The Assam Co-operative Societies Act, 2007

Registered No.-768/97

I

THE ASSAM GAZETTE
S IW 5!

EXTRAORDINARY

PUBLISHED BY THE AUTHORITY

58 4 C W ^ t ,2 0 1 2 ,  15^M , 1933 (*R?)

No. 58 Dispur, Saturday, 4th February, 2012,5th Megha, 1933 (S.E.)

GOVERNMENT OF ASSAM

ORDERS BY THE GOVERNOR

LEGISLATIVE DEPARTMENT, LEGISLATIVE BRANCH

NOTIFICATION

The 4th February, 2012

No. LGL.6/2005/60.- The following Act of the Assam Legislative Assembly which received 

the assent o f the President is hereby published for general information.

ASSAM ACT NO. IV OF 2012
(Received the assent of the President on 18-1-2012)

THE ASSAM COOPERATIVE SOCIETIES ACT, 2007



370 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

AN

ACT

Preamble

to consolidate and amend the law relating to cooperative societies in the 
State of Assam to facilitate the voluntary formation and democratic functioning of 
cooperative societies as people's institutions based on self-help and mutual aid 
and to enable them to promote their economic and social betterment.

Whereas it is expedient to consolidate, and amend the law relating to 
cooperative societies in the State of Assam to facilitate the voluntary formation and 
democratic functioning of cooperative societies as people’s institutions based on 
self help and mutual aid and to enable them to promote their economic and social 
betterment and for matters connected there with or incidental thereto;

It is hereby enacted in the Fifty-eighth Year of the Republic of India as 
follows

CHAPTER - 1

Preliminary:

Short title, 
extent and 
commencement

1. (1) This Act may be called the Assam Cooperative Societies Act, 2007
(2) It extends to the whole of Assam.
(3) It shall come into force on such date as the State Government may, by 

notification in the Official Gazette, appoint.

2.

Definitions
In this Act, unless there is anything repugnant in the subject or context,-

(a) "Administrative Council" means a body intermediary between a 
managing body and the General Assembly of a registered society;

(b) "Affiliating Society" means the registered society of which a
particular society is a member and "Affiliated Society" means the 
particular society which is a member of the affiliating society;

(c) "Arbitrator” means a person appointed under the provisions of this
Act to decide any dispute referred to him;

(d) "Audit Officer" means a person appointed under the provisions of
this Act to audit the accounts of a registered society;

(e) “area of operation” means the area from which the membership is
drawn;

(f) "bye-Law" refers to the registered bye-laws of a Society for the time
being in force and includes a registered amendments of bye-laws 
of a society;

(g) “Board” means the Governing body of a co-operative society to
which the management of the affairs of the co-operative society is 
entrusted under the bye-laws and includes Managing Committee of 
a co-operative Society

(h) "Cooperative Year" means the period beginning and ending on
such dates as may be fixed by the Registrar for the purpose of 
drawing up the Balance Sheets of registered societies and for all 
other purposes under this Act;



THE ASS AM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 371

(i) "Cooperative Demand Certificate" means a certificate as
mentioned in subsection (4) of section 103 or sub section (1) of 
section 114;

(j) “Co-operative Society” or “society" means a co-operative society
registered under this Act and includes a society formed after 
amalgamation of such two or more societies or by division of an 
existing society;

(jj) “Co-operative Bank” means a Co-operative Society registered under 
this Act carrying on the business of Banking as defined under 
section 5(b) of the Banking Regulation Act, 1949, which shall also 
include Central Co-operative Bank and a State Co-operative Bank 
as defined under clauses (d) and (u) of section 2 of the National 
Bank for Agriculture and Rural Development Act, 1981 and a 
Primary Co-operative Society carrying on the business of Banking;”

.Act No. 10
of 1949

Act No. 61 
of 1981

(k) “Co-operative” where used as a noun means an autonomous
association of persons united voluntarily to meet their common 
socio-economic need through a jointly owned and democratically 
controlled enterprise formed on co-operative principles and 
registered under this Act;

(l) “Chief Executive" means the individual, in paid or honorary
capacity, nominated or elected or appointed by the Board from 
among members, Directors or others, in accordance with the bye­
laws of the society who shall perform such functions, and 
responsibilities and exercise such powers as specified in the Act, 
bye-laws and assigned by the Board:

(m) “common need" means the economic and social need which is
common to all who wish to form a cooperative society;

(n) “Chief Auditor’ shall mean the senior most cooperative officer
posted at the office of the Registrar;

(o) “delegate" means a person elected by a group of individual
members of a society to represent them in the genera! body of the 
cooperative society in accordance with the bye-laws of the society;

(p) “Director" means the director of the Board which shall be construed
as member in case of Managing Committee;

(q) “Delegate General Body" in relating to a cooperative society
means all its delegates;

(r) "Delegate General Body Meeting" means a meeting of the
delegates, called and conducted in accordance with the provisions 
of this Act and the bye-laws;

(s) "employee" means a person, not being an office bearer employed
by a registered society on a salary or similar form of remuneration 
other than advance patronage dividend or payment for goods sold 
to or through such society;

(t) "family" means a person, his spouse, his children and parents
dependent on him and jointly residing with him;

(u) "General Assembly" in relation to a cooperative society means the
highest authority of a registered society;

(v) “General Meeting" means a meeting of the General Assembly
called and conducted in accordance with the provisions of this Act 
and the bye-laws;

(w) "member" means a person who is admitted as a member of the
cooperative society in accordance with the provisions of this Act 
and bye-laws of the society and shall include a co-operative self­
help group and an institution,



372 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

(x) “office bearer" means a member duly elected by the appropriate
body of a registered society according to its bye-laws to any office 
of such society, including the office of President, Chairman, Vice- 
President, Vice-Chairman, Secretary, Managing Director & 
Treasurer;

Provided that any officer appointed or nominated by the 
State Government to hold charge of any office of a registered 
society shall be deemed to be an office bearer unless specifically 
stated to the contrary;

(y) "Primary Cooperative Society" means a Cooperative Society
whose membership is available only to individual and self help 
groups and voluntary institutions other than cooperative societies;

(z) “patronage dividend” means the dividend paid to members in
relation to their participation in the business of the society in 
accordance with the provisions of the bye-laws;

(aa) “prescribed” means prescribed by rules made under this Act; _  
(bb) "Registered Society" means a cooperative society registered 

under this Act and includes a society formed after amalgamation of 
such two or more societies or by division of such an existing /  
society;

(cc) "Registrar" means the officer appointed by the State Government 
under section 3 to perform the duties of Registrar of Cooperative 
Societies under this Act;

(dd) "rules" means rules made under this Act;
(ee) "Secondary Cooperative Society or Federal Cooperative 

Society” means a cooperative society whose members are 
cooperative societies as well as individuals;

(ff) “surplus" means the excess of income over expenditure of a 
cooperative society arrived at the end of a financial year after the 
payment of interest, if any, on share capital and before the 
payment of surplus refund and allocation of reserves and other 
funds;

(gg) "self help group (SHG)” means a homogeneous group of persons 
voluntarily formed to save small amounts of their earnings and also 
to raise loans to be lent to its members on terms, as mutually * 
agreed upon;

(hh) "services" means the main services provided to members, through 
which a co-operative society intends to meet the need common to 
all members for the fulfillment of which the co-operative society 
was formed;

(ii) “Schedule” means the schedule appended to this Act;
THE
REGISTRAR

CHAPTER-II
REGISTRATION OF SOCIETIES

(1) The State Government may appoint an officer to be the Registrar of 
Cooperative Societies for the State or any portion of it for the 
registration, supervisions, assistance, counsel and for the all-round 
development of the Cooperative movement in the State with such 
other powers and responsibilities as may be provided under this Act 
or rules or bye-laws framed thereunder.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 373

SOCIETIES 
WHICH MAY BE 
REGISTERED

(2) The State Government may also appoint any other person or persons 
to assist the Registrar and may by general or special order in writing 
delegate to any such person or persons all or any of the powers and 
responsibilities of the Registrar under this Act.

4. (1) Subject to the provisions hereinafter contained, a society which has as
its chief object the promotion of the economic interest and general 
welfare of its members in accordance with cooperative principles laid 
down in Schedule 'A' may be registered under this Act, provided that 
a society established with the object of facilitating the operation of 
such a society including a society formed by the division of an 
existing registered society or amalgamation of existing two or more 
societies, may be registered under this Act with limited liability.

(2) No cooperative society with unlimited liability shall be registered after 
commencement of this Act.

(3) Where a cooperative society with unlimited liability was functioning 
before the commencement of this Act such society shall exercise the 
option within a period of one year from such commencement either to 
continue to function as such or to convert itself into a cooperative 
society with limited liability by following the procedure of amendment 
as specified in section 12.

EXPLANATION
For the purpose of this sub section cooperative society with 

limited liability means a cooperative society in which the liability of its 
members for the debts of the cooperative society is limited by its bye­
laws, to such form and extent as they may undertake to contribute to 
any deficit in the assets of the cooperative society in the event of its 
being wound up.

(4) Where a cooperative society is ordered to be dissolved under any 
provision of this Act, the liability of a past member or of the estate of 
a deceased member, who ceased to be member or died during the 
period of two years immediately preceding the date of order for 
dissolution, shall continue unt». completion of the entire liquidation 
proceedings, but such liability shall be limited only to the debts of the 
cooperative society as they stood on the date of cessation of his 

C -  membership or his death, as the case may be.
(5) No society shall be registered if in the opinion of the Registrar its 

>' declared objects are not likely to be achieved or if it is economically
unviable, technically and cooperatively unsound or if it may have an 
adverse effect upon any registered co-operative society or the 
cooperative movement as a whole or if the members or the applicants 
do not need the services or are not in a position to use the services of 
the co-operative society:

Provided that no other organization, entity or societies 
registered under any other Act existing for the time being in force 
other than this Act shall be registered or converted or merged as a 
cooperative society.

“(6) The Co-operative Society to be registered as a Co-operative Bank shall 
specifically indicate in its byelaws submitted before the Registrar at 
the time of registration, that the society shall be a Co-operative Bank 
which shall carry on the business of banking as defined under section 
5(b) of the Banking Regulation Act, 1949 on the basis of which the 
Registrar shall register the said society as a Co-operative Bank as 
defined under this Act.



374 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

(7) The existing Co-operative Societies carrying on the business of 
banking as defined under section 5(b) of the Banking Regulation Act, Act No. 10 
1949 on the date of coming into force of this Act, shall amend their o f  1 9 4 9  
Bye-laws indicating that the said societies have been carrying on the 
business of banking in the State of Assam and shall file a copy of the 
amended bye-laws before the Registrar for getting the societies 
registered as a Co-operative Bank and Registrar shall register the 
said societies accordingly under this Act.

Explanation For the purposes of this sub-section the term “existing A ssa m  A c t 
Cooperative Societies" means the Co-operative Societies registered ^ 0

1 of 
under the Assam Co-operative Societies Act, 1949, and carrying on 
the business of banking at the commencement of this Act.”

“CO­
OPERATIVE 
BANK TO BE
ELIGIBLE CO­
OPERATIVE 
BANK

5.
AGE 
QUALIFICATION 
OF A MEMBER

CONDITIONS
OF
REGISTRATION

4A A Cooperative Society registered as a Co-operative Bank under this 
Act shall be an eligible Cooperative Bank within the meaning of clause 
(gg) of section 2 of Deposit Insurance and Credit Guarantee 
Corporation Act, 1961 and shall be bound by the following -

Act No
47 of 1961

X

(a) If so required by the Reserve Bank in the public interest or for 
preventing the affairs of the Cooperative Bank being conducted in a 
manner detrimental to the interests of the depositors or for securing 
the proper management of the bank, an order shall be made for the 
supersession of the committee of management or other managing 
body (by whatever name called) of the Co-operative Bank and the 
appointment of an administrator therefore for such period or periods 
not exceeding five years in the aggregate as may from time to time 
specified by the Reserve Bank.

(b) An order for the winding up of the Co-operative Bank or an order 
sanctioning a scheme of compromise or arrangement or of 
amalgamation or reconstruction or an order for the supersession of 
the committee of management or other managing body (by whatever 
name called) of the Co-operative Bank and the appointment of an 
administrator therefore made with the previous sanction in writing or 
on the requisition of the Reserve Bank shall not be liable to be called 
in question in any manner.

(c) The liquidator or the insured Co-operative Bank or the transferee Co­
operative Bank, as the case may be, shall be under an obligation to Act No. 47
repay the Corporation in the circumstances, to the extent and in the o f  1961

manner referred to in section 21 of the Deposit Insurance and Credit
Guarantee Corporation Act, 1961 ”

No person may become an individual member of a registered cooperative 
society unless he is above eighteen years of age, provided that the bye­
laws of a society may prescribe a higher minimum age and he is not 
otherwise disqualified under this Act.

(1) No society other than a society of which a member is a registered 
society shall be registered under this Act which does not consist of 
at least such number of eligible persons as may be prescribed by 
the Registrar of Cooperative Societies:

 

 
 



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 375

(2)

(3)

RESTRICTIONS 7. (1)
ON ACQUISITION
(TF SHARES IN A
COOPERATIVE (2)
SOCIETY

Provided that the number of members for the above purpose 
shali not in any case be less than 10 members competent to 
contract under section 11 of the Indian Contract Act,1872 and 
belonging to ten different families.

The word limited shall be the last word in the name of every society 
registered under this Act.
No society shall be registered under this Act in an area where there 
already exists another cooperative society with similar objectives:

Provided that Registrar may allow registration of more than 
one cooperative societies in the same area of operation in case the 
need or necessity, demand for organization of such types of 
societies requires registration of more such types of societies in the 
same area of operation e g. transport cooperative, labour contract 
cooperative, trading cooperative, housing cooperative.

However, in doing so proper justification must be obtained 
before allowing registration of such societies.

No member of a registered society shall hold more than such 
portion of the share capital of the society as may be prescribed by 

the rules, or the bye-laws of the society.
No member shall be allowed to acquire an additional share until he 
has paid in full the value of the whole of that portion of his share 

holding which he is required to pay in accordance with the bye-laws 
of the society

IX of
1872

POWER OF
T  REGISTRAR TO 

DECIDE CERTAIN 
QUESTIONS

All disputes regarding formation, registration or continuance of a 
society under this Act shall be decided by the Registrar.

BYELAWS 9. (1) A cooperative society shall frame their own bye-laws and the affairs of
the cooperative society shall be managed in accordance with the 
terms, conditions and procedure specified in the bye-laws.

(2) Subject to the provisions of this Act, the functioning of every cooperative 
society shall be regulated by its bye-laws.

(3) The bye-laws may contain such matters as decided by the General 
Assembly and shall be specific and confined only to the matters 
provided in Schedule B. However, the bye-laws of a society shall in no 

case supersede the provisions of the Act.

APPLICATION
FOR
REGISTRATION

10. (1) For the purpose of registration, an application thereof shall be submitted 
to the Registrar in the form as may be prescribed, by hand or by 
registered post signed by at least ten persons or such number of persons 
as may be fixed by the Registrar, qualified under section 5 of the Act, 
read with sub section (5) of section 4 who wish to form a primary 
cooperative society or by a duly authorized person on behalf of atleast 
three such registered cooperative society who wish to form a secondary 
cooperative society. The person by whom or on whose behalf such 
application is made, shall furnish such information in regard to the 
proposed cooperative society as the Registrar may require. Every such 
application shall be accompanied by the original declaration signed by 
applicants expressing commitment to the cooperative principles specified 
in Schedule-A and the following:-



376 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

CERTIFICATE
OF
REGISTRATION

(a) four copies of the proposed bye-laws of the cooperative society as 
adopted by the applicants;

(b) a true copy of the resolution passed at a meeting by the applicants
adopting the bye-laws.

(c) a list of names of the applicants with their complete address,
occupation and equity participation and other details.

(d) a scheme regarding viability of the proposed society, economically, 
financially technically and cooperatively;

(e) a copy of a treasury challan in support of payment of registration fee 
calculated in accordance with the provisions of sub-section(l) of 
section 17 which shall be non refundable and shall furnish such other 
information in regard to the society as the Registrar may require.

(2) On receipt of the application for registration and after due consideration, 
the Registrar may register the bye-laws with such modification as he 
thinks necessary to bring about conformity with the provisions of the 
bye-laws of any society having similar objects and functions or for any \  
other grounds he deems necessary for the interest of cooperative 
society in particular and the cooperative movement in general. If the 
conditions laid down in sections 4 and 6 are not fulfilled, the Registrar 
shall communicate by registered post the order of refusal for 
registration together with the reasons thereof, within sixty days from the 
date of submission or receipt of application for registration, as the case 
may be, to the applicants. However, in case of registration of a 
Cooperative bank clearance from NABARD or Reserve Bank of India 
as the case may be shall have to be obtained before considering for 
according permission for registration of such societies:

Provided that no order of refusal shall be made without 
giving an opportunity of being heard to the applicant. The certificate of 
registration signed and sealed by the Registrar shall be conclusive 
evidence that the society mentioned therein is a cooperative society 
duly registered under this Act, unless it is proved that the registration of 
the society has been subsequently cancelled: No cooperative society 
shall commence business unless it has obtained a certificate of 
registration under section 11 and after obtaining prior 
license/permission if necessary under any State or Central Act in such 
business and every member of such cooperative society carrying on 
business in contravention of this sub-section shall be severally liable for 
all liabilities incurred in such business.

11. The Registrar shall register the society and also take on record its bye­
laws and communicate by registered post a certificate of registration and 
the original bye-laws signed and sealed by him within sixty days from the 
date of submission or receipt of the application for registration, as the 
case may be to such person specified in the application for the purpose 
subject to the fulfillment of the following conditions, namely:-

(a) the application is in conformity with the requirements laid down 
under this Act;

(b) the object of the proposed cooperative society is the economic 
and social betterment of its members through the provision of 
services to fulfill such common need as specified in the proposed 
bye-laws;

(c) the proposed bye-laws are not inconsistent with the provisions of 
this Act and are not against the aims and objects of the cooperative 
society:



THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012 377

Provided that where within sixty days of submission of the 
application for registration the society is not registered or the certificate 
of registration has not been issued or refusal of registration has not 
been communicated, the society shall be deemed to have been 
registered under this Act.

AMENDMENT 
OF THE BYE­
LAWS OF A 
REGISTERED 
SOCIETY

12. (1) No amendment of the bye-laws of a registered society, whether by way 
of addition, alteration or change of name shall be valid until such 
amendment has been registered under this Act.

(2) Every proposal for such amendment shall have to be approved by a 
resolution at a meeting of the General Assembly in accordance with the 
bye-laws of the society and be forwarded within a month from the date of 
the resolution to the Registrar; and if the Registrar is satisfied that the 
proposed amendment is not contrary to the provisions of this Act or Rules, 
he shall unless for reasons to be. recorded in wnting^he 
refuse, register the amendment.,

(3) When the Registrar registers an amendment of the'  byd-laws 
registered society, he shall issue to the society a copy of the amendment 
certified by him which shall be conclusive evidence that the same has 
been duly registered, unless it is proved that the registration of the society 
has been cancelled or that further amendments have been registered or 
that the society's copy of the amendments have been tempered with, the 
amendment shall be binding upon the society with effect from the date of 
registration.

(4) A copy of the resolution of an amendment of the bye-laws of the society 
by the General Assembly shall be forwarded by the cooperative society to 
the Registrar within a period of thirty days from the date of the general 
meeting at which the resolution was passed.

(5) A copy of the resolution of an amendment forwarded to the Registrar shall 
be signed by the president and two Directors and shall be accompanied by 
the following particulars:-

(a) a copy of the resolution adopting the amendment;
(b) the date of the general meeting at which the amendment was 

adopted and the total number of members of the society on that 
date;

(c) a list of members who attended such general meeting and a list of 
members who voted for or against the resolution in such general 
meeting.

(6) The Registrar shall consider the amendment of the bye-laws under sub­
section (2) subject to the fulfillment of the following conditions, namely :-

(a) the amendment is not inconsistent with the provisions of the Act or 
any of the existing societies with similar objectives or is not against 
the aims and objects of the cooperative society; and

(b) the amendment is in conformity with the cooperative principles 
specified in Schedule-A.

(7) The Registrar may by order refuse registration of the amendment if any 
of the conditions specified in sub-section(6) is not fulfilled:

Provided that no such order of refusal shall be passed by the 
Registrar without giving a reasonable opportunity to the cooperative 
society to reconsider the amendment in the light of the direction of the 
Registrar within a period specified by him.



3 78 THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012

DIVISION OF 
COOPERATIVE 
SOCIETIES

AMALGAMATION
OF
COOPERATIVE
SOCIETIES

(8) The Registrar may after considering the reply received in response to the 
opportunity given under sub-section (7) if satisfied that the directions to 
reconsider the amendment has been complied with or satisfied with the 
reply, he shall register the amendment. If no reply is received from the 
cooperative society within the period specified by the Registrar under the 
proviso to sub section (7) or the reply is not in accordance with the 
direction of Registrar, the Registrar may refuse the amendment and shall 
communicate the decisions within thirty days of the receipt of such reply or 
on the expiry of the period referred to above, as the case may be

13. (1) A cooperative society may by a special resolution passed at a meeting of
its General Assembly decide to divide itself into two or more cooperative 
societies.

(2) Where a special resolution is passed under sub-section(l), the cooperative 
society shall give notice thereof together with a copy of the resolution 
passed by it to all its members and creditors and any member other than \  
those who voted in favour of the proposed division and any creditor shall t 
during a period of thirty days from the date of service of notice upon him 
have the option of withdrawing the shares .deposits or loans from the < 
cooperative society, as the case may be, subject to the discharge of his 
obligations to the cooperative society.

(3) Any member or creditor who fails to exercise the option within the period 
specified in sub-section(2) shall be deemed to have assented to the 
division.

(4) The special resolution passed under sub-section(1)shall not take effect 
until -

(a) all claims of the members and creditors of the cooperative society who 
have exercised the option under sub-section (2) have been met in full 
or otherwise satisfied;

(b) information of the intended division and settlement of claims of 
members and creditors is sent to the Registrar and his approval is 
obtained; and

(c) the certificates of registration and the original bye-laws of the resultant 
cooperative society signed and sealed by the Registrar are issued 
under section 11.

(5) When a cooperative society divides itself into two or more cooperative 
societies under this section the registration of such cooperative society 
shall stand cancelled and it shall be deemed to have been dissolved and 
shall cease to exist as a corporate body and the Registrar shall delete the 
name of such cooperative societies from the register of cooperative 
societies .

(6) When a cooperative society divides itself into two or more cooperative 
societies such member who has assented or deemed to have assented to 
the division shall be deemed to have become a member of that newly 
formed cooperative society to which his interest were transferred ,in 
accordance with the scheme of division approved by the general body of 
such cooperative society notwithstanding anything contained in this A c t.

14. (1) Any two or more cooperative societies having similar objectives may, by
special resolutions passed in the respective General Assembly, decide to 
amalgamate themselves and form a new cooperative society .



379THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012

i

(2) Where special resolutions are passed under sub-section(l) each 
cooperative society shall give notice thereof together with a copy of the 
resolution passed by it to all its members and creditors and any member 
other than those who voted in favour of the proposed amalgamation and 
any creditor shall, during a period of thirty days from the date of service of 
notice upon him, shall have the option of withdrawing his shares, deposits 
or loans from the Cooperative Society, as the case may be, subject to the 
discharge of his obligations to the cooperative society concerned.

(3) Any member or creditor who fails to exercise the option within the period 
specified in sub-section(2) shall be deemed to have assented to the 
amalgamation.

(4) The special resolution passed under sub-section(l) shall not take effect 
until , -

(a) all claims of the members and creditors of each cooperative 
society who have exercised the option under sub-section(2) 
have been met in full or otherwise satisfied;

(b) information of the intended amalgamation and settlement of 
claims of members and creditors is sent to the Registrar and 
his approval is obtained; and

(c) the certificate of registration and the original bye-laws of the 
cooperative society which is formed as a result of 
amalgamation, signed and sealed by the Registrar, is issued 
under section 11.

(5) When two or more cooperative societies amalgamate themselves into a 
new cooperative society under this section the registration of the 
cooperative society, so amalgamated, shall stand cancelled and they shall 
be deemed to have been dissolved and shall cease to exist as corporate 
bodies, and the Registrar shall delete the name of the cooperative societies 
so amalgamated from the register of cooperative societies .

(6) When two or more cooperative societies amalgamate themselves into a
new cooperative society under this section, all the members of the 
cooperative societies who have assented or deemed to have assented to 
the amalgamation shall be deemed to have become members of the new 
cooperative society notwithstanding anything contained in this Act.

MERGER OF
COOPERATIVE
SOCIETIES

15.(1) A cooperative society may, by a special resolution passed in the meeting of 
the General Assembly, decide to merge itself into any other cooperative 
society having similar objects and the said society by special resolution, 
agrees to such merger.

(2) Where special resolutions are passed under sub-section (1) each 
cooperative society shall give notice thereof together with a copy of the 
resolution passed by it to all its members and creditors, and any member 
other than those who voted in favour of the proposed merger and any 
creditor, shall during a period of thirty days from the date of service of 
notice upon him, have the option of withdrawing his shares, deposits or 
loans from the cooperative society, as the case may.

LOCATION OF
HEAD OFFICE

16. (1) Every cooperative society shall specify the full address of its head office in 
its bye-laws.

(2) The Board may, subject to approval of the General Assembly, change the 
address of its head office at any time and shall make such amendment in 
its bye-laws as per provision laid down in section 12.



380 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

FEES ETC.

vise {

‘gag

17.(1)  Registration fees amounting to one percent of the proposed authorised 
share capital of the proposed cooperative society shall have to be 
deposited by Treasury ChallanCajorTg with the application for registration of 

 

the proposed cooperative society. )The Registrar may, however, revjse 
fees fro.m time to time &

(2) Subject to the provisions of sub-sectiorf"(3) of section 81 and sub-stection (2) 
and (6) of section 87 respectively, the Registrar may by order prescribe a 
scale of fees to be paid by a cooperative society for various services 
rendered by him under this Act.

CHAPTER -  III

MEMBERSHIP

ELIGIBILITY OF 
MEMBERSHIP IN 
COOPERATIVE 
SOCIETY

18. (1) Any person who needs the services of a cooperative society and 
expresses his willingness to accept the responsibilities of membership, 
meets such other conditions as may be specified in the bye-laws of the 
cooperative society and is in a position to use the services of the co­
operative society , may seek membership and if the cooperative society 
is in a position to extend its services to the applicant, it may admit him as 
a member.

(2) Every applicant for membership and every member of a cooperative 
society shall keep each cooperative society of which the person is a 
member ,informed of membership in other cooperative society and in 
case of conflicting membership, the Board may, by resolution, refuse 
admission under section19 or terminate from membership under 
section23, as the case may be :

Provided that no such resolution to refuse admission shall be 
passed without giving the applicant, as the case may be, a reasonable 
opportunity to make representation to the Board as to why he should not 
be refused admission.

Explanation:-For the purpose of this sub-section the expression,“conflicting 
membership” means membership of the common objective co-operative 
societies functioning within the jurisdiction of a cooperative society of 
which the membership is sought.

DISQUAL.IFI - 
CATION OF 
MEMBER

19. No person shall be eligible for admission as a member and a member 
shall cease to be a member of a cooperative society if he incurs 
disqualification of membership prescribed in the bye-laws.

ADMISSION OF 
MEMBER

20. (1) The Board may admit a person for membership in accordance with the 
procedure laid down in the bye-laws within sixty days from the date of 
receipt of application for membership if he is eligible for membership 
under section 18 or refuse admission to the applicant if he is not eligible 
for membership under section 19 and communicate the same to the 
applicant by post or by hand.

 



THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012 381

W<n~~AWAL OF 
MEMBERSHIP

CESSATION OF
MEMBERSHIP

y*^RMlNATION

EMBERSHIP

(2) Where admission for membership is refused under sub section (1), the 
decision with the reasons thereof, shall be communicated to such 
applicant within ninety days from the date of application. If nothing is 
communicated within the period of ninety days specified above the 
admission shall be deemed to have been accepted by the
Board .

(3) Where an application has been refused by the Board the applicant may
appeal to the General Assembly within a period of sixty days from the 
date of receipt of the order of the refusal. The decision of the General 
Assembly shall be final and binding on all concerned parties:

Provided that no decision of refusal of admission shall be 
taken by the General Assembly without giving the applicant an 
opportunity of being heard.

21. (1) Subject to the provisions of sub-section(2) of section-66, a member may,
at any time after expiry of one year from the date of accepting 
membership, withdraw from membership in a cooperative society in 
accordance with the procedure laid down in bye-laws.

(2) The withdrawal from membership shall not require the person to fulfill 
such obligations as were undertaken or assumed as a member, under 
the provisions of the Act, the bye-laws or any agreement.

22. (1) If any person having been admitted as a member of a cooperative society
dies or subsequently becomes subject to any of the disqualifications 
specified in the bye-laws shall cease to be a member of the cooperative 
society.

(2) Every cooperative society shall inform, in the event of receipt of 
information of the death of the member ,the nominee of the member and 
in every other instance ,the member,about the cessation of membership 
for the settlement of accounts.

23. (1) The Board may, by a resolution passed by three fourth majority of the 
directors present and voting at a meeting held for the purpose .terminate 
the membership of a member if he —

(a) intentionally does any act likely to injure the creditability of the 
cooperative society or bring it to disrepute ;or

(b) willfully deceives the cooperative society; or
(c) has acted adversely to the objects or his act is detrimental to 

the interest of the cooperative society; or
(d) persistently makes default in payment of his dues or fails to 

comply with the provisions of the bye-laws; or
(e) having been admitted as a member subsequently becomes a 

member of any other society having common objective 
cooperative functioning within the jurisdiction of the cooperative 
society of which he is member; or

(f) does not use the services of the cooperative society or he 
ceases to be a resident of the area of operation of the society:

Provided that no such resolution shall be passed without giving the 
member concerned a reasonable opportunity to make representation at 
the Board meeting.



382 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

REGISTER OF 
MEMBER
REGISTER OF 
MEMBER

(2) Any member aggrieved by the resolution passed under sub-section(l) 
may appeal to the General Assembly within thirty days of the receipt of 
such resolution.

(3) No member of a cooperative society whose membership has been 
terminated under sub-section (1) shall be eligible for readmission as a 
member of the cooperative society for a period as may be specified in 
the resolution but not exceeding five years, subject to the condition that 
his conduct during the period of expulsion sufficiently justified his fair 
conduct in the event of his enrolling membership again.

24. (1) Every cooperative society shall maintain a register of members. The 
name of every person admitted as a member of the cooperative society 
shall be entered in the register along with such particulars as may be 
deemed necessary by the Board.

EDUCATION OF 
MEMBER ETC.
EDUCATION OF 
MEMBER ETC.

(2) The name of a person -
(i) whose admission is refused under sub-section (2) of -» 

section 20; or
(ii) who has withdrawn from membership under section21;
(iii) who ceased to be a member under section22 ; or
(iv) whose membership has been terminated under section23 

shall be deleted from the register of members :
Provided that the name of a person referred to in clause (i) or 

clause (iv) shall not be deleted from the register of members till expiry of 
30 days from the date of the decision of the Board or Annual General 
Meeting, as the case may be, and in case an appeal is preferred under 
sub-section(2) of section23,as the case may be.

The register maintained under sub-section(l) shall be prima facie 
evidence of the date on which any person was admitted to the cooperative 
society as a member and of the date on which he ceased to be a member.

25.(1) Every cooperative society shall include a certain amount in its budget s
annually, as provision for expenses on education of member and /  
potential member, education and training of staff and directors for the 
development of their cooperative societies in accordance with the 
cooperative principles specified in Schedule A and practices of 
cooperation, besides contributing at least 1% of profit or an amount 
specified by the Registrar in case of societies not earning profit ,to State 
Cooperative Union for cooperative education and training.

RIGHTS AND 
LIABILITIES OF 
MEMBERS OF 
REGISTERED 
SOCIETIES 
AND EXERCISE 
OF RIGHTS 
THEREOF

RIGHTS AND 
LIABILITIES OF 
MEMBERS OF 
REGISTERED 
SOCIETIES 
AND EXERCISE 
OF RIGHTS 
THEREOF

26.(1) Every member of a registered society and every ex-officio member of 
the Administrative Council or Managing Body of such society, unless 
under some temporary disqualification, shall have the right to attend any 
general meeting of the society and to exercise vote at such meeting.

(2) No member of a cooperative society shall exercise the right of a member 
including the right of vote unless he has made such payment to the 
cooperative society in respect of membership or has acquired and 
continues to have such interest in the cooperative society as may be 
specified in the bye-laws.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 383

VOTES OF 
MEMBERSAND 
MANNER OF 
EXERCISING 
VOTE

LIABILITIES OF 
PAST MEMBER
AND HIS ESTATE

(3) The Chief Executive of every cooperative society within twenty days of 
closure of the previous cooperative year, shall prepare a list of members 
with the right of vote, and a list of members without the right of vote 
,valid for the current financial year. The list shall be affixed on the notice 
board of the head office of the cooperative society for information of all 
members and any member not satisfied with specific instances of 
inclusion or non-inclusion of members in the lists, may appeal to the 
Board within ten days from the date of the affixing of the lists on the 
notice board, for re-examination of the records, and the Board shall 
within forty days of closure of the previous cooperative year, review the 
lists, finalise it, and have it affixed on the notice board of the head office 
of the cooperative society:

Provided that a member who is an employee or member of 
Employees Union of such society shall not be entitled to vote -
(i) at the election of a member of the Board of such society;
(ii) in any general meeting convened for framing the bye-laws of 

such society or any amendments thereto.
(4) In the case of equality of votes the Chairperson shall have a casting vote.

27 (1) In primary cooperatives societies, irrespective of the shares held in the 
society and subject to temporary disqualification .each member shall 
have equal voting right (one member one vote). Similarly in case of 
Secondary Cooperative Society, the representative of such cooperative 
society shall have same voting rights (one representative one vote). 
Every member of cooperative society or the representative referred 
herein shall exercise his vote in person and in the manner specified in 
the bye-laws and no member or representative shall be permitted to vote 
by proxy :

Provided that a person shall have been a member for at least 
one full financial year, before being eligible to vote or to seek 
election to managing body:

Provided further that the condition of one year membership 
shall not apply to the members who join at registration or at any 
time after the registration of a cooperative society but before the first 

day of the next co-operative year.

(2) Every member of a cooperative society shall exercise his vote in the 
manner specified in the bye-laws.

28. The liability of a past and of the estate of a deceased member for the debt 
of a registered society as they existed at the date of his ceasing to be a 
member or on his death, as the case may be, shall continue for a period 
of five year from the said date.

GENERAL
ASSEMBLY

CHAPTER -IV

MANAGEMENT

29(1) The General Assembly of a cooperative society shall consist of all the 
members of such cooperative society who are eligible to vote at the 
general meeting of the society.



384 THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012

(2) (a) Every member of a registered society and every ex-officio member
of the Administrative Council or managing body of such society, 
unless under some disqualification, shall have the right to attend 
any general meeting of the society and to exercise his vote at such 
meeting:

Provided that the bye-laws of a registered society may prescribe-
(i) that a registered society affiliated to such society may 

have more than one representative entitled to vote at 
general meetings of the society; and

(ii) that only one third of the members of the General 
Assembly, excluding ex-officio members, may be 
individual members and the other two thirds being 
representatives of affiliated registered societies;

MATTERS TO BE 
DEALT WITH IN 
THE ANNUAL 
GENARAL 
MEETING

(b) if the number of individual members exceeds one third of the 
total membership of the society the individual members shall 
elect at a special meeting to be called by the Secretary of the 
society not more than thirty days before the Annual General 
Meeting in the manner prescribed in the bye-laws to represent in 
the Annual General Meeting, those individual members who, as 
the representative of the body of individual members shall form 
the one third membership of the General Assembly for the 
purpose of voting at the Annual and other meetings of the 
General Assembly during the ensuing year. Only such elected 
representatives shall have the right to attend and vote at such 
general meeting.

(3) If the general body of a cooperative society decides that the size .area or 
types of its membership requires a representative body of delegates for 
more effective decision making, its bye-laws shall provide for a smaller 
body, called “delegate general body” elected from the members, in the 
annual general meeting in accordance with the bye-laws, to exercise 
such powers and to discharge such duties of the general body as may 
be specified in the bye-laws.

(4) Subject to the provisions of this Act and the bye-laws ,the ultimate power 
of a cooperative society shall vest in the general body. The supreme 
authority shall however vest with the State Government or the Registrar 
of Cooperative Societies, as the case may be, during the pendency of 
any loan or service to the society from the Government.

(5) Any power, function or responsibility, falling within the scope of a 
cooperative society as a corporate body, which has not been specifically 
entrusted by this Act or the bye-laws, to any authority of the cooperative 
society may be dealt with by the General Body or by the State 
Government during the pendency of any loan or services to the society 
from the Government.

30 (1) The following matters in addition to others as are considered necessary 
by the Board shall be dealt with by the Annual General Meeting, 
namely:-

(a) election of the Directors or delegates if fallen due;



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 385

(b) consideration of the long term plan and budget, when 
required;

(c) consideration of the annual operational plan and budget for 
the current financial year;

(d) consideration of the annual report of activities for the 
previous financial year including provisional financial 
statements of accounts if not audited;

(e) consideration of the audited financial statements of 
accounts, and the auditor’s report relating to the previous 
financial year or years;

(f) consideration of the report on deviations, if any from the 
approved budget relating to the previous financial year;

(g) disposal of surplus, if any, of previous financial year;
(h) management deficit, if any, of previous financial yeat;
(i) creation of specific reserves and other funds;
(j) review of actual utilisation of reserves and other funds;
(k) review of the report on the attendance at meeting by 

Directors;
(l) review of the use of the cooperative societies’ services by 

the directors;
(m) appointment of internal auditor, fixation of remuneration paid 

to any Director or member of any committee or internal 
auditor in connection with his duties in that capacity or his 
attendance at concerned meetings;

(n) review of quantum and percentage of service provided to 
non members vis-a-vis services provided to the members;

(o) report of activities and accounts related to education of 
member and Director and staff training;

(p) consideration of any other matter which may be brought 
before the meeting of the general body in accordance with 
the bye-laws;

(q) expulsion of members;
(r) disposal of appeals;
(s) formulation of code of conduct for the members of Board of 

Directors and officers appointed by the Board;

(2) The following matters among such other matters as considered 
necessary by the Board or which are specifically assigned to the 
general body_under any other provision of this Act may be dealt 
with by the general body at its annual or any general meeting, 
namely

(a) amendments of bye-law§,
(b) removal of Directors and election of new Director;
(c) membership of the cooperative society in secondary 

cooperative society;
(d) partnership with other cooperative societies;
(e) amalgamation, division, merger, transfer of assets and 

liabilities;
(f) dissolution of the cooperative society;
(g) consideration of the Registrar's report of inquiry and 

action taken thereon or reasons for the non completion of 
the inquiry;



386 THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012

(3) If the bye-laws of the cooperative society provide for election of one
or more Directors on territorial basis, such Director shall be elected 
from the areas, in a meeting of the members of that area in 
accordance with the provision of the bye-laws on a date prior to that 
of annual general meeting. The result thereof shall be affixed on the 
notice board of the head office of the cooperative society and also 
at the place of the annual general meeting prior to the 
commencement of the proceedings of the annual general meeting.

(4) All Directors shall cease to be Directors on the date of the Annual 
General Meeting, if the annual financial statement of accounts and 
annual report of activities for the previous financial year were 
willfully not prepared before 15 days of the Annual General Meeting 
for inspection of the members or for placing before the Annual

a -x General Meeting.

TERM OF THE
BOARD

31. The term of the Board shall be three Cooperative years.

GENERAL 
MEETING

32. The Board may, at any time, call a general meeting of the members of
the cooperative society . However, one general meeting in every 
cooperative year must be convened by the Board.

SPECIAL
GENERAL
MEETING

33 (1) The Board may call a special general meeting and shall be bound to do 
so within forty five days of the date of receipt of a written requisition.

(a) signed by not less than twenty five percent of the members having right 
to vote; or

(b) from the Registrar. ,
(2) Such requisition shall contain the reasons why the meeting is felt 

necessary and the proposed agenda and no subject other than the 
subjects included in the proposed agenda shall be discussed at the 
special general meeting.

(3) If the Board fails to hold a special general meeting on requisition under 
sub-section (1) or any of the Annual Genera! Meeting under section 32 . \  
within the period specified therein all directors shall cease to be directors
on the date of expiry of the said specified period.

(4) Any meeting of the General Assembly other than the Special General 
Meeting may, with the consent of the majority of the members present, 
be adjourned from time to time to a later hour on the same day or to any 
other date as may be provided in this bye-laws, but no business other 
than that left over at the adjourned meeting shall be transacted at the 
next meeting.

A notice of such adjournment posted in the notice board of the 
head office of the cooperative society on the day on which the meeting is 
adjourned shall be deemed sufficient notice of the next adjourned 
meeting.

QUORUM OF 
MEETINGS OF 
GENERAL 
ASSEMBLY

34. (1) The quorum for a meeting for the General Assembly shall be specified in 
the bye-laws, but shall not be less than ten percent of the members 
eligible to vote at the meeting.



387THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

(2) If within one hour from the time fixed for meeting of the General
Assembly a quorum is not present, the meeting shall stand adjourned 
ordinarily to the same day in the next week at the same time and place. 
But the Chairman of the meeting may, however, decide to adjourn the 
meeting to a later date not later than fifteen days or as may be specified 
in the bye-laws of the society:

Provided that a meeting of the Special General Assembly 
called on the requisition of members under sub-section (1) of section-33 
shall not be adjourned but dissolved.

(3) If at any time in a meeting there is no quorum the presiding 
authority shall adjourn it to such time or date as it thinks fit and 
announce the same at once and the business set down for the meeting 
shall be brought forward at the subsequent meeting whether at such 
meeting there is a quorum or not.

(4) No business other than the business fixed for the original meeting 
shall be transacted at such subsequent meeting.

(5) A notice of such adjournment posted in the notice board of the head 
office of the cooperative society on the day on which the meeting is 
adjourned shall be deemed sufficient notice of the next subsequent
meeting.

(6) The quorum for a delegate general body meeting shall not be less 
than twenty five percent of the delegate eligible to vote at the delegate 
general body meeting .If at any time in the meeting of delegate general 
body meeting there is no quorum, the procedure laid down in sub- 
section(1) to (5) shall be followed.

(7) At the meeting of the General Assembly, the President shall preside 
over the meeting. If the President is absent the Vice-President shall 
preside. If both the President and the Vice-President are absent from 
the meeting of the General Assembly, the members present shall 
choose one of them to preside the meeting.

BOARD 35. (1) There shall be a Board for the management of every cooperative 
society registered under this Act. The Directors shall be elected in 
accordance with the provisions of the bye-laws, The management of 
every cooperative society constituted in accordance with the provision of 
this Act and the bye-laws shall vest in the Board:

Provided that in the case of a cooperative society 
newly registered under this Act, the persons who have signed the 
application for the registration of the cooperative society may appoint a 
promoter Board, for a period not exceeding one year from the date of 
registration to direct the affairs of the cooperative society and it shall 
cease to function as soon as a regular board is constituted in 
accordance with the provisions of this Act and the bye-laws.

(2) The promoter Board appointed under the proviso to sub-section (1) 
shall conduct the election of Directors within the period mentioned 
therein.

(3) Every Director while exercising the powers and discharging duties 
shall act honestly and in good faith and in the best interests of the 
cooperative society and exercise such care, diligence and skill as a 
reasonably prudent person would exercise in similar circumstances.



388 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

(4) A Director who is guilty of misappropriation, breach of trust or 
dishonesty resulting in loss or shortfall in revenue of the cooperative 
society and is found guilty after an enquiry or inspection under section 
87 and section 88 or after audit under section 81, shall be personally 
liable to make good that loss or shortfall, without prejudice to any 
criminal action to which the director may be liable under any law.

PRESIDENT AND 
VICE-PRESIDENT 
OF
COOPERATIVE 
SOCIETY

36. (1) There shall be a President and Vice-president in a cooperative society to
be elected by the Board from amongst its Directors in accordance with 
the provisions of the bye-laws. The term of President and Vice-president 
elected by the Board shall be coterminous with the term of the Board.

(2) Vacancy in the office of the President or Vice-president shall be filled in 
by the Board in accordance with the provisions of the bye-laws and the 
President or Vice-president so elected shall hold office for the unexpired 
term of his predecessor.

(3) The Vice-President may resign his office at any time by notice in writing 
to the President and the President may resign his office at any time by 
notice in writing to the Vice-President. Such resignation shall take effect 
from the date of its acceptance by the Board.

(4) The Board may, by a resolution passed by three- fourth majority of the 
Directors present and voting at a meeting held for the purpose, remove 
the President or Vice-president. Such meeting shall not be presided over 
by the President or Vice -President against whom such resolution is to be 
considered.

(5) The President or Vice-president as the case may be aggrieved by the 
resolution passed under sub-section(4) may appeal to the Registrar 
within thirty days from the date of passing of such resolution whose 
decision thereon shall be final.

(6) In the event of the occurrence of any vacancy in the office of the ' \  
president by reason of his death, resignation or removal or otherwise, the 
Vice-President shall act as President until the date on which a new 
president is elected in accordance with the provisions of this Act and the 
Bye-laws to fill such vacancy.

(7) When the President is unable to discharge his functions owing to 
absence, illness or otherwise the Vice-President shall discharge the 
functions of the President until the date on which the President resumes 
his duties.

DISQUALIFICATIO 
N OF THE 
MEMBERS OF 
THE BOARD AND 
ADMINISTRA­
TIVE COUNCIL

37. A member shall not be eligible for being chosen or for being appointed, as 
a member of the Board or Administrative Council of a society or another 
society to which the society is affiliated if such member -

(a) is adjudged by a competent court to be insolvent or of unsound 
mind;

(b) has been punished with imprisonment for an offence involving 
moral turpitude or criminal activities;

(c) is concerned or participates in the profit of any contract with the 
society;



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 389

POWERS AND 
FUNCTIONS OF 
THE BOARD

Z “  €■■

ANNUAL
GENERAL
MEETING

ELIGIBILITY FOR 
A DIRECTOR IN 
COOPERATIVE 
SOCIETY

(d) in a credit society, failed to pay in three consecutive years 
immediately preceding the election at least an amount 
equivalent to any installments fixed for repayment of any loan or 
advance or credit or become defaulter to any other cooperative 
society ;

(e) has acted in a manner prejudicial to the interest of the 
cooperative society in particular or the cooperative movement in 
general.

38. The Board shall discharge such functions, perform such duties and 
exercise such powers as may be specified in the bye-laws and in 
accordance with the terms, conditions and procedure laid down therein and 
in particular the Board shall have the following powers, functions and 
duties, namely

(1) to interpret the organisational objectives, to set up specific goals 
towards achieving such objectives and to make periodic appraisal 
of operations ;

(2) to nominate, elect or appoint and remove the Chief Executive 
provided he is not a Government appointee ;

(3) to make provisions for the matters mentioned in section 49 in 
respect of the staff of a cooperative society ;

(4) to finalise long term perspective plan, annual plan and budget and 
to direct the affairs of the cooperative society in accordance with the 
plan and budget approved by the general body ;

(5) to arrange for funds ;
(6) to authorise acquisition and disposal of immovable property :
(7) to frame, approve and amend regulations relating to services ; 

funds, accounts and accountability and information and reporting 
systems ;

(8) to elect President and Vice-President in accordance with the 
provisions of the bye-laws ;

(9) to prepare the annual financial statement of accounts ;
(10) to hold Annual General Meeting in stipulateo time ; and
(11) to remove President or Vice President in accordance with sub­

section (4) of section 36 ;

39. A general meeting to be termed as Annual General Meeting of the General 
Assembly of a registered cooperative society shall be held atleast once in 
every cooperative year within a period of 120 days from the date of expiry 
of every cooperative year. The Board shall automatically stand dissolved 
for not holding Annual General Meeting in accordance with the provisions 
of the Act and bye-laws within 120 days from the date of expiry of every 
cooperative year.

40. Subject to such other conditions as may be specified in the bye-laws a 
member of a cooperative society shall be eligible for being chosen as a 
Director of the cooperative society, if -

(1) such member has the right to vote in the affairs of the cooperative 
society ;



390 THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012

ELECTIONS

(2) such member has patronised the services of the cooperative society 
during the previous financial year to the extent and in the manner 
specified in the bye-laws and has attended at least two Annual 
General Meetings in the previous five years:

(3) such member has no pecuniary interest in any subsisting contract 
made with, or work being done for the cooperative society except as 
otherwise specified in the bye-laws.

(4) the period of three years has elapsed from the date such member 
ceased to be a Director for the following reasons

(a) not conducting or wrongly conducting the Annual General
Meeting under section 39 or special general meeting under sub­
section (3) of section33 and Board meetings under sub-section
(3) of section43; z s

(b) non submission of annual report of activities, annual financial 
statement of accounts to the general body under sub-section (4) 
of section-30.

(c) not conducting the meeting of the Board under sub-section (3) 
of section 43 or delegates or representative under sub-section 
(3) of section 41;

(d) absence from Board meetings under sub-section(7) of section 
43 ;

(e) automatic dissolution under sub-section (3) of section 41;

(f) for failure to take follow up action on audit report as specified in 
section 85.

(5) such member is free from default of any payment due to the society.

41. (1) It shall be the duty of the incumbent Board to prepare the voter's list with 
eligible members and to conduct elections of Directors, delegates to the 

r  -x delegate general body and representative, of the society, if fallen vacant. 
(j k ) r

(2) The elections shall be conducted in the manner specified in the bye-laws.
before the expiry of the term of office of the outgoing Directors,delegates 
or representatives, as the case may be.

(3) Where a Board fails to conduct elections of the Directors or delegates as 
the case may be, before the expiry of the term of their office in 
accordance with the Act and bye-laws, all Directors shall cease to be 
Directors on the expiry of the period as specified in section 39.

(4) The elections of Directors and delegates shall take place at the Annual 
General Meeting.

(5) Where a Board fails to conduct elections before the expiry of term of the 
Board or delegates or where there are no Directors remaining on the 
board, the Registrar shall convene a general meeting by appointing an 
officer of the cooperative department for constitution of Board within 
ninety days from date of such appointment and to perform all functions 
of the board during the said period of ninety days at the cost of the 
society.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

TERM OF
DIRECTORS

BOARD MEETING

391

(6) The Directors shall hold office for the period for which they were elected 
and the newly elected Directors shall assume office on the date of expiry 
of said period.

(7) The Directors shall not be eligible for re-election, if so specified in the 
bye-laws .

(8) Where there are vacancies in the office of the directors and where there 
are no sufficient number of Directors to constitute a quorum for Board 
meeting, the remaining Directors shall, notwithstanding anything 
contained in this Act or the bye-laws, call a general meeting for the 
purpose of electing Directors to fill the vacancies for the un-expired term 
of the Board. However, the Board may co-opt maximum three eligible 
members for constituting quorum.

(9) Notwithstanding anything contained in this Act ,no person shall be eligible 
to hold, at the same time, office of a Chairperson or President, Vice­
Chairperson or Vice-President on the Board of more than two 
cooperative societies.

42. (1) The term of office of the Directors shall be three cooperative years.
(2) The term of representative of an affiliated society shall be co- terminus 

with the term of Board of such cooperative society :

Provided that the said representative shall cease to be a 
representative if the Board of the society which he represents is 
dissolved. :

Provided further that a director representing a credit society or a 
finance society to a higher tier of such society shall be disqualified to 
continue in the board in the event of the society which he represents 
commits default in repayment for a period exceeding 90 days.

(3) Any causal vacancy in the office of the Director shall be filled in 
accordance with the provisions of the bye-laws and the Director so 
elected shall hold office for the unexpired term of his predecessor.

43. (1) A meeting of the Board may be called at any time by the President or
Chairman, as the case may be, and in the event of his being incapable 
of acting, then by the Vice-President or Vice Chairman but at least four 
meetings of the Board shall be held in a financial year and the period 
between two consecutive meetings shall not exceed one hundred and 
twenty days.

(2) The President or Chairman and in the event of his being physically 
incapable of acting, the Vice President or Vice Chairman may, whenever 
he thinks fit, call a special meeting of the Board and shall be bound to do 
so within fifteen days of the date of receipt of a written requisition-

(a) signed by not less than one third of the Directors of the 
Board ; or

(b) from the Registrar; or
(c) from the auditor.
Such requisition shall contain the reasons as to why the meeting 

is felt necessary and the proposed agenda and no subject other than 
the subjects included in the proposed agenda shall be discussed at the 
special meeting of the Board.



392 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

DECISION BY
MAJORITY OF
VOTES

MINUTES OF 
PROCEEDINGS 
OF MEETINGS

(3) If the President or Chairman, Vice-President or Vice Chairman, as the 
case may be, fails to hold the meeting of the Board under sub-section 
(1) or the special meeting of the Board under sub-section (2) within the 
period specified therein, he shall cease to be President or Chairman, 
Vice-President or Vice Chairman, as the case may be, on the date of 
expiry of the said specified period, In which case the remaining Board 
members shall elect a new President or Chairman, Vice President or 
Vice Chairman, as the case may be, from among themselves.

(4) A person who ceases to' be the President or Chairman, Vice-President 
or Vice -Chairman, as the case may be, under sub-section (3) shall 
not be eligible to hold the office of President or Chairman, Vice- 
President or Vice Chairman, as the case may be, for a period of three 
years from the date of such cessation.

(5) The quorum for a meeting of the Board shall be such as may bfe 
specified in the bye-laws but shall not be less than fifty percent of the 
total number of Directors of the Board.

(6) Subject to the provisions of this Act, the procedure to convene and 
conduct the meeting of the Board shall be such as may be specified in 
the bye-laws.

(7) If a Director fails to attend three consecutive meetings of the Board 
without the permission of the President or Chairman he shall cease to 
be a Director, from the date of the fourth meeting.

(8) The State Government and Registrar may appoint nominee to the
Board or any sub-committee of a cooperative society on its own motion 
when the Government has subscribed more than 50% of the paid-up 
share capital or when there is provision of Government nominee in its 
bye-laws.

(9) The financial institution may also appoint its nominee when it 
participates in its capital by way of share or other financial assistance 

as per bye-laws of the cooperative society.
44. Except as otherwise provided under this Act, or the bye-laws, all questions 

brought before any meeting under this Act shall be decided by majority of 
the votes of the members present and in the case of any equality of votes 
the presiding authority of the meeting shall have a second or casting vote:

Provided that in the case of equality of votes at the election of the 
President or Chairman, Vice-President or Vice Chairman, Directors, 
delegate, the presiding authority shall not exercise his casting vote and the 
result shall be decided by lot.

45. (1) Every cooperative society shall record in the minutes books, in the
official language of its station or in English or in any other language 
prescribed in the bye-laws, proceedings of every general meeting, delegate 
general body meeting and Board meeting and the names of the members 
or delegates present thereat and shall be confirmed at the same or the next 
meeting. The proceedings of all General Meetings and Special General 
Meeting of every cooperative society complete in all respects as provided 
in the Act and bye- laws shall be sent to the Registrar within fifteen days 
from the date of completion of such meeting with due acknowledgement. 
The Registrar shall give his approval on the resolutions within fifteen days 
of receipt of the proceedings. If no approval is received within the 
aforesaid period, the proceeding shall be deemed to have been approved.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 393

(2) The minutes so recorded shall be signed -
(a) in the case of a general meeting or delegate general body meeting, 

by the person who presided the said meeting, or in the event of his 
death, unwillingness or incapacity to sign the minutes within the time 
required, by the Chief Executive of the cooperative society for the 
purpose of submission of proceedings for approval and which shall 
be confirmed in the following meeting ;

(b) in the case of a Board meeting by the person who presided the said 
meeting or by the person who presides the following meeting, 
wherein the minutes are confirmed

(3) In the matter of inclusion of any matter in the minutes of general meeting 
or Board meeting, which in the opinion of the Chairman of the meeting, -

(a) is or could reasonably be regarded as defamatory of any 
person;

(b) is irrelevant or immaterial to the proceedings or,
(c) is detrimental to the interest of the society, the Chairperson 

shall exercise discretion in regards to inclusion or deletion in 
the minutes on the grounds specified above.

VACANCIES ETC 
NOT TO 
INVALIDATE 
PROCEEDINGS

46.

PROCEEDING OF 47.
MEETING TO BE 
DEEMED TO BE 
GOOD AND VALID

No act or proceeding of the cooperative society, Board or of any office 
constituted or appointed under this Act shall be questioned on accounts of 
any vacancy in the membership or any defect in the election or qualification 
of the President I Chairman, Vice-President / Vice Chairman, Director, 
delegate or representative or any defect or irregularity in such act or 
proceeding not affecting the merit of the case.

Unless contrary is proved every meeting of the general body or the Board 
shall be deemed to have been duly convened and held and, all members of 
the meeting shall be deemed to have been duly qualified when the minutes 
of the meeting have been signed in accordance with the provisions of this 
Act. However, the proceedings of the Annual General Meeting and all 
general meetings shall require approval of the Registrar as provided under 
section 45.

V ' - ' POWER TO 
DEPUTE GOVT 
SERVENTTO 
MANAGE THE 
AFFAIRS OF A 
COOPERATIVE
SOCIETY

48 The State Government may, on application supported by a resolution of 
the Board of a registered cooperative society and on such terms and 
conditions, depute Government, officials to the service of the 
cooperative society for the purpose of managing the affairs of the 
cooperative society and the official shall exercise such powers and 
such duties as may be determined by the State Government and 
acceptable by the borrowing cooperative society.

CHIEF
EXECUTIVE, HIS 
POWERS AND 
FUNCTIONSAND 
STAFF

49. (1) (a) There shall be a Chief Executive, by whatever designation called 
of every cooperative society to be appointed by the Board or by 
the State Government and shall be a full time employee of such 
society.

(b) The Chief Executive shall be the ex-officio member of the Board.
(c) Where the State Government stands guarantee for repayment of 

any loan secured from any financial institution the Chief Executive 
may be appointed by the State Government and salary and 
allowances payable to and other terms and conditions of service 
including pension, gratuity and other benefits of the Chief Executive 
shall be prescribed by the Government.



394 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

(d) Notwithstanding anything contained in any law in force or bye-laws 
of the society, the Chief Executive appointed by the Government 
shall have full administrative control over the employees of the 
society in all matters including transfer, posting and disciplinary 
action. However, in case of dismissal of employees approval of the 
Board shall be necessary.

(2) The Chief Executive shall be under the general superintendence, 
direction and control of the Board and exercise the following powers 
and the functions, namely

(a) day-to-day management of the business of the co-operative 
society ;

(b) operating the accounts of the co-operative society and be 
responsible for making arrangements for safe custody of cash ;

(c) signing on the documents for and on behalf of the co-operative 
society;

(d) making arrangements for the proper maintenance of various 
books and records of the co-operative society and for the 
correct preparation, timely submission of periodical 
statements and returns, in accordance with the provisions of 
this Act, the rules and the bye-laws ;

(e) convening meetings of the general body of the co- operative 
society, the Board and the Executive Committee and other 
committees or sub-committees constituted under provision of 
the Act and bye-laws and maintaining proper records for such 
meetings;

(f) making appointments to the posts in the co-operative society 
in accordance with the bye-laws ;

(g) assisting the Board in the formulation of policies .objectives 
and planning ;

(h) furnishing to the Board periodical information necessary for 
appraising the operations and functions of the co-operative 
society ;

(i) to sue or be sued on behalf of the cooperative society;
(j) present the draft annual report and financial statements for the 

approval of the Board within thirty days of closure of the 
cooperative year;

(k) performing such other duties, and exercising such other 
powers, as may be specified in the bye-laws of the co-operative 
society ;

(l) in case of dispute between the Chief Executive and the Board
in any matter, the decision of the Registrar shall be binding on 
the both.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 395

VOTES OF
MEMBERS

w  LOAN TO BE 
UTILISED FOR 
THE PURPOSE 
FOR WHICH 
ADVANCED

RESTRICTIONS 
ON TRANSFER 
OF SHARE OR 
INTEREST

(3) Subject to other laws regulating employer- employee relations all 
employees of a cooperative society shall be appointed, regulated and 
removed by and be accountable to authorities within the cooperative 
society in accordance with the service conditions approved by the 
Board Provided that in case of cooperative societies where State 
Government holds more than fifty percent of Share Capital or 
guarantees repayment of loan secured from any financial institution, any 
upward revision of pay and allowances of staff, shall require prior 
approval of the State Government. The controlling authority of all staff 
shall be the Chief Executive of the society.

50. (1) Irrespective of the shares he holds in the society and subject to
any temporary disqualification from voting which may be prescribed in 
bye-laws and to the provisions* of section27 relating to voting by 
representatives, a member of a registered society shall have one vote 
only in the affairs of the society:

Provided that in the case of an equality of votes the President 
or Chairman at any meeting shall have a second or casting vote 
subject to the provision as laid down in section 44 :

Provided further that the bye-laws of a society may provide for 
more than one vote in the case of an affiliated society

(2) Either the President or Chairman or the Chief Executive of a 
registered society which is a member of another registered society, as 
may be decided by Board shall represent the society in the affairs of 
such other society as its representative :

Provided that the Annual General Assembly of the society 
may nominate any other member other than President or Chairman or 
Chief Executive to represent the Society.

(3) Voting by proxy shall not be allowed.

(4) Notwithstanding anything contained in this Act, a registered society 
may by specific provisions made in its bye-laws, admit certain class 
of members without any voting right.

51. The loan advanced by a registered society to a member thereof shall be 
utilised by him for the purpose for which it was advanced and for no other 

purpose. The society shall have power to recover the advance as 
prescribed if the member does not so utilise it.

52. The transfer or change of the share or interest of a member in the capital of 
a registered society shall be subject to such conditions as to maximum 
holding as may be prescribed.

VALIDITY OF 
TRANSFER OR 
CHARGE OF 
SHARE OR 
INTEREST

53. Except otherwise provided in this Act no transfer or charge of his share or 
interest by a member of a society with unlimited liability shall be valid 
unless-

(a) he has held such share or interest for not less than one year; 
and

(b) the transferer or mortgager is either a member of such society 
or a person where application for membership has been 
accepted



396 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

SHARE OR 
INTEREST NOT
LIABLE TO 
ATTACHMENT

NOMINATION OF
TRANSFEREE

TRANSFER OF 
INTEREST ON 
DEATH OF 
MEMBER

DISPOSAL OF
SHARES OR
INTEREST OF
CEASED
MEMBERS

LIABILITY OF 
MEMBERS ON 
WINDING UP OF 
SOCIETY

54 Notwithstanding anything contained in any other law for the time being 
in force and subject to the provision of section56, the share or interest 
of a member in the capital of a registered society or in any fund under 
section65 shall not be liable to attachment or sale under any decree or 
order of a court in respect of any debt or liability incurred by such 
member nor be subject to any claim by a receiver under the Provincial 
Insolvency Act,1920.

55. If the bye-laws of a registered society so permit, any member of the 
society may, in accordance therewith, nominate a person in whose 
favour the society shall dispose of the shares or interest of such 
member on his death.

56. When a member of a registered society dies, his shares and interest in 
the society shall, subject to the provisions of this Act, be transferred -

(a) to the person, if any nominated in accordance with the 
provision of section55 ; or

(b) if there is no such nominee or if the nominee is not available, or 
is difficult to be ascertained by the managing body, or if for any 
other cause such transfer cannot be made without 
unreasonable delay, the transfer of interest on death of a 
member shall be made to the person as may appear to the 
managing body to be the legal heir or legal representative of 
the deceased member, provided that ninety days have elapsed 
from the date of the member’s death and no new claim shall be 
entertained after the said period of ninety days.

57 When a member of a registered society is expelled or withdraws or
otherwise ceases to be a member under this Act, rules or bye-laws ,his 
share or interest shall be transferred to his nominee or to another 
eligible person, and the value thereon, determined in accordance with 
the rules, shall be paid to such ceased member if his share or interest 
is not forfeited under the provisions of this Act, rules or bye-laws or if he 
is insane, to any person appointed to manage his properties under the 
Indian Lunacy Act,1912 , provided that if there is no eligible transferee 
and if the bye-laws of the society so provide, the value of his share or 
interest determined in accordance with the bye-laws shall be paid to 
him or, if he is insane, to any person appointed to manage his 
properties under the Indian Lunacy Act, 1912.

58. The members of a registered society shall, in the winding up of the
society, jointly and severally liable to contribute towards any 
deficiency in the assets of the society -

(a) in the case of a society with unlimited liability, without limit; and,

(b) in the case of a society with limited liability, subject to such
• limitation of amount as may be provided in the bye-laws.

5 of
1920

A

Central 
Act IV 
of 1 ^ 2

Central
Act IV 
of 1912



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 397

RESTRICTION ON 
TRANSFER OF 
POSSESSION OF 
LAND HELD 
UNDERA 
SOCIETY

59.(1)  Notwithstanding anything in any other law for the time being 
in force, a member of a registered society the object of which is to 
develop cooperative of collective farming, shall not be entitled to 
transfer his possession or interest in any land held by him under the 
society except to the society or with the previous approval of the 
managing body and in accordance with its bye-laws, to a member 
thereof or to a person who will be admitted as a member of the society.

(2) On the death of such a member his possession of an interest in any 
such land held by him under the society shall come to his nominees in 
accordance with the provisions of section56 or to the first eligible heir 
according to seniority in age willing to become a member of the 
society.

(3) If no nominee or heir becomes a member the possession of an interest 
in such land of the deceased shall vest in the society which shall pay 
to the nominee or the heir a sum equivalent to the value of the share 
and interest of the deceased member and any other sum due from the 
society as determined in accordance with this Act or rules framed 
thereunder, after deducting all dues of the deceased member owing to 
the society.

(4) If there is no person qualified to succeed to the share or interest of the 
deceased member the society shall pay to his heir, executor or the 
legal representative, as the case may be, a sum equivalent to the 
value of the share and interest of the deceased member as determined 
in accordance with the rules, after deducting the dues of the deceased 
to the society.

(5) When in any other case a member ceases to be a member of such a 
society under this Act, rules or bye-laws his possession of and interest 
in any such land held by him under the society shall come to the 
society. If the bye-laws allow and if the share and interest of the 
members is not forfeited under this Act or rules framed thereunder, the 
society shall pay to the ceased member a sum equivalent to the value 
of the share and interest of such member and any other sum due to 
him from the society after deducting his debts to the society, if any.

(6) No land held under a registered society specified in sub-section (1) by a 
member thereof, or vested under sub-section (2) in the heir or nominee 
of such member shall be attachable in any suit or proceeding for the 
recovery of any debt other than a debt due to the society or to a 
member thereof.

(7) No land shall vest in such a society by reason of the provisions of 
this section unless it is owned by the society or has been leased to the 
society and, if the society holds the land by lease or contract the land 
shall vest in the society only during the pendency of lease or contract.

RIGHT OF A 
REGISTERED 
SOCIETY TO PAY 
PRIOR DEBTS OF 
A MORTGAGOR

60. (1) Where a mortgage is executed in favour of a registered society for 
payment of prior debts or part thereof, the mortgagor secured on the 
mortgaged property, the registered society may notwithstanding under 
the provisions of section83 and 84 of the Transfer of Property Act, 1882 
by notice in writing and served by registered post with acknowledgement 
due, require any person to whom any such debt is due to receive 
payment of such debt or part thereof from the society at its registered 
office within such period as may be specified in the notice.

IV of
1882



398 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

RESTRICTION ON
MORTGAGED
PROPERTY

(2) The person on whom such notice is served shall be bound to receive 
payment of the amount offered by the society, but where there is 
disagreement or dispute between the mortgagor and such person as 
regards to the amount of the debt or where the society tenders less than 
the agreed amount of debt the receipt of the sum offered by the society 
shall not debar such person from enforcing his right to recover the 
balance amount claimed by him.

(3) If any such person refused to receive such notice or such payment,
such debt or part thereof, as the case may be, shall cease to carry □
interest from the expiry of the period specified in the notice and the 
property mortgaged under sub-section (1) shall be deemed to have 
been freed from the encumbrance of such prior mortgage.

(4) No society shall advance any loan on any mortgage without taking a 
declaration from the prospective mortgagor as to the names of prior 
mortgagees of the property in question, if any.

61. (1) Where land is mortgaged to a registered society, the mortgagor shall
not be entitled without the approval of the society to transfer or 
mortgage as equity of redemtion or to create a charge upon or lease 
out such property during the pendency of the mortgage.

(2) If the mortgaged property is at any time is wholly or partially 
destroyed or the security rendered becomes insufficient due to fall 
in value or for any other reason and the mortgagor having been 
given a reasonable opportunity by the society of providing for 
further security sufficient to cover the loan or for repaying the loan 
with interest or such portion of the loan as may be determined by 
the supervisory, managing or controlling body and the mortgagor 
having failed to provide such security or repay such portion of the 
loan, the whole of the loan or such uncovered portion shall be 
deemed to fall due at once and recoverable through a cooperative 
demand certificate.

(3) Notwithstanding anything contained in the Transfer of Property Act, Cen&d 
1882, the mortgaged property, in case of default of payment of Act Iv 
mortgage money or any part thereof, may be sold by the society as o f  1882“ 
prescribed by rules in addition to any other remedy available, 
without the intervention of court if expressly conferred by the 
mortgage deed:

Provided that the society serves a notice in writing by 
registered post demanding payment of the mortgage money with 
interest, or part thereof upon the mortgagor or, any person having 
any interest in or charge upon the mortgaged property or the equity 
of redemption who has previously notified the society of such 
interest or charge in writing or any surety, and if default has been 
made in payment of the loan or part thereof for three months after 
such service of notice:

Provided further that any party aggrieved by an action 
taken by a registered society under this section may prefer an 
appeal to the Registrar within thirty days from the date of the sale 
and. his decision shall be final.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 399

BAR TO CERTAIN
CLAIM

MOWLISATION OF
FUNDS

DEPLOYMENT OF 
FUNDSAND 
PROFITS

DISPOSAL OF
SURPLUS

62. All payment and transfer made by a registered society under this 
Chapter shall be valid and effectual against any demand made upon the 
society by any other person

CHAPTER -  V

FINANCE

63. (1) A cooperative society may raise funds in the shape of equity
capital, deposit and loans from its members to such extent and 
under such conditions as may be specified in the bye-laws.

(2) A cooperative society may borrow funds from non- member/ 
individuals and institutions including Government to such extent and 
under such conditions as may be specified in the bye-laws.

64. (1) The funds mobilized by a cooperative society shall be deployed
primarily for the furtherance of its objectives.

(2) No part of the funds of a cooperative society other than the net profits 
shall be paid by way of bonus or dividend or otherwise distributed 
among its members.

(3) A cooperative society may out of its net profits in any year, pay on the 
paid up share capital of members a dividend at a rate fixed by the 
general body in the annual general meeting.

(4) Such of its funds as are not needed for use in its business, a 
cooperative society may invest or deposit, outside its business in any 
non speculative manner.

65. (1) The surplus, if any .arising out of the business of a cooperative society in
a financial year shall be used for the purpose as mentioned under 
clause (a) (d)( h)and ( j ) and in one or more of the following purpose as-

(a) towards a deficit cover fund;
(b) to be distributed as surplus refund among its members;
(c) to develop its business;
(d) towards reserves funds constituted in accordance with the 

bye-laws;
(e) to provide common services to its members;
(f) to provide rewards or incentives to staff;
(g) towards payment of bonus under the payment of Bonus 

Act, 1965 to the employees;
(h) towards writing off bad debts and losses not adjusted;
(i) towards such purposes as may be specified in the bye-laws 

; and
(j) to cooperative development fund.

(2) Surplus arising out of the business of a cooperative society shall be fully 
disposed of at the annual general meeting in which the audited annual 
financial statement of accounts for the year in which the surplus arose is 
presented for the consideration of the general body.

21 of
1965



400 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

MANAGEMENT
OF DEFICIT

OPERATION OF
SPECIAL FUNDS

ADDRESS OF
SOCIETY

MAINTENANCE 
AND INSPECTION
OF DOCUMENTS

66. (1) The deficit, if any, arising out of the operation of the business of a
cooperative society during any given financial year, shall be fully settled 
by debiting a part or whole of the deficit to the deficit cover fund, if any, 
or as charge among its members:

Provided that where such amounts are recovered the 
general body may resolve to credit a part or whole amount to the deficit 
cover fund or to account of each member in proportion to the deficit 
charge levied on him.

(2) No member shall be permitted to withdraw from the membership of a 
cooperative society without paying his share towards clearing the 
deficit, if any.

67. (1) A cooperative society may create reserves and such other funds as in
the interest of members or the cooperative society and which are 
specified in the bye-laws: x

Provided that where a contributory provident fund is created for 
the benefit of employees such fund -

(a) shall not be used in the business of the cooperative society.
(b) shall not form part of the assets of the cooperative society.
(c) shall not be liable to attachment or be subject to any other 

process of any court or other authority ; and
(d) shall be administered in such manner as may be provided in 

the bye-laws.

(2) In any financial year if the fund is not applied in part or whole for the 
purpose for which it was created, the cooperative society shall 
credit to the account of such fund an annual interest on the amount of 
balance of such fund at a rate not less than the rate paid by scheduled 
banks on long term fixed deposits, debiting such interest as operational 
expenditure.

68. Every registered society shall have a registered address to which all 
notices and communications may be sent and shall send notice in --\  
writing of every change thereof within thirty days of such change to the 
Registrar and to the affiliating society, if any.

69. (1) Every registered society shall keep the following documents and allow
inspection free of charge by any member of the society and such other 
persons as may be prescribed at all reasonable times at the office of the 
society :

(a) a copy of this A c t;
(b) a copy of the rules framed under this A c t;
(c) a copy of the bye-laws of society ;
(d) a copy of all rules framed under the bye-laws of the society;
(e) annual Balance Sheet authenticated by the audit Officer;
(f) Such other books, forms, register or other documents as

may be prescribed by the Registrar.
(2) A society shall deliver to every member on payment of a sum 

prescribed by the society's bye-laws or rules, copies of documents 
certified to be true copies.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 401

RESTRICTIONS
ON BORROWING

POWER OF 
GOVERNMENT 
TO GIVE 
FINANCIAL 
ASSISTANCE

RESTRICTION ON
LOANS

70. A registered society may receive deposits and may borrow from its 
members and from persons who are not members to such extent and on 

such conditions as may be provided in the Act and bye-laws :
Provided that no cooperative society shall, by accepting deposits, 

or loans or in any other way, incur liabilities exceeding 25 times the sum 
of the paid up share capital and the accumulated reserve fund during 
any financial year:

Provided further that while calculating the total sum of 
subscribed share capital and accumulated reserve fund the accumulated 
losses shall be deducted.

71. Notwithstanding anything contained in any other law for the time being 
in force, the State Government may, on the request of the cooperative

society, supported by a resolution passed by the General Assembly of the 
cooperative society, grant loans ,to take shares or guarantee the principal 
or the interest or both in respect of debentures issued by any cooperative 
society or give financial assistance in any other form to any registered 
society which puts forwards a satisfactory schemes for the utilisation of the 
funds so raised. The State Government may recover from any society out 
of its net profit in any year all or any part of such financial assistance.

72 (1) A registered society shall not give loans -
(a) to any person other than a member except with the general 

or special sanction of the Registrar, provided that a loan may 
be given to a depositor of the society out of his deposit; or

(b) to a member in excess of his normal credit limit fixed for that 
member by the society in accordance with the provision of 
the bye-laws, provided that in assessing normal credit limit 
the managing body shall take a full statement as to the 
member's means of earning.,

(c) to a member on the security of movable property or future 
movable property, unless the movable property is charged, 
hypothecated or pledged with the society;

(d) on personal security without sureties, unless the borrowing 
member has unencumbered immovable property or 
attachable funded assets sufficient to cover the loan and a 
full statement of such securities is submitted by the borrower 
and the truth of the statement is ascertained by the 
managing body ;

(e) on personal security with sureties unless, the borrowing 
member and his surety together have unencumbered 
immovable property or attachable funded assets sufficient to 
cover the loan and a full statement of such securities is 
submitted by the borrower and the sureties separately and 
the truth of the statements is ascertained by the managing 
body;

(f) to a member on personal security, with or without sureties, 
unless the loan is for a short period not exceeding the time 
required to reap the benefit of the loan and in no case 
exceeding three years.



402 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

(2) (a) Notwithstanding the provisions of sub-section (1), a loan may
be given on personal security provided that the managing 
body of the society is satisfied as to the borrowers capability 
and has taken from him a scheme for the utilisation of the 
loan and has ascertained the truth of the statements 
contained in the scheme and the bonafides of the borrowing 
member;

(b) the resolution of the managing body granting a loan under this 
section shall contain the names of all assenting members, and 
all the assenting members and secretary shall be held jointly 
and severally responsible for the issue of the loan and its 
recovery;

(c) Notwithstanding the provisions of clauses (b) (c) (d) (e) and
(f) of sub-section (1) and clauses (a) and (b) of this sub­
section a registered society may issue a loan on mortgage of 
valuable security.

(d) no person shall be accepted as a surety for any borrower unless 
he is also a member of the same registered society.

(3) A registered society, the primary object of which is not the issue of 
loans, shall open a separate accounting or finance or banking branch 
in accordance with its bye-laws and frame rules for the conduct of 
business in such branch before it issues any loans and such rules 
shall first be approved by the Registrar.

OFFICE BEARER 
OF SOCIETY IS 
REQUIRED TO 
FURNISH 
INFORMATION 
AND PRODUCE 
DOCUMENTS

73.(1) Every office bearer of a registered society shall produce documents 
and books of account and cash balance in his custody and appear before 
and furnish such information in regard to the transactions or working of the 
society as may be required of him by the Registrar or persons authorised 
by the Registrar in this behalf and auditing officer, arbitrator, liquidator or 
any persons conducting inspection or an inquiry under the provisions of this 
Act and the rules made thereunder.

(2) (a) At any sale of property, movable or immovable, held under
this Act or rules framed thereunder, no office bearer of the 
registered society concerned or any person having any duty to 
perform in connection with such sale, shall either directly or 
indirectly bid for, acquire or attempt to acquire any interest in such 
property.

(b) any office bearer of a society or a liquidator may, on behalf of the 
society bid and purchase at a sale of mortgaged property.

CHAPTER - VI

ACCOUNTABILITY AND PRIVILEGES OF REGISTERED SOCIETY.

PRIOR CLAIMS
OF SOCIETIES

74. (1) Notwithstanding anything contained in sections 60 and 61 of ,
the Code of Civil Procedure, 1908 any debt or outstanding demand e 1 1 ’ ll 
due to a registered society by any member, surety .past member or A e t  c 
the estate of any deceased member shall be a first charge -



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 403

(a) if such debt or the demand is due in respect of the supply, or 
any loan to provide the means of such supply, of seed, 
manure, labour, fodder for cattle or any other thing incidental 
to the conduct of agricultural operations upon the crops or 
agricultural produce of such member, past member, or 
belonging to the estate of such deceased member, at any 
time within two years from the date of such supply or loan or 
from the days on which the last installment of such supply or 
loan became repayable ;

(b) if such debt or demand is due in respect of the supply of or 
any loan for the purchase of cattle, agricultural implements 
or warehouses for the storage of agricultural produce in the 
manner and to the extent aforesaid upon the crops or 
agricultural produce of such member, past member or 
belonging to the estate of such deceased member and also 
upon the cattle, agricultural implements or warehouse thus 
supplied or purchased wholly or in part from any such loan;

(c) if such debt or demand is due in respect of the supply of 
loan for the purchase of raw materials, industrial 
implements, machinery, workshop, warehouses or business 
premises upon the raw materials or other things supplied or 
purchased by such member, past member or the deceased 
member wholly or in part from any such loan and also upon 
any articles manufactured from raw materials or with 
implements or machinery so supplied or purchased wholly 
or in part from any such loan ;

(d) if such debt or demand is due in respect of any loan for the 
purchase, improvement or redemption of land or for the 
purchase or construction of any house, building or any 
portion thereof, upon the land purchased, improved or 
redeemed or the house or building so purchased or 
constructed by such member, past member or the deceased 
member from any such loan ;

(2) Notwithstanding anything contained in this Act or any other law for 
the time being in force ,-

(a) a member who makes an application for a loan to a 
cooperative society of which the majority of the 
members are agriculturists shall, if he owns any land 
or has any interest in any land as a tenant, make in 
such forms as may be prescribed, a declaration that 
he thereby creates a charge upon such land or such 
interest, or such portion thereof, as may be specified 
in the declaration for securing the repayment of the 
loan which the society may make to the members on 
the application and of future loans ,if any, that may 
be made to him, from time to time by the society 
together with interest on such loan or loans ;



404 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4 ,2 0 1 2

CHARGE AND 
SET OFF IN 
RESPECT OF 
SHARES OR 
INTEREST OF 
MEMBERS

(b) a declaration made under clause (a) may be varied 
or cancelled at any time by the members making it, 
with the consent of the society in whose favour it is 
made;

(c) any land or interest in land in respect of which a 
declaration has been made under clause (a) or any 
part of such land or interest, shall not be sold or 
otherwise transferred by the member making the 
declaration until the entire amount of the loan or 
loans taken by the member from the society together 
with interest thereon is paid to the society :

Provided that nothing in this 
clause shall apply to any such part of such land or 
interest as may have been released from the charge 
created under this section under the proviso to 
clause (d );

(d) subject to any claim of the State Government in 
respect of land revenue or any sum recoverable as 
land revenue or as public demand, there shall be a 
first charge in favour of the society on the land or 
interest in land specified in the declaration made 
under clause (a) for and to the extent of the dues 
recoverable from the member making the declaration 
on account of the loan or loans together with any 
interest thereon made to him by the society :

Provided that if a part of such dues is paid 
by the member, the society may ,on the application 
of the member and with the approval of the financing 
bank to which it may be indebted, release from the 
charge such part of the land or interest in the land 
specified in the declaration made under clause (a) as 
the society may, having due regard to the security of 
the outstanding amount of the loan or loans made to 
the member deem proper;

(e) every record of rights prepared and maintained 
under the Assam Land and Revenue Regulation, 
1886 or any other law for the time being in force shall 
also include the particulars of every charge on any 
land or any interest thereon created under clause 
(a).

75. A registered society shall have a charge upon the share or interest in 
the capital and on the deposits of a member or past member or 
deceased member and upon any dividend, bonus or surplus payment 
to a member or past member or the estate of a deceased member in 
respect of any debt due from such member or past member of estate 
of such deceased member to the society, and may set off any sum 
credited or payable to a member or past member or estate of a 
deceased member in or towards payment of any such debt.

A  .\  -

Regula­
tion I of 
1886



THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012 405

DEDUCTION OF 
DUES FROM 
SALARY OF 
MEMBERS

EXEMPTION 
FROM 
COMPULSORY 
REGISTRATION 
AND 
PERSONAL 
ATTENDANCE

REGISTRATION 
OF 
INSTRUMENTS

EXEMPTION 
,r ROM 
REGISTRATION 
OF MORTGAGE 
DEEDS 
EXECUTED IN 
FAVOUR OF 

COOPERATIVE 
LAND 
DEVELOPMENT 
BANK OR 
PRIMARY 
SOCIETY

76. If a member of a registered society, who is an employee of the 
Government or any local authority, takes a loan from a society and 
contracts to repay it by installments, and authorises the society to 
recover such installments by deduction from his salary, the person who 
disburses any amount payable to such member as salary or 
remuneration in respect of such employment shall on demand from the 
society, deduct the amount of such installment from the amount 
disbursed to such members as salary and shall forthwith remit to the 
society the amount so deducted.

77. Nothing in clauses(b) and (c) of sub-section (1) of section 17 of the 
Indian Registration Act, 1908 shall apply to -

(1) any instrument relating to share in a registered society, 
notwithstanding that assets of such society consists 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 to 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 holder of such debentures;

(3) any endorsement upon or transfer of any debenture issued by any such 
society;

(4) notwithstanding anything contained in the Indian Registration Act, 1908, 
it shall not be necessary for any office bearer of a registered society or 
a liquidator of a society to appear in person or by agent at any 
registration office in any proceeding connected with the registration of 
any instrument executed by him in his official capacity or to sign as 
provided in section58 of that Act.

78. (1) Notwithstanding anything contained in the Indian Registration Act, 1908,
it shall not be necessary to register mortgages executed in favour of the 

Cooperative Land Development Bank or a primary society of which the 
majority of the members are agriculturists, for the purpose of securing 
the repayment of a loan provided that ;the Land Development Bank or 
the primary society concerned send within such time and in such 
manner as may be prescribed, a copy of the instrument whereby 
immovable property is mortgaged for the purpose of securing 
repayment of the loan to the registering officer with the local limits of 
whose jurisdiction the whole or any part of the property mortgaged is 
situated.

(2) On receipt of the copy of the instrument under the preceding sub-section, 
the Registering Authority shall file a copy or copies as the case may be in 
Book No.1 prescribed under section-51 of the Indian Registration 

Act, 1908.

Central
Act XVI 
of 1908

Central
Act XVJ 
of 1908

Central
Act XVI 
of 1908

Central
Act XVI 
of 1908



406 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

POWER TO
GRANT'
REMISSION OF 
CERTAIN DUTIES, 
FEES ETC

ACCOUNTS, 
RECORDS AND 
DOCUMENTS TO 
BE MAINTAINED

(3) The mortgages executed in favour of and all other assets transferred to a 
cooperative Land Development Bank or a primary society of which the 
majority of members are agriculturists, by the members thereof, as 
security for repayment of loan, before or after commencement of this Act 
shall, with effect from the date of such execution or transfer be deemed to 
have been executed or transferred by such society in favour of or to the 
financing bank,

79. (1) The State Government may , by general or special order in the case of a
registered society or class of registered societies, remit any tax, cess or fee 
payable under any law for the time being in force or the rules thereunder in 
respect of which they are competent to exempt remission of such tax or 
fee.

(2) The State Government may, in respect of any registered society or class of 
registered societies by notification in the Official Gazette, grant remission 
of-

(a) the stamp duty other than stamp duties falling within item 91 or 
item 96 in List -I of Seventh Schedule to the Constitution of 
India in respect of any instrument executed by or on behalf of a 
member thereof, and relating to the business of such society or 
any class of such instruments, cooperative demand certificates 
or decisions, awards or orders of Registrar or arbitrators under 
this Act, in cases where, but for such remission, the registered 
society, Officer or member thereof, as the case may be, would 
be liable to pay the stamp duty chargeable under any law for 
the time being in force, in respect of such instrument, and

(b) any fee payable by a registered society under any law for the 
time being in force for the registration of documents or of court 
for the time being in force.

80. (1) Every cooperative society shall keep at its head office the following
accounts, records and documents, namely

(a) a copy of this Act with amendments made therein from time to 
time ;

(b) copies of other laws and regulations to which the cooperative 
society is a subject;

(c) a copy of its bye-laws, with amendments made therein from 
time to time ;

(d) a copy of the Regulations framed under clause(7) of section-38 
and amendments made therein from time to time ;

(e) the minutes books ;
(f) accounts of all sums of money received and expended by the 

cooperative society and their respective purposes ;
(g) account of all purchases and sales of goods by the cooperative 

society ;
(h) account of the assets and liabilities of the cooperative society ;
(i) a list of members, their fulfillment of responsibilities over the 

previous financial year, their eligibility to exercise their rights for 
the current twelve month period updated within sixty days of 
closure of the cooperative year; and



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 407

(j) all such other accounts, records and documents as may be 
f  required by this Act or other laws and regulations or byelaws of 

the cooperative society :
Provided that where a cooperative society has branch 

offices, summarised statements of accounts relating to such 
branch office, shall be available at the head office for each 
quarter of financial year within fifteen days of the end of that 
quarter.

(2) The books of account and records shall be open to inspection by any 
Director during office hours of the cooperative society.

(3) The copies of this Act, bye-laws, regulations, minutes book of the 
general body, voters list and such accounts and records of transactions 
that relates to a member shall be made available to any member during 
office hours of the cooperative society for inspection .

(4) The books of accounts relating to a period of at least ten years before 
the current financial year together with supporting records and 
vouchers shall be preserved unless otherwise require for a longer 
period.

CHAPTER VII

AUDIT

-AUDIT 81. (1) The Registrar shall audit or cause to be audited by auditors of the
department or by some person authorised by him, by a general or 
special order in writing in this behalf, the accounts prepared by every 
registered society and society under liquidation once at least in every 
year:

Provided that State Government, shall also maintain a panel 
of auditors consisting of Chartered Accountants and any cooperative 
society shall have the option to get the accounts audited by an auditor 
out of this panel, subject to the condition that accounts of such 
cooperative society shall have to be audited by departmental auditors 
atleast once in every three years.

(2) The Registrar or the person authorised by him in this behalf shall at all 
reasonable times have free access to the books, accounts, documents, 
securities, cash and other properties belonging to or in the custody of 
the society and may summon any person in possession or responsible 
for custody of any such books, accounts, documents, securities, cash or 
other properties to produce the same and furnish such information in 
regard to the transactions and working of the society at any convenient 
place or at the head quarters of the society or any branch thereof by.the 
same means and so far as may be in the same manner as provided in 
the Code of Civil Procedure, 1908 .

(3) In respect of every audit of the accounts a registered society shall pay such 
audit fee as may be prescribed by the Registrar of Cooperative Societies 
and such fee shall be deemed to be outstanding dues from the society.

Central
Act V of
1908



408 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

POWER OF THE 
REGISTRAR TO 
HAVE THE 
ACCOUNTS 
WRITTEN UP

82. If at the time of the audit the accounts of a registered society are not 
complete the Registrar or with his sanction the audit officer may cause the 
accounts to be written up at the expense of the society.

Such expenses shall be realised by the auditor from the 
society concerned along with the audit fee.

NATURE OF
AUDIT

83. (1) The audit shall include among others -

(a) a verification of the cash balance and securities ;
(b) a verification of the balance at the credit of the depositors and 

creditors and the amounts due from the debtors of the society ;
(c) an examination of overdue debts, if any;
(d) the valuation of the assets including stock verifications, and 

liabilities of the society;
(e) an examination of the statement of accounts and balance 

sheets to be prepared by the managing body of the society in 
such forms as may be prescribed ;

(f) a certification of the realised profits ; and
(g) any other relevant matter.

(2) The auditor's report among others shall include

(a) statement whether the auditor has obtained all the information and 
explanations which to the best of his knowledge and belief were 
necessary for the purpose of the audit;

(b) statement whether the balance sheet of cooperative society and 
income and expenditure account dealt with by the report are in 
agreement with the books of accounts ;

(c) statement indicating the basis on which each asset and liability was
valued and mentioned specifically any change in the manner in 
which such valuation was done in the financial year under
examination and its effect on surplus or deficit;

(d) statement indicating the amount of surplus earned or deficit 
incurred from provision of services to non-members as distinct from 
surplus earned or deficit incurred because of service to members 
or in normal course of business ;

(e) statement indicating every deviation in actual expenses and income 
from the estimated expenses and income in the approved budget;

(f) statement whether or not any of the Directors had at any time 
during the financial year under review, become ineligible under this 
Act to continue in office as a Director, and

(g) statement whether the decisions on disposal of surplus or 
assessment of deficit of the general body at its previous Annual 
General Meeting were implemented correctly and completely or 
not.

84. The audit officer shall within a fortnight from the date of completion of
AUDIT REPORT audit, submit to the registered society and to the Registrar, together with 

the statement of accounts audited, audit report including a statement of -



THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012 409

RECTIFICATION 
OF DEFECT

RE-AUDIT/
RECASTING OF
AUDIT REPORT

INQUIRY

(a) every transaction which appears to him to be contrary to law or to 
the rules or bye-laws ;

(b) every sum which ought to have been brought but has not been 
brought into account;

(c) the amount of deficiency or loss which appears to have resulted 
from any negligence or misconduct that requires further 
investigation ;

(d) any money or property belonging to the society which appears to 
have been misappropriated or fraudulently retained by any person ;

(e) any of the assets which appears to him to be bad or doubtful;

(f) any irregularity in maintaining the account; and

(g) any other relevant matter under section 83.

85. (1) A registered society shall be afforded by the Registrar an opportunity of
explaining any defects, or irregularities pointed out and objected to by the 
audit officer and thereafter, the society shall within such time and in such 
manner as the Registrar may direct, remedy such defects and 
irregularities and report to the Registrar, the action taken by it thereon.

(2) The Boards of all societies shall take follow up action on the 
audit report and shall submit a report to the Registrar within 3 months of 
acceptance of report by the Annual General Meeting of the society. The 
non compliance of above shall disqualify the Board in office after expiry 

of three months period.

86. If the chief auditor on appeal or on inquiry and detail checking of accounts 
satisfies himself that the audited accounts need recasting or re-audit he 
shall give order for such recasting or re-audit. Provided that no such 
recasting or re-audit shall be taken up after 3 years from the date of 
acceptance of Balance Sheet by the General Assembly in their Annual 
General Meeting. If recasting or re-audit is required to be undertaken due 
to non compliance of the procedure of audit the cost of recasting or re-audit 
shall be recovered from the auditor auditing the accounts in addition to 
facing disciplinary action under the Assam Government Services and 
Conduct Rules or action under appropriate law as the case may be. If the 
same has to be undertaken due to non furnishing of adequate records, 
reports etc, the cost of such recasting or re-audit shall be recovered from 
the respective office bearer or officer of the society . He will also be liable 
to disciplinary action under appropriate law, rules applicable for the 
purpose. The cost of re-audit or recasting of audit report shall be 
determined by the Registrar.

87. (1)The Registrar shall on the application of a federal or a secondary
cooperative society to which the cooperative society concerned is 
affiliated, or of a creditor to whom the cooperative is indebted, or of not 
less than one third of the Directors, or of not less than one-tenth of the 
members, hold an inquiry or cause an inquiry into any specific subject 
relating to any violation of any of the provisions of this Act or bye-laws.



410 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

INSPECTION OF 
SOCIETY

<fe

(2) The Registrar shall order an inquiry only after the receipt of a fee as 
determinec by him from the applicant or the applicants. The fee should 
be sufficient to meet the costs of the inquiry to be conducted.

(3) The inquiry shall be completed within a period of thirty days from the date
of order of the inquiry :

Provided that where the inquiry cannot be completed within a 
period of thirty days the reasons thereof shall be recorded in writing.
(4) The Registrar shall --

(a) within a period of thirty days from the date of the completion of the 
inquiry, communicate the report of the inquiry -

(i) to the cooperative society concerned ; and
(ii) to the applicant secondary cooperative society ; or
(iii) to the applicant creditor; or
(iv) to the person designated by the applicant Directors ; or
(v) to the person designated by the applicant members, as the

case may be ; >
(b) within a period of fifteen days from the date of expiry of the period 

mentioned in sub-section (3) communicate the reasons for the non­
completion of the inquiry within the specified period along with the 
period which is likely to be taken for completion of inquiry, to the 
parties concerned under sub section 4 (a ).

(5) The cooperative society concerned shall, on receipt of the report, place it 
before the next general meeting or in a special general meeting to take 
such action thereon as the general body may think fit .which may include 
removal of all or any directors and election of new directors or any other 

action on any employees as required.

(6) A copy of report shall be supplied to any other member of the cooperative 
society, on payment of such fee as determined by the Registrar

88. (1) Every registered society shall be liable to inspection at any time by the 
Registrar or any person authorised by him by general or special order and 
by any affiliating society if so provided in its bye-laws.

(2) An inspection of a registered society snail also be made by the Registrar 
or any person authorised by him in this behalf by an order in writing at any 
time on the application of a creditor of a registered society :

Provided that no inspection shall be made under sub-section unless -
(I) the creditor deposits with the Registrar such sum as security 

for the cost of the proposed inspection as the Registrar may 
require ; and

(II) the creditor satisfies the Registrar that the alleged debt is a 
sum then due and that he has demanded payment thereof 
and has not received satisfactory response within a 
reasonable tim e:

Provided further that no inspection shall be conducted under this 
sub-section without giving the society an opportunity of being heard.

The result of an inspection under this section shall be 
communicated to the society and if held at the instance of a creditor, to the 
creditor.



411THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012

(3) (a) A financing bank shall have the right to inspect the books of any
cooperative society which has either applied to the bank for financial 
assistance or is indebted to the bank on account of financial 
assistance granted earlier;

(b) the inspection may be carried out by an officer or any other member 
of the paid staff of financing bank.

(c) the officer or any other member of the paid staff of the financing bank 
undertaking such inspection, shall at all reasonable time have access 
to the books of account, documents, securities, cash and other 
properties belonging to or in the custody of the cooperative society 
for inspection by him. Such information, statements and returns as 
may be required by him to assess the financial conditions of the 
society and the safety of the financial assistance to be made to the
society or already made to it.

(4) The cooperative society concerned shall on receipt of the report, place it 
before the next . Annual General Meeting or Special Annual General 
Meeting with action taken report and to take such action thereon as the 
General body may think fit which may include removal of all or any 
directors or any other action on employee as required.

(5) A copy of the report shall be supplied to any member on requisition and on 
payment of fees to be determined by the Registrar.

COST OF 
INQUIRY AND 
INSPECTION

89. (1) When an inquiry is held under section87 or an inspection is made under 
section-88, the Registrar may , after giving the parties an opportunity of 
being heard, apportion the cost or such part of the cost as he may deem fit 
, between the society , the members thereof or the affiliating society or the 
creditor or creditors applying for such inspection or inquiry, as the case 
may be, and the officers, former officers, members and past members of

r- the society.

(2) No expenditure from the fund of registered society shall be incurred for the 
purpose of defraying any cost in support of any appeal preferred by any 
person other than the society itself against an order under sub-section(l).

(3) Any person authorised by the Registrar for the purpose of inquiry and 
inspection under section87 and 88 shall have ail the powers of the 
Registrar when acting under these sections.

(4) Any sum awarded by way of cost under this section shall be recoverable as 
the fees for inquiry or inspection in the manner of realisation of audit fees 
or through a Cooperative Demand Certificate.

PROHIBITION OF 
USE OF WORD 
"COOPERATIVE" 
AND PENALTY

90. (1) No person.other than a cooperative society registered under this Act shall, 
without the permission of the State Government, function, trade or carry on 
business under any name or title of which the word" cooperative" or its 
equivalent in any Indian language forms part.



412 THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012

(2) Every person who is a member of a cooperative society formed in 
contravention of section4 and section6 of this Act and every person 
contravening the provisions of sub-section (1) shall be punishable with a 
fine which may extend to five hundred rupees and in the case of a 
continuing offence with further fine of two hundred rupees for each month 
on which the offence is continued after conviction thereof.

OFFENCE 91. (1) A person who makes or assists in making a report, return, notice or other 
documents required under this Act to be published or sent to the Registrar 
or to any other person that --

(a) contains an untrue statement of a material; or
(b) omits to state a material fact required in the report or makes a 

statement contained in the report misleading in the light of the 
circumstances in which it was made;

shall be guilty of an offence and shall on summary conviction, be 
punishable -

''* r '

(a) in case of an individual, with imprisonment for a term which 
may extend to ninety days or with fine which may extend to 
rupees ten thousand or both;

(b) in the case of juristic person other than an individual, with a fine 
which may extend to rupees ten thousand.

(2) (a) If the person committing an offence under sub-section(l) is a 
cooperative society which is a body corporate, the 
cooperative society as well as every person in charge of and 
responsible to the cooperative society for the conduct of 
its business at the time of commission of the offence shall be 
deemed to be guilty of the offence and shall be liable to be 
proceeded against and punished accordingly.

(b) Notwithstanding anything contained in clause (a) where an 
offence has been committed by a cooperative society, and it 
is proved that the offence has been committed with the consent 
of and connivance of or that the commission of the offence is 
attributable to any neglect on the part of any Director, 
Manager, Secretary or other officer of the cooperative society, 
such Director, Manager, Secretary or other officer shall also be 
deemed to be guilty of that offence and shall be punishable 
with imprisonment for a term which may extend to ninety days 
or with fine of one thousand rupees or with both.

(3) No person shall be guilty of an offence under sub-section (1) or sub­
section (2) where the untrue statement or omission --

(a) was not known to him and
(b) after exercising reasonable diligence fact could not have 

been known to him.
(4) Every person who --

(a) without reasonable cause, contravenes a provision of this 
Act for which no penalty is otherwise provided, or



THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012 413

(b) fails to file or furnish return or to give any notice or to send 
any document required by the provisions of this Act --

shall be guilty of an offence and shall, on summary conviction, be 
punishable with a fine which may extend to two thousand rupees.

(5) Where a person is convicted of an offence under this Act the Court may, 
in addition to any punishment imposed, order the person to comply with 
the provisions of this Act for the contravention of which he has been 
convicted.

(6) No prosecution for an offence under this Act shall be commenced after 
five years from the date when the subject matter of the complaint arose.

(7) No civil remedy for an act or omission under this Act is suspended or 
affected by reason that the act or omission is an offence under this Act.

REFERENCE OF 
DISPUTE

SETTLEMENT OF 
DISPUTE

CHAPTER VIII

SETTLEMENT OF DISPUTES

92. Any dispute touching the business of a registered society, other than a 
dispute regarding disciplinary action taken by a society against an 
employee of the society, or of the liquidator of a society shall be referred 
to the Registrar for decision if the parties thereto are among the 
following

(a) the society, its past or present controlling or managing body any 
past or present officer, agent or employee or the liquidator of the 
society, or

(b) member, past member or persons claiming through a member, 
past member or deceased member of the society, or

(c) a surety of a member, a past member or deceased member of a 
society, or

(d) any other registered society or the liquidator of the society,
(e) a registered society and a financing bank.

93. (1) The Registrar shall on receipt of a reference under section92-

(a) decide the dispute himself or authorise any other 
Government officer to decide the dispute ; or

(b) refer it for disposal to an arbitrator appointed by the 
Registrar or to three arbitrators one to be nominated by 
each of the parties to the dispute and the third who shall be 
nominated by the Registrar to act as Chairman. Where any 
party to the dispute fails to nominate an arbitrator within 
fifteen days after the communication of this notice, the 
Registrar may himself make the nomination. No legal 
practitioner may be nominated as an arbitrator by any party 
to a dispute or by the Registrar;



414 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

(c) an arbitrator appointed under the previous sub-clause shall x  of 
be governed by the Indian Arbitration Act, 1940, with such 1940 
statutory re-enactment or modification thereof as shall from 
time to time be made.

(2) The Registrar may withdraw any reference of such dispute referred to 
under sub-section (1) and may deal with it himself under the said sub­
section.

(3) Where the Registrar is satisfied that a party to any reference made to 
him under section -92 with intent to defeat or delay the execution of any 
decision that may be passed thereon -

(a) Is about to dispose of the whole or any part of his property, 
or

(b) is about to remove the whole or any part of his property from 
the local limits of the jurisdiction of the Registrar;

the Registrar may direct the conditional attachment of the said 
property or such part thereof as he deems necessary, and such attachment 
shall have the same effect as if it had been made by a competent Civil 
Court.

CANCELLATION
OF
REGISTRATION

CHAPTER IX

DISSOLUTION OF A SOCIETY

94. (1) If the Registrar, on receipt of an application made upon resolution adopted 
in a meeting of the General Assembly by a three-fourth majority of the 
members present in the meeting, provided that the notice of dissolution 
was included in the circulated agenda of the meeting, is of opinion that the 
society ought to be dissolved, he may, by an order in writing, cancel the 
registration of the society.

(2) The Registrar after an enquiry has been held under section 87 or after the 
inspection has been made under section 88 may cancel the registration of 
a society which -

(i) has not commenced working ; or
(ii) has ceased working ; or
(iii) has ceased to comply materially with any condition as to 

registration in this Act, rules or bye-laws ; and
(iv) in his opinion ought to be dissolved .

(3) A copy of the order canceling the registration of a society shall forthwith be 
published in the official Gazette by a notice, which shall be communicated 
to the society and to any affiliating society concerned by registered post. 
The notice shall contain the name of the liquidator appointed under Section 
95 who shall take full charge of the society forthwith and shall require all 
claims against the said society to be made to the liquidator within two 
months of the publication of the notice. All liabilities recorded in the account 
books of the society shall be deemed ipso facto to have been so claimed.



THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012 415

(4) When the cancellation of the registration of a society takes effect, the 
society shall cease to exist as a corporate body, but shall vest in the 
liquidator

(5) Any member of the society may, within two months from the date of 
publication of the order of cancellation, appeal to the State Government 
from such order.

(6) Where an appeal is presented within two months from the publication 
of on order canceling the registration of the society, the order shall take 
effect on the expiry of the period.

(7) When an appeal is presented within two months of an order of cancellation, 
the order shall not take effect until it is confirmed by the State 
Government and such confirmation is communicated to the society by 
registered post.

WINDING UP, 
APPOINTMENT 
OF LIQUIDATOR 
AND HIS POWERS 
AND FUNCTIONS

95. (1) When an order of cancellation of the registration of a society is made by the 
Registrar under Section 94, he may appoint any person to be the liquidator 
of the society and may remove such person and appoint another in his 
place.

(2) The liquidator appointed under sub-section (1) shall have power from the
date of his appointment to take immediate possession of all assets, 
properties, effects and actionable claims of the society or to which the 
society is entitled and all books, records, case and other documents 
pertaining to the business of the society and. in the interest of the society, 
shall hold charge of the society notwithstanding the provisions of section 94 
provided that no steps shall be taken for the winding up of the society 
during the pendency of any stay order.

(3) The liquidator shall, under the general control of the Registrar, have power, 
so far as is necessary for the winding up of the society, on behalf of the 
society to carry on the business thereof and to do all acts and execute all 
documents necessary to such winding up, and in particular shall exercise 
the following powers

(a) to institute, compromise and defend suits and other legal 
proceedings on behalf of the society;

(b) to make any compromise or arrangement with any person 
between whom and the society there exists any dispute;

(c) to determine the debts due to the society by a member, past 
member or estate, nominees, heirs or legal representatives of 
deceased members ;

(d) to determine from time to time the contribution to be made or 
remaining to be made by the members, past members or by the 
estate or nominees, heirs or legal representative of deceased 
members or by any officers or former officers, to the assets of 
the society and to determine the debts due from such members 
or persons and the cost of liquidation;



416 THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012

(e) to calculate the cost of liquidation and to determine by what 
persons and in what proportion they are to be borne;

(f) to investigate all claims against the society and subject to the 
provisions of this Act to decide questions of priority arising 
between claimants;

(g) to pay claims against the society including interest up to date of 
cancellation of registration according to their respective 
priorities, if any, in full or rateably as the assets including the 
reserve fund of the society, permit; the surplus, if any, 
remaining after payment of claims being applied in payment of 
interest from the date of such cancellation at the rate fixed by 
him but not exceeding the contract rate in any case;

(h) to take step to recover dues according to the provisions of 
section 102, if necessary; and

(I) to dispose of the surplus, if any, remaining after paying the 
claims against the society in accordance with section 96.

(4) Subject to the provisions of this Act and rules made there under,a liquidator 
appointed under section 95 shall, in so far as such powers are necessary 
for carrying out the purpose of this section, have power to summon and 
enforce the attendance of witnesses and to compel the production of any 
books, accounts, documents, securities, cash or other properties belonging v

to or in the custody of the society by the same means and so far as may be 1908 
in the same manner as is provided in the case of a Civil Court under the 
Code of Civil Procedure, 1908.

(5) Notwithstanding anything contained in any law for the time being in force, if 
any landed property is held by a liquidator as such the title over the land 
shall be complete as soon as the mutation of the name of his office is 
effected and no court shall question the title on the ground of 
dispossession, want of possession or physical delivery of possession.

DISTRIBUTION OF 
FUND OF A 
DISSOLVED 
SOCIETY

96. On dissolution of a society the reserved fund and any undisbursed cash in 
hand shall be applied to discharging liabilities of the society and the 
repayment of the share capital. Any sum that may remain may be applied 
to such object of local and public utility as may be selected by the members 
of the dissolved society and approved by the Registrar. If, within three 
months of the notice published in the Official Gazette under Section 97, 
notifying the closing of the liquidation proceedings of the society, the 
members fail to select any object as aforesaid, the Registrar shall, with the 
approval of the Government, apply the fund to such local public utility as 
may be determined by him or credit the remaining sum to the reserve fund 
of a society to be formed to replace the dissolved society or if there be no 
such society to any other deserving society existing within the same area of 
operation and having objects similar to those of the dissolved society or if 
there be no such society to any other registered society in Assam as may 
be determined by the Registrar.

LIQUIDATOR TO 
DEPOSIT THE 
BOOKS AND 
SUBMIT A FINAL 
REPORT

97. When the affairs of a registered society have been wound up, the liquidator 
shall make a report to the Registrar, who, when satisfied shall order the 
liquidation proceedings to be closed and direct the liquidator to deposit the 
records whatsoever the Registrar thinks fit and the Registrar shall issue a 
notice in the Official Gazette, notifying the closing of the liquidation 
proceedings of the society.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 417

DISPOSAL OF 
SURPLUS 
ASSETS OF 
LIQUIDATED CO­
OPERATIVE 
SOCIETIES

BAR OF SUITS OR
LEGAL
PROCEEDINGS

98. After all the liabilities including the paid up share capital of a wound up 
cooperative society have been met, the surplus assets shall not be divided 
among its members but they shall be applied to any object described in the 
bye-laws and when no object is so prescribed in the bye-laws, to the 
cooperative development fund.

99. When an order to wind up the cooperative society has been made or the 
liquidator has been appointed a suit or other legal proceeding relating to 
business of such cooperative society shall be proceeded with or instituted 
against the liquidator as such or against the cooperative society or any 
member thereof except with the leave of the Registrar and subject to such 
conditions as he may impose.

FINAL ACCOUNTS
100.(1)  A liquidator shall pay the costs of liquidation out of the property of the 

cooperative society and shall pay or make adequate provision for all 
claims

against the cooperative society.
(2) Subject to the provisions of section-60 after paying or making adequate 

provision for all claims against the cooperative society, the liquidator 
shall apply to the Registrar for approval of his final accounts and for 
permission to distribute in cash or in kind the remaining property of the 
cooperative society in accordance with the bye-laws.

(3) Where the Registrar approves the final accounts rendered by a 
liquidator under sub-section(2), he shall -

(a) issue direction with respect to the custody or disposal of the 
documents and records of the cooperative society; and

(b) discharge the liquidator.
(4) Where the Registrar discharges a liquidator under sub-section(3) the 

Registrar shall dissolve the cooperative society, issue a certificate of 
dissolution and delete its name from the Register of Co-operative. 
Societies

(5) The cooperative society ceases to exist on the date shown in the 
certificate of dissolution,, which shall not be later than eight years after 
the appointment of the liquidator.

BAR OF SUIT 101. Save in so far as is expressly provided in this Act, no Civil Court shall 
take cognizance of any matter concerned with the winding up or 
dissolution of a society under this Act and when a liquidator has been 
appointed no suit, order or legal proceedings shall lie or be proceeded 
with against him except by leave of the Registrar and subject to such 
terms as he may impose.

CHAPTER X

RECOVERY OF SUMS DUE

RECOVERY OF 
SUMS DUE AND 
ENFORCEMENT 
OF OBLIGATIONS

102. (1) Notwithstanding anything contained in this Act, the Registrar or such 
other person as may be authorised in this behalf, may, on his own 
motion when the interest of the Government is involved or on the written 
requisition of a registered society , an affiliating society or financing bank 
for the recovery of any loan or any other sum due by a defaulting 
member after due inquiry as he may deem fit and after giving a 
reasonable opportunity of being heard, grant a Cooperative Demand 
Certificate for recovery of any amount found to be due.



418 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

CHARGE AND
SURCHARGE

2. (a) If any installment of loan or interest payable by a member of a
cooperative society or any part of such installment has 
remained unpaid for more than 30 days from the date on which it 
fell due, the Board may , in addition to any other person authorised 
for the recovery of such installment or part thereof, recover the 
installment or such part thereof by distraint and sale of the produce 
of the charged land including the standing crop;

(b) On receipt of such application the Registrar or the person 
authorised by him may, notwithstanding anything contained in the 
Transfer of Property Act, 1882, take action in the manner as 
prescribed for the purpose of distraining and selling such produce .

Provided that no distraint shall be made after the expiry of 
twelve months from the date on which the installment fell due ;

(c) The value of the property distrained shall be, as nearly as possible
equal to the amount due and the expenses of the distraint and the 
costs of the sale.

103. (1) Where, as the result of an audit under section-81 or an inquiry under 
section-87 or an inspection under section-88 or a report made in the 
course of the winding up of a registered society, it appears to the 
Registrar that any member, officer or employee past or present, of the 
society has at any time within a period of four years prior to the date of 
such audit .inspection, inquiry or report, as the case may be, -

(a) intentionally, whether individually or as an assenting member 
of any managing or other controlling body, made or authorised 
any payment or granted any loan which is contrary to the 
provision of this Act or to the rules or bye-laws or failed to take 
timely steps to recover any loan at the due date or it was being 
improperly utilized ; or

(b) was grossly negligent in respect of any loss or deficiency,

(c) failed to bring into account any sum which ought to have been 
brought into account; or

(d) misappropriated or fraudulently retained any property of the 
society ; or

(e) committed breach of trust in relation to the society, the 
Registrar may inquire into the conduct of such officer or 
members of the managing or other controlling body.

(2) The Registrar may similarly inquire into the conduct relating to the 
affairs of the society or of any member, officer or employees, past or 
present, of a registered society on the application of the present 
controlling or managing body of the society or liquidator, or any creditor, 
or any other registered society to which the society is affiliated or any 
contributory.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 419

(3) Upon such inquiry giving such member, officer or employee an 
opportunity of being heard and in the case of payment made contrary to 
the provision of this Act or rules or Bye-laws after affording such 
member, officer or employee time to recover the amount of such 
payment from the payee and credit it to the funds of the society, if such 
member, officer or employee fails to recover the amount then the 
Registrar may by an order in writing require such member, officer or 
employee to pay such sum with interest at such rate as the Registrar 
may direct, to the society by way of compensation in respect of such 
payment or loss or to restore such property as the Registrar thinks fit, 
and to pay such sum as the Registrar may fix to meet the cost of the 
proceedings under this section.

(4) Any award made by the Registrar under sub-section(3) shall be reduced 
to the form of a Cooperative Demand Certificate by the officer authorised 
to issue such certificates.

(5) This section shall apply notwithstanding that such member, officer or 
employee may by his act or omission have incurred in addition to 
criminal liability under this Act or any other law for the time being in 
force.

CHAPTER - XI

PENALTY

PUNISHMENT 
FOR FALSE 
RETURN,FALSE 
INFORMATION,DI 
SOBEYING 
SUMMONS, 
ORDER ETC.

PUNISHMENT
FOR DISPOSING 
PROPERTY IN 
CONTRAVENTION 
OF SECTION-61

104. If a registered society or an officer or member thereof or any liquidator/

(a) willfully makes a false return or furnishes false information or willfully 
neglects or refuses to do any act required by this Act or any rules or 
bye-laws or does anything contrary to this Act or any rules, or bye­
laws or fails to submit returns; or

(b) any person willfully or without reasonable excuse disobeys any 
summons, requisition or lawfully written order issued under the 
provisions of this Act or does not produce document or cash balance 
of the society or does not furnish any information lawfully required 
from him by a person authorised in this behalf under the provisions of 
this Act or fail to maintain up-to-date account, record and other 
documents of the society required to be maintained by him under this 
Act or rules or bye-laws he shall be punishable with fine which may 
extend to five thousand rupees, and in the case of a continuing 
offence a further fine of fifty rupees for each day on which the offences 
are continued after conviction thereof.

105. Any member, past member or the nominee, heir or legal representative of 
a deceased member removing or otherwise disposing of any property on 
which a registered society holds a charge under section-61 with intent to 
defraud the society or with such intents doing any other act to the 
prejudice of the society's charge, shall be punishable with fine which may 
extend to five thousand rupees.



420 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

PENALTY FOR 
CERTAIN 
MISDEMEAN - 
OURS

POWER TO 
ENFORCE 
PERFORMANCE 
OF OBLIGATIONS

COGNIZANCE OF 
OFFENCE

INDEMNITY

BAR TO 
JURISDICTION -  
CIVIL OR 
REVENUE 
COURTS

106. Where it appears to the Registrar that any person has contravened the 
provisions of this Act or rules or bye-law -

(a) by sitting or voting or exercising his rights as a member, or as a 
member of any managing or controlling body, or voting in the 
affairs of a registered society as a representative of another 
society which is a member of such society, when such person 
was not entitled so to sit, vote or exercise such rights, as the 
case may be ; or

(b) by utilising a loan for a purpose different from that for which it 
was granted.; the Registrar may, after affording such person 
an opportunity to be heard by an order in writing, direct him 
to pay to the assets of the society by way of penalty such sum 
not exceeding five thousand rupees as the Registrar thinks fit.

107. Notwithstanding anything contained in this Act, where any registered 
society is required to take any action under the Act, the rules or bye-laws 
and such action is not taken within the time provided in this Act, the rules or 
bye-laws or within such time as the Registrar may specify by a notice in 
writing where no time is so provided, the Registrar may call upon any officer 
of the society whom he considers to be responsible for carrying out the 
directions, and after giving such officer an opportunity to be heard may 
require him to pay to the assets of the society such sum not exceeding 
rupees five thousand as the Registrar may think fit for each day until the 
Registrar's directions are carried out.

108.(1)  No court inferior to that of a Magistrate of the first class shall try any 
offence under this Act.

(2) No prosecution for an offence under this Act shall be instituted without the 
previous sanction of the Registrar.

(3) Offences under this Act may be tried summarily.

CHAPTER-XII

JURISDICTION

109. No suit, proceeding or prosecution whatsoever shall lie against the 
Registrar or any person acting on his authority, or against any liquidator 
in respect of anything done or purporting to be done in good faith under 
this Act.

110. (1) Save as provided in this Act, no Civil or Revenue Court shall have any 
jurisdiction in respect of --

(a) registration of a society or its bye-laws or amendments of bye­
laws ; or

(b) the dissolution of a managing or controlling body and the 
management of the affairs of the society on dissolution thereof; 
or

(c) any dispute referred to the Registrar; or
(d) any matter in relation to the winding up and dissolution of a 

registered society.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 421

(2) Save as provided in this Act, no order, decision or award under this 
Act, or working of the affairs of a registered society shall be liable to 
be challenged, set aside, modified , revised declared void in any 
court on any ground whatsoever.

APPEAL OR
REVIEW

111. (1) Except where otherwise expressly provided to the contrary an appeal 
shall lie to the Registrar from the decisions made under this Act or rules 
framed thereunder by any Government officer, liquidator appointed under 
section 95.

(2) The Registrar may review any order passed by him at any time within 
sixty days from the communication of such order.

(3) Save as otherwise provided in this Act or rules, no appeal shall lie to the 
State Government against any order of the Registrar, except on a 
question of law, and provided such appeal is preferred within sixty days of 
the communication of such order

(4) Any appellate authority and the Registrar in case of review may pass any 
stay order pending any appeal or review before such an authority, and 
may award costs against any party appealing or petitioning for review if 
such appeal or review petition is considered false, vexatious or frivolous 
by the authority concerned.

(5) Notwithstanding anything contained in this Act where with the previous 
sanction in writing or on requisition by the Reserve Bank of India, a 
Cooperative Bank -

(a) is being wound up ; or

(b) in respect of which a scheme of amalgamation or re­
organisation is given effect, no appeal thereof shall lie or 
be permissible without the sanction or requisition of the 
Reserve Bank and that shall not be liable to be called in 
question.

POWER OF
ATTACHMENT OF
PROPERTY

112. Where the Registrar or such Gazetted officer as may have powers
delegated to him under section 114 is satisfied that any person holding 
property within his jurisdiction with intent to defeat or delay the execution 
of any order, under a Co-operative Demand Certificate for recovery of 
dues, or with intent to avoid payment of dues from such person under 
this Act, rules or bye-laws -

(a) is about to dispose of the whole or any part of such 
property ; or

(b) is about to remove the whole or any part of such 
property from the local limits of the jurisdiction of the 
Registrar or of such Gazetted officer, may unless 
adequate security is furnished ,as he may require, direct 
the conditional attachment of the said property or such 
part thereof as he thinks necessary, notwithstanding that 
the claimant or owner of the property may reside 
elsewhere, and such attachment shall have the same 
force and effect as if it had been made by a competent 
Civil Court and shall continue in force until withdrawn or 
cancelled.



422 THE ASSAM GAZETTE, EXTRA ORDINARY. FEBRUARY 4, 2012

REGISTRAR TO 
BE CIVIL COURT 
FOR CERTAIN 
PURPOSE

RECOVERY OF
SUMS DUE

113. The Registrar or any person empowered by him in this behalf shall be 
deemed, when exercising any power under this Act for the recovery of 
any amount by attachment or sale without attachment of any property or 
when passing any orders on any application made to him for such 
recovery or to take any step-in aid of such recovery, to be a Civil Court 
for the purpose of Article 182 of the First Schedule to the Indian 
Limitation Act, 1908.

114 (1) All dues recoverable under this Act or rules framed thereunder shall be 
reduced to the form of a Cooperative Demand Certificate, as in 
Schedule C over the signature of the Registrar or of such Gazetted 
Officers as may have powers delegated to them by the Registrar in this 
behalf and shall be recovered as an arrear of land revenue under Assam 
Land and Revenue Regulation, 1886 and shall be paid to the certificate 
holder or his authorised nominee. Such certificate shall be in the name 
of the claimant and shall be delivered to him.

(2) Notwithstanding anything contained in sub-section (1), all the said dues 
shall also be recoverable as public demand in accordance with the 
procedure laid down in the Bengal Public Demands Recovery Act, 1913 
on a written requisition sent to the certificate officer in the prescribed 
form over the signature of the Registrar or of such Gazetted Officer or 
officer of a cooperative society as may have powers delegated to him by 
the Registrar in this behalf.

Explanation . “The Certificate Officer” means the officer so defined in and the 
Prescribed Form, means the form so prescribed under the Bengal Public 
Demands Recovery Act, 1913.

(3) For the purpose of this section a member of an affiliated society shall be 
deemed to be a member of the affiliating society and loans due to the 
affiliated society shall be deemed also to be loan due to affiliating society 
to the extent that loans from the affiliating society to the affiliated society 
are outstanding and cannot be recovered from the affiliated society 
provided that not more than one demand certificate may be executed 
against a single loan.

(4) A copy of the Cooperative Demand Certificate prepared under this 
section shall be served in the manner prescribed upon the person from 
whom the amount is due.

(5) On receipt of a copy of the Cooperative Demand Certificate the person 
from whom the amount is due shall pay the same within a period of thirty 
days from the date of service of the certificate :

Provided that the period during which the payment is to be 
made may be extended by the Registrar for a period not exceeding 
thirty days for reasons to be recorded in writing.

(6} Any person violating the provisions of sub section(5) above shall, on 
conviction be punished with imprisonment of either description which 
may extend to six months or with fine which may extend to one thousand 
rupees or with both.

IX of
1908

Regula­
tion 1 of 
1886

Bengal
Act 111
o f  191t

Bengal *
Act 111 ’ 
of 1913.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 423

REGISTRAR MAY 
ORDER A 
MEETING OF 
CREDITORS

115. (1) Notwithstanding anything contained in this Act, where a compromise or 
arrangement is proposed between a registered society and its creditor or 
creditors or any class of them the Registrar, upon an application made 
by a registered society or by liquidator, in case of a society in respect of 
which an order has been passed for the winding up thereof, or by a 
creditor or creditors or any class of creditors may order a meeting of the 
creditors.

(2) If a majority number of creditors or the class of creditors, as the case 
may be representing claims to three-fourths of the debts due by the 
society to the creditor or class of creditors, at a meeting agree to any 
compromise or arrangement and and if the Registrar agrees to such 
compromise or agreement and gives his sanction then the compromise 
or the arrangement shall be binding on all the creditors or class of 
creditors and also on the society or on the liquidator in the case of a 
society in respect of which an order has been passed for the winding up 
thereof, and on all persons who may be required by the liquidator to 
contribute to the assets of the society.

PREVIOUS
SANCTION OF 
RESERVE BANK 
OF INDIA OR 
NABARD IN 
CERTAIN
MATTERS

SOCIETY TO BEA
BODY
CORPORATE

REGISTER OF
MEMBERS

ENTRIES IN 
BOOKS OF 
REGISTERED 
SOCIETY SHALL 
BE RECEIVED AS 
PRIMA FACIE 
EVIDENCE

CHAPTER -XII!

MISCELLANEOUS.

116. Notwithstanding anything contained in sections 12,13,14,15 in the case 
of a cooperative bank or an urban cooperative bank, no conversion, 
transfer, division, amalgamation, merger, dissolution shall take place 
save with the previous sanction in writing of the Reserve Bank of India, 
the National Bank for Agriculture and Rural Development Bank, as the 
case may be. Once a banking license is cancelled by the concerned 
authority, it is mandatory on the part of Registrar of Cooperative 
Societies to send it into liquidation.

117. Every registered cooperative society shall be deemed to be a body 
corporate by the name under which it is registered, with perpetual 
succession and a common seal, and with power to hold property, to 
enter into contracts, institute and defend suits and other legal 
proceedings and to do all things necessary for the purpose for which it 
was constituted.

118. Any register or list of members or shares kept by any registered society 
shall be prima facie evidence of any of the following particulars entered 
therein -

(a) the date on which the name of any person was entered in such 
register or list as a member, and

(b) the date on which any such member ceased to be a member.

119. (1) A copy of any entry in a book of a registered society, regularly kept in
the course of business shall, if certified by the Chairman or Secretary of 
the society, be received in any suit or legal proceedings as prima facie 
evidence of the existence of such entry and shall be admitted as 
evidence of the matters, transactions and accounts therein recorded in 
every case where, and to the same extent as the original entry itself is 
admissible.



424 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

SAVINGS OF
EXISTING 
SOCIETIES

(2) No officer or liquidator of a registered society and no officer in whose 
office the books of a registered 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 the contents 
of which can be proved under sub-section(l) or to appear as a witness 
to prove the matters, transaction and accounts therein recorded unless 
specially so directed by an order of the Court or the Arbitrator.

120. (1) Every society existing at the commencement of the Act which has been 
registered under the Cooperative Societies Act, 1949, shall be deemed 
to be registered under this Act, and its bye-laws shall, in so far as they 
are not inconsistent with the provisions of this Act, continue in force until 
altered or rescinded and shall to such extent be deemed to be registered 
under this Act.

(2) All appointment, rules and orders made, notification and notices issued, 
all transactions entered into and all suits and other proceedings 
instituted under the said Act shall continue and shall, so far as may be, 
deemed to have been respectively made, issued, entered into or 
instituted under this Act.

Assam
Act I of
1950

CONSTRUCTION 
OF REFERENCE 
TO ASSAM 
COPERATIVE 
SOCIETIES ACT, 
1949

ACT VII OF 1913
NOT TO APPLY

ACTS OF 
SOCIETIES, ETC.
NOT TO BE
INVALIDATED BY
CERTAIN
DEFECTS

121. All reference to the Assam Cooperative Societies Act, 1949 occurring in
any enactment made by any authority in India and for the time being in 
force in Assam shall in the application of any such enactment thereto , 
be construed as reference to this Act, and anything done, or any 
proceeding commenced in pursuance of such enactment on or after the 
commencement of this Act shall be deemed to have been done or to 
have commenced and to have had effect as in the reference in such 
enactment to the Assam Cooperative Societies Act, 1949 had been a 
reference to this Act, and no such thing or proceedings shall be deemed 
to have been invalid on the ground that such enactment did not refer to 
this Act.

122. The provisions of the Indian Companies Act, 1913 shall not apply to 
registered societies.

123. (1) No act of a registered society or of a managing or controlling body or
of any officer or liquidator done in good faith in pursuance of the 
business of the society shall be deemed to be invalid by reason only 
of some defect subsequently discovered in the organisation of the 
society or in the constitution of any such body or in the appointment or 
election of the officer or liquidator or on the ground that such officer or 
liquidator was disqualified for appointment.

(2) No act done in. good faith by any person appointed under this 
Act shall be invalid merely by reason on the fact that his 
appointment has been cancelled or in consequence of any order 
subsequently passed under this Act.

(3) The Registrar shall decide whether any act was done in good faith in 
pursuance of the business of a society.

Assam
Act I of
1950

Assam
Act I of
1950



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 425

POWER TO
ORDER
RECOUPMENT OF
EXPENDITURE

124 Notwithstanding anything contained in any other law for the time being in 
force the State Government may, by a general or special order, require 
every registered society or a class of registered societies to make 
contribution of such sum annually to be fixed by the Registrar towards the 
recoupment of administrative expenditure incurred by the Government in 
respect of inspection, supervision and guidance of a society or class of 
societies or of any service to such society or class of societies

SUPER-SESSION 
OF BOARD BY 
REGISTRAR

i-r -

125. If in the opinion of the Registrar the Board of a cooperative society is 
persistently making default or is negligent in the performance of the duties 
imposed on it by this Act or the rules or the bye-laws or has committed any 
act which is prejudicial to the interests of the society or its members, or 
has omitted or failed to comply with any directions given to it or that there 
is stalemate in the constitution or functions of the Board, the Registrar 
shall cause an enquiry under section 87 or an inspection under section 88 
and after giving the society an opportunity to state its objections, if any and 
after considering the objections, if received forward the enquiry/inspection 
report to the society for placing the report before the Annual General 
Meeting if due within 60 days from the date of receipt of the report by the 
society, or at a Special General Meeting to be convened specially for 
considering to take actions as suggested in the report under sub section 
(5) of section 87 and sub section (4) of section 88. If no action as stated 
above is taken by the society within the stipulated period the Registrar 
shall by an order in writing supersede the Board and appoint one or more 
administrators or an adhoc committee from the department to manage the 
affairs of the society for such period not exceeding three months as may 
be specified in the order which period may at the discretion of the State 
Government be extended from time to time:

Provided that the total period of extension in any case shall not 
exceed six months . Such appointed person shall call a special general 
meeting and shall elect a new Board within the above period

J*?WER TO SEIZE 
r '  -CORDS OF

SOCIETY

126. (1) If the Registrar or any person authorised by him in this behalf, while 
making audit, inspection, inquiry or supervision, as the case may be 
believe or has reason to believe that the registered society is not 
keeping or maintaining the accounts, books and records of the society 
properly or finds or reasonably suspects gross negligence of duties 
misappropriation or misuse of fund of the society irregularity in 
recording proceeding or keeping accounts or books he shall have power 
to take possession of any or all books, registers or documents, cash in 
hand or accounts books of the society and remove such seized property 
as may be directed by the Registrar.

(2) The person seizing the property of the society under sub-section(l) shall 
prepare an inventory of the properties seized in duplicate with his 
signature and require the officer or member of the society from whose 
possession or custody the property is seized to put his signature in 
witness thereof and if such officer or member refuses to sign, then the 
person seizing the property shall call upon two or more persons to sign 
the seizure list. A copy of the list prepared under this section signed by 
the witnesses .shall be delivered to the officer of the society.



4 26 THE ASSAM GAZETTE. EXTRA ORDINARY, FEBRUARY 4, 2012

POWER OF THE 
MANAGING BODY 
OF AN
AFFILIATING 
SOCIETY TO 
ENQUIRE INTO 
THE AFFAIRS OF 
A MEMBER 
SOCIETY

(3) The Registrar shall take immediate steps in such case for audit or 
inspection and pass such orders as he may think fit.

(4) The Administrative Head of a Civil Sub-division or administrative area 
shall give police help to all officers mentioned in sub-section(l) of this 
section when sought for.

127 When a registered society takes a loan from an affiliating society and 
defaults payment of the debt on any installment thereof any member of the 
managing body of the affiliating society, may examine and look into the 
accounts and working of such borrowing society and report the result of 
his inquiry or examination particularly with reference to the said loan to the 
affiliating society and may recommend any suggestion in his report. The 
borrowing society shall furnish such information and produce such 
documents, books and accounts as the member of the managing body 
may require.

LIMITATION 128. (1) Notwithstanding any of the provisions of the Indian Limitation Act, 1908, , ,  , 
the period of limitation for the institution of a claim to recover any sum, A  0 
including the interest thereon, due to a registered society by a member 
thereof shall be computed from the date on which such member dies or 
ceases to be a member of a society.

INFORMATION
AND RETURNS 
TO BE FILED 
WITH REGISTRAR

(2) The Indian Limitation Act,1908, shall not apply to any debts or liability X of 
due by any member, past member or deceased member to any society 1908 
in respect of which an order of dissolution has been passed under this 
Act.

A
129. (1) Every year within thirty days of holding of the Annual General Meeting,

the Board shall file the following information with the Registrar
(a) annual report of activities ;

(b) annual financial statements of accounts as audited with s
auditor's report thereon ; Y v

(c) statistical statements indicating name of the cooperative 
society, services offered by the cooperative society to the 
members, total number of members as on the last day of the 
financial year;

(d) Total liabilities expressed as-

(I) funds from members and surpluses;
ii) funds from other external sources as on the last day 

of the financial year;
(iii) quantum of rupees or services provided to members 

and non members, and surplus or deficit at the end 
of the financial year; and

(e) annual disposal of surplus or management deficit.

(2) Along with the returns specified in sub section (1) every cooperative 
society shall furnish the following information to the Registrar

(a) the date of Annual General Meeting at which the returns to be 
filed with the Registrar were considered or approved;



THE ASSAM GAZETTE, EXTRAORDINARY, FEBRUARY 4, 2012 427

(b) the total number of members on the rolls of the cooperative 
society who were eligible to vote on the date of such Annual 
General Meeting;

(c) the number of eligible members present at such Annual 
General Meeting ;

(d) list of names of Directors with addresses and terms of office :

(e) name and address of the internal auditor appointed for internal 
audit of the society for the current financial years accounts ;

(f) any other relevant and special information required by the 
Registrar to enable him to decide whether the cooperative 
society has conducted its affairs in accordance with the 
cooperative principles mentioned in Schedule A and the 
provision of this Act and the bye-laws.

(3) If the returns and information as specified under sub-section (1) and (2) 
are not filed or furnished to the Registrar within the period specified 
under sub-section (1) shall be treated as an offence under this Act and 
the Board shall be penalised in accordance with provisions of this Act.

„POWER TO
EXEMPT

'SOCIETIES FROM 
-THE OPERATION
OF THE ASSAM
MONEY LENDERS
ACT ■

POWER TO MAKE
RULES

130. The State Government may by a notification in the Official Gazette, exempt a 
registered society from any or all the provisions of the Assam Money 
Lenders Act, 1934 for the time being in force

REPEAL AND
SAVING

Assam
Act IV 
of 1934

131. (1) The State Government may, after previous publication, make rules for
carrying out the purpose and objects of this Act, and such rules may 
provide a penalty not exceeding five thousand rupees for a breach 
thereof.

(2) Every rule made under this section shall be laid as soon as may be after 
it is made before the Assam Legislative Assembly while it is in session 
for a total period of fourteen days which may be comprised in one 
session or in two successive sessions and if before the expiry of the 
session in which it is so laid or the session immediately following, the 
Assam Legislative Assembly agree in making any modification in the 
rule or the Assam Legislative Assembly 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 
anything previously done under that rule.

132. (1) The Assam Cooperative Societies Act, 1949, is hereby repealed.

(2) Notwithstanding such repeal, anything done, any action taken, any order 
passed by any authority or any penalty imposed under the said Act shall 
be deemed to have been done or taken under the corresponding 
provisions of this Act.

Assam
Act I of
1950



428 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

• SCHEDULE-A
(see section 4(1), 25)

COOPERATIVE PRINCIPLES

The co-operative principles are guidelines by which co-operative 
societies put their values into practice.

1st Principle : Voluntary and open Membership.
Co-operative societies are voluntary organisations , open to all 
persons able to use their service and willing to accept the 
responsibilities of membership, without gender, social, racial, 
political or religious discrimination.

2nd Principle : Democratic Member Control.
Co-operative societies are democratic organisations controlled by 
their members, who actively participate in setting their policies and 
making decisions Men and women serving as elected 
representatives are accountable to the members. In primary co­
operative members have equal voting rights (one member, one 
vote) and cooperative society at other levels are also organised in 
a democratic manner.

3rd Principle : Member Economic Participation .
Members contribute equitably to and democratically control, the 
capital of their cooperative societies. At least part of that capital is 
usually the common property of the co-operative. Members usually 
receive limited compensation, if any, on capital subscribed as a 
condition of membership. Members allocate surpluses for any or all 
of the following purposes : developing their co-operative societies, 
possibly by setting up reserves, part of which at least would be 
invisible, benefiting members in proportion to their transaction with 
the co-operative society, and supporting other activities approved 
by the members.

4th Principle : Autonomy and Independence.
Co-operative societies are autonomous, self-help organisations 
controlled by their members. If they enter into agreements with 
other organisations , including Governments,or raise capital from 
external sources, they do so on terms that ensure democratic 
control by their members and maintain their co-operative 
autonomy.

5th Principle : Education,Training and Information.
Co-operative societies provide education and training for their 
members, elected representatives, managers, and employees so 
they can contribute effectively to the development of their co­
operative societies.They inform the general public- particularly 
young people and opinion leaders - about the nature and benefits 
of co-operation.

6th Principle : Co-operation among Co-operatives Societies.
Co-operative societies serve their members most effectively and 
strengthen the co-operative movement by working together 
through local , national, regional and international structures.

7th Principle : Concern for Community.
Co-operative societies work for the sustainable development of 
their community through policies approved by their members.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 429

SCHEDULE-B  

(SEE SECTION 9)
Subject matter for specific consideration when framing bye laws.

1. Identity of the cooperative society.
(a) the name of the cooperative
(b) the village/town/city where the head office of the cooperative 

society is to be located
(c) the custody and use of the common seal
(d) the area of operation from where the membership is to be 

drawn.
2. Aim and services

(a) the aim of the cooperative society explicitly stated as a common 
need of the members which the cooperative society aims at 
fulfilling

(b) key service and support services to members to fulfil the common 
need stated in the aim

(c) the conditions under which services may be provided to non­
membership.

3. Membership
(a) eligibility .ineligibility for obtaining membership
(b) eligibility, ineligibility for continuing membership
(c) procedure for obtaining membership
(d) procedure for withdrawing membership
(e) procedure for termination of membership
(f) circumstances under which membership ceases
(g) procedure for cessation of membership

4. Member rights and obligations
(a) the rights of members
(b) manner of fixation of minimum performance expected annually of 

each member vis-^-vis use of services, financial commitment, 
participation in meetings and adherence to bye-laws ,in order to be 
eligible to exercise the rights of membership including the right to 
vote

(c) the consequences of performing below the minimum level fixed
(d) the consequences of default in payment of any sum due by a 

member.
5. General Body

(a) the role of the general body and of the delegate General body, if 
any, and subjects which must be dealt with by the general body, 
and by the representative general body, if any

(b) the manner and frequency of convening general meetings, the 
mode of communication of the intimation of these meetings and 
quorum required

(c) the minutes of proceedings of general meetings
6. Board of Directors

(a) The size and composition of the Board of Directors
(b) Eligibility, ineligibility for becoming director
(c) Eligibility, ineligibility for retaining directorship
(d) The procedure for election including the appointment of election 

officer, removal of directors, the election of the President, Vice 
President, and representative and filling of casual vacancy



430 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4. 2012

(e) The terms of office of the directors
(f) The frequency of board meetings
(g) The manner of convening board meetings, and quorum
(h) The functions, responsibilities and powers of the board
(i) The minutes of proceedings of board meetings
(j) The functions, responsibilities and powers of directors

7. Chief Executive and staff
(a) the person to sue or be sued on behalf of the cooperative society.
(b) the manner of appointment and removal of chief executive
(c) the functions, responsibilities and powers of the chief executive

8. Finances
(a) the financial year which the cooperative society wishes to adopt
(b) the manner of appointment of auditors and their duties
(c) the manner of appointment of internal auditors and their duties
(d) the nature and amount of equity capital, if any, of the cooperative 

society
(e) the maximum capital which a single member can hold
(f) the types and extent of funds to be raised
(g) the purposes for which the funds raised by the cooperative 

society may be applied
(h) the debt-equity ratio that the cooperative society wishes to 

maintain at all times, and the maximum external debt that a 
cooperative society wishes to permit itself at any point of time

(i) procedure for transfer of shares or interest by a member
(j) procedure for redemption of shares by the cooperative society
(k) procedure for transfer or payment of interest on death of member
(l) the nature and extent of the liability of the members for the debts 

contracted by the cooperative society
(m) the nature and extent of the liability of the directors for the debts 

contracted by the cooperative society
(n) the manner of disposal of funds if under liquidation

9. Secondary cooperative societies
(a) the rights, if any, which the cooperative society wishes to confer on 

any secondary cooperative society of which it is a member, and 
the circumstances under which these rights may be exercised by 
such secondary cooperative society

(b) the procedure of appointing and changing representative to 
secondary cooperative society.

10. Other matters
(a) the manner of making or amending bye-laws
(b) the manner of constitution and functioning of arbitration council 

along with the qualification of the members for settlement of 
disputes

(c) the manner of dissolution of the cooperative society
(d) the language in which the affairs of the cooperative society are to 

be conducted
(e) refunding of loan, guarantee, share capital, grant or subsidy 

received from Government
(f) other matters which the provisions of this Act requires to be 

provided by bye- laws.



THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 431

Schedule C
Form (see Section 114)

Cooperative Demand Certificate granted under Section 114(1) of the 
Assam Cooperative Societies Act, 2007
(To be realized as an arrear of land revenue by the authority within whose 
jurisdiction the judgment debtor’s property is situated)

Case no .____________ of 20
District/ sub- division 

In the matter of

Versus

«\r

(1) Whereas as a result of my enquiry I decide that a sum of
Rs................................    (Rupees.
..........................................................................................  ) by way of 
......................................................  under section 102 (1) of the Assam
Cooperative Societies Act, 2007 and a sum of
Rs....................................... ( Rupees ................................................... )
by way of interest upto..................... is/ are due from you and you have
not paid.

Or

Whereas .................................................... has made a
reference in writing to me complaining/ determining that a sum of Rs 
..................................  (Rupees................................................... ) by way 
of .......................................... under section ..............................  of the
Assam Cooperative Societies Act, 2007 and a sum of Rs. 
..................... (Rupees................................................................... ) by way 
of interest upto.............................  is/are due from you and you have
evaded payment of the same.

(2) And whereas a notice of demand calling on you to pay the dues within 
the specified time was served with notice to show cause.

(3) And whereas you have not paid up your dues specified in the notice.
(4) And whereas you have not submitted explanation/ your explanation is 

unsatisfactory.

(5) Now, therefore I under the authority of the sub section (1) of Section 
102/..................of the Assam Cooperative Societies Act, 2007 read with
the sub- section (1) of Section 114 of the Assam Cooperative Societies 
Act, 2007 do hereby order that the above mentioned sum of 
Rs.................................................................  (Rupees.............................).
Is due to the above named from you and that you will pay the amount 
with further interest on the principal sum at the rate of 
.......................................  percent........ per annum from 
...............................................  together with all cost till the date of 
realization of the above mentioned sum.



432 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012

(6) I further order that the title and interest of ...............................  in the
properties set out and described in the schedule below be soid as an 
arrear of land revenue under the provisions of Assam Land and 
Revenue Regulation Act, 1886 (Regulation I of 1886) and that, if the 
sale proceeds should be found insufficient to discharge the dues with 
subsequent interest at the above rate till the date of realization and costs 
in full .the balance be realized by attachment and sale of the other 
movable property of judgment- debtor as an arrear of land revenue

(7) Further take notice that if you fail to pay the amount as ordered above 
within a period of thirty days from the date of service of Certificate you 
shall also be liable to prosecution under sub section(6) of section 114 of 
the Assam Cooperative Societies Act, 2007 in addition to other 
measures for the recovery of the amount payable by you.

Schedule

Dated Guwahati/..............
The.........................

Registrar of Cooperative Societies, Assam

N.B. The irrelevant words/ portions may be struck off and the relevant entries 
may be made where necessary.

MOHD.A.HAQUE, 
Secretary to the Govt, o f Assam, 
Legislative Department, Dispur.

G uw ahatiP rin ted  and Published by the Dy. Director (P & S), Directorate of Ptg. & Sty. Assam, Guwahati-21. 
Ex. Gazette No. 115-600 + 300+10-4-02-2012.