta-
bers elected in the prescribed manner, and assembled in general meeting.
74. Committee, its powers and functions.--The management of every 'society
.shall vest in a committee, constituted in accordance with this Act, the rules and.
by-laws, which shall exercise such powers and perform such duties as may be
'conferred or imposed on it respectively by this Act, the rules- and the by-laws.
75. Banding over records and. property to new Chairman on election.—(1) On
'the election of a new committee and its Chairman, the retiring Chairman in whose
place the new Chairman is elected shall hand over charge of the office of the
'committee and all papers and property, if any, of the society in possession of the
committee or any officer thereof, to the new Chairman of the committee.
(2) If the retiring Chairman fails or refuses to hand over charge or to hand.
over the papers and property of the society as aforesaid, the Registrar,- or any
-person empowered by him in this behalf, may by order in writing direct him to
forthwith hand over such charge and property and the Registrar may, on tire!
retiring Chairman's failure to comply with such direction, make order for seizing
the records and property and handing them over to the New Chairman, in the
manner provided in section 83.
76. Appointment of officers and employees and their conditions of service.—T
-qualifications for the appointment of a manager, secretary, accountant -or any oth
officer or employee of a society and the conditions of service of such officers and
,employees shall be such as may, from time to time, be prescribed:
Provided that no qualification shall be prescribed in respect of any officer not
in receipt of any remuneration.
77. Annual general meeting.—(1) Every .society shall, within a period of three
months next after the date fixed for drawing up its accounts for the year under
the rules for the time being in force, call a general meeting of its members:
Provided that, the Registrar may, by general or special order, extend the
'period for holding such meeting for a further period not exceeding three months:
Provided further that, if in the opinion of the Registrar no such extension
s necen-n;ary, or such meeting is not called by the society 'within the extended
THE GAZETTE OF INDIA EXTRAURIHNARY [PART [IiV‘
(c) in the Postal Savings Bank,
(d) in anv of the securities specified in section 20 of the Indian Trusts Act,
1882. II of 1882‘
(o) in shares, or security bonds, or debentures, issued by any other society
With limited liability, or
(D in any co—operative bank or in any banking company approved for this
purpose by the Registrar, and on such conditions as the Registrar may
trozn time to time impose,
(g) in any other mode permitted by the rules, or by general or special order
09' the Administrator,
(2) Notwitl tanding anything contained in sub-section (1). the Registrar may,
‘ th the approval of the Administrator order a society or a class of societies to
111‘ st any funds in a particular mamicr, or may impose conditions regarding the
mode of investment of such fluids.
\
72. Employees provident fund—(1) Any society may establish for its
employees a provident fund, into which shall be paid the contributions made by
its employees and by the society. Such provident fund shall not he used in the
business of the society, nor shall it form part of the assets of the society: but shall
he invested under the provisions of section '71 and shall be arlmizilste.cd in the
prescribed : *riner.
(2) Notwithstanding anything contained in sub-section (1) a provident fund
established by a society to which the Employees Provident Funds Act, 1952, XIX
of 1952 is applicable, shall be governed by that Act.
CIVLKPTER VII
MANAGEMENT or Socrmrrs
'73. Final anthm‘i-t Subject to the provisions in this Act and the
rules t e final auiho y of are society shall vest in the general body of mem<
hers in general meeting, surnrnonafl in such a manner as may be Specified‘in the
4;, r- w H:
3 lake [1%
Provided that, Where the by‘iaws of a. socidy provide in: the election of (icic-
gates of such members, the final author, may vest in the d gates of such morn.-
bers elected in the prescribed manner, and assembled in general meeting.
74. Committee, its oowem and functions. The management of every society
snail vest in a committee. constituted in accordance with this Act. the rules and.
by—laws, which shall e‘
Efclse such powers and perform sudi duties as may be
conferred or imposed on it respective] y by this Act, the rules- and the by-laws
75. Haafiing arci- records arm property to new (lhairman on eieciioB.——‘(1) On
the election of a new committee and its Cha anon, the retiring Chairman in whose
place the new Chairman is elected ' :1 over charge of the office of the:
committee and all papers and proper ' y, of the society in possession of the
committee or any oificcr thereof, to the nc~ Chairman oi the committee.
(2) If th rcti g Chairman fails or refuses to hand ovc' charge or to hand
over the pt- ers and property of the societr : aforesaid, the Registrar, or any
person emp ered by him in this behalf, may by order in w iting direct him to
forthwith hand over such charge and pro}. y and the Registrar may, on the
retiring Chairman’s failure to comply with ”ch direction, make order for seizing
the records and property and handing them over to the New Chn rman, in the
manner provided in section 83.
76. Appoilitm of ofliccrs and einyioyers and their conditions or service—The
quaiifica oils for ' e appointment of a manager ficl‘etfll‘y, accountant or any otht‘i‘
o‘ficcr or employee of a. society and ti: con ans of sar e of such officers and
0103 es shall be such as may, from time in ie be prescribed:
. respect 01' my ohicei- not
{zone
‘” ac cunts nor the year under
etin ‘
.it ie 9
the time being in to
re,
’le
, t and tl
thr e nioncn
‘4‘
Stc. 3 (ii)1 GAZETTE Or INDIA EXTRAORDINARY
179
period, if any, the Registrar or any person authorised by him in that behalf may
in the prescribed manner call such meeting which shall be deemed to be a general
meeting duly called by the society.
(2) At every annual general meeting of a society, the committee shall lay
before the society a balance sheet and profit and loss account for the year in the
manner, prescribed be? the Registrar by general or special order for any class or classes of societies.
Explanation.—In the case of a society
income and expenditure account shall be
general meeting instead of profit and lose
loss account, and to "profit" or "loss" in
to such society as references respectively
ture" and "excess of expenditure over inc
not carrying on business for profit,
placed before the society at the annual
account; and all references to profit and
this Act, shall be construed in relation
to the "excess of income over expendi-
ome"•
(3) There shall be attached to every balance sheet laid before the society, in
general meeting, a report by its committee with respect to (a) the state of the
society's affairs; (b) the amounts, if any, which it proposes to carry to any reserve.
either in such balance sheet, or any specific balance sheet; and (c) the amounts,
if any, which it recommends for payment by way of dividend, bonus, or honoraria
to honorary workers. The committee's report shall also deal with any changes
in the nature of the society's business which have occurred during the year for
which the' accounts are drawn up. The committee's report shall he signed by its
Chairman, or any other member authorised to sign on behalf of the committee.
(4) At every annual general meeting, the balance sheet, the profit and loss:
account, the auditor's report and the committee's report, shall be placed for
adoption. and such other business will be transacted as may be laid down in the.
by-laws and of. which due notice has been given.
(5) Where any officer of the society, whose duty it was to call a general meeting
within the 'period specified in sub-section (1) or, as the case may be, the period
extended by the Registrar under that sub-section or to comply with sub-section
(2),A) or (4) fails without reasonable excuse to call such meeting or to comply
with sub-section (2), (3) or (4), then—
(i) if such officer is a servant of the society, the Registrar may by an order-
in writing impose on him a penalty of an amount not exceeding one
hundred rupees, and
(ii) if such officer is not a servant of the society, the Registrar may by an
order in writing declare such officer to be disqualified for being an
officer, or a member of the Committee, of the society or for being
elected or appointed to any office of the society, for such period not
exceeding three years as he may specify in the order:
Provided that before making an order under this sub-section, the Registrar
shall give or cause to be given, a reasonable opportunity to the officer-
to show cause against the action proposed to be taken in regard to.
him.
78. Special general meeting.—(1) A special general meeting may be called at
any time by a majority of the committee, and shall be called by the committee
within one month—'
(i) on a requisition in writing of one-fifth of the members of the society
or of members the number of which is specified in the by-laws for
the purpose, whichever is lower, or
(ii) on a requisition from the 'Registrar, or
(iii) in the case of a society, which is a member of a federal society, on a
requisition from the committee of such federal society.
(2) Where any officer or a member of the committee, whose duty it was tu
call such meeting, without reasonable excuse, fails to call such meeting, the
Registrar may by order declare such officer or member disqualified for being a
member of the committee for such period not exceeding three years, as he may
specify in such order; and if the JAI-leer is a servant of ,the society, he may impose
on him a penalty not exceeding one hundred rupees.' Before making an order
under this sub-section, the Registrar shall give, or cause to be given, a reasonable
opportunity to the- person concerned of showing cause against the action proposed
to be taken in regard to him.
‘A RY
[ HE GAZE'l'TE OF
li\‘ DL‘\ EXTRAORDI
period, il‘ any. me Registrar or any person authorised by hi") in that- bch If no
in the prescribed manner call sneli'nieetind which shall lie cl"? “ ‘ ~ 21 - I) y
meeting duly called by the society. h ~ corn“. to gt 0 general
(21) At cvei'v annual general meeting of a society, the committee ohall lay
before the soc ety a balance sheet and profit and loss account for the y; . in the
manner. prescribed by the Registrar by general 0. special order for any class or
classes of societies.
_ Explanatioi —In_thc "1552 of a society not carrying on him 1P
income and xpenditurc account shall be placed before the s cit
general meeting instead of pr
[or profit, an
at the annual
and loss account: and all rcfcrenccs to profit and
i <5 account, and to "profit" “to: " in this Act, ‘mll be construed in relation
io such society as J‘Efet‘ent ‘ icsp ttvely to the “ mess of incozne over expendi—
ture" and “excess of expenditure over income",
(3) There shall be attached to cu balance sheet laid before the society, in
general meeting, a report by its comm ttce, with respect to (a) the state of the
society’s affairs; (b) the amounts, i any, which it proposes to carry to any reserve-
either in such balance sheet, or any specific balance sheet; and (c) the amounts,
ii any, which it recommends for onent by way of dividend, bonus, or honoraria
to honorary Workers. The comm! ee's report shall also deal with any changes
in the nature of the society's bus . ss which have occurred during the year for
which the accounts are drawn up. The committee’s report shall he signed by its
Chairman. or any other member a: itliorlsed to sign on behalf of the commitlcc.
(4) At every annual general meeting, the balance sheet, the profit and loss,
account, the auditor‘s report and the committee‘s report, shall be placed for
adoption, and such other businc, will be transacted as may be laid down in the
hy-laws and of which clue notice has been given.
(5) Where any officer of the society whose duty it was to call a general meeting
withinthe'period specified in sub-set. on (1) or, as the case may be, the period
extended by the Registrar under that sub-section or to comply with sub-section
(2)' «3) or (4) fails without reasonable excuse to call such meeting or to comply
with sub-section [2), (3) or (-1), then——
(i) it‘ such officer is ti servant of the socxety, the Registrar may by an order
in writing impose on him a penalty of an amount not exceeding one
hundred rupees, and
(ii) if such officer is not it s an: at the society, the Registrar may by an
order in Writing declare such ofllcer to be disqualified for being an
officer, or a member of the Con mince, of the society or for being
elected or appointed to em: ofi‘ice of the society, for such periorl not
exceeding three years as he may specify in the order:
Provided that before making en crater under this subsection, the Registrar
shall give or causcAto he given._ a reasonable opportunity to the ofl‘icer
to show cause agamst the action proposed to be taken liL regard to
him.
'78. Special general meeting—it) \ special general meeting may be called at
m r time by u majority of thr- POI“! cc, and shall he rallerl by the Committee
him one month—
(i) on :\ requisition in “fitting - "
(u' of membc:
t’nc purpti
“ftli rit' il‘r men ci's uf the s ciety
icli is specified. in the by-lzu
Hl‘
the v
i'cqti ,
federal “,Hi'i ‘3', mu 2:
HDCiEiy
1 mimbor
.u :zmgh ’
r2) Whe-
n r-iilnmlltcu, who
n1 inqgilnil’ ,_ gum-z: ti . » . ’ in call
y' ' \ ll'w'l .‘ , , i (.. vmiwz’ disqunl'
‘ a , not a weeding Lin C v
i of Tit»: 5n
Before linking
1“!) to he i'
[PART U— a8o THE GAZETTE OF INDIA EXTRAORDINARY
(3) If a special general meeting of a society is not called in accordance with
the requisition referred to in sub-section (1), the Registrar or any person autho-
rised by him in that behalf, shall have power to call such meeting, which shall
be deemed to be a meeting duly called by the committee.
(4) The Registrar shall have power to order that the expenditure incurred in calling a meeting under sub-section (3) shall be paid out of the funds of the
society or by such person or persons who, in the opinion of the Registrar, were
.responsible for refusal or failure to convene the meeting.
79. Acts of societies, etc., not to be invalidated by certain defeets.—(1) No act
of a society or a committee or any officer, clone in good faith in pursuance of the
business of the society shall be deemed to be invalid by reason only of some defect
subsequently discovered in the organisation of the society, or in the constitution
of the committee, or in the appointment or election of an officer, or on the ground
that such officer was disqualified for his office.
lbw
(2) No act done in good faith by any person appointed under this Act, the rules
or by-laws shall be invalid merely by reason of the fact that his appointment has
been cancelled by or in consequence of any order subsequently passed thereunder.
(3) The Registrar shall decide whether any act was done in. good faith in
pursuance of the business of the society', and his decision thereon shall be final.
30. Power to appoint government nominee.—Where the Central Government
has subscribed to the share capital of a society, directly or through another society, -or has guaranteed the repayment of the principal of and payment of interest on,
debentures issued or loans raised by a society, the Central Government shall have
the right to nominate (not more than three) representatives on the committee of
such society, in such manner as may be determined by the Central Government
from time to time. The members so nominated shall hold office during the
pleasure of the Central Government, or for such period as may be specifieckin- the
-order by which they are appointed, and any such member on assuming office • hall
have all rights, duties responsibilities and liabilities as if he were a mem r of
The committee duly elected.
81. Supersession. of committee.—(1) If, in the opinion of the Registrar, the
committee of any society persistently makes default, or is negligent, in the per-
lormance of the duties imposed on it by this Act or therules or the by-laws, or
.does anything which is prejudicial to the interests of the society or its members,
then subject to the rules, the Registrar may, after giving the.. committee an
opportunity of stating its objections, if any, within fifteen days frm the date of
issue of notice, by order in writing, remove the committee; and
(a). appoint a committee, consisting of one or more members of the society,
in its place, or
(b) appoint one or more Special Officers, who need not be members of the
society,
to manage the affairs of the society for a period not exceeding two years specified
in the order, which period may, at the discretion of the Registrar, be extended
from time to time, so however that the total period does not exceed four years in
The aggregate.
(2) The committee or Special Officer so appointed shall, subject to the control
of the Registrar and to such instructions as he may from time to time give, have
power to exercise all or any of the functions of the committee or
int
any officer. of
the society, and take all such action as may be required in the rests of t.
society.
I I.
(3) If at any time during any period or extended period referred to in clause (b) sub-section (1), it appears to the Registrar that it is no longer necessary to
continue to carry on the affairs of the society as aforesaid, he may, by an order
published in the Official Gazette, direct that the management shall terminate; and
on such order being made, the management of the society shall be handed over to
a new committee duly constituted.
(4) The committee or Special Officer shall, at the expiry or termination of its
.
or his term of office, arrange for the constitution of a new committee in accordance
with the by-laws of the society.
(5) All acts .done or purported to be done b=7 the committee or Snerial Officer
cturing the period during which the ailair:3 of the. :society are co.r.ried on by the
‘r‘
. I
“[80 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
eneral meeting of a society is not called in accordance with
the requisition ref ed to in sub-section (1), the Registrar or any nerson autho-
rised by him in that behali, shall have power to call such meeting, which shall
be deemed to be a meeting duly called by the committee.
(4) The Registrar shall have power to order that the expenditure incurred in
calling a meeting under sub—section (3) shall 3 paid out of the funds of the
society or by such person or persons who, in the opinion of the Registrar, were
responsible for refusal or failure to convene the meeting.
79. Acts of societies, em, not to be invo‘ ated by certain defectsratl) No act
of a society or a committee or any officer, none in good faith in pursuance of the
business ol the society shall be deemed to be invalid by reason only of some defect
subsequently discovered in the organisation of the society, or in the constitution
of the committee, or in the appointment or election of an ofiicer, or on the ground
that such officer was disqualified for his otiice. i
(2) No act done in good faith by any person appointed under this Act, the rules
or lay—laws shall be invalid merely by reason of the fact that his appointment has
been cancelled by or in consequence of any order subsequently passed thereunder.
(3) The Registrar shall decide whether any act was done in good faith in
pursuance of the business of the society; and his decision thereon shall be final,
80. Power to annoiflt Government nominee—Where the Central Government
has subscribed to the share capital of a society, directly or through another society,
or has guaranteed the repayment of the prime. al of and payment of interest on,
debentures issued or loans raised by a society, the Central Government shall have
the right to nominate (not more than three) representatives on the committee of
such society, in such manner as may be determined by the Central Government
from time to time. The members so nominated shall hold office during the
pleasure of the Central Government, or {or such period as may be specifiedin the
order by which they are appointed, and any such member on assuming officgshall
have all rights, duties responsibilities end liabilities as it he were a mem r of
the committee duly elected.
3L Supremession of committee—(1) H, in the opinion of the Eegistrar, the
committee of any society persistently makes default, or is negligent, in the per-
formance of the duties imposed on it by this Act or the rules or the lay—laws, or
does anything which is m’ejudicial to the interests of the society or its members,
then subject to the rules, the Registrar may, after giving the committee an
opportunity of stating its objections, ii any, within fifteen days from the date of
issue or notice, by order in writing, remove the committee; and
(a) appoint a committee, consisting of one or more members of the satiety,
in its place, or
(b) appoint one or more Special Onicers, who need not be members of the
society,
to manage the affairs of the society for a period not exceeding two years specified
in the order, which period may, at the discretion of the Registrar, be extended
from time to time, so however that the total period does not exceed four years Ln
the aggregate.
(2) The committee or Special Officer so appointed shall, subject to the control
of the Registrar and to such instructions as he may from t'ne to time give. have
r'ercise all or any of the functions of the commit a or of any officer of
and take all such action as may be required in the interests of t
1 to in clause
11': ry to
y, by an order
. rh rminate; and
shall be harried over to
v time duringY lmy oeriod or
to the ‘7'- ‘
livism‘:
'Sze. S (ii)] THE GAZETTE OF INDIA EXTRAORDINARY 181
committee or Special Officer appointed under sub-section (1), shall be binding on
the new committee.
(6) Before taking any action under sub-section (1) in respect of a society, the
Registrar shall consult any co-operative financing institution to which it is
indebted.
82. Registrar's power to enforce performance of obligations.—(1) It shall be
the duty of every society to keep the prescribed books of accounts with respect to
all sums of money received and expended by the society, and the matters in
respect of which the receipt and expenditure take place, all sales and purchases of
goods by the society, and the assets and. liabilities of the society, and to furnish
such statements and returns and such records to the Registrar as the Registrar
may by order direct from time to time; and the officer or officers of the society
shall be bound to comply with the order within the period specified therein.
(2) Where any society is required to take any action under this Act, the rules
or the by-laws, or in compliance with an order made under sub-section (1) and
such action is not taken—
(a) within the time provided in. this Act, the rules or the by-laws, or the
,order, as the case may be, or
(b) where no time is so provided, within such time, having regard to the
nature and extent of the action to be taken, as the Registrar may
specify by notice in writing,
the Registrar may himself, or through a person authorised by him, take such
action, at the expense of the society; and such expense shall be recoverable from .
the society as if it were an arrear of land revenue.
(3) Where the Registrar takes action under sub-section (2), he may call upon
any officer of the society whom he considers to be responsible for not complying
with the provisions of this Act, the rules or the by-laws, or the order made under
sub-section (1), and, after giving him an opportunity of being heard, may require
hirr to pay to the society the expenses paid or payable by it to the Central
GoVernment as a result of his failure to take action, and to pay to the assets of
the society such sum not exceeding fifteen rupees as the Registrar may think fit
for each day until Registrar's directions are carried out.
83. Registrar's power to seize records, etc.—Where the Registrar is satisfied that
the books and records of a society are likely to be tampered with or destroyed,
or the funds and property of a society are likely to be misappropriated or mis-
applied,. the Registrar may issue an order directing a person duly authorised by
him in writing to seize and take possession of such books and records, funds and
property of the society, and the officer of the society responsible for the custody
of such books, records, funds and property shall give delivery thereof to the person
so authorised.
CHAPTER vrir.
AUDIT, INQUIRY, INSPECTION AND SUPERVISION
84. Auditor.—(1) The Registrar shall audit, or cause to be audited by a person
possessing prescribed qualifications and authorised by the Registrar by• general
or special order in writing in this behalf, the accounts of every society at least once
in each year. The person so authorised shall be an auditor for the purposes of
this Act.
(2) The audit under the foregoing sub-section shall include an examination of
overdue debts, if any, the verification of the cash balance and securities, and a
valuation of the assets and liabilities of the society.
(3) The Registrar or the auditor shall, for the purpose of audit, at all times have access to all the books, accounts, documents, papers, securities, cash and
other properties belonging to, or in the custody of, the society, and may summon
any person in possession or responsible for the custody of any such books, accounts,
documents, papers, securities, cash or other properties, to produce the same at any
place at the headquarters of the society or any branch thereof.
(4) Every person. who is, or has at any time been, an officer or employee of
the society, and every member and past member of the society shall furnish such
information in regard to the transactions and working of the society as the
Registrar, or the auditor may require.
N
(K5
5m. 3(a)] THE GAZETTE OF INDIA EXTRAORDINARY x31
committee or Special Officer appointed under sub-section (1), shall be binding on
the new committee
(6) Beiore taking any action under sub—section (1) in res ect of a societ the
Bilgigtralr shall consult any cooperative financing institiition to whichyit is
in e e .
82. Registrar‘s power to enforce performance of obligations—(l) It shall be
the duty of every socretyto keep the prescribed books of accounts with respect to
all sums of money received and expanded by the society, and the matters in
respect of which the receipt and expenditure take place, all sales and purchases of
goods by the society, and the assets and liabilities of the society, and to furnish
such statements and returns and such records to the Registrar as the Registrar
may by order direct from time to time; and the officer or officers of the society
shall he bound to comply with the order within the period specified therein.
(2) Where any society is_required to take any action under this Act, the rules
or the by-laws, or m compliance with an order made under subsection (1) and
such action is not taken—
(a) within the time provided in this Act, the rules or the lay-laws, or the
order, as the case may be, or
(h) where no time is so provided, within such time, having regard to the
nature and extent of the action to be taken, as the Registrar may
specify by notice in writing,
the Registrar may himself, or through a person authorised by him, take such
action, at the expense of the society; and such expense shall be recoverable irom
the society as if it were an arrear of land revenue.
(3) Where the Registrar takes action under sub-section (2), he may call upon
any officer of the society whom he considers to be responsible for not complying
with the provisions of this Act. the rules or the by—laws, or the order made under
subsection (1L and, after giving him an opportunity of being heard, may require
him to pay to the society the expenses paid or payable by it to the Central
Government as a result of his failure to take action, and to pay to the assets of
the society such sum not ‘ ‘ceding fifteen rupees as the Registrar may think. fit
for each day until Registi 1 5 directions are carried out.
83, Registrar’s power to seize records, eta—Where the Registrar is satisfied that
the books and records of a society are likely to be tampered with or destroyed,
or the funds and property of a society are likely to be misappropriated or mis‘
L-pplied, the Registrar may issue an order d' ting a person duly authorised by
nim in vrrritingV to seize and take possession of such books and records, funds and
property of the society, and the officer of the society responsible for the custody
of such books, records, funds and property shall give delivery thereoi to the person
so authorised
CHAPTER VIII
AUDIT, INQUIRY, INSPECTION AND SUPERVISION
84, Audito ‘—(l) The liegis ‘ shall audit, or cause to be audited by a person
possessing pr ‘ ii‘oed quolilicn ns and authorised by the Registrar by general
or special order in writing in this hehalf, the accounts of every society at least once
in each year. The person so authorised shall be an auditor tor the purposes of
this Act,
(2) The> audit under the Em going sub—section shall include an e nitration of
overdue (iEilt , ii any, the y “manor the cash balance and securities, and a
valuation at the s and li oi the soci y.
- m: vlic l
/.
1:11.tier II- I 2 TFIE GAZETTEI OF INDIA EXTRAORDINARY
(5) The auditor shall have the right to receive all notices, and every com-
munication relating to the annual general meeting of the society and to attend such
meeting and to be heard thereat, in respect of any part of the business with which
he is concerned as auditor.
(6) If it appears to the Registrar, on an application by a society or otherwise,
that it is necessary or expedient to re-audit any accounts of the society, the
Registrar may by order provide for such re-audit and the provision of this Act
applicable to audit of accounts of the society shall apply to such re-audit.
(7) For auditing the accounts of a society under this section, the society shall
be liable to pay audit fee at such scale as may be prescribed.
85. Rectification of defects in accounts.—If the result of the audit held under
section 34 discloses any defects in the working of a society, the society shall
within three months from the date of the audit report, explain to the Registrar
the defects or the irregularities pointed out by the auditor, and take steps to
rectify the defects and remedy irregularities. and report to the Registrar the
action taken by it thereon. The Registrar may also make an order directing the ***
society or its officers to take such action and within such time as may be specified
therein to remedy the defects. Where the society concerned is a member pf a
federal society, such order shall be made after consulting the federal society.
36. Inquiry by Registrar.—(l) The Registrar may of his .own motion himself;
or by a person duly authorised by him in writing in this behalf, hold an inquiry
into the constitution, working and financial conditions of a society.
(2) The Registrar shall hold such an inquiry—
(a) on the requisition of a society duly authorised by rules ,made in this
behalf to make such requisition, in respect of any of its members,
such member being itself a society, or
(b) on the application of a majority of the committee of a society, or
(c) on the application of one-third of the members of a society. 't.:
(3) (a) Every Officer, member and past member of the society in respei:if of
which an inquiry is held, and any other person who is in possession of information,
books and papers relating to. the society, shall on being so required•furniSh such.
information as is in his possesSion, and produce all books and papers relating to
the society which are in his custody or power, and otherwise give to the officer.
holding the inquiry all assistance in connection with the inquiry which he can
reasonably give. •
(b) If any such person refuses to produce to the Registrar or any person. autho-•
rised by him under sub-section (1), any book or paper which it is his duty under
clause (a) to produce or to answer any question which is put to him by the
Registrar or the person authorised by the Registrar in pursuance of sub-clause
(a), the Registrar or the perSon authorised by the Registrar may certifY the
refusal and the Registrar may impose on the defaulter a penalty of an amount not
exceeding five hundred rupees. Before imposing such penalty, the Registrar shall
give, or cause to be given a reasonable opportunity to the defaulter, of showing
cause against the action proposed to be taken in regard to him.
(4) (a) If at any stage of the inquiry under this section the Registrar is satis-
fied that in the interest of the members of the society, it is necessary to take
over all books and papers relating to the society during the period of inquiry,
be may make an order in writing to that effect and directing the society to hand
over all books and papers relating to the society to such officer as may be specified .
in the order. The Registrar may also issue a direction to the society to refrain
from doing such acts or engaging in such activities as may be specified in these;
direction.
(b) The society shall be bound to comply with any direction issued to it.
under clause (a).
(c) The books and papers taken over under clause
the society on the completion of the inquiry.
(5) When an inquiry is held under this section the Registrar shall com-
municate the -reFoit of the inquiry—
(I) in case the Central Governrhent have subscribed directly to the share
capital of the society or in case any moneys are due from the society-
to the Principal State Partnership Fund or to the Subsidiary State
Partnership Fund, to the Central Government or to any officer
appointed by it in this behalf;
(a) shall be returned to
‘
/'~ ’
THE GAZETTE OF INDIA EXTRAORDINARY [P.m‘r 11:.
cw;
(5) The auditor shall have the right to receive all notices, and every com-
munication relating to the annual general meeting of the society and to attend such
meeting and to be heard thereat, in respect of any part of the business with which
he is concerned as auditor.
(6) If it appears to the Registrar, on an application by a society or otherwise,
that it is necessary or expedient to re-audit any accounts of the society. the
Registrar may by order provide for such r udit and the provision cl? this Act
applicable to audit of accounts of the society _. all apply to such re-andit.
(7) For auditing the accounts of a society under this section, the society shall
be liable to pay audit fee at such scale as may be prescribed. .’
65. Rectification of defects in accounts-elf the result of the audit held under
section 84 discloses any defects in the working of a socie y, the society shall
within three months from the date of the audit report, explain to the Registrar
the defects or the irregularities pointed out by the auditor, and take skis to
rectify the defects and remedy ii-regil ' and report to the Registrar the
action taken by it thereon. The Begisl also make an order directing the ‘4—
society or its officers to take such action and within such time as n , be SPE‘UfiK-Jd
therein to remedy the defects Where the society concerned is a member of a
federal society: such order shall be made after consulting the federal society.
as. Inquiry by Registrars—(l) Thc Rhalotrai‘ may oti his own motion himself.
or by a person duly authorised by him in writing in this behalf, hold an inquiry
into the constitution, working and financial conditions of a society.
(2‘; The Registrar shall hold such an inquiry~
(a) on the requisition of a socie ‘ duly authorised by rules made in this
hehali‘ to make such requi tion, in respect of any of its members,
such member lacing itself a society, or
(b) on the application of a majority of the committee of a society, or
(c) on the application of one~third of the members of a society.
(3) (a) Every Officer, member and past member of the society in rcspe" of e
which an inquiry is held, and any other person who is in possession of information, '
books and papers relating to the society, shall on being so required furnish such :’
information as is in his possession, and produce all books and papers relating to
the society ‘ hich are in his custodr or power, and otherwise give to the ofiicer
holding the inquiry all assistance in connection with the inquiry which he can
reasonably give,
(1)) If any such person refuses to produce to the Registrar or any person sutho~
rised by him under sul3»section (1), any book or paper which it is his duty modeli—
clause (a) to produce or to answer any question which is put to him by the
Registrar or the person authorised by the Ru trar in pursuance of sub—clause
(a), the Registrar or thc person authorised the Registrar may certify the
refusal and the Registrar may impose on the defaulter a penalty of an aunouni. not
exceeding five hundred rupees. Before imposing such penalty, he ltegi . ar shall
give, or cause to be given a reasonable opportunity to the defaulter. 0 Shh mg
cause against the action proposed to be taken in regard to himl
(4) (a) If at any stage of thc inquiry under this Iiion the Registrar is satis-
fiod that in the interest of the members of t‘ soc , it is necessary to take s,
over all books and papers relating to the socie dui ng the period of inquiry,
he may make an order in wr mg to that d directing the society to inn
over all books and pope 5 relating lo the :ociaty to such oil-lcer as may be 5 1d
in the order. The Registrar may also issue eclion lo the society to
ir m doing such acts or engaging in such tlvmos as mnv be specified in ”Ink,
direction.
[bl The society shall be bound to comply i\’lt,ll uny direction i to it
under clausc (2!),
{cl The books and papers taken over no [or Ciause {at shall be r united to
ilwe society on the completion of the inquir .
(5 When in; is held under
municnte the . the inquirvfi
111: Central Go
al of the .
lion the Registrar shall tom-
‘vinvu 'JLileFL
* - ' any man “'0 l.
mnent or
.:Sge. 3 OW THE GAZETTE OF LIVD1A EXTRAORDIN..A.RY
(ii) to the federal co-operative society concerned, and
(iii) to the society concerned.
(6). It shall be competent for the Registrar to withdraw any inquiry from the officer to whom it is entrusted, and to hold the inquiry himself or entrust it.
to any other person as he deems fit.
87. Inspection of books of indebted society.—(1) On the application of a. creditor of a society who,—
(a) satisfies the Registrar that the debt is a sum then due, and that he-
has demanded payment thereof and has not received satisfaction.
within reasonable time, and
(b) deposits with the Registrar such sums as the Registrar may require
as security for the costs of any inspection of the books of the society,.
the Registrar may, if he thinks it necessary, inspect or direct a person autho-
rised by him by order in writing in this behalf to inspect, the books of the society.
(2) The Registrar shall communicate the result of any such inspection to
, the applicant, and to the society whose books have been inspected.
• .
(3) It shall be competent for the Registrar to withdraw any inspection from
the officer to whom it is entrusted, and to carry out the inspection himself or•
entrust it to any other person as he deems fit.
88. Inspection of books by financing Bank.—Where a society is indebted to any
co-operative financing bank such bank shall have the right to inspect the books
of that society. The inspection may be made either by an officer of the. bank
authorized by the committee of such bank or by a member of its paid stay
certified by the Reistrar as competent to undertake such inspection. The officer
or member so inspecting shall at all reason-able times have free access ,to the books,:- accounts, documents, securities, cash and other properties belonging to
or in. the custody of the society and may also call for such information state-.
ments` and returns as may be necessary to ascertain the financial condition of the
society and the safety of the sums lent to it by the bank.
89. Suspension of officer or servant of society.—(1) Where in the course of an.
audit under section 84 or an inquiry under section 86 or an inspection under
section 87 or section as, it is brought to the notice of the Registrar that a paid
officer or servant of a society has committed or has been otherwise responsible
for misappropriation, breach of trust or other offence, in relation to the society,
the Registrar may, if in his opinion, there is prima facie evidence against such paid officer or servant and the suspension of such paid officer or servant is neces-
sary in the interests of the society, direct the committee of the society pending
the investigation and disposal of the matter, to place or cause to be placed such paid officer or servant under suspension from such date and for such period as.
may be specified by him.
(2) On receipt of a direction from the Registrar under sub-section (1), the
committee of the society shall, notwithstanding any provision to the contrary in_
the by-laws, place or cause to be placed the paid officer or servant under
sus-pension forthwith.
(3) The Registrar may direct the committee to extend from time to time, the
period of suspension and the paid officer or servant suspended shall not be
reinstated except with the previous sanction of the Registrar.
(4) If the committee fails to comply with the direction issued under sub-
section (1), the Registrar may make an order placing such paid officer or servant
under suspension from such date and for such pc tied as he may specify in the
order and thereupon the paid officer or servant, as the case may be, shall be under suspension.
90. Costs of inquiry and insinctizin.—(1) The cost of an inquiry under section
86 or, as the case may be of an inspection under section 37 shall be met in the.
first instance from the Consolidated Fund of India and shall be recovered in
accordance with sub-section (2) and section Fei.
(2) The Registrar shall determine the total amount of the cost referred to in
sub-section (1) and by order apportion the cost or such part thereof as he may
think just between the society, the members or creditors demanding the inquiry
32c. SUD] THE CAZEI'TE ()i‘ iNDiA
O R Di N_-\ R)’
(ii) to the federal aim-operative society concerned. and
(iii) to the society concerned.
(6) It shall be competent tor the Registrar to withdraw any inquiry irnm
the officer to whom it is entrusted, and to hold the inquiry himself or entrust it
to any other person as he deems iii
37. Inspectian‘of books of indebted society.~(l) On the upplication of a
creditor of a society who,~
(a) satisfies the Registrar that thc debt is a sum then due, and thut he
has _demanded payment thereof and has not received satisfaction
wiflnn reasonable th e, Lind ~
(13) deposits with tho Reg btla" such Sums as the Regina-iii may require
as security for the costs ol any inspection of the books of The society,
the Registrar may, if he think it no
rised by him by order in writing in th
society.
‘ inspect or direct a person nutho~
bchnlf to inspect, ihe books of the
(2) The Registrar shall communicate the result of any such inspection to
the applicant. and to the society whose books have been inspecteclt .
(3) It shall be competent for the Registrar to withdraw any inspection from
the officer to whom it is entrusted‘ and to carry out the inspection himself or
entrust it to any other person as he deems fit.
38. Inspcction of books by financing Banli.——Wliere a society is indebted to any
aim-operative financing bank such bank shall have the right to inspect the books
at that society, The inspection may he made either by an oihcer of the bank
authorized by the committee of such hank or by a member or its paid staff
certified by the Reistrar as competent to undertake such inspection The officer
or member so inspecting shall at all reasonable times have free access to the
booksfaccounts, documents. securities, cash and other properties belonging to
or in the custody of the sooietv and muy also call ior such information state~
merits. and returns as may be m, .ury to ascertain the financial condition of the
society and the safety of the sums lent to it by the bank.
89. Suspension ut' omccr or servant of society—ti) Where in the course or an
audit under section 84 at n inquiry under section 86 or an ‘
section 37 or section 88, it is brought to the notice of the Reg‘st 1' that n p
officer or servant of a society has committed or has been otherwme responsi
[or misappropriation, breach of [Just or other offence, in relation to the societ
the Registrar may. if in his upinim), there is p‘rlma y‘iicie evidence against such
paid officer or servant and the s )enslun oi- such paid officer or servant is neces»
sury in the interests of the society, direct the committee oi‘ the ciety pending
the investigation and disposal ol‘ the matter, to place or cause to he placed such
paid officer or servant under suspcnsmn from such date and [or such period as
may be specified by him.
pection under
12
Y.
m
(2) On receipt 01' a direction [rum Lhu Registrar under sub-section (1), the
committee of the society shall, nothth Iv ’ichng any provision to thc contrary in
the iii/Jaws. place or cause to he [llzlctlit the paid unicer or servant undcr sus-
pension forthwith.
(3) The Rogis 1' may Llircci in: ininiiiittce to extend “rum limi. tu ii
DL ion of suspension and the y‘xud on .ur or .‘ervant RU
1 installed except With the premium szinu‘ion oE the ‘7
. the
clutiilinll nut hi:
neg
(ii If the committee: tails in , iiip‘jy -lion issued under
section (1;, the Renislrar may n L‘ Lill nirrc - ' :l i ,..nl:
un’lr‘i uspunslon 1101‘“ SH vitlll l'ur in the
order and thereupon the cr (A s. iniil7 as ilii: whirl] he
until-r 'l '
I10. ('0: ll nu“: ill :2“ ' .‘ 5(‘P‘luil
. an
.tjou ii
Mneo
. _> L
.t'oriimu- With . '.
1.")
istrnr shall (le
action (l) and by order
lhv total amount it! the cost r
i ‘9 V
k just between the society, ‘
'l t - cost r such part the
' t or ClL’dJLOlS demanding il
or inspection, the officers or former officers and the members or past Members
of the society:
Provided that where a person has ceased to be a member on his death, the
order of apportionment shall be made against his estate, if such person was liable
for the costs:
Provided further that no order of apportionment of costs shall be made
'under this section without—
(a)
having heard, or given a reasonable opportunity of being heard to,
the society or person or in the case of an estate its legal representa-
tive, as the case may be, against whom or which such order is pro-
posed to be made; and
(b)
setting out in the order the grounds on which the apportionment is
made.
(3) No expenditure from the funds • of a society shall be red by
incurred, for
person
the
purpose of defraying any costs in support of any appeal prefer
any
.other than the society against an order made under sub-section (1).
91. Mode of recovery of sums imposed as penalty or awarded as costs.—Any
sum imposed as penalty under sections 77, 78 or 86 or awarded by way of costs
under section 90 may, on an application by the Registrar or a person authorised
hi in that behalf to a Magistrate having
in the plade where the
personpe from whom the penalty or costs are
erecoverable resides or . carries his
business, be recovered by the Magistrate as if it were a fine imposed by himself;
and such Magistrate shall proceed' to recover the same in the manner provided
by the Code of Criminal Procedure 1898 (V of 1898), for the recovery of fines.
92. Registrar to bring defects disclosed in inquiry or inspection to notice of
society.—(1
) If the result of any inquiry held under section 86 or inspection made
under section 87, discloses any defects in the constitution, Working or financial
condition or the books of a society, the Registrar may bring such defecteeto
. the
notice of the society. The Registrar may also make. an order. directinne the
society or its officers to take such action as may be specified in the ord to
remedy the defects, within the time specified therein.
(2)
The society concerned may make an appeal against an order made by the
Registrar under sub-section (1) to the Administrator within two months from
the date of the communication of the order to the society.
(3)
The Administrator may, in deciding the appeal, annul, reverse„. modify
-or confirm, the order of the Registrar.
(4)
Where the society fails to rectify the defects as directed by the Registrar
and where no• appeal has been made to the Administrator under sub-section (2)
or where on the appeal so made the Administrator has not annulled, reversed
or modified the order, the Registrar may himself take steps to have the 'defects
rectified, and may recover thecosts from the officers of the society who, in his
,opinion, have failed to rectify the defects.
93. Power of Registrar to assess damages against delinquent promoters, etc.—
(I) Where, in the course of or as a result of an audit under section 84, or an
inquiry under section 86 or an inspection under section 87, or the winding up
of a society, the Registrar is satisfied on the basis of the report made by the
auditor or the person authorised to make inquiry under section 86, or the person
authorised to inspect the books under section 87, or the Liquidator under section
,
110, that any person who has taken any part in the organisation or managenirtit
of the society or any deceased, or past or present officer of the societ has, within
a period of five years prior to the date of such audit, inquiry, inspectson or order
for winding up, misapplied or retained, or become liable or accountable for, any
money or property of the society, or has been guilty of misfeasance or breach of
trust in relation to the society, the Registrar or a person authorised by him in that
behalf may.investigate the conduct of such person or persons and after framing
charges agauest such person or,
persons, and after giving a reasonable opportunity
to the person concerned and in the case of a deceased person to his representative
who inherits his estates to answer the charges, make an order requiring him to
repay or restore the money or property or any part thereof, with interest at such
rate as the Registrar or the person. authoris.,?0,
under this section may determine,
Or to COY, tribt_lj,e SUI:h SLIM
to the assets of the society by way of compensation
regard to 1-1-
1= misapplication, retention, mIsleasance or breach of . trust, as he
may determine, •
TEIE GAZETTE 10F INDIA EXTRAORDINARY [PART II-2P
o\
49‘
y
84 THE GAZETTE [0F INDXA EXTRAORDINARY [PART Hi.
or inspection. the officers or former ofificers and the members or past members
of the society:
Provided that where a person has ceased to be a member on his death, the
order of apportionment shall be made against his estate, if such person was liable
for the costs:
Provided luriher that no order
under this section without—
(a) having heard, or given alreasonable opportunity oi being heard to,
the society or person or in the case of an estate its legal representa~
tive, as the case may be, against whom or which such order is pro-
posed to be made; and
(b) setting out in ’rhe order the grounds on w
made.
(3) No expenditure from the funds of a society shall be incurred, for the \
purpose of defraying any costs in suppon of any appeal preferred by any person
other than the society against an order made under subsection (1).
of apportiozunent of costs shall be made
hich the apportionment is
521. Mode of recovery of sums imposed as {Jenalty or awarded as costs.——Any
sum imposed as penalty under sections 7'], ’18 or 86 or awarded by way of costs
under section 9D may, on an application by the Registrar or a person authorised
by him in that behalf to a Magistrate having jurisdiction in the place where the
person from whom the penalty or cost, are recoverable resides or carries his
business, he recovered by the Magistrate as if it were a fine imposed by himself;
and such Magistrate shall proceed to recover the same in the manner provided
by the Code of Criminal Procedure 18% (V of 1898), for the recovery of fines
92. Registrar to bring defects disclosed in inquiry or inspection to notice of
socioty.——(l) If the result of any inquiry held under section 36 or inspection made
under section 87, discloses any defects in t constitution, working or financial
conditi n or the books of a society, the Re irar may bring such defects‘lo the
notice oi the soot: The Registrar may also make an order direct 't
society or its officers ' take such action as may be specified in the order to
remedy the defects, Within the time specified therein,
(2) The society concerned may make an appeal against an order made by the
Registrar under sub-section (1) to the 11‘ nistrator within two months from
the date of the communication of the oi to the society.
(3) The Administrator may, in deciding
or confirm, the order of the Registrar:
1“ ‘ the defects as directed. by the Registrar
under subsection (2)
the appeal, annul, reverse, modify
(4) Where the society fails to root
and where no appeal has been made to the Administrator
or where on the appeal so made the Administrator has not annulled, reversed
or modified the order, the Registrar may himself take steps to haVe the defects
rectified, and may recover the costs from the officers of the society who, in his
«opinion, have failed to rectii‘y the delects,
to assess damages against delinquent promoters, etc.—
(1) Where, in the course or or as a resmt 06 an audit under section 84. or an
inquiry under section 86 or an inspection under section 87, or the winding up
of a society, the Registrar is satisfied on the basis of the report made by the
auditor or the person authorised to make inquiry under section 86, or the person
authorised to inspect the books under Si‘Cthn :37, or the Liquidator under sect' n
or management
110, that any person who has taken a y part in the organisation . ‘ _
of the society or any l el ‘ it oEfi or of the socmty has, Within
a period of five , inquiry, inspection or order
hie c accountable for, any
93‘ fewer of Registrar
g up.
0|. ii (men or breach of
.son author him in that
n or pe ~ons and ter training
ortunily
tiring :1 reasons
ed person to l
l'U‘ wt
W
• SEC. 3(ii)] THE GAZETTE OF INDIA EXTRAORDINARY
(2) The Registrar or the person authorised under sub-section (1) in making
any order under this section, may provide therein .for the payment of the costs or
• any part thereof of such investigation, as he thinks just, and he may direct that such
costs or any part thereof shall be recovered from the person against whom the
order has been issued.
(3) This. section shall apply, notwithstanding that the act is one for which the
person concerned may be criminally responsible.
94. Power to enforce attendance etc.—The Registrar or the person authorised by
him; when acting under sections 86, 87 or 93 shall have the—tfower fo summon and
enforce the attendance of any person to give evidence or to compel the production
of any document or other material object .by the same means and in the same
manner as is provided in the case of a Civil Court under the Code of Civil Pro-
cedure, 1908 (V of 1908).
95. Constitution or recognition of federal society to supervise working' of socie-
ties.—(1) The Administrator may constitute committees or recognise one or more
co-operative federal societies in such manner as may be prescribed and subject
to such conditions as the Administrator may impose, for the supervision of a society
or a class of societies and may frame rules for mallieg grant to any such committee
or federal society.
(2) The Central Government may, by general or special order, require of a
society or a class of societies to make contribution of such sum every 'year as
may be fixed by the Registrar towards the recoupment of expenditure which
the Central Government or any ;erson authorised or a committee in that
behalf has incurred or .is likely to incur, in respect of the supervision of societies.
(3) A society to which sub-section (2) is applicable shall pay to such authority
such fee as may he prescribed within a reasonable time and, if it fails to pay such
fee within a reasonable time, the authority may recover it as if it were an arrear
of land revenue.
CHAPTER IX
PROCEDURE POR DECIDING DISPUTES
96. Disputes.—(1)Notwithstanding anything contained in any other law for the
time being in force, any dispute touching the constitution, management or business
of a society shall be referred in the prescribed form either by any of the parties
to the dispute, or by a federal society to which the society is affiliated, or
by a creditor of the society, to the Registrar, if the parties thereto are from
amongst the following:—
(a) a society, its committee, any past committee, any past or present officer.
any past or present agent, any past or present servant or nominee
heir or legal representative of any deceased. officer, deceased agent or
deceased servant of the society, or the Liquidator of the society;
(b) a member, past member or a person claiming through a member, past
member or a deceased member of a society, or a society which is
a member of the society:
(c) a person, other than a member of the society, who has been granted a
loan by the society, or with whom the society has or had transactions
under the provisions of section 46, and any person claiming through
such a person:
(d) a surety of a member, past member or a deceased member, or aeeerson
other than member who has been granted a loan by the society under
section 46, whether such a surety is or is not a member of the society;
(e) any other society, or the Liquidator of such a society.
(2) When . any question arises whether for the purposes of sub-section (1) a
matter referred to for decision is a dispute or not, the question shall be considered
by the Registrar, whose decision shall be final.
Explanation I.—For the purposes tit this sub-section a dispute shall include—
(i) a claim by a society for any debt or demand due to it from a member,
past member or the nominee, heir or legal representative of a deceased
member, whether such a debt or demand be admitted or not;
(ii) a claim by a surety for any sum or demand due to him from the prin-
cipal borrower in respeCt of a loan by a society and recovered from
the surety owing to the default of the principal borrower, whether
such a sum or demand be admitted or not;
E OF ENDIA EXTRAORDINARY
6/653
sec. 3 (i ()1 THE GAzm 85
(2) The Registrar or the person authorised under sub-section (1) in making
any order under this section, may provide therein [or the payment of the costs or
any part- thereoi of such investigation, as he thinks just, and he may direct that such
costs or any part thereof shall be recovered from the person against whom the
order has been issued.
(3) This section shall apply, notwithstanding that the act is one for which the
person concerned may be criminafly responsible.
94. Power to enforce attendance, aim—The Registrar or the person authorised by
him, when acting under sections 86, 27 or 93 shall have theflp'ower to summon and
enforce the attendance of any person to give evidence or to compel the production
of any document or other material object by the some means and in the same
manner as is provided in the case of a Civil Court under the Code of Civil Pro»
cedure, 1903 (V of 1908).
95. Constitution or recognition of fillet-a1 sllciflty to supervise working of smile:—
ties.——(1) The Administrator may constitute committees or recognise one or more
arm—operative federal societies in such manner as may be prescribed and subject
to such conditions as the Administrator may impose, for the supervision of a society
or a class of societies and may frame rules for making grant to any such committee
or federal society.
(2) The Central Government may, by general or special order, require or a
society or a class of societies to make contribution of such sum every year as
may be fixed by the Registrar towards the recoupment of expenditure which
the Central Government or any person authorised or a committee in that
behalf has incurred or ,is likeLy to incur. in respect of the supervision of societies.
(3) A society to which sub-section (2) is applicable shall pay to such authority
such fee as may be prescribed within a reasonable time and, if it fails to pay such
tee within a reasonable time. the authority may recover it as if it were an arrear-
of land revenue.
CHAPTER IX
Puocrnune FOE necmms DISPUTES
96. Highness—(l)Notwithstandini; anything contained in any other law for the
time being in force, any dispute touching the constitution, management or business
of a society shall be referred in the ‘ scribed form either by any of. the parties
to the dispute, or by a federal ociety to which the society is zLFfiliated. or
by a creditor of the society, to the .tegistrar, if the parties thereto are from
amongst the following:—
(a) a societ_ its committee, any past committee, any past or present caper.
any past or present nee’ol. nnv past or present servant or nominee
heir or legal representative of any deceased officer, deceased agent or
deceased servant of the society, or the Liquidator of the society;
(b) a member, past member or :1 person claiming through a member, past
member or a deceased member of a society, or a society which is
a member of the society‘
(c) a person, at than a i mher of the society, who has been granted a
loan by th. society. or With whom the society has or had transactions
under the provisions of section 416, and any person churning through
such a DETSDU‘,
(d) a surety of a member, 1 'ist in
armor or a deceased member, or aJlerson
other than. member been granted a loan by the nTJClEiy under
u tion ~16. whether st '11 :1 . oty is or is not a member of the society:
(a) any other society, or the Liquidator of such a society.
‘ .vlve‘ihz'r for the purpo oi. subsection (1) a
m‘n or not, the quen’hon shall lie considered
.3 in 1.
any question
ll to for L1- i‘i
rim a dispute 'li incindo—
lit: at iiulli
. 1
ii.
v owing tn 1 f”.
' muted (11‘ not;
a sum -:~ 9m
'1'111
X86
THE GAL.ILTTEl Or INDIA EXTRAORDINARY {PART II—
(iii) a claim by a society for any loss caused to it by a member, past mem-
ber or deceased member, by any officer, past officer or deceased
officer, by any agent, past agent or deceased agent, or by any -servant,
past servant or deceased servant, or by its committee, past or present,
whether such loss be admitted or not;
(iv) a refusal or failure by a member, a past member or a nominee, heir
or legal representative of a deceased member, to deliver possession to
a society of land or any other asset resumed by it. for breach of cone
ditions of the assignment.
Explanation IL—For the purposes of this section, the expression "agent" in-
cludes in the case of a housing society, an architect, engineer or contractor engaged
by the society.
97. Limitation.—(l) Notwithstanding anything contained in the Limitation Act,
1963 (36 of 1963), but subject to the specific provisions made in this Act, the period
of limitation in the case of a dispute referred to the. Registrar under section 96
shall— %liar
(a) when the dispute relates to the recovery of any sum, including interest'
thereon due to a society by a member thereof, be computed from. the
date on which such member dies or ceases to be a member of the
society;
(b) when the dispute is between a society or its committee, and . any
past committee, any past or present officer, or past or present agent,.
or past or present servant or the nominee, heir or legal representa-
tive of a deceased officer, deceased agent or deceased servant of. the
society, or a member, or past member, or the' nominee, heir or legal
representative of a deceased member, and when the dispute. relates to
any act or omission on the part of either party to the dispute. he six
year's' from the date on which the act or omission with reference to
which the dispute arose, took place;
(c) when the dispute is in respect of any matter touching th; constaitien,-
management or busiiless of a society which has been ordered -4 be .4'
wound up under section 107, or in respect of which a nominated cbm-
mittee or an administrator has been appointed under section 81, be six
- years from the date of the order issued under section 107, or. section
81, as the case may be;
(d) when the dispute is in respect of an election of any office-bearer of a
society, be two months from the date of the declaration of the result
of such election.
(2) The period of limitation in the case of any dispute other than those men-
tioned in sub-section (1) which are required to be referred to the Registrar under
section 96 shall be regulated by the provisions of the Limitation. Act, 1963 (36 of
1963), as if the dispute were a suit, and the Registrar a Civil Court.
.(3) Notwithstanding anything. contained in sub-sections (1) and (2), the
Registrar may admit a dispute after the expiry of the period of limitation if
the applicant satisfies him that he had sufficient cause for not 'referring the dis-
pute within such period, and the dispute so admitted shall be a dispute which
shall not be barred on the ground that the_ period of limitation - lied expired.
98. Settlement of disputes.—(1) If the Registrar is satisfied that any matter
referred to. him is a dispute, within the meaning of section 96 the Registrar shall
subject to the rules, decide the dispute himself, or refer it for disposal to a'
nominee, or a board of nominees. appointed by the Registrar:
Provided that no person who is connected with a dispute or with the society
at any stage or has previously inspected the society or audited its accounts shall
be appointed as a nominee or as member of the board of nominees, to settle the
dispute.
(2) Where any dispute is referred under sub-section (1) for decision to the
Registrar's nominee or board of nominees, the Registrar may at any time, for
reasons to be recorded in writing withdraw such dispute from his nominee, or
board of nominees, and may decide the dispute himself, or refer it again for deci-
sion to any other nominee, or board of nominees appointed by him.
(3) Notwithstanding anything contained in section 96, the Registrar may, if
he thinks fit, suspend proceedings in regard to any dispute, if the question at
issue between a society and a claimant or between different claimants is one
«in
THE (’ to}; H El Ui lNUiA E 'l'lL’tORiliNARl' [PART 11—
(iii) a claim by a society for any loss caused to it by a member, past inem»
her or deceased member, by any ofl'ioer, Dust officer or deceased
oflicer. by any agent, past agent or decease agent, or by any sort-ant,
past seivnnt or deceased servant. or by its committee, past or present,
whether such loss be admitted or not:
(iv) a refusal or failure by a member, it past member or a nominee, heir
or legal representative of a deceased member. to deliver p ssession to
a society of land or any other asset resumed by it for breach of com
clitions oi' the assignment.
Explanation II.—For the purposes of this section. the expression “agent” in~
clurles in the case of a housing society, an architect. engineer or contractor engaged
by the society.
9'7, Limitation.—tll Notwithstanding anything contain :1 in the Limitation Act.
1963 (36 of 19 3), but subject to the specific prowsions m' e in this Act. the period
of limitation . the case of a dispute rsierred to the Registrar under section 96
shale
(a) when the dispute ielates to the iecnvery of any sum, including interest
thereon due to a societv by a member thercof, be computed from the
date on which :uich member dies or ceases to be a member oi the
society:
03) when the dispute is between a society or its committee, and any
past. committee. any past or present officer, or past or present agent,
or past or present servant or the nominee, heir or legal representa-
tive of it deceased oil-leer, deceasad agent or deceased servant; ol' the
Society. or a member, or past member or the- nominee hair or legal
representative ci‘ a deceased member, : Ll when the dispute relates to
any act or omission on the part of either party to the dispute. be six
year's from the date on which the act or omission with reference to
which the dispute arose, took place;
to) when the dispute is in respect ul’ a v matter touching thg constitution.
management or husifiess'hf a soc ty which has been ordered a, be
wound up under section 107. or in respect ot‘ which a nominated. com-
mittee or an administrator has bee appointed under section Bl, he . x
years from the [late of the order lSJUZd under section 107, or section
81, as the case may be:
(d) when the dispute is in respect of an election of any office-bearer of a
society. be two months from the (late of the declaration of the result
of such election
(2) The period of limitation in the case at any dispute other than those men-
tioned in sub-section (1] which are required to be referred to the Registi‘ under
ss‘cticn 96 shall be regulated by the provisions of the Limitation Act, 1963 tafi of
1963), as if the dispute were a suit, and the Registrar a Civil Court.
(3) Notwithstanding anything contained in sub—sections (1) and \Ei. tire
Registrar may admit a dispute after the e‘piry of the period at limitation 'i
the applicant satisfies him that he had sulficiunt cause for not referring the d
pute within such period, and the dispute so admitted shall be a dispute \vl'u
shall not be barred on the ground that the period of limitation lfac'f expired.
h
98. Settlement of disputes—ti) if the RE’HJLI‘RI‘ is satisfied that any matter
ref ed to him is u dispu within the meaning of section 96 the Registrar .11
sub ct in the titles, decide the dispute himself. or refer it for disposal to a
non nee. ur a hnnrd of nominees. appointed by the Registrar: a
Provided that no pel‘non who is connected with it dispute or with the society
at any =tage or has previously iospectctl the society or audited itt aLCOLH‘i shall
be appointed “5 a nominee or as membor at the board of nomu L?.‘S to settle the
dispute.
(.2) V‘
Registl'a s
, any dispute is reforl‘ed under six tiori (1) for de |Sifin in the
mince or hoard u! n iiiees. the TL sitar may at any ' i’or
rocordetl it: wr - uh Ii puke from his nomin
nntl _m 1y rtct- ‘~ or refer it again for tlec'l
,i ‘IIiL‘a, rri' int/gt] by him.
as, the Registrar my: 1?
d1 mite. if t ques on at
rent claim-Hits is one
187
.Stc. 3 (ii)) THE GAZETTE OF INDIA EXTRAORDINARY
Involving complicated question of lal,v or fact, until the question has been tried
by a regular suit instituted by one of the parties or by the society. If any such
suit is not instituted within two months from the Registrar's order suspending
proceedings, the Registrar shall take action as is provided in sub-section (1).
99. Procedure for settlement of disputes and power of Registrar, his nominee
or board of . nominees.—(1) The• Registrar, or his nominee or board of nominees
hearing a dispute under section 98 shall hear the dispute in the manner prescribed,
and shall have power to summon and enforce attendance of witnesses including
the parties interested or any of them and to compel them to give evidence, and to
compel the production of documents by the same means and as far as
pcissible in the same manner as -Provided in the case of a CiVil Court by the Code
.of Civil Procedure, 1908. (V• of 1908).
(2) Except where a dispute involves complicated question of law or fact, no
legal practitioner in his capacity as a legal practitioner or as a person holding a
power of attorney shall be permitted to appear on behalf of any party at the
hearing of a dispute.
(3) (a) If the Registrar or his nominee or board of nominees is satisfied that
a person, whether he be a member of the society or not has acquired any interest
In the property of a person who is a party to a dispute, he may order that the
:person who has acquired the interest in the property may join as a party to the
dispute; and any decision that may be passed on- the reference by the Registrar
or his nominee or board of nominees shall be binding on the party so joined, in
the same manner as if he were an original party to the dispute.
(b) Where a dispute has been instituted, in the name of the wrong person or
where all the defendants have been not included, the Registrar or his nominee or
:board of nominees may, at any stage of the hearing of the dispute if satisfied that
the mistake was bona fide, order any other person to be substituted or added as
a plaintiff or a defendant, upon such terms as he thinks just.
(c) ,The Registrar, his nominee or board of nominees may, at any stage of the
nroced.4.dings, either upon or without the application of either party, and on such
tern-,.s as may apnear to the Registrar, his nominee or board of nominees, as the
case may be, to be just, order that the name of any party improperly joined whe-
ther as plaintiff or defendant be struck out, and that the name of any person who
ought to have been joined whether as plaintiff or defendant or whose presence
before the Registrar, his nominee or board of nominees, as the case may be, maY
be necessary in order to enable the Registrar_ his nominee or board of nominees
effectually and completely to adjudicate upon and settle all the questions involved
in the dispute, be added.
(d) Any person who is a party to the dispute and entitled to more than one
relief in respect of the same cause of action may claim all-or any -61 such reliefs;
but if he omits to claim all such reliefs, he shall not forward a claim for any
relief so omitted, except with the leave of the Registrar, his nominee or board
of nominees.
100. Attachment before award.—(1) Where a dispute has been referred to the
Registrar or his nominee or board of nominees under section 98 or under section
110. or where the Registrar or the person authorised under section 93 hears a per-
son against whom charges are framed under that section, the Registrar or his
nominee or board of nominees, or as the case may be, the person so authorised.
under section 93 if satisfied on enquiry or otherwise that a party to such dispute
or against whom proceedings are pending under section 93 with intent to defeat.
delay or obstruct the execution of any award or the carrying out of any order that
may be made,—
(a) is about to dispose of whole or any part of his property, or
(b) is about to remove the whole or any part of his property from the
jurisdiction of the Registrar,
may, unless adequate security is furnished, direct conditional attachment of the
said property -ind such attachment shall have the same effect as if made by 'a
competent Civil Court.
(2) Where a direction to attach property is issued under sub-section (1) the
Registrar, his nominee or board of nominees or the person authorised under
section 93 shall issue a notice calling upon the person whose property is so attached
to furnish such security within such period as may be specified in the notice; and
if the person fails to provide the security so demanded, the Registrar or his nomi-
nee or board of nominees or, as the case may be, the person authorised under
6&2,
Ii 01‘ lNDlA E‘L‘l'lL—iORDIN \RY [S7
are. 3 (ii); THE
involving coniplicated'question of law or fact, until the question has been tried
by a regular suit instituted by one oi the parties or by the society If any such
suit is _not instituted Within two months from the Registrar's order suspending
proceedings, the Registrar shall t: action as is provided in sub-section (1).
99. Procedure for settlement of disputes aunt power of Registrar, his nominee
or board of nominees.~(l) The Registrar, or his nominee or board of nominees
hearing a dispute under section 98 shall hear the dispute in the manner prescribed,
and shall have power to summon and enforce attendance of witnesses including
the parties interested or any of them and to compel them to give evidence, and to
compel the production of documents by the same means and as far as
possible in the same manner as provided in the case of a Civil Court by the Code
of Civil Procedure. 190E. (V of 1903),
(2) Except where a dispute involves complicated question of law or fact. no
legal practitioner in his capacity as a legal practitioner or as a person holding a
power of attorney shall be permitted to appear on behalf of any party at the
hearing of a dispute.
(3) (a) If the Registrar or his nonu’nee or board of nominees is satisfied that
a person. whether he be a member of the society or not has acquired any interest
in the property of a person who is a party to a dispute, he may order that the
‘ rson who has acquired the interest in the property may join as a 1party to the
dispute; and any decision that may be passed on' the reference by t e Registrar
or his nominee or board of nominees shall be binding on the party so joined, in
the same manner as if he were an original party to the dispute.
(b) Where a dispute has been instituted, in the name of the wrong person or
where all the defendants have been not included. the Registrar or his nominee or
board of nominees may‘ at any stage of the hearing of the dispute if satisfied that
the mistake was hmm fills. order any other person to be substituted or added as
a plaintiff or a defendant. upon such terms as he thinks justl
(cl The Registrar. his nominee or hoard of nominees may, at any stage of the
proceedings, either upon or without the application of either party, and on such
to ' .is may appear to the Registrar, his nominee or board of nominees. as the
r: e may he‘ in he just, orrler that the name of any party improperly joined whe—
ther as plaintiff or defendant he struck out, and that the name of any person who
ought to have been ioined whether as plaintiff or defendant or whose presence
before the Registrar‘ his nominee or board of nominees, as the case may be, may
be necessary in order to enable the Registrar his nominee or board of nominees
effectually and complete! to adjudicate upon and settle all the questions involved
in the dispute. he added.
(:1) Any person who is a party to the dispute and entitled to more than one
relief in respect of the some cause of action may claim ali'or any of such reliefs;
but if he omits to claim all such reliefs, he shall not forward a claim for any
relief so omitted, except with the leave of the Registrar, his nominee or board
of nominees,
100. Attaclnnont before award—4'1) Where a (llspute has been referred to the
Registrar or his nominee or board of nominees under section 98 or under section
110. or where the Registrar hr the person authorised under section 93 hears a per-
son against whom charges are from :1 under that section‘ the Registrar or his
nominee or board of nominees, or the case may he, the person so authorised
under so tion 923 ii‘ satisfied 0 En v or otherwise that a party to such dispute
or against whom proceeding are pending under section 93 with intent to defeat,
t. the execution of any :\ ward or the carrying out of :my order that
' about to rii"
.lblttlt lo
’ , ctimi
.rtI/V or
wrcpmtn‘ [19.11 the
any putt of his pro
of
or row pm
ci (:0 *
All have the ;
fill of the
made My a
12) Whore med under
iir-nistr his n or the per» U
cocoon n the person «ml-lioseprolzerty' xo it
ori r n 1y he specifiedin tin: notice;
m n
‘ ~ mimi—
)|.‘ 1'11 ul
.oriscd u; .
in. he Flat. or i!
THE GAZETTE(OF INDIA EXTRAORDINARY [PART HI,
section 93 may confirm the order and, after the decision in the dispute or the com-
pletion of the proceedings referred to in sub-section (1) may direct the disposal
of the property so attached towards the claim if awarded.
(3) Attachment made under this section shall not affect the rights subsisting
prior to .the attachment of the property, of persons not parties to the proceedings
in: connection with which the attachment is made, or bar any person holding a
decree prior to such attachment against the person whose property is so attached
from applying for the sale of the property under attachment in execution of such
decree. .
101. Decision of Registrar or his nominee, or board of nominees.—When a dis-
pute is referred to the Registrar for decision, he or his nominee or board of nomi-
nees may, after giving a reasonable opportunity to the parties to the dispute to
be heard, make an award on the dispute, an the expenses incurred by the parties
to the dispute in connection with the proceedings, and the fees and expenses pay-
able to the Registrar or his nominee or, as the case may be, board of nominees.
Such -an award shall not' be invalid merely on the ground that it was made after
the expiry of the period fixed by the Registrar,- for deciding the dispute and shall,
subject to appeal or review or revision, be binding on the parties to the dispute.
102. Appeal against decision of Registrar or his nominee or board of nomi-
nees.—Any party aggrieved by any decision of the Registrar or his nominee or
board of nominees under section 101 or an order passed under section 100 may,
within two months from the date of the decision or order, appeal to the Tribunal
103. Money how recovered.--Every order passed by the Registrar or a person
authorised by him under section 93, or by the Registrar, his nominee or board of
nominees under section 100 or 101, every order passed in appeal under section 102,
every order passed by a Liquidator under section 110, every order passed by the
Administrator in appeal against orders passed under section 110, and every older
passed in revision under section 155, shall, if not carried out,--
(a) on a certificate signed by the Registrar or a Liquidator, be deemed to.
be a decree of a Civil Court, as defined in clause (2) of section.2 of
the Code of Civil Procedure, 1908 (V of 1908) and shall be execirte4 in
the same manner as a decree of such Court, or
(b) be executed according to the provisions of the Land Revenue Code and.
the rules thereunder for the time being in force for the recovery of
arrears of land revenue:
Provided that, any application for. the recovery in such manner of any such
sum shall be made to the Mamlatdar, and shall be accompanied by a certificate
signed by the Registrar, or by any Assistant Registrar to whom the said power has
been delegated by the Registrar. Such application shall be made within twelve
years from the date fixed in the order and if no such date is fixed, from the date
of the order.
104. Private transfer of property made after issue of certificate void against
society.--Any private transfer or delivery of, or encumbrance or charge on, pro-
perty made or created after the issue of the certificate of the Registrar, Liquidator,
or Assistant Registrar, as the case may be, under section 103 shall be null and
void as against the society on whos-e application the said certificate was issued.
' 105. Transfer of property which cannot be sold.—(1) When in execution of an
order sought to be executed under section 103 any property cannot be sold for
want of buyers, if such property is in occupancy of the defaulter, or of some
person in his behalf, or of some person claiming under a title created by the de-
faulter subsequently to the issue of the certificate of the Registrar. Liquidator or
the Assistant Registrar, under clause (a) or (b) of section 103, the Court or ,the.
Mamlatdar or the Registrar, as the case may be, may direct that the said propeagy
or any portion thereof shall be transferred to the society which has applied for the
execution of the said order, in the manner prescribed.
(2) Where property is transferred to the society under sub-section (1), or is
sold under the provisions of section 103, the Court, the Mamlatdar or the Registrar,
as the case may be, may, in accordance with the rules, place the society or the
purchaser, as the case may be, in possession of the property transferred or sold.
(3) Subject to the rules made in this behalf, and to any rights, encumbrances,
charges or equities lawfully subsisting in favour of any person, such property or
portion 'thereof shall be held under sub-section (1) by the said society on
such terms and conditions as may be agreed upon between the Court, the Marnlat-
dar or the Registrar, asi the case may be, and the said society. Subject to the
general or special orders of the Administrator, the Mamlatdar or the Registrar
THE} GAZETTEVOF INDIA EXTRAORDINARY [PART 1L"!
section 93 may confil‘m‘ the order and, after the decision in, the dispute or the com—
pletion of the proceedings referred to in sub-section (1) may direct the disposal
or the property so attached towards the claim it awarded.
. (3) Attachment made under this section shall not affect the rights subsisting
prior to the attachment of the property, of persons not parties to the proceedings
in connection with which the attachment is made, or bar any erson holding a
decree prior to such attachment against the person whose proper'y is so attached
gram applying for the sale of the property under attachment in execution of sLIch
ecree.
1-31. Decision of Registrar or his uomimcyor board of nonfinecs.~When a dis—
pute is referred to the Registrar for decision, he or his nominee or board of nonli-
nees l ay, after giving a reasonable opportunity to the parties to the dispute to
be he' rl, make an aw rd on the dispute. on the expenses incurred by the gentle:
to the dispute in connection with the proceedings and the fees and expenses pay-
able to the Registrar or his nominee or, as the case may he, board of nominees.
Such an award shall not be invalid merely on the ground that it was made after
the expiry of the period fixed by the Eagle ar,’ for deciding the dispute and shall,
subject to appeal or review or revision, be binding on the parties to the dispute.
102. Appeal against decision of Registrar or his nominee or board of nomi»
noes—Any party aggrieved by any decision of the Registrar or his nominee or
board of nominees under section 101 or an order passed under section 100 may,
within two months from the date of the decision or order, appeal to the Tribunal.
103. Money how recovered—Every order passed by the Registrar or a person
authorised by him under section 93, or by the Registrar, his nominee or board of
nominees under section 100 or 101, every order passed in appeal under section 102,
every order passed by a Liquidator under section 110, every order passed by the
Administrator~ in appeal against orders passed under section 110, and every order
passed in revrsron under section 155, shall, if not carried out—e
(a) on a certificate signed by the Registrar or a Liquidator, be deemed to
be a decree of a Civil Court, as defined in clause (2) of section g. of
the Code of Civil Procedure, 1908 (V of 1908} and shall be executed in
the same manner as a decree of such Court. or 1.
(b) be executed according to the provisions of the Land Revenue Co
the rules thereunder for the time being in force for the reel)»
arrears of land revenue:
and
y of
Provided that, any application for the recovery in such manner of any such
sum shall be made to the Mamlatdar, and shall be accompanied by a certificate
signed by the Registrar, or by any Aesistant Registrar to whom the said power has
been delegated by the Registrar. Such application shall be made within twelve
yfearls froréi the date fixed in the order and if no such date is fixed, from the date
0 tie or er.
104. Private trmfe‘: of ptnlmly made after issue of certificate void against
society.——A.ny private transfer or delivery of‘ Dr encumbrance or charge on, pro~
perty made or created after the issue of the certificate of the Registrar, Liquidator,
or Assistant Registrar. as the case may be. under section 103 shall be null and
void as against the society on whose application the said certificate was issued,
105. Transfer of property which cannot be sold—(1) When in execution of an
' to be executed under section 103 any property cannot be sold for
- such property is in occupancy oi the deiaulter, or of some
.lf, or of some person claixxfing under a title created by the do»
to the issue of the certificate of the Registrar Liquidator or
‘ under clause (a) or (b) of section 103, the Court: or
‘, as the case nay be. may direct that the said prop .
of shall be tra ieri d to the -ociety which has applied for U 0
cl order, in the manner prescribed.
is transferred to the society under subsection (1), or i.)
vi ons of section 103, the Court“ the Pviilfllatdar o the Registrar.
h . may, in accordance V ' 1 th rules, Uldce th '8th 01' the
cf the property tronst or sold.
(2) ‘
soil] under the
as the c .
purchaser, :
'. and to any rights. encumbrances,
“ of any person, such property or
rtion (1) in" the sa 1 society or.
between the Con ', the Multilat—
the sod sncict . Subjew to t e
. the Msmlutdcu or the RegL
be heir
' ' s 5 may he
general 0
1A
Sc.'E 3 (ii)] THE GAZETTE OF INDIA EXTRAORDINA 189.-
may delegate to an officer, not below the rank of an Assistant or Deputy Collector
or an Assistant Registrar powers exercised by the Mamlatdar or the Registrar.
under this section.
106. Recovery of crop loans.—(1) Notwithstanding anything contained in sec-
tions 96, 98 and 103 on an application made by a society undertaking the financing
of crops and seasonal finance for the recovery of arrears of any sum advanced by
it to any of its members on account of the financing of crop or seasonal finance
and on its furnishing a statement of accounts in respect of the arrears, the Regis-
trar may, after making such inquiries as he deems fit, grant a certificate for the
recovery of the amount stated therein to be due as arrears.
(2) Where the Registrar is satisfied that a society has failed to take action.
under sub-section (1) in respect of such arrears the Registrar may, of his own
motion, after making such inquiries as he deems fit, grant a certificate for the
recovery of the amount stated therein to be due as such arrears, and such a certi-
ficate shall be deemed to have been issued as if on an application made by the-
society concerned.
(3) A certificate granted by the Registrar under sub-section (1) or (2) shall
be final and a conclusive proof of the arrears stated to be due therein, which shall
be recoverable according to the provisions of the Land Revenue Code and of the
Rules thereunder for the time being in force for the recovery of land revenue.
(4) Until the arrears due to the Society together with interest and any inci-
dental charges incurred in the recovery of such arrears are paid, or security for
payment of such arrears is furnished to the satisfaction of the Registrar, it shall be-
lawful for the Mamlatdar and the Registrar to take the following precautionary
measures, namely: —
(i) to prevent the crop being removed from the land;
:(ii) (a)to require that the crop growing on any land liable to the payment.
• of arrears due to the society shall net be reaped until a notice
in writing is given to the Mamlatdar or the Registrar, as the case
may be, in this behalf, with an acknowledgment of its receipts;
(b) to direct that no such crop shall be removed from the land on
which it has been reaped or from any place in which it may have
been deposited without the written permission of the IVIamlatdar
or the Registrar;
(c) to cause watchmen to be placed for any such crop to prevent the
unlawful reaping, or removal of the same, and to realise the
amount required for the remuneration of the said watchmen at
such rate not exceeding the rate of pay received by such watch-
men as an arrear of land revenue due in respect of the land to.
which such crop belongs.
(5) The Mamlatdar's or Registrar's orders under sub-clause (a) or (b) of
clause (-ii) of . sub-section (4) may be issued .generally or in individual cases. If
the order be general, it shall be made known. by public proclamation to be made
by beat of drum in the village and by affixing a copy of the order in the Patelad
or some other public building in the village. If it be to individual holdersl,
notice thereof shall be served on each holder concerned.
(6) Any person who shall disobey any such order after the same has been so.
proclaimed, or a notice thereof has been served upon him, or who shall within the
meaning of the Indian Penal Code (45 of 1860), abet the disobedience of any such
order, shall be liable, on conviction after a summary inquiry before the Mamlatdar,
to a fine not exceeding double the amount of the land revenue due on the land
to which the crop belongs in respect of which the offence is committed.
(7) The Mamlatdar or Registrar, as the case may be, shall not defer the reap-
ing of the crop nor prolong its deposit unduly, so as to damage the produce, and
if within two months after the crop has been deposited the dues have net been
discharged, he shall either release the crop and proceed to realise the revenue in
any other manner authorised by law, or take such portion thereof as he may deem.
fit for sale in the prescribed manner and realise the rest.
are
SEC. 500] THE GAZETTE OF INDIA EXTRAORDINA 189.
may delegate to an officer, not below the rank of an Assistant or Deputy Collector
or an Aggistant Registrar powers exercised by the Mamlattlar or the Registrar
under this section.
106. Recovery of crop loans—’1) Notwithstanding anything contained in sec-
tions 96, 98 and 103 on an application made by a society undertaking the financing
of crops and seasonal finance for the recovery of arrears of any sum advanced by
it to any of its members on account of the financing of crop or seasonal finance
and on its furnishing a statement of accounts in respect of the arrears. the Regis-
try may, after making such inquiries as he deems fit, grant a certificate for the
recovery of the amount stated therein to be due as arrears.
(2‘) Where the Registrar is salisfiefl that a society has failed to take action
under sub—section (1) in respect of such arrears the Registrar may, of his own
motion, after making such inquir .s as he deems fit, grant a certificate for the
recovery of the amount stated therein to be due as such arrears, and such a certi-
ficate shall be deemed to have been issued as if on an application made by the-
society concerned.
(3) A certificate granted by the Registrar under sub-section (1) or (2) shall
be final and a conclusive proof of the arrears stated to be due therein. which shall
be recoverable according to the provisions of the Land Revenue Code and of the
Rules thereunder for the time being in force for the recovery of land revenue.
(4) Until the arrears due to the Society together with inter ‘t and any inci<
dental charges incurred in the recovery of such arrears are paid, or security for
payment of such arrears is furnished to the satisfaction of the Registrar, it shall be
lawful for the Mamlatdar and the Registrar to take the following precautionary
measures, namely:—
(i) to prevent the crop being removed from the land;
(ii) (a) to require that the crop growing on any land liable to the payment
of arrears due to the society shall not be reaped until a notice
in writing is given to the Memlatdar or the Registrar, as the case
may be, in this behalf, with an acknowledgment of its receipts;
(b) to direct that no such. crop shall be removed from the land on
which it has been reaped or from any place in which it may have
been deposited without the written permission of the Manilatclar'
or the Registrar;
(c) to cause watchmen to be placed for any such crop LO prevent the
unlawful reaping, or removal of the same, and to realise the.
amount required for the remuneration of the said watchmen at
such rate not exceeding the rate of pay received by such watch—
men as an arrear of land revenue due in respect of the land to:
which such crop belongs.
(5) The Mainlatdafs or Registrar‘s orders under sub-clause (:1) or (b) of
clause (ii) of sub—Section (4) may be ‘ sued generally or in ind' idual cases. If
the order be general. it shall be made town by public procln. ation to be made
by heat of drum in the village and by a] ring a copy of the i n the Peielad
or some other public bu rig in the , llaze. if it he to . . .11 hold. ., a
notice thereof shall be se ved on ruch holder concerned.
, uch order ‘Lfihfl‘ Ln um: has. been so
,V "1 a, red upon h m. or x i shall within the
‘3 or mom. abet the disobedience of any such
orc hall la) liable. on com summary inquiry l fore the Mumlntrlnr,
to u HUD not exceeding double the 01 the land x ue clue on the land
to which the Crop belongs in respect m“ which the olfence l committed,
('72 The V‘llnlatd'ir m‘ l“ 1
L flutter int: Heap—
the .
e produce and
- il‘le'} not aim
discharged, he s . ‘ ll mac w] in 1 iso the revenue in
any otncr manner authorised by law, or take such portion thereof as he may deem.
fit for sale in the . ascribed manner and realise the rest
THE GAZETTE OF INDLA EXTRAORDINARY
[PART ti—
CHAPTER X.
LIQUIDATION
107. Winding up.—(1) If the Registrar,—
(a) after an inquiry, has been held under section 88, or an inspection has
been made under section 87, or on the. report of the auditor auditing
the accounts of the society, or
(b) on receipt of ap application made upon a resolution carried by three-
fourths of the members of a society present at a special general meet-
ing called for the purpoSe, or
(c) of his own motion, in the case of a society which—
(i) has not commenced working, or
(ii) has ceased working, or
(iii) possesses shares or members? deposits not exceeding five hundred
rupees, or
(iv) has ceased to comply with any condition as to registration and
management in this Act or the rules or the by-laws,
is of the opinion that a society ought to be wound up, he may make an interim
,order directing it to be wound up.
(2) Where an interim order is made on a ground specified in clause (a) or
..sub-clause (iv) of clause (c) of sub-section (1) a copy thereof shall be communi-
cated, in the prescribed manner, to the society calling upon it to submit its ex-pla-
nation to the Registrar within a month from the date of the issue of such order.
(3) The Registrar, after giving an opportunity to the society of being heard,
.shall make a final order, vacating or confirming the interim order.
108. Appointment of Liquidator.--(1) When an interim or final order is made
under section 107 for the winding up of a society, the Registrar may, in accord-
ance with the rules, appoint a person to be the liquidator of the society and fix
his remuneration.
(2) Where an interim order is made the officers of the society shall hand over
to the liquidator the custody and control of all the property, effects and actionable
:claims to which the society is or appears to be entitled, and of all books, records
..and other documents pertaining to the business of the society. and, shall have no
access to any of them.
(3) When a final order is made confirming the interim order, the officers of the
society shall vacate their offices, and while the winding up order remains in force,
the general body of the' society shall not exercise any powers.
(4) The liquidator shall,' subject to the general control of. the Registrar, exer-
cise all or any of the powers mentioned in section 110. The Registrar may remove
him from his office and appoint another in his place, without assigning any reastan teV
(5) The whole of the assets of the society shall on the appointment of the
'liquidator vest in him and notwithstanding anything contained in any law for the
time, being in force, if any immovable property is held by him on behalf of:the
society, the title over the land shall be complete as soon as the mutation of
name of his office is effected, and no Court shall question the title on the ground
of dispossession, want of possession or physical delivery. of possession.
(6) In the event of the interim order being vacated, the liquidator shall hand
over the property. effects, actionable claims. books, records and other documents
of the society to the officers who had delivered the same to him. The acts done,
and the proceedinas taken by the liquidator, shall be binding on the society, and
such proceedings shall, after the interim order has been vacated under section 107
be continued by the officers of the society.
100. Appeal against order of winding up.—(1) The committee, or any member,
of the society ordered to be wound up, may within two months from the date of
the communication to the society of the order made under section 107 appeal, if
the order is made by the Registrar, Additional Registrar or Joint Registrar to the
t»
90 THE GAZETTE OF INDIA EXTRAORDINARY [PART [I _
CHAPTER X.
LIQUEDATION
107, Winding nix—(1) If the Registrar,—
{,a) after an inquiry has been held under section 86, or an inspection has
been made under section 37, or on the report of the auditor auditing
the accounts of the society, or
(b) on receipt of an application made upon a resolution carried by three
tourths of the members oi‘ a society present at a special general meet-
ing called for the purpose. or -
(c‘: of his own motion. in the case of a society Whiche-
(i) has not commenced working, or
(ii) has ceased working, or
(iii) possesses shares or menibers’ deposits not exceeding five hundred
rupees, 01‘
(iv) has ceased to comely with any condition as to registration and
management in this Act or the miles or the lay-laws,
is of the op’nion that a society ought to be wound up, he may make an interim
«order directing it to be wound up.
(Bl Where an interim order is made on a ground specified in clause (a) or
sub luuse (iv) of clause (c) of sub—section (1) a copy thereof shall be communi‘
cite , in the prescribed ma er, to the society calling upon it to submit its explm
nation to the Registrar within a month from the date of the issue of such order.
(3) The Regisir r, after giving an opportunity to the society of being heard,
’1 make a final order, vacating or confirming the interim order. ‘
1‘8 Appointment of Liquidator.———(l) When an interim or final order is inade
undo; ection 107 for the winding up of a society. the Registrar may, in accord.
ance With the rules, appoint a person to be the liquidatoi' of the society and fix
his Temuneraiion.
(2‘; Where an interim order is made the officers of the society shell hand over
to the liquidator the custody and control of all the property, effects and actionable
claims to which the socie y ' or appears to be entitled, and of all books, records
and other documents perta iing to the business of the society and, shall have no
act: s to any of them,
L} When a final order made confirming the. interim order, the miners of, the
society shell vacate their ofilces. and while the jmnchne up order remains in force,
the general body of the society shall not exercme any poweis
(4) The Li uidaior shall. subject to the general control of the Registrar. exer—
all or any of the powers mentioned in section llO, ‘Tne Registrar may remove
it from “ office and appoint, another in hL; place, Without assigning any reason
c1
(5) The whole of the assets of the society shall on the appointment or the
liriuidator vest ‘ him and notwithstanding anything contaLned in any law for the
time "being in to] e, if any immovable property is held by him on behalf of the
cioty, the title in tile land shall be complete as soon as the mutation of {he
me ~‘ in oflic 1.: efiected, and no Court shall que ion the e on the ground.
2.! dispo ion, want of possession or pl yaical deliV Jtof p05 essi-Jn.
vacated, the liquicletor shall hair]
’2“K§, reeo d and other documents
ed the same to him. The acts done.
‘ rding on the no Ly, and
ruled under Ion 107
'6! 1n the event of the int
MW the pron riy. ofiects, actionab .
' i r‘ the officers who had
the proceeding: taken by ‘19 liquiCntor, nail
such hrocee<' , ‘ ‘1. after t ' ‘ ‘ '
be conti Lied officers of the society.
in
committee, or any member,
of the so' er date o:
“the no J “peel, \L
We err? Ji Registra , Additini rlll' to the
THE GAZETTE OF INDIA EXTRAORDINARY
Administrator or if the order is made by any other person on whom the powers of
the Registrar are conferred to the Registrar:
Provided that no appeal shall lie against an order issued under sub-clause (i),
(ii) or (iii) of clause (c) of sub-section (1) of section 107:
Provided further that, no appeal shall lie against an order passed by the Regis-trar on appeal.
(2) No appeal under this section shall be entertained from a member unless it
is accompanied by such sum as security for the costs of hearing the appeal, as may be prescribed.
110. Powers of Liquidator.—The Liquidator appointed under section 108 shall
have power, subject to the rules and the general supervision, control and direc-
tion of the Registrar,—
(a) to institute and defend suits and other legal proceedings, civil or cri-
minal, on behalf of the society, in the name of his office;
(b) to carry on -the business of the society, so far as may be necessary for the
beneficial winding up of the same;
(c) to sell the immovable and movable property and actionable claims of the
society by public auction or private contract, with power to transfer
the whole or part thereof to any person or body corporate, or sell the
same in parcels;
(d) to raise, on the security of the assets of the society, any money required;
(e) to investigate all claims against the society and, subject to the provisions
of the Act, to decide questions of priority arising out of such claims
and to pay any class or classes of creditors in full or rateably accord-
ing to the amount of such debts, the surplus being applied in payment
of interest from the date of liquidation at a rate approved by the
Registrar, but not exceeding the contract rates;
-U) to make any compromise or arrangement with creditors or persons claim-
ing to be creditors, or having or alleging themselves to have any
claim, present or future, whereby the society may be rendered liable;
(g) to compromise all calls or liabilities to calls and debts and liabilities
capable of resulting in debts, and all, claims present or future, certain
or contingent, subsisting or supposed to subsist between the society and
a contributory or alleged contributory or other debtor or person ap-
prehending liability to the society, and all questions in any way relat-
ing to or affecting the assets or the winding up of the society, on such
terms as may be agreed, and take any security for the discharge of any
such call, liability, debt, or claim, and give a complete discharge in
respect ;thereof;
-(h) to determine, from time to time, after giving an opportunity to answer
the claim, the contribution to be made or remaining to, be made by the members or past members or by the state. nominees. heirs or legal
representatives of deceased members, or by any officer, past officer or
the estate or nominees, heirs or legal representatives of a deceased
officer to the assets of the society, such contribution being inclusive of
debts due from such members or officers;
(i) to make applications under section 103;
(j) to get disputes referred to the Registrar for decision by himself or his
nominee or board of nominees;
(k) to determine by what persons and in what proportion the costs of the
liquidation shall be borne:
(1) to fix the time or times within which the creditors shall prove their debts
and claims or be included for the benefits of any distribution made
before those debts or claims are proved;
(m) to summon and enforce the attendance of witnesses and to compel the
production of any books, accounts, documents, securities, cash or other
properties belonging to or in the. custody of the society by the same
means and in the same manner as provided in the case of a Civil Court
under Code of Civil Procedure, 1908 (V of 1908);
t»,
w; “an"
. 76E)
siw. 3am THE GAZETTE or INDIA EXTRAORDINARY /191
Administrator or if the order is made by any other person on whom the ower of
the Registrar are conferred to the Registrar: p 5
”Provided that no appeal shall lie against an order issued under sub»clause (i),
(11) or (iii) oi clause (c) of sub—section (1) of section .107:
Provided further that, no appeal shall lie against an order passed by the Regis-
trar on appeal.
(2) No appeal under this section shall be entertained i'rom a member unless it
is accompanied by such sum as security for the costs of hearing the appeal, as
may be prescribed.
110. Powers of Liquidator.—The Liquidator appointed under section 108 shall
have power‘ subject to the rules and the general supervision, control and direc-
tion of the Registrar,—
(3) to institute and deionol suits and other legal proceedings, civil or cri-
minal, on behalf of the society, in the name of his olfice;
(b) to carry on the business of the society, so far as may be necessary for the
beneficial Winding up of the same;
to) to sell the immovable and movable property and actionable claims of the
society by public auction or private contract, with power to transfer
the whole or part thereof to any person or body corporate, or sell the
same in parcels;
(d) to raise, on the security of the assets of the society, any money required;
(9) to investigate all claims against the society and, subject to the provisions
of the Act, to decide questions of priority arising out of such claims
and to pay any class or classes of creditors in full or rateably accord—
ing to the amount of such debts, the surplus being applied in payment
of interest from the date of liquidation at a rate approved by the
Registrar, but not exceeding the contract rates;
it") to make any compromise or arrangement with creditors or persons claim—
ing to be creditors. or having or alleging themselves to have any
claim, present or future, whereby the society may be rendered liable;
(g) to compromise all calls or liabilities to calls and debts and liab' ' 'es
capable of resulting in debts. and allelaims present or future, certain
or contingent, subsisting or supposed to subsist between the society and
a contributory or alleged contributory or other debtor or person ap-
prehending liability to the society, and all questions in any way relat~
ing to or affecting the assets or the winding up of the society, on such
terms as may be agreed. and take any security for the discharge of any
such call, liabilityi debt. or claim. and give a complete discharge in
respect thereof;
(b) to determine, from time to time, after giving an opportunity to answer
the claim, the contribution to be made or remaining to be made by the
members or past members or by the state. nominees. heirs or legal
representatives of deceased members, or by any officer, past officer or
the estate or nominees, heirs or legal i'ep‘i'esentatives of a deceased
officer to the assets of the society, such contribution being inclusive or
debts due from such members or officers;
(i) to make applications under section 103;
(j) to get disputes referred to tl
_ Pecistrai' for decision by himself or his
nominee or board of heroine.
(k) to determine by what p
0:15 :nr] in what, proportion the costs of the
liquidation shall be Do
19
it) to fix the time or times
and claims or he inr
before those debts or cl
'lnin Wllit'h the creditors shall prove their debts
irl "l [or the benefits of any rlistrihiition mode
. we proved;
. s and to compel the
_ secuii ; or other
prune; ; bah) sing LU r. be HOCteiy by the mine
moms and in the same menu s provided in the case of a Civil Court
under Code of Civil Procedure, lUUE (V of 1003);
nroi liu
192
THE GAZETTE OF INDIA EXTRAORDINARY
(n) to do all acts, and to execute in the name and on behalf of the society,
all deeds, receipts and other documents, as may be necessary to such
winding up;
(o) to take such action as may be necessary under section 19, with the
prior approval of the Registrar, if there is reason to believe that the
society can be reconstructed.
111. Effect of order of winding up.—After the expiry of the period for appeal
under section 109 against the order made under sub-section (3) of section 107, or
where the appeal has been dismissed, the order for winding up shall be effective
and shall operate in favour of all creditors and of all the contributories of the
society, as if it had been made on the joint petition of creditors and contributories.
When a winding up order becomes effective, the liquidator shall proceed to realise
the assets of the society by sale or otherwise, and no dispute shall be commenced,
or if pending at the date of the winding up. order, be proceeded with, against the
society, except by leave of the Registrar and subject to such terifff-as the Registrar
may impose. The Registrar, may of his own motion, however, entertain or dispose-
of any dispute by or against the society.
112. Bar of suit in 'windin'g up and dissolution matters.—Save as expresSly
provided in this Act, no Civil Court shall take cognizance of any matter connected
with the winding up or dissolution of a society under this, Act; and when a winding
up order has been made no suit or other legal proceedings shall lie or be proceeded
with against the society or the liquidator, except by leave of the Registrar, and
subject to such terms as he may impose:
Provided that, where the winding up order is cancelled, the provisions of this
section shall cease to 'operate so far as the liability of the society and of the mem-
bers thereof to be sued is concerned, but they shall continue to apply to the person
who acted as liquidator.
113. Audit of Liquidator's accounts.—(i) The liquidator shall, during his tenure
of office, at such times as may be prescribed, but not less than twice each year,
present to the Registrar an account in the prescribed form of his receipts aleui pay-
ments as liquidator. The Registrar shall cause the accounts to be audited 4 such
manner as he thinks fit; and for the purpose of audit, the liquidator shall furnish
the Registrar with such vouchers and information as he, or the person appointed
by him, may require.
(2) The liquidator shall cause a summary of audited accounts to be prepared,
and shall send a copy of such summary to every contributory.
(3) The liquidator shall pay such fees as the Registrar may direct, for the audit
of the accounts and books kept by him in the manner prescribed.
(4) The liquidator shall be held liable for any irregularities which might be
discovered in the course or as a result of audit in respect of transactions subsequent
to his taking charge of the affairs of the society, and may lo-e proceeded against as
If it were an act against which action could be taken under section 93:
Provided that, no such action shall be taken unless the irregularities have caused
or are likely to cause loss to the society, and have occurred due to gross negligence
or wanton omission by the liquidator, in carrying out the duties and functions. "aily
114. Termination of liquidation proceedings.—(1) The winding up proceedings of
a society shall be closed within three years from the date of the order of the wind-
ing up, unless the period is extended by the Registrar:
Provided that, the Registrar shall not grant any extension for a period excMd-
ing one year at a time and four years in the aggregate, and shall, immediately after
the expiry of seven years from the date of the order for winding up of the society,
deem that the liquidation proceedings have been terminated, and pass an order
terminating the liquidation proceedings.
Explanation.—In the case of a society which is under liquidation at the date of
the commencement of this Act, an order for the winding up of the society shall be
deemed for the purpose of this section to have been passed on the said date.
(2) Notwithstanding anything contained in sub-section (I) the Registrar shall
terminate the liquidation proceedings on receipt of the final report from the liqui-
dator. The final report of the liquidator shall state that the liquidation proceedings
of the society have been closed, and also state how the winding up has been con-
ducted and the property and claims of the society have been disposed of, and shall
•
192 THE GAZETTE or INDLA EXTRAORDINARY [ramifi—
(n) to do all acts, and to execute in the name and on behalf of the society,
all deeds, receipts and other documents, as may be necessary to such
winding up;
(0) to take such action as may be necessary under section 19, with the
prior approval of the Registrar, if there is reason to believe that the
society can be reconstructed.
111. Effect of order of Winding up.—After the expiry of the period for appeal
under section 109 against the order made under sub-section (3) of section 107, or
where the appeal has been dismissed, the order for winding up shall be cfiective
and shall operate in favour of all creditors and of all the coutrihutories of the
society, as if it had been made on the joint petition of creditors and contributories.
When a winding up order becomes edective, the liquidator shall proceed to realise
the assets of the society by sale or otherwise, and no dispute shall be commenced,
or if pending at the date of the winding up order, he proceeded with, against the
society. except by leave of the Registrar and subject to such ternis‘as the Registrar
may impose The Registrar, may of his own motion. however, entertain or dispose
of any dispute by or against the society,
112. Bar of suit in winding up and dissolution matters—Save as expressly
provided in this Act no Civil Court shall take cognizance of any matter connected
with the whnding up or dissolution of a society under this Act; and when a winding
up order has been made no suit or other legal proceedings shall lie or he proceeded
with against the society or the liquidator, except by leave of the Registrar, and
subject to such terms as he may impose:
Provided that, where the winding up order is cancelled, the provisions of this
section shall cease to operate so far as the liability of the society and of the mem-
bers thereof to be sued is concerned, but they shall continue to apply to the person
who acted as liquidator.
1131 Audit of Liquidators accounts—(i) The liquidate): shall, during his tenure
of oflice, at such times as may be prescribed, but not less than twice each year,
present to the Registrar an account in the prescribed form of his receipts and pay—
ments as liquidatori The Registrar shall cause the accounts to be audited/m such
manner as he thinks fit; and for the purpose of audit, the liquidator shall furnish
the Registrar with such vouchers and information as he, or the person appointed
by him, may require
(2) The liquidator shall cause a summary of audited accounts to be prepared,
and shall send a copy of such summary to every contributory.
(3) The liquidator shall pay such fees as the Registrar may direct, for the audit
ot'. the accounts and books kept by him in the manner prescribed
(4) The liquidator shall be held liable for any irregularities which might be
discovered in the course or as a result of audit in respect of transactions subsequent
to his taking charge of the afiairs of the society, and may he proceeded against as
if it were an act against which action could be taken under section 93:
Provided that, no such action shall be taken unless the irregularities have caused
or are likely to cause loss to_the society, and have occurred due to gross negligence
or Wanton 01111551an by the liquidator, in carrying out the duties and functions.
114. Termination of liquidation proceedings—(1) The winding up proceedings of
a society shall be closed within three years from the date 0! the order of the wind-
ing up. unless the period is extended by the Registrar:
Provided that, the Revistrar shall not grant any extension for a period excifld-
ing one year at a time and [our years in the aggregate, and shall, immediately after
the expiry of seven years from the date of the order for winding up of the society,
deem that the liquidation proceedings have been terminated, and pass an order
terminatinv the liquidation proceedings.
whom—In the case of a society which is under liquidation at; the date or
ncement of th l\C_i.‘ an r ‘ for the Windln" up of the society shall be
- the purpose or this scct ‘ in be; d on the said (later
(22‘, Not\
terminati
dates.
of the so ’21" 1131
ducted and ill: ,
Registrar “hall
t .
'-
'A
SEC. 3 (ii)] THE GAZETTE OF INDIA EXTRAORDINARY
I93
include a statement showing a summary of the account of the winding up including
the cost of liquidation the amount, if any; standing to the credit of the society,
after paying off its liabilities including the share or interest of members, and shall
suggest how the surplus should be utilised.
(3) The Registrar, on receipt of the final report from the liquidator, shall direct
the liquidator to convene a general meeting of the members of the society for
recording the report.
115. Disposal of surplus assets.—Any surplus assets, as shown in the final report
of the liquidator of a society which has been wound up, shall not be divided,
amongst its members but shall be devoted to any object or objects provided in the
by-laws of the society, if they specify that such a surplus shall be utilised for the
particular purpose. Where the society has no such by-law, the surplus shall vest
in the Registrar, who shall hold it in trust and shall transfer it to the reserve fund
of a new society registered with a similar object, and serving more or less an area
which the society to which the surplus belonged was serving:
Provided that, where no such society exists or is registered within three years of
the cancellation of the registration of the society whose surplus is vested in the
Registrar, the Registrar may distribute the surplus in the manner he thinks best,
among any or all of the following:—
(a) an object of public utility and of local interest as may be recommended
by the members in general meeting held under section 114 or where
the society has ceased to function and its record is not available or
none of its members is forthcoming, as the Registrar thinks proper;
(b) any charitable purpose as defined in section 2 of the Charitable Endow-
ments Act, 1890. (VI of 1890).
CHAPTER XI
LAND MORTGAGE BANKS
116. Application of chapter to certain Land Mortgage Banks.—This Chapter shall
apply"') Land Mortgage Banks advancing loans, other than short term loans, for
the purposes herein enumerated that is to any—
(i) land improvement and productive purposes;
(ii) the erection, rebuilding or repairing of houses for agricultural purposes;
(iii) the purchase or acquisition of title to agricultural lands by tenant pur-
chasers or tenants under the Bombay Tenancy and Agricultural Lands
Act. 1948, (Bom. LXVII of 1948) or any corresponding law for the
time being in force; or
(iv) the liquidation of debts under the Bombay Agricultural Debtors Relief
Act, 1947, (Born. XXV-III of 1947), or any corresponding law for the
time being in force.
Explanation 1.—For the purposes of this section a 'short term loan means a loan
for a duration of less than 18 months.
Explanation 2.—Land improvement and productive purposes mean any work,
construction or activity which adds to the productivity of the land • and, in parti- •
cular,. includes the following, that is to say—
(a) construction and repair of wells (including tube wells), tanks and other
works for the storage, supply or distribution of water for the purpose
of agriculture, or for the use of men and cattle employed in agriculture;
. (b) renewal or reconstruction of any of the foregoing works, or alterations
therein, or additions thereto;
(c) preparation of land for irrigation;
(d) drainage, reclamation from rivers or other waters, or protection from
floods or from erosion or other damage by water, of land used for
agricultural purposes, or waste land which is cultivable;
(e) bunding and similar improvements;
(f) reclamation, clearance and enclosure or permanent improvement of land
for agracultural purposes;
(g) horticulture;
(h) purchase of oil-engines. purnpi.i?: sets and electrical motors for any of
the purposes mentioned heroin;
(i) purchase of tractors or other agricultural machinery;
w x
“to” >
,/
SEC. 3(ii)] THE GAZETTE OF INDIA EXTRAORDINARY —” i93
include a statement showing a summary of the account oi the Winding up including
the cost of liquidation, the amount, if aux/standing to the credit of the society,
after paying all its liabilities including the share or interest of members, and shall
suggest how the surplus should be utilised.
(3) The Registrar, on receipt oi the final report from the liquidatur, shall direct
the liquidator to convene a general meeting of the members of the society for
recording the report. '
» 115. Disposal of Surplus assets—Any surplus assets, as shown in the final report
of the liquidator of a society which has been wound up, shall not be divided,
amongst its members but shall he devoted to any object or objects provided in the
lay—laws ol’ the society, if they specify that such a surplus shall be utilised for the
particular purpose. Where the society has no such by—law, the surplus shall vest
in the Registrar. who shall hold it in trust and shall transfer it to the reserve fund
of a new society registered with a similar object, and serving more or less an area
which the society to which the surplus belonged was serving:
Provided that, where no such society exists or is registered within three years at
the cancellation oi the registration of the society whose surplus is vested in the
Registrar. the Registrar may distribute the surplus in the manner he thinks best,
among any or all of the following:—
(a) an object of public utility and of local interest as may be recommended
by the members in general meeting held under section 114 or where
the society has ceased to function and its record is not available or
none of its members is forthcoming, as the Registrar thinks proper;
(b) any charitable purpose as defined in section 2 of the Charitable Endow-
ments Act, 1890. (VI of [890).
CHAPTER XI
LAND NIGHTGAGE BANKS
116, Application of chapter to certain Land Mortgage Banks—This Chapter shall
apply‘“) Land Mortgage Banks advancing loans. other than short term loans, for
the purposes herein enumerated that is to any;
(1) land improvement and productive purposes;
(ii) the erection, rebuilding or repairing of houses ‘lor agricultural purposes;
(iii) the purchase or acquisition of title to agricultural lands by tenant pur-
chasers or tenants under the Bombay Tenancy and Agricultural Lands
Art. 1048, (Born. LXVII of 1948) or any corresponding law for the
time being in force; or
(iv) the liquidation of debts under the Bombay Agricultural Debtors Relief
Act, 1947, (Born. XXV-III of 1947). or any corresponding law for the
time being in force.
Explanation l.—For the purposes of this section a short term loan means a loan
(or a duration of less than in months.
Explanation 2,—Land improvement and productive purposes mean any work,
construction or activity which adds to the productivity of the land 'and. in parti-
cular, includes the following, that is to say—
(a) construction and repair of \veiis (including tube wells), tanks and other
worksfor the storage. supply or distribution of water for the purpose
of agriculture, or for the use of men and cattle employed in agriculture;
lb} ran val or reconstruction of ny of the foregoing works. or alterations
. rain, or additions the-rota,
ii of land '
tion [mm
4] use'l tor
‘ ps-i’nmnen‘: inmr'mem“ M of land
my lmrvimrll: iv ,
til) out“ any of
31 94
THE GAZETTE OF INDIA EXTRAORDINARY
(j) increase of the productive capacity of land by addition to it of any
special variety of soil;
(k) construction of a permanent farm-house, cattle-sheds, and sheds for pro-
cessing of agricultural produce at any stage;
(1) purchase of machinery for crushing sugarcane, manufacturing gur or
khandsari or sugar;
(m) purchase of land for consolidation of holdings under the Bombay Preven-tion of Fragmentation and Consolidation of Holdings Act, 1947, (Born.
LXII of 1947) or any other corresponding law for time being in force;
(n) such other purposes as the State Government may, from time to time, by
notification in the Official Gazette, declare to be land improvement or
productive purposes for the purpose of this Chapter.
117. Definitions.—In this Chapter unless the context otherwise requires:--
to() "Land Mortgage Bank", means a Co-operative Bank registered or deemed\
be registered under this Act, and to which this Chapter applies; 'itow
(2) "Primary Land Mortgage Bank," me and Mortgage Bank recognised
as Primary Land Mortgage Bank by the Registrar
(3) "State Land Mortgage Bank", means a Land Mortgage Bank for the whole of the Union territory of Dadra and Dagar Haveli and recognised as such by the
Registrar.
118. Appointment, powers and functions of Trustee.—(1) The Registrar or where
the Administrator appoints any other person in this behalf, such person, shall be the
Trustee for the purpose of securing the fulfilment of the obligations of the State
Land Mortgage Bank to the holders of debentures issued by the State Land Mort-
gage Bank.
(2) The Trustee shall be a corporation sole, by the name of the Trustee,. for the debentures in respect of which he is appointed, and, as such, shall have perpetual
succession and a common seal, and in his corporate name may sue and be Okted.
(3) The powers and functions of the Trustee shall be governed by .the provisions
.
of this Act, and the instrument of trust executed between the State Land Mortgage
Bank and the Trustee, as modified from time to time by mutual agreement between
the State Land Mortgage Bank and the Trustee.
119. Issue of debentures.—(1) With the eeevious sanction of the Central Govern-
ment and the Trustee, and subject to the rules, the State Land Mortgage Bank in
the discharge of its functions issue debe:-...ures of such denominations, for such
period, and at such rates of interest, as it may deem lxpedient on the security of
the mortgages, or mortgages to be acauired or partly on mortgages held and partly
on those to be acquired and properties and other assets of its land mortgage business.
(2) Every debenture may contain a term fixing a period not exceeding thirty
years from the date of issue during which it shall be redeemable, or reserving to
.the committee .the right to redeem at any time in advance of the date fixed for
redemption, after giving to the holder of the debenture not less than three months'
notice in writing. *aro
(3) The total amount due on debentures issued by the State Land Mortgage
Bank, and. outstanding at any time, shall not exceed—
(a) where debentures are issued against mortgages held, the aggregate
(i) the amounts due on the mortgages;
(ii) the value of the properties and other assets transala or deemed to
have been transferred under section 124 by the Primary Land Mort-
gage Banks to the State Land Mortgage Bank and subsisting at such
time; and
(iii) the amounts paid under the mortgages aforesaid and the unsecured
amounts remaining in the hands of the State Land Mortgage Bank
or the Trustee at the time:
(b) where debentures are issued otherwise than on mortgages held, the total
amount as calculated under clause (a) increased by such portion of the
amount obtained on the debentures as is not covered by a mortgage.
/7{94 THE GAZETTE OF INDIA EXTRAORDINARY [PAM 'S—-
(j) increase of the productive capacity of land by addition to it of any
special variety of soil;
(k) construction of a permanent farmhouse, cattle-sheds, and sheds for pro-
cessing or agricultural produce at any stage:
(1) purchase of machinery for crushing sugarcane, manufacturing gm
khandsm‘i or sugar;
(in) purchase of land for consolidation of holdings under the Bombay Preven«
tion of Fragmentation and Consolidation of Holdings Act,_194‘_7, (Born.
LXII of 1947) or any other corresponding law for time being in force;
(11) such other purposes as the State Government may, from time to time, by
notification in the Ofi‘icirtl Gazette, declare to be land improvement or
productive purposes [or the purpose of this Chapter.
01'
117. Definitions—In this Chapter unless the context otherwise requires:—
(1) “Land Mortgage Bank”, means a Co—operative Bank registered or deemedv
to be registered under this Act, and to which this Chapter applies;
(2) “Primary Land Mortgage Bank,” means a Land Mortgage Bank recognised
as Primary Land Mortgage Bank by the Registrar:
(3) "State Land Mortgage Bank”, means a Land Mortgage Bank for the whole of
the Union territory of Dadra and Nagar Havell and recognised as such by the
Registrar.
118. Appointment, growers and {motions of Trustc (l) The Registrar or where
the Administrator appoints any other person in this he alf, such person, shall he the
Trustee for the purpose of securing the fulfilment of the obligations of the State
Land Mortgage Bank to the holders of debentures issued by the State Land Mort-
gage Bank.
l2} The Trustee shall be a corporation sale, by the name of the ‘Trustee for the
debentures in respect of which he is appointed, and, as such, shall have perpetual
succession and a common seal, and in his corporate name may sue and be shed.
(PA The Powers and functions of the Trustee shall be governed by the provisions
Act, and the instrument of trust executed between the State Land Mortgage
cl tb. Trustee, as modified Erom time to time by mutual agreement between
ite Land Mortgage Bank and the Trustee.
119. issue of flehentnres.——(l) With the ' cvious so! ‘on of the Central Govern-
menl and the Trustee, and subject to tho \les, the S e Land Mortgage Bank in
the scharge of its functions issue deb ‘es of s denominations," for such
peril, . and at such rates of interest, as may deem '3, pedient on the security of
the mortgages. or mortgages to be acquired or partly on mortgages held and partly
on those to be acquired and properties and other assets of its lzuid mortgage business
(2) Every debenture may contain a term fixing a period not exceeding thirty
years from the date oi issue during which it shall be redeemable. or reserving to
.the committee the right to redeem at any time in advance of the date fixed for
rede" otion‘ after givmg to the holder of the debenture not less than three months'
notice in writing,
The total amount due on debentures issued by the State Land Mortgage
. and outstanding at any time. shall not exceed7
(a) where debentures are issued against mortgages held, the aggregate mi
(i) the amounts due on the mortgages:
(ii) the Value of the properties and other assets tran'sterreél or deemed to
have been transferred under sect'on 124 by the Primary Laud Mort-
gage Banks to the State Land Mortgage Bank and subsisting at such
time; and
(it?) the amounts held under the mortgages aforesaid and the unsecured
amounts; 1‘0 minim; in the hands of the State Land Mortgage Bank
or the Tru, at the time:
on mortgages held. the total
i used by such portion of the
s not covered by a mortgage.
Eebentures are
aunt as calculnta
amount obtained on the
UTA) :vlm-
“~—
3
“a
SmS (ii)] THE GAZETTE OF INDIA EXTRAORDINARY
120. Guarantee by Central Government.—The principal of, and interest on, the
debentures issued under section 119 shall, to such maximum amount as may be fixed
by the Central Government and subject to such conditions as the Central Govern-
ment may think fit to impose, carry the guarantee of the Central Government.
121. Vesting of property in trustee and debenture holders' charge on assets.—
Upon the issue of debentures under the provisions of section 119, the mortgaged
properties and other assets referred to in sub-section (3) of section 119 held by the
State Land Mortgage Bank shall vest in the Trustee; and the holders of debentures
shall have a floating charge on all such mortgages and assets, and on the amount
paid under such mortgages and remaining in the handy of the State Land Mortgage
Bank or of the Trustee.
122. Priority of mortgage,—(1) A mortgage executed in favour of a land mort-
gage bank shall have priority over any claim of the Government arising from a
loan granted after the execution of the mortgage under the Land Improvement
Loans Act, 1883 (IX of 1883), or the Agriculturists' Loans Act, 1884 (XII of 1884),
or any other law for the time being in force.
(2) Notwithstanding anything contained in the Bombay Tenancy and Agricul-
tural Lands Act, 1948 (Born. XLV-II of 1948), or any other corresponding law for
the time being in force, where a mortgage in favour of a land mortgage bank is
in respect of land in which a tenant has an interest, the mortgage may be against
the security of such interest, and the rights of the mortgagee shall:-not be affected
by the failure of the tenant to comply with the requirements of such 'Taw, and the
sale of the land and tenant's interest therein under such law shall be subject to
the prior charge of the land mortgage bank.
123. Order granting loans conclusive of certain matters.—A written order by the
Land Mortgage Bank, or persons or committees authorised under the bye-laws of
the Bank to make loans for all or any of the purposes specified in section 116 grant-
ing, either before or after the commencement of this Act, "a--foan to or with the
consent of, a person mentioned therein, for the purpose of carrying_out. the work
specified therein, for the benefit of the land or for the productive•-fmrpose specified
therein,, shall for the purposes of this Act be conclusive of the following matters
that is to say,—
(a) that the work described or the purpose for which the loan is granted,
is an improvement or productive purpose, as the case may be, within the meaning
of section 116 ;
(b) that the person had at the date of the order a right to Make such an
improvement, or incur expenditure for productive purpose, as the case may be;
and
(c) that the improvement is one benefiting the land specified and the
productive purpose concerns the land offered in security, or any part thereof as
may be relevant.
124. Mortgages executed in favour of Primary Land Mortgage Banks to
stand vested in State Land Mortgage Bank.—The mortgages executed in favour of,
and all other assets transferred to a Primary Land Mortgage Bank by the members
thereof shall, with effect from the date of such execution or transfer, be deemed
to have been transferred by it to the State Land Mortgage Bank and shall vest
in the State Land Mortgage Bank.
125. Registration of mortgage in favour of Land Mortgage Banks.—Notwith-
standing anything contained in the Indian Registration Act, 1908 (XVI of 1908) it
shall not be necessary to register mortgages executed in favour of the Land
Mortgage Banks, provided that the Land Mortgage Bank concerned sends within
such time and in such manner as may be prescribed, a copy of the instrument
whereby immovable property is mortgaged for the purpose of securing repayment
Of the loan to the Registering Officer within the local limits of whose jurisdiction
the whole or any part of the property mortgaged is situate. Such Registering
Officer shall file a copy or copies as the case may be in his Book No. 1 prescribed
under section 51 of the Indian Registration Act, 1908(XVI of 1908).
126. Mortgages not to be questioned on insolvency of mortgagors.—Notwith-
standing anything contained in the Presidency-towns Insolvency Act, 1909 (III of
1909) or the Provincial Insolvency Act, 1920 (V of 1920) or any corresponding
law for the time being in force, a mortgage. executed in favour of a land mortgage
bank, shall not be called in question on the ground that it was not executed in
good faith for valuable consideration, or on the ground that it was executed in
order to give the bank a preference over other creditors of the mortgagor.
v _ KW
sm‘ S(ii)] THE GAZETTE. or INDIA EXTRAORDINARY $295
120. Guarantee by Central Government—The principal of, and interest on, the
debentures issued under section 119 shall, to such maximum amount as may be fixed
by the Centrnl Government and subject to such conditions as the Central Govern-
ment may think lit to impose, carry the guarantee a: the Central Government.
121. Vesting of property in trustee and debenture holders’ charge on assets.—
Upon the issue of debentures under the provisions of section 119, the mortgaged
properties and other assets referred to in sub-section (3) of section 119 held by the
State Land Mortgage Bank shall vest in the Trustee: and the holders of debentures
shall have a floating charge on all such mortgages and assets, and on the amount
paid under such mortgages and remaining in the hand's' or the State Liand Mortgage
Bank or of the Trustee
122. Priority of mortgagor—(l) Amongage executed in favour of a land mort-
gage hank shall have priority over any claim of the Government arising from a
loan granted after the execution of the mortgage under the Land Improvement
Loans Act, 1883 (IX of 1883), or the Agriculturists’ Loans Act, 1884 (XII of 1884),
or any other law for the time being in force.
(2) Notwithstanding anything contained in the Bombay Tenancy and Agricul-
tural Lands Act. 1948 (Bum. XLV~II of 1948). or any other corresponding law for
the time being in force, where a mortgage in favour of a land mortgage bank is
in respect of land in which a tenant has an interest. the mortgage may be against
the security of such interest. and the rights or the mortgagee shallinot be affected
by the failure of the tenant to comply with the requirements of such law. and the
sale of the land and tenant’s interest therein under such law shall be subject to
the prior charge of the land mortgage bank.
123, Order granting loans conclusive of certain modern—A written order by the
Land Mortgage Bank, or persons or committees authorised under the bye-laws of
the Bank to make loans for all or any of the purposes specified in section 116 grant-
ing. either before or after the commencement of this Act, 'aToan to or with the
consent of, a person mentioned therein, for the purpose of carrying_out,tbe work
specified therein. for the benefit at the land or for the productive purpose specified
tgereimtshall for the purposes of this Act be conclusive of the following matters
a is 0 say,—
(II) that the work described or the purpose for which the loan is granted,
is an improvement or productive purpose, as the case may be, within the meaning
of section 116 ;
(b) that the person had at the date of the order a right to make such an
imgrovement, or incur expenditure for productive purpose, as the case may be;
an
(e) that the improvement is one benefiting the land specified and the
productive purpose concerns the land offered in security, or any part thereofi as
may be relevant,
124. Mortgages executed in favour of l’rimary Lam] Mortgage Banks to
stand vested at State Land Mortgage Benin—The mortgages executed in favour of,
and all other assets transferred to a Primary Land Mortgage Bank by the members
thereof shall, with Effect from the date of such execution or transfer, be deemed
to have been transferred by it to Lhe State Land Mortgage Bank and shall vest
in the State Land Mortgage Bank.
125‘ Registration of mortgage in titvour of Land Mortgage Banks—Notwith—
standing anything Contained in the Indian Registration Act, 1908 (XVI of 1908) it
shall not be necessary to register mortiages executed in favour of the Land
Mortgage B'mks, pr icled that the I l Mortgage Bank concerned sends within
slush ti re and in such manner as m y be prescribed, a copy of the instrument
whore-by immovable proper is marten for the purpose of se ‘ ' vment
of the lorm to the Registering Olfi or v in the local limits of Whose iuil ’ '
the whole or any part ol' 1: pro n'ty mortgnrz‘etl is situate. Such l'l
hall file :1 copy or Co t e vase l he in his Book No, 1 pres lbcd
ion 51 of the Indian R _ lSlOiHXVI or" 1008).
imil’. .n insolvent-y ot‘ mortgagor
solvency Art
12 Mortguwes not to he mar ——Notwil‘h—
, r
e contwn {1 in lA
l ilwncv
, H mm
mg i for o: ruled in »,
hank. shall not ‘ , callud in (mm on ‘he ground that it was not exec ted in
good faith [or val .able considcrn .on. or on the ground that it was executed in
order to give the bank a preference over other creditors of the mortgagor.
l14
1196 THE GAZETTE OF INDIA EXTRAORDINARY [PART
127, Right of land mortgage bank to pay prior debts of mortgagor. 1)
Where a mortgage is executed hi favour of a land mortgage bank for' .payment. of
prior debts of the mortgagor, the land mortgage bank shall, notwithstanding, sany-
thing contained in the Transfer of Property Act,. 1882 (IV of 1882) by notice in
writing, require any person to whom any such debt is due, to receive payment of
such debt or part thereof from the bank at its registered office, within such period
as may be specified in the notice.
(2) Where any such person fails to accept such notice or, to receive such
payments, such debts or part thereof, as the case may be, shall cease to carry
interest from the expiry of the period specified in the notice :
Provided that, where there is a dispute as regards the amount of any such debt,
the person to whom such debt is due shall be bound to receive payment of the
amount offered by the land mortgage bank towards the debt, but such receipt shall
not prejudice the right, if any, of such person to recover the balance claimed by
him.
128. Mortgages executed by managers of joint Hindu families.—(1) Where
a mortgage [other than a mortgage to which sub-section (2) applies] executed in
favour of a land mortgage bank either before or after the commencement of this
Act, is called in question on the ground that it was executed by the manager of
a joint Hindu family for a purpose not binding on the members thereof whether
such. members have attained majority or not the burden of proving the same shall,
notwithstanding any law to the contrary, lie on the party raising it.
(2.) A mortgage, executed in favour of a land mortgage bank or the State
Land Mortgage Bank by the manager of a joint Hindu family in respect of a
loan advanced by such bank for the improvement of agricultural land or of the
methods of cultivation, or for financing any other means to raise the productivity
of the land, or for the purchase of land, shall be binding on every member of
such joint Hindu family, notwithstanding any law to the contrary.
129. Restrictions on .lease.—(1) Notwithstanding anything contained in the
Transfer of Property Act, 1882(IV of 1882) or any other law for the time being
in force, no mortgagor of property mortgaged to a land mortgage bank, shall,
except with the prior consent in writing of the bank and subject to such tefTns and
conditions as the bank may impose, lease or create any tenancy rights on 5sf, such
property :
Provided that, the rights of the bank shall be enforceable against the lessee
or the tenant, as the case may be, as if he himself was a mortgagor.
(2) Where land mortgaged with possession to a land mortgage bank, is in.
actual possession of a tenant, the mortgagor or the mortgagee bank shall give notice
to the tenant to pay rent to the bank during the currency of the lease . and the
mortgage, and on such notice being given, the tenant shall be deemed to have
attorned to the bank.
130. Section 8 of Act XXXII of 1956 to apply to mortgages to Land Mort-
gage Banks, subject to certain modifications.—Section 8 of the Hindu Minority
and Guardianship Act, 1956, shall apply to mortgages in favour of a Land Mort-
gage Bank, subject to the modification that any reference to the court therein shall
be construed as reference to the Mamlatdar or his nominee, and the appeal against
the order of the Collector or his nominees shall lie to the Collector, Dadra and
Nagar Haveli.
131. Power of Primary Land Mortgage Bank to receive money and give,
discharge.—Notwithstanding anything contained in section 124, all moneys due
under the mortgage shall, unless otherwise directed by the State Land Mortgage
Bank or the Trustee and communicated to the mortgagor, be payable by the most-
gagor to the Primary Land Mortgage Bank and such payments shall be as-v; ad
as if the mortgage had not been so transferred under that section and the Primary
Land Mortgage Bank shall in the absence of any specific direction to the contrary
issued by the State Land Mortgage Bank or the Trustee and communicated to it
be entitled to sue on the mortgage or take any other proceeding for the recovery
of the moneys due under the mortgage.
132. Powers of land mortgage bank where mortgaged property is destroyed
or security becomes insufficient.—(1) Where any property mortgaged to a land
mortgage bank is wholly or partially destroyed, or the security is rendered in-
sufficient for any other reason, and the mortgagor, having been given a reasonable
opportunity by the bank of providing further security enough to render the whole
security sufficient, or of repaying such portion of the loan as may be determined
- l’ 3‘
{(6 {195 ‘ THE GAZETTE or mom EXTRAORDLNARY [PART 11
\J
127, Right of land mortgage bani; to pay prior debts of m0rtgugor.—'1)
Where a mortgage is executed in favour of a land mortgage bank for payment of -
prior debts of the mortgagor, the land mortgage hank shall, notwithstanding any-
thing contained in the Transfer of Property Act, 1882 (IV of 1832) by notice in
writing, require any person to whom any such debt is clue, to receive payment of
such debt or part thereof from the bank at its registered office, within such period
as may be specified in the notice.
(2) Where any such person fails to accept such notice or, to receive such
payments, such debts or part thereof, as the case may he, shall cease to carry
interest from the expiry of the period specxfied in the notice :
Provided that, wh re there is a hispute as regards the amount oi any such debt, ”.1
the person to whom 11 debt is due shall be bound to receive payment of the
amount offered by the land mortgage bani: towards the debt, but such receipt shall
not prejudice the right, if any, of such person to recover the balance claimed by
him.
123. Mortgages ezecuted by managers of joint Hindu families—(l) Where
a mortgage [other than a mortgage to which sub-"action (2) applies] executed in
favour of a land mortgage batik either beiorc or after the commencement of this iv
Act, is called in question on the ground that it was executed by the manager of
a joint Hindu family for .1 pLu‘pose not bindingr on the memh" theceoi whether
such members have attained majority or no). the burden of pr 5 the same shall.
notwithstanding any law to the contrary. lie on the party raising it.
(2') A mortgage, executed in favour of a land mortgage bank or the State
Land Mortgage Bank by the manager of a joint Hindu family in respect of a
loan advanced by such bank for the improvement of agricultural land or oi Lhe
methods of cultivation, or for financing any other means. to raise the productivity
of the Land, or for the purchase of land1 shall be binding on every member or
such joint Hindu family, notwithstanding any law to the contrary. (
129. Restrictions on lease.—(l) Notwithstanding anything contained in the
Transfer of Property Act. 1882(1V of 1882) or any other law for the time being
in force, no mortgagor of property mortgaged to a land mortgage hank, shall,
except with the prior consent in Writing of the bank and subject to such tei'us and
conditions as the bank may impose, lease or create any tenancy rights on art! such ,
property : W
Provided that, the rights of the bank shall be enforceable against the lessee
or the tenant, as the case may be, as if he himself was a mortgagor.
(2) Where land mortgaged with possession to a land mortgage bank, is in
actual possession of a tenant, the mortgagor or the mortgagee bank shall give notice
to the tenant to pay rent to the bank durine the currency of the lease and the
mortgage, and on such notice being given: the tenant shall be deemed to have
attornetl to the bank.
130. Section 8 of Act XXXII! of 1956 to apoly to mortgages to Land Mort-
gage Banks, subject to certain modifioziiioas.—Section 8 of the Hindu Minority
and Guardianship Act, 1956, shall apply to mortg es in favour of a Land Mort»
gage Bank, subject to the modification that any rcfe: age to the court therein shall
be construed as reference to the Mamiatdar 01 his nominee. and the appeal against
Lhe O‘TiFl‘ of the Collector or his nominate l lie lo the Coil . Dacha and
Nagai .13 l.
l3l. Power of Primary Land Mortgage Bank to receive money and give
discharge.~Notwithstanding anything contained in section 124, all moneys due
under the mortgage shall, unless otherwise directed by the State Land Mortgage
Bank or the Trustee and com mcatecl to the mortgagor, be payable by the m 7't-
gagor to the Primary Land Mortgage Bank and such payments shall be as“ id
as if the mortgaao had not been .so transferred under that section and the Prime
L1 Mortgage Bank shall in the absence of any snecific direction to the conirv
ed by the State Land Mortgage Bank or the Trustee and COmiTlLiniCaiEd to it
' on the mortga e or take any other proceeding for the recovery
of llie moneys due under the m ‘tgage.
fl mortgage bank Wham morigagefi proaorty is Liesu‘oycd
*. , . cl to ,Iguid
i having be 11 c on a r
enough to render the w ole
. Lt til. loan as , ay be dolerm zed
lit for a; j 0th, reason, and the mo .g
opp tuniLy by the bank of provnhng further
secuuly sufficient, or of repaying such norh
SEC, 8 (ii)] THE GAZETTE OF INDIA EXTRAORDINARY 197
by the bank, has failed to provide such security or to repay such portion of the
loan, the whole of the loan shall be deemed to fall due at once, and the bank shall
be entitled to take action against the mortgagor under section 133 or section 134
for the recovery thereof.
(2) A security shall be deemed insufficient within the meaning of this
section, unless the value of the mortgaged property exceeds the amount for the
time being due on the mortgage by such. proportion as may be specified in the
rules or the by-laws of the land mortgage bank.
133, Power to distrain.-.-(l) If any instalment payable under a mortgage
executed in favour of a land mortgage bank, or any part of such instalment, has
remained unpaid for more than one month from the. date on which it fell due,
the committee of such bank may, in addition to any other remedy available to
the bank, apply to the Registrar for the recovery of such instalments or part
thereof by distraint and sale of the produce of the mortgaged land, including the
standing crops thereon.
(2) On receipt of such application, the Registrar may, notwithstanding anything
contained in the Transfer of Property Act, 1882 (IV of 1882), Take- action in the
manner prescribed for the purpose of distraining and selling such produce subject
to the prior charge of the society:
Provided that, no distraint shall be made after• the expiry of twelve months
from the date on which the instalment fell due.
(3).- The value of the property distrained shall as nearly as possible be equal
to the amount due and the expenses of the distraint and the costs of the sale.
134. Sale of mortgaged property.—(1) Notwithstanding anything contained in
the Transfer of Property Act, 1882 (V of 1882), the land mortgage bank or any
person possessing the prescribed qualifications and authorised by the bank in this
behalf shall, in case of default in payment of the mortgage money or any part
thereof, have power, in additiont to any other remedy avlailable to the bank, !to
bring the mortgaged property to sale by public auction in the village in which
the mortgaged property is situated or at the nearest place of public resort, without
the intervention of the Court such sale shall be effected in accordance with the
presq..5ed procedure.
(2) No power under sub-section (1) shall be exercised, unless and until—
(a) notice in writing requiring payment of such mortgage money or part
thereof has been served upon—
(i) the mortgagor or each of the mortgagors,
(ii) any person who has any interest in or charge upon the property mort-
gaged, or in or upon the right to redeem the same so far as, is known
to the bank.
(iii) any surety for the payment of the mortgaged debt or any part thereof,
and
(iv) any creditor of the mortgagor who has in a suit for administration of
his estate obtained a decree for sale of the mortgaged property, and
(b) no payment of such mortgaged money or part thereof, has been made till
the expiry of three months, after service of the notice.
(3) If the Primary Land Mortgage Bank fails to take action against the mort-
gagor under section 132, section 133 or under this section, the State Land Mortgage
Bank may direct it to take appropriate action and where no action is taken by
the Primary Land Mortgage Bank, the State Land Mortgage Bank, may take such
action and where the State Land Mortgage Bank fails to take action, the Trustee
r,tiay direct it to take such action and where no action is taken thereupon by the
State Land Mortgage Bank, the Trustee may take such action.
135. Right of mortgage bank to billy 2nortgaged property.—(1) Notwithstanding
anything contained in any law for the time being in force, it shall be lawful for a
land mortgage bank to purchase any mortgaged property sold under this Chapter
and the property so purchased may be disposed of by such bank by sale within
such period as may be fixed by the Trustee, subject to the condition that such
sales shall be in favour only of .agriculturists eligible to hold land under the
Bombay Tenancy and Agricultural Lands Act, 1948 (Born. r..,..xvn of 1948), or any
cormsponding law for the time being in. force or may be leased out by them on
such terms and conditions as may be laid down by the Administrator from time to
time.
Cl 2
Sm. can] THE GAZETTE OF INDIA EXTRAORDINARY 0/ 197
by the bank, has failed to provide such security or to repay such portion or the
loan, the whole of the loan shall be deemed to fall due at once, and the bank shall
be entitled to take action against the mortgagor under section 133 or section 134
for the recovery thereof.
(2) A seclu‘ity shall be deemed insufficient within the meaning or this
section, unless the value of the mortgaged property exceeds the amount for the
time heirn;l due on the mortgage by such proportion as may be specified in the
rules or the lay-laws of the land mortgage bank.
133, Power to dist nine-(1) If any instalment payable under a mortgage
executed in favour of a land mortgage bank, or any part of such instalment, has
remained unpaid for more than one month from the date on which it fell clue,
the committee of such bank may, in addition to any other remedy available to
.the bank. apply to the Registrar for the recovery of such instalments or part
thereof by distraint and sale of the produce of the mortgaged land, including the
standing crops thereon.
(2) On receipt of such application, the Registrar may, notwithstanding anything
contained in the Transfer of Property Act, 1882 (IV of 1882), take‘ action in the
manner prescribed for the purpose of distraining and selling such produce subject
to the prior charge of the society:
Provided that, no distraint shall be made after the expiry of twelve months
from the date on which the instalment fell clue.
(3) The value of the property distrnined shall as nearly as possible be equal
to the amount due and the expenses of the clistraint and the costs of the sale.
134, Sale of mortgaged property—{1) Notwithstanding anything contained in
the Transfer of Property Act, 1882 (V of 1882), the land mortgage bank or any
person possessing the prescribed qualifications and authorised by the bank in tlns
behalf shall, in case of default in payment of the mortgage money or any part
thereof, have power, in additionl to any other remedy available to the bank, to
bring the mortgaged property to sale by public auction in the village in which
the mortgaged property is situated or at the nearest place of public resort, Without
the int vention of the Court such solo shall be effected in accordance with the
pres d procedure.
(2) No power under subsection (1} shall be exercised, unless and until—
(u) notice in writing requiring payment of such mortgage money or part
thereof has been served upon—
(i) the mortgagor or each of thc mortgagors.
(iii any person who has any interest in or charge upon the property mort~
gaged, or in or upon the right to redeem the same so far as. is known
to the bank.
(iii) any surety for the payment of the mortgaged debt or any part thereof,
and .
(to) any creditor of the mortgagor vuh has in a suit for administration of
his estate obtained a decree for sole of the mortgaged property, and
(b) no payment of such mortgage-
' or part thereof, has been made till
the expiry of three months, Liter ser '
:3 notice.
('3) If the Primary Land Mortgage Bani; fails to take action against the mort-
gagor under s ction 132, section 133 - under Lids section, the State Land Mortgage
Bani: may direct it [0 take approp 2: action and where no action is taken h.
the Primary Land Mortgage Bank, the State Land Mortgage Bank, may take suc
action and where the State Land Mortgage Bani; fails to take action, the Trustee
may di. act it to take uch or: on. where no action is taken thereupon by the
Stan: Land Mortg‘ \ Bank, the Vl‘ildniw' may take ouch action.
135. Want ol’ andrtguge ' d property.~(l) Zlotwitl landing
an; min ntnincd in a being in for e, it shall be lewlul for a
land Iago hook to nu g‘ngk‘tl property sold under this Chapter
( by such bunk w salx‘ within
I: to [he conrll 'on that such
lii b” ' rum only ble to hold laud under the
Tenancy and Agricultuml l u.‘ c 3 (Bom, LXVl'l of l 18), or any
ling law for in‘ ‘ ' 1 ice or nuy he leaned out by
. and conditions is , .. down by the Administrator from
such ..
time.
1; p
198 THE GAZETTE OF INDIA EXTRAORDINARY [PART II--
*IL
(2) Nothing in any law for the time being, in force fixing a maximum limit
of agricultural holdings, shall apply to the acquisition of land by a land mortgage
bank under this section.
136. Confirmation of sale.—(1) On effecting a sale under section 134, the pri-
mary land mortgage bank shall, in the prescribed manner, submit to the State
Land Mortgage Bank and the Registrar a report setting forth the manner in which
the sale has been effected and the result of the sale, and the State Land Mortgage.
Bank may, with the approval of the Registrar, confirm the sale or cancel it.
(2) Where the sale is effected by the State Land Mortgage Bank or the Trustee
under section 134, the State Land Mortgage Bank or the Trustee, as the case may
be, shall in the prescribed manner, submit to the Registrar a report setting forth
the manner in which the sale has been effected and the result of the sale, and the
Registrar may confirm or cancel the sale :
Provided that where the Registrar is the Trustee, he shall submit such report
to the Administrator and the Administrator may confirm the sale or cancel it.
137. Disposal of sale proceeds.—The proceeds of every sale affected under
section 134 and confirmed under section 136, shall be applied first in payment
of all costs, charges and expenses incurred in connection with the sale or
attempted sales, secondly in payment of the interest due on account of the
mortgage in consequence whereof the mortgaged property was sold, and thirdly
in payment of the principal due on account of the mortgage including costs and
charges incidental to the recovery. If there remains any residue from the
proceeds of sale, the same shall be paid to the person proving himself interested
in the property sold, or if there are more such persons than one, then to such
persons upon their joint receipt or according to their respective interest therein,
as may be determined by the land mortgage bank :
Provided that, before any such payments are made—
(a) the unsecured dues owed by the mortgagor to the State Land Mortgage
Bank or Primary Land Mortgage Bank may be adjusted, ..and
(b) the unsecured dues 'owed by any members or past member of either
of the above mentioned banks to whom the --Mortgagor is intblated
may also be adjusted under the written authority given 15y such
member and past member, and after holding such inquiry as may be
deemed necessary.
138. Certificate to purchaser, delivery of property and title of purchaser.—
(1) Where a sale of mortgaged property has become absolute under section 136
and the sale proceeds have been received in full by the land mortgage bank,
the bank shall grant a certificate to the purchaser in the prescribed form certifying
the property sold, the sale price, the date of its sale, the name of the person
who at the time of the sale is declared to be the purchaser, and the date on
which the sale became absolute; and upon the production of such certificate
the Sub-Registrar appointed under the Indian Registration Act, 008 (XVI of 1908)„
within The limits of whose jurisdiction the whole or any part of the property
specified in such certificate is situated, shall enter the contents of such certificate
in his register relating to immovable property.
(2) (a) Where the mortgaged property sold is in the occupancy of the
mortgagor, or of some person on his behalf, or some person claiming under
a title created by the mortgagor, subsequent to the mortgage in favour of the
State Land Mortgage Bank or the land mortgage bank, and a certificate in respect
thereof has been granted under sub-section (1) the Court shall, on the application
of the purchaser, order delivery to be made by putting such purchaser or any
person whom he may appoint to receive delivery on his behalf in possession' of tke
property.
(b) Where the property sold is in the occupancy of a tenant or other person
entitled to occupy the same, and a certificate in respect thereof has been granted
under sub-section (1) the Court shall, on the application of the purchaser and
after notice to such tenant or other person. order the delivery to be made ,by
affixing copy of the certificate of sale in a conspicuous place on the property and
proclaiming to the occunant by beat of drum or other customary mode at some
convenient olace that the right, title and interest of the mortgagor have been
transferred to the purchaser.
(3) Where any property is sold in the exercise or purported exercise of power
of sale under section 134, the title of the purchaser shall not be questioned on the
05)
{98 THE GAZETTE OF INDIA EXTRAORDINARY [PART H—-—
w
(2). Nothing in any law for the time being in force fixing a maximum limit
of agricultural .holdings, shall apply to the acquisition of land by a land mortgage-
bank under this section.
135. Confirmation of sale—(1) On effecting a sale under section 134. the pri-
mary land mortgage bank shall, in the prescribed manner, submit to the State
Land Mortgage Bank and the Registrar a report setting forth the manner in which
the sale has been effected and the result of the sale, and the State Land Mortgage
Bank may, With the approval of the Registrar, confirm the sale or cancel it.
(2) Where the sale is effected by the State Land Mortgage Bank or the Trustee
under section 134, the (State Land Mortgage Bank or the Trustee, as the case may
be, shall in the prescribed manner, submit to the Registrar a report setting forth
the manner in which the sale has been effected and the result of the sale, and the
Registrar may confirm or cancel the sale:
Providedthat where the Registrar is the Trustee, he shall submit such report
to the Administrator and the Administrator may confirm the sale or cancel it.
137‘ Disposal of sale proceeds—The proceeds of every sale afiected under
section 134 and confirmed under section 136, shall be applied first in payment
of all costs: charges and expenses incurred in connection with the sale or
attempted sales, secondly in payment of the interest due on account of the
mortgage in consequence whereof the mortgaged property was sold, and thirdly
in payment of the principal due on account of the mortgage including c053 and
charges incidental to the recovery. If there remains any residue from the
proceeds of sale, the same shall be paid to the person proving himself interested
in the property sold, or if there are more such persons than one, then to such
persons upon their joint receipt or according to their respective interest therein,
as may be determined by the land mortgage bank:
Provided that, before any such payments are made—
(a) the unsecured dues owed by the mortgagor to the State Land Mortgage
Bank or Primary Land Mortgage Bank may be adjusted, and
(b) the unsecured dues owed by any members or past member of‘ either
of the above mentioned banks to whom the ‘mortgagor is irfliebted
may also be adjusted under the written authority given by such
member and past member, and after holding such inquiry as may be
deemed necessary.
138 Certificate to purchaser, delivery of property and title of purchaser.—
(1) Where a sale of mortgaged property has become absolute under section 136
and the sale proceeds have been received in full by the land mortgage bank,
the bank shall grant a certificate to the purchaser in the prescribed form certifying
the property sold, the sale price, the date of its sale, the name of the person
who at the time of the sale is declared to he the purchaser, and the date on
which the sale became absolute; and upon the production of such certificate
the Sub-Registrar appointed under the Indian Registration Act, 1903 (XVI of 1908),
within the limits of Whose jurisdiction the whole or any part of the property
specified in such certificate is situated, shall enter the contents of such certificate
in his register relating to immovable property.
(2) (a) Where the mortgaged property sold is in the occupancy of the
mortgagor, or of some person on his behalf, or some person claiming under
a title created by the mortgagor, subsequent to the mortgage in favour of the
State Land Mortgage Bank or the land mortgage bank. and a certificate in respect
thereof has been granted under sub-section (1) the Co 1 shall. on the application
of the purchaser, order delivery to he made by putting such purchaser or any
person whom he may appoint to receive delivery on his behalf in possession of are
property.
(bl Where the property sold is in the occupancy of a tenant or other person
entitled to ocrucy the same. and a certificate in resnect thereof has been granted
under sub-section (1) the Court shall, on the application oi the purchaser and
after notice to such tenant or other nerson, Ul'rler the delivery to be made by
affixing rooy of the certificate of sale in a conspicuous place on the property and
procl mine to the corn "ml by heat of drum or other customary mode at some
conv. nt oloce that the right, title and interest of the mortgagor have been
transferred to the purchaser,
(3) Where anv property is sold in the c}: .,e or purported exercise of power
of sale under section 134, the title or the purchaser shall not be questioned on the
,_;
Szc. 3 OW THE GAZETTE OFANDIA EXTRAORDINARY
ground that the circumstances required for authorising the sale had not arisen,
or due notice of the sale was not given, or the power of sale was otherwise
.- improperly or irregularly exercised.
139. Recovery of loans on Certificate by Registrar—(1) Notwithstanding,
anything contained in sections 96 and 103, on an application
made by a Land Mortgage Bank for the recovery of arrears of any sum advanced by it to any
of its members and on its furnishing a statement of accounts in respect of the
arrears, the Registrar may, after making such enquiries as he deems fit, grant a
certificate for the recovery of the amount stated therein to be due as arrears.
(2) A certificate by the Registrar under sub-section (1) shall be final and
conclusive as to the arrears due. The arrears stated to be due therein shall be
recoverable according to the law for the time being in force for the recovery of
arrears of land revenue.
(2) It shall be lawful for the Mamlatdar to take precautionary measures
authorized under sub-section (4) of section 106 until the arrears due to the Land
Mortgage Bank together with interest and any incidental charges incurred in the•
recovery of such arrears, are paid or security for such arrears is furnished to the
satisfaction of the Registrar.
(4) It shall be competent for the Registrar or a person authorised by him to-
direct conditional attachment of the property of the mortgagor until the arrears
due to the Land Mortgage Bank together with interest and any incidental charges-
incurred in'the recovery of such arrears, are paid or security for payment of such
arrears is furnished to the satisfaction of the Registrar and the provisions of
section 100 shall apply mutatis mutandis to conditional attachment of any pro-perty made or to be made under this section.
140. Collector to make recoveries during certain period.--(1) During such
period as the Administrator may by general or special order notify in the, OfficiaL,
Gazette,- it shall be competent for the Collector, on application being made to—liim in that behalf by a Land Mortgage Bank, to recover all sums due to the Land Mortgage Bank (including the cost of such recovery).
VI) Any amount due to a Land Mortgage Bank shall be recoverable by the.
Coliector, or any officer specially authorised by the Collector in this behalf, in
all or any of the following modes, namely :—
(a) from the borrower—as if they were arrears of land revenue due by
him;
(b) out of the land for the benefit of which the loans has been granted
—as if they were arrears of land revenue due in respect of that land;
(c) from a surety (if any)—as if they were arrears of land revenue due.
by him;
(d) out of the property comprised in the collateral security (if any)—
according to the procedure for the realisation of land revenue by the
sale of immovable property other than the land on which the revenue
is due.
141. Provision or guarantee funds to meet certain losses.—(1) It shall lie com-
petent for the Central Government to constitute one or more Guarantee Funds on
such terms and conditions as it may deem fit, for the purpose of meeting losses that might arise as a result of loans being made by the Land Mortgage Banks 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 Central Government, it is neces-sary to provide for or create a separate Guarantee Fund.
(2) The State Land Mortgage Bank and the Primary Land Mortgage Banks shall
• contribute to such funds at such rate as may be prescribed, and the constitution,
maintenance and utilisation of such funds shall be governed by such rules as may
be made by the Central Government in this behalf.
142. Agreements executed by members for loans advanced by Land Mortgage
Banks to be conclusive evidence.—Notwithstanding anything contained in this
Chapter, where a loan is given by the Land Mortgage Bank to a Co-operative-
Society for undertaking any work or development of agriculture on condition that
the members or such society are jointly and severally liable to the Bank for the
payment of the whole amount and an agreement to that effect is entered- with and"
signed by each of such members in the presence of an officer authorised in that
behalf by the Registrar that agreement shall be conclusive evidence of the portion
t at
S'Ec. SUD] THE GAZETTE Dip-INDIA EXTRAORDINARY 199
ground that the circumstances required [or authorising the sale had not arisen
or due notice of the sale was not given, or the power of sale was otherwise.
improperly or irregularly exercised.
139i Recovery of loans on Certificate by Re ist1nr.— l Notwit ta '
anything contained in sections 96 and 103, on an agpplicatio( J hs ndlng
Mortgage Bank for the recovery of arrears of any sum advanced by it to any
of its members and on its furnishing a statement of accounts in respect of the
arrears, the Registrar may, after making such enquiries as he deems fit, grant a
certificate for the recovery of the amount stated therein to be due as arrears.
(2) A certificate by the Registrar under sub-section (1) shall be final and
conclusive as to the arrears clue. The arrears stated to be due therein shall be
recoverable according to the law for the time being in force for the recovery of
arrears of land revenue.
(3) It shall be lawful for the Mamlatdar to take precautionary measures
authorized under sub-section (4) ol‘ section 106 until the arrears due to the Land
Mortgage Bank together with interest and any incidental charges incurred in the.
recovery of such arrears, are paid or security for such arrears is furnished to the
satisfaction of the Registrar.
incurred in'the recovery of such arrears, are paid or security for payment of such
arrears is furnished to the satisfaction of the Registrar and the provisions of
section 100 shall apply mutatis mutandis to conditional attachment of any pro-
perty made or to be made under this section.
140. Collector to make recoveries during certain period—(1) During such
period as the Administrator may by general or special order notify in thegomctot,
Gyetce, it shall be competent for the Collector, on application being made to him
in that behalf by a Land Mortgage Bank, to recover all sums due to the Land
Mortgage Bank (including the cost of such recovery).
1'“) Any amount due to a Land Mortgage Bank shall be recoverable by the
Collector, or any officer specially authorised by the Collector in this behalf, in
all or any of the following modes, namely :—
(a) from the borrower—as it they were arrears of land revenue due by
him;
(b) out of the land for the benefit of which the loans has been granted
—as if they were arrears of land revenue due in respect of that land;
(c) from a surety (if any)~as if they were arrears of land revenue due
by him;
(cl) out of the property comprised in the collaIeral security (it any)—
according to the procedure for the realisation of land revenue by the
sale of immovable property other than the land on which the revenue
is due.
141. Provision or guarantee funds to meet certain losses—(1) It shall be com-
petent for the Central Government to constitute one or more Guarantee Funds on
such terms and conditions as it may deem fit, for the purpose of meeting losses that
might arise as a result of loans being made by the Land Mortgage Banks on titles
to immovable property subsequently found to be defective or [or any otlmr purpose
under this Chapter, [or which in the opinion of the Central Government, it is neces—
sary to provide for or create a separate Guarantee Fund
(2) The State Land Mortgage Bank and the Primary Land Mortgage Banks shall
contribute to such funds at such rate as may he prescribed, and the constitution,
maintenance and utilisation of such funds shall he governed by such rules as may
be marle by the Central Government in this behalf,
112. Agreements executed by menib“ s for loans advanced by Lrnd Mortgage
mums to he cnneh‘ive cal-lure. No 'thstzmding onyl ug cont-oi ml in this
Chapter, where a loan is siren by cl Land lvtortgagze Bank to a Cl-OperfliiVe
Society for undertaking any work or development of agriculture on condition that
the members or such society are inintl' and severally liahle to the Bank for the
payment of the whole amount and an Vcement to that elfect is entered with and
signed by each oi such memo. s in the orcsence of an. olficer authorised in that
behalf by the Registrar that agreement snail be conclusive evidence of the portion
,rioo
THE GAZETTE OF INDIA .P.XTRAORDINARY
[PART II=I
,of that amount which each of the members is bound to contribute and against which .he had. mortgaged his lands or a portion of the lands by executing a separate mort-
gage deed with the Bank. .
143. Exemption of officer of land mortgage banks from personal appearance.
before registering officers.—(1) Notwithstanding anything contained in the Indian
Registration Act, 1908 (XVI of 1908), it shall not be necessary for any officer of a
land mortgage 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 that Act.
(2) Where any instrument is so executed, the Registering Officer to whom such
instrument is presented for registration may, if he thinks fit, refer to such officer
for information respecting the same and, on being satisfied of the execution thereof,
.shall register the instrument.
144. Service of notice.—The provisions of sections 102 and 103 of the Transfer of Property Act, 1882 (IV of 1882), and of any rules made under section 101 thereof,
shall apply, so far as may be, in respect of all notices to be served under this
Chapter.
145. Officers of banks not to bid at sales.—At any sale of movable or immov-able property, held under the provisions of this Chapter, no officer or employee
of a land mortgage bank except on behalf of the bank of which he is an officer
or an employee, and no person having any duty to perform in connection with
such sale, shall either directly or indirectly bid for or acquire or attempt to
acquire any interest in such property.
CHAPTER XII
OFFENCES AND PENALTIES
146.
Prohibition of use of the word "Co-operative".—(1) No person, other .than
a society registered, or deemed to be registered, under this Act, and a person
or his successor in interest of any name or title under which he traded or carried
on business at the date on which this Act comes into force, shall without the
sanction of the Administrator, function, 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.
(2) Every person contravening the provisions of sub-section (1) shall, on
.conviction, be. punished with fine which may extend to five hundred rupees.
147. Offences.—(1) It shall be an offence under this Act, if—
(a) any person makes a declaration referred. to in section 23 which he
knows or has reason to believe to be false;
(b) any member of a society transfers any property or interest in pro-perty in contravention of sub-section (2) of section 48 or any person
knowingly acquires, or abets the acquisition of, such property;
(c) any employer or any director, manager, secretary or other officer or agent acting on behalf of such employer without sufficient cause,
fails to comply with. sub-section- (2) of section 50;
(d) a committee of a society or an officer or member thereof fails tG invest funds of such society in the manner required by section 71;
(e) any person, collecting share money for a society in formation, does not within a reasonable period deposit the same in the State Co-
operative Bank, or a Central Co-operative Bank, or an. urban co-
operative bank, or a postal savings bank;
(f) any person, collecting the share money for a society in formation, makes
.
use of the funds so raised for conducting any business or trading" ill,-
the name of a society to be registered or otherwise ;
-(g)
a retiring chairman to whom a direction has been issued under sub-
section (2) of section 75 fails to comply with such direction;
(h) a committee of a society, or an officer or member thereof, fails to
com
ply with the provisions of sub-section (2), (3) or (4) of section
77;
(i) any officer or member of a society who is in possession of information, books and records, fails to furnish such information or produce books
and papers, or give assistance to a person appointed or authorised
by the Central Government, Administrator or the Registrar under
sectioal 80, 81, 84, 86, 87, 90 or 108;
.flf
£00 THE. GAZETTE 0F [NDIA EXTRAORDINARY [PAM II—g
t .,
of that amount which each of the members is bound to contribute and against which
he had mortgaged his lands or a portion n[ the lands by executing a separate mort—
gage deed with the Bank.
143. Exemption of otfioer of land mortgage banks from mtsonal appearance
before registering smears—(l) Notwithsta‘iding anything contained in the Indian
Registration Act, 1908 (XVI oi 1908), it shall not he necessmy for any cfiicer of a
land mortgage hank to appear in person or by agent at any registration office in any
roceedings connected with the registration of any instrument executed by him in
£55 official capacity, or to sign as provided in section 58 or that Act.
(2) Where any instrument is so executed, the Registering Olficer to whom such
instrument is presented for registration may. if he thinks fit. ref to such officer
lor information respecting the same and, en he'uig satisfied of the ecution thereof,
shall ster the instrLu-nent,
144. Scrs'ice of Retire—The pl'onlells of sections 102 and 103 of the Transfer of
Property Act. 1882 (IV of 1882). and of any rules made under section in! thereof,
shall apply. so iar as may be. in respect of all notices to he served under this
Chapter.
145, Drflecrs oi bauhs not to bid at Sales— any sale of movable or immov<
able property. held under the provisions 0. a Chapter no officer or employee
of a land mortgage bank except on behalf oi the bank of which he is an officer
or an employee, and no person having any duty to perform in connection with
such sale, shall either directly or indirectly bid for or acquire or attempt to
acquire any interest in such property.
CHAPTER XII .
OrrENcas AND PENALTIES
146. Prohibition of use oi the word “Co operative”.——(l) No person, other than (
a society registered, or deemed to be regis ered, under this Act, and a person
or his successor in interest of any name or title under which he traded or carried
on business at the date on which this Act comes into force, shall without the
sanction of the Administrator, function, trade or carry on business under any 7
name or title of which the word "co-operative”, or its equivalent in any lndlan
language, forms part. Ki 4'
(2) Every person contravening the pro ions at subsection (1) shall, on 'l
conviction, be punished with fine which may extend to five hundred rupees.
14-7. [fleeces—(l) It shall he an clience under this Act, if—
(a) any person makes a declaration referred to in section 23 which he
knows or has reason to believe to be false:
(b) any mem‘ of a society transfers any property or interest in pro—
perty in ntravention of sub—section (7.) of section 48 or any p 'son
knowingly acquires, or abets the acquisition of, such property
(c) any employer or any director, manager, secretary or other officer or
agent acting on nehall of such employer Without sufficient cause.
' tails to comply with sub-section (2) of section 50;
(cl) a committee of a society or an officer or member thereof fails to invest
funds of such socrety m the manner required by section '71;
(c) any person. collecting share money for_ a society in formation, does .
tin a reasonable period deposrt the same in the State Co~ w
e Bank, or a Cell» al CC—ULTCIathG Bank. or an urban co~
operative bank, or a postal vmgs bank;
(i) any person, collecting the sh money for a society in formation, makes
use of the funds so raised for conducting any business or trading jet.
the name of a society to he registe d or otherwise; .
a retiring chairman to whom direction has _been issued under sub-
section (2) 0t section 75 ‘ ply With such direction;
in) a, committee of a soc oi an ofilc.‘ ‘OL member thereof, fails‘to
comply with the prov 10115 of sub-secti i1 (2), (3) or (4) of wtron
77.1
ii) any on'icer or member of 3
books and records. fails to 1;.
, or give assistanc.
C re} Gov meat,
, Si. 847 35, 87, 99
(3
:1 losses on of information,
if a on or produce books
.on appointed or authorised
.tor or he Registrar under
llEo. 0 (ii)] THE GAZETTE OF INDIA EXTRAORDLNARy
?
201
(j) any officer of a society fails to hand over the custody of books, records,
cash, security and other property belonging to the society of which
he is an officer, to a person appointed under section 80, 81 or 108;
(k) a committee of a society with a working capital of fifty thousand
rupees or more, or any officer or a member thereof fails without any
reasonable excuse to comply with orders made under section 82 or
to give any notice, or to send any return or document, do or allow
to be done anything, which the committee, officer or member is by
this Act required to give, send, do or allow to be done;
(1) a committee of a society or an officer or member thereof wilfully r_eg-
(lects or refuses to do any act, or to furnish any information required
for the purposes of this Act by the Registrar or other person duly
authorised by him in writing in this behalf;
(m) a committee of a society, or an officer or member thereof, wilfully
makes a false return, or furnishes false information, or fails to main-
tain proper accounts;
(n) an officer or a society fails to comply with the order made by the, Registrar under section 83;
(o) an officer, member, agent or servant of a society fails to comply with
thp requirements of sub-section (4) of section 84;
(p) an officer or a member of a society wilfully fails to comply with any
decision, award or order passed under section 98;
(q) a member of a society fraudulently disposes of property over which
the society has a prior claim, or a member or officer or employee or
any person disposes of his property by sale, transfer, mortgage, gift:
or otherwise, with the fraudulent intention of evading the dues of the society;
(r) an officer of a society wilfully recommends or sanctions for his, own
personal use or benefit or for use dr benefit of a perSon in whom he is
interested, a loan in the name of any other person;
(s) an officer or member of a society destroys, mutilates, tampers with,
or otherwise alters, falsifies or secrets or is privy to the destruction,
mutilation, alteration, falsification or secreting of any books, papers
or securities or makes, or is privy to the making of any false or fraud-
ulent entry in any register, book of account or thicument belonging
to the society. •
(2) Where an offence: under this ( Act has been committed by a committee of a
society, every person who at the time the offence was committed, was a member
,of such committee shall be deemed to be guilty of the offence and shall be liable
to be proceeded against and punished accordingly:
Provided . that nothing contained in this sub-section shall render any such
person liable to any punishment as provided in this Act if he proves that the
offence was committed without his knowledge or that he exercised all due dili-
gence to prevent the commission of such offence.
148. Punishment for offences under section 1.47.—(1) Every employer, or offi-
cer, member, agent or servant, of a society, or any other person, who commits
an offence under section 147 shall, on conviction, be punished,—
(a) if it is an offence under clause (a) of that section, with simple imprison-
ment which may extend to six months or with 'fine which may
extend to five hundred rupees or both;
(b) if it is an offence under clause (b) of that section, with imprisonment
for a term which may extend to six months, or with fine which may
extend to five hundred rupees, or with both;
(c) if it is an offence under clause (c) of that section, with imprisonment
for a term which may extend to one month, or with fine which
may extend to five thousand rupees, or with both;
(d) if it is an offence under clause (el) of that section, with fine which may extend to five hundred rupees;
(e) if it is an offence under clause (e) of that section, with fine which may extend to five hundred rupees;
(f) if it is an offence under clause .(f) of that section, with imprisonment
for a term which may extend to one year, or with fine, or with both;
EDI
flu. i5 ii)] THE GAZETTE OF INDIA EXTRAORDINARY
(
(j) any officer of's society fails to hand over the custody of books, records,
cash, security and other property belonging to the society of which
he is an ofl-‘icer, to a per-son appointed tinder section 80, 81 or 108;
(k) a committee of a society with a working capital of fifty thousand
i rupees or more, oi any otiticer or a member thereof fails without any
. _ reasonable excuse to comply with orders made under section 82 or
to give any notice, or to send any return or document, do or allow
to be done anything, which the committee, officer or member is by
this Act required to give, send, do or allow to he done;
(1) a committee of a society or an oflicel' or member thereof wilfully neg—
lects or refuses to do any act, or to furnish any information required
for the purposes of this: Act by the Registrar or other person duly
authorised by him in writing in this behalf;
(in) a committee of a ‘ociety, or‘an officer or member thereof, wilfully
makes a [alse rain or furnishes false information. 'or falls to main—
tain proper occoun
(n) an officer or ;i society full‘s to comply with the order made by the,
Registrar under section 33:
(0) an ofl‘icei',lmenibei', u t o. servant of a society fails to comply with
the requirements of . ..clion (4) of section 84;
to) an officer or a member of a society wilfully rails to comply with any
deCISIOn, award or orrler passed under section 98;
(q) a member of a society fraudulently disposes of property over which
the society has a prior c tin, or a member or officer or employee or
any person disposes ol‘ his property by sale, transfer, mortgage, gift
olr otherwise, with the fraudulent intention of evading the dues of
tie socie y;
(r) an officer of a society wilfully recommends or sanctions for his own
personal use or benefit or for use or benefit of a person in whom he is
interested, a loan in the name of any other person;
(5)511 ofi‘icer or member of a society destroys, mutilatEs, tampers with,
or otherwise alters, falsifies or secrets or is privy to the destruction,
mutilation, alteration, falsification or secreting or any books, papers
or securities or makes, or is privy to the making of any false or fraud-
ulent entry in any register, book of account or document belonging
to the society.
(2) Where an offence tinder this’Act has been committed by a committee of a
society, every person who at the time the offence was committed. was a member
of such committee shall be deemed to be guilty of the offence and shall be liable
to he proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such
person liable to any punishment as provided in this Act if he proves that the
offence was committed without hi‘ knowledge or that be exercised all due dili—
gence to prevent the commission or such otience.
148. Punishment. for offences under section Ill—(1) Every employer, or offi—
i ear, member, agent or servant, of a .«iouiety,_or any other person. who commits
an offence under section 147 shall, on convmtlon, be punished,—
(a) if it is an offence iind
ment which may
tend to f:
CID-Uni (a) of that section, with simple imprison-
»nrl to six months or with line which may
‘iipces or both;
an oii‘eiice under ct ise (b) of that section, 'with imprisonment
nr 1 tc-rii'i which may extend to si:{_months, or With fine which may
‘ end to fit" hundred rupees, or With both;
\ unili-i- i‘l‘ill‘K} (c) of that section, with lmprisom i:
ch !_:'i:,' to one month, or 'ith Eric wind)
or- times .occs, or with both
rl (m of tho. section,
i-iiiices;
an iii’fcriun w for
oi that section. with line which inny
in ot‘l‘eii- iiml ~i‘ l‘l
. rtli ma,
1 ,tt‘i ot‘ that section. " itli impi item:
lit. in one your, or with line, or ‘1
02
THE GAZETTE OF INDIA EXTRAORDINARY [PART _
(g) if it is an offence under clause (g) of that section, with simple impri-sonment which may extend to one month or with fine which may
extend to five hundred rupees or both;
(h) . if it is an offence under clause (h) of that section, with fine which may extend to two hundred and fifty rupees;
(1) if it is an offence under clause (i) of that section, with fine which
may extend to five hundred rupees;
(j) if it is an offence under clause (j) of that section, with fine which. may extend to five hundred rupees;
(k) if it is an offence under clause (k) of that section, with fine which may extend to five hundred rupees;
(1).if it is an offence under clause (1) of that section, with imprisonments•
for a term which may extend to one month, or with fine which may
extend to five hundred rupees, or with both;
(m) if it is an offence under clause (m) of that section, with imprisonment for a term which may extend to one year, or with fine which may
extend to one thousand rupees or with both;
(n) if it is an offence under clause (n) of that section, with imprison-ment for a term which may extend to one year or with fine which.
may extend to one thousand rupees or with both;
(o) if it is an offence under clause (o) of that section, with fine which. may extend to one hundred rupees;
(p) if it is an. offence under clause (p) of that section, with imprisonment. for a term which may extend to six months, or with fine which may
extend to five hundred rupees, or with both;
(q). if it is an offence under clause (q) of that- section, with imprisonment.
for a term which may extend to six months, or with fine which may
extend to one thousand rupees, or with both;
(r) if it is an offence under clause (r) of that section, with imprisonment for a term which may extend to two years, or with fine, or with_both;
(s) if it is an offence under clause (s) of that section, with imprisonment. for a term which may extend to three years, or with fine, or-Vith.
both.
(2) No prosecution for an offence under section 147 shall be instituted in res-
pect of the same facts on which a penalty has been imposed by the Registrar
under any provisions of this Act.
149. Cognizance of offences.---(1) No court inferior to that of a Presidency
.
Magistrate or a Magistrate of the First Class shall try any offence under this Act..
(2) Notwithstanding anything contained in the Code of Criminal Procedure,
1898 (V of 1898) it shall be lawful for a Presidency Magistrate or ted
a Magistrate of
the First Class to pass a sentence of fine on any person convic of n
under clause (c) of sub-section (1) of section 147 as provided under section 148, in
excess of his powers under section 32 of that Code.
(3,) No prosecution under this Act shall be lodged, except with the previous-
sanction of the administrator in the case of an offence under clause (c) of sub-
section (1) of section 147, and of the Registrar in the case of any other offence
under this Act. Such sanction shall not be given, except after hearing the party
concerned, by an officer authorised in this behalf by the Administrator by a general
or special order.
CHAPTER XIII
APPEALS, REVIEW AND REVISION
150. Dadra and Nagar Haveli Co-operative Tribunal.—(1) The Administrator shall constitute a Tribunal called the Dadra and Nagar Haveli Co-operative
Tribunal to exercise the functions conferred on the Tribunal by or under this Act.
(2) The Tribunal shall consist of a President. and not more than three other
-
members possessing such qualifications as may be prescribed.
(3) Any vacancy in the membership of the Tribunal shall be filled by the
Administrator.
(4) The Dowers and functions of the Tribunal may be exercised and dis-charged by Benches constituted by the President from amongst the members of
the Tribunal including himself:
Provided that, any interlocutory application may be heard by one or more'
members who may be present.
(g) if it is an offence under clause (g) of that section, with simple impri--
sonment which may extend to one month or with line which may
extend to five hundred rupees or both;
(h) if it is an offence under clause (h) of that section, with fine which)
may extend to two hundred and fifty rupees;
(i) if it is an offence under clause (i) of that section, with fine which,
may extend to five hundred rupees;
(j) if it is an ofl’ence under clanse (j) of that section, with fine which.
may extend to five hundred rupees;
(k) if it is an offence under clause (k) of
may extend to five hundred rupees;
(1) if it is an ofience under clause (1) of that section, with imprisonments
for a term which may extend to one month, or with line which may
extend to five hundred rupees, or with both;
(in) if it is an ofience under clause (m) of that section, with imprisonment
for a term which may extend to one year, or with fine which may
extend to one thousand rupees or with both;
(n) if it is an offence under clause (n) of that section, with imprison-
ment for a term which may extend to one year or with fine which
may extend to one thousand rupees or with both;
(o) if it is an offence under clause (0) of that section,
may extend to one hundred rupees;
(p) it it is an offence under clause (1)) of that section, with imprisonment
for a term which may extend to six months, or with fine which may
extend to five hundred rupees, or with both;
(q) if it is an offence under clause (q) of that section, with imprisonment
for a term which may extend to six months, or With fine which may
extend to one thousand rupees, or with both;
(r) if it is an offence under clause (r) of that section, with imprisonment
for a term which may extend to two years, or With fine, or Withhoth;
(s) it it is an offence under clause (5) of that section, with imprisonment
fioiha term which may extend to three years, or with fine, or - 1th
0 .
(2) No prosecution for _ _
pcct m: the same facts on which a penalty has been imp
under any provisions of this Act.
149. cognizance of climates—(l) No court inferior to that of a Presidency
Magistrate or a Magistrate of the First Class shall try any offence under this Act.
(2) Notwithstanding anything contained in the Code of Criminal Procedure:
1898 (V of 1898) it shall be lawful for a Presidency Magistrateor a Magistrate or
the First Class to pass a sentence of fine on any person convmted of an offence
under clause (c) of sub-section (1) of section 147 as provided under section 148, in
excess of his powers under section 32 of that Code.
(a) No prosecution under this Act shall be lodged, except with the previous
sanction of the administrator in the case of an offence under 'Clause (c) of sub-
section (1) of section 147, and of the Registrar in the case oi any other offence
under this Act. Such sanction shall not be given, except after hearing the party
concerned, by an ofiicer authorised in this behalf by the Administrator by a general
or special order.
that section, with' fine which
with fine which
an offence under section 147 shall be instituted in res-
osed by the Registrar
CHAPTER XIII
APPEALS, REVIEW AND REVISION vi
150. Dadra and Nagar Haveli (lo-operative Trihuiml.—(1) The Administrator:
shall constitute a Tribunal called the Daclra and Nagar Haveli Cooperative
Tribunal to exercise the functions conferred on the Tribunal by or under this Act.
(2) The ‘i‘oimal shall consist of a President. and not more than three other
members on rig such qualifications as may be prescribed.
(3)_Anv va ,cv in the membership of the Tribunal shall be filled by the
Administrator
(11) The no 's and functions of the Tribunal may be exercised and dis—
charged by Bench= constituted by the President from amongst the members of
the Tribunal inclu ing himself:
Provided that. my interlocutory applican‘cn may be heard by one or more
members who may he present.
THE GAZETTE OF INDIA EXTRAORDINARY [PART II— ’-
V
we
tbe
Szc. (11)] THE GAZETTE OF INDIA EXTRAORDINARY 203
(5) Such Benches shall consist of two or more members.
(6) Where a matter is heard by three members the opinion of the majority
:shall prevail, and the decision shall be in accordance with the opinion of the
majority. Where a matter is heard by an even number of members and the mem-
bers are equally divided, if the. President be one of the members the opinion of
the President shall prevail and in other cases the matter shall be referred for
'hearing to the President, and shall be decided in accordance with his decision.
(7) Subject to the previous sanction of the Administrator, the Tribunal shall
frame regulations consistent with the provisions of this Act and rules thereunder,
for regulating its procedure and the disposal of its business.
(8) The regulations made under sub-section (7), shall be published in the
'O fficial Gazette.
(9) The Tribunal may call for and examine the record of any proceeding in
which an appeal lies to it, for the purpose of satisfying itself as to the legality
or property of any decision or order passed. If in any case, it appears 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 just.
(10) Where an appeal is made to the Tribunal under section 102, it may, in
order to prevent the ends of justice being defeated, make such interlocutory
orders pending the decision of the appeal as may appear to it to be just and con-
venient, or such orders as may be necessary for the ends of justice or to prevent
the abuse of the process of the Tribunal.
(11) An order passed in appeal, or in revision under sub-section (9), or in
review under section 151, by the Tribunal, shall be final' and conclusive, and shall
not be called in question in any Civil or Revenue Court.
(12) The Tribunal hearing an appeal under this Act shall exercise all the
powers conferred upon an appellate court by section 97 and Order XLI in the
First Schedule of the Code of Civil Procedure, 1908 (V of 1908).
Review of orders a Tribunal.—(1) The Tribunal may, either on the appli-
cation of the Registrar, or on the application of any party interested, review its
own order in any case, and pass in reference thereto such order as it thinks just:
Provided that, no such application made by the party interested shall be enter-
tained, unless the Tribunal is satisfied that there has been discovery of new and
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 its order was made, or that there has been some mistake or
error apparent on the face of the record, or for any other. sufficient reason:
Provided further that, no such order shall be varied or revised, unless notice
has been given to the parties interested to appear and be heard in support of
such order.
(2) An application for review under sub-section (1) by any party, shall be
made within ninety days from the date of the' communication of the order of
'the Tribunal.
152. Tribunal to have power of Civil Court.—(1) In exercising the functions
.conferred on it by or under this Act, the Tribunal shall have the same powers as
.are vested in a Court in respect of,—
(a) proof of facts by affidavit,
(b) summoning and enforcing the attendance of any person and examin-
ing him on oath,
(c) compelling the production of documents, and
(d) issuing commissions for the examination of witnesses.
(2) In the case of any such affidavit, any officer appointed by the Tribtirial in
this behalf may administer the oath to the deponent.
153. Appeals.—(1) An appeal against an order or decision under sections 4, 9,
.11, 13, 17, 19, 36, 31 and 160• shall lie,—
(a) if made or sanctioned or approved by the Registrar, or an additional
or Joint Registrar on whom powers of the Registrar are conferred,
to the Administrator.
6f ‘ l
SEC. 3(ii)] THE GAZETTE 0F {NDIA EXTRAORDINARY 203
(5) Such Benches shall consist of two or more members.
(6) Where a matter is heard by three members the opinion of the majority
shall prevail, and the decision shall be in accordance with the opinion of the
majority. Where a matter is heard by an even number of membels and the mem—
bers are equally divided, if the President be one of the members the opinion of
the President shall prevail and in other cases the matter_shall be referred for
hearing to the President, and shall be decided in accordance with his decision.
(7) Subject to the previous sanction of the Administrator, the Tribunal shall
frame regulations consistent with the provisions of this Act and rules thereunder,
for regulating its procedure and the disposal of its business.
(3) The regulations made under sub—section (7), shall he published in the
-Ofl‘icio.l Gazette.
(9) The Tribunal ma call for and examine the rccord of any proceeding in
which an appeal lies to it, for the purpose- of satisfying itself as to the legality
or property of any decision or order passed If in any case. it appears 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 just.
"co the Tribunal under section 102, it may, in
order to prevent the ends of ; stice being defeated, make such interlocutory
orders pending the decision of tli appeal as may appear to it to be just and con—
venient, or such orders as may he necessar" for the ends of justice or to prevent
Lhe abuse of the process oi the Tribunal,
(11) An order passed in appeal, or in revision under sub-section (9), or in
review under section 151, by the Tribunal, shall be final and conclusive, and shall
not be called in question in any Civil or Revenue Court.
(12) The Tribunal hearing an appeal under this Act shall exercise all the
powers conferred upon an appellate court by section 97 and Order XLI in the
First Schedule of the Code of Civil Procedure, 1908 (V of Weill
' 51. Review of orders of TribulaLeU) The Tribunal may, either on the appli-
cation of the Registrar, or on , application a? any party interested, review its
own order in any case, and p m voicrc-nce icto such order as it thinks just:
Provided that, no such 31:) ll
(10) Where an appeal is m
cation made by the party interested shall be enter-
tained. unless the Tribunal .ed that there has heen discoyery of new and
important matter of eviocnce, h after the exercise of due diligence was not
Within the knowledge of the :mpucant or could not be produced by him at the
time when its order was made, or that there has been some mistake or
error apparent on the [gm of the record, or for any other sufficient reason:
isl
Provided further that. no such order shall be varied or rev rl unless notice
has been given to the parties vnterested to appear and he heard in support of
such order.
(2) Aunpplication for reviEW under sun-section (i) by any party, shall be
made Within ninety days irom the date of the communication oi the order of
the Tribunal.
152‘ Tribunal to have power at Civil Court—(l) In exercising the functions
conferred on it by or under tln "mt the Tribunal shall have the some powers as
are vested in a Court in respect of,—
(a) proof of facts lay ulti m“
(b) summoning and enim mg the attendance of any per-Rn) and examin-
ing him on oath,
(c) compelling the production of
(d) issuing Commissions
ocuments, and
.omination of Witnesses.
such
any officer appointed by the Tribunal in
(he rleponcm,
actions rl, t],
’ on m'clcr or decision no L
: w :1
'em of
THE GAZETTE OF INDIA EXTRAORDINARY [PART II-
(b) if made or sanctioned by any person other than the Registrar, or an
Additional or Joint Registrar on whom the powers of the Registrar
are conferred, to the Registrar.
(2) An appeal against an order of a liquidator under section 110 shall lie—
(a) to the Administrator if the order was made with the sanction or
approval of the Registrar, and
(b) to the Registrar in any other case.
(3) An appeal against an order or decision under sections 82, 90, 93, and any
order passed by the Registrar for paying compensation to a society, and any
other order for which an appeal to the Tribunal has been provided under this
Act, shall lie to the Tribunal.
(4) An appeal under sub-section (1), (2) or (3) shall be filed within two
months of the date of the communication of the order or decision.
(5) The procedure to be followed in presenting and disposing of appeals under
this section or under any other provisions of this Act shall be such as may be
prescribed.
(6) Sive as provided in this Act, no appeal shall lie against any order, deci-
sion or award passed in accordance with this Act and every such order, decision
or award shall be final, and where any appeal has been provided for, any order
passed on appeal shall be final and no further appeal shall lie against it.
154. Extension of period of limitation by appellate authority in certain cases.—
In all cases in which it is provided under this Act that an appeal may be filed
against any decision or order within a specified period, the appellate authority
may admit an appeal after the •expiry of such period, if the appellant satisfies
khe appellate authority that he had sufficient cause for not preferring the appeal
within such period.
155. Power of Administrator and Registrar to call for proceedings of suborAi-
tate officers and to pass orders thereon.—The Administrator and the Regi.tverar
may call for and examine the record of any enquiry or the proceedings of any
other matter of any officer subordinate to them, except those referred to in sub-
section (9) of section 150, for the purpose of satisfying themselves as to th0
Legality or propriety of any decision or order passed, and as to the regularity of
the proceedings of such officer. If in any case, it appears to the Administrator,
or the Registrar, that any decision or order or proceedings so called for should
be modified, annulled., or reversed, the Administrator or the Registrar, as the case
may be, may after giving persons affected thereby an opportunity of being heard
pass such, order thereon as it or he may deem just.
CHAPTER XIV
MISCELLANEOUS
157. Recovery of sums due to Government.—(1) Unless otherwise provided by
this Act, all sums due from a society or from an officer or member or past mem-
ber or a deceased member of a society as such to the Government, may be re-covered as arrears of land revenue.
(2) Sums due from a society to the Government and recoverable under sub-
section (1) may be recovered, firstly from the property of the society secondly
in the case of a 'society of which the liability of the members is limited, -from,
the members or past members or from their estate if they have-died, subject tot,
the limit of their liability, and, thirdly, in the case of societies with tualimite,*:
liability from the members or past members or their estate, if they have died.
(3) The liability under this section shall in all cases be subject to the provi-
sions of section 34.
158. Cotametency of a membek to transfer land or interest therein to society.—
Notwithstanding anything contained in the Transfer of Property Act, 1882, (IV of
1882), and the Indian Registration Act, 1908 (XVI of 1908), it shall be lawful for a
member of a Co-operative Farming Society to transfer to the society any land held
by him or the whole or part of his interest in any land by an agreement and in such
manner as may be prescribed.
159. 7.egistrar's powers to recover er:YtliTt 731M117,3 7,:43,- attachment and sale of pro-
porty.—(1) The Registrar or any of subordinate to him and eMpowerecl by him
in this behalf may, subject to such rules as inay be made by the Administrator but
g4 THE GAZETTE OF INDIA EXTRAORDINARY [PAM II—'
(b) if made or sanctioned by' any person other than the Registrar, or an
Additional or Joint Registrar on whom the powers of the Registrar
are conferred, to the Registrar.
(2) An appeal against an order of a liquidator under section 110 shall lie—
(a) to the Administrator if_the order was made with the sanction or
approval of the Registrar, and
(b) to the Registrar in any other case.
(3) An appeal against an order or decision under sections 82, 90, 93‘ and any
order passed by the Registrar for paying compensation to a society, and any
other order for which an appeal to the Tribunal has been provided under this
Act, shall lie in the Tribunal.
(41 An appeal under subsection (1)
{2) or (3) shall be filed Within two
of the date of the communicati '
of. the order or decision.
(5) The procedure to be followed in presenting and disposing of appeals under
this srcticn or under any other provisions of this Act shall be such as may be
prescribed.
(6) Save as provided in this Act, no appeal shall lie against any order, deci—
sion or award passed in accordance with this Act and every such order, decision
or award shall be final, and Where any appeal has been provided for, any order
passed on appeal shall be final and no i‘urther appeal shall lie against it.
154. Extension of period of limitation by appellate authority in certain cases.—
In all cases in which it is provided under this Act that an appeal may be filed
against any decision or order within a specified period, the appellate authority
may admit an appeal after the expiry of such period, if the appellant satisfies
the appellate authority that he had sumcient cause [or not preferring the appeal
within such period.
155i Power of Administrator and Registrar to call for proceedings oi‘ subordh
uate officers and to pass orders thereon—The Administrator and the Begin rai-
may call for and examine the record of any enquiry or the proceedings of any
other matter of my ofl‘icer subordinate to them, except those referred to in sub—
section (9) of section 150, for the purpose of satisfying themsely s as to the
legality or propriety of any decision or order passed, and as to the regularity of
the proceedings of such officer. If in any case, it apmars to the Administrator,
or the Registrar, that any decision or order or proceedings so ‘called for should
be modified, annulled. or reversed. the Administrator or the Registrar, as the case
may be, may after giving persons affected thereby an opportunity of being heard
pass such order thereon as it or he may deem just.
CHAPTER XIV
MISCELLANEOUS
157. Recovery of sums clue to Government—(l) Unless otherwise provided by
this Act, all sums due from a society or from an officer or member or past mem—
ber or a deceased member of a society as suclr‘ to the Government, may be re»
covered as arrears of land revenue.
(2) Sums due from a society to the Government and recoverable under suh~
section (1) may be recovered, firstly from the property of the society secondly
in the case of a society of which the liability of the members is limited, from
the members or past members or from their estate if they have’died, subject to.
the nit of their liability, and. thirdly, in the :ase of societies with unlimiteril
liabi 1ty from the members or past members or their estate, if they have died.
(3) The Hability under this section shall in all cases be subject to the provin
sions ()1 .~ '14
laml
£151..“ -
h. l1 l1
:rsfiLC but
. cod.
I: by LA? "u.
,r:
•
205
A°. 3 (ii)] THE GAZETTE OF INDIA EXTRAORDINARY
without prejudice to any other mode of recovery provided by or under this Act,
recover—
(a) any amount due under a decree or order of a Civil Court obtained by a.:
society,
(b) any amount due under a decision, award or order of the Registrar, his.
nominee or the board of nominees or Liquidator or Tribunal,
(c) any sum awarded by way of costs under this Act,
(d) any sum ordered to be paid under this Act as a contiibution to the assets.
of the society,
together with interest, if any, chie on such amount or sum and the costs of recovering.
the same by the attachment and sale or by sale without attachment of the property
of the person against whom such decree, decision, award or order has been obtained'
or passed.
(2) The Registrar or the officer empowered by him shall be deemed when.
exercising the powers under sub-section (1) or when passing any order on any
application made to hitn for such recovery, to be a Civil Court for the purposes of
article 182 in the First Schedule to the Limitation Act, 1963 (36 of 1963).
•
160. Registrar's powers to issue directions.—(1) With the prior approval of the.
Administrator, the Registrar may, from time to time, give all or any of the socie-
ties, or any class or classes of societies, such directions as in his opinion are neces-
sary or expedient for the purposes of securing the proper implementation of the
production programme, linking and co-ordinating of co-operative activities such as-
marketing and credit, conforming to co=operative discipline with respect to the im-
plementation of co-operative production and other developmental programme ap-
proved or undertaken by the Government or for carrying out any of the purposes
of this Act. It shall be the duty of every society to comply with such directions. •
(2) If such directions are not complied with by any society within the prescribed
period, the Registrar may call upon any officer of such society whom he considers:
to ,he= responsible for the carrying out his directions and, after giving such officer
an ,eportunity to be heard, may without prejudice to any other action which may
be taken against such society or Officer under the provisions of this Act, require
him to pay to the assets of the society such sum not exceeding ten rupees as the
Registrar may think fit for each day until the Registrar's directions are carried'
out. Such sum if not paid shall be recoverable as an arrear of land revenue.
• 161. Power to exempt societies from provisions of Act.—The Administrator
may, by general or special order, to be published in the Official Gazette, exempt'
any society or class of societies from any of the provisions of this Act, or may that such provisions shall apply to such society or class of societies with such•
modifications not affecting the substance thereof as may be specified in the order:
Provided that, no order to the prejudice of any society shall be passed, with-
out an opportunity being given to such society to represent its case.
162. Delegation of powers of State Government and of Registrar.—The Admini-
strator may by notification in the Official Gazette and subject to such conditions,.
as he may think fit to impose, delegate—
(a) any power exercisable by it under this Act except the power under sub--
Section (1) of section 153 and section 168 thereof to the Registrar;
(b) all or any of the powers of the Registrar under this Act to any com-
mittee constituted or to any co-operative federal society recognised`
under section 95.
163. Branches etc. of societies outside the State.—(1) No society shall open a
branch or a place of business outside the Union territory Dadra and Nagar-
Haveli, and no co-operative society registered elsewhere in India shall open a
branch or a place of business in the Union territory of Dadra and Nagar Haveli,
without the permission of the Registrar.
(2) Every co-operative society registered under any law elsewhere in India and
permitted to open a branch or a place of business in the Union territory of Dadra
and Nagar Haveli under sub-section (1) or which has a branch or a place of busi-
ness in the Union territory of Dadra and Nagar Flaveli at the commencement of
this Act, shall, within three months from the date of the opening of such branch
Or place of business or from the date oE the commencement of t pis Act, as the case
may be, tile with the Registrar a certified copy of the by-laws and amendments
and, if these be not in English a certified translation thereof in English or Hindi:
SEC. 360] THE GAZETTE OF INDIA EXTRAORDINARY 205
without prejudice to any other mode of recovery provided by or under this Act,
recover—
(a) any amount due under a decree or order of a Civil Court obtained by a
society,
(in) any amount due under a decision, award or order of the Registrar. his
nominee or the board of nominees or Liquidator or Tribunal,
(c) any sum awarded by way of costs under this Act,
(d) any sum ordered to he paid under this Act as a contribution to the assets
of the society.
together with interest, if any, clue on such amount or sum and the costs of recovering
the same by the attachment and sale or by sale without attachment of the property
of the person against whom such decree. decision, award or order has been obtained
or passed.
(2) The Registrar or the officer empowered by him shall be deemed when
exercising the powers under sub—section (1) or when passing any order on any
application made to him for such recovery, to be a Civil Court for the purposes of
article 182 in the First Schedule to the Limitation Act, 1963 (36 of IQGSL
160, Registrar’s powers to issue directions—(l) With the prior approval of the
Administrator, the Registrar may. from time to time, give all or any of the socie—
ties, or any class or classes of societies. such directions as in his opinion are neces-
sary or expedient for the purposes of securing the proper implementation of the
production programme, linking and ca-ordinating of cooperative activities such as
marketing and credit, conforming to co-operative discipline with respect to the im-
plementation of co—operar‘ive production and other developmental progranune ap‘
proved or undertaken by the Government or for carrying out any of the purposes
of this Act It shall be the duty of every society to comply with such directions.
(2) If such directions are not complied with by any society within the prescribed
period, the Registrar may call upon any officer of such society whom he considers
to be responsible for the carrying out his directions and, after giving such ohficer
an goortunity to he heard. may without prejudice to any other action which may
be taken against such society or officer under the provisions of this Act, require
him to pay to the assets of the society such sum not exceeding ten rupees as the
Registrar may think fit for each day until the Registrar's directions are carried‘
out. Such sum it not paid shall be recoverable as an arrear or land revenue.
161. Power to exempt societies Prom provisions of Act—The Administrator
may, by general or special order, to be published in the Oficiol Gazette, exempt
any society or class of societies from any of the provisions of this Act, or may
direct that such provisions shall apply to such society or class of societies with such“
modifications not aliecting the substance thereof as may be specified in the order:
Provided that, no order'to the prejudice of any society shall be passed, with—
out an opportunity being given to such society to represent its case.
162. Delegation of powers of State Government and of Registran—The Admini‘
strator may by notification in the Official Gazette and subject to such conditions,
as he may think fit to impose. delegate— *—~
(21) any power exercisable by it under this Act except the power under suh<
section (1) of section J53 and section 168 thereof to the Registrar;
(b) all or any of the powers of the Registrar under this Act to any com-
mittee constituted or to any comparative federal society recognised
under section 95‘
163, {Bram-hes etc. hi i .—(H No socieiv shali open :1
bj'any or a place 0F bu territory'oi Dadrn and Mega
H and no co- _ ‘ Where In lurlia eh. i open :1
‘3 . or n o'- to Dr . .. wary of Di‘di‘d and l\ iget‘ Haven.
in hail; the [it
, >‘| i
ii Mn , . ’ a branch or a olav
eli at the
Hi!
”NM
or my ,2
may Ins.
and, it' those he not in Eng
6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 3(ii3O •
_and shall submit to the R,egistrar such returns and information as are submitted
by similar societies registered under this Act in addition to those which may be
submitted to the Registrar of the State or Union territory where such society is
registered.
(3) The provisions of sub-sections (1) and (2) shall not apply to co-operative
societies to which the provisions of the Multi-Unit Co-operative Societies Act, 1942
applies.
(4) Nothing in sub-section (1) shall affect a society which has a branch or a
place of business outside the Union territory of Dadra and Nagar Haveli at the
commencement of this Act.
164. Registrar and other officers to be public servants.—The Registrar, a person
exercising the powers of the Registrar, a person authorised to audit the accounts of
a society under- section 84, or to hold an inquiry under section 86, or to make an
inspection under section 87, and a person appointed. as Special Officer under section
81 or as a mominee or board of nominees under section 98, or as a liquidator
under section 108, and all members of the Tribunal shall be deemed to be public
.servants within the meaning of section 21 of the Indian Penal Code (XLV of 1860).
165. Indemnity for acts done in good faith.—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 purported to
.be done by him by or under this Act.
166. ar of jurisdiction of Courts.—(1) Save as expressly provided in this Act,
--no Civil or Revenue Court shall have any jurisdiction in respect of—
(a) the registration of a society or its by-laws, or the amendment of its by-
laws, or the dissolution of The committee of a society, or the manage-
ment of the society on dissolution thereof; or
(b) any dispute required to be referred to the Registrar, or his nominee, or
board of nominees, for decision;
(c) any matter concerned with the winding up and dissolution of a society.
(2) While a society is being -tfound up, no alit or other legal proceeding ring
to the business of such society shall be proceeded with or instituted against the
society or any member thereof, or any matter touching the affairs of the society,
except by leave of the Registrar, and subject to such terms as he may impose.
(3) All orders, decisions or awards passed in accordance with this Act or the
rules, shall, subject to the provisions for appeal or revision in this Act be final; and
no such order, decision or award shall be liable to be challenged, set aside, modi-
fied, revised or declared void in any Court -upon- the merits, or upon any other
,ground whatsoever except for want of jurisdiction.
167. Notice necessary in suits.—Save as otherwise provided in this Act, no
.suit shall be instituted against a society, or any a-i-its officers, in respect of any
act touching the business of the society, until the expiration of two months next
after notice in writing has been delivered to the Registrar or left at bla -office; stat-
ing the cause of action, the name, description and place of residence of the plain-
tiff and the relief which he claims, and the plaint shall contain a statement that
.such notice has been so delivered or left.
168. Ruies.—(1) The Administrator may, by notification in the Officiat Gazette,
make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, such rules may be made—
(a) for the whole or any part of the Union territory of Dadra and Niagaakt
Haveli and for any society or class of societies, and
(b) to provide for all matters expressly required or allowed by this Act
to be prescribed by rules.
(3) The power to make rules conferred by this section is subject to the condi-
tion of the rules being made after previous publication. •
(Na. F.10/1/65-UTL-74)
A. D. PANDE, Jt. Secy.
PRINTED IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS,
NEW DELHI AND PUBLISHED BY THE MANAGE3 OP PUBLICATIONS. tELHI, 1965
vow
£06 THE GAZETTE OF INDIA EXTRAORDiNARY [PART Hishc. 5(ii)y
and shall submit. to the Registrar such returns and information as are submitted
by sumlar societies registered under this Act in addition to those which may be
submitted to the Registrar of the State or Union territory where such society is
registered
'(3)_ The provisions of sub-sections (1) and (2) shall not apply to cooperative
SDClitleS to which the provisions oi the Multi-Unit Co—operative Societies Act, 1942
app res,
(4) Nothing in sub—section (1) shall afiect a society which has a branch or a
place of business outside the Union territory of Dadra and Nagar Haveli at the
commencement of this Act
164‘ Registrar and other OifiCCl‘S to be public servants—The Registrar, a person
exercising the powers or the Registrar, a person authorised to audit the accounts of
a society under section 84, or to hold an inquiry under section 36. or to make an
inspection under section 87. and a person appointed as Special Officer under section
81 or as a inominee or board of nominees under section 98, or as a liquidator
under section 108, and all members of the Tribunal shall be deemed to be public
servants within the meaning of section 21 of the Indian Penal Code (XLV of 1860).
mi indemnity for acts done in good faithfiNo 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 purported to
foe done by him by or under this Act.
166. Bar of jurisdiction oi Courts—{1) Save as expressly provided Ln this Act,
no Civil or Revenue Court shall have any jurisdiction in respect of—
(a) the registration of a society or its byelaws. or the amendment of its by-
laws, or the dissolution of Pne counniitee of a society. or the manage
ment of the society on dissolution thereof; or
(b) any dispute required to he referred to the Registrar, or his nominee, or
board of nominees. for decision;
to) any matter concerned with the winding up and dissolution of a suci ,y.
(2) While a society is being {bound up, no suit or other legal proceeding r' ting
to the business of such society shall he proceeded with or instituted against the
society or any member thereofc or any utter touching the afiairs of the society.
except by leave of the Registrar, and subject to such terms as he may impose.
3) All orders. decisions or awards passed in accordance with this Act or the
rules, shall. subject to the provisions for appeal or revision in this Act be final: and
no such order. decision or award shall be noble to be challenged, set aside. modi—
fied, revised or declared void in any Cuu t upon't‘ne merits, or upon any other
ground whatsoever except for want of jurisdictions
167. Notice neecssary in suits—Save as otherwise provided in this Act, no
suit shall be instituted against a society. or any 0? its officers. in respect of any
act touching the business of the society. until the expiration of two months next
after notice in writing has been delivered to the Registrar or left at his Dfiice‘; stat—
ing the cause of action, the name, description an place of residence of the plain-
tiE and the reliel‘ which he claims. and the plamt shall contain a statement that
such notice has been so delivered or left.
lfiB. Ellies.—(l) The Administrator may, by notification in the Ofiiciot Gazette,
make rules for carrying out the purposes of this Act. ‘
(2) In particular and without prejudice to the generality of the foregoing
power, such rules may be made—
(a) tor the whole or any part of the Union territory of Dadra and Nag m
Haveli and for any society or Class of societies, and
(b) to provld for all matters expressly required or allowed by ilis Act
to be prescribed by rules.
(3) T e ower to make rules cor
tic-n of I.
section is subject to the condie
s oublicaticn.
(No, F.10/l/657U'I‘L-7Il)
A. D. PANDE.
rules being more after
Li .
mu. .GoS
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