Received the assent of the President of India on the 22nd June, 1961 and first published for general information in the Punjab Government Gazette (Extraordinary), Legislative Supplement, of the 8th July, 1961.
| LEGISLATIVE HISTORY 6 |
An Act to consolidate and amend the law relating to co-operative societies in the State of Punjab.
Be it enacted by the Legislature of the State of Punjab in the Twelfth Year of the Republic of India as follows :-
Preliminary
(2) It extends to the whole of the State of Punjab.
(3) It shall come into force on such date as the Government may, by notification, appoint.
| Object & Reasons6 |
[(a) "associate member" means a member who holds jointly a share of a co-operative society with others but whose name does not stand first in the share certificate.]
[(aa) "bye-laws" means the registered bye-law for time being in force;]
(b) "committee" means the governing body of a co-operative society, by whatever name called, to which the management of the affairs of the society is entrusted;
(c) "co-operative society" means a society registered or deemed to be registered under this Act ;
(d) "co-operative society with limited liability" means a co- operative society the liability of whose members is limited by its bye-laws to the amount, if any, unpaid on the shares individually held by them or to such amount as they may individually undertake to contribute to the assets of the society, in the event of its being wound up ;
(e) "co-operative society with unlimited liability" means a co- operative society the liability of whose members is unlimited for the purpose of contributing jointly and severally to any deficiency in the assets of the society in the event of its being wound up ;
(f) "Government" means Government of the State of Punjab;
(g) "Member" means a person joining in the application for the registration of a co-operative society and a person admitted to membership after such registration in accordance with this Act, the rules and the bye- laws, and includes a nominal and an associate member and the Government when it subscribes to the share-capital of a society ;
[(gg) "net profits" means profits after deduction of establishment charges, contingent charges, interest payable on loans and deposits, audit fee and such other sums as may be prescribed ;
(ggg) "nominal member" means a person admitted to membership as such after registration in accordance with the bye-laws ;]
(h) "officer" means the president, vice-president, chairman, vice- chairman, managing director, secretary, manager, member of committee, treasurer, liquidator, administrator and includes any other person empowered under the rules or the bye-laws to give directions in regard to the business of a co- operative society;
(i) "prescribed" means prescribed by rules ;
(j) "Registrar" means a person appointed to perform the functions of the Registrar of Co-operative Societies under this Act, [****].
(k) "producers society" means a society formed with the object of producing and disposing of goods and commodities as a collective property of its members, and includes a society formed with the object of the collective disposal of the labour of its members;
(l) "rules" means the rules made under [this Act; and]
[(m) "Public Sector Undertaking" means an organization owned by the Government or in which the Government has pervasive control or created by an Act of the Government.]
Registration of Co-operative Societies
[3. Registrar and other officers and their powers. - (1) The Government may appoint a person to be the Registrar of Co-operative Societies for the State.
(2) To assist the Registrar in his function under this Act the Government may appoint such number of Additional Registrars, Joint Registrars, Deputy Registrars, Assistant Registrars and other persons with such designations as it may think fit.
(3) The Government may, by general or special order, confer on any person appointed under sub-section (2), all or any of the powers of the Registrar under this Act.
(4) Every person appointed under sub-section (2) shall exercise his powers subject to the general superintendence and control of Registrar.]
[(5) Notwithstanding anything contained in this Act, where any power of the Registrar is exercised by any person by virtue of the order issued by the Government under sub-section (3), the order passed or decision made by such person shall, for the purposes of appeal be deemed to be the order or decision of that person and not of the Registrar.]
Provided that, unless Government by general or special order otherwise directs, the liability of the society of which a member is a co-operative society shall be limited.
(2) The word limited or its equivalent in any Indian language shall be the last word in the name of every society registered under this Act with limited liability.
[6. Restrictions on holding of shares. - No member other than the Government, a Public Sector Undertaking or a co-operative society shall, hold more than such portion of the share capital of a co-operative society, as may be prescribed which in no case shall exceed one-tenth of the share capital:
Provided that in the case of milk producers co-operative society engaged in the marketing of such other perishable commodity, as may be notified by the Government, from time to time, in this behalf (hereinafter referred to as `society dealing in notified commodity') registered after the commencement of the Punjab Co-operative Societies (Amendment) Act, 1978, no member shall have or claim any interest in the shares of such society exceeding one thousand rupees.]
(2) The application shall be signed.
(a) in the case of a society of which no member is a co-operative society, by at least ten persons qualified in accordance with the requirements of section 5 ; and
(b) in the case of the society of which a member is a co-operative society, by a duly authorised person on behalf of every such society and where all the members of the society are not co-operative societies by ten other members, (or when there are less than ten other members), by all of them.
(a) that the application complies with the provisions of this Act and the rules,
(b) that the objects of the proposed society are in accordance with section 4,
(c) that the proposed bye-laws are not contrary to the provisions of this Act and the rules ; and
(d) that the proposed society has reasonable chances of success, the Registrar may register the society and its bye-laws.
(2) When the Registrar refuses to register a society, he shall communicate the order of refusal together with the reasons therefor, to such of the applicants as may be prescribed.
(3) The application for registration shall be disposed of by the Registrar within a period of two months from the date of receipt thereof by him.
(2) Every proposal for such amendment shall be forwarded to the Registrar and if the Registrar is satisfied that the proposed amendment -
(i) is not contrary to the provisions of this Act and the rules;
(ii) does not conflict with co-operative principles; and
(iii) will promote the economic interests of the members of the society,
he may register the amendment.
(3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.
(4) Where the Registrar refuses to register an amendment of the bye-laws of a co-operative society, he shall communicate the order of refusal together with the reasons therefor, to the society in the manner prescribed.
[10A. Power of direct amendment of bye-laws of co-operative society - (1) If in the opinion of the Registrar, an amendment of the bye-laws of a co-operative society is necessary or desirable in the interest of such a Society or of the co-operative movement, or to bring such bye-laws in conformity with any provision of the Act or rules made thereunder he may by notice in writing, call upon the society to make such amendment within a period of three months of the date of service of the notice.
(2) If within the period specified in Sub-section (1) the co-operative society fails to make such an amendment the Registrar may after giving the society an opportunity of making its representation, register the amendment and issue to the society a copy of the amendment together with a certificate signed by him.
(3) The certificate issued under Sub-section (2) shall be conclusive evidence that the amendment has been duly registered and such amendment shall have the same effect as an amendment registered under Section 10.]
(2) Where a co-operative society changes its name, the Registrar shall enter the new name on the register of co-operative societies in place of the former name and shall amend the certificate of registration accordingly.
(2) When a co-operative 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 any bye-law or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(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 a bye-law of a co-operative society changing the form or extent of its liability shall not be registered or take effect until either -
(a) the assent thereto of all members and creditors has been obtained; or
(b) all claims of members and creditors who exercise the option, referred to in sub-section (2) within the period specified therein have been met in full.
[(a) transfer its assets and liabilities in whole or part to another co-operative society provided the co-operative society to which the assets and liabilities are to be transferred also passes a resolution in the aforesaid manner to accept such assets and liabilities in whole or in part, as the case may be;]
(b) divide itself into two or more co-operative societies.
(2) Any two or more co-operative societies may, with the previous approval of the Registrar and by a resolution passed by a two-third majority of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new co-operative society.
(3) The resolution of a co-operative society under sub-section (1) or sub- section (2) shall contain all particulars of the transfer, division or amalgamation, as the case may be.
(4) When a co-operative society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and notwithstanding any bye-laws or contract to the contrary, any member or creditor shall during the period of one month of the date of service of the notice upon him; have the option of withdrawing his shares, deposits or loans, as the case may be.
(5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the proposal contained in the resolution.
(6) A resolution passed by a co-operative society under this section shall not take effect until, either -
(a) the assent thereto of all the members and creditors has been obtained ; or
(b) all claims of members and creditors who exercise the options referred at in sub-section (4) within the period specified therein have been met in full.
(7) Where a resolution passed by a co-operative society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law, for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
[(8) Where the Registrar is satisfied that it is necessary in the interest of the co-operative society or co-operative societies that -
(i) any co-operative society be divided to form two or more co- operative societies; or
(ii) one or more co-operative societies be amalgamated with any other co- operative society; or
(iii) two or more co-operative societies be amalgamated to form a new co- operative society,
then, notwithstanding anything herein before contained, the Registrar may, after consulting the financing institution, if any, provide for -
(a) the division of that co-operative society into two or more co- operative societies; or
(b) the amalgamation of society or societies -
(i) with any other co-operative society; or
(ii) to form a new co-operative society;
with such constitution including representation on the committee, property rights, interests, liabilities, duties and obligations, as may be specified in the order.
(9) No order shall be made under sub-section (8), unless -
(a) a copy of the proposed order has been sent under certificate of posting to the society or societies concerned and the creditors;
(b) the Registrar has considered the objections received from the society or societies concerned or from any member or creditor of such society or societies within such period, being not less than fifteen days from the date of posting of the proposed order, as may be specified by the Registrar in this behalf in the proposed order.
(10) The Registrar may after considering the objections referred to in sub- section (9), make such modification in the proposed order as he may deem fit and the order may contain such incidental, consequential and supplemental provisions as the Registrar may deem necessary to give effect to the same.
[(11) In case a member or a creditor who had objected to the proposed order under sub-section (9) remains aggrieved with the orders of the Registrar, may make second reference to the Government within thirty days of passing of such order. The Government shall, after affording due opportunity of hearing to the members and creditors who have made second reference to the Government, annul, modify or uphold the order of the Registrar passed under sub-section (9). The decision of the Government in this regard shall be final.
(12) The order passed by the Registrar under sub-section (9) or by the Government under sub-section (11), as the case may be, shall be final and where such an order involves the transfer of any assets and liabilities, the same shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the society in which these are vested under that order without any further assurance.]]
[(1-A) Where one or more co-operative societies are amalgamated with any other co-operative society by an order under sub-section (8) of Section 13, the registration of the co- operative society or co-operative societies, as the case may be, so amalgamated shall stand cancelled and the society or societies whose registration stands so cancelled shall be deemed to have been dissolved and shall cease to exist as a corporate body on the date of the aforesaid order and the members thereof shall become the members of the other co-operative society.]
(2) Where two or more co-operative societies are amalgamated into a new co- operative society in accordance with provisions of section 13, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a co-operative society divides itself into two or more co-operative societies in accordance with the provisions of section 13, the registration of that society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(4) The amalgamation and splitting of co-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting co-operative society or societies or render defective any legal proceedings by or against the co-operative society or societies, and any legal proceedings that might have been continued or commenced by or against the co-operative society or the societies as the case may be, before the amalgamation or splitting, may be continued or commenced by or against the resulting co-operative society or societies.
Members of Co-operative Societies and their Rights and Liabilities
[15. Persons who may become members. - No person shall be admitted as member of a co-operative society except the following, namely:-
(a) an individual competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872);
(b) any other co-operative society;
(c) the Government;
(d) a Public Sector Undertaking; and
(e) such class or classes of persons or associations of persons as may be notified by the Government.]
[15A. Restrictions on individuals in becoming members of certain co-operative societies. - (1) No individual shall be admitted as member of a central or apex society unless such a society has been exempted by the Registrar in this behalf, by a general or special order.
(2) The Central and apex societies having individuals as members on the date of commencement of the Punjab Co-operative Societies (Amendment) Act, 1969 shall retire the shares of such individuals within a period of three years of such commencement in the prescribed manner.
Explanation - For the purpose of this Section, Section 26, Section 26-B and Section 84-A -
(a) "primary society" means a co-operative society whose membership consists exclusively of individuals ;
(b) "Central society" means a co-operative society whose membership includes primary societies ;
(c) "apex society" means a co-operative society whose membership includes central societies.]
[15B. Provisions or admission as member in the case of certain societies. - (1) Notwithstanding anything to the contrary contained in this Act -
(i) every person eligible for admission as a member of a co-operative society shall be deemed to have been admitted as a member of the society from the date of receipt of his application for such admission in the office of that society ;
(ii) the Registrar may of his own motion or on a complaint made by the committee of the society or any aggrieved person by an order determine that such a person is not eligible to be a member of the society and on such determination that person will cease to be a member :
Provided that no such order shall be made unless the person already admitted as a member is given an opportunity of being heard and where an order is to be made on the basis of a complaint it shall be made within a period of thirty days of the receipt thereof.
(2) The provisions of this section shall apply only to a Primary Land Mortgage Bank and to a co-operative society having one of its objects advancing of loans for the purpose of raising of crops or seasonal agricultural operations.]
(2) A nominal or associate member shall not be entitled to any share in any form whatsoever in the assets or profit of the co-operative society.
(3) Save as provided in this section, a nominal or associate 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 bye-laws of the society.
(a) in the case of an equality of votes, the Chairman shall have a second or casting vote;
(b) a nominal or associate member shall not have right of vote;
(c) where the Government is a member of the co-operative society, each person nominated by the Government on the committee shall have one vote.
[(2) Notwithstanding anything contained in sub-section (1), a co-operative society which is a member of another co-operative society, may, subject to the rules, appoint one of the members who is eligible to vote on its behalf in the affairs of that other society.
Explanation. - In case the member appointed by a society, to vote on its behalf in the affairs of another society of which such society is a member, gets elected to the committee of that society, his term of office shall be co-terminus with the term of committee of that society.]
(i) in the case of a co-operative society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid ;
(ii) in the case of a co-operative society with limited liability the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the society, or on his application within one month of the death of the deceased member to any person specified in the application who is so qualified;
(iii) no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.
(2) A co-operative society shall, subject to the provisions of Section 31 and unless within six months of the death of member prevented by an order of a competent Court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.
(3) All transfers and payments made by a co-operative 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.
(a) in the case of a past member, on the date on which he ceased to be a member;
(b) in the case of deceased member, on the date of his death;
shall continue for a period of two years from such date.
(2) Where a co-operative society is ordered to be wound up under Section 57, the liability of a past member or of the estate of a deceased member who ceased to be member or died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of his ceasing to be a member or death, as the case may be.
Management of Co-operative Societies
[(1A) Notwithstanding anything in sub-section (1), where a co-operative society consists of not less than such 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 three 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 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 meetings:
Provided that the representative general body shall not alter any provision in the bye-laws relating to its constitution or powers.]
(2) Notwithstanding anything contained in sub-section (2) of Section 19, each delegate shall have one vote in the affairs of the society.
(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year;
(b) election, if any, of the members of the committee other than nominated members;
(c) consideration of the audit report and the annual report ;
(d) disposal of the net profits; and
(e) consideration of any other matter which may be brought forward in accordance with the bye-laws.
[Provided 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 (1A) of Section 26, election of the members of the committee may not be held in general meeting.]
(2) If a special general meeting of a co-operative society is not called in accordance with requisition referred to in sub-section (1), the Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the committee.
Provided that the maximum number of members of the committee of a 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.]
[(1A) The committee of any co-operative society may subject to the approval of the Registrar, divide the area of operation of the society into zones for the purpose of election of members of the committee.]
[(1-B) The term 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 coterminous 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 half of its original term:
Provided further that such casual vacancy shall be filled in a meeting of the committee held in the presence of a nominee of the Registrar.]
[(1-C) Each committee shall, ninety days before the expiry of its term, make arrangements for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws made thereunder ;]
[(1-D) Where any committee has ceased to hold office and no committee has been constituted in accordance with the provisions of this Act and rules and bye- laws made thereunder, the Registrar may, by an order in writing, appoint a Government employee as an Administrator for such period as may, from time to time, be specified in the order and the Administrator shall, before the expiry of the period of his appointment, arrange for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws made thereunder :]
[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 shall not exceed six months in case of other co-operative society.]
[Explanation. - The delay caused in constitution of an elected committee due to judicial proceedings in civil courts in this regard, shall be excluded at the time of computing the period for which an Administrator is appointed.]
[(1E) The provisions of sub-section (3) and sub-section (4) of section 27 shall apply to the Administrator appointed under sub-section (1D) as if the Administrator had been appointed under that section.]
[(1F) Notwithstanding anything contained in this section, where the bye-laws of a society so provide, the first committee may be nominated by the Registrar for a period of six months extendable upto one year in the case of primary society, and for a period of one year extendable upto three years in the case of a central society or an apex society :
Provided that the Registrar may make such changes in the membership of a nominated committee at the time of each extension, as he may consider appropriate, subject, however, to the condition that no mid-term change shall be made during any of the extended periods.]
(2) Notwithstanding anything contained in sub-section (1) [but subject to a ceiling of twenty one members of the committee], -
[(a) Where the Government have subscribed to the share capital of a co-operative society or has guaranteed the repayment of the principal of and payment of interest on debentures issued for loans raised by a co-operative society, the Government or any person authorised by it in this behalf, shall have the right to nominate on the committee such number of persons, not exceeding three or one- third of the total number of members thereof, whichever is less, as the Government may determine :
Provided that where the Government have subscribed to the share capital of a co-operative society to the extent of twenty lacs of rupees or more, the Government may, notwithstanding anything contained in the bye-laws of the society, -
(a) appoint one of the members nominated in the aforesaid manner as Chairman of the committee of such society ; or
(b) nominate another member in addition to those nominated in the aforesaid manner and appoint him as Managing Director :
Provided further that no person shall be appointed to act as Managing Director unless he is a member of the Indian Administrative Service, Punjab Civil Service (Executive Branch) or a Deputy Registrar, a Joint Registrar or an Additional Registrar, Co-operative Societies;]
[Provided further that the condition of share capital of twenty lacs of rupees or more mentioned in the first proviso to clause (a) of subsection (2) of section 26 of the Punjab Co-operative Societies Act, 1961, shall not apply in the case of any Central Co-operative Bank, which has been provided finance by the Government, the Government of India, the National Bank for Agriculture and Rural Development or the Reserve Bank of India and the Government may appoint as Managing Director of such Bank, any person, who is a Member of the Indian Administrative Service, the Punjab Civil Service (Executive Branch), a Deputy Registrar, a Joint Registrar or an Additional Registrar of Co-operative Societies or is a professional having specialization in the field of banking and possessing the qualifications and experience specified by the Government in this behalf.]
(b) Where the Industrial Finance Corporation, the State Finance Corporation or any other financing institution notified in this behalf by the Government has provided finance to a co-operative society, the Industrial Finance Corporation, State Finance Corporation or other financing institution, as the case may be, shall have the right to nominate one person on the committee.
[(2A) Where the Government appoints a Chairman or Managing Director under the proviso to clause (a) of sub-section (2) the Chairman or Managing Director, if any, as the case may be, holding office immediately before such appointment shall cease to hold office on such appointment.
(2B) The terms and conditions of service of the Managing Director or Chairman, as the case may be, appointed by the Government shall be such as may be determined by the Government and the remuneration payable to the Managing Director for Chairman as the case may be, shall be paid out of the funds of the co-operative society.]
(3) A person nominated under sub-section (2) shall hold office during the pleasure of the Government or the Corporation or other financing institution as the case may be.
(4) Where, in a co-operative society in which shares have been subscribed for liability by way of guarantee for borrowing exceeding fifty per centum of the working capital of the society has been undertaken by the Government, a difference of opinion in respect of any matter arises between the nominated members of the committee and other members thereof the matter shall be referred by the committee to the Government whose decision thereon shall be final and will operate as if the same were a decision taken by the committee.
[26A. Co- option of members. - (1) Notwithstanding anything in section 26, the Registrar may, by an order in writing, direct the committee of any co-operative society or any class of co-operative societies to co-opt in the prescribed manner for serving on the committee such number of members not exceeding two as may be specified in the direction.]
(2) Where a direction is issued under sub-section (1), co-option shall be made from amongst members of the co-operative society belonging to scheduled castes, scheduled tribes or backward classes or from amongst members who as landowner or tenant or as both do not hold more than the prescribed area of agricultural land and fulfil the prescribed conditions.
(3) Members co-opted under sub-section (2) for serving on the committee of a co-operative society shall have the same rights and privileges and shall be subject to the same liabilities as elected members of the committee of that society.
26B. Restrictions on membership etc.. - (1) No individual shall, at any time, be a member of committee of -
(a) more than two primary societies; and
(b) more than one central and one apex society:
Provided that nothing in this sub-section shall apply to a member nominated under sub-section (2) of Section 26 or to a member of the committee of an apex or central society nominated to serve on the committee of another apex or central society, as the case may be, in accordance with the provisions of their bye-laws.
[(2) No person shall be eligible for being elected to the committee of any co-operative society after he has served on the committee of that co-operative society for two continuous terms, unless a period of not less than one term has expired since he last so served.
Explanation - For the purpose of computing the period of two terms under sub-section (2), if a person ceased to serve on the committee on account of resignation tendered by him, he shall be deemed to have so served for the full term in which resignation was tendered].
[27. Removal or suspension of committee or member thereof. - (1) 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,-
(a) 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
(b) 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.
Explanation 1. - Co-operative societies which have been allotted land at concessional rates or at reserve price by any statutory authority or Government organization shall be deemed to have taken financial assistance from the Government.]
[Explanation 2. - The delay caused in constitution of an elected committee due to judicial proceedings in civil courts in this regard, shall be excluded at the time of computing the period for which an Administrator is appointed as provided in clause (a).]
(2) Where the Registrar, while proceeding to take action under sub-section (1) is of opinion that suspension of the committee or member during the period of proceedings is necessary in the interest of the co-operative society, he may suspend the committee or member, as the case may be, and where the committee is suspended, make such arrangements as he thinks proper for the management of the affairs of the society till the proceedings are completed:
Provided that if the committee or member so suspended is to be removed, it or he shall be reinstated and the period of suspension shall count towards its or his term.
(3) The Administrator so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have powers to perform all or any of the functions of the committee or of any officer of the society and take all such actions as may be required in the interest of the society.
(4) The Registrar may fix the remuneration payable to the person appointed as Administrator and the amount of such remuneration and other costs, if any, incurred in the management of the society shall be payable from its funds.
(5) The Administrator shall, before the expiry of his term of office arrange for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws framed thereunder.
(6) Before taking any action under sub-section (1) in respect of a co-operative society, the Registrar shall consult the financing bank to which the society is indebted.
(7) A member who is removed under sub-section (1) may be disqualified for being elected to nay committee for such period not exceeding three years as the Registrar may fix.]
(b) If the committee of a co-operative society is reconstituted at a general meeting of the society or, the committee of a society is removed by the Registrar under section 27 or if the society is ordered to be wound up under section 57 and the outgoing members of the committee refuse to hand over charge of the records and property of the society to those having or entitled to receive such charge;
the Registrar may apply to the magistrate, within whose jurisdiction the society functions, for securing the records and property of the society.
(2) On receipt of an application under sub-section (1), the magistrate may, by a warrant, authorise any police officer not below the rank of Sub-Inspector, to enter and search any place where the records and the property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new committee or Administrator of the society or of the liquidator as the case may be.
Privileges of Co-operative Societies
(2) No person shall transfer any property which is subject to a charge under sub-section (1) except with the previous permission in writing of the co-operative society which holds the charge.
(3) Notwithstanding anything contained in any law for the time being in force, any transfer of property made in contravention of the provisions of sub-section (2) shall be void.
(4) The charge created under sub-section (1) shall be available as against any claim of the Government arising from a loan granted under the Land Improvement Loans Act, 1873 (19 of 1873), or the Agriculturists Loans Act, 1884 (12 of 1884), after the grant of the loans by the society.
(i) 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 which shall state that the applicant 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, required 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;
(ii) any person who has borrowed 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 land or has any interest in land as a tenant shall, as soon as possible make a declaration in the form and to the effect referred to in clause (i);
(iii) a declaration made under clause (i) or clause (ii) may be varied at any time by a member with the consent of the society in favour of which such charge is created;
(iv) no member shall alienate the whole or any part of the land or interest therein specified in the declaration made under clause (i) or clause (ii) until the whole amount borrowed by the member together with interest thereon is paid in full :
Provided that for the purpose of paying in full to the society the whole amount borrowed by the member together with interest thereon, the member may, with the previous permission in writing of the society and subject to such conditions as the society may impose, alienate the whole or any part of such land or interest therein:
Provided further that standing crops on any such land may be alienated with the previous permission of the society;
(v) any alienation made in contravention of the provisions of clause (iv) shall be void:
(vi) subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue, there shall be a first charge in favour of the society on the land or interest specified in the declaration made under clause (i) or clause (ii) for and to the extent of the dues owing by him on account of the loans advances;
(vii) the record of rights shall also include the particulars of every charge on land or interest created under a declaration under clause (i) or clause (ii) notwithstanding anything contained in section 31 of the Punjab Land Revenue Act, 1887.
Explanation - For the purposes of this section, society shall mean any co-operative society or class of co-operative societies specified in this behalf by the Government by a general or special order.
(a) the date on which any person entered in such register or list became a member;
(b) the date on which any such person ceased to be member.
(2) No officer of a co-operative society and no officer in whose office the books of a co-operative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under order of the court or the arbitrator made for special cause.
(1) any instrument relating to shares in a co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(2) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder thereof the security afforded by a registered instrument whereby the society has mortgaged, conveyed, or otherwise transferred 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
(3) an endorsement upon or transfer of any debenture issued by any such society.
(2) The Government may, by notification remit in respect of any class of co- operative societies-
(a) the stamp duty chargeable under any law for the time being in force in respect of any instrument executed by or on behalf of a co-operative society or by an officer or member thereof and relating to the business of such society, or any class of such instruments or in respect of any award or order made under this Act, in cases, where, but for such remission the co- operative society officer or member as the case may be, would be liable to pay such stamp duty;
(b) any fee payable under any law for the time being in force relating to the registration of documents or court fees.
Explanation - In this sub-section "Government" means in relation to stamp duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts, the Central Government and save as aforesaid the Government.
(3) The Government may, by notification exempt any class of co-operative societies from-
(b) taxes on agricultural income;
(c) taxes on sale or purchase of goods; and
(d) taxes on professions, trades, callings and employment.
(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, make the deduction in accordance with the agreement and pay the amount so deducted to the society, as if it was a part of the salary or wages payable in 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.
(3) If after the 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 society shall be entitled to recover any such amount from the employer as arrears of land revenue and the amount so due from the employer shall rank in priority in respect of the liability of the employer equal to that of the wages in arrears.
(a) subscribe to the share capital of a co-operative society;
(b) give loans or make advances to co-operative society;
(c) guarantee the repayment of principal and payment of interest on debentures issued by a co-operative society;
(d) guarantee the repayment of share capital of a co-operative society and dividends thereon at such rates as may be specified by the Government;
(e) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society; and
(f) give financial assistance in any other form, including subsidies to any co-operative society.
Properties and Funds of Co-operative Societies
Provided that after at least one-tenth of the net profits in any year have been carried to the reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made among the members to such extent and under such conditions as may be prescribed by the rules or bye-laws.
(a) in the post office savings bank; or
(b) in any of the securities specified in Section 20 of the Indian Trust Act, 1882; or
(c) in the shares or securities of any other co-operative society; or
(d) with any bank carrying on the business of banking approved for this purpose by the Registrar; or
(e) In any other mode permitted by the rules.
(2) Any investments or deposits made before the commencement of this Act which would have been valid if this Act had been in force are hereby ratified and confirmed.
Provided that with the general or special sanction of the Registrar a co-operative society may make loan to another co-operative society.
(2) Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to a depositor on the security of his deposit.
Audit, Inquiry, Inspection and Surcharge
(2) The audit under sub-section (1) 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 person auditing the accounts of a co-operative society shall have free access to the books, accounts, papers, vouchers, stock and other property of such society and shall be allowed to verify its cash balance and securities.
(4) The directors, managers, administrator and other officers of the society shall furnish to the person auditing the accounts of a co-operative society all such information as to its transactions and working as such person may require.
(5) The Registrar or the person authorised by him under sub-section (1) to audit the accounts of a co-operative society shall have power where necessary -
(a) to summon at the time of his audit any officer, agent, servant or member of the society, past or present, who has reason to believe can give valuable information in regard to transactions of the society or the management of its affairs; and
(b) to require the production of any book or document relating to the affairs of, or any cash or securities belonging to the society by officer, agent, servant or member in possession of such books, documents, cash or securities and in event of serious irregularities discovered during audit, to take them into custody.
(6) If at the time of audit the accounts of a society are not complete, the Registrar or the person authorised by him under sub-section (1) to audit, may cause the account to be written up at the expense of the society.
(7) Audit fee, if any due from any co-operative society, shall be recoverable in the same manner as is provided in Section 67.
(2) The Registrar or the person authorised by him under sub-section (1) shall have following powers, namely :-
(a) he shall at all times have, for purposes of examination, free access to the books, accounts, cash and other properties belonging to or in custody of the society and may summon any person in possession or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same at any place within the district within which the society has its registered address; [and may if considered necessary, by an order in writing, direct the society to hand over to him all such books, accounts, documents and securities as may be specified in the order];
(b) he may, notwithstanding any rule or bye-law specifying the period of notice for a general meeting of the society, require the officers of the society to call a general meeting at such time and place at the headquarters of the society to consider such matters, as may be directed by him; and where the officers of the society refuse or fail to call such a meeting, he shall have power to call it himself;
(c) he may summon any person who is reasonably, believed by him to have any knowledge of the affairs of the society to appear before him at any place at the headquarter of the society or any branch thereof and may examine such person on oath.
(3) Any meeting called under clause (b) of sub-section (2) shall have all the powers of a general meeting called under the bye-laws of the society and its proceedings shall be regulated by such bye-laws.
(4) The Registrar shall communicate a brief summary of the report of the inquiry to the society the financing institutions, if any, to which the society if affiliated and to the persons or authority, if any, at whose instance the inquiry is made.
Provided that no such inspection shall be made unless the applicant
(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 a reasonable time; and
(b) deposits with the Registrar such sum as security for the costs of proposed inspection as the Registrar may require.
(2) The Registrar shall communicate the result of any such inspection to the creditor.
(a) no order of the apportionment of the costs shall be made under this section unless the society or the person liable to pay the costs thereunder has had a reasonable opportunity of being heard;
(b) the Registrar shall state in writing under his own hand the grounds on which the costs are apportioned.
Provided that no such inquiry shall be held after the expiry of six years from the date of any act or omission referred to in this sub-section.
(2) Where an inquiry is made under sub-section (1), the Registrar may, after giving the person concerned, an opportunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and costs or compensation to such extent, as the Registrar may consider just and equitable.
Settlement of Disputes
(a) among members, past member and persons claiming through members, past members and deceased member; or
(b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society or liquidator, past or present; or
(c) between the society or its committee and any past committee, any officer, agent or employee; or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any deceased officer, deceased agent, or deceased employee of the society; or
(d) between the society and any other co-operative society, between a society and liquidator of another society or between the liquidator of one society and the liquidator of another society;
such dispute shall be referred to the Registrar for decision and no court shall have jurisdiction to entertain any suit or other proceedings in respect of such dispute.
(2) For the purposes of sub-section (1), the following shall be deemed to be disputes touching the constitution, management or the business of a co- operative society, namely-
(a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representative of a deceased member, whether such debt or demand be admitted or not;
(b) a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor whether such debt or demand is admitted or not;
(c) any dispute arising in connection with the election of any officer of the society.
(3) If any question arises whether a dispute referred to the Registrar under this section is or is not a dispute touching the constitution, management or the business of a co-operative society, the decision thereon of the Registrar shall be final and shall not be called in question in any court.
(a) decide the dispute himself; or
(b) transfer it for disposal to any person who has been invested by the Government with powers in that behalf; or
(c) refer it for disposal to one arbitrator.
(2) The Registrar may withdraw any reference transferred under clause (b) of sub-section (1) or referred under clause (c) of that sub-section and decide it himself or refer the same to another arbitrator for decision.
(3) The Registrar or another person to whom a dispute is referred for decision under this section may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in the interest of justice.
Winding up of Co-operative Societies
(2) The Registrar may of his own motion make an order directing the winding up of a co-operative society -
(a) where it is a condition of the registration of the society that the society shall consist of at least ten members and the number of members has been reduced to less than ten; or
(b) where the co-operative society has not commenced working or has ceased to function in accordance with co-operative principles.
(3) The Registrar may cancel an order for the winding up of a co-operative society, at any time, in any case where, in his opinion, the society should continue to exist.
(4) A copy of such order shall be communicated by registered post of the society and to the financing institutions, if any, of which the society is a member.
(2) A liquidator shall, on appointment, take into his custody or under his control the property, effects and actionable claims to which the society is or appears to be entitled and shall take such steps as he may deem necessary or expedient, to prevent loss or deterioration of, or damage to such property, effects and claims. He may carry on the business of the society so far as may be necessary with the previous approval of the Registrar.
(3) Where an appeal is preferred under Section 68 an order of winding up of a co-operative society made under Section 57 shall not operate thereafter until the order is confirmed in the appeal:
Provided that the liquidator shall continue to have custody or control of the property effects and actionable claims mentioned in sub- section (2) and have authority to take the steps referred to in that sub- section.
(4) Where an order of winding up of a co-operative society is set aside in appeal the property, effects and actionable claims of the society shall revest in the society.
(2) Such liquidator shall also have power, subject to the control of the Registrar-
(a) to institute and defend suits and other legal proceedings on behalf of the co-operative society by the name of his office;
(b) to determine from time to time the contribution (including debts due and costs of liquidation) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the society;
(c) to investigate all claims against the co-operative society and subject to the provisions of this Act, to decide questions of priority arising between claimants;
(d) to pay claims against the co-operative society, including interest up to the date of winding up according to their respective priorities, if any, in full or rateably, as the assets of the society may permit; the surplus, if any, remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case;
(e) to determine by what persons and in what proportions the costs of the liquidation are to be borne;
(f) to determine whether any person is a member, past member or nominee of deceased member;
(g) to give such directions in regard to the collection and distribution of the assets of the society as may appear to him to be necessary for winding up the affairs of the society;
(h) to carry on the business of the society so far as may be necessary for the beneficial winding up of the same;
(i) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the society may be rendered liable;
(j) to make any compromise or arrangement with any person between whom and the society there exists any dispute and to refer any such dispute to arbitration;
(k) after consulting the members of the society, to dispose of the surplus, if any, remaining after paying the claims against the society, in such a manner as may be prescribed; and
(l) 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 apprehending liability to the co-operative society and all questions in any way relating 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.
(3) When the affairs of a co-operative society have been wound up, the liquidator shall make a report to the Registrar and deposit the records of the society in such place as the Registrar may direct.
(2) An order passed under sub-section (1) shall be communicated by registered post to the President of the society and to the financing institutions, if any, of which the society was a member.
Execution of Awards, Decrees, Orders and Decisions
Provided that no order shall be made under this section unless the member, past member or nominee, heir or legal representative of the deceased member, has been served with a notice in the manner prescribed.
[63. Execution of certain decisions, award and orders. - Every decision, award or order duly passed under Sections 54, 56, 62, 68 or 69 shall, if not carried out -
(a) on a certificate signed by the Registrar or any person authorised by him in this behalf, be deemed to be decree of a civil court and shall be executed in the same manner as decree of such court; or
(b) be executed by the Registrar or any other person subordinate to him, empowered by the Registrar in this behalf, by the attachment and sale or by sale without attachment of any property of the person or of the co- operative society against whom the order, decision or award has been obtained or passed; or
(c) be executed according to the law for the time being in force for the recovery of arrears of land revenue :
Provided that an application for the recovery of any sum in the last aforesaid manner shall be made to the Collector and shall be accompanied by a certificate signed by the Registrar or any person authorised by him in this behalf.]
(a) dispose of the whole or any part of the property ; or
(b) remove the whole or any part of the property from the local limits of the jurisdiction of the Registrar, the Registrar may unless adequate security is furnished, direct the conditional attachment of the said property or such part thereof as he thinks necessary. Such attachment shall be executed by a civil Court having jurisdiction in the same way as on attachment order passed by itself and shall have the same effect as such an order:
Provided that the powers of the Registrar under this section shall not be delegated to any officer below such rank as may be prescribed.
(2) Sums due from a co-operative society to Government and recoverable under sub-section (1) may be recovered, firstly from the property of the society, secondly, in the case of a society the liability of the members of which is limited, from the members, past members or the estates of deceased members, subject to the limit of their liability; and thirdly, in the case of other societies, from the members, past members or the estates of the deceased members:
Provided that the liability of past members and the estates of deceased members shall in all cases be subject to the provisions of Section 22.
[67A. ***.]
| OLD LAW 6 |
CHAPTER XI
Appeals and Revision
(a) an order of the Registrar made under sub-section (2) of section 8 refusing to register a society;
(b) an order of the Registrar made under sub-section (4) of Section 10 refusing to register an amendment of the bye-laws of a co-operative society;
[(b) an order of the Registrar made under section 10A directing amendment of the bye-laws of a co-operative society] ;
(c) a decision of a co-operative society, other than a producers' society, refusing to admit any person as a member of the society who is otherwise duly qualified for membership under the bye-laws of the society;
(d) a decision of a co-operative society expelling any of its members;
[(e) an order made by the Registrar removing or suspending a committee or a member thereof under Section 27] ;
(f) an order made by the Registrar under Section 52 apportioning the cost of an inquiry held under Section 50 or an inspection made under Section 51;
(g) any order of surcharge under Section 54;
(h) any decision or award made under Section 56;
(i) an order made by the Registrar under Section 57 directing the winding up of a co-operative society;
(j) any order made by the liquidator of a co-operative society in exercise of the powers conferred on him by Section 59;
(k) any order made under Section 65:
[(l) grant of a certificate under Section (2) of Section 67-A for the recovery of the amount due from a member on account of loan and interest thereon.]
[(2) An appeal against any decision or order under sub-section (1) shall be made within sixty days from the date of decision or order -
(a) if the decision or order was made by the Assistant Registrar to the Deputy Registrar;
(b) if the decision or order was made by the Deputy Registrar to the Registrar or such Additional Registrar or Joint Registrar as may be authorised by the Registrar in this behalf;
(c) if the decision or order was made by the Joint Registrar or Additional Registrar, to the Registrar;
(d) if the decision or order was made by the Registrar, to the Government;
(e) if the decision or order was made by any other person, to the Registrar or such Additional Registrar to Joint Registrar or Deputy Registrar or Assistant Registrar as may be authorised by the Registrar in this behalf.
(3) No appeal shall lie under this section from any decision or order made by any authority in appeal.
(4) Any appeal under sub-section (1) pending immediately before the commencement of the Punjab Co-operative Societies (Amendment) Act, 1969 before any authority shall stand transferred to the authority to whom such appeal lies on such commencement.]
[69. Revision. - The State Government and the Registrar may, suo moto or on the application of a party to a reference, call for and examine the record of any proceedings in which no appeal under Section 68 lies to the Government or the Registrar, as the case may be, for the purpose of satisfying itself or himself as to the legality or propriety of any decision or order passed and if in any case it appears to the Government or the Registrar that any such decision or order should be modified, annulled or revised, the Government 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 fit].
(i) The application of a party to a reference shall not lie before the Registrar or the Government, as the case may be, if appeal under section 68 of the Act lies or has been availed of by such a party to a reference;
(ii) The application of a party to a reference shall not lie before the Registrar or the Government, as the case may be, if an order or decision is made in revision by the Registrar or any authority authorized by him in this regard;
(iii) No revision shall lie under section 69 against any order passed under the service rules of the concerned co-operative societies where in a revision is already provided in the service rules of that society; and
(iv) No revision under section 69 shall be available against any office order passed by the Registrar or his subordinates.]
Co-operative Banks
70A. Order for winding up reconstruction, supersession of Committee etc. of [insured Co-operative Bank] - Notwithstanding anything contained in this Act in the case of a [insured]Co-operative bank, -
(1) an order for winding up or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction [including division or reorganisation]of the bank may be made only with the previous sanction in writing of the Reserve Bank of India;
(2) an order for the winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in Section 13-D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (Central Act 47 of 1961);
(3) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the bank being conducted in the manner detrimental to the interests of the depositors or for securing the proper management of the bank an order shall be made by the Registrar for supersession of the committee of the bank and the appointment of an administrator therefor for such period or periods not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank of India, and the administrator so appointed shall after the expiry of his term of office continue in office until the day immediately preceding the date of the first meeting of the committee of such bank;
(4) an order for winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction [including division or reorganisation] or an order for the supersession of the committee of the bank and the appointment of an administrator therefor made with the previous sanction in writing or on the requisition of the Reserve Bank of India shall be final and shall not be liable to be called in question in any manner in any court, and
(5) the liquidator or the insured [co-operative]bank or the transferee bank, as the case may be, shall be under an obligation to repay to the Deposit Insurance and Credit Guarantee Insurance and Credit Guarantee Corporation Act, 1961 (Central Act 47 of 1961) in the circumstances to the extent and in the manner referred to in Section 21 of that Act.
Explanation - In this section,
(a) the expression "co-operative bank" shall have the meanings assigned to in the Deposit Insurance and Credit Guarantee Corporation Act, 1961;
(b) the expression "insured co-operative bank" means a co-operative [Society]which is an insured bank under the provisions of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (Central Act 47 of 1961);
[(bb) the expression "Reserve Bank of India" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (Central Act 2 of 1934)]
(c) the expression "transferee bank" in relation to an insured co- operative bank means a co-operative bank -
(i) with which such insured co-operative bank is amalgamated, or
(ii) to which the assets and liabilities of such insured co-operative bank is transferred; or
(iii) into which such insured co-operative bank is divided under sub-section (1) of section 13.
Offences and Penalties
(2) Any member or past member or the nominee, heir or legal representative or a deceased member of a co-operative society who contravenes the provisions of Sections 31 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 hundred rupees.
(3) A co-operative society or an officer or member thereof 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 not furnishing any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two hundred rupees.
(4) Any employer who, without sufficient cause, fails to pay to a co-operative society the amount deducted by him under Section 39 within period of fourteen days from the date on which such deduction is made shall, without prejudice to any action that may be taken against him under any law for the time being in force, be punishable with fine which may extend to five hundred rupees.
(5) Any officer or custodian who wilfully fails to hand over custody of books, 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, 50 or 58 shall be punishable with fine which may extend to two hundred rupees and in case of a continuing breach with a further fine which may extend to[twenty-five rupees] for every day during which the breach is continued after conviction for the first such breach.
(6) Any person who fraudulently acquires or abets in the acquisition of any such property which is subject to a charge under Sections 31 and 32 shall be punishable with fine which may extend to two hundred rupees.
(2) No prosecution shall be instituted under this Act without the previous sanction of the Registrar and such sanction shall not be given without giving to the person concerned a reasonable opportunity to represent his case.
Provided that nothing in this section shall apply to the use by any person or his successor-in-interest of any name or title under which he carried on business at the date on which the Co-operative Societies Act, 1912 (2 of 1912), came into operation.
[77. Powers to exempt. - Where the Government is satisfied that it is necessary so to do for furthering any object of the society or class of societies specified in its or their bye-laws, it may, by a general or special order, published in the Official Gazette, exempt such society or class of societies from any provision of this Act.]
(2) All appointments, rules and orders made, notifications and notices issued and suits and other proceedings instituted under the said Acts shall, so far as they are consistent with the provisions of this Act be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling the registration of a society shall be deemed, unless the society has already been finally liquidated, as an order issued under Section 57 for its being wound up.
(a) the registration of a co-operative society or its bye-laws or amendment of bye-laws ;
(b) the removal of a committee ;
(c) any dispute required under section 55 to be referred to the Registrar ; and
(d) any matter concerning the winding up and the dissolution of a co- operative society.
(2) While a co-operative society is being wound up no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against, the liquidator as such or against the society or any member thereof except by leave of the Registrar and subject to terms as he may impose.
(3) Save as provided in this Act, no order, decision or award made under this Act shall be questioned in any court on any ground whatsoever.
(a) summoning and enforcing the attendance of any person and examining him on oath ;
(b) requiring the discovery and production of any document;
(c) proof of facts by affidavit ; and
(d) issuing commission for examination of witnesses.
(2) In the case of an affidavit, any officer appointed by the Registrar, the arbitrator or any other person deciding a dispute and the liquidator, as the case may be, may administer the oath to the deponent.
[84A. Constitution of common cadre of employees of certain societies. - (1) An apex society may suo moto; and when required to do so by the Registrar, shall, constitute a common cadre of all or specified class of employees in the service of that society or in the service of the central societies which are members of the apex society or in the service of the primary societies which are members of the apex society or the aforesaid societies.
(2) When a common cadre is constituted under sub-section (1) the apex society shall make rules for the regulation of recruitment and the conditions of service of such employees with the prior approval of the Registrar.]
84B. Dearness allowance. - Notwithstanding anything contained in this Act or any other law for the time being in force, or any agreement, settlement, or award, no employee of a co-operative society shall be paid dearness allowance at a rate higher than, that admissible to the employees of the Government drawing pay at the same rate.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-
(i) the maximum number of shares or portion of the capital of a co- operative society which may subject to the provision of section 6, be held by a member;
(ii) the form to be used and the conditions to be complied with in the making of applications for the registration of a society and the procedure in the matter of such applications ;
(iii) the procedure and conditions for change in the form and extent of the liability of a co-operative society ;
(iv) the matters in respect of which the society may or shall make bye-laws and for the procedure to be followed in making, altering and abrogating bye-laws and the conditions to be satisfied prior to such making, alteration or abrogation ;
(v) the conditions to be complied with by persons applying for admission or admitted as members, for the election and admission of members, and for the payment to be made and the interest to be acquired before the exercise of the right of membership ;
(vi) the manner in which funds may be raised by means of shares and debentures or otherwise ;
(vii) for general meeting of the members and for the procedure at such meetings and the powers to be exercised by such meetings;
(viii) the prohibition and restrictions subject to which societies which may transact business with persons who are not members ;
(ix) the proportion of individuals and societies in the constitution of the committee of management and the general body of a co-operative society of which another co-operative society is a member ;
(x) subject to the provisions of section 26, the election and nomination of members of committees, the appointment or election of officers and the suspension and removal of the members and other officers, and for the powers to be exercised and the duties to be performed by the committees and other officers ;
[(xa) restriction on transactions of officers and past officers with the co- operative society ;
(xb) the manner in which share of individuals shall be retired under sub- section (2) of section 15-A ;
(xc) election of members of representative general body under sub- section (1A) of Section 23 and the number of members of co-operative society required under that sub-section ;
(xd) the area of agricultural land, the conditions required to be fulfilled and the manner of co-option for the purpose of Section 26-A] ;
[(xe) the manner in which the vacancies caused as a result of retirement of members of a committee shall be filled] ;
(xi) the appointment and regulation of work entrusted to person or persons replacing the committee in pursuance of Section 27 ;
(xii) prohibiting a co-operative society from electing a defaulting member on its committee or to be its representative ;
(xiii) the accounts and books to be kept by a co-operative society, the audit of such accounts and the charges, if any, to be made for such audit, and for the periodical publication of a balance-sheet showing the assets and liabilities of a co-operative society ;
(xiv) the returns to be submitted by a co-operative society to the Registrar, the persons by whom and the form in which such returns shall be submitted and in case of failure to submit any such returns for the levy of expenses of preparing it ;
(xv) the persons by whom and the form in which copies of the entries in books of societies may be certified and for the charges to be levied for the supply of such copies ;
(xvi) the formation and maintenance of a register of members and where the liability of the members is limited by shares of a register of shares ;
(xvii) the appointment of an arbitrator to decide disputes ;
(xviii) the procedure to be followed in proceedings before the Registrar, arbitrator or other persons deciding disputes including the appointment of a guardian for a party to the dispute who is minor or who, by reason of unsoundness of mind or mental infirmity, is incapable of protecting his interests and the levy of the expenses relating to such proceedings ;
(xix) the withdrawal and expulsion of members and for the payments, if any, to be made to members who withdraw or are expelled and for the liability of past members and of the estates of deceased members ;
(xx) the mode in which the value of deceased member's share or interest shall be ascertained and for the nomination of a person to whom such share or interest may be paid or transferred ;
(xxi) the payments to be made and conditions to be complied with by members applying for loans the period for which any loans may be made and the maximum amount which may be lent, to any member ;
[(xxia) the form of certificate to be issued under sub-section (2) of Section 67-A];
(xxii) the formation and maintenance of reserve funds and other funds and the objects to which such funds may be applied, and for the investment of any funds under the control of a co-operative society ;
(xxiii) the extent to which a co-operative society may limit the number of its members ;
(xxiv) the conditions under which profits may be distributed to the members of a co-operative society with unlimited liability, and the maximum rate of dividend which may be paid by co-operative societies ;
(xxv) the calculation and writing off of bad debts by co-operative societies ;
(xxvi) the procedure to be followed by a liquidator appointed under Section 58 in respect of provisions of Section 59 ;
(xxvii) the procedure to be followed in presenting and disposing of appeals under this Act ;
(xxviii) the form of orders referred to in Sections 63 and 64 ;
(xxix) the issue and service of processes and for proof of service thereof ;
(xxx) the manner of effecting attachment.
(xxxi) the custody, preservation and sale of property under attachment ;
(xxxii) the investigation of claims by persons other than the defaulter to any right or interest in the attached property, and for the postponement of the sale pending such investigation ;
(xxxviii) the immediate sale of perishable articles ;
(xxxiv) the inspection of documents in the office of the Registrar or of any other officer or authority and the levy of fees for granting certified copies of the same;
(xxxv) the terms and conditions on which Government may make share- capital contribution or give assistance, financial or other, to societies and the terms and conditions on which Government may guarantee the payment of the principal or interest on debentures issued by societies or loans raised by them ;
(xxxvi) the manner in which funds may be raised by a society or a class of societies by means of shares or debentures or otherwise and the quantum of funds so raised ;
(xxxvii) for giving reasonable notice of the charge under Sections 31 and 32;
(xxxviii) qualifications for members of the committee and employee of a society or class of societies and the conditions of service subject to which persons may be employed by societies ;
(xxxix) the method of communicating or publishing any order, decision or award required to be communicated or published under this Act or the rules.
(3) Every rule made under this section shall be laid as soon as may be after it is made before [**] the State Legislature while it is in session for a total period of ten days which may be comprised in one session or in two successive sessions, and if before the expiry of the sessions in which it is laid or the session immediately following [the Legislature] agree in making any modification in the rules or [the Legislature] agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of any thing previously done under that rule.
Model Bye-laws
Model Bye-laws of a Co-operative Society
Name, Address And Area of Operation
(i) "Act" means the Panjab Cooperative Societies Act, 1961.
(ii) "Rules" means the Panjab Cooperative Societies Rules, 1963.
(iii) "Registrar" means the Registrar Cooperative Societies Panjab.
(iv) "Housefed" means the Panjab State Federation of Cooperative House Building Societies Ltd.
(v) "Committee" means the Committee of the Society.
Objects
(i) To purchase, take on long lease or acquire by exchange or otherwise land for construction of houses or housing colonies.
(ii) To construct, hire or acquire buildings for the individual and collective benefit of the members.
(iii) To sell or to exchange house sites with members, rent out or lease buildings for common use, surrender or accept surrender of houses or house sites.
(iv) To purchase and sell to members requisite material for construction and repair of houses.
(v) To establish and carry sanitary, social, educational and recreational activities for the benefit of the members.
(vi) to raise funds, and to give loans to members for the construction of houses by themselves or on their behalf.
(vii) To prescribe house plans.
(viii) To undertake measures to spread knowledge of cooperative principles and practices.
(ix) To undertake such other activities as are conducive to the attainment of the above objects.
(i) over 18 years of age and of sound mind;
(ii) ordinarily resident in the Punjab;
(iii) of good character;
(iv) intends to build a house for his own use in the area of operation of the Society.
(i) he has applied for bankruptcy; or
(ii) he has been declared as an insolvent; or
(iii) he has been sentenced for any offence involving dishonesty or moral turpitude within 5 years preceding the date of his admission as a member.
(ii) Such nomination may, from time to time, be revoked or modified by the member.
(iii) The number of persons who may be nominated by a member shall not exceed the number of shares held by the member.
(iv) When a member of the Society nominates more than one person he shall, as far as practicable, specify the amount paid or transferred to each nominee in the terms of whole shares and the interest accruing thereon.
(v) The record of nomination shall be kept by the society in such manner as may be laid down by the Registrar from time to time.
(vi) The value of the share or interest transferred or paid to a nominee or nominees shall be determined on the basis of the sum actually paid by the member to acquire such share or interest.
(i) ceasing to possess qualification laid down in bye-law No. 5.
(ii) failure to pay the share money or amounts due from him to the Society.
(iii) conviction of a criminal offence involving dishonesty or moral turpitude.
(iv) applicant for bankruptcy.
(v) an action which may be held by the general body to be dishonest or contrary to the interest, reputation and stated objects of the Society, including misapplying a loan.
(b) No member shall be expelled except by a resolution passed by two- thirds majority in the general meeting at which not less that half the members are present and voting. The members so expelled shall have the right to appeal to the Registrar against the decision of the general body within one month of the date of such decision.
(ii) Ceasing to hold at least one share.
(iii) Withdrawal in accordance with the procedure laid down in bye- law 18 of these bye-laws.
(iv) Permanent insanity.
(v) Declaration of bankruptcy.
(vi) Declaration of ceasure shall be made by the Assistant Registrar Co-operative Societies concerned after making inquiry.
Liability
Funds
(i) issuing of two (2) shares of the value of Rs. 100/- each.
(ii) acceptance of deposits from members :
(iii) raising of loans;
(iv) accumulation of profits;
(v) Reserve and other funds;
(vi) Grants and subsidies.
(i) that all arrears together with such interest as the Committee may demand are paid up; and
(ii) that such payment is made within three months of the date of forfeiture.
Maximum Credit Limit
General Body
(a) by affixing a copy of the notice at the office of the co- operative Society;
(b) (i) by circulation of the notice book and getting the signature of the members on it; or
(ii) by sending the notice to the members by post under postal certificate; or
(iii) by beat of drum in the area of operation of the Co-op. Society provided that the area of operation consists of one village only.
The quorum for the meeting shall be one-fourth of the total member of members or 500 whichever is less. If at the hour fixed for a general meeting the quorum is not forthcoming, the Chairman of the meeting shall, if the meeting has been called on the requisition of the members, adjourn it and no further general meeting shall be convened on the strength of the requisition. If the general meeting is convened otherwise than on requisition, the Chairman shall postpone the meeting to a further date. A fresh notice for the subsequent general meeting shall be given to all members. The business at the subsequent meeting may be transacted with the number of members present.
(i) The election of the elected members of the managing committee.
(ii) The consideration of the annual report of the Society, its audited balance sheet and profit and loss account and the inspection notes.
(iii) Disposal of profits.
(iv) The fixation of the maximum credit limit of the Society consistent with these bye-laws subject to the approval of the Registrar.
(v) The fixing of maximum credit for each member provided that such limit shall not be more than that laid down in the Registrar's instructions, this limit may be exceeded with the special sanction of the Registrar in each case.
(vi) Amendment of bye-laws as per law and rules.
(vii) Sanction of the plan of construction of house in common use of the Society, and of general lay out of the housing plans and streets, roads and drains.
(viii) To sanction contribution and levies of members for common services rendered by the Society.
Managing Committee
(a) is below 21 years of age; or
(b) is a paid employee of the Society or the financing Bank; or
(c) is convicted of any offence involving dishonesty or moral turpitude and a period of 5 years has elapsed since his conviction; or
(d) has applied for insolvency or is declared insolvent; or
(e) is of unsound mind; or
(f) is in default in the payment of the sum due to this or any other Co-operative Society for a period exceeding three months from the date on which the payment fell due; or
(g) holds any office of profit under the Society or received any honorarium; or
(h) is interested directly in any contract with the Society in any sale or purchase made by the Society privately or in auction
(i) ceases to be a share holder of the Society; or
(ii) applies for insolvency or is declared insolvent; or
(iii) is convicted of any offence involving dishonesty or moral turpitude; or
(iv) holds any office or office of profit under the Society or received any honorarium from the Society; or
(v) resigns and this resignation is accepted by the Committee; or
(vi) absents himself from three consecutive meetings of the Managing Committee; or
(vii) defaults in the payments of his sums due to this or any other Co-operative society for a period exceeding 3 months from the date on which the payment fell due; or
(viii) becomes a paid employee of the Society or the financing bank; or
(ix) acquires an interest directly or indirectly in any contract with the Society or in any sale or purchase made by the Society privately or in auction.
Note :- A member of Managing Committee shall be ceased through a declaration made by the Registrar in this behalf issued after satisfying himself that the member is liable to be ceased under the bye-law, the Act and the Rules and after giving the member concerned due opportunity to explain his position.
(i) To observe in all their transactions, the Act, the notified rules and the bye-laws.
(ii) To maintain true and accurate accounts of all money received and expended and all stock bought and sold.
(iii) To keep a true account of the assets and liabilities of the Society.
(iv) To keep a register of members correct and upto-date.
(v) To prepare and lay before the annual general meeting a profit and loss account and audited balance sheet.
(vi) To examine the account, sanction contingent expenditure and supervise the maintenance of the prescribed registers.
(vii) To consider inspection notes of the Registrar and his staff and the audit notes of Chief Auditor and his staff and to take necessary action.
(viii) To elect new members, to issue new and transfer old shares.
(ix) To arrange for the recovery of share, instalments and interest on overdues.
(x) To give directions to Secretary to summon general meetings in accordance with these bye-laws.
(xi) to contract loans subject to any restrictions imposed by the general body or by the Registrar.
(xii) To decide the terms on and periods for which the loans are to be given, approve or reject the security, to arrange for the recovery of loans and interest and to sanction renewals when necessary.
(xiii) To decide the terms on, the period for, the rates of interest at which deposits are to be received and to arrange for the payment or return of deposits.
(xiv) To watch that loans are applied to the approved purpose for which they are made.
(xv) To assist in the inspection of the books by person authorised to see them.
(xvi) To appoint, suspend, dismiss or punish employees subject to any conditions laid down by the Registrar from time to time and to take proper securities from as determined by the Registrar.
(xvii) Through any member, or officer, or employee of the society or any other person, specially authorised to institute, conducts, defend, compromise, refer to arbitration or abandon legal proceedings, by or against the Society or committee of officers or employee concerning the affairs of the Society.
(xviii) To acquire on behalf of the Society shares in other registered Cooperative Societies.
(xix) To arrange for the safe custody of books and appoint one of its members or one of the officers of the Societies resident in the village to take charge of all the registers and papers prescribed in these bye-laws and to send the original charge report on this behalf to the office of Assistant Registrar.
(xx) To appoint one of the members of the committee to take charge of all money received and generally to carry on duties of a treasurer in the absence of the treasurer. The person thus appointed shall hand over money thus received to the treasurer immediately on his return.
(xxi) To accept or reject the resignation from the Committee member.
(xxii) To invest the surplus fund of the Society in accordance with the Cooperative Societies Act or Rules framed thereunder.
(xxiii) To purchase or acquire land by exchange, lease or otherwise for the construction of the houses.
(xxiv) To sell, let out or lease house sites to members for the construction of the house.
(xxv) To lay out roads and drains and arrange other utility services as water supply and electricity etc., subject to sanction of the general body.
(xxvi) To purchase and sell material for construction and repair of houses.
(xxvii) To assess contributions and impose levies for common services rendered by the Society subject to the confirmation of general body.
(xxviii) To sanction house plan.
(xxix) Generally to carry on the business of the Society.
Secretary
(i) To maintain correctly and upto date the prescribed papers and registers.
(ii) To procure from borrowers the due execution of bonds with security when required under these bye-laws.
(iii) To prepare all receipts, vouchers and documents required by rules or bye-laws or called for by the committee.
(iv) To sign on behalf of the society and to conduct its correspondence.
(v) To summon and to attend general meetings.
(vi) To record the proceedings of such meetings and have them duly signed.
(vii) To prepare the annual statements and submit them to the Registrar within the time prescribed by him.
(viii) To control the staff under him.
(ix) To certify copies or entries in the books under Cooperative Societies Act.
(x) To incur contingent expenditure within limits fixed by the Managing Committee.
(xi) Generally to conduct the current business of the Society and perform all duties entrusted to him by the Committee.
Treasurer
Registers
(i) A register of members.
(iii) Leadger accounts for each member, depositor, creditor, Miscellaneous and contingent income and expenditure and purchase and sale of any goods etc.
(v) Proceeding Book.
(vi) Share list or register of shares.
(vii) A register of sureties.
(viii) A register showing maximum credit of each member,
(ix) A stock register.
(x) A pass book for each member and deposit.
(xi) Register for confirmation of Accounts.
(xii) Any other register prescribed by the Registrar or required by the Society for its business.
Construction Of Houses
(2) The construction of a building, for which a loan is given to a member shall be commenced within two months and completed within 15 months from the date of disbursement of the first instalment of loan. If any member fails to complete or completes the construction in its own hands and complete it, debiting the expenditure to the loan account of member concerned provided the member is unable to establish to the satisfaction of the Managing Committee that the delay was due to circumstances beyond his control.
(3) The houses built by the members out of loan received from the Society shall be liable to periodical checking by the Managing Committee as to is construction valuation as may be determined by it.
Bar Against Alienation
Repair Of Building
Loans
Disbursement Of Loans
Security For Loans
(ii) Only the first mortgage of the house sites or house buildings shall constitute the security.
(iii) Houses given in security shall be insured against fire for their full value. The insurance premium shall be paid by the borrower failing which the Society may pay and debit the amount to the concerned member.
Repayment Of Loans
(ii) It shall be open to the borrower to repay a large payment of whole loan borrowed from the Society at any time.
Distribution Of Profits
(i) at least 10 per cent shall be carried to the Reserve Fund.
(ii) Such proportions, not exceeding 5 per cent of the net profits as may be specified by the Registrar, shall be carried to the co-operative Education Fund to be administered in accordance with the instructions from the Registrar issued from time to time.
(iii) The remainder may be utilised for one or more of the following purposes:
(a) Distribution of dividend amongst member at the rate not exceeding 10 per cent per annum on the value of the shares actually paid up.
(b) Distribution of bonus to the employees of the Society not exceeding one month's salary.
(c) A sum not exceeding 5 per cent of the net profits may be spent on any charitable purpose as defined in Section 2 of the Charitable endowment Act, 1890 or to be allotted to Common Good Fund devoted to any of these purposes.
(d) Creation of a Bad Debt Fund Building Funds, or any other fund required by the Society.
(iv) Any surplus may be credited to Reserve Fund, or carried to the profits of the next year.
Amendment Of Bye-Laws
Provided further that model bye-laws or amendments previously approved by the Registrar may be adopted by a simple majority at a general meeting with an ordinary quorum.
Miscellaneous
(b) No person shall be employed by the Society without obtaining from him security in such form and according to such standards as may be laid down by the Registrar from time to time.
We the undersigned have been authorised to sign it (Bye-Laws) vide
G.M. Dated ______________