About this act
- Jurisdiction
- Manipur
- Enactment date
- 1976-10-20
- Sections available
- Document reader
Available official languages and documents
Language labels follow official filenames or metadata. Unlabelled versions keep their source filename. Some versions are available as official files while readable text is being imported.
Official source document text
Text extracted from the official document. It may include schedules, forms and source footnotes. PDF layout and table alignment can differ.
Open document text
THE MANIPUB COOPERATIVE SOCIETIES ACT, 1975
(MANIPUR ACT N0. 14 OF 1976)
An
Act
e
to eomolidate and amend the law relating to Co-operative Societies.
od
BE it enacted by the Legislature of the State of Manipur'1n the
aC
Twentyseventh year of the Republic of India. as follow:——
di
CHAPTER I
In
PRELIMINARY
1. (1) This Act may be called the Manipur Co-operative Societies
Act, 1976.
Short title,
(2) It extends to the whole of Manipur. extent
and oomi
(3) It shall come into force on such date the Manipur Govern- monument .
ment may, by notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise requires—
Definitions;
(1) “Agricultural Marketing! Society” means a. society.
(9.) the object of Which is the marketing of agricultural produce
and the supply of implements and other requisites for
agricultural production, and
(b) not less than three fourths of the members of which are
agriculturists, or societies formed by agriculturists ;
(2) “Arbitrator” means a person appointed under this Act to
decide disputes referred to him by the Registrar or Registrar’a nominee
or Board of Nominees.
(3) “Auditor” means a. person appointed by the Registrar or
by a. society to audit the accounts of the society,
(3)A. “Board” means the Board of Management ofva society.
(4) “Bonus” means payment made in cash or kind, out of the
profits of a. society to a, member, or to :1. person who is not a member,
on the basis of his contribution (including any contribution in the
form of labour or service) to the business of the society, and in the
case of a farming society, on the basis both of such contribution and
also the value or income 01-, as the cn.an may be, the area of the
lands of the members brought twrcther for joint cultiVation as may
be decided by the society ;
(5) “Bye-laws” means bye-luws registered under this Act and
for the time being in force, and includes registered amendments of
such bye-Iaws ;
(6) “Central Bank” means a. Co-operative Bank, the objects of
Which include the creation of funds to be loaned to other Societies ;
(7) “Committee” means the Committee of management, or other
directing body, to which the management of the affairs of a society
is entrusted.
(8) “Company” means a. company as defined in the Companies
Act, 1956, and includes 3. Banking Company and also any Board,
corporation or other corporate body, constituted or established by any
Central, State or Provincial Act for the purpose of the development
of any industry- ;
e
(9) “Consumers’ ‘Society” means a society the object of-which
od
is—
(a) the procurement, production or processing, and distribution
aC
of goods, to, or the performance of other services for, its
members as 33180 other customers, and
di
(b) the distribution among its members and customers, in the
proportion prescribed by rules or by the bye-laws of the
In
Society, of the profits accruing from such procurement, pro-
duction or processing; and distribution ;
(10) “Co-operative Bank” means a. society registered under this
Act and doing the business of banking, as defined in clause (b) of
sub-section (1') of section ‘5 of the Banking Companies Act, 1949 ; ,
(11) "‘C’o-operative Year” means the year ending on the M
day of June or in case of any Society or clase of societies the accounts
of which are with the previous sanction of the Registrar, balanced on
any other day, the year ending on such day.
(12) "Dividend” means the amount paid, out of the profits of a.
soeiety, to a. member in proportion to the shares held by him -
(l3) “Farming Society” means a society in Which, with the object
of increasing agricultural production, employment and income and
the better utilisation of resources, lands are brought together and jointly
eultivated by .5111 the members, such lands (a) being owned by or leased
to the members (or some of them), or (b) coming in possession of the
society in any other manner whatsoever; ‘
(14‘) “Federal Society” means a. society—
(a) not lesa than five members of Which are themseiyes Societies ;
and ’
that the: mem-
(b) in Which the voting rights are so regulated
bers which are societies have not less than four fifths of
er of votes in the gener al meeti ng of‘ such
the total numb
soeiety ; ,
(15) “Firm” means a firm registered under the Indian Partnership
K '
Act, 1932 ;
y of the
(16) “General Society” means a society not falling, inlan
of this section ;
classes of societies defined by the other clauses
whichis
(17) “Housing Society” means a society the object of.
providing members with dwelling houses ;
under
(18) “Liquidator” means a personapjpointed‘ as liquidator
this Act ;
ttee or
(19) "goeal Authority” means Municipality, Town Commi
Uram Panehayztt :
cation for
(20) (a) “Member” means a person joining in an appli
the regist ration of a Oo-op erati ve Socie ty which is subse-
to membe r-
quently registered, or a,- person duly admitted
a nominal,
ship of a society after registration, and includes
e
associate or sympathiser member ;
od
holds jointly a
(11) “Associate Member” means a member Who
does not
share of a. society with others, but whose name
stand in the share certificate ; '
aC
member-
(c) “Nominal Member” means a person admitted to bye-
With
ship as such after registration in accordance
di
1aws ;
thises
(d) “SympathiSer Member” means a person who sympa ted
In
the aims and objects of the societ y and who is admit
by the society as such member ;
a. society .
(21) “Officer” means a person elected or appointed by a
,__.._-.,.,--
bye-laws ; and includes
to {my office of such society according to its
ent, Vice-P reside nt, Managing Director,
Chairman, Viee-Chairman, Presid
Board and any other '
Manager, Secretary, Treasurer, member ofthe
this Act, the» rules and the
person elected or appointed under
ions in regar d to the busine ss of such society.
bye-laws, to give direct
(22) “Prescribed” means prescribed by trules ;
which is
(23) “Processing Society” means a society the objects of
the processing of goods ;
of Which
(2L) “Producers’ Society” means a society the objects
goods or the colleet ive disposa l of
is the production and disposal of
the labour of the membe rs thereo f ;
(25) “Registrar” means a person appointed to be the Registrar
of Qo-opemtive Societies under this Act ; ’ '
of which. is
. _, (26) “Resources Society” means a society, the'object
s of credit, goods or service s required
the obtaining; for its member
by them ;
(27) “ 11.11108” means rules made under this Act ',
(28) “Society” means a‘Co-operetive Society registered, or deemed
to be registered, under this Act ;
(29) “Society with limited liability” means a society having th
liability of its members limited by its bye-laws ;
(30) “Society With unlimited liability” means a society the men-
bers of which are, in the event of its being wound up, jointly and
severally liable for and in respect of its obligations and to contribute to
any deficiency in the assets of the society ;
(31) “State” means State Govei'hment of Manipur ;
. (32) “Tribunal” means the Manipur Co-operative Tribunal cona-
tituted under this Act ;
. (33) “Working capital” means funds at the disposal of a. society
inclusive of paid up share capital, funds, built out of profits, and
money raised by borrowing and by deposits.
CHAPTER II
REGISTRATION
Registrar. 3. The State Government may appoint a. person to be the Registrar
e
of Co-operative Societies for the State ; and may appoint one or more
persons to assist such Registrar, and may, by general or Special order,
od
confer on any such person or persons all or any of the powers of the
Registrar under this Act. The person or persons so appointed to assist
aC
the Registrar and on whom any powers of the Registrar are conferred,
shall work under the general guidance, superintendenee and control of
the Registrar.
di
Societies 4. A society, which has as its objects the promotion of the
In
which may economic interests or general Welfare of its members or of the public, in
be registered
under this accordance with Co-Operative principles, or a society established with
Act. the object of facilitating the operations of any such society, may be
registered. . '
Provided that, no society shall be registered if it is likely to be
economically unsound, or the registration of which may have an
adverse efl'eet on the development of the Co-operative movement.
Registration 5. A Society may be registered with limited or unlimited liability.
with limited
or unlimited
liabilities.
Conditions 6. ( 1) No society, other than a. federal society, shall be registered
of registrar under this Act unless it consists of at least ten persons (each of
tion.
such persons being a member of a difl'erent family ), who are qualified
to be members under this Act and who reside in the area of operation
of the society.
(2) No society with unlimited liability shall be registered unless all
persons forming the society reside in the same town or village, or
in the same group of villages.
has at least
(3) No federal society shall be registered, unless it
five societies as its members.
ration
(4:) Nothing in this Act shall be deemed to effect the regist
y made before the comme nceme nt of this Act.
of any societ
(5) The word “limited” or “unlimited” shall be the last word
in the name of every society with limited or unlimited liability, as
the case may be, which is registered or deemed to be registered
under this Act.
8, the
Explanation :—For the purpose of this Section and Section
expression “memb er of a family ” means a wife, husban d,
father, mother, grand-father, grand-mother, step—father,
step-mother, son, daughter, step-son, stepdaughter,
grandson, granddaughter, brother, sister, half—brother,
half-sister, and Wife of brother or half-brother.
7. Notwithstanding anything contained in this Act the State Powers to
to
Govamment may by special order in each case, exempt subject exempt Io-
from any of cieties from
such conditions (if any) as it may impose. any society conditions
the requirements of this Act as to registration. as to regis~
e
tration.
od
8. (1) For the purpose of registration, an application shall be Application
be accomp anied for registra-
made to the Registrar in the prescribed form, and shall
The persons tion.
by four copies of the proposed bye-laws of the society.
aC
on Whose behalf such applica tion is made. shall furnish
by whom, or ar may
Registr
such information in regard to the society, as the
di
require.
In
(2) The application shall be signed—
(a) in the case of a society other than a federal society, by
at least ten persons (each of such persons being a member
of a difi'erent family), Who are qualified under this Act,
and _
s.
(b) in the case of a federal society, by at least five Societie
behalf of a society shall be
No signature to an application on
committee of
valid, unless the peracn signing is a member of the
such a. society, and is authori sed by the commit tee by resolution to
for registr ation of the society and
sign on its behalf the application
a copy of such resolut ion is append ed to the
its bye-laws; and
application.
d
9, (1) (a) If the Registrar is satisfied that a society has complie Registration
and that its propose d bye-
with the provisions of this Act and the Rules
thinks
laws are not contrary to this Act or to the Rules, he may, if he
the society and its bye-law s within six months from the date
fit register
of the receipt of the application.
(b) If the Registrar is unable to dispose of an application for
on,
registration within the period mentioned in the foregoing Sub-secti
he shall make report to the State Govt. Stating therein the reasons
direction
thereof ; and he shall thereafter act in accordance with such
as may be issued to him by the State Government.
q
(0) Where the Registrar rerSQS to register a proposed society
shall forthwi th commun icate his decision with reason thereof te-
1%
person making the application and if there be more than one, If-
person who has signed first thereon.
shall issue tn “1
(2) On the registration of a society, the Registrar
a certificate of Registration signed by him. ’
ction (2)5511
(3) A certificate of registration issued under sub-Se
be conclusive eviden ce that the societ y therei n menti oned is M3
been canceliai
registered unless it is provided that the registration has
reg!»
(4) The Registrar shall maintain a register of all societies
tered under this Act.
Evidence of 10. A certificate of registration signed by the Registrar, std"
Registration. be conclusi ve evidence that the society therein mentioned, is (1;?)
registered, unleSS it is proved that the registration of the society ha
been cancelled.
e
od
11. When, for the purpose of the formation, or continuance. ii
agriculturist or not
a society, any question arises whether a person is an
Power of
aC
society at
or whether any person resides in the area of Operation of the
Registrar. to
decide cer-
tain question, not, Such question shall be decided by the Registrar.
di
Classification 12. (1) The Registrar shall classify all societies into one or otha'
In
Such sub-
of societies. of the classes of societies defined in section 2, and also into
classes thereof as may be prescribed by rules.
after
(2) The Registrar, may for reasons to be recorded in writing,
to another , or from
the classification of a society from one class of society
interest and
one Sub-class thereof to another ; and may in the public
such terms and conditi ons as may thinkfit to impose, allow
subject to ng
belongi
any society so classified to undertake the activities of a society
to another class.
(3) A list of all societies so classified shall be published by the
Registrar every three years in such manner as the Manipur Government,
may from time to time direct.
be Valid
Amendment 13. (1) No amendment of the bye-laws of a Society shall
e of registr ation of an
of bye-laws until registered under this Act. For the purpos the
of the amend ment passed in
amendment of bye—laws, a. copy
of society.
ibed; at a genera l meetin g of the society? Shall be
manner prescr
forwarded to the Registrar.
(2) When the Registrar registers an amendment of the bye-iaws of
ent
a society, he shall issue to the Society a copy of the amendm
same is
certified by him, Which shall be conclusive evidence that the
duly registered.
(3) Where the Registrar refuses to register an amendment of the
order of refusal together
bye-laws of a society, he shall communicate the
with his reasons therefor, to the society.
7
Power to di-
an amenament of
14. (1) If it appears ‘to the Registrar that in the interest of rect amend-
sary or desir able ment of
the bye-laws of the society is neces
ty; in the manner prescribed, bye-laws.
such society, he may call upon the socie
as he may specify.
to make the amendment within Such time
dment Within the time
(2) If the society fails to make the amen
g the society an opportunity of
specified. the Registrar may, after givin
i3sue to the society a copy of
being heard register such amendment, and
by him, With effect from the “date of the
such amendment certified
er aforesaid. the bye-laws
registration of the amendment in the mann dingly ; and the bye.
ded accor
shall be deemed to have been duly amen
subje ct to appea l (if any) be binding on the
laws S0 amended shall,
society and its members.
Change of
at a general meeting,
15. (1) A society may, by reSOlution passed name .
change its name; but such
and With the approval of the Registrar. of the society, or of
obligation
change shall not affect any right or
edings pending before any
any of its members ; and any legal proce
nued by or against the society,
person, authority or court may be conti
under its new name.
, the Registrar shall enter
e
('4) Where a Society changes its name
and shall also amend the
od
socie ties
the name in its place in the register of
certificate of registration accor dingly.
aC
Change of
and the Rules, a
16. (1) Subject to the provision of this Act liability.
ment of its bye-la ws, chang e the form or extent
society may by amend
di
of its liability.
change the form or
(2) When a society has passed a resolution to
In
f in writing to all its
eXtent of its liability, it shall giVe notice thereo
thsta nding anyth ing in any bye-law or
member and creditors and notwi
shall, during a period
contract to the contrary, any member or creditor
such notice upon him, have
of one month from the date of serving of
his shares, deposits or loans.
the option of withdrawing
exercise his option
(3) (a) Any member or creditor Who does not
period Specifi ed in sub-section (2), Shall be deemed to have
Within the
assented to the change.
y, changing the
(b) An amendment of the bye-laws of a societ
or take efi'ect
form or extent of its liability, shall not be registered
until, either 2——
(i) all members and creditors have assented, or deemed
to have aSSented, thereto as aforesaid, or
(ii) all claims of members and creditors who exercise the
option given by sub-Section (2} within the period
specified therein: have been met in full or otherwise
satisfied.
_17. (1) A society may, with the previous approval of the Amalgama-
tion, transfer,
y of the members
Reglstrar, by resolution passed by two-thirds majorit division or
ing held 'for the 'pur-
present and Voting at a Special general meet
conversion of
‘ societies,
pose, decide :—
(a) to amalgamate with another society
;
(b) to transfer its assets and liabilitie
s, in Whole or part, to
any other society ;
(o) to divide itself into two or more
societies, or
(d) to convert itself into another class
of society ;
Provided that when such amalgamation
version, aforesaid, inVOlves, a , transfer, division or con-
transfer of the liabilities of a. Soci
any other society, no order ety to
on the resolution shall be pass
Registrar, unless he is satisfied ed by the
that :—-
(i) the society, after passing such reso
lution, has given notice
thereof in such manner as may
be prescribed, to all its
members, creditors and other
persons whose interest
are likely to be affected (hereinafter
referred to as “other interested perS , in this Section
e
Ons” ), giving them
od
the option, to be exercised within
one month from the
date of Such notice, of becoming mem
the new societies, or continuing bers of any of
aC
their membership in
the amalgamated or converted
society, or demanding
payment of their share or interest
or dues, as the
di
case may be,
(ii) all the members and creditors and
In
other interested
person, have asswted to the decision,
or deemed to have
assented thereto by virtue of any mem
or any other interested persons, have ber or creditor
assented to the .
decision, or deemed to have assented
thereto by virtue
of any member or creditor or
any other interested
person failing to exercise his option
within the period
specified in clau se (i) aforesaid, and
(iii) all claims of members and credi
tors and other inte-
rested persons, who exercise the
option within the
period specified, have been met in full
or otherwise
satisfied.
(2) Notwithstanding anything
contained in the Transfer of Pro-
perty Act, 1882,, or the Indian Regi
stration Act, 1908, in the event of
division or conversion, the registrati
on of the new societies or, as
the case may be, of the converte
d society, and in the event of
amalgamation, on the amalgamation .
the reSolutions of the societies con- ;
cerned with amalgamation, shell
in
to vest the assets and liabilitiesSof each case be sufficient conveyance f
the original Society or amalgama-
ting societies in the new societies
or converted or amalgamated Socie
as the case may be. ty,
(3) The amalgamation of societies,
or division or conversion of 3
a. society shall not affect any right
s or obligation of the societies
so
by or against the amalgamated socie
ty, or, as the case may be, the
converted society, or the new
societies,
(4) Where two or more societies have been amalgamated, or a
society has been divided or converted, the registration of such societies
or society shall stand cancelled on the date of registration of the
amalgamated society, or the converted society, or the new societies
between Which the society may have been divided.
Power to
18. (1) Where the Registrar is satisfied that it is essential in direct amal-
the public interest, or in the interest of the OO-operative Movement, gamation,
or for the purpose of securing the proper management of any society division and
that two or more societies should amalgamate or any society should be re-organisa-
tion in pu-
divided to form two or more societies or should be reorganised then blic interest
not withstanding anything contained in the last preceding section but etc,
subject to the provisions of this section, the Registrar may after con-
sulting such federal society as he thinks necessary provide for the
amalgamation, division or reorganisation of these societies into a single
society with such constitution, property, rights. interests and autho-
rities, and such liabilities, duties and obligations, as may be specified
in the order.
(2) No order shall be made under this section, unless :—
e
od
(a) a. copy of the proposed order has been sent in draft to the
society or each of the societies concerned ;
(b) the Registrar has considered and made such modifications in
aC
the draft order as may seem to him desirable in the light of
any suggestions and objections which may be received
di
by him within such period (not being less than two months
from the date on which the copy of the order as aforesaid
In
was received by the society) as the Registrar may fix in
that behalf, either from the society or from any member
or class of members thereof or from any creditor or class
of creditors. ,
(3) The order referred to in subsection (1) may contain such
incidental, consequential and supplemental provisions as may in the
opinion of the Registrar, be necessary to give effect to the amalgamation,
division or re-organisation.
(4) Every member or creditor of each of the societies to be
amalgamated, divided or re-organised, Who has objected to the scheme
of amalgamation, division or reorganisation, within the period specified,
shall be entitled to receive on the issue of the order of amalgamation
or reorganisation his share or interest if he be a member, and the
amount in satisfaction of his dues if he be a. creditor.
(5) On the issue of an order under sub-section (1), the provisions
in subsections (2), (3) and (4) of section 1'7 shall apply, to the societies
so amalgamated, divided or re-organised as if they were amalgamated,
divided or re-organised under the section, and to the society amalga-
mated,divided or re-organised.
19. Where a proposal for a compromise or arrangement :— Reconstruc-
tion of
societies.
(a) between a society and its creditors, or
10
(b) between a society and its members, is approved at a special
general meeting called for the purpose, the Registrar may, on
the application of the society or of any member or of any
creditor of the society, or in the case of a society whiehiis
being wound up, of the Liquidator, order reconstruction in the
prescribed manner, of the society.
Partnership 20. (1) Any two or more societies, may with the prior approval
of societies. of the Registrar, by resolution passed by three-fourths majority of the
members present and Voting at a general meeting of each such society
enter into partnership for carrying out any specific business, provided
that each member has had clear ten days’ written notice of their
re301ution, and the date of the meeting.
(2) Nothing in the Indian Partnership Act, 1932 shall apply to
such partnership.
Cancellation 21. The Registrar shall make an order cancelling the registration
e
of registra- of a society if it transfers the whole of its assets and liabilities to
another society or amalgamated, with another society, or divides itself
od
tio n,
into tWo or more societies or if its afi'airs are wound up, or it has not
commenced business within a reasonable time of its registration, or has
aC
ceased to function if :— he is satisfied, after making such enquiry as
he thinks fit that the society no longer has genuinely as its object one
di
or more of the objects Specified in section 4 and its registration ought.
in the interest of the general public, be cancelled. :The society shall,
In
from the date of such order of cancellation, be deemed to be dissolved,
andishall cease to exist as a corporate body.
CHAPTER III
Members and their rights and liabilities
Person who
may become 22. (1) Subject to the provision of section 24, no person 3113,11
member. be admitted as a member of a society except the following that is i
to say—
(a) an individual, who is competent to contract under the
Indian Contract Act, 1872 ;
(b) a firm, company or any other body corporate constituted
under any law for the time being in force, or a society
registered under the Societies Registration Act, 1860 ;
(c) a society registered, or deemed to be registered under this
Act ;
(d) the State Government ;
(e) a local authority ;
(f) a public trust registered under any law for the time being
in force for the registration of such trusts.
11
Provided that, the provisions of clause (a) shall not apply to an
individual seeking admission to a. society exclusively formed for the
benefit of students of a school or college ;
Provided further that, subject to such terms and conditions as may
be laid down by the State Government by general or special order, a.
firm or company may be admitted as a member only of a. society Which
is a. federal or urban society or Which conducts or intends to conduct
an industrial undertaking ;
Provided also that any firm or company, Which is immediately
before the commencement of this Act a. member of a society deemed to
be registered under this Act, shall have, subject to the other provisions
of this Act, the right to continue to be such member on and after such
commencement.
Explanation :——-For the purposes of this section, an ‘urban society’
means a society the business of which mainly falls within the limits of
a municipal corporation, municipality eantonment or notified area
committee.
Person! Who
(2) Money-lenders, traders and other persons Whose interests may not be
conflict with the interest of the Co-operative Institution shall not be member.
:wlmittcd ms member.
(3) In the case of Agricultural Credit Co-operative Institutions, Restriction
of member-
e
where a farm holding is in possession of a. Hindu Joint Family, only ship,
manager of such joint family and Where such holding is in the possession
od
of Co-tenants, only one such Co-tenant shall be eligible for membership
of such society and of a cultivating household only one adult member
aC
of the household shall be eligible for admission as member.
(4) Where a person is refused admission as a member of a, society Communica-
tion of deci-
di
the decision (With the reason therefor) shall be communicated to that sion re fusing
person Within fifteen days of the date of the decision, or Within three admission,
In
months from the date of receipt of the application for admission,
whichever is earlier.
Provided that Where no decision is communicated Within the
specified period, it shall be deemed that the admission has been refused.
23. (1) No society shall, Without sufficient cause, refuse admission Open mem—
to membership to any person duly qualified therefor under the provisions bersbip.
of this Act and its bye-laws.
(2) Any person aggrieved by the decision of a, society, refusing
him admission to its membership, may appeal to the Registrar.
, (3j The decision of the Registrar in appeal, shall be final and the
Registrar shall communicate his decision to the parties within fifteen
days from the date thereof.
24. (i) Notwithstanding anything contained in section 22, a. society Nominal,
may admit any person as a nominal, associate or sympathiser member. associate and
sympathiser
member.
(ii) A nominal or sympathiser member shall not be entitled
to any share In any form whatsoever in the profits or assets of the
1‘2
society as Such member. A nominal or sympathiser member shall ordi-
narily not have any of the privileges and rights of a member, but such
a member, or an associate member, may, subject to the provisions of
sub-seetion (8) of section 27,‘ have such p=~ivileges and rights and be
subject to such liabilities of a member, as may be specified in the bye-
laws of the society.
25. A person shall cease to be a member of a society on his
resignation from the membership thereof being accepted, or on the
transfer of the whole of his share or interest in the society to another
member, or on his death, or removal or expulsion from the Society.
No rights of 26. No person shall exerciSe the rights of a member of a society,
membership until he has made such payment to the Society in respect of membership,
to be exer-
cised till due or acquired Such interest in the society, as may be prescribed by the
payments rules, or the bye—laws of such society.
are made,
Voting 27. (1) No membor of any society shall have more than one
e
powers of vote in its affairs provided that, in case of an equality of Votes the
members. Chairman shall have a casting vote.
od
(2) Where a share of society is held jointly by more than one
person, only the person whose name stands first in the share certificate,
aC
shall have the right to vote.
(3) A society, Which has invested any part of its funds in the
di
shares of another society, may appoint one of its members to vote on
its behalf in the affairs of that other society; and accordingly
In
such member shall have the right to vote on behalf of the first
society.
(4) A company or any other body corporate constituted under any
law for the time being in force which has invested any part of its funds
in the shares of a society may appoint any one its directors or officers
to vote on its behalf in the affairs of such society; accordingly such
director or officer shall have the right to vote on behalf of the company
or body corporate.
{5) Where a firm has invested any part of its funds in the shares
of a. society, any one of its partners shall be entitled to vote in the afiairs
of the society on behalf of the firm.
(6). A local authority or public trust Which has invested any part of
its funds in the shares of a sceiety, may appoint any of its members or
trustees, to vote on its behalf in the affairs of that society ; and accor-
dingly such person shall have the right to vote on- behalf of that local
authority or the public trust, as the case may be.
(7) In the case of a federal society, the Voting rights of individual
members thereof shall be such as may b0 regulated by the rules made
under this Act and the bye-laws, of the society.
(8) ‘I'x'o nominal, associate or sympathiser member shall have
the right to vote.
Restrictions 28. In any society, no member other than the State Government
on holding of or any other society and agencies that may be authorised by the
shares.
State Government shall-—
(a) hold more than such portion of the total share capital of
the society (in no case exceeding one-fifth thereof) as may
be prescribed, or
(b) have or claim any interest in the shares of the society
exceeding five thousand rupees ;
Provided that the State Government may, by notification in the
()ll‘icial Gazette, specify in respect of any class of societies :1. higher
or lower maximum than one-fifth of the share capital or, as the case may
be, a higher or lower amount than five thousand rupees.
29. (1) Subject to the proviSion of the last preceding section as Restriction:
to the maximum holding of shares and to any rules made in this behalf, on transfer
3. transfer of, or charge on, the share or interest of a member in the share or charge 0 I)
share or
capital of a Society shall be subject to Such conditions as may be interest.
prescribed.
(2) A member shall not transfer any share held by him or his
interest in the capital or property of any Society, or any part thereof,
unless—
e
(a) he has held such share or interest for not less than
od
one year ;
(b) the transfer is made to a member of the society or to
aC
a person whose appiication for membership has been
accepted by the society.
di
(3) Notwithstanding anything contained in sub~Seciions (I) and
(2), where a. member is allowed to resign, or is expelled, or ceases to be a
In
member on account of his being disqualified by this Act or by the
rules
made thereunder or by the bye-Iaws of the society, the society may
acquire the share or interest of such member in the share capia’al by
paying for it at the Value determined in the manner prescribed, provided
that the total payment of share capital of a society in any financial
year for such purposes does not exceed ten per cent of the paid up share
mLpital of the society on the last day of the financial year immediate
ly
preceding.
Explanation :— The right to forfeit the share or interest of any
expelled .nember in the share capital by virtue of any bye-laws
of the
Hmsicty, shall not be affected by the aforesaid provision.
(1) Where the State Government is a member of a society the
wmriutions contained in this Section shall not apply to any transfer
nm'lu by it nfits share or interest in the capital of the society ; and
Hum, Howrnment may, notwithstanding anything contained in this
Act,
wil iulmw from the society its share capital at any time, after giving to
Hm mmiety notice thereof not less than three months.
:m, (1) On the death of a member of a society, the society Transfer of
shall trzuzehn- the share or interest of the deceased mem her to a person interest on
death of
or peramm n: minated in accordance With the rules, or, if no person
has member.
been so nominated, to such person as may appear to the eommite
e, to be
the heir or legal representative of the deceased member :
lzt
Provided that, such nominee, heir or legal represwtetive as the can
may be, is duly admitted as a member of the society ; ‘
Provided further that, nothing in this sub-section or in Section 2!
shall prevent a minor or a person of unsound mind from acquiring l.
inheritance or otherwise, any share or interest of a deceased member i
a society. .
(2) Notwithstanding anything contained in Snb-section (I), an
such nominee, heir or legal repreSentative, a=- the cafe may be, mu
require the society to pay to him the value of the share or interest 0
the deceased member, ascertained in accordance With the rules.
(3) A society may pay all other moneys due to the decease
member from the society to such nominee, heir or legal representatiw
as the case may be.
(4) All transfers and payments duly made by a society in accor
dance With the provisions of this section, shall be valid and efiectu
e
against any demand made upon the society by any other person.
od
U .
where or In-
31. The share or interest of a member in the capital of a societ
ter.“ not or in the loanstoek, issued by a housing society, or in the funds, raise
aC
liable to by way of savings deposit, shall not be liable to attachment or sale nnde
BWRChmOM- any decree or order of a Court for or in respect of any debt or liabilit
di
incurred by the member ; and accordingly .no person or authority unde
any law for the time being in force, shall be entitled to or have any
In
claim on, such share or interest. i
I
32. (1) Every member of a society shall be entitled to inSpect,i
Rights of
n; embers to free of cost, at the Boeiety’s office during office hours, or any time fixedl
see books etc”? for the purpose by the society, a copy of the Act, the Rules and thei
i bye-Iaws, the last audited annual balance sheet, the profit and loss
J account, a list of the memb era of the committee, a register of members“!
=the minutes of general meetings, minutes of committee meetingsi
'and thosa portions of the books and resurds in which his transactions
3
g with the society have been :60 nded.
(2‘ A society shall furnish to a member, on request in writing
and on payment of such fees as may be prescribed therefor, a copy of
any of the documents mentioned in the foregoing snb-section within one
month from the date of payment of such fees.
33. (1) Subject to the provisions of Subsection (2), the liability
Lia‘bflity 0' of a past member. or of the estate of a deceased member of a seeiety
past mem bet
and “ta“ for the debts of the society as they stood,—
i d d .
?mm‘fxse (a) .
1n the case of a past member, on the date on Which he
ceased to be a member, and
(b) in the case of a deceased member,on the date of his death,
shall, continue for a period of four yeats from such date.
(2) Where a. society is ordered to be wound np under any
provision of this Act, liability of a past member or of the
15
estate of a deceased member Who ceased to be aZmember 01' died,
Within tWo years immediately preceding the date of the order of
Winding up, shall continue until the entire liquidation-proceedings are
completed ; but such liability shall extend only to the debts of the
society as they stood on the date of his ceasing to be a member or
death, as the case be.
Insolvency
34. Notwithstanding anything contained in any law for the time of members,
being in force, the dues of a society from a member, in insolvency
proceedings against him, shall rank in order of priority next to the
dues payable by him to Government or to a local authority.
35. (1) A society may, by resolution passed by three-fourths Expulsion
majority of the members entitled to vote who are present at a general of members.
meeting held for the purpose, expel a member for acts Which are
detrimental to the interest or proper working of the society.
Provided that no such resolution shall be valid, unless the member
concerned is given an opportunity of representing his case to the
general body, and no resolution shall be effective unless it is approved
by the Registrar.
(2) No member of a society Who has been expelled under the
e
foregoing sub-section shall be eligible for readmission as a member
od
of that Society, or for admission as a member of any other society
for a period of one year from the date of Such expulsion ;
aC
Provided, the Registrar may, on an application by the society
and in special circumstances, sanction the re-admission 0r admiseion,
within the said period, of any such member as amember of the said
di
society 01‘ of any other society, as the case may be.
In
CHAPTER IV
INCORPORATION, DUTIES AND PRIVILEGES OF
SOCIETIES
Societies to
36. The registration of society shall render it a body corporate ‘be bodies
by the name under which it is registered, With perpetual succession and corporate.
a common seal, and With poWer to acquire, held and dispose of pro-
perty, to enter into contracts, to institute and defend suits and other
legal proceedings, and to do all such things as are necessary for the
purpose for which it is constituted.
Address of
37. Every society shall have an address, registered in accordance societies.
With the rules, to Which all notices and communications may be sent,
and the society shall send notice in writing to the Registrar of any
change in the said address, Within thirty days thereof.
Register 0!
38. (1) Every society shall keep a register of its members, and members;
enter therein the following particulars, viz.
(3,) the name, address and occupation of each member ;
(b) in the case of a Society having share capital, the share held
by each member ;
16
mber ;
per son was admitted as me
(0) the date on Which each
a member ;
y person ceased to be
(d) the date on Which an
may be prescribed ;
(e) such other particulars as -
under this Act, per
ed tha t, wh er e a society has by or to an y per son ,
Provid erest on death
ed a me mb er to tra nsfer his share or int nc er ne d the na me of
mitt mber co
o show against the me the date
the register shall als
share or intere st of the members, and
the person entitled to the was recorded.
tion
on Which the nomina dence of the date on
ll be prima-facie evi
p, and of the date on
(2) Th e Reg ist er sha
admitted to membershi
which any person was
a member.
Which he ceased to be address of the
iet y sha ll kee p, at the registered list
. 39. Ever y soc its bye—laWS, and a
Copy of
a cop y of thi s Act and the Rules and of cha rge , dur ing
Act etc. to Scele’oy public, free of
e
to inspection to the
be open to of members, open by the society thereon,
od
inspection. rs fix ed
office hours or any hou register or list,
co py of an y entry in any book, of a
40. (l) A d in the possession
Admissibi- course of business an
aC
rly ke pt in the y be pre scr ibe d, be
lity of copy regula in such manner as ma
of entry as du ly cer tifi ed ad mi tt ed
society, shall, if existence of the entry
and shall be
evidence. e in evi den ce of the ord ed in ev er y
ons therein rec
di
admissibl
evi den ce of the ma tters and transacti ori gin al ent ry wo ul d, if
as h the
same extent to whic
case Where, and to the
In
issible to prove such matters.
produced have been adm
te Government may by
eas e of suc h societies, as the Sta y legal
(2) ln the of a Society shall in an
l or spe cial ord er direct, no officer com pel led to pro duce
gen era
society is not a party, be
proceedings to Which the the contents of which can be proved under
any of the society’s
books, witness to prove the
on, or to appear as a
the foregoing sub-secti ounts therein rec ed,
ord unless by order of
tra nsa cti ons an d acc
matters,
for special cause.
the Court or a Judge made
on (1) of section 17
(b) and (c) of sub-secti
Exemption 41, Nothing in elauSe y-
ion Act, 1903, shall appl
from comv of the Indian Registrat iety, notwith-
pulsory re- rel ati ng to shares in a soc
y consist in Whole or in
gistration of y ins ti' ume nt
(a) to an of the societ
instruments standing that the assets ty ; or
relating to
shares and part of immovable proper
and not creating
debentures ued by any society
of society. (b) to any debentures iss uis hin g any right, title
ign ing , limiting or exting
dee lar ing , ass except in so far as
immovable property,
01‘ interest to or in a registered
the Security afi'orded by
it entitles the holder to society has'mortgaged, conveyed or
instrument whereby the its immovable
the whole or part or
otherwise transferred es up on trust for
erest therein to truste
property, or any int deb ent ure s ; or
ders of such
the benefit of the hol
of any debentures
an y en do rsem en t upon, or transfer
(c) to y.
issued by any societ
17
Power to
42. The State Government, by notification in the Official Gazette exempt from
taxation.
may, in the case of any society or class of societies, remit-
(a) the stamp duty With which, under any law relating to stamp
duty for the time being in force, instruments executed by
or on behalf of a society or by an officer or member
thereof, and relating to the business of the societymy
his
class oi such instruments, or awards of the Registrar or
nominee or board of nominee s under this Act are respecti vely,
chargeable.
law
(b) any fee payable by or on behalf of a society under the
relating to the registration of documents and to court fees,
for the time being in force, and
thereof )
(c) any other tax or fee or duty ( or any portion
for
payable by or on behalf of a society under any law is
ment
the time being in force, Which the State Govern
compete nt to levy.
Restrictions
rs
43. A society shall receive deposits and loans from membe on borrow-
such conditions, as insS.
and other persons, only to such extent, and under
e
of the society.
r‘: ay be prescribed or specified by the bye-laws
od
Restrictions
person
44. (1) A cO-operative society shall not make a loan to any on loans.
membe r ; provid ed that with a genera l or Special sancti on
other than a anothe r
aC
may make a loan to
of the Registrar, 3, Co-operative Society
co-operatiVe society.
(1), a co-
(2) Notwithstanding anything contained in sub-Section
di
his deposit on
operative society may make a loan to a depositor Within
In
its sec urity.
Restrictions
transactions of a society gon other tran-
45. Save as is provided in this Act, the sactions with
other than members, shall be subject to such restrictions,
with persons non-mem—
if any, as may be prescribed. bets.
st in Charge and
46. A Society shall have a charge upon the share or intere and of share or
deceased member,
the capital and on the deposits, of a member or interest of
payabl e to any such member in member.
upon any dividend, bonus or profits,
the society ;
respect of any debt due from Such member or his estate to
ed or payable to such
and the soeiety may set off any sum credit
member in or towards payment of any such debt:
upon
Provided that, no co-operative bank shall have a charge
the provident fund
any sum instead with it by a society out of ; and no co-
e fund
established by it under section 71, or its reserv
bank shall be entitl ed to set off any such sum towards any
operative
debts due from the society.
any other law Prior claim
47. (1) Notwithstanding anything (contained) in of society .
time being in force, but subjec t to any prior claim of Govern.
for the
rable as land
‘ment in respect of land, revenue or any money recove
revenue and to the provis ions of sectio ns 60 and 61 of the Code of
Civil Procedure, 19089
18
g to a society by
(8.) any debt or outstanding demand, owin shall be
member
any member or past member or deceased
a first charge,—
uce raised in
(i) upon to crop or other agricultural prod n
a loan take
Whole or in part Whether with or withoutmember or
from the society by such member or past
deceased member,—— ,
or indus-
(ii) upon any cattle, fodder for cattle, agricultural
raw mater ials for
trial implements or machinery, or
place of business,
manufacture, or workshop, godown or
er or past
supplied to or purchased by such memb
whole or in part, from
member or deceased member in
to him by
any loan Whether in money or goods made
the society, and
have been
(iii) upon any movable property Which may
pledg ed or otherwise mort gage d by a
hypothecated,
custody ;
member with the society, and remaining in his
e
payable to a socie ty by
(b) any outstanding demands or dues
od
ased memb er, in respe ct
any member or past member or dece any othe r right s
purc hase mone y or
of rent, shares, loans or
aC
shall be a first char ge
or amounts payable to such Society, of the society.
upon his interest in the immovable property
nt in respe ct of dues
Explanation—The prior claim of Govarnme the purpose of sub-
di
icted for
other than land revenue, shall be restr
member out of the funds in
In
section (1) to the 1[aSSets created by a
.
respect of which the Government has a claim , which is subject to a
(2) No property or interest in property be transferred in any
n, shall
charge under the foregoing sub-sectio
out the prev ious perm issi on of the society ; and such
manner with
condi tions , if any, as the society may
transfer shall be subject to such
impose.
n of snb-section (2) shall
(3) Any transfer made in contraventio
be Void. -
ained in sub-sections (2) and
(4) Notwithstanding anything cont osal of the produce
ts the disop
(3), a society, which has as one of its objec or may otherwise contract
ide in its bye-l aws,
of its members, may prov
with its member,s—
shall dispose of his produce
(a) that every such member
through the society, and
ty of a 2[breach of the
(b) that any member, who is found guil
l reimburse the society
bye—laws or of any such contract, shal
man ner as may be specified
for any loss, determined. in such
in the bye-laws.
d in this Act or in any
Charge on 48. Notwithstanding anything containe
immovable g in force,—
property of other law for the) time bein
members Amendments ‘ ipur Act No, 12
borrowing
d “ass ets” was subs tituted for the word "estate” by Man '
from certain 1, ' The wor
..of 1984, section 2(i). “branch” by Mampur Act
societies, substituted for the word
2 x The word “breach” was
(ii),
' No. 12 of 1984, section 2
19
(a) any person who makes an application to a society 'of
Which he is a, member, for a loan shall, if he owns any
land or has interest in any land as a tenant, makes
declaration in the form prescribed, such declaration shall
state that the applicant thereby creates a charge on such
land or in interest specified in the declaration for the pay-
ment of the amount of the loan which the Society may
make to the member in pursuance of the application and for
all future advances (if any) required by him which the
society may make to him as such member, subject to such
maximum as may be determined by the society, together
with interest on such amount of the loan and advances;
(b) any perSOn who has taken a loan from a society of which
he is a member, before the date of the coming into
force of this Act, and who owns any land or has interest
in land as tenant, and who has not already made such
a declaration before the aforesaid date shall, as soon as
possible thereafter make a declaration in the form and
to the efiect referred to in clause (a), and no such
person shall, unless and until he has made such declara-
e
tion, be entitled to exercise any right as a member of
od
the society ;
(e) a declaration made under clause (a) or (b) may be
Varied
at any time by a member, with the consent of the society
aC
in favour of which sueh charge is created ;
(d) no member shall alienate the whole or any part of
the
di
land or interest therein, specified in the declaration
made
under claUSe (a) or (b) until the whole amount, borrow
In
ed
by the member together with interest thereon, is repaid
in full ;
Provided further that, if a part of the amount borrowed
by a
member is paid, the General Financing Agency may, on
an application
from the members, release from the charge created under
the declara-
tion made under clause (a) or (b) such part of the movabl
e or immo-
vable property specified in the said declaration, as it may deem
proper,
with due regard to the security of the balance of the amount
remaining
outsta nding from the member ;
(e) any alienation made in 1[contravention of the provisi
ons of
clause (d) shall be void ;
(f) subject to the prior claim of the GOVernment in respec
t
of land revenue or any money recoverable as land revenu
e,
and to the charge ( if any ) created under an award made
under any law for the time being in force in any part
of the
State, there shall be a first charge in favour of the society
on the land or interest specified in the declaration
made
under clause (a) or (b) for and to the extent of
the dues
owing by him on account of the loan.
Amendments ’
l. The word “contravention” was substituted for
the word “contravent” by
Manipur Aot12 of 1984. See. 3.
20
(g) and in particular, notwithstanding anything contained i
the Manipur Land Revenue and Land Reforms Act, 1
or any corresponding law for the time being in force, h“
Records of Rights maintained thereunder shall also inelab
the particulars of every charge on land or interest creed
under a declaration under clause (a) or (b)
Explanation— For the purpose of this section, the eXprem't-
“society” means—
(i) any reSOurce society, the majority of the membersi
which are agriculturists and the primary object of which
is to obtain credit for its members, or
(ii) any society, or any class of societies, specified in this
behalf by the State Government, by a general or special
order.
49. (1) A member of a. society may execute an agreement in
e
Deduction
from salary favour of the society provided that his employer shall be competent to
od
to meet so- deduct from the salary or wages payable to him by the employer, such
ciety’s claim
in certain amount as may be Specified in the agreement, and to pay to the society
the amount so deducted in satisfaction of any debt or other demand of
aC
case.
the society against the member.
(2) On the execution of such agreement, the employer shall, if
di
so required by the society by a requisition in writing, and so long as
the society does not intimate that the whole of such debt or demand
In
has been paid, made the deduction in accordance with the agreement,
and pay the amount so deducted to the society, as if it were a part of
the wages payable by him as required under the payment of Wages
Act, 1936 on the day on which he makes payment. '
(3) If after receipt of a requisition made under the foregoing sub-
section, the employer at any time fails to deduct the amount specified
in the requisition from the salary or wages payable to the member
concerned, or makes default in remitting the amount deducted to the
society, the employer shall be personally liable for the payment thereof ;
and the amount shall be recoverable on behalf of the society from
him as an arrear of land revenue and the amont So due shall rank
in priority in respect of such liability of the employer as a wage in
arrears.
(4) Nothing contained in this section Shall apply to persons
employed in any railways (within the meaning of the Constitution), and
in mines or oil fields.
CHAPTER V
STATE AID TO SOCIETIES
Direct party 50. The State Government may subscribe directly to share capital
s as
nership of of a society with a limited liability, upon such terms and condition
State Govt. may be agreed upon.
in societies;
21
51. The State Government may, under appropriation make bye- Indirect part-
nership of
Iaw, provide moneys to society for the purchase directly or indirectly State Govt.
of shares in other societies With limited liability, (A society to Which in Societies.
moneys are so provided for the aforesaid purpose is hereinafter in this
Chapter referred to as an ‘Apex Society”).
52. (1) An Apex Society which is provided With moneys as Principal
state
aforesaid shall, with such moneys, establish a, Fund to be called the Partnership
“Principal State Partnership Fund”. Fund.
(2) An Apex Society shall utilise the Principal State Partnership
Fund for the purpose of——
(a) directly purchasing shares in other societies With limited
liability ;
(b) providing moneys to a, Society to enable that society (herein-
after in this Chapter referred to as a “Central Society") to
e
purchase shares in other societies with limited liability (the
od
latter societies being hereinafter in this Chapter referred to as
‘ Primary Societies”).
aC
(0) making payable to the State Government in accordance with
the provisions of this Chapter ;
and for no other purpose.
di
53. (1) A Central Society Which is provided with money by an Subsidiary
In
. Apex Society from the Principal State Partnership Fund shall, with Sta to
Such moneys, establish a Fund to be called the “Subsidiary State Pat tnership
Fund.
Partnership Fund”.
(2) A Central Society shall utilise the Subsidiary State Partnership
Fund for the purpose of—-
(a) purchasing shares in Primary societies ;
(b) making payments to the Apex Society in accordance With the
provisions of this Chapter ;
and for no other purpose.
54. Shares shall not be purchased in a society from the moneys Approval of
in the Principal State Partnership Fund or the Subsidiary State State Go-
Partnership Fund, except With the previous approval of the State vernment for
Government. for purchase
of shares,
55. Where any shares are purchased in a society by— Liability to
be limited in
(a) the State Government ; or respect of
certain
shares, Part-
(b) an Apex Society from the Principal State or a, Central Society nership Fund,
from the Subsidiary State Partnership Fund, as the case
may be ;
22
the liability in respect of such shares shall, in the event of the soder
of Which the shares are purchased is wound up, be limited to fit
amount paid in respect of such shares.
Restriction 56. An Apex Society which has purchasad shares in other societ'n
on amount
of dividend. from the moneys in the Principal State Partnership Fund, and a Cental
Society which has purchaSed shares in Primary societies from
th
moneys in the Subsidiary State Partnership Fund, shall be entitled
only to such dividend on the said shares as is declared by
the society
concerned and is payable to other share holders of that society.
Indemnity
of Apex and 57. (1) If a society in which shares are purchased from the
Central Principal State Partnership Fund is wound up, or is dissolved. the
Societies. State Government shall not have any claim against the Apex Society
which purchased the shares in respect of any loss arising from such
purchase ; but the State Government shall be entitled to any moneys
received by the Apex society in liquidation proceedings or on dissolution,
e
as the case may be.
od
(2) If a society in which shares are purchased from the Subsidi
ary
State Partnership Fund is wound up or dissolved, neither the State
aC
Government nor the Apex Society shall have any claim against the
Central Society Which purchased the shares, in respect of any loss arising
from such purchase; but the Apex society shall be entitled to
di
any
money received by the Central society in liquidation proceedings
or on
In
dissolution, as the case may be, and such moneys shall be credite
d to
the Principal State Partnership Fund.
Disposal of 58. (i) All moneys received by an Apex society in respect of
share capi-
tal and
shares of other societies purchased from the moneys in the Principal
dividend etc. State Partnership Fund on redemption of such shares, or by way of
dividend or otherwise, shall be credited to that Fund.
(2) All moneys received by a Central society in respect of shares
of Primary Societies purchased from the moneys in the Sn bsidiary State
Partnership Fand on redemption of such shares, or by way of dividends
or otherwise, shall in the first instance be credited to that fund, and
then transferred to the Apex society Which shall credit them to the
Principal State Partnership Fund.
(3) All moneys and dividends referred to in sub—section (1) and
(2) shall, notwithstanding that the shares stand in the name of the
Apex society or the Central society, as the case may be, be paid to the
Sate Government.
(4) Save as provided in sub-section (3), the State Government
shall not be entitled to any other return on the moneys provided by
it to an Apex society under section 51.
Disposal of 59. (1) If an Apex society Which has established a Principal
principal or State Partnership Fund is wound up or dissolved, all moneys to the
subsidiary
state part- credit of, or payable to that Fund, shall be paid to the State Government.
nership fund (2) If a Central society Which has established a Subsidiary State
on winidng
up of Apex Partnership Fund is wound up or is dissolved, all moneys to the Credit
or Central of or payable to that Fund shall be paid and credited to the Principal
society, State Partnership Fund, from Which it received moneysunder clause
(b) of sub-section (2) of Section 52.
23
60, Any amount to the credit of a Principal State Partnership Principal or
Fund or a Subsidiary State Partnership Fund Shall not form part subsidiary
State Part-
of the assets of the Apex society or the Central society as the case nership Fund
may be. not to form
part etc.
61. Subject to the foregoing provisions of this Chapter— Agreement
by State
(a) the State Government may enter into an agreement With Govt, and
an Apex Socie-
Apex society setting out the terms and conditi
ons on ties.
which it shall provide moneys to the Apex society for the
purpose specified in Section 51.
(b) an Apex society may, with the previous approval of the
State Government, enter into an agreement with a Central
society setting out the terms and conditions on Which it shall
provide moneys to that Society from the Principal State
Partnership Fund for the purp08e specified in clause (b) of
sub-section (2) of section 52.
62. Notwithstanding anything contained in any law for the time
e
Other forms
being in force, but subject to such conditions as
od
the State Govern- of State aid
ment by general or special order may specify in this to societies.
behalf, the State
Government may—
aC
(a) give loans to a society ;
(b) guarantee the payment of the principal of debentures
di
issued by a. society, or of interest thereon, or both,
or the
repayment of the share capital of the society to its membe
r ;
In
or the payment of dividend thereon at such rate as
may
be Specified by the State ;
(c) guarantee the repayment of loans given by a. Co—ope
rative
Bank to a society ;
(d) guarantee the repayment of the principal, and payment
of
interest on, loans and advances given by the Reserv
e Bank
of India, or the Industrial Finance Corporation of
india, or
any other authority constituted under any law for
the time
being in force ; or
(e) provide financial assistance, in any other form
(including
subsidies), to a society.
63. The provisions of sections 51 to 61 (both inclusive) in
this
Chapter shall have efl‘ect notwithstanding anything inconsistent therewi Provisions of
contain in any other law for the time being in force. th this Chapter
to override
other laws.
CHAPTER VI
PROPERTY AND FUNDS OF SOCIETIES
64. No part of the funds, other than the net profits
shall be paid by way of bonus or dividend,
of
a society
or otherwise distributed Funds not to
amon its memb
g ers ; be divided.
24
Provided that, a member may be paid remuneration on such
Scale as may be laid down by the bye-laws, for. any services rendered
by him to the society.
Appropria- 65. (l) A society earning profit, shall calculate the net profit by
tion of pro- deducting from the gross profits for the year, all accrued interest
fits.
which is overdue for more than six months, establishment charges,
interest payable on loans and deposits, audit fees, working expenses
including repairs, rent, taXes and depreciation, and after providing
for or writing off bad debts and losses not adjusted against any fund
created out of profits. A society may, however add to the net profits
for the year, interest accrued in the preceding years, but actually
recovered during the year. The net profits thus arrived at, together .
with the amount of profits brought forward from the previous year,
shall be available for appropriation.
(2) A society shall appropriate its profits to the reserve fund or
any other funds, for payment of dividends to members on their 2
shares, for contribution to the educational fund of the State Co-operative
e
Union Which may be notified in this behalf by the Registrar, for
od
payment of bonus on the basis of support received from members and 3
persons Who are not members to its business, for payment of
aC
honoraria, and towards any other purpose which may be Specified j
in the rules or bye-laws.
Provided that no part of the profits shall be appropriated except
di
With the approval of the annual general meeting and in conformity
With the Act, Rules and Bye-laws.
In
66. (1) Every society Which does, or can, derive a profit from its
transactions, shall maintain a reserve fund.
Reserve
Fund. (2) In the case of a Resource or Producer’s society at least
one-fifth of the net profit of the Society each year, and in the case of -
any other society at least one-tenth of the net profits of the society each
year, shall be carried to the Reserve Fund; and such reserve fund 3
shall not be used in the business of the society or may, subject to
the provisions of section 70, be invested, as the State Government may
by general or special order direct, or may, With the previous sanction ‘
of the Registrar, be used in part for some public purpose likely to
promote the objects of this Act, or some such purpose of the State, or
of local interest.
Butrictions 67. No society shall pay dividend to its members at the rate
on dividend.
exceeding 9 per cent.
Contribution 68. 1[(1) Every society shall contribute annually towards the
to sduca.‘ Education Fund of the Manipur State Co-operative Union which may
be notified in this behalf by the State Government at such rate as
tional fund
of the State
Co-operative _ may be prescribed and different rate may be preScribed for different
Union, societies or classes of societies depending on their financial conditions]
’[(2) Every society shall pay its contribution to the said fund,
within two months ,from the date on which its accounts are adopted
Amendments
1 and 2. These sub-sections of section 68 were substituted by Manipur Act 12 of ‘
1984, see. 4, (1) and (2). . .
25
by the general meeting, Any officer wilfully failing to comply with
the requirement of this section shall be personally liable for makinggood
the amount to the Manipur State Oo-operative Union,”]
69. After providing for the reserve fund as provided in Section 66, Contribution
and for the educational fund as provided in section 68, a Society may to public
set aside a sum not exceeding twenty 'per cent, of its net prefitsand purposes.
utilise, with the approval 'of the State» Cesoperative Union as may be
notified by the State Government in this behalf from time to time, the
‘whole or part of such sum in contributing to any Co-operative purpose,
or any charitable purpose within the meaning of section 2 of the
Charitable Endowments Act, 1890 or to any other public purpose.
70. A Society shall invest or deposit its funds in one or more of Investment
of funds.
the following :—
(a) in a Central Bank, or the State Co-operative Bank ;
(b) in any of the securities specified in section 20 of the Indian
e
Trustee Act, 1882 ;
od
(c) in the shares, or security bonds, or debentures issued by
any other society With limited liability ;
aC
(d) in any banking company, approved for this purpose by the
Registrar, and on such conditions as the Registrar may
from time to time impose ;
di
(e) in any other mode permitted by the rules, or by general or
In
special order of the State Government.
71. (1) Any society may estabiish for its employees a provident Employees’
fund, into Which shall be paid contributions made by its employees and provident
fund.
by the society. Such provident fund shall not be used in the business
of the society, nor shall it form: part of the assets of the society ; but
shall be invested under the provisions of the last preceding section, and
shall be administered, in the manner prescribed.
(2) Notwithstanding anything contained in the foregoing subsection
a provident fund estabiished by a society to which the Employees’ Pro-
vident Fund Act, 1952 is applicable shall be governed by the Act;
CHAPTER VII
MANAGEMENT OF SOCIETIES
72. Subject to the provisions in this Act and the Rules, the final Final an -
authority of every secie‘ty shall vest in the- general body of members in thority of
a general meeting, summoned in such a manner as may be specified in society.
the rules and the bye-I—aws. _
'73. The management ofevery society shall: vest in. a Board consti‘ The am:-
tuted in accordance With this Act, the rules and bye«laws, Which shall and unctianl
exercise suehipowers and perform such; duties as may be. _eonferred-- or of the Board.
imposed byfthis Act. the rules: and-thebyex-laws.
26
Term 0‘ i (2). The BOard Will. have a term of three years from the date of
ofl‘ice.
assuming charge of then office. No member can hold office beyond
two terms consecutively. This provision Will not apply in the case of
i. Governmentnominees :
Provided that the term of a Board may be extended by general
i
i
or speclal order of the Registrar 1[till fresh elections are held by the
ions are made by the Registrar under sub-section (4).
ii sooiety or nominat
Election of _ (3) efore one month of the date of expiry of the terms mentioned
the members / insu ction (-), the Co-operative Society shall call an annual general
of the Board meeting to elect members of the Board of management and thereupon
on the
/ the members so elected shall assume the charge of their office
expiry of the term of theretiring Board : ~ "
t 'Provided that ‘the election ’of the members of the Board of
management shall be conducted by an independent body or authority
and
\ constituted by the Registrar in the manner prescribed in the rules
e
b. laws.
od
the
$133313 ”[(4) If the society fails to call the general meeting to elect
ed in sub-section (2), the
hem of the members of the Board of management as provid
bye-laws
Registrar may nominate Such persons as under the rules and
aC
Board. of management
are qualified for being elected as members of the Board
rs of the
and the members so nominated shall replace the elected membe
di
Board of management on the expiry of their terms.
the society
The Board so nominated Will manage the afi'airs of
In
order, Which period may, at the discretion
for a period specified in the
; so, however, that the
of the Registrar, be extended from time to time
the aggregate.”]
. ' tal period does not exceed two years in
Constitution society shall be
. 73.A. (I) The Board of management of the
of the Board.
er of members as may be Specified by the
constituted with such numb
rules and bye-laws :
scheduled tribe
Provided that the members of the scheduled caste,
d in the Board by
and small farmers shall proportionately be represente
w<~<-vn.»..;-w....... “luau“.mA M.
be presc ribed in the rules and
reservation of seats in the Board as may
bye-laws: ,
employees and workers
Provided further that the representatives of
shall] be included in the
'[of the concerned oo-operative institution
rules and bye-l aws.
Board as may be provided in
‘[(2) Where the State Government—
)
entation of
(a) has assisted indirectly in the formation or augm
the share capital of a society, or
co-operative
(b) has subscribed to the share capital of a
society, or
Amendments
word "will" by Man, Act 12 of 1984, .
The word "til ” was substituted for the _
Peer
sec. 5. . "
Words in the same snb—seetion of the
These words Were substituted for thesec. 5 (4),
principal Act by Man. Act 12 of 1984,’
"may” by Man. Act 12 of1984, sec, 6(i)
Those words were substituted for the wordMan. Act 12 o! 1984, see. 6(ii). .
(2) This subsection was substituted by
27
(c) has guaranteed in repayment of principal and payments
of interest on loan and advances to a co-operative society,
the State Government or any authority specified by it in this
behalf, shall have the right to nominate to the Board, GOVernment
officials expert in the line (of the activities of the cooperative societies)
to the extent of one third of the total number of its members or thlee
members whichever is less:
Provided that the nominees of the State Government or of the
financing bank or other cooperative institutions shall not be entitled to
vote at election.]
1[(3) No person shall, at the same time, be a member of the
Board of more than one society of the same type or category and more
than three societies of different types or categories.]
“[(4) No person shall be eligible for being elected or appointed or No defaulting
continued as a member of the Board or any committee if he is in default member or
in repayment or payment to any society, including co-operative ban 1;, the surety of
a defaulter is
in respect of any loan or any sum due from him either as borrower or eligible to
surety for a period exceeding three months and no member of the Board hold office in
or committee who has ceased to hold office as Such under this sub- the Co—op.
e
Institution.
secution shall be eligible for a period of one year from the date on Which
od
he ceaSed to hold office, for re-election or appoinment as member of
the Board or, as the case may be, committee of that society or for
election or appointment to the Board or committee of any other
aC
society. ”]
'74. The qualifications for the appointment of a Manager, Secretary,
di
Appoint-
Accountant or any other officer of a society shall be such as may from ment of
time to time, be prescribed. Manager,
In
Secretary and
other office
(2) The State Govt may nominate a Government servant not bearers.
below the rank of class—II officer to work as Managing Director]
General Manager/Manager as the case may be of a Co-operative Ins--
titution wherein the State Government have contributed to its share
capital, guaranteed loans to the tune of Rs. 3,i= lakhs (Rupees three lakhs)
or above or if the society has incurred loss to the extent of 25 p.11.
of its paid up capital. The officer so nominated shall be deemed to
be on deputation With the society and his salary and allowance as deter-
mined by the State Government shall be paid from the fund of‘ the
society. The. officer- 80 'deputed shall be the ex-offioio member of the '1-
Board and shall have the right to vote. The officer shall be the Chief
Executive Officer of the society and have the following assignments ;
amongst others: «—
(a) I‘o have general ‘[cont-rol ovar the administration of the
society.
(b) To eonVen'e meetings of the management Board and General
Body. "“
I Amendments
1. & 2, (3) and (4) These sub-sections were substituted by Man. Act 12 of 1984,
section 6 (ii)
3. The word was inserted by Man. Act 12 of 1984, see. '7 (i).
28
(c) To receive all moneys and «securities on behalf of the society
and to make arrangements for the proper maintenance and
custody of cash balance and. other- properties m“ the
institution, 7
('d‘) To endorse and transfer promissory notes, Government seen:
rities and to endorse, sign and negotiate cheque and other
negotiable instruments on behalf of the institution.
(6) To be responsible for the conduct, supervision and manage;
ment of the day to day business and 1'[tran8aetion of the
sxociety=
(f) To sign all deposits, receipts and operate the accounts of
_ . thesooiety with banks.
(g) To sign bonds, and agreement in favour of the society:
(h) To determine the powers, duties and responsibilities of the
, employees of the society.
(i) To institute, ?[eonducm defend compound or abandon any
suit or other' legal proceedings by or against the society or
e
otherwise concerning the affairs of the society and also to
od
compound and allow time for payment or satisfaction of
any claims or demand by or against the society:
aC
(j) Subject to the regulations if any, Which may be framed by
by the Board to enter into negotiations and Sanction coma
tracts the value of Which may be determined by the Board
di
from time to time,
In
(k) To delegate all or any of the said powers to an employee
or employees of the society subject to the ultimate control
and authority being retained by him.
Constituition
of common (3) The Registrar may constitute a common cadre authority/Soeiety
service per. or maintaining cadres of personnel for employment asSeeretaries/Mana.
sonnel of ger-s/other- paid-employees of the Co-operative Institutions,
co-operative
Institution;
Annual
general 75. (1) Every society shall, Within a period of threemonths from
mee ting, the closeof the» co-operative year call an annual general meeting of its
members : ‘ «3
Provide that, the Begis ar, may by general or special order, extend
the period 1- holding such eetings for av’further period not exceeding
three mo he: i
Provideil further that if in the {pinion of the Registrar, no'such
extension is necessaryfiorsuch rnee’tifi/gfi—0is not called by the society within
the period specifiettt or Within tf‘éxtended period, if any, granted by
31mm, the Registgefif or any 996011 authoriSed by him may eall§sueh
"’ "H Amendments
1: The Word “transaction” was s11bstituted“for the word‘"ettention” by Maniptir
Act 12 of1984, sec. 7 (ii).
2. The word “conduct” ayes substituted for the word "conduce” by Menipur
Actl? Of 1984, sec. ’7, (iii).
29‘
meeting in the man prescribed, and that meeting shall be deem
be a general meet' g duly called by ed to
the society.
(2) At every annual general meeting of
lay before the society a balance sheet and society, the Board shall
profit and loss account for
the year in the manner, prescribed by
the
special order for any class or classes of socie Registrar by general or
ties.
Explanation :1—- In the ease of a society
not carrying on business
for profit, an income and expenditureaceou
socie
nt shall be placed before the
ty at the annual general meeting inste
ad of profit and loss account;
and all references to profit and
loss account, in this Act shall
construed in relation to
such society as references, resPeetive be
the “income OVer expenditure” and ly to
income”. “excess of expenditure over
'
(3) There shall be attached to every
balance sheet laid before
the society in the general meeting, a
report by its Board, with
respect to (a) the state of the society’s
afi'ai
any, which it proposes to carry to any rs; (b) the amounts, if
e
balan
reserve either in such
ce sheet, or any specific balance sheet
od
; and (c) the amounts,
if any, which it recommends, shoul
d be repaid by way of dividend,
bonuS, or honoraria to honorary workers.
The Boar
d’s report shall also
aC
deal with any charges, Which have
occurred during the year for
Which the accounts are made up
in the nature of society’s» business.
The Board’s report shall be signed
di
by its Chairman 'or any other
member authorised to sign on behal
f of the Board as may be
prescribed by the rules and the
In
bye-laws.
(4:) At every'annual general meet
and loss account, the auditor’s repo ing, the balance sheet, the profit
rt and the Board’s report, shall
be placed for adoption, and such
other business, including consi-
deration and review of loan given to
near relatives and other employee
membersof theBoard and their
s of the society fortaking 01' direc
to take action to recover any ting
due in ease-of resource society
transacted as may be laid down in the bye-laws Will be
notice has been given. and of Which due
(5) If default is made,
in calling a.general meeting with
pericd,('or, as the case may be,‘ in. the
eub-seem , ' Xprescribed under
fim g), (3.) or (4), the
Registrar may by order declare,
to any officer or member of the
Board whose duty it was
to call such a meeting to com
sub-sections (2), (3) or (4), and ply with
who without reasonable excu
to com ply with any of the aferesaid' se failed
subsections disqualified for bein
perimi not exeeeding three year
s, as he may specify in such an
and, 1f the officer is a servant to order
the society, impose. penalty on’
an amount not exceeding one hun him to
dred rupees. Before making an
under this sub-section the
Registrar order
a reasonable opprtunity to shall give, or cause to be give
the peracn concerned of sho n, L
against the action proposed wing cause
to be taken in regard to him.
30
(6) Any penalty imposed under sub-section (5) or under the next
succeding section, may be recovered in the manner provided by the
Code of Criminal Procedure, 1973, for the recovery of fines imposed
by a Magistrate, as if such fine was imposed by the Magistrate
himself.
1[(7) No defaulting member or his surety, who is in default in
payment of any loan or payment of any sum due to any society,
including co-operative bank, for a period exceeding three months shall
be entitled to vote in the general meeting of the society, including co-
operatiVe bank, and no such peracn shall be eligible to be a member of
the Board or committee of anyeo-operative institutions.”]
Special gene- 76. (1) A special general meeting may be called at any time
ral meeting.
”L... by the Chairman or by a majority of the Directors and shall be
called within one month--—-
(i) on a, requisition in writing of one-fifth of the members of
e
the society or of members the number of which is specified
od
in the bye-laws for the purpose, whichever is lower, or
(ii) at the instance of the Registrar ; or
aC
(iii) in the case of a society, which is a member of a federal
society. at the instance of the Board or Committee of such
Federal Society.
di
(2) Where any officer or a member of the Board, Whose duty it was
In
to call such a. meeting, the Registrar may by order declare such officer
or members disqualified for being a member of the Board for such period
not exceeding three years, as may specify in such order!; and if the
a. penalty
officer is a. servant of the society he may impose on him
not exceeding one hundred rupees. Before making an order under this
le
sub-section, the Registrar shall-give, or cause to be given a reasonab
'opportunity to the person concerned of showing cause against the action
proposed to be taken in regard to him.
(3) If a. special general meeting of a society is not called in
accordance With the requisition referred to in sub-seetion (1) the
Registrar or any persan authorised by him in this behalf, shall have
power to call such meeting, and that meeing shall be deemed to be a
meeting duly called by a. Board.
(4) The Registrar shall have poWe: to order that the expenditure
incurred in calling a. meeting under snb-section (3), shall be paid out
of the funds of the society or by such persons who, in the opinion
of the Registrar, were responsible for the refusal or failure to convene
the meeting.‘ - '
77. (1) No act of the society or cominittee or any officer done
Act of socie~ in good faith in pursuance of the business of the society shall be deemed
ties etc. not to
to be invalid by reason only of some'defect subsequently discovered in
the organisationpf the smiety,‘ or. in- the constitution of the Board, 01‘
be invalidated
by certain
defects. in the appointment or electionvof an offi‘eer, or on the ground that such
officer was disqualified for his office.
A Amendment
of the
1. These words were substituted for the words in the same sub-section
Principal Act by» Manipur Act 12 of 1984, sec. 8. 9.
2. The words "of the time” were omitted by Man. Act 12 of 1984, see.
31
(2) No Act done in good faith by any person appointed under this
Act, the rules and the bye-laws shall be invalid merely by reasons-of
the fact that his appointment has been cancelled by or in consequence
of any order Subsequently passed under ‘ this Act, rules and the
bye-laws. ' ' ‘
(3) The Registrar shall be the authority to decide if any act was
done in good faith in pursuance-of the business of the society ; and his
decision thereon shallbe final.
‘
78. (1) If, in the opinion, of the Registrar, the Board of any\ Supersession
society persistently makes default, or is negligent, in the performance '3 0f Bwrd-
of the duties imposed on it by this Act ‘or the Rules of the bye-laws,
or commits any act Which is prejudicial to the interests, of the Society
or its members, or Wiilfully disobeys directions issued by him for' the
purposes of securing proper implementation of Co-operative production;
and other development programmes approved or undertaken by Govern-sfi
ment, or is otherwise not functioning properly, ,the Registrar may, after
giving the Board an opportunity of stating its objects, (if any). Within
e
fifteen days from the date of issue of notice by order in writing remove
od
the Board, and :—-
iv" (a) appoint a Board, consisting of three or more members of the
aC
society, in its place, or
y appoint one or more administrators, Who need not be members
di
of the society, to manage the affairs of the Society for a. period
(not exceeding 'two years) specified in the order. Which period
In
may, at the discretion of the Registrar, 'be extended from time
to time, so however that the total period does not exceed
f 111' yeers in the aggre ate. W
(2) The Board or administrator so appointed shall, subject to the
control of the Registrar and to such instructions as he, may from
time to time give, have power to exercise all or any of the functions of
the Board or of any officer of the society, and take all such action as
may be required in the interest of the Society. '
(3) If at any time during any period, Wfiended ~1;_e1'iod]referred
to in sub-section (1;, it appears to the Registrar, that it is no longer
neceSSary to continue to'carry on the affairs of the society as aforesaid,
the Registrar, may by an order published in the Official Gazette, direct
that the management shall terminate ; and on such order being made,
the management of the Society shall be handed over to a new Board
duly constituted.
(4) The Committee or administrator shall, at the expiry or termi-
nation of its or his terms of office. arrange for the constitution
of a.
new Board in accordance with the bye-Iaws of the society.
(5) A11 acts, done or proposed to be done by the Commi‘tee
or
administrator during the period the affairs of the society carried
on by
the Committee or administrator appointedflunder. subséctionzu
), shall
be binding on the new Board; ' I '
32,
Board of ma-
nagemeat (6) The entire Board of Directors of a Central Co-operatve Bank,
automatic Urban Co-operati-ve Bank and Primary Land Development Bank and
disqualifica- Primary Agricultural Credit Co-operative Society shall stand
tion. automa-
tically disqualified if the amount of default or the total number of de-
faulters exceeds 60 13.0. of the total demand or the total number of indeb‘
ted societies/membere in the case of Central Co-operative Bank,
Urban
Co-operative Bank and 70 p. c. of the tote} demaind/or the total number
of indebted members in'the case of primary Agricultural credit co-ope:
rative Societies for a. continuous period of 2 (two) years.
(7) On being discovered or declared to be disqualified under
sub-section (6).
The Registrar shall appoint a Speeial officer who should be charged
with the responsibility for managing the affairs of such Banks/Primary
Society as long as is necessary but not exceeding 2 (two) years.
The officer. appointed in‘ the Bank or in the society shall be Vested
e
with the powers of Registrar under section 156'in respect of individual
od
defaulters at the primary level.
If the position of the overdues of the institutions whose manage-
aC
ment is entrusted to the special officer does not improve even after the
tenure of two years, the management of the institution shall not be res.
di
tored to the elected representative and alternative intstitutional arrange-
ment should be made for the provision of agricultural credit and the
In
tenure of the office of the special officer may be extended by one year.
Necessary arrangement should be made for liquidation of the society
and for extension of the area. of an adjoining viable society so
as to enable the. latter to meet the credit needs of the non-defaulters and
new members from the area or the Bank may by-pass the society and
may undertake to finance the cultivators directly through its branch.
Registrar's (8) ‘All the Cooperative Institutions registered are to submit
power to
enuul the pro- proceedings of the general body, Board of management and any other
ceedings of committees and subcommittees to the Registrar, Oo-operetive Societies
,
Co-cpez‘ative Manipur within 15 (fifteen) days from the date of the meeting. If in
Institution.
the opinion of the Registrar there is anything in the proceedings which
is contrary to the provisions of the Act and Rules and the bye-laws
of
the society. he may annul such proceedings by an order in writing
but
of course he Ihall issue a show cause notiee to the concerned officer or
the Board etc,
Power to 1['78.A. Notwithstanding anything contained in this Act, if
suspend or
dissolve the
the State Government on receipt of a report from the Registrar,
existing Board Co-operative Societies or otherwise is satisfied that- the manage-
or to recons- ment of a. Society has not been in accordance with the provisions
titute a new
Board,
of the Act and creditors of the societies have, for justifiable reasons,
raised repeated objections to the method and manner of the manage
ment and further that, the management of society, if allowed to
continue as Such may likely cause irreparable loss and injury to the
Amendment
1: Section 78A was inserted newly by Manipur Act 7 of 1985, see: 2_
society and the public in general, the State Government may, by a.
notification in the Official Gazette susgengiihgmfiqard for a period not
not exceedingfli2 months at a time and (three years in the *WhOlBQOI'
dissolve the Bohrd: 6‘ ’ ““vW‘yw ’ V ' '
where
Provided that When the Board is suspended or dissolved, or
term of such a Board becomes expired, the State Government may
appoint as Adminstrator to exercise and perform the powers and duties
of the Board during the period of suSpension 01- till a new Board is
reconstituted as the case may be.]
Registrar’s
’79. (1) The Registrar may direct any Society or class of Rocietiee, power to en-
to keep proper books of accounts with Teepeet to all sums of money force perfor-
received and expended by the society and the matters, in respect of mance of
obligations.
Which the receipt and expenditure take place, all sales and purchases
of goods by the society, and the assets and liabilities of the society,
and to furnish such statements and returns and to produce such records
as may be required from time to time ; and the officer or officers of the
Society shall be bound to comply with his order within the period
e
specified therein.
od
(2) Where any society is required to take any action under this
Act, the rules or bye-iaws, or to comply with an ordervmade under the
aC
foregoing sub-section and such action is not taken :—
(a) within the time provided in this Act, the rules or the
di
bye-laws, or the order, as the case may be, or
(b) where no time is so provided, within such time, having
In
regard to the nature and extent of the action to be taken as
the Registrar may specify by notice in writing, the B egistrar
may himself, or through a person authorised- by him, take
such action, at the expense of the society ; and such expense
shall be recoverable from the society as if it were an arrear
of land revenue.
(3) Where the Registrar takes action under sub-section (‘2), the
Registrar may call upon the officer or officers of the society, whom he
considers to be responsible for not cemplying with the provisions of
this Act, the rules or the bye-laws, or the order made under subsec-
tion (1), and, after giving Such officer or officers an opportunity of being,
e
heard, may require him or them to pay to the society the expenSe
their
paidbr payable by it to the State Government as a result of
failure to take aetion anti to pay to the assete of the society such sum
not exceeding twenty-five rupees as the Registrar may think fit, for
each day until the Registrar’s directions are carried out.
80. (1) Where the Registrar is satisfied that the books and Registrar’s
power ~.to
records of a society are likely to be suppressed, tempered with or seize recotde
destroyed, or the funds and property of a Society are likely to be etc.
misappropriated or misapplied, the Registrar or the person antheriised
by him may apply to therEXecutiVe Magistrate within whose jurist
diction the society is functioning for seizing and taking posseseienof the
records and property of the society.
34
(2\ On receipt of an application under sub-subtion (1), the
Magistrate may authorise any police offier, not below the rank of
a Sub-lnspector, to enter and search any place where the recerds and
property are kept or likely to be kept, and to seize them and hand
over possesion thereof to the Registrar or the person authorised by
him, as the case may be.
CHAPTER VIII
AUDIT, ENQUIRY, INSPECTION AND SUPERVISION
Audit, 81. (1) The Registrar shall audit, or cause to be audited by a
person authorised by him by general or special order in writing in this
behalf, the accounts of every society at least once in a year.
(2) The audit under the foregoing sub-section shall include an
examination of overdue debts, if aay, the verification of the cash
e
balance and securities, and a. valuation of the assets and liabilities of
the Society.
od
(3) The Registrar or the person authorised shall, fix the purpose
of audit, at all times have access to all the books, accounts, documents,
aC
papers, securities, cash and other properties belonging to, or in the
custody of the society, and may summon any person in possession or res-
di
ponsible for the custody of any such books. accounts, documents,
papers, securities, cash or other properties, to produce the same at any
In
place either at the headquarters of the society or any branch thereof.
(4) Every person Who is, or has at any time been, an officer or
employee of the society, and every member and past member of the
society, shall furnish such information in regard to the transactions
and working of the society as the Registrar, or the person authorised
by him, may require.
(5) The auditor appointed under sub-section (1) shall have the
right to receive all notices, and every communication relating to the
annual general meeting of the society and to attend such meeting
and to be heard thereat, in respect of any part of the business with
which he is concerned as auditor.
(6) If it appears to the Registrar, on any application by a society
or otherwise, that it is necessary or expedient to te—audit any account of
the society, the Registrar may, by order provide for such re-audit and
the provisions of this Act applicable to audit of account of the society
shall apply to such re-audit.
Rectification 82. 1f the result of the audit held under the last preceding section
0’5 defeats in disclosed any defects in the working of the society, the society shall
accounts.
0
Within three months from the date of the audit report, explain to the
Registrar the defects or the irregularities, pointed out by the auditor
and take steps to rectify the defects and to remedy irregularities and
report to the Registrar, the action taken by it, thereon. The Registrar
35
may also make an order directing the society or its officers to take such
action, as may be specified in the order to remedy the defects, within the
time specified therein.
83. (l) The Registrar may, of his own motion, by himself, or by a
Inquiry by
person duly authorised by him in writing in this behalf, hold an inqulry Registrar.
into the constitution, working and financial conditions of a society.
(2) The Registrar shall hold such an inquiry—
(a) on the requisition of amember society in the case of an
affiliating society, or
(b) 011 the a pplication
, b y the majority of the members of the
Board of the somety, or
(e) on the application of one-third of the members of the society,
or
(d) on the requisition of the creditors repreSenting half of the
borrowed capital of the society.
(3) (a) All officers, members and past members of the society in
respect of which an enquiry is held, and any other person who, in the
opinion of the officer holding the inquiry is in possession of informa-
e
tion. books and papers relating to the Society, shall furnish such infor-
od
mation as is in their possession,and produce all books and papers relating
to the society which are in their custody or power and otherwise give to
aC
the officer holding an inquiry all assistance in connection with the
inquiry which they can reaSOnably give.
di
(b) If any such person refuses to produce to the Registrar or any
person authorised by him under sub—section (1), any book or papers
In
which it is his duty under clause (a) to produce or to answer any
question which is put to him by the Registrar 01' the persan authorised
by the Registrar in pursuance of sub-elause (a) the Registrar or the
person authorised by the Registrar may certify the refusal and the
Registrar, after hearing any statement Which may be olfered in defence,
punish the defaulter With a. penalty not exceeding five hundred rupees.
Any sum imposed as penalty under this section shall on the application
_ by the Registrar or the person authorised by him, to a Magistrate
having jurisdiction, be recoverable by the Magistrate as if it were a fine
imposed by himself.
(4) The remit of any inquiry under this section shall be commu-
nicated to the society whose affairs have been investigated.
(5) It shall be eempetent for the the Registrar to withdraw any
inquiry from the officer to whom it is entrusted, and to hold the inquiry
himself 01' entrust it to any other person as he deems fit.
84. 1[(1) The Registrar may, of his own motion or on the appli-
cation of a creditor of 'a society inspect or direct any person, Inspection
of books of
authorised by him by order in writing in this behalf, to inspect books, indebted
cash and other property of the society : society.
Amendments
1, The subsection was substituted for the Subsection (1) of section 84 by
Menipur Act No. 12 of 1984, sootions 10. (l), ' '
36%
made on the application
Provided that no such inspection shall be that a debt is
Begistrar
of a creditor unless the applicant satisfies the
dema nded yaym ent thereof and has not
still due to him and that he has
received satifaetion Within a rezieenable time]
results of" any such
3[(2) The Registrar ehali eemmunieate the
inSpeetion,—~
his awn motion, to the
(a) where the insyection is made of
society ;
applicatien 03" a credi~
{b} Where the inspeetion is made on the
tor, to the crediter and the society.”]
trar to Withdraw any
{3) It shall be competent for the Regis
it is entrusted, and to
nrder 0i inSpeetieu from the officer to whomn as he deems nt.
inspect himself er entrust it te any other Eersj
r section 83 or an insPeetion
Costs of in- 85. (1) Where an inquiry is iaeis} unde
e
the Registrar may apportion
quiry and is made under the East preceding section;
od
impaction. coast s, as he may think just between the
the cost or such part of the
g the inquiry or inspection,
society, the members or creditors demandin
memb ers or past members or the
the officers or former officers and the
aC
society ;
estates of the deceased members of the
Provided that ~~—
di
shall be made
(a) no order 'of *[apportinnment of the costs or the legal
perso ns
In
this section, unless the
under societ y or
pay the costs
representative of the deceased person liable to
or has or have had
thereunder, has or have been heard,
a reasonable opportunity of being heard ;
(b) the Registrar shalll state in writing the grounds on Which
the costs are apportioned.
be incurred,
(2) No eXpenditure from the funds of a society shall
in. suppor t of any appeal
for the ,piirpese 0f defraying any ensts order made
than the societ y agains t an
preferred by any person other
under the forego ing sub-se ction.
preceding
Recovery of 86. Any sum awarded by way of costs under the last
tion by the Registr ar to a
003 ts, section, may be ieeevered, on any applica
ction in the place where the person from Whnm
Magistrate having jurisdi
is elaimab le ??mides er carries on busines s, and such
the money
same manner
Magistrate shall proceed to recover the same in the
as if it were a fine imposed by himself.
tegistrar to 87. (1) If the result of any inquiry held under section 83 or an
bring defects section 84 discloses any defects in tho
disclosed in . inepection made under
inquiry or Amendments
by Manipur
inspection to This subsection was substituted fer sub-section (2) ef section 84
notice of Act 12 of 1984, sec.10, (2).
ment”
society. 9
a. The Word “apportionment” Was substituted for the word “appoint
by Menipur Act 12 of 1984, See. 11.
‘1
C)":
01' the books of a snciety,
constitution, working anti financial condition
notice of the society. The
the Registar may bring such defects t0 the
order direct ing the societ y or its officers to
Registar may alse make an defects,
to remedy the
take such action as may be syeeifieai in the order
within the time syeeified therein.
the date
(2) The society concerned may, Within sixty days from
subsection,
the foregoing
of any order made by the Registar under
appeal again st it to the State Government .
ing the agipeal, annui,
(3) The State Government may, in decid
reverse, modify 0?; confirm, the order of the Regist rar.
sed in the course
(4:) If a society fails to rectify the defects disclo tiiy the
81 or fails te-rec
0f 01‘ as a. result of an audit under seetien
where no appea l has been made
defects as directed by the ItVt:‘istrai‘, and
t0 the State Government Within the time specified in sub—seetion (3)
has not annuled,
or where on the appeal so 1’: ade the State Governi‘nent take steps
reversed or modified the order, the Registrar may himseii‘
the costs i’mm the officer
to have the defects rectified, and may recover
his opinion, has or have failed to
e
or officers of the society Who, in
rectify the defects.
od
an audit under
88. (1) Where in the course of or as a result of Power of the
n 83 or an inspec tion under section
section 81 or an inquiry under sectio
aC
Rigistar to
of a Society , the Regist rar is satisfi ed en the basis asfless dama-
8% or the winding up
ised to make
of the repett made by the auditor or the person author
ges against
delinquent
di
books
inspect the
inquiry under section 83 or the person authorised to promoters,
n 84 or the liquid ator under sectio n 105 0: otherwise that etc.
under sectio
In
ovgani sation or management
any person who has taken any part in the
ed or past 0‘6 {aresen t officer of the saceity
of the society or any deeeas
audit, inquiry,
has Within a neriod of five years prior to the date of such
inepeetion, or order for Windinv up, miSapp lied 01' retain ed or become
table for, any money or breach of trust in relation to
liable or accoun
him in that behalf
the society, the Registrar 0:- person authorised by
such person 01' person s, and after» giving
may frame charges against
opport unity to the persnn concer ned and in the case ef a
reasonable
Who inherit s his estate, to answer
deceased person to his representative
order requir ing him to repay or restor e the money
the charge, make an
ty at any part thereo f, With interes t at such rate as the Regi»
or proper
determine, 01‘ to
star or the person authorised under this section may
to the assets of the Societ y by way’e f compensation
contribute such sum
sanee or breach of trust
in regard to the misapplieatien, retentien, misfea
as he may determine.
(‘2) The Registrar or the persan authorised under subsection
therein for
{1) in mating any order under this section, may provide
thereof , as he thinks just, and he
the payment of the cost or any part
ed from
may direct that such cost or any part thereof shall be recover
the person. against whom the order has been issued.
is one
(3) This section shall apply, notwithstanding that the act
for which the person concerned may. be criminally responsible.
38
by him When acting
89. The Register or the person authorised
to summon and enforce
Power to en-
under section, 84 or 88 shall have the power compel the produ—
force atten- evidence 01‘ to
the attendance of any person to give
object by the same means and
dance. etc“
etlon of any document or other mater ial
a Civil Court under the
of
m the same manner as is provided in the case
Code of Civil Procedure, 1908.
ral or special order,
Constitution '90- (1) The State Government may, by gene ribution of such
of societies to make cont
of recogni- r30.11111‘6 of a society or a class nt
tion of fede- sum ever y year as may be fixed by the Registrar towards the recoupme
t or any person authorised
ral authority
9f expenditure Which the State Governmen r, in respect of supervision
to supervise
m that behalf has incurred or is likel y to incu
working of
societies: of societies.
(1) is applicable shall pay to
(2) A society to which sub-sectioncribed Within a reasonable time
such authority such fee as may be pres
time, the authority
fee Within a resonable
and if it fails to pay such
e
ar of land revenue.
may recover it as if it were an. arre
od
aC
di
CHAPTER 1X
In
DISPUTES AND ARBITRATION
law for
ng contained in any other
91. (1) Notwithstanding anythi , election
Dispute.
pute touching the constitution
the time being in force, any dis tin g, man age ment or
duct of general mee
of the office bearers, con by any of the parties of the .
rred
business of a society shall be refe ch the soci ety is affil iated, or I
ety to Whi
dispute, or by a federal soci ies thereto
soci ety, to the Registrar, if both the part
by a. creditor of the
ing :—-
are one or other of the follow
past or 5
, any past committee; any
(a) a seeiety, its committee eSCn tat- ive ol‘ 3
heir or legal repr
present servant 01' nominee, ser vant ol'
eased agent or deceased
any deceased officer, dec ety ;
r of the soci
the. society, or the Liquidato
ough :1. a
or a. person claiming thr
(b) a member, past member ety, or a -
eased member of a Soci
member, past member 91' a éec ety ;
soci
society Which is a member of the
of the society, Who has been
(e) a. person, othel‘ than a member baa
or with whom the society
granted a loan by the society, isio ns of Sect ion 43, and
the prov
or had transactions under ;
h person
any person claiming through suc
bel, or
t member or a deceasad mem
(d) a Surety of a member, pas has been granted aloan
who
a person other than a member Whether such a surety is or
by the society under sec tio n 45,
y ;
is not a. member of the societ
39
(e) any other society, or a, Liquidator of such society.
(‘3) When any question arises Whether for the purposes of the
foregoing sub-Section, a matter referred to for decision is a, dispute or
not, the question shall be considered by the Registrar, whoSe decision
shall be final.
(3) Save as otherwise provided under Sub-section (3) of section 93
no Court shall have jurisdiction to entertain any suit or other procee—
dings in respect of any dispute referred to in sub-section (1).
Explanation 1-—A dispute between the Liquidator of a society and
the members (including past member or nominee, heirs or legal represen-
tatives of deceased members) of the same society shall not be referred to
the Registrar under the provision of sub-seetion (1).
Explanation 2-For the purposes of this sub-section a dispute
shall include :——
(i) a~c§aim by or against a society for any debt or demand
due to it from a member or due from it to a member, past
member or the nominee, heir or legal representative of a
deceased member, or servant or employee Whether such
e
a. debt or demand be admited 01' not ;
od
(ii) a. claim by surety for any sum or demand due to him
from the principal borrower in respect of a. loan by a
aC
society and recovered from the Surety owing to the
default of the principal borrower, Whether such a. sum or
di
demand be admitted or not ;
In
(iii) a claim by a, society for any loss caused to it by a.
member, past member, or decased member, by any officer,
past officer or deceased officer, by any agent, past agent
or deceased agent, or by any servant, past servant or
deceased servant, or by its committee, past or present,
Whether such loss be admitted or not ;
(iv) a. refusal or failure by a. member, past member or a,
nominee heir or legal repreSentative of a deceased member
to deliver possession of a. land or any other asset resumed
by it for breach of conditions of the assignment.
92. (1) Notwithstanding anything contained in the Indian Limi-
tation Act, 1963, but subject to the specific provisions made in this Act,
Limitation
the period of limitation in the case of a. diapute referred to the Registrar
under the last proceedings section shall—
(a) when the disPute relates to the recovery of any sum, in-
cluding interest thereon, due to a. society by a. member
thereof, be computed from the date on which such member
dies or ceaSes to be a, member of the society ;
(b) When the disputeis between a. society or its committee, and
any past committee, any past or preSent officer, or past or
present agent, 01' past or present servant or the nominee,
40
heir or legal representative of a deceased officer; deceased
agent 01‘ (ieoeased servant of the society, or a member, or
past member, or the nominee, heir or legal representative of
a deceased member, and when the ‘dispute relates to any act
of omission on the part of either party to the dispute, be
:ix years from the date on Which the act of omission With
reference to which the dispute arose, took place ;
(0) when the dispute is in respect of any matter touching the
eenstitution, management or business of a. society which has
ordered to be Wound up under section £02, ox‘in respect of
which a- nominated committee or an administrator has been
appointed under section 78 be six years from the date of the
order iasued under Section 102, or section 78 as the case
may be ;
e
((1) when the dispute is in respect of an election of an office-
od
bearer of the societv, be one month from the date of the
declaration of the result of the election.
aC
(2) The period of limitation in the case of any other dispute
except these mentioned in the foregoing snb-section which are required
to be referred to the Registrar under the last preceding Section shall
di
be regulated by the provisions of the Indian Limitatien Act, 1963, as
if the dispute were a suit, and the Registrar 3. Civil Court.
In
(3) Notwithstanding anything contained in sub-seetions (1) and (2)
the Registrar may admit a dispute after the expiry of the limitation
period, if the applicant satisfies,the Registrar that he had sufficient cause
for not referring the dispute within such period and the dispute so
admitted shall be a dispute which shall not be barred on the ground
that the period of limitation had expired.
Settlement 93. If the Registraris satisfied that any matter referred to him
of dispute, or brought to his notice is a dispute within the meaning of section 91
the Registrar shall, subject to the Ruies, decide the dispute himself
or refer it for disposal to a nominee or a Board of nominees, appointed
by the Registrar.
(2) Where any dispute is referred under the foregoing sub-section
for, decision to the Registrar’s nominee or Board of nominees the
Registrar may at any time, for reasons to be recorded in writing, With-
draw such dispute from his nominee or board of nominees, and may
decide the dispute himself“ or refer it again for decieinn to any other
nominee, or board of nominees appointed by him.
(3) Notwithstandinganything contained in section 91 the Registrar
may, if he thinks fit, suspend proceedings in regard to any dispute, if
the question at issue between a society and a claimant or between
different claimants, is one involving complicated question of law and
fact, until the question has been tried by a .reguiar suit instituted by
one of the parties or by the society. If any such suit is not instituted
41
Within two months from the Registrar’s order suspending proceeding,
the Registrar shall take action as is provided in sub-seotion (1)
94. (1) The Registrar, or his nominee or board of nominees, Procedure
for settle-
hearing a. dispute under the last preceding section shall hear the dispute ment of dis-
in the manner prescribed, and shall have power to summon and enforce putes and
attendance of witnesses including the parties interesteci or any of them power of
Registrar,
and to oompel them to give evidence on oath, affirmation or affidevit, his nomineo
and to compel the production of documents by the same mean: and as or board of
far as possible in the same manner, as is provided in the ease of a Civil nominees.
Court by the Code of Civil Procedure, 1908.
(2) Except with the permission of the Registrar or his nominee or
boardof nominees, as the case may be no party shall be representative
at the hearing of a dispute by a legal practitioner.
(3) (a) If the Registrar or his nominee or board of nominees is
satisfied that a person, whether he be a member of the
society or not, has acquired any interest in the property of
any person who is a party to a. dispute, he may order that
the person Who has acquired the interest in he property
may join as a party to the dispute ; and any decision that
e
may be passed on the reference by the Registrar or his
od
nominee or board of nominees shall be binding on the party
so joined in the same manner as if, he were an original
aC
party to the dispute.
(b) Where a dispute has been instituted in the name of the
wrong person or where all the defendants have not been
di
included, the Registrar or his nominee or board of nominees
may at any stage of the hearing of the dispute. if satisfied
In
that the mistake was bonafide, order any other person to
be substituted or added as a plaintifi or a defendant upon
such tems as he think: just.
(0) The Registrar, or his nominee or board of nominees may, at
any stage of the proceedings, either upon or without the
application of either party, and on such terms, as may
appear to the Registrar, his nominee or board of nominees,
as the case may be to be just, order that the name of any
party improperly joined whether as plantifi' or defendant, be
struck out, and that the name of any person who ought to
have been joined whether as plaintifi' or defendant or whose
presence before the Registrar, hie nominee or board of
nominees, as the case may be, may be necessary in order
to enable the Registrar or his nominee or the board of
nominees efi'eetually and completely to adjudicate upon and
settle all the questions involved in the dispute, be added.
((1) Any person who is a party to the dispute and entitled to more
than one relief in respect of the same cause of action may
claim all or any of such reliefs ; but if he omits to claim for
all Iueh reliefs, he shall not "forward a. claim for any relief
80;.omitted except with the" leave of the Registrar, his
nominee or board of nominees.
42
Attachment 95 (i) Where a dispute has been referred to the Registrar 01
before award
(and interlo- his nasminee or Board of Nominees under sention 93 or under section ion:
cutory or- or where the Registrar or the person authorised under section 88 heart;
ders). a person against whom charges are framed under that section, tho‘E
Registrar or his nominee or board of nomieees, as the case may be, the;
person so authorised under section 88 if satisfied on enquiry or otherwisé‘,
that a party to sueh dispute or against Whom proceedings are pending
under section 88 with ‘ [intent to defeat] delay or obstruct the execution;
of any award or the carrying out of any order that may be made— E
(1) is about to diSpose of whole or any part of his property, "g
(b) is about to remove the whole or any part of his propert.f
from the jurisdiction of the Registrar, may, unless adequa ;
security is furnished, direct conditional attachment of the said;
properéy, and such attachment shall have the same efiect 1%
if made by a competent Civil Court. 2
e
od
(2) Where the Registrar, his nominee or board of nominees 03%
the person authoriSed under section 88 directs attachment of properta
aC
under the foregoing subaaeution, he shall issue a notice calling upon the;
person Whose property is 30 attached to furnish. security Which me
thinks adequate within a. specified period ; end if the person fails tcé
di
provide the security so demanded, the Registrar or his nominee 032%
board of nominees or as the case may he, the person authorised undoé
In
section 88 may r-onfirm the order and, after the decision in the dispute;
or the completion of the proceedings referred to in the foregoing subé
section may direct the disposal of the property so attached towards thug
claim if awarded.
(3) Attachment made under this section shall not efi‘eet tho righting,
subsisting prior to the attachment of the property, of persons ME.
parties to the proceedings in connection with which the attachmentlté
made, or bar any person holding a. decree against the person whoué
property is so attached from applying for the sale of the property undné
the attachment in execution of such decree. g
(4) The Registrar or his nominee or board of nominees or the;
person authorised under section 88, as the case may be, may in ordcg
to prevent the ends of justice being defeated make such interlocutorg
orders pending the decision in a diapute referred to in sub-aection (If
as may appear to be just and convenient. “
mum in men, e
Amendment-
1. These words wave mbstituted for the words “intent the defeat” by Man, A"?‘
No. 12 of 1984. Section l2.
4?)
96, 3{The Registrar or his nominee or the board of nominees Decision of
may, after giving the parties to the dispute reasonable opportunity of Register or
being heard, make an award on the dispute, on the expenses incurred his nominee
or board
by the parties to the dispute in connection With the proceedings, and of nominees.
the fees and expenses payable to the Registrar or his nominee or, as
the case may be, board of nominees ; and such an award shall not be
invalid merely on the ground that it was made after the expiry of the
period fixed for deciding the dispute by the Registrar, and shall subject
to appeal or review or revision, be binding on the parties to the
disPnte.”]
97: Any party aggrieved by any decision of the. Registrar or his Appeal aga-
inst decision
nominee or board of nominees under the last preceding Section, or an of Register
order passed under Section 95 may Within two months from the date 01‘ his nomi-
of the decision or order, appeal to the Tribunal. nee or board
of nominees.
98. Every order passed by the Registrar or a, person authorised
by him under sectien 88 or by the Registrar, his nominee or board of Money how
nominees under section 95 or 9,}, every order passed in appeal under recovered.
the last preceding section, every order passed by a, Liquidator under
section 105, every order passed by the State Government in appeal
e
against orders passed under section 105 and every order passed in
od
revision under section 154:, shall, if not carried out—
aC
(a) on a certificate signed by the Registrar or a, Liquidator, be
deemed to be a decree of a. Civil Court, and shall be
executed in the same manner as a. decreee of such court, or
di
(b? be executed according to the law and under the rules for
In
the time being in force for the recovery of arrears of land
revenue ;
Provided that any application for the reQOVery in such manner of
any sum shall be made to the Collector, and shall be accompanied by a,
certificate signed by the Registrar, such application shall be made
within twelve years from the date fixed in the order and if no such
date is fixed, from the date of the order.
99. Any private transfer 01' delivery of, or encumbrance or charge Private
transfer of
011, property made or created after the issue of the certificate of the property
Registrar or Liquidator, as the case may be, under section 98 shall be made after
null and void as against the society on Whose application the said issue of
certificate
certificate Was issued. void againlt
society.
100. (1) When in any execution of an order sought to be execu-
Transfer of
ted under section 98, any property cannot be sold for want of buyers, property
if such property is in occupancy of the defaulter or some perSOn in which een-
his behalf, or of some person claiming under a. title created by the not be sold.
defaulter subsequently to the iSSue of the certificate of the Registrar
or Liquidator under clause (a) or (b) of section 98, the Court, Collector
Amendments
1.. These words were substituted for words in the same section 91' the principal
Act by Men, Act 12 of 1984, section 13,
N“
“3»
or the Registrar, as the case may he. may, notwithstanding anything
contained in any law for the time being in mate, direet that the eaid
pfflperty 01‘ any yortion. thereef shalt he treheiferred t0 the Society Which
has applied for the ezeeutiea of the mid order, in the manner
prescribed.
(2) Where property is tr. nsterreai to that» society under the fore-
going sub-sec tien, or where 'px‘operty is 801d under section 98, the Court,
the Collector 01' the Registrar, as the eeSe be, may, in accordance With
the rules, piece the Society or the purehz-teer, as the (332.5272 may be, in
possession of the property transferred or 3036;
(3) Subject to such rules as may Ee made is this heheif, and to
any rights, encumbrances, eharges 01’ eguitiee QaWfiLHy subsisting in
favour of any person, such praqaerty or portion theseof shall be held
under sub-section (1) by the said seciety on such terms and conditions
as may be agreed upon between the Gourt, the Coileeter or the Registxet,
as the case may be, and the aii society. Subject to the general or
special orders of the State Govei‘hment, the {‘Soiieeter or the Registrar
e
may delegate to an officer, net below the rank of the Sub-S‘ieputy
od
Collector or the Assistant Registrar, powers exercisab‘ie by the Collector
01‘ the Registrar under this seeti=;n.
aC
5”“,st D; 101. (1) Notwithstam‘ii‘hg eseything centaihed in sections. 91, 93
wrap 1mm. and 98 on an apphcation mace by a resource society, undertaking the
di
financing of agriculturists towerds providing of their seesanal repuire=
ments, for recovery ef arears ef any sum advanced and on its
In
furnishing a statement of accounts in respect of the arrears, the
Registrar, may, after making such inquiries as he deems fit, grant a.
certificate fer the recOVery of the amouh‘t stated therein to he due as
arrears of revenue.
(.2) Where the Registrar is satisfied that e. reeuurce society has
failed to take action under the feregeing eub-seetion in respect of
arrears of any sum advanced by it to any of its mem bers, the Registrar
may, of his own motion, after making such inquiries as he deems fit,
grant a certificate for the recovery of the amount stated. therein to be
due as arrears of revenue, and such certificate shall. be deemed. to
haVe been issued at if on an appiieetien made by the Society concerned.
(3) A certificate granted by the Begietrar under enb-Seetion (1)
or (2) shall be final and a conclusive proof of the arrears stated to be
due therein, and the same shall be recoverabie aceording to the law
for thejtime being in force for the recovery of land revenue.
(4) Notwithstanding anything contained in this Act, the provis
sions of subsections (1), (2) and (3} shah, mutatis mutandie, ePPEY E
to the I'eeeVery of medium term leaner! :
(JHAPTEB X
LIQUIDATION
1(32. (1) If the RegiStrar,—
(3.) after an inquiry has been held under section 8 or an Winding L11).
inspection has been made under section 84c 01' en the report
of the Auditor auditing the accounts of the society, 01'
(b) on receipt of an application made upon a. resolution carried
by three-fourths of the members of the society present
at a special general meeting called for the purpose, 01'
(c) of his own motion, in the ease of a society Which»
(i) has not commenced working, or
(ii) has ceased working, or
(iii) possessas shares or members’ (iepoeits not exceedihg
e
five hundred rupees, or
od
(iv) has ceased to comply With any couditiens as to re-
gistration and management in this Act or the rules or
aC
the bye-laws, is of the opinion that a. society ought to
be wound up, he may-issue an interim order directing
it “be be Wound up.
di
(2) A copy of such order made under sub-section (1) shall be
In
communicated, in the prescribed manner, to the society calling upon
it to submit its exyienebion to the Registrar Within a, month from the
date of the issue of such order, and the Registrar, on giving an opportu-
nity to the society of being heard, may issue a. final order, vacating or
confirming the interim order.
103. When an interim order is passed under the last preceding
Appoint-
seetion or a. final order is passed under that section for the winding ment of
up of a. society, the Registrar, may, in accordance with the rules, Liquidator .
appoint a persen to be Liquidator of the society, and fix his
remuneration.
(2) 0n issue of the interim order, the officers of the society shall
hand over to the Liquidator the custody and control of all the property,
effects and actionable claims to which the society ie or appear to be
entitled and of all books, records and ether documents pertaining te
the business of the society and, shah have no access to any of them,
(3) When a final order is passed eenfirming the interim order,
the officers of the society shall vacate their offices, and while the
Winding up order remains in force, the general body of the society
shall not exercise any power.
(4) The person appointed under this section as Liquidator shall,
subject to the general control of the Registrar, exerciSe 3.11 or any
of the powers mentioned in section 105. The Registrar may remove ,
such person and, 1.9931118 another in his: place, Witheut assigning any
reason.
46
(5) The Whole of the assets of the society shall on the appoint-
ment of Liqiiidator under this section vest in such Liquidator, and
notwithstanding anything contained in any law for the time being
in force, if any immovable property is held by a Liquidator on behalf
of the Society, the title over the land shall be completed as soon as the
mutation of the name of his office is effected, and no Court shell
question the title on the ground of dispossession, want of possession or
physical delivery of possession.
(6) In the event of the interim order being vacated, the person
appointed as Liquidator shall hand over the property, effects and
actionable claims and books. records and ether documents of the
society to the officers who had delivered the same to him. The acts
done, and the proceedings shall, after the interim order has been
cancelled under the preceding section, be continued by the officers
of the society.
e
Appeal 104. (1) The Board, or any member, of the society ordered to
od
against order be wound up, may, within two months from the date of the issue of
of Winding
up.
the order made under section 102, appeal to the State Government :
aC
Provided that no appeal shall lie against an order issued under
sub-olause (i), (ii), (iii) of clause (0) of sub-section (1) of Section 102.
di
(2) No appeal from a. member under this section shall be
entertained unless it is accompanied by such sum as security for the
In
costs of hearing the appeal, as may be prescribed.
105. The Liquidator appointed under section 103 shall have power
?owers of subject to the rules and the general supervision, control and direction
Liquidatoy of the Register :~—-
(2,) to institute and defend any suit and other legal procee—
dings civil or criminal, on behalf of the society, in the
name of his office ;
(b) to carry on the business of the Society, So far as may
be necesmry for the beneficial winding up of the same ;
(c) to sell the immovable and movable property and actionn-r
ble claims of the society by public auction 01‘ private
contract With power to transfer the Whole or part thereof
to any person or body corporate or sell the same in
parcels ;
(d) to raise, on the security of the assets 9f the society, any
money required ;
(e) to investigate all claims against the society and, subject
to the provisions " of the Act, to decide questions of
priority arising out of such claims, and. to pay any class
or classes of creditors in full or rateably according to the
amount of such debts, the surplus being applied in pay‘=
ment of interest from the date of liquidation at a rate to
be approved by the Registrar, but not exceeding the
contract rates. ;
(f) to make any compromise or arrangement With creditors or
perfilons claiming to be creditors, or having or alleging them-
selves to haVe any claims, present or future, whereby the
Soeiety may be rendered liable;
(g) to compromise all calls or liabilities to calls and debts and
liabilities capable of resulting in debts and all claims present
or future, certain or contingent, subsisting or supposed to
subsist between the society and a. contributory or alleged
contributory or other debtor or person apprehending liabl-
lity to the society, and all questions in any way relatmg
to or efl'eeting the assets or the Winding up of the soelety
on Such terms as may be agreed, and take any seculr-lty
for the discharge of any such call, liability, debt, or clam],
and give a complete discharge in respect thereof ;
(h) to determine from time to time, after giving an opportunity
to answer the claim, the contribution to be made or re-
maining to be made by the members or past members or
by the estates, nominees, heirs or legal representatives of
deceased members, or by any officer, past officer or the
e
estate or nominees, heirs, or legal representatives of
deceased officer to the assets of the society, such contribu.
od
tion being inclusiVe of debts due from such members or
officers ;
aC
(i) to issue requieitions, under section 98 ;
(i) to get disputes referred to the Registrar for decision by
di
himself or his nominee or board of nominees ;
(k) to determine by what persons and in what proportion the
In
cost of the liquidation shall be borne ;
(1) to fix the time or times Within Which the creditors shall
prove their debts and claims or be included for the benefit
of any distribution made before those debts or claims are
proved ;
(m), to summon and enforce the attendance or witnesses and
to compel the production of any books, accounts, docu-
ments, securities, cash or other properties belonging to or
on the custody of the society by the same means and in
the same manner as is provided in the ceSe of Civil Court
under the Code of Civil Procedure, 1908 ; . ,
(n) to do all acts, and to execute in the name and on behalf
of the society all deeds, receipts and other documents, as
may be necessary to such winding up ;
(0) to take such action as may be necessary under section
19, With the prior approval of ' the Registrar, if there is
reason to believe that the society can be reconstructed.
106. After eXpiry of the period for lappeal against the order
made under sub-section (1) of section 102 or where the appeal has Efieet of or-
been dismissed the order for Winding up shall be efl'ective “and shall der of win-
ding up,
operate in favour of all the creditors and of all the contributories
«13
of the Society, as if it had been mad
and contributories of the society. e on the joint petition. of creditors
efi'ective, the Liquidator fishall When a winding up order beco
proceed to realise the assets mes "
Society by sale or otherwisaand of the
no dispute shall be commenced
pending at the date of the‘winding of, if
up order, shall be proceeded With
against the Society” except'iby
leave of ,
terms as the Registrar may; the Registrar and subject to such
impose. The Registrar, may of his own
metion, however, entertainer (iispose
01" any dispute by or against the
Society.
Bar of suit 107. (1) Save as exbressly prov
in winding
shall take cognizance of any matt ided in this Act, no Civil Court
up and dis; er connected With the Windidg
or dissolution of a society unde
solution
r this Act and When a Winding up
matters. order has been made no suit
or othe
up
proceeded with against the society r legal proceedings shall lie or be
of the Registrar, and subject to
or the Liquidator, except by leaw
such terms as he may impose ;
Provided that, where the winding
sions of this section shall cease to opef up ord'er :13 cancelled, the provi-
ate so far as the liability of the
e
soci
ety and of the members thereof
to be sued in concerned, but they
od
shall continue to apply to the pers
on Who acted as Liquidator.
1H8. (l) The Liquidator shall,
during his tenure of office, at
such time as may be prescribed, but
aC
Audi t of not less than twice each year,
present to the Registrar an account
Liqui dator’s in the prescribed form of hit;
receipts and paymente as Liquidat
accounts. or. The Registrar shall cause
di
account to be audited: in such any
manner as he thinks fit ; and
purpose of audit, the Liquidat for the
or shall furnish the Registrar
In
such vouchers and informat With
ion as he, or the person appointed by
may require, him,
(2) The Liquic‘iator shall cause a sum
mary of audited accounts to
be prepared. and shall send a copy of
such summary to every contri-
butory.
(3) The Liquidator shall pay such fees as
for the audit of the accounts and book the Registrar may direct,
s kept by him in the manner
prescribed.
(4) The Liquidator shall be held liable
for any irregularities which
might be discovered in the. course or as
a reault of audit in reepect of
transactionasnbseque to
nt his taking over the afi'airs of the Soci
and may beeproceeded against as ety,
if it were an act against which acti
could be. taken under section 88 : on
Provided that, no Such action shall be taken unless
have caused or are likely to cause loes to
the irregularities
the society, and have occurred
due to gross neg‘dgenee or wanton omis
sion, in carrying out the duties
and functions.
109. (1) The Winding up proceedings of thewsoei
Termination
Within three years from the date of the orde ety shall be closed
of 1iquida~ r of the winding up, unless
tion procee— the period is extended by the Registrar ;
dings.
Provided that, the Registrar shall not
grant any extension for a
period exceeding one year at a time
and four years in the aggregate and
shall, immediately after the expiry of seve
n years fro: the date of the
order for Winding up of the society,
deem that the Liquidation
proceedings have been terminated, and pass an order terminating the
liqu idation pro ceedings,
Explanation—In the case of a society Which is under liquidation
at the commencement of this Act and order for the Winding up of the
society shall be deemed for the purpose of this section to have been
passed on the date of such commencement.
(2) Notwithstanding anything contained in the foregoing sub-
section, the Registrar shall terminate the liquidation proceedings on
receipt of the final report from the Liquidator. The final report of
the Liquidator shall state that the Liquidaton proceeding of the society
has been cIOSed, and how the winding up has been conducted and the
property of and the claims of the society have been disposed of and
shall include a statement showing a, summary of the account of the
winding up including the cost of liquidation, the amount (if any )
standing to the credit of the society in liquidation, after paying off its
liabilities including the share or interest of memberS, and suggest how
the surplus should be utilised.
(3) The Registrar, on receipt of the final report from the Liqui-
e
dator, shall direct the Liquidator to convene a general meeting of the
od
members of the society for recording his final report.
110 The surplus assets as as shown in the final report of the Disposal
aC
Liquidator of a. society Which has been wound up, may either be divided of surplus
assets.
by the Registrar, With the previous sanction of the State Government
di
amongst its members in such manners, as may be prescribed or be
devoted to any object or objects provided in the bye-laws of the society,
In
if they specify that such a. surplus shall be utilised for the particular
purpose or may be utilised for both the purposm. Where ' the surplus
is not so divided amongst the members and the society has no such
bye-lew, the surplus shall vest in the Registrar, who shall hold it in
trust and shell transfer it to the Reserve Fund of a new society regis—
tered With a. similar object, and serving more or less an area Which the
society to Which the Surplus belonged was serving :
Provided that, Where no such society exists or is registered Within
three years of the cancellation of the society Whose surplus is vested
in the Registrar, the Registrar may distribute the Surplus, in the
manner he thinks best, amongst any or all of the following :~
(3) an object of public utility and of local interest as may be
recommended by the members in a, general meeting held
under the preceding section ;
(b) a federal Society With similar object to Which the cancelled
society was eligible for affiliation 01', Where no federal
society exists, the state federal society Which may be
notified in this behalf by the State Government, and
(c) any charitable purpose as defined in section 2 of the
Charitable Endowments Act, 1890. I
CHAPTER XI
LAND DEVELOPMENT BANKS
111. This Chapter shall apply to—
(a.) Co-operative Banks advancing loans, other than short term
loans for purposes herein enumerated (hereinafter referred to as Land
Development Banks) that is to say :—
(i) land improvement and productive purposes ;
Application (ii) the creation, rebuilding or repairing of house for
of Chapter agricultural purposes;
to Land De-
velopment (iii) the purchase or acquisition of title to agricultural lands
Ranks, by tenant purchasers or tenants under the Manipur
Land Revenue and Land Reforms Act, 1960 and any
e
corresponding law for the time being in force in any part
of the ‘State ; or 5
od
(iv) the liquidation of debts under law for the time being in
force in any part of the State ; and
aC
(b) any other co-operative bank permitted by the Registrar
under Section 142 to function as a Land Development Bank.
di
Explanation 1.—For the purpOSes of this section, short term 1 an
In
means a. loan for a duration of less than 15 months.
Explanation 2.——Land improvement and productive purposes means
any work, construction or activity which adds to the productivxty of the
land and, in particular, includes the following, that is to say —
(a) construction and repair of wells (including tube wells), tanks
and other work for the storage, supply or distribution of
water for the purpose of agriculture, or for the use of men
and cattle employed in agriculture ;
(b) renewal or reconstruction of any of the foregoing works, or
alterations therein, or additions thereto ;
(0) preparation of land for irrigation ;
(d) drainage, reclamation from rivers or other waters, or protec-
tion from floods or from erosion or other damage by water,
of land used for agricultural purposes, or waste land Which
is cultivable ;
(e) bunding and similar improvements ;
(f) reclamation, clearance and enclosure or permanent improve-
ment of land for agricultural purposes ;
(g) horticulture ;
(h) purchase of oil engines, pumping sets and electrical motors
for any of the purposes mentioned herein ;
(i) purchase of tractors or other agricultural machinery ;
(5) increase of the productive capacity of land by addition
to it
of special variety of Soil ;
5‘1
(51:) construction of permanent farm-houses, cattle-sheds, and
sheds for processing of agricultural produce at any stage ;
(1) purchase of machinery for crushing sugarcane, manufactu-
ring gur or khandsary or sugar ;
(m) purchase of land for consolidation of holdings under the
Manipur Land Revenue and Land Reforms Act. 1960.
\n) such other purposes as the State Government may, from
time to time, by notification in the Official Gazette, declare
to be improvement or productive purpose for the purpose
of this Chapter. State and
112. There shall be a State Land Development Bank for the State other Land
Develop-
of Manipur, and eswmany Primary Land Development Bank as may be ment Banks.
deemed necessary.
113. (l) The Register, or any other persan appointed by the Ap pointment
and functions
State Government in this behalf, shall be Trustee for the purpose of of Trustees.
securing the fulfilment of the obligations of the State Development
Bank to the holders of debentures issued by it.
(2) The Trustee shall be a corporation sole by the name of the
e
Trustee for the debentures in respect of which he is appointed, and Shall
have perpetual Succession and a common seal, and in his corporate
od
name may sue and be sued. ‘
aC
(3) The powers and functions of the Trustee shall be governed by
the provisions of this Act, and the instrument of trust executed be-
tween the State Land Development Bank and the 'lTruetee, as modi-
di
fied from time to time by mutual agreement between the State Land
In
Development Bank and the Trustee.
114' (1) With the previous sanction of the State Government Issue of
debentures
and the Trusteeand subject to such terms and conditions as the
State Government may impose the State Land Development Bank may
issue debentures of such denominations, for such period, and at such
rates of interest as it may deem expedient on the security of mort-
gage, or mortgages to be acquired or partly on mortgages, held and
partly to be acquired, and properties and other assets of the Land
Development Bank.
(2) Every debentures may contain a, term fixing a period not
exceeding twenty years from the date of issue during which it shall
be redeemable, or reserving to the Board the right to redeem at any
time in advance of the date fixed for redemption after giving to the
holder of the debenture not less than three months’ notice in writing.
(3) The total amount due on debentures issued by the State
Land Development Bank and outstanding at any time, shall not
exceed“
(a) where debentures are issued against mortgages held, the
aggregate of-
(i) the amounts due on the mortgages ;
N.
Ct.
(ii) the value of the properties and other assets transferred
or deemed to have been transferred under section 121 j by
the Primary Land Development Banks to the State Land
Development Bank and subsisting at such. time ; and
(iii) the amounts paid under the mortgages aforesaid end the
unsecured amounts remaining in the hands of the State
Land Development Bank or the Trustee at the time ;
(b) Where debentures are issued otherwiSe than on mortgages
held, the total amount as calculated under clause (a) in-
creased by such portion of the amount obtained on the
debentures as is not covered by a, mortgage.
Guarantee 115. The principal of, and interest on the debentures issued under
by State the preceding section or any specified portion thereof, may carry the
e
Government. gurantee of the State Government, subject to such maximum amount
od
as may be fixed by the State Government, and to such conditions as
the State Goyernment may think fit to impose.
aC
116. Upon the issue of debentures under the provisions of section
Veating of
114, the properties and other assets referred to in sub—section (3) of
di
' property in
Trustee and that section held by the State Land Development Bank, shall vest in
Debenture the Trustee, and the holders of debentures shall have a. floating charge
In
on all such mortgages and assets, and on the amount paid under such
holders’
mortgages, and remaining in the hands of the State Land Development
charge on
assets.
Bank or of the Trustee.
Powers of 117. Subject to the provisions of this Act, and the Rules made
Land Deve- thereunder, it shall be competent for the Land Development Banks
lopmeut
Banks to
to advance loans for the purposes referred to in section 111, and to
advance hold lends the possession of which is transferred to them under the
loans and to provisions of this Chapter-
hold loans
118. (1) When an application for a loan is made for any of the
Mode of of
purposes mentioned in section 111, the public notice shall be given
dealing with
applications the application in such manner as may be prescribed calling upon
for loans all persons interested to present their objections to the loan, if any,
in person, at a, time and place fixed therein. The State Government
may: from time to time prescribe the persons by whom such public
notice shall be given and the manner in Which the objections shall
be heard and disposed of.
(2) The prescribed officer shall consider every objection submitted
under sub-section (1) and make an order in writing either upholding
01‘ overruling it :
Provided that, When the question raieed by an objection is in the
opinion of the officer, one of such a nature that it cannot be satis-
factorily decided except by a, Civil Court, he shall peS’tpone the procee-
dings 0n the application until the questionrhas been SO decided.
(8) A notice under sub-section (1), published in the manner
prescribed shell, for the purpose of this Act, be deemed to be proper
notice to all persons having or claiming interest in the land to be
improved, or offered as security for the loan.
53
(4) Subject to such rules as may be pregeribed, the Land Develop-
ment Banks shall consider such applications after due enquiry for the
purpose of making leans under this chapter.
119. A written order by the Land Development Bank or persons Order gran-
or Board authorised under the bye-iaws of the Bank to make loans for ting loan
conclusive of
all or any of the purposes specified in section 111, granting a loan to certain mat-
or with the consent of a. person mentioned therein, for the purpose of ters-
carrying out the work Specified therein, for the benefit of the land or
for the productive purpose specified therein, shall for the purPOSe of this
Act, be conclusive of the following matters, that is to Say :——
(a) that the work described or the purpose for which the loan
is granted, is an improvement or productive purpose, as the case may
be, within the meaning of section 111.
(b) that the person had at the date of the order a right to make
such an improvement, or incur expenditure for productive purpose, as
the case may be ; and
(c) that the improvement is one benefiting the land specified and
productive purpose concerns the land offered in security, or any part
e
thereof as may be relevant.
od
120. (1) A mortgage executed in favour of a Land Development
Bank, shall have priority over any claim of the Government arising Priority of
mortgage.
aC
from a loan granted after the execution of the mortgage under the Land
Improvement Leans Act, 1883, or the Agriculturists’ Loans-Aet, 1884,
or under any other law for the time being in force.
di
(2) Notwithstanding anything contained in the law for the time
In
being in force, Where a mortgage in favour of a Land Development
Bank is in respect of land in Which a tenant purchaser or tenant has
an interest, the mortgage may be against the security of such interest,
and the rights of the mortgage shall not be affected by the failure of
the tenant purchaser or tenant to comply with the requirements of
such law, and the sale of the land and his interest therein under such
law shall be subject to the prior charge of the Land Development
Bank. Mortgages
executed in
121. The mortgages executed in favour of, and all other assets favour of
transferred to a Land Development Bank, by the members thereof, with Land Deve-
lopment
effect from the date of such execution or transfer, be deemed to have Bank to stand
been transferred by such Land Development Bank to the State Land vested in
Development Bank,and shall vest in the State Land Development Bank. State Land
Development
Bank.
122. Notwithstanding anything contained in the Indian Registra-
tion Act, 1908 it shall not be necessary to register mortgages executed
Registration
in favour of the Land Development Banks, provided that the Land of Mortgage
Development Bank concerned Bends Within such time and in such (or lease) in
manner as may be prescribed, a copy of the instrument whereby pro- favour 08
perty is mortgaged or leased to the Registering Officer Within the Land
Development
local limits of whose jurisdiction the whole or any part of the property Banks,
mortgaged is situate, and such Registering Officer shall file a copy or
copies as the case may be in his book No. 1 prescribed under section
51 of the Indian Registration Act, 1908.
5i
Mot tgages 123. Nat withstanding anything contained in any Insolvency Act 0:
not to ~‘be any eerresponding law for the time being in force in Manipur a
questioned
on insolven- Mortgage, executed in favour of a Land Development Bank, shall
ey of mort- not he called in question in any insolvency proceedings on the
gagors ground that it was not executed in order to give the Bank a. preference
over other creditors of the mortgagor.
124. (1) Where a mortgage is executed in favour of a Land De.
Right of veiopment Bank, for payment of prior debts of the mortgagor, such
Land Dove-
lopment bank shall, noththetanding anything contained in the Transfer of
Bank to pay Property Act, 1882 by notice in writing, require any person to Whom
prior debts of any such debt is due, to receive payment of such debt or part thereof s=
mortgagor
from the bank at its registered office within such period as may be
specified in the notice.
(2) Where any such person fails to accept such notice or to receive
e
such payments, such debts or part thereof as the case may be, shall
od
cease to carry interest from the eXpiry of the period epeeified in the
noslce :
aC
Provided that Where there is a dispute as regards the amount
of any such debt, the person to Whom such debts is due sbaii be
bound to receive payment of the amount offered by the Land Develop-
di
ment Bank towards the debts, but such receipt shall not prejudice the
In
right, if any, of such person to recover the balance claimed by
mm.
125. (1) Mortgages, in respect of loans by a Land Development
Mortgages
exec uted by
Bank or the State Land Development Bank, by the Manager of a Hindu
managers of joint family for the improvement of agricultural land or of the methods
joint Hindu of cultivation, or for financing any other means to raise the predimtivity
families. of the iand, or for the purchase of land, shalt be binding on eVery
member of such joint Hindu family, notwithstandiug any law to the
contrary.
(2) In other cases, Where a mortgage executed in favour of a
Land Development Bank or a State Land Development Bank is called
in question on the ground that it was executed by the manager of
a Hindu joint family for a purpose not binding on the members
(Whether such members have attained majority or not) thereof, the
burden of proving the same shall notwithstanding any law to the
contrary, lie on the party alleging it.
Section 8 of
Act XXXII 126. Section 8 of the Hindu Minority and Guardianship Act, 1956,
of 1956 to shall apply to mortgages in favour of a Land Development Bank,
apply to subject to the modification that reference to the Revenue Officer or his
mortgages to
Land Deve- nominee and the appeal against the order of the Revenue Officer or his
lopment nominee shall lie to the Deputy Commissioner.
Banks subject
to certain
modification
127. (1) Notwithstanding anything contained in the Transfer of
lestriction Property Act, 1882 or any other law for the time being in force, 110
on lease mortgager of property mortgaged to a Land Development Bank, shall
eXcept With the prior consent in writing of the bank, and subject to
such terms and conditions as the bank may impose lease or create any
tenancy rights on any such property :
Cl
0(
Provided that, the rights of the Land Development Bank shall
be enforceable against the tenant purchaser, the leasee or the tenant,
as the case may be, as if he himself were a mortgagor.
(2) Where land, mortgaged with possession to a Land Development
Bank, is in actual possession of a tenant, the mortgagor or the Land
Development Bank shall give notice to the tenant to pay rent to
the Land Development Bank during the currency of the lease and
the mortgage, and on such notice being given, the tenant shall be
deemed to have attorned to the Land Development Bank.
128. Notwithstanding anything contained in section 121 all moneys Land Deve
Iopment
due under the mortgage shall unless otherwise directed by the State Bank to re-
Land Development Bank or the trustee, and communicated to the ceive money
mortgagor, be payable by the mortgagor to the Land Development Bank, and give
discharge.
and such payments shall be as valid as if the mortgage had not been so
transferred and the Land Deveiopment Bank shall in the absence of
specific direction to the contrary, issued by the State Land DeVelop-
ment Bank or trustee and communicated to the Bank, be entitled to
e
sue on the mortgage or take any other proceeding for the recovery of
od
moneys due under the mortgage.
Power of Land
129. Where any property mortgaged to a Land Development Bank Development
aC
is 'wholly or partially destroyed, or for any reason the security is Bank where
rendered insufficient and the mortgagor, having been given a reaso- mortgaged
property is
nable opportunity by the bank to provide further security enough to
di
destroyed or
render the whole security sufficient, or to -repay sneh portion of security be-
In
loan as may be determined by the bank has failed to provide such comes insu
fficient
security or to repay such portion of loan, the whole of the loan
shall be deemed to fall due at once ; and the bank shall be entitled
to take action against the mortgagor under section 132 or section
133 for the recovery thereof.
Eepianation z—Seeurity shall be deemed insufi‘icient Within the
meaning of this section, unless the value of the mortgaged property
(including improvements made thereon) exceeds the amount for the
time being due on the mortgage by such proportion as may be speci~
fied in the rules, reguiations or the bye-laws of the Land Development
Bank.
130. (1) Property purchased under section 133 {3), by, and pro-
perty transferred under section 100 to, the Land Development Banks Right of De-
may be disposed of by such banks by sale within such period as may veiopment
be fixed by the Trustee, subject to the condition that such sales shall Bank to buy
mortgaged
be in faVonr only of agriculturists eligible to hold land under the Mani- property.
pur Land Revenue and Land Reforms Act, 1950 or any corresponding
law for the time being in force, or may be leased out by them on such
terms and conditions as may be laid down by the State Government
from time to time.
(2) Nothing contained in any law for the time being in force
fixing maximum limit of agricultural holding shall apply to the acqui.
sition or holding of land by the Land Development Banks under this
section.
r.-
06
Recovery of.
loans by
‘ 131. A11 loans granted by the the Land Development Banks, e11
Development 1nterests(ifa.ny) chargeable thereon and costs (if any), incurred in
Banks. making the same, shall, When they become due, be recoverable by
the Land Development Bank concerned.
Power of
diltuint.
132. (1) If any instalment payable under a, mortgage executed in
favour of a Land Development Bank, or any part of such instalment,
has remained unpaid for more than one month from the date on which
it fell due, the Board of such bank may, in addition to any other
remedy aVailable to the Bank, apply to the Registrar or the Revenue
Officer for the recOVery of such instalment or part. thereof by distraint
and sale of the product of the mortgaged land, including the standing
crops thereon.
(2) On receipt of such application, the Registrar or the Revenue
e
Officer as the case may be, may, notwithstanding contained in the
od
Transfer of Property Act. 1882, take action in the manner prescribed
for the purpose of distreining and selling such produce :
aC
Provided that, no distraint Shall be made after the expiry of
three years from the date on Which the instalment fell due.
di
(3) The value of the property dietrained shall as nearly as possible,
be equal to the amount due and the expenses of the distraint and the
In
cost of the sale.
Sale of mort- 133. (1) Notwithstanding anything contained in the Transfer of
gaged pro- Property Act, 1882, the Land Development Bank or any person autho-
party. rised by it in this behalf shell, in case of default of payment of the
mortgage money, or any part thereof, have power in addition to
any other remedy available to the; bank, to bring the mortgaged
' property to sale by public auction in the village in Which the mort-
gaged property is situated or at the nearest place of public resort,
wi‘hout the intervention of the Court :
Provided that, no action shall be taken under this sub—section
and no such power shall be exercised, unless and until—
(9,) the Land Development Bank has been previously authorised
to exercise the power conferred under this sub-section
after hearing the objections, if any, of the mortgagor or
mortgagors.
(b) notice in writing requiring payment of such 7.1 ortgage money
or part thereof has been served upon—
(i) the mortgagor or each of the mortgagors ;
(ii) any person who has any interest in or charge upon the
property mortgaged, or in or upon the right to redeem
the same so far as is known to the bank,
(hi) any surety for the payment of the mortgaged debt or
any’ part thereof, and
(iv) any creditor of the mortgagor Who has in esuit for
administration of his estate obtained a decree for sale
of mortgaged property, and
(0) Default has been made in payment of such’fmortgege money
or part thereof, for three months after service of the notice.
57
(2) If the Land Development Bank fails to take action against
a defaulter under Section 129 or 132 or under this section the State
Land Development Bank may direct the Land Development Bank
to
take appropriate action, and Where no action is taken either by the
State Land Development Bank, or the Land DeVelepment Bank, the
Trustee may take such action. If such aetien is taken by the Trustee,
the provisions of this Chapter and of any rules preteribed shall apply
in respect thereto, as if all references to the Land Development Bank
in the said provisions were reference to the Trustee.
(3) Notwithstanding anything contained in any law for the time
being in force, it shall be lawfui fer the Ps'in'ary Land Development
Bank 01‘ the State Land Development Bank te plzrehase any mortgaged
property seld under this Chapter.
134. (1) On effecting the saie by a Land Development Bank
under section 133, the bank shali, in the preeeribed manner, submit Confirmation
to
the State Land Development Bank and the Registrar a repert ??’settin of sale,
forth the manner in which the tale has. been effected and the result g
of
the saie, and the State Land Deveiepment Bank may, With the approv
al
of the Registrar, confirm the sale or cancel it.
(2) Where the sale is efi'ected by the State Land Devel
e
Bank or the Trustee under Section 133, the State La nd opment
od
DeVelopment
Bank or the Trustee, as the case may be, shall in the prescr
ibed manner
submit to the Registrar a report setting forth the
manner in which
aC
the sale has been effected and the result of the 88.16, and the Regist
rar
may confirm or cancel it.
di
135. The proceeds of every sale effected under sectio
confirmed under the preceding section shall be applie n 133 and Disposal of
d first in payment
In
of all costs, charges and eXpenses incurred in connection Bale p-'oceeds.
With the sale
or attempted sales, secondly, in payment of any
or all interest due
on account of the mortgage in consequence whereof the
property was sold, and thirdly, in payment of the mortgaged
principal due on
account of the recovery.
If there remain any residue from the preceeds of sale,
shall be paid to the person proving himself intere
the same
sted in the property
sold, or if there are more such persons then
one, then to such persons
upon their joint receipt or according to their respective
interest therein
as may be determined by Land DevelopmentBank :
Provided that, before any Suoh payments
are made the unsecured
dues owing—
(a) from the mortgage! to the Land Development Bank
adjusted, and
may be
(b) from any member or past member to whom the mortgagor
is indebted may also be adjusted under the Written
authority given by
such member and past member, and after holding
such inquiry as
may be deemed necessary.
136. (1) Where a sale of mortgaged property has becom
e abso=
lute under section 134 and the sale proceeds have been receiv Certificate to
full by the Land Development Bank, the bank shall grant ed in purchaser,
a certificate delivery of
to the purchaser in the prescribed form, certifying the
property sold, property and
and sale price, the date of its sale, the name of the person who at title of
the purehaooi'.
58
time of the sale is declared to be the purchaser, and the date on Which
the sale became absolute ; and upon the production of such certificate
the Sub-Registrar appointed under the Indian Registration Act, 1908,
within the limits of whose jurisdiction the whole 01' any part of the
property specified in the certificate is situated, shall enter the con-
tents of such certificate in his register rel’ating to immovable property.
(2) (a) Where the mortgaged property sold in the occupancy of
the mortgagor, or of some person on his behalf or some persons claim
311ng under a title created by the mortgager, subsequent to the mort-
gage in favour of the State Land Development Bank or a Land Deve-
lopment Bank and a certificate in respect thereon has been granted
under the foregoing sub-seetion the Revenue Officer shall, on the
application of the purchaser, order delivery to be made by putting
e
such purchaser or any person who he may appoint to receive delivery,
od
on his behalf, in poseession of the property.
(1)) Where the property sold is in the occupancy of a tenant or
aC
other person entitled to occupy the Same, and a certificate in respect
thereof has been granted upon the feregoing sub-sectien, the Revenue
di
Officer, shall, on the application of the purchaser and after notiee to
eunh tenants or other person, order the deliVery to be made by affixing
In
copy of the certificate of sale in a conspicuous place on the property
and preclaimingto the occupant by heat of drum or other customary
mode at some convenient place, that the right title and interest of
the mortgagor have been transferred to the purchaser.
(3) Where any property is sold in the exercise or purported exera
eise of a power of sale under section 133% the title of the purchaSer
shall not be questioned on the ground that the circumstances required
for authorising the sale had not arisen, or due notice of the sale was
not given, or the poWer of sale was otherwise improperly or irregularly
exercised :
Provided that, any person who sufi‘ers damage on account of nna
authorised, improper or irregular exercise of such povver shall have a
remedy in damages against the Land Development Bank.
137. (1) Notwithstanding anything contained in Section 91 on an
Recovery of
application made by a Land Development Bank for the recovery of
loans on arrears of any sum advanced by it tn any of its members and on its
certificate by furnishing a statement of accounts in reapect of the arrears, the Regis-
Registrar; trar may, after making Such enquiries as he deems fit, grant a certificate
for the recovery of the amount stated therein to be due as arrears.
(2) A certificate by the Registrar under eub-seetion (1) shall be
final and conclusive as to the arrears due. The arrears stated to be due
therein ehall be recoverable according to the law for the time being
in force for the recovery of arrears of land revenue.
(3) It shall be competent for the Registrar or a person authorised
by him? to direct conditional attachment of the property of the mart-
gagor until the arrears due to the Land Devalopment Bank together
with interest and any incidental charges incurred in recoVery of such
arrears, are paid or security for payment of such arrears is furnished
to the satisfaction of the Registrar and the provisions of section 95
shall apply mutatis mutandis to conditional attachment of any property
made or to be made under this section.
59
Collector to
138. (1) Any ameunt due to a. Land Development Bank (inclu- make recovea
a’iEmg ease of recovery thereof) shall on an application by it in this behalf ties during
be recoverable by the Revenue Officer, or any officer Specially autherieeti a ceytain
by the Revenue Office: in this behalf; in all or any of the following porind.
modes namely :-~
(a) from the borrower as if they were arrears of land revenue
due by him ;
(h) out of the land for the benefit of Which the loan has been
granted as if they were arrears of land revenue due 1n
respect of that land ;
(c) from a. surety (if any) as if they were arrears of land
revenue due by him ;
((3) out of the property comprised in the collateral security (if
any) according to the procedure for the realisation of land
revenue by the sale of immovable property other than the
land on which the revenue is due.
Officers of
.139. At any sale of movable or immovable property, held under Banks not to
the pmviaions e‘f this ChapterS no officer or emyloyee of a, Land De= bid at sales.
e
who hem Bank 01‘ the State Land Development Bank, except on
od
behalf of the Bank of whiah he is an officer or an employee, and no
pemoa haying any duty to perform in connection with such sale, shall
ei‘o’aar direei‘iy or indirectly bid for or acquire or attempt to ecquire any
aC
interest in such property.
Any law not
140. Nothing contained in any law for the time being in force to apply to
di
in any pert. of the State shall apply to any alienation in favour of the alienation in
favour of
Land DeVelopment Bank.
In
Land De-
velopmeut
Banks.
141. (1) It shall be competent for the State Governmeni? to
conetibube one or more Guarantee Funds on such terms and conditions Provision for
Guarantee
as ii; may deem fit, for the purpose of meeting losses that might arise Funds to
as a. result of loana being made by the Land Development Banks on meet certain
tibiae “be immovable property subsequently found to be defective or for losses.
any other purposes under this Chapter, for which in the opinion of the
Stem Government, it) is necessary to provide for or create a. separate
Guarantee Fund.
(2) The State Land Development Bank and the Land Development
Beaks shell contribute be such funds at such rate as may be prescribed,
mad the constitution, maintenance and utilisation of such Funds shall
be governed by such rules, as may be made by the State Government
in this behalf.
Registrar’s
142. It shall be competent for the Registrar to permit any cou powers to
Oyemtive bank to function as a. Land Development Bank under such permit any
co-opemtive
terms and conditions and for such period as he may deem fit. bank to fume:
tion as a. Land
Development
143. The provisions of sections 102 and 103 of the Transfer of Bank.
Property Act, 1882, end of any rules made under section 104 thereof, Service of
shall apply, so far as may he, in respect of all notices to be served name,
under this Chayber,
15
z
d Development Bank shall have
Power of 144. The Board of the State Lan Development Banks and may,
Land
Board of a general pOWer of supervision over e Government, make regulations,
State Land
h the prev ious sanc tion of the Stat
Development
wit rules made thereunder, for
9.11 or
or the
Bank to an- not inconsistent with this Act
elyfl
pervise Land any of the following matters, nam
Development unt books and proceedings of
Banks and (a) for the inspection of the acco ;
make reguie= the Land Development Banks
and reports by such banks in
tions;
(b) for the submieeion of returns
respect of their transactions ;
ks
t of accounts between such ban
(c) for the periedica‘i eettlemen nt Ban k bei ng acc ounts
and the State Land Developme h
the amounts recovered by suc
relating to the payment of State Lan d Dev elo p-
the
banks on nmrtgages tmnsfeyred to
ment Bank ;
e
ions to such banks for loans
od
(d) for the form in which applicat
uation of properties offered
shall be made and for the val
s ;
as security for such loan
aC
:;
realised from the mortgagor
(e) for the investment of moneys
;
e of employees of such benks
di
(f) the conditions of servic
banks
icy to be followed by such
In
(g) the programme and pol
for making loans ;
by such
security to be obtained
5h) the types and extent of
;
banks for advancing loans
the
safeguarding the interest of
ii"; generally, to: the ?urpose of carrying
vities of such banks, and
parties, farthemnee of acti
pter.
out the yurpeses of this Cha
(‘BHAP'E‘EE XI},
IES
OFFENCES AND ?ENALT
d, or deemed
er then a. society registere cessor in
145. (1) No yerson, oth his suc
Use of the s Act and a. person or
word ”Co- to be registered; under thi which thi s Act comes into
01’ title under
operative’ ’. interest of any name ernment function,
the eenction of the State GoV ch the
{w:ee, she‘ll without any name or title of Whi
ss under
traée or carry on busine equivalent in, any Indian language, forms
werd “Co—eperative,” or its
part. the foregoing
ry per son een tra vening the provisions of
(:2) Eve With fine Which may be
viction, be yunished
subsection shall, on con ,
rupees.
extended to five hundred
under this Act, iféu
14:6° It shall be an offence
Ofienees;
£51
(as) any member of a. Society transfers any property or interest in
contravention of subsection (2) of section 47 or any peISOn
knowingly acquires, 01' abets in the acquisition of, such
groperty; or
(b) any employer end every director, manager, secretary or other
officer or agent acting on behalf of such employer Who, without
sufficient cause, fails to comply with subsection (2) of
section 49 ; or
(0) a Board of a, Society or an officer or member thereof
fails toinvest funds of such society in the manner required
by section 70; or
(d) any person, collecting share money for a. society in formation,
does not Within a, reasonable period deposit the same in the
State Co-operative Bank 01‘ a Central Covoperative Bank or
an Urban Co-operative Bank, era. Postal Saving Bank;
or
(e) any person, collecting the share money for a society in forma-
tion, make use of the funds so raisad for conducting any
e
business or trading in the name of a society to be registered
od
or otherwise; or
(f) a. oommitee of a, society, or an officer or member thereof,
aC
fails to comply with the provisions of sub-sections .(2), (3) or
(4) of section 75 ; 'or
di
(g) any officer or member of a Society who is in possession of
information, books and records, fails to furnish. such informa-
In
tion or produce books and papers, or give assistance to a
person appointed or authorised by the State Government or
the Registrar under sections 78,81,83,94 or 103 ; or
(h) any officer of a. society fails to hand over the custody of
books, records, cash, security and other property belonging to
the society of which he is an officer to a, person appointed
under section 78 or 103 ; or
(i) a. Board of a. society with a working capital of fifty thousand
rupees or more, or any officer or a. member thereof,
fails Withoutany reasonable excuse to give any notice, send
any return or document, do or allow to be done or comply
with orders made under section 79 ; or
(i) a. Board of a society or an officer or member thereof wilfully
neglects or refuses to do any act, or to furnish any informa«
tion required for the purposes of this Act by the Registrar, or
other person duly authorised by him in writing in this
behalf ; or
(1!) a. Board _of a Society, or an officer or member thereof, wilfully
makes a. false fetu‘rn, or. furnishes falsa information, or fails to
maintain proper aeoounts ; or
m5
Seeiety fails to
{1) any effiecr. memher‘ ageet or" eerVant of a of eeetion
fl {fit
comply with the reqeifements ei Subseectig
,
81 ; or
ef Society wilfully fails to comely
, (m) any effieer or member
award 01‘ erder pegged. under section
with any decision;
-
96 ; or
property over
a member of a society fraudulently dispeees of
er or officer
which the Society has a prier claim, 01‘ a memb
or any perso n riispe ses of his prope rty by sale,
or empioyer
wise, with the fraudulent
transfer, mortgage, gift or other
the dues of the socie ty ; or
intention of evading
de o: sanctions for
(0) any officer of a society wilfully reeommen
his own personal use or benefi t or for the use or benefit
in the name of
of a person in whom he is interested, a loan
any other persen ; or
mutilatee,
e
any officer or member of a Society destroys,
es or secrets or is
od
tampers with, or etherWiSe alters, falsifi
falsification
privy to the destructimn mutilation, aitemtion‘
or makes,
or secreting of any books, paper or security
aC
entry
ulent
or is; privy to the making of any fame or fraud
er, book of accou nt 0.13 docu ment belonging
in any regist
di
to the society ; 01‘
y or any person does any
((1) any officer or member of a seciet
In
~aet deciareé by the rules to be an offence.
an officer or a.
Explanatienw—‘Fer the purpose of this section,
ed to in the seetio n shall includ e past officer and past
member referr
member, as the case may be.
past member,
Punishment: 147. Every society, officer or past oifieer, mem‘her oi:
any other person. Who commi te an offence
for offences
employee of a society, or
under section hed 2
146 under section 146 shall, on conviction, be punis
(a) of that Seetion, with.
(a) if it is; anoifeaee under eiawme
nite six months,
impriSoumeut fer a term which may este
exte nd to five thou sand. rupees, or
or With fine which may
with both ;
the section, yvith
if it is an offence under eiause (b) of
ment for a term which may extend to one month,
imprison rupees,- or
to fire hund red
or with fine whieh may extend
With both ;
if it is an :ffcne‘: :nder clause ((3) ef that section, with fine
es ; '
which may e<tend to five hundred rztrpe
that sectien, With
if it is en ofi'ence under clause (d) 0‘5
fine which may extend to five hundred ru‘eeee ;,
$3219.19 section with
if it is an offence under clause ' (e) of
term whie h may exte nd to one year,
imprisonment for a y
_ _
or With finey or With both ;
eeetien, With
if it is en offence under clause (i) sf that ;
fifty riagees
fine Which may extend to two hundredan
63
(g) if it is an offence under clause {3 of that section, with fine
which may extend to five hundreé rupees ;
(h) if it is an ofienee under clause (11) of that section, with fine
which may extend to five hundred rupees ;
if it is an (fiance unde clause (5? of that section, With fine
w0
r-.
‘1'
which may extend to five hundred rupees ;
{j} if it is an offence under c]a,uSe (j) of that Section, With im-
prisonnient for a term Which may extend :0 one month or
With fine Which may extend to five hundred rupees, or
with both ;
(k2 if it is en offence under clause (1:) of that section, With impri-
sonment for a term which may extend to one year, or with
fine Which may extend to two thousand ruIees, 01' With
both ;
(i) if it is an offence under clause f]) of that ~ection, With
fine which may extend to one hundred rupees ;
(m) if it is an ofl'ence under eiause (m) of that section, With
imprisnhment for a term Which may extend to six months
or with ‘fine which may extend to five hundred rupees,
e
or with hath ;
od
(n) if it is an ofl'ence under clause (n) of that section, with
imyrisonr’nent for a term which may extend to six months,
aC
or with fine Which may extend to one thousand rupees, or
with both ;
di
{0) if it is an ofi'ence under ciause (n) of that section, With
impriwémmeut for a term which n ay extend to two years,
In
01‘ with fine, or with both ;
(p) ifit is an efi‘ence under clause (p) of that section, with
imprisonment for a term Which may extend ’50 three years;
0: With fine, or with both ;
(q) if it is an offence under elaua-‘e (q) of that section, with
" fiine which may extend to two hundred and fifty rupees.
1:3 (1) No Ceurt inierier a that of a Chief Judicial Magis- Cognizance
trate er 8» Judicial Magistrate of jet Class shall try any offence under of offences.
this Act. '
(.2) .‘éé’otwithstanding anything contained in the Code of Criminal
Procedure, 1:473 it shall be lawful for a Chief Judicial Magistrate er a
Judicial Magistrate ef the First Class to pass a sentence of fine on any
person eonvietefl efan offence under clause {b} of section 146 as provided
under section 147‘ in exercise of his pen en's under section 29 of that (Vode.
(”3) N0 Court shall take cognizance of offence under clause (b)
of Section 14:6 and any other offences under this Act except upon a com-
plaint by an offieei' duly authorised by the Registrar in this behalf and
except with previous sanction of the State Government in case of offence
under clause (1)) of 146 and of the Registrar in the ease of other offence
under this hot:
CHAPTER XIII
APPEALS, REVIEW AND REVIfiION
Manipur 149 (1) The State Government shall constitute a. Tribunal called
State Gen
operative the Manipur State Co-operative Tribunal, to exercise the functions
Tribunal.
conferred on the Tribunal by or under this Act.
e
od
(2) The Presiding Officer, Revenue Tribunal appointed by the
State Government as such shall be deemed to be the Manipur State
aC
Co-opemtive Tribunal for the purposes of this Act.
di
(3) The Tribunal may call for and examine the record of any
In
proceedings in Which an appeal lies to it, for the purpose of satisfying
itSelf as to the legality or propriety of any decision or order passed.
If in any case, it appears to the Tribunal that any such decision or
order should be modified, annulled 0r reversed, the Tribunal may pass
Inch order thereon as it may deem just,
(4) Where an appeal or application is made to the Tribunal under
this Act it may, in order te prevent the ends of justice being defeated,
make such interlocutory orders pending the decision of the appeal or
application, as the case may be, may appear to it to be just and
convenient, or such orders as may be necessary for the ends of justice,
or to prevent the abuse of the process of the Tribunal.
(5) An order passed in appeal, or in revision under sub-lection (3),
or in review under section 150 by the Tribunal shall be final and
conclusive, and shall not be called in question in any Civil or Revenue
Court.
Exelanation :-—The Tribunal hearing an appeal under this Act
shall exercise all the powers conferred upon an appellate Court by
section 97 and Order X $1 in the First Schedule of the Code of Civil
Procedure, 1908.
65
Review of
of the
150. (1) The Tribunal may, either on the application orders of
the applica tion of any party interest ed, review its Tribunal
Registrar, or on
any case, and pass in reference thereto such order
own order in.
as it thinks just :
Provided that, no such application made by the party interested
has
shall be entertained, unless the Tribunal is satisfied that there
Which
been the discovery of new and important matter of evidence,
e
after the exercise of due deligenee was not Within the knowledg
of the applicant or could not be produced by him at the time when, its
order Was made, or that there has been some mistake or error, agparent
on the face of the record or for any other Sufficient reasons ;
Provided further that, no such order shall be varied or revised,
and
unless notice has been given to the parties interested to appear
be heard in support of such order.
by
(2) An application for review under the foregoing sub-section
shall be made Within ninety days from the date of the
any party,
e
communication of the order of the Tribunal.
od
Tribunal to
151‘ (1) In exercising the functions conferred on it by or under have power
of Civil
in a
aC
this Act, the Tribunal shall have the same powers as are ‘ vested Court.
Court in respect of,--—
di
(a) proof of facts by affidavit,
In
(b) summoning and enforcing the e.ttendaneeiof {my person and
examining him on oath,
(c) compelling discovery or the production of doeumentsfend
(d) issuing commissions for the examination of witneaaes.
(2) In the case of any such efficiavit, any officer appointed by the
Tribunal in this behalf may administer the oath to the deponent.
Appeals.
152. (1) An Appeal against an erder or decision under section
4,9,11,1'2,13,14,17,2139,35,733 and 105 shall 1ie,-—-
(a) if made or sanctioned or approved by the Registren'5 01' the
Additional or Joint Registrar on Whom powers of the
Registrar are conferred, to the State Government.
(1)) if made or sanctioned by any peracn other than the Regis-
trar,. or the Additional or Joint Regietram on whom the
powers of the Registrar are eonferred to the Registrar.
(2) An Appeal against an order or decision under sections '79, 85
and 88, and any order 13aseed by the Registrar for paying compensation
to a society, and any a:her order for which an appeal to the Tribune]
has been provided under- this Act eheh lie to the Tribune].
(3) An appeal under subsasetieh (1) us (2)3}4311336 filed within 'LWU
nmnths of the date of the communication of the erfier 01- deeieien. '
(«4) ,Seve 21-3 provided in this Act, no appeal shall lie against any
order, deeieien or award passed in accordance With this Act; am? every
Such order, decision er award shall be final, and Where any appeal has
been provided for, (my order passed on appeal shell be final and no
further appeal she‘ll lie against it.
Extension 153. In all cases in which it is provided under this Act that an
of period of appeal may be filed against any decision or order within a specified
e
period, the appellate ant hority may admit an appeal after the expiry of
limitation
od
by eppe‘fiate
authority such ‘perieé, if the appellant satisfies the appellate authority that he
in certain heal euffieient ezmse fe‘e net preferring the appeai within such peried.
aC
ensue.
“l'owm- of 154.1 (1) The Registrar may, ot' his own motion 01* an application,
State Govt. can fer and examine the records of any officer subordinate to him not
di
and Regis—
trar to mail
being Additional Registrar or Joint Registrar, and the State
Govemment may, of its own motion or: on application, can for and
In
for pmeea-
dings 'ef examine the records of the Registrar, Additionai Regie'rer 01‘ Joint
arahsrdinm e Registrar, in respect of any preeeedinge not being, 9, emceeding in
respect of Wdich an appeal has to the Tribunal, to satisfy himself or
officers and
to pan erdefs
there on. itself as to the regularity of such proceedings: or legality er propriety of
any decision or order made therein ; end if, in any case, it epeeers to
the Registrar or the State Government that any such decision er order
should be modified, annulled or remitted for reeeneideretion, he or it
may order aecordingly.
(2) ho order prejudicial to any 1331531)!) shall be phased under
euh=seetion (1) unless such person has been given an opportunity of
making his representation.
(3) The Registrar or the State GOVernment, es the case may be,
may sueeend the execution of the decision or order pending the
exercise of his or its power under subsection (1).
(4) The Registrar or the State Govamment, may award cost in
proceedings under this section to be paid out of the funds. of the society
er by such other party as the Registrar or the State Government may
deem fit.
Explanation : aThe State Government may nominate an officer not
below the rank of Secretary to the Government to exercise the powers of
the State Government under this section and section 152.”
Amendments
1. These sub-leetions and words were substitut ed for section 154 of the principal
14:.
Act by Man, Act No. 12 of 1984' section
)HAPTEH X IV
MTSQETLANEO US
155. (1) Unless otherwise provided
from a society 0r 5mm an officer by this Act, all sums due Rficovery of
or member or past member or a, sums due to
deceased member of a society as such to the Gove Government;
recovered according to the law rnment, may he
and unéer the rules for the time
in force for the recoVery of arre being
ars of land revenue.
(2) Sums due from a. society to the
under the foregoing subsection Government and recoverable
may he recovered, firstly from
property of the sxmiety, Secondly the
in the case of a society of" Whic
liability of the members is limited, h the
or the estate of deceased member
from the members or past members
s subject to the limit of their
and thirdly, in the 0335 of Societie liabitity,
s with unlimitefl liability, from the
members or past members or esta
te of deceased members.
(3) The liability of past mem
bers or estate of deceased memb
ers;
e
shah in MI cases be subject to the
provision of section 33
od
156. (1} The Registrar 011 any
empowered by him in this beha officer subordinate to him and Registrar’s
aC
lf may, subject to such rules power to
made by the State Govprnmen as may be
t, but Without prejudice to recover cer-
mode of recovery provided by any other tain sums by
01‘ under this Act, recOVer—
di
attachment
(a) any amount due under a and sale
decree or order of a Civil Cou
In
of property.
obtained by a society ; rt
(b) any amount due under a
decision, award or order
??egistrar, Arbitrator or Liq of the
uidator or Tribunal ;
(a I\ any sum awarded by way
of costs under this Act ;
(d) any sum ordered to be paid
to the aSSets of the society under
;
this Act, a: a. contribution
(e) any amount due under a cer
tificate granted by the Reg
under sub—saction (1)
or istrar
(2) of section 101 or und
section (1) of section 137 er sub-
; together With interest,
due on such amount or su
m and the costs of process if any,
attachment and sale or by the
by sale without attach
property cf the person aga ment of the
ins t Whom Such decree, decisi
on,
(2) The Rhgistrar or
the officer empowered
deemed, When exercising by him shall be
the powers under the for
When passing any order egoing subsection, or
on any application made
recovery. to be a. Civil Cou to him for such
rt for the purposes of arti
Schedule to the Indian Limita cle 182 in the First
tion Act, 190 8. ‘
(38
Power to 157. The State Government may, by general or specia
exempt l order, to
be published in the Official Gazette, exempt any
societies society or class of
from pro- societies from any of the provisions of the Act or
may direct that such ,
visions of provision shall apply to such Society or class
Act. of societies with such
ziilodifiaations not efiecting- the Substance thereof as
may be specified in.
t e or er:
Provided that, no order to the prejudice of any
Society shall be
passed, Without an opportunity being given to such societ
its case;
y to represent
~ 1
13 mm in 3 etc. 158. (1) No society shall open a branch or a piece of
of societies business
outside the outside the State of Manipur end no co-operative societ
y registered upon
State. any law in any other State open a branch or a
place of business in the
State of Menipur without the permission of the RegiStrer;
e
(2) Every (foaoperative society registered under any law
in
other State, and permitted to open a branch or a piece of busines any
od
the Menipur State under the»- foregoing- subsection,
s in
01' which has
a
branch or a place'of businese'v in the Manipur State at the
aC
commence-
ment-of this Act shall, Within three months‘i'rom the openin
g of such
branch or place of business or from the commencement of
this Act as
di
the case may be, file With the Registrar a certified copy
of the bye-iawe
and amendments and, if these are not written in English
language, a
In
certified translation thereof in English or Hindi and
shall submit to
the Registrar such returns and information as are submit
ted by similar
societies registered under this Act in addition to those
which may be
submited to the Registrar of the State where such society
is registered.
Handing: 159. (1) On the election of a new Board and its Chairman the
over resume retiring Chairman, in Whose place the new Chairman is elected shall
and proper. hand over eharge of the affine of the Beard and all papers and property,
by to new
Chairmen if any, of the society in possession of the Board or any officers thereof,
on election, to thernew Chairman of the Board.
(2) If the retiring Chairman fails or refuses to hand over charge,
or to handover. the: papers and property of the society aseforesaid,
the Registrar, or any person empowered by him in this behalf, may
by order in writing dimct him to forthwith hand over such charge
and property.
(3) If the retiring'CheiI-man to whom a. direction has been isaaued
as aforesaid does not comply withjuch direction, he shall on conviction
be punished With Iimpie imprisonment Which may extend to one month,
er with fine which may extend to five hundred rupees, or with both,
and the Registrar may on the retiring Chairman’s failure to comply
with such direction, take order for seizing the records ami property ‘
and to hand over to the new Chairman, in the manner provided in
section 80.
Registrar 160. The Registrar, a. person exercising the power of the Registrar,
and other ‘ a person autherisedto audit the accountsef a. society under seetion 81,
officer to be
public ler-
or to hold an enquiry under section 83,- or to make au‘inspection under
vents, section 84, and a person appointed as an administrator under section 78,
69
or as a. nominee or board of nominees under section 93, or as a Liqui-
dator under section 103, shall be demeed to be public setVunts within
, the meaning of section 21 of the Indian Penal Code.
161. No suit, prosecution or other legal proceedings shall lie Indemnity
against the Registrar or any perSOn subordinate to him or acting on his for acts
done in
authority, in refipect of anything in good faith done, or purported to
good faith.
have done by him by or under this Act.
162. (1) Save as eXpreSsly provided in this Act, no Civil or Bftr of juris-
Revenue Court shall have any jurisdiction in respect 055—“ diction of
Courts=
(a) the registration of a, society‘or its bye-iaws, or the amendment
of its bye-Iews, or the dissolution of the board of a society,
or the management of the society on dissolution in
thereof ; or
(b) any dispute required to be referred to the Registrar, or
his nominee, or board of nominees, for decision ;
{(2) any matter concerned With the winding up and dissalution
of a society.
e
(2) Whilea Society is being wound up, the Suit or other legal
od
proceedings relating to the business of such society shall be proceeded
With or instituted against the society or any member thereof, or any
aC
matter touching the afi'airs of the society, except by leave of the
Registrar, and subject to Such terms as he may impose.
di
(3) All orders, decisions or awards passed in accordance with this
Act or the rules, shall, subject to the provisions for appeal or revision
In
in this Act be final, and no such order, decision or award shall be liable
to be challenged, set aside, modifiefi, revised or declared Void in any
Court upon the merits, or upon any other ground whatsoeVer except
for want of jurisdiction.
163. No Suit shall be instituted against a Society, or any of its No tice
officers, in respect of any act touching the business of the society, until necessary
the expiration, of two months next after notice in writing has been in suits.
delivered to the Registrar or left at his office, Stating the causes of
action, the name, deacription and place of residence of the plaintifi' and
the relief which he claims, and the plaint shall contain a statement that
such notice has been so delivered or left.
164. (1) The State Government may, for the Whole or any part Rules.
of the State and for any society or class of Soeieties, make rules for the
conduct and regulation of the business of such society or class of soeie-
\.
ties and for carrying out the purposes of this Act.
‘2) In particular, and without prejudice to the generality" of the
foregoing power, such rules may—
(i) subject to the provisions of section 3, prescribe the designa-
tion of officers who shall exercise powers vested in the
Registrar ;
(ii) prescribe the forms to be used and the conditions to be
complied with in the making of applications for the regis- /
tration of a society under section 8 and the procedure in (
the matter of such application ;
(iii) prescribe the matters in respect of Which a society may
make, or the Registrar may direct a society to make,
bye-laws and the procedure to be followed in making,
altering and abrogating bye-Iaws and the conditions to be
satisfied prior to such making, alteration or abrogation
;
(iv) prescribe the procedure to be followed and conditions to be
observed for change of name or liability, amalgamation,
transfer, division, conversion, or reconstruction of society
;
(v) prescribe the form of and procedure for an application
under section 19 and the procedure for reconstruction of
a
society under that section ;
e
(vi) prescribe the conditions to be complied with by a person
od
applying for admission or admitted as a member and
provide for the election and admission of members and the
aC
payment to be made and the interests to be acquire
d
before the exercise of the right of the membership ;
di
(vii) prescribe in the case of a federal society, or class of federal
societies, the proportion of individual members or society
In
members in such society or class of societies and the propor-
tion of individual members to society members in the board
of such society or class of Such societies ;
(viii) subject to the provision of section 28, prescribe the maxi-
mum number of shares or portion of the capital of a society
which. may be held by a member ;
(ix) prescribe the procedure for the admission of joint members,
members of a joint Hindu undivided family, and minors and
persons of unsound mind inheriting the share or interest of
deceased members and provide for their rights and liabilities ;
(2:) provide for the Withdrawal, removal or expulsion of members,
and for the payments to them and for the liabilities of past
members and the estate of deceased members ;
(xi) prescribe the conditions and procedures for the transfer of
share or interest ;
(xii) provide for the nomination of a person to Whom the share
or the interest of a deceased member may be paid or
transferred ;
(xiii) provide for ascertaining the value of a share or interest of a
past member or deceased member ;
(xiv) prescribe the payments to be made and the conditions to be
complied With by members applying for loans. the period
for which loans may be made, and the amount which may
be lent to an individual member ;
71,
(XV) provide for the procedure for registering the address'of a
society and the change of its address.
(xvi) prOvide for the formation and maintenance of a registe
r of
members, and where the liability of members is limited by
shares, of a register of shares and a. list of members ;
(xvii) provide for securing that the share capital of any society
shall be available in such a. Way as may be necessary to
secure that the share shall not appreciate in value and that
necessary capital shall be available for the society as requirec’;
(xviii) provide for the procedure to be adopted by a society
with
limited liability in order to reduce its share capital ; '
(xix) prescribe the period for and terms upon Which Government
aid may be given to societies and terms under which the
State Government may subscribe to the share capital of
and guarantee the payment of the principal of and interest
on debentures issued by societies ;
(xx) regulate the manner in which funds may be raised by a
e
society or class of societies by means of shares or debenture
od
or otherwise and the quantum of funds so raised ;
(xxi)
aC
prescribe the limits for loans to be granted bya. society
or class of societies against different class of securities or
without security and the procedure for granting loans ; .
di
(xxii) prescribe the manner of recalling a. loan ;
In
(xxiii) prescribe the limits for granting credit by
a. non-credit
society or a. class of non~credit Societies ;
(xxiv) prescribe the pfohibitions and restrictions subjec
t to Which
societies may trade or transact business with persons Who
are not members ;
(xxv) preacribe the conditions on which any charge in favour
of a
society shall be satisfied and the extent to Which and the
order in Which the property to the charge shall be used
in
its satisfaction ; A
(xxvi) provide for giving reasonable notice of the charge under
section 48 ;
(xxvii) prescribe the procadure by Which a sociegy shall calculat
e
and write off bad debts ;
(xxviii) prescribe the sums Which, in addition to those
referred to in
section 65(1), shall be deducted from profits before arrivin
g
at the profits for the purpose of section 65(2) ; ‘
(xxix) provide for the formation and maintenance of reserv
e fund,
and the objects to which such fund may be applied and for
the investment and used of any fund including reserve fund
under the control of a society ;
72
(xxx) prescribe the procedure and conditions under which profits
may be distributed ;
(xxxi) prescribe the rate at Which a. society shall contribute to:
wards the educational fund of the State Federal Society
under section (38 ; '
(xxxii) define the co-operative purpose for Which a. society shall,
under section 69‘, utilise its fund ;
(xxxiii) prescribe the mode of investment of funds of a society under
section. 70 end the proportion of inVestmtnt in any ecurity
or class of securities ;
(xxxiv) provide for the payment of cotribution to any provident
fund Which may be established by a, society for 1the benefit
of officers and servants employed by it and for the adminis.
tration of such provident fund ;
e
(xxxv) prescribe the procedure and conditions for the exercise by
od
a federal society of the powers conferred by this Act ;
(xxxvi) provide for general meetings of the members, for the pro-
aC
cedure at such meetings and the powers to be exercised by
such meetings ;
di
(\xxxvii) prescribe the conditions in which a. membrr of a. society may
be disqualified from voting ;
In
(xxxvi‘ii) provide for the appointment, suspension and removal of the
Board membere and other officers and for the appointment
of administrator under section 78 and prescribe procedure
of the meeting of the Board end for the powars to be
exercised and the duties to be performed by the Board,
administrator and other officers ;
(xxxix) prescribe qualifications for members of the Board and
employees of a. society or class of societies (duties to be
performed by, and several and joint lialibilities therefor, of,
such members) and the conditions of service subject to Which
persons may be employed by societies ;
(xl) prescribe the returns to be submitted by a society to the
Registrar and provide for the persons by whom and the
form in Which such returns shall be submitted ;
(xli) provide for the persons by Whom and the form in Which
copies of documedts and entries in books of societies may
be certified and the charges to be levied for the supply of ,
copies thereof ;
(xlii) provide for the procedure to be adopted by the Registrar in ..
the cases Where the taking of possession of books, documents,
securities, cash and other properties of a society or of a.
society the afiairl of which have been ordered to be wound
up, by the Registrar or by a. person entitled to the same is
resisted er obstructed;
73
(xliii) provide for the procedure to be adopted for taking possession
of books, documents, securities, cash and other properties
of a. society by a, person acting under secttons 81, 83 end
84 in cases where misappropriation of funds, breach of
trust or fraud has been committed or where it is suspected
or apprehended that the books, documents, securities, cash
and other properties are 11];er to be tampered With or
destroyed or rempved,
(311v): iphl'psclfibe the. account books to be kept by e soeiety or
class of Societies ;
(xlv) » prescribe the procedure for conducting an audit, the matters
on Which the auditor shell submit a. report, the form in
whichthe statement of accounts shall be prepared for his
audit, the limits within which the auditor may examine the
monetary transactions of a. society, the form of audit
memefendumfl and report and the chargee, if any, to be
paid by a. society for audit ;
(3114): — prescribe theprocedure for appointment of auditors under
section 81 ;
(xlvii) ' prescribe the form for the rectification of defects discovered
in the course of audit, inspection or inquiry ;
e
od
(elviii) prescribe the procedure and principles for the conduct of
inquiry fender section§3 and inspection under section 84 ;
aC
(xlix) prescribe the procedure for apportioning the cost of4 inquiry
and in_epection and for, assessing damages against. delinquent
di
premgtere fujnderh section. 88 end for recovery of cost and
In
damage!
(.1) prescribe the manner in which appointment shall be, made
end control exercised by and the number of persons com-
prising, and functions to be performed by, the authority
constituted under section 90, the manner of election and
nomination of such persons, the fees to be paid to such
authority and the manner of such payment and the procedure
for and the method of calculating any cost, charges or expen-
ses required to be levied under this Act or the rules ;
(ti) of
provide for appointment of the Registrar’s nominee or board
nomineeS, procedure to be followed in proceedings before
the Registrar or his nominee or board of nominees and for
fixing and levying the expenses for determing the dispute
for enforcing the decisions or awards in such proceedings ;
(Iii) prescribe the form in which a. dispute: shall be referred to
the Registrar ;
(mi) provide for the issue and service of processes and for pro-
viding of service thereof;
'74
of claims and objection that
(3‘7) provide for the investigation
any attachment effected (under
may be preferred against
section 95) ; (é
(1V) prescribe the procedure for and the method of recovery of
any sums due under this Act or the rules ;
(lvi) prescribe the procedure to be followed for the custody of
property attached under section 9:) ;
(lvii) prescribe the procedure to be followed in the execution of
awards ;
deli-
(Iviii) prescribe the manner in which any property shall be
ions subject to which such
VPI‘ed to, and the term and condit
property shall be held by, a society under section 100 ;
sale of the pro-
(Iix) prescribe the procedure for attachment and
n
perty for the realisation of any security given by a perso
in the Course of eXecution proce eding s ;
e
conditions for the exercise of the
od
(1X) prescribe the procedure andsection 105 and the procedure to
powers conferred under
be followed by a Liquidator and provide for the disposal
aC
of surplus assets ;
hm) prescribe the matter in which an appeal shall lie
from the
di
;
order of a. Liquidator appointed under section 103
In
(lxii) prescribe the procedure and conditions for the issue, redemp.
sion of deben.
tion re-issue. transfer, replacement or conver
tures issued by a. society to which chapter X1 is applicable ;
(lxiii) prescribe the maximum amount of principal, the rate of
s
interest and other conditions for the guarantee of debenture
issaed by a society to which Chapter X1 is applicable ;
tment of
(lxiv) prescribe the qualifications and methods of appoin
the powers
an officer to efi'eet sale under Section 233 and
;
and functions which such an officer may exercise
e
(1“) prescribe for the appointment of a. receiver of the produc
section
and income of the mortgaged property for sale under
d,
133. the conditions in which he may be appointed or remove
e and
exercis
or the powers and functions which he may
which he
the expenses of management and remuneration
may receive ;
taken
(vai) precribe the circumstances in which action may be under
by a Land Development Bank agains t a mortg agor
section 133 (2) ;
prescribe, in case of sale of immovable property under
(lxvii)
Chapter XI—
(a) the procedure for proclamation and conduct of the
sale and the conditions on which an attempt of sale
may be abandoned ;
(b) the method of calculating the expenses
incidental to
the sale or attempted sale ;
(c) the procedure for the receipt of deposit and dispos
al
of the proceeds of sale ;
(d) the procedure for a resale if any attempted
sale is
abandoned or the purchase money is not deposi
ted
within the presoribed time aid the penalty to be levied
against the purchaser who fails so to deposit the pur-
chase money ;
(e) the form and method of disposal of money by a. Land
Development Bank under section 135 ;
(f) the form of sale certificate under section 136
;
(g) the procedure for the delivery by the
property purchased to the purchaser Court of the
under section 136;
(h) the form of the notice referred to in
section 143 ; and
(i) the fee payable for the service of such notic
manner of serving such. notic
es and the
e on, and of the trans-
mitting landlords’ fee to, the landlord
e
named in such
od
notice: ;
(vaiii) prescribe the time within whic
h and the
to which property purchased by a Lan procedure according
aC
d Development Bank
at a sale of immovable property unde
r Chapter XI shall be
disposed of by the bank ;
di
(ixix) prescribe the procedure to be
followed in presenting and
deepoeing of appeals ;
In
(lxx) pnescribe the qualifications of
the members of the Tribunal ;
(lxxi) presaribe the method of communic
ating or publishing any
order, decision or aWard required to
be communicated or
published under this Act or the Rules ;
(lxxii) prescribe in the case of ?appeale
lyin
ment the authority to which powe g to the State Govern-
r of hearing appeals may
be delegated;
(lxxiii) provide that the contraventio
n of any of the rules shall be
an offence under the Act ;
(lxxiv) provide for all other matt
ers expressly required or allowed
by this Act to be preteribed by rule
s ;
(3) The power to make rules conf
?to the condition of the rules bein erred by this section is subject
g made after previous publication
;
5g (4). All rules made under
this section shall be laid for
not less
: the Legislature may make dur
ing the Session in which the
bid or the session immediately foll \
owing. 'y' 81‘930
76
Repeal, u-
ving and 165. (1) The Assam Cooperative Societie
1950) in its application to the Stat s Act, 1949 (Act 1 of
construction, e of Manipur is hereby repealed ;
Provided that, the regeal shall not
the Act so repealed and anything
efl'ect the previous operation 9;
done or action taken or deemeqJ
have been done or taken (inc of
luding any appointment or dele
made, a publication or other docu étit/
ment filed, certificate of registration
granted,~ agreements executed, noti
fication, order, direction or noti
issued, regulation. form or bye-laws fram ce
ed mile made or deemed to be
made or proceeding instituted befo
re apy Registrar, Arbitrator,
Liquidator or Tribunal or other
Officer, authority or person, by
under the pgovisionsof that or
Act, shall, in so far
as it is not inconsistent
with the provisiong ,of this Apt,
be deemed to haVo been done
taken under the corresponding provisio or
ns of this Act, and shall continue
in force unless and, until superseded
by anything done or any action
taken under, the Act.
(2) Aeoordingly, all societies register
ed or deemed to be registered
under_ the Act repealed the registra
tion of which is in force at the
commencement of this Act shall on such
be registered under this Act and
commencement be deemed to
all proceedings pending immediat
before such eommenoement before any ely
Registrar, Arbritator, Liquidator
or Tribunal or other officer, authority
e
the repealed Act shall stand tran
01‘ person under the provisions of
od
sferred, where necessary, to tho
RegliystrartpArbitrator, Liquidator or
Tribunal or other corresponding
Officeit, authority‘under this Act and
if no such officer, authority or
aC
person/exiStg 017 if there be a doubt
as,
authority or persons to such officer, auth to the corresponding officer,
ority or person as the State
Government may designate and shal
di
l be continued and disposed of
before such officer, authority or person in
accordance with theprovisions
of this Act.
In
(3) Any reference to the Act repealed or
or toany officer, authority or pers to any provisions thereof
on entrusted with any functions
thereunder, in any law for the time
being in force or in any instrument
or document, shall be, construed where
neoesary, as a reference to
this Act, or its relevant provisions unde
r this Act, and the corresponding
officer, authority or person, as the case
may he shall have and exercise
the functions under the repealed Act or under the instrument
document. or
Companies 166. For the removal of doubt, it is
Act not to provisions of the Companies Act, 1956 hereby declared that the
aPPly shall not apply to loeieties
registered, or deemed to be registered under thieA
et.
CHAPTER xv
manner) COOPERATIVE BANKS
16-7; Notwithstanding anything containe
of an insured co-operative bank- d in this Act, in the case
“J? ~"" ~“' ,9“ a,
(i) an order for the winding up, or an 'brder sanctioning a
Scheme of compromise or arrangement, or of amalgamation,
or recenstructien (including division or reorganisation), of
the‘ bank may be made only With the previous sanction in
writing of the Reserve bank of India ;
(if) an order for the Winding up of the bank shall be made by
the Registrar if so required by the Reserve Bank of India, in
the circumstances referred to in 1[sect 13-D] of the 2[Deposit
Insurance and Credit Guarantee t30rpomtion] Act, 1961;
iii) if so required by the Reserve Bank of India. in the public
interest or for preventing the affairs of the bank being con—
ducted 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 supersession (removal) of
the committee of management and the appointment of an
Administrator therefor for such period or periods, not
exceeding five years in the aggregate, as may from time to
time be specified by the Reserve Bank of India, and the
Administrator so appointed shall, after the expiry of his
term of office, continue in office until the day immediately
preceding the date of the first meeting of the new committee ;
(iv) no appeal, revision or review shall lie or be permissible
against an order such as is referred to in clauses, (i), (ii)
or (i) made with the previous sanction in writing or on
the requisition of the Reserve Bank of India. and such order
e
or sanction shall not be liable to be called
od
in question
in any manner ; and
(v) the liquidate: or the insured oo-operetive bank or transferee
aC
bank, as the case may be, shall be under an obligation to
repay the ”[Deposit Insurance and Credit Guarantee Corpo-
petion] established under the ‘[Deposit Insurance and Credit
di
Guarantee Corporation] Act, 1961, in the circumstances.
In
to the extent and in the manner referred to in section 21 of
that Act.
Explanation :—For the purposes of this section “A Go-operative
rank” means a. bank as has been defined in the 5[Deposit Insurance and
Credit Guarantee Corporation] Act, 1961.
(ii) “Insured Co-operative Bank” means a. society which is an
insured bank under the provisions of the 6[Depoeit Insurance
and Credit Guarantee Corporation] Act, 1961.
(iii) “Trensferee Bank” in relation to an insured co-operative
bank means a, co-operative bank,
(a) with which such insured oo-operative bank is amalgamated, or
(b) to which the assets and liabilities of such insured co-operetiva
‘ bank are transferred, or
(G) into which such insured co-operative bank is divided or con-
verted under the provisions of sections 17 and 18.
7f t
/ Amendment
1) The word. figures and letter were subetituted for the word and figures "section
L; 130” by Man. Act12 of 1984, aeoton 15.
2, 3, 4, 5. 6 z— The Words “Deposit Insurance and Credit Guarantee Corporation
were substituted for the words "Deposit Insurance Corporation” by ”
Man, Act
12 of 1984, sect. 15.
India Code, Government of India. Text fetched 10 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.