PUNJABGOVT. GAZ. (EXTRA), JULY 28, 2014
DEPARTMENT OF LEGALAND LEGISLATIVEAFFAIRS, PUNJAB
(SRVN 6, 1936 SAKA)
PART I
GOVERNMENT OF PUNJAB
No. 15.-Leg./2014,-The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 3rd Day of July, 2014, is hereby published for general information:
2.
NOTIFICATION
3.
The 28th July, 20 14 THE PäNJAB CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013 (Punjab Act No. 14 of 2014)
further to amend the Punjab Co-operative Societies Act, 1961. (i)
BE it enacted by the Legislature of the State of Punjab in the Sixty-fourth Year of the Republic of india as follows:
47
AN
1. (1) This Act may be called the Punjab Co-operative Societies Short title and (Amendment) Act, 2013.
ACT
(2) It shall come into force at once. substituted, namely:
In the Punjab Co-operative Societies Act, 1961 (hereinafter referred Amendment of
to as the principal Act), in section 2,
"6. Restrictions on after clause (aa), the following clause shali be inserted, namely:-
(aaa) Chairman" means the Chairman of the committee:"
(ii) in clause (k), the word and" appearingat the end, shallbe
omitted; and
(iii) in clause (), for the sign ." appearing atthe end, the sign and
word*; and'" shall be substituted and thereafter the following
clause shall be added, namely:-
"(m) Vice-Chairman" means the Vice-Chairman of the
committee."
No member other than the Government or a co-operative commencement.
In the principal Act, for section6, the following section shall be Substitutionof
society shall, hold more than such portion of the share
holding of shares. capital ofa co-operative society, as may be prescribed,
section 2 of
Punjab Act 25 of
1961.
section 6 of Punjab Act 25 of
1961.
1
N,
PUNJAB GOVT. GAZ. TRA), 8,
J SRV A)
G ENT OF
DEPARTMENT OF LE I ATIVE AF AIRS,
TI I
Th 2 l , No. 15.-Leg./2014.-The following Act of the Legislature of the State of punjab received the assent of the Governor of Punjab on the 3rd Day of July 2014, is hereby bl d eral ation:-
U - ATIVE CIETI S A DMENT)ACT, 2013
unjab ct No. 14 of 2014)
further to h j o-operative ocieties ct, 1.
BE it enacted by the Legislature of e t f Punja n h
ixty-fourth Year
of epublic I dia ws:-
1. (1) hi ct a l d the Punjab Co-operati ve Societies Short title and (Amendment) Act, 2013.
ON
( l hal n nj o-operative Societies Act, 61 re inafter endment
to as the cipal ct), in 2,- section 2 of
nj ct
(i) ), h o i g se hallb n rt d, na ely:- 1961.
"( a) "Chairman" eans hai an of h miite ;"
i) n ), h or "and" eari g at h , all
it ;
(iii) in e (1), r he g «» eari g at he , he gn d
ord ; " al bstit t d
h r after e owi
al ed, namely:-
" m) "Vice-Chairman" ea h Vi m
mit ."
3. In the principal ct, lowi t al tution section
Subst; a
Whig, namely
Punja ct
over ent - perative
61.
h rt n of e r as ay be scribed,
" e ber h est ctionson society shall, hold or e than
holding of shares. capital ofa co-operative society,
1
which in no case shall exceed one-tenth. of the share capital.".
4. In the principal Act, in section 10, /n sub-section (4), for the sign Amendment of appearing at the end,the sign":" shallbe substitutedand thereafterthe Section 10of following provisos shall be added, namely:-
PUNJAB GOVT. GAZ. (EXTRA), JULY 28, 2014
(SRVN 6, 1936 SAKA)
heard:
Provided that no order refusing to register the amendment shall be passed without giving the co-operative society an opportunity of being
5.
Provided further that the proposal for registration of the amendment shall be disposed of by the Registrar withina period of sixty days from the date of receipt thereof by him.".
In the principal Act, in section 13, in sub-section (1), for the words namely:
the society", the words "majority of the members present and voting at the oeneral meeting at which not less than two third of members for the time being are present" shall be substituted.
48
"two third majority of the members present and voting at a general meeting of section 13 of
Votes of
members.
Provided that
6. In the principal Act, for section 18, the following shall be substituted, Substitution of
(a) a member who has attended less than two general meetings out of the last five general meetings; or
(b) a member who has failed to utilize such minimum services, as may be specified in the bye-laws;or (c)
"18. Every member of the co-operative society shall have one 1961. vote in the affairs of the society:
a person who has been a member of the cooperative society for a period of less than nine months, shall not be eligible to participate in the general meeting of the cO-operative society for election to the committee of the
co-operative society:
Provided further that
(b)
(a) in the case of an equality of votes, the chairman shall
Punjab Act 25 of
have a second or casting vote;
1961.
Amendment of a nominal or associate member shall not have the right
of vote:; and
Punjab Act 25 of
1961.
section 18 of Punjab Act 25 of
NJ B OVT. GAZ. (EXTRA), JULY 28,2014
"
6, 936 KA)
mo case shall exceed one-tenth of the share capital.» Ww
oo
4. Inthe principal Act, in section 10, jn sub-section (4), for the sign at the end, the sign *:" shall be substituted and thereafter t e sos hall be ad ed, namely :-
ov appearing
following provi
provided t at o rder f sing t register t e endment shall be assed ithout giving the co-operative society an opportunity of being heard:
provided rt er at proposal for registration of the amendment shall i sed of y egistrar ithin a period of sixty days from the date f receipt thereof i .".
. t ri cipal ct, ct n 3, in ub-section (/), for the word s
~g o third majority of the members present d voting at a general meeting of the society", the words "majority of the embers
ent t at the
general e ti g t hic t w third of mem
bers for the time being
present" shall substituted.
6. Inthe principal Act, for secti 1 , low al bstituted, namely:-
«18. Every member of the perati e i t al Votes of t irs the society:
members.
h t-
be tended e h w
eeti s o h last iv eral e ti gs; or
(b b a led o ize u
imum
i es, a i in the bye-laws;
or
(¢ a p o h ber o
he perati e
s fo a o o less than nine
onths,
s al n b e ig to p te in the
general meeting of the
co-operati e so fo e e o to
h co mit ee h
c erati e so :
P fu h tha -
(a) in the ca o an e al o v , the ch rm sh h v a second o ca ing v
(b) a i a or asso ate m be sh n h v the righ
of vo e and
Amendment of
section 10 of
Punjab Act 25 of
1961.
Amendment of section 13 of unj Act
1961.
Substitution of ion
ct
1961.
2
7.
pUNJAB GOVT. GAZ. (EXTRA), JULY 28. 2014
(SRVN6, 1936 SAKA)
be substituted.
8.
9.
(c) namely:
"one of its members" the words "one of the members of its committee" shall Section 19 of
49
where the Government is a member of the co-operative society, cach person nominated by the Government on the conmittee shall have one vote.".
In the principal Act, in section 19, in sub-section (2), for the words
In the principal Act, in section 23, for sub-section (1-A), the following Amendment of
stub-section shall be substituted, namely:
Provided that the representative general body shall not alter
any provision in the bye-laws relating to its constitution or
powers:
Amendment of
Provided further that not less than twenty percent of the total
members of the c0-operative society may requisitiona
meetingof
the general body for re-constitution of
the smaller general body. On
receipt ofsuch requisition, the committee
shall call a meeting of the
general body not later than one month
from the date of receipt of
such requisition. If in such a
meeting of the general body, it is
decided by a majority of members
present and voting to reconstitute
the smaller general body,
then the election to such
smaller general
body shall be held within forty
five days thereof.".
"(1-4) Notwithstanding anything in sub-section (), where a 1961. co-operative society consists of not less than one thousand or such greater number of members as may be prescribed, the society may provide in its bye-laws for the constitution of a smaller general body designated as the representative general body, to be elected in the prescribed manner for a term of not more than five years, consisting of such number of members of the society and to exercise all or such of the powers of the general body as may be specificed in the bye-laws and thereupon any reference in this Act to the general body or meeting thereof shall be construed as a reference to the representative general body or its meeting:
"24. Annual general meeting of a co-operative society shall be
Punjab Act 25 of
the financial year every year for the purpose of
1961.
Annual general calledby the Chairman or in his absence bythe Vice
meeting. Chairman within a period of six
months of close of section 23 of
Punjab Act 25 of
In the principal Act, for section 24, the following shall be substituted,
Substiutionof
section 24 of
Punjab Act 25 of
1961.
PUNJAB GOVT. GAZ. (EXTRA), JULY 28.2014
(SRVN 6, 1936 SA or
(¢) where the
49
Government is amember of the cq society, each person nominate by the Gov the committee shall have one vot
-operative
rnm t on
7. Inthe principal Act, in section 19, in sub-section (2), for the word "
a 2).
for the wo
none of 11S members", the words
"on o the members of it committee"
rds
|
ittee
be substituted.
shall
8 Inthe p n l A t in se io 2 for su (1 4), the followi : . "1s In
c b-secti al be su st t d, ely:-
&
Yel) Not ithst ding a in su t (7), w ere a co-operative society consists le ha ho o su greater number of members as ma be pres ri ed, h provide in its bye-laws for the constitut n f al er eral body designated as the representative general body, to be elected in the prescr d manner for a term of not mor than five years, consisting of such number of members of the society and to exercise all or such of the powers of the general body as may be specified in the bye-laws and th e a e n h ct o h eral
body or meetin h f hal st e o he
resentative eral e ting:
Provided that the resentative neral al t
any provision in the e- s o its nstituti n wers:
r vi ed er t t ent rcent f t l
embers of the o-operative ciety a uisiti n e ti g the general body for consti ution of e al er eneral ody.
receipt of such requisition, the mitte al al
a e ting of t e
general body not later e onth o
ate f ceipt f
such equisition. If in such a e ting
f e eneral ody, it is
decided by a ajority of embers prese
nt d oti g consti ute
the aller eneral ody, n t e
l ction t ch aller eneral
body shall be eld within f rty f
e ays eof .".
9. Inthe principal Act, for section 24, t e f l ing shall be substituted,
namely:-
"24. An ual general me ting of a co-operative society pe be
Annual general cal ed by t e Chairman of in his ssencelys X oo
mating, Chairman
within a period of six months of close 0
the fi ancial year every y ear for the purpose of- A e of
section 19 of
P A 25 of
1961.
A e ent of section 23 of P A 25 o
1961.
Substitution of section 24 of Punjab Act 25 of
1961.
3
pUNJAB GOVT. GAZ. (EXTRA), JULY 28, 2014
(SRVN 6, 1936 SAKA)
(a) approval of the programme of the activities of the society preparedby the commitee for the ensuing year;
b) election, if any, of the members of the committee other than nominated members;
(e)
50
(d) disposal of the net profits; considerationof the audit report and the annual report;
(e) appointment of auditor or auditing firm; () information regarding admission and termination of members;
(g) information regarding amendment ofbye-laws registered in the previous year;
(i)
(h) consideration of any inspection report under section 49 of this Act and any inquiry report under section 50 of this Act and action taken thereon by the concerned authority ;
information regarding instructions issued by the Registrar under rule 45 of the Punjab State Co-operative Societies Rules, 1963;
information regarding transfer or lease or mortgage of immovable assets of the co-operative society;
(k) consideration of the loans and advances made to the members of the committee and their relatives, the defaults, if any , and the action taken for recovery thereof; and
) consideration of any other matter which may be brought forward in accordance with the bye-laws:
Provided that if the Chairman or the Vice-Chairman, as the case may be, fails to hold an annual general meeting within the specified period, he shall, after affording an opportunity of being heard,be liable to be removed from the office after the expiry of the specified period:
Provided further that in such a case the Registrar shall hold such meeting either by himself or through an officer authorized by him and such meeting shall have the same effect pUNJAB GOVT. GAZ. (EXTRA), JULY 28,2014 50
(SRVN 6, 1936 SAKA)
— @ ap roval of the program e of the activities of the society (b)
(c)
(d)
(e)
()
ty (h) (i)
(0)
(k) @
prepared by the committee for the ensuing year; election, if any, of the members of the committee other than nominated members:
consideration of the audit report and the annual report; disposal of the net profits;
appointment of auditor or auditing firm; i f r ation regarding admission and termination of members;
i f r ation regarding amendment of bye-laws registered i previous year;
consideration f any inspection report under section 49 f i ct inquiry report under section 50 of i ct t the concerned
y ;
information regarding instructions issued by the Registrar er oft nj State Co-operative Societies
ules, ;
n o ati n regarding transfer or lease or mortgage of m ovable assets of the co-operative society ; c si erati n h oa s and advances made to the bers of th c mit ee and their relatives , the efaults , , and the action taken for recovery the e ; and
co r t o her matter which may be brou ght forw in acco d with the bye-laws:
Provid tha if the C rm or the Vice
-Chairman,
as the case m y be, fails to hold an annual gener al meeting
within the spec fied period he shall, after af fording an
opp y of being heard,be liable to be
removed from the
o fice after the expiry of the specified perio d:
Provided further that in such a cas
e the Registrar shall
hold such m ing either by him lf or throu gh an officer
auth z by him and such meeting shall have t he same effect
4
PUNJAB GOVT. GAZ. (EXTRA), JULY 28, 2014
(SRVN 6. 1936 SAKA)
(i)
as if it was convened by the Chairman or Vice-Chairman himself:
10. In the principal Act, in section 26,
51
Provided further that where the committee of any co-operative society has divided the area of operation of the society into zones in the manner laid down in sub-section (1-4) of section 26, election of the members of the committee may not be held in general meeting.".
for sub-section (), the following sub-section shall be Puniah Act 25 of substituted, namely:
") The members of the committee of a co-operative society shall be elected in the manner prescribed and no person shall be so elected unless he is a share holder of the society:
Provided that the maximum number of members of the committee ofa co-operative society shall not exceed twenty-one:
Provided further that there shall be reservation of one seat for the scheduled castes and two seats for women on the committee of every co-operative society consisting of individuals as members and having members from such class or category of persons.".
(i) for sub-section (7-B), the following sub-section shall be substituted, namely:
"J-B) The ten of office of elected members of the committee and its office bearers shall be five years from the date of election and the term of office bearers and shall be co terminous with the term of the committee:
Provided that the committee may fill a casual vacancy on the committee by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of office of the committee is less than halfof its original term:
Amendment of
Section 26 of
Provided further that such casual vacancy shall be filled in a meeting of the committee held in the presence
1961.
p=
——
PUNJAB GOVT. GAZ. (EXTRA), .
SR )
1s if it as hai an Vi hai an i self:
r vi ed r t here committee co-operative society has divided the area of operation of ciety to es in an er laid n in b-section - ) f ct n 6, t n f embers f mitte
may not be held in general meeting."
10. Inthe principal ct, 26,- 1 on (/), low n o sh substituted, namely :-
=(1) The members of the committee of a co-operative society shall anner prescribed and no person
shall be so elected unless he is a share holder the society:
Provided that the a ber of embers
of the committee of a co-operative society shall not exceed twenty-one:
ded h e vation
h ed es w
women on the committee of every co-operative society nsisti g of individuals as members and having members rom class or category of persons.".
(ii) for sub-section (/-B), the following sub-section shall be substituted, namely:-
"(1-B) term of office of elected members of the committee and its off c rers ll iv rom h
election and the erm of l -
term s i h erm of mitte :
i h t h mit ee may fill a casual
h mit ee inati th am
class of e bers n e t hi h l y
se if h erm ce o the mit is e
h lfo its original term:
Provided further th u l shal
filled in eet of h mit ee d in the presence mendment of
s ct
Punjab Act 25 of
1961.
5
PUNJAB GOVT. GAZ. (EXTRA), JULY 28,2014
(SRVN 6, 1936 SAKA)
of a nominee of the Registrar.".
kii) in sub-section (-D), for the existing proviso, the following shall be substituted, namely:
52
"Provided that the period for which an Administrator may be appointed, shall not in case of a co-operative society carrying on the business of banking exceed one year and shal not exceed six months in case of other co-operative society.".
/iv) in sub-section (2), after the words "sub-section (", the words
"but subject to a ceiling of twenty one members of the committee" shall be added.
11. In the principal Act, in section 26-A,
(i) in sub-section (2), the words and sign "scheduled castes, scheduled tribes or", shall be omitted and thereafter the following proviso shall be added, namely:
* Provided that the maximum number of members of the committee shall not exceed twenty one excluding the members co-opted under sub-section (4).".
(ii) after sub-section (3), the following sub-section (4) shall be added, namely:
"(4) Notwithstanding anything contained in sub-section (), the committee shall co-opt as members from amongst the persons having an experience inthe
field of banking,
management and finance or having specialization in any field
relating to the objects and activities undertaken by sucha
society:
Provided that the number of such co-opted members of
the committee shall not exceed two in addition to twenty-one
members specified in the first provisoto sub-section (1)of
section 26:
Provided further that such co-opted
members shallnot
have the right to vote in any election of the co-operative society
in their capacity as such
member and shall also not to be
eligible to be elected as office bearers
of the committee:
Provided further that the functional
directors of a co
operative society shall also be the
members of the committee
Amendment of
section 26-A of
Punjab Act 25 of
196.
T. Z. TRA), U .2
SRV 1 )
fa i o t Registrar."
(iii) in sub-section (I-D), for the existing proviso, the following ( v
shall be substituted, namely:-
" h h o fo i Administrator be appointed, shall not in case fa co-operative society carr o the busi ess ofba ex on year and shall x ont n ot perati e "
in sub-section (2), after the or "sub-section (1)", the or s
"but subject to a ceiling of twenty embers of the mit l .
In the i al ct, in A,-
(ii)
in sub-section (2), the words and sign "scheduled castes, ul rib or", shall it h after h
following proviso shall be added, namely :-
"Provided that the m m be e ber the mit ee shall w t i h embers t r -secti n ).".
after sub-section (3), th low -secti n all be added, namely:-
*(4) otwithstanding t i t i d -secti n (1), mit ee shall - pt embers om ongst persons eri ce nking,
anagement and n e i ecialization bjects ti ities dert en
society:
r vi ed t ber - pted
embers
mitte al t w dit n
enty-one
embers pecified in the first viso to b-section (1) f
ion
r vi ed r er at - pted
embers al ot
e the right to vote in l cti n of e -operative ci t
in their pacity ember
al l ot
l ible t d ffi e earers
f t e mmitte :
r vided rt er at
ty al l e embers
oft e mmitte
functional i ctors f
o-
operative cie
t of
section 26-A of
nj ct
961
PUNJAB GOVT.GAZ.(EXTRA), JULY 28,2014
(SRVN6, 1936 SAKA)
53
12 In the principal Act, in section 27, for sub-section (1), the following Amendment of shall be substituted, namely:
(a)
and such members shall be excluded for the purpose of counting the total number of members specified in the first proviso of sub-section () of section 26."
() If, in the opinion of the Registrar, a committee or any
member of a committee persistently makes default or is negligent in
the performance of the duties imposed on it or him by this Act or
the rules or bye-laws made thereunder., or commits any act which is
prejudicial to the interest of the society or its members, or makes
default in the implementation of production or development
programmes undertaken by the co-operative society, or there is
stalemate in the constitution or functions of the committee, the
Registrar may, after giving the committee or the member, as the
case may be, a reasonable opportunity to state its or his objections,
if any, by order in writing,
(b)
remove the committee, and appoint a Government servant as
an administrator, to manage the affairs of the society for a
period not exceeding six months, as may be specified in the
order; and
remove the member and get the vacancy filled up through
election for the remaining period of the outgoing member,
according to the provisions of this Act and rules and bye-laws
made there under:
Provided that the committee of any such co- operative
society shall not be superseded or kept under suspension where
there is no Government shareholding or loan
or financial
assistance or any guarantee given by the
Government:
Provided further that in case of a co-operative society
carrying on the business of banking,the
provisions of the
Banking Regulation Act, 1949(10 of 1949) shall
also apply:
Provided further that in case of a cooperative
society
carrying on the business of banking, the
period of six months
mentioned in clause (a) shall be one year.
section 27 of
19%1.
Punjab Act 25 of
planation:-Co-operative societies which
have been allotted land at
Concessional rates or at reserve price by
any statutory authority or
PUNJ GOVT. GAZ (EXTRA). Y . 4
(S , 6 SAKA)
Eh
X k members sh w
h
L
d : all be excluded for the purpose of counting the total number of members ecified the first provis
b-section (1) of section
26." r viso of
12. t principal ct, in section 27, for sub-section (1) ; followi
«hall be substituted. namely:
g
on o in the opinion of the Registrar, a committee or any it or him by this Act or
the iss e-l s ade ther der, o commits any act which is rej udicial t rest o ci t embers, r akes efault implementation production or development p m es undert ken by the co-operative society, or there is ate i nstitution r cti ns mmitte ,
Registrar may, after giv the committe or the member, as the case ma be, a rea nable opportunity to state its or his objections, if any, by order in writi g, -
m ve mitte , a appoint a Government servant as
min strator, to manage the affairs of the society for a od t di g x onths, a sp cif in the
r
remove the e ber h le h o
h e ai i o the o i ember,
i o h provisions oft i c r s
here er:
h h mit ee a co- erative
i y shall ot be eded or kept under sp
ension where
h is ver ent l i g
o in cial
a e r nt e v he ove
rnment:
u r h in fa pera
tive iety
he s ss king, the
i ions of the
i egulati ct, 49 (10 o
f 949) shall also apply:
u h h in a p
erative ociety
h ss o i g
, he p o of ix months
ent in c a (a s l
l year.
b a lo ted land at
Explanation:- C -operative s i t s
i
y sta u ory a ority o
r
concessional rates or at re ve p c
an
Amendment of
section f
Punjab Act 25 of
1961.
7
PUNJAB GOVT. GAZ. (EXTRA), JULY 28. 2014
(SRVN 6, 1936 SAKA)
Government organization shall be deemed to have taken financial assistance from the Government
»
54
lnthe principal Act, after section 34, the following section shall be nsertion of new section 34-A in added, namely: -
Punjab Act 25 of
15.
34-A. Notwithstanding anything contained in the Provincial 19%1. insolvency of Insolvency Act, 1920 (5 of 1920), or any members. corresponding law for the time being in force, the dues of a co-operative society from a member, in insolvency proceedings, shall rank in order of priority next to the dues payable by him to the Government or to the local authority.".
14. In the principal Act, in section 39, for sub-section (2), the following Amendmentof shall be substituted,namely:
(2) On the execution of such agreement, the employer shall, if so required by the co-operative society by a requisition in writing
and so long as the society does not
intimate that the whole of such
debt or demand has been paid, makethe
deduction in accordance
with the agreement within a period of two months of the requisition
made by the co-operative society and
pay the amount so deducted
to the society within a period of
fourteen days after deduction, as if
it were a part of the salary or
wages payable on the day as
required
under the Payment of Wages Act,
1936 (IV of 1936). Such payment
shall be valid discharge of the
employer for his liability to pay the
amount deducted.".
In the principal Act, in
section 48,-
"4) The accountsof co-operative societies hall be audited
at least once in
each year within a
period of six months of the
close of the financial year to which such
accounts relate.
section 39 of
(-A) The accounts
of co-operative
societies shall be
audited by an auditoror auditing firm approved by the general
body of the
co-operative society from out of the panel of auditors or auditing firms approved by the Government or by
an authority
authorized by the
Government in this behalf. The qualifications and experience of
the auditors or
auditing
firms shall be such, as may be
prescribed.";
Punjab Act 25 of
19%1.
Amendment of
(i) for sub-section (), the following
sub-sections shall be Punjab Act 25 of substituted, namely:
section 48 of
1961.
PUN AB OVT. GA (EX A), JULY 28 2014
(SRVN 6, 1936 SAK |
pm . .
Sovernment r anizati sh to have taken f; ken fin ( assistan from the Government.",
54
ancial
13. Inthe principal Act, after section 34, the following secti ol © ely: ion shall be +34-A N t it st di g anything contained in the Provincial
so ency Insolvency ct, 192 (5 of 19 or n
m be corresponding law for the time being in force
d o a co erat so from a m ber, in ss
p di gs, sh rank in o d ri rit n to the du p
by him to the e ent o to the loc a y "
14. In the p n al Act in se o 3 fo su t (2 the fo low shall be substituted ,namely
:-
«(2) the t n of suc ent, h pl yer s ll, if so required by the co-operative society by a e isi in ri n and so long as the i n imate h h hol
of
debt or has i , a h ucti n
ce
with the ment within a period oftw onths o
uisit n
made by the - perative i t o
unt uct d
to the society withina riod of urteen
s r duction,
it were a part of the salary or ages able
ir d
under the ent of Wages Act, | 6
V f 36). ent
shall be valid i arge of e ployer
r i ility
amou ct ".
15. In the principal Act, in ectio n 48, -
(i) for sub-section (1) , the l ing sub-secti ons shall be
substituted, amely:-
"(!) he counts of co-o pe
at least once in each year within perio
e fi ancial year to whi ch ch acco
societies shall be rative societies hall e audited
d of six months f t e
close of th
unts relate.
(1-4) The accounts of co-
audited by an audito r or auditing fi m ap proved by the general body of the co-ope rative society f
out of t e panel o f
auditors or auditin g fi ms approved b y the Government o r by
thority authorize
d by the Governm
ent in this bell.
perience of the au ditors Of auditing be prescribed.
"
operative an au
The qualifications and ex
fi s shall be such, as may
Insertion of new section 34-A in
Punjab Act 25 of
96
A en ent of section 39 of Punjab Act 25
196
Amendment of section 48 of Punjab Act 25 of
1961.
8
DI UNIAB GOVT. GAZ. (EXTRA), JULY 28. 2014
(SRVN6, 1936 SAKA)
(ii) in sub-section (3), for the word "person", the words "auditor or the auditing firm shall be substituted:
..3y in sub-section (4), for the word"person", the words "auditor or the auditing firm" shall be substituted:
(v)
S5
hl in sub-section (5), for the words "Registrar or the person, authorised by him", the words auditor or the auditing firm authorised" shall be substituted:
in sub-section (6), for the words "Registrar or the person
authorised by him under sub-section (1)", the words "auditor
or the auditing firm authorised under sub-section (1-A)", shall
be substituted;
(vi) after sub-section (6), the following sub-sections shall be added, namely:
"(6-A) The audit report of the accounts of an apex co operative society shall be laid before the State Legislature. (6-B) Audit report shall be submitted by the auditor or the auditing firm, as the case may be, to the co-operative society and a copy thereof shall be submitted to the Registrar."; and
(vii) after sub-section (7), the following sub-section shall be added, namely:
"(8) If the Registrar, suo molo, or on the applicationof not less than ten members of a co-operative society finds that it is necessary or expedient to conduct special audit of the accounts of a co-operative society, he may by an order, provide for such
special audit and the provisions of this Act, and the rules
applicable to the audit shall also apply to such special audit:
Provided that such special audit shall be
ordered only
when there is aprima-facie case of fraudor
misappropriation
or embezzlement of funds.'".
16. In the principal Act, in section 71, Amendment in
section 7l of
for sub-sections (), (2) and (3), the following sub-sections Puniab Act No.
25 of 1961.
shall be substituted, namely:
"4) Any person other than a co-operative society Carrying on business under any name or title of whichthe
word co-operative", or its equivalent in any India language,
PUNJAB GOVT. GAZ. (EXTRA). JULY 28.014
(ii)
(iii)
(iv)
(vi)
(vii)
(SRVN 6, 1936 SAKA)
35
in sub-section (3), for the word "person"
or the auditing firm" shall be substituted:
, the words "auditor
in sub-section (4), for the word "per son"
"oe ~ » the word Nn
.
or the auditing firm" shall be substituted: » auditor in sub-section (5), for the words "Registrar or the person, authorised by him", the words "au itor or t e auditing f authorised" shall be substituted; Shin
in sub-section (6), for the words "Regi
strar or the person
authorised by him under b-section (/)", t words "auditor or the uditi g m authorised under sub-section (/-4)", shall be ubstituted;
,
fter b-section ), o i g sub-sections shall be added namely:-
* ) dit ort ounts -
perative society shall be laid before the State Legislature. (6-8) udit ort hall e submitted by the auditor or dit rm. as the case may be, to the co-operative society reof shall be submitted to the Registrar.""; and after sub-section (7), the o low - cti n al added,
ely:-
"(8) I h egistrar, u ol , or on the application of
les han en ber c erati e society finds that it
is n o e di nt to c ct speci al audit of the accounts
a c erati e so , h by an
order, provide for such
sp i l au i and the p s
o th s A t and the rules
ap l to the au s al als
o ap ly to such special audit:
P o d tha such sp
au shall be o dered only
w there is a prima-f cie
a e of fraud or mi propri ation
or emb ent of fun
".
In the princ p A In section 71, -
(i) for sub-seo(1), (2 ) and (3), the followin g sub-sections
sh ll be sub u , n ely:-
"(1) A y person other than a co-o ative society any nam Or title o f w ch the
c ry ng on bu ine s und
v lent in any India l anguage,
w d "co-ope ",
Of its equ!
A ent in
section 71 of
Punjab A No.
250f 1961.
9
pUNJAB GOVT. GAZ. (EXTRA), JULY 28. 2014
(SRVN6, 1936 SAKA)
56
is part, without the sanction of the Government shall be punishable with the fine which may extend to two thousand rupees and in the cases of continuing breach with a further fine which may extend to fifty rupees for every day during which the breach is continued after conviction for the first such breach:
Provided that if a person, having been convicted of an
offenceis again guilty of offence punishable under this sub
section, shall be punishable for the second or subsequent
offence for a term of imprisonment which may extend to three
monthsand shall also be liable to pay fine which may extend
to ten thousand rupees.
(2) Any member or past member or the nominee, heir or legal representative of a deceased member of a co-operative society who contravenes the provisions of sections 3 I and 32 by disposing of any property in respect of which the society is entitled to have a first charge under that section or do any other act to the prejudice of such claim, shall be punishable with fine which may extend to five thousand rupees or with imprisonment upto three months or both.
(3) 'An officer or a member of a co-operative society wilfully making a false return or furnishing false information or any person wilfully or without any reasonable excuse disobeying any summons requisition or lawful written order issued under the provisions of this Act or wilfully failingto display or furnish in the specified manner any information required from him by a person authorized in this behalf under the provisions of this Act, shall be punishable with fine which
may extend to two thousand rupees:
Provided that if a person, having been convictedof an offence under sub-section (3) is again guilty of an offence
punishable under that sub section, he shall be punishable
for the second or subsequent offence
for a term of
imprisonment which may extend to three
months and shall
also be liable to pay fine which may
extend to ten thousand
rupees.";
pUNJAB GOVT. GAZ. (EXTRA), JULY 28.2014
(SRVN 6, 1936 SAKA)
ispart, without he sanction of the Government Shall b e punishable with the fine which may extend to two thousand rupees and in the cases of continuing breach with a further fine which may extend to fifty rupees for every day durin which the breach is continued after conviction for the iy such breach:
56
Provided that i a person, having been convicted of an offence is again guilty of of ence punishable under this sub section, shall be punishable for the second or subsequent of ence for a t of imprisonment which may extend to three months and shall also be l ble t pay fine which may extend to ten t usand rupees.
(2, ny ember r ast ember r t omine , eir
or legal resentative f deceased member of a co-operative ciety ho ntr venes the provisions of sections 31 and 32 i si g of an property in respect of which the society is ntit d first charge under that section or do any r t ice of such claim, shall be punishable i n hi a to five thousand rupees or with
imprison ent h ont o h.
(3) "A o r o a ber a co-operative society
wilfully making a false retu n o furn sh n fa lse information
or any p so wi or w h a
ny reasonable excuse
disob n any sum req ition o
r lawful written order
issued und the pro o of this
Act or wilfully failing to
display or furnish in the spe fied manner any information
requ red from him by a person aut horized in this behalf under
the prov sion this A sha l
be pun shable with fine which
may extend to two thousand r
upee :
Provided that if a person
having been convicted o
f
an o fence under sub-sect
ion (3) is again guilty of an
offence
punishab e under that
sub section, he shall
be punishable
for the second or subs
equent o fence for a t
erm of
imprisonm which may
extend to three months a
nd shall
also be liable to pay fine
which may extend to ten
thousand
rup es.";
10
PUNJAB GOVT.
(SRVN 6, 1936 SAKA)
(ii) in sub-section (4), for the word *five hundred', the word
57
five thousand shall be substituted:
ti for sub-section (), the following sub-section shall be substituted, namely:
(5) Any officer or custodian who wilfully fails to bandover custody of books, accounts, documents records. cash, security and other property belonging to a co-operative society, of which he is an officer or custodian to a person entitled under sections 26, 48, 49, 50or 58 shall be punishable with fine which may extend to two thousand rupees and in the case of a continuing breach with a further fine which may extend to two hundred and fifty rupees for every day during which the breach is continued after conviction for the fist such breach:
(c)
Provided that if a person, having been convicted of an offence is again guilty of an offence punishable under thissub section, he shall be punishable for the second or subsequent offence for a term of imprisonment which may extend to three months and shall also be liable to pay fine which may extend to ten thousand rupees.";
(iv) in sub-section (6), for the words two hundred", the words
"two thousand or imprisonment upto three months or with
both' shall be substituted;
() after sub-section (6), the following sub-section shall be added,
namely:
() Whoever, before during or after any election under
this Act:
(a) fraudulently defacesor fraudulently destroys any nomination paper; or
(0) fraudulently defaces, destroys or removes any list, noticeor
other document affixedby or under the authority or a returning
officer; or
fraudulently defaces or fraudulently destroys any ballot paper or the official
mark on any ballot
paper or any declaration
of
identity, or
.GAZ. (EXTRA), JULY 28.2014
—
—
—
PUNJA GOVT. G Z. (EXTRA). JULY 28.2014
(it)
(iii) sub-section (3), the
)
(v) (a) (b)
VN 6, 1936 SAKA)
sub-secti n ), for the w ord "five —:
. "
red ~five thousand" shall e bstituted:
. h word fol i 2 . bstituted, mely:- low ing sub-section shall
" ) ny officer or custodi i Sal Landover custody of books, ac an w ilf ll ils o sh, security and other property belonging tea oe. — ciety, hi f r o operative
ti er t s 6, 8, 9, 50 or 58 sh he» 10, 47, ll nis able with fine which ay extend to two thousand rupees and in the nt ing it er n hi a
extend to wo ndred d fifty rupees for every ay during hi t nvicti n rst
h ch
Prov tha if , vict d o
e il fn e nis able er
ti n, al nishable h uent
erm m r ent hi a o h
onths al a n hi a d
housand rupees.";
n - t ), h or s "two nd
red", h or s
" w h mpr ent h onths i
both" s l st ; r -secti n ), h lowi -secti n hall e d, namely:-
7) hoever, r r t er
s Act:-
ulently es r ul ently ys ny inat ion
des em ve
s list, tice or frau l t s,
er h t ority ng
her ent x
officer; r
a ulently es f a ul ently st
or e l ar
ll t er O
identity; or
roys any ballot pape r
ny claration f
11
PUNJAB GOVT. GAZ. (EXTRA), JULY 28, 2014
namely:
(SRVN 6, 1936 SAKA)
without due authority supplies any ballot paper to any person or receives any ballot paper from any person or is in possession of any ballot paper; or
S8
lo) fraudulently puts into any ballot box anything other than the ballot paper which he is authorized by law to put in; or withoutdue authority destroys, takes, opens or otherwise interferes, with any ballot box or ballot papers then in use for the purposes of the election; or
(3) fraudulently or without due authority, as the case may be attempts to do any of the foregoing acts or wilfully aids or abets the doing of any such acts; or
(i)
() offers any gift or promises to offer any gratification to any person with the object, directly or indirectly, of inducing, a person to stand or not to stand as, or to withdraw or not to withdraw from, being a candidate at an election;
(ii) amember to vote or refrain from voting at an election, or as a reward to a person for having so stood or not stood or for having withdrawn or not having withdrawn his candidature; or
(iii) a member for having voted or refrained from voting, shall be punishable with imprisonment for a term which may extend to three months.".
17. In the principal Act, for section 74, the following shallbe substituted, Substitution of
"74. (1) Copy of Act, rules and bye- aws ce. o oe open to
inspection. Every co-operative society, shall keep a copy of this
Act, the rules and its bye-laws balance sheet, inspection note and audit report, open to inspection free of charge at all reasonable time at the registered address
of the society.
(2) Every co-operative society, shall provide access to each member of the co-operative societyto the books, minutes of the
meetings of the committee and general body, list of membersand
information and accounts of the co-operative society kept in regular
transaction of its business with sucha member.".
section 74 of
Punjab Act 25 of
1961.
P
e
.
7
namely:-
PUNJ B OVT. GAZ. (EXTRA), JULY 28 2014
(SRVN 6, 1 )
(d) without authority supplies any b
5
allot paper to any person of any ballot paper; o r
(©) fraudulently puts into any ballot box anything other than the b t which he is authorized by law to put in; or of i ut au ri des s, a , o othe i
n res, i l t l t r he n o
h s s f t ;
(© fraudulently or without due authority, as the cas attempts to do any of the foregoing acts o ilf ll abets the doi of a such acts; or
(h) offers any gift or promises to offer any gratification to any person with the object, directly or indirectly, of inducing, -
(i) a person to stand or not to stand as, or to withdraw or not to withdraw from, being a candidate at an election; or
(i ) m ber o rom t t n,
o
o i n t i n
his candidature; or
(iii) a é ber for i ted or ained rom voting, shall be nishable it mpri ent e m hi a onths.".
In r cipal ct, t , owi g all bs tituted,
"74. (1) Every -operative society, shall e p a py this
CopyofAct, c l s its e- s
al ce sheet, ection
l s bye- p te d udit port, pen to ection free of
jaws n tob harge t all nable
m t ist red dres
n to
inspection. f he society.
(2) Every -operative ciety, hall r vide ces to
member of the -operative societ y to the bo ks, inutes f he meetings of the mmittee and ge neral body, list of embers information and accounts of the co-ope rative society kept in regular ransaction of its usiness ith cha em ber."
ubstitution
section 74 of
unj ct
61.
12
pUNJAB GOVT.GAZ. (EXTRA), JULY 28, 2014
(SRVN6, 1936 SAKA)
the principal Act, in section 82, after clause (b), the following Amendment of clause shall be inserted, namely:
59
(bb)any matter relating to service conditions of employees of co-
1961.
operative societies:".
19. In the principal Act, in section 85, in sub-section (2), after clause Amendment of vii). the following clause shall be inserted, namely: section 85 of Punjab Act 25 of
Section 82 ot
Punjab At 25 of
"(xii-a) the minimum qualifications and experience of auditors and 1961. auditing fims under sub-section (1-4) of section 48 for auditing accounts of the co-operative societies;".
H.P.S. MAHAL,
S52/07-2014/Pb. Govt. Press, S.A.S. Nagar Secretary to Govern1ment of Punjab, Department of Legal and legislative Afairs.
PUNJAB GOV I. GAZ (EXTRA), JULY 28.2014
(SRVN6, 1936 SAKA)
18. Inthe principal Act, in section 82, after clause (b), the follow clause shall be inserted, namely:-
ne
59
Amendment of section 82 of Punjab Act 25 of (bb) any matter relating to service conditions of emplo yees of co- 1961
operative societies;
19. Inthe principal Act, in section 85, in sub-section (2), after clause Amendment of » cndment 0 xiii), the following clause shall be
inserted, namely:-
section 85 of
rT .
—— .
Punjab Act 25 of
(xiii-a) the mini um qualifications and exp erience of auditors and 1961 a
auditing firms under sub-section (1-4) of section 48 for auditing
accounts of the co-operative societies;
.P.S. AHAL,
Secretary ove ment of Punjab,
Department egal legislative Affairs. 552/07-2014/Pb. Govt. Pre , 4 8 ar
13