The Meghalaya Co-operative Societies Act, 2015 (Act No. 11 of 2015)

Postal Registration No. N. E.—771/2006-2008

The Gazette of Meghalaya
EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 137 Shillong, Wednesday, October 7, 2015 15th Asvina, 1937 (S. eJ~

PART-IV
GOVERNMENT OF MEGHALAYA 

LAW (B) DEPARTMENT 

ORDERS BY THE GOVERNOR

NOTIFICATION

The 7th October, 2015.
No.LL(B).3/2001/337.—The Meghalaya Co-operative Societies Act, 2015 (Act No. 11 of 2015) is 
hereby published for general information.

MEGHALAYA ACT NO. 11 OF 2015

(As passed by the Meghalaya Legislative Assembly)
Received the assent of the Governor on 7th October, 2015.

Published in the Gazette of Meghalaya Extra-Ordinary issue dated 7th October, 2015.

THE MEGHALAYA CO-OPERATIVE SOCIETIES ACT, 2015.

An

Act

to facilitate the formation and working of Co-operative Societies as accountable, 
competitive, self reliant, business enterprises based on thrift, self-help and mutual aid 
and owned, managed and controlled by members for their economic and social 
betterment and in accordance with the relevant Directive Principles of State Policy of 
the Constitution of India and for matters connected therewith and incidental thereto.

Be it enacted by the Legislature of the State of Meghalaya in the Sixty-fifth Year 
of the Republic of India as follows:-



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Short title, 
extent and
commencement.

Definitions.

CHAPTER-I
PRELIMINARY

1. (1) This Act may be called the Meghalaya Co-operative Societies 
Act, 2015.

(2) It extends to the whole of Meghalaya.

(3) It shall come into force on such date as the State Government 
may, by notification in the official Gazette, appoint.

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

(a) “Act” means the Meghalaya Co-operative Societies Act, 
2015;

(b) “Administrative Council” or “Board of Directors” means 
an intermediate body between a Managing body or 
Executive Committee by whatever name called and 
include the General Assembly of a registered Co­
operative Society;

(c) “Affiliating Cooperative Society” means the registered Co­
operative Society of which a particular Cooperative 
Society is a member;

(d) “Affiliated Co-operative Society” means the particular Co­
operative Society which is a member of the affiliating 
Cooperative Society;

(e) “Apex Society” means a Cooperative Society whose area 
of operation extends to the whole State of Meghalaya and 
which has, as its principal object, and the provision of 
facilities for the operation of other Co-operative Societies 
affiliated to it and classified as an Apex Society by the 
Registrar;

(f) “Area of operation” means the area from which the 
membership is drawn or as specified in the bye-laws of 
the Co-operative Society;

(g) “Assistant Registrar” means an Assistant Registrar of 
Co-operative Societies appointed under this Act;

(h) “authorized person” means a person referred to as such 
in provision of section 10(2)(b);



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(i) “board” means the board of directors or the governing 
body of a Co-operative Society by whatever name called 
to which the direction and control of the management of 
the affairs of a society is entrusted;

(j) “Bye-law” means the registered bye-law under this Act 
and includes a registered amendment of such bye-law;

(k) “Capital to Risk Weighted Assets Ratio” means the 
Capital adequacy norms stipulated by the Reserve Bank 
from time to time ;

(l) “Chartered Accountant” means a member of the Institute 
of Chartered Accountants under Chartered Accountant 
Act, 1949 (38 of 1949);

(m) “Co-operative Demand Certificates” means a 
Certificate as defined under this Act;

(n) “Co-operative Officer” means a person appointed under 
the provision of this Act for the purpose of supervision, 
inquiry, inspection, audit of the accounts of a Registered 
Co-operative Society and any other matter that may be 
delegated by the Registrar;

(o) “Co-operative Society” means a Co-operative Society 
registered or deemed to be registered under this Act 
relating to Co-operative Societies for the time being in 
force;

(P) “Co-operative Union” means a registered Apex Co­
operative Society which has its principal object the 
undertaking of Cooperative education, propaganda, 
training and extension of co-operative services;

(q) “Co-operative Year” means the period beginning and 
ending on such dates as may be fixed by the Registrar 
for the purpose of drawing up the balance sheet of a 
registered Co-operative Society;

(r) “Delegate” means a person elected by a group of 
individual members to represent in the general body by 
the Co-operative Society in accordance with the bye-laws 
of the Co-operative Society;

(s) “Deputy Registrar” means a Deputy Registrar of Co­
operative Societies appointed under this Act;

(t) “Deposit Insurance Corporation” means the Deposit



PART - IV] THE GAZETTE OF MEGHALAYA, (,EXTRAORDINARY) OCTOBER 7, 2015 808

Insurance Credit Guarantee Corporation established
under Section 3(1) of the Deposit Insurance and Credit 
Guarantee Corporation Act, 1961(47 of 1961);

(u) “Dividend” means the amount paid, out of the profits of a 
co-operative society, to a member in proportion to the 
shares held by him in accordance with the bye-laws of 
the co-operative society;

(v) “Employee” means a person, not being an office-bearer, 
employed by a registered co-operative society oh a salary 
or similar form of remuneration other than advance 
patronage dividend or payment for goods sold or through 
such co-operative society;

(w) “Family” means a person, his spouse, his children, 
dependent on him and his other relatives dependent on 
him and jointly residing with him;

(x) “Farming Society” means a co-operative society formed 
with the object of promoting development of land and 
better methods of cultivation, and includes farming 
society, tenant farming co-operative society, collective 
farming co-operative society, joint farming co-operative 
society, irrigation co-operative society and a crop 
protection co-operative society;

(y) “Financing Institution” means a National or State level 
co-operative institution or organization, which provides 
financial assistance or advance or loan to a co-operative 
society or an individual;

(z) “General Assembly” means the supreme body of a 
registered co-operative society as defined in Section 30

. (i);

(za) “Housing Society” means a co-operative society, the 
object of which is to provide its members with open 
plots for housing, dwelling houses or flats; or if open 
plots, dwelling houses or flats are already acquired to 
provide to its members with common amenities and 
services;

(zb) “Industrial Society” means a co-operative society formed 
with the objects of promoting development of small scale 
industries, such as carpentry, blacksmitheiy, 
goldsmithery, producing finished goods and products 
from raw materials of any kind;

(zc) “Joint Registrar” means a Joint Registrar of Co-operative



PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 809

Societies appointed under this Act;

(zd) “Joint Liability Group” means an informal group 
comprising of four to ten individuals coming together for 
the purpose of availing bank loan on individual basis or 
through group mechanism through co-operative 
societies against mutual guarantee;

(ze) “limited liabilities” means a liability of the member
limited by the bye-laws of co-operative society to the 
amount, if any, unpaid on the shares respectively held 
by the member or to such amount as they may, 
respectively, undertake to contribute to the assets of the 
society in the event of its being wound up;

(zf) “liquidator” means a person appointed as liquidator 
under this Act;

(zg) “Managing Body” or “Board of Directors” means an 
elected body to which the management of the affairs of a 
registered co-operative society is directly entrusted and 
does not include the Administrative Council;

(zh) “Marketing Society” means a co-operative society formed 
for the marketing and procurement of agricultural or 
other produce and including among its objects, the 
supply of the requisites of such production;

(zi) “Member” means a person admitted to membership after
registration of a co-operative society in accordance with 
the bye-laws and rules of the co-operative society and 
includes a promoter and the State Government when it 
subscribes to the Share Capital of a co-operative 
society;

(zj) “Multipurpose Society” means a primary co-operative 
society, the object of which is to provide various services 
including services related to credit, business, industry 
and consumer durables to its members;

(zk) “Multi-State Co-operative Society” means a co-operative 
society with objects not confined to one State and 
registered or deemed to be registered under any law for 
the time being in force relating to such co-operative;

(zl) “National Bank” means the National Bank for
Agricultural and Rural Development established under 
Section 3 of the National Bank for Agricultural and 
Rural Development Act, 1981 (Central Act No. 61 of
1981);



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(zm) '“Nominal Member” means a person admitted to 
membership as such after registration in accordance
with the bye-laws;'

(zn) “office bearer” means a member duly elected by the 
General Assembly of a registered co-operative society, 
according to its bye-law, to any office of such co­
operative society, including the office of the President or 
Chairman, Vice-President or Vice-Chairman, Managing 
Committee members or Member of Board of Directors 
and Treasurer;

Provided that any officer appointed by Government of 
Meghalaya to hold charge of any office of registered co­
operative society shall be deemed to be an office bearer 
unless specifically stated to the contrary;

(zo) “prescribed” means prescribed by rules made under 
this Act;

(zp) “Primary Agricultural Credit Society” means a co­
operative society as defined under clause(cciv) of Section 
5 of the Banking Regulation Act, 1949 (Central Act 10 of 
1949) and includes a Multipurpose Co-operative 
Society;

(zq) “Processing Society” means a co-operative society 
formed with the object of producing goods by 
mechanical or manual process and an industrial co­
operative society and a co-operative society for the 
processing of agricultural commodities;

(zr) “Promoter” means an eligible person or a registered co­
operative society signing the application for registration 
of a co-operative society;

(zs) “Primaiy Society” means a co-operative society whose
membership consists exclusively of individuals and self 
help groups;

(zt) “A Self Help Group” is a homogeneous group of rural
poor comprising of not more than twenty members 
formed voluntarily to save small amounts out of their 
earnings and to form a Corpus to be lent to the 
members of such group;

(zu) “Registered Society” means a co-operative society 
registered or deemed to have been registered under this 
Act and includes a society formed after amalgamation of 
such two or more cooperative societies or division of 
such an existing co-operative society;



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 811

(zv) “Registrar” means a person appointed to perform the
duties of the Registrar of Co-operative Societies under 
this Act;

(zw) “Representative” means a member of the society to 
represent the co-operative society in other co-operative 
societies;

(zx) “Reserve Bank” means the Reserve Bank of India
established under Section 3 of the Reserve Bank of 
India Act, 1934 (Central Act 2 of 1934);

(zy) “Reserve Fund” means funds created by the co-operative
society out of its net profit every year as provided under 
this Act;

(zz) “rules” means rules made or deemed to be made under
this Act;

(zza) “State Level Co-operative Society” means a co-operative 
society having its area of operation extending to the 
whole of a state;

(zzb) “Society” means a co-operative society registered or 
deemed to be registered under this Act;

(zzc) “State Act” means any law made by the Legislature of a 
State;

(zzd) “State Cooperative Bank” means an Apex Co-operative 
Society engaged in the business of banking;

(zze) “State Government” means the Government of 
Meghalaya unless expressed otherwise;

(zzf) “State” means the State of Meghalaya;

(zzg) “Tribunal” means a body of officials appointed by the 
State Government to arbitrate or settle disputes 
involving recovery of overdue loans;

(zzh) “Urban Bank” means the primary Co-operative Urban 
Bank engaged in the business of banking under the 
Banking Regulation Act, 1949 (Central Act 10 of 1949) 
as applicable to co-operative societies; and

(zzi) “Working Capital” means funds at the disposal of a co­
operative society inclusive of paid up Share Capital, 
deposits, funds built out of profits, and money raised by 
borrowing and by other means;



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 812

The Registrar.

Co-operative 
Societies which 
may be 
registered.

Age,
qualification 
of a member.

Conditions o f 
registration.

CHAPTER-II
REGISTRATION OF CO-OPERATIVE SOCIETIES

3 (1) The State Government may appoint a person to be the 
Registrar of Co-operative Societies for the whole state of Meghalaya 
or any portion of it for the registration, supervision, assistance, 
counsel and control of registered co-operative societies and for 
development of the co-operative movement and control over co­
operative education, incorporation, regulation and winding up of co­
operative societies based on the principles of voluntary formations, 
democratic member control, member economic participation, 
autonomous functioning and with such other powers and 
responsibilities as may be provided under this Act or rules or bye­
laws framed thereunder.

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

4. (1) A co-operative society's objective is to promote the economic 
interest or general welfare of its members or of the public through 
self help and mutual aid in accordance with co-operative principles 
or a co-operative society established with the object of facilitating 
the operations of any co-operative society may be registered under 
this Act with limited liability.

(2) No co-operative society shall be registered if in the opinion of 
the Registrar, its declared objects are unlikely to be achieved or it is 
likely to be economically unsound or it may have an adverse effect 
upon any registered co-operative society or the Co-operative 
Movement as a whole.

5. No person shall be an individual member of a registered co­
operative society unless he is eighteen years of age and above; 
provided that the bye-laws of a co-operative society may prescribe a 
higher minimum age.

6 (1) No co-operative society, other than a co-operative society of 
which a member is a registered co-operative society shall be 
registered under this Act which does not consist of at least fifteen 
eligible persons and in cases where the primary objects of the co­
operative society includes the raising of funds to be lent to its 
members, and where all the applicants are individuals, the 
applicants shall reside or own immovable property in the same 
town, village or group of villages or belong to the same class or 
pursue the same occupation.

(2) The word “limited” shall be the last word in the name of every 
co-operative society with limited liability registered under this Act.



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Restrictions on 
acquisition o f
Share in a Co-
operative
Society.

Power of 
Registrar 
to decide 
certain 
questions.

Liability.

Application for 
Registration.

Registration.

7. (1) No member of a registered co-operative society shall hold 
more than such portion of the Capital of the co-operative society as 
may be prescribed by the rules, or the bye-laws of the co-operative 
society.

(2) No member shall be allowed to acquire an additional share 
until he has paid in full the value of the whole or that portion of his 
shareholding which he is required to pay in accordance with the 
bye-laws of the co-operative society.

8. All disputes regarding membership for the purpose of the 
formation, registration or continuance of a co-operative society 
under this Act shall be decided by the Registrar.

9. (1) Theo liability of a member of any co-operative society shall be 
limited.

10. (1) An application for registration shall be made to the Registrar.

(2) The application shall be signed -

(a) in the case of co-operative society of which no promoter 
is a registered Cooperative Society, by at least fifteen 
eligible persons; and

(b) in the case of co-operative society, of which at least one 
promoter is a registered co-operative society, by a duly 
authorized person on behalf of such registered co­
operative society and at least one other individual 
promoter or one other duly authorized person on behalf 
of another registered co-operative society.

(3) The application shall be accompanied by four copies of the 
proposed bye-laws of the Cooperative Society signed on behalf of the 
promoters by the President of the inaugural General Meeting. 
Promoters by whom or on whose behalf such application is made 
shall furnish such information in regard to the co-operative society 
as the Registrar may require and they shall be liable to the full 
extent of the share money which they have undertaken to subscribe 
with effect from the date of registration of the co-operative society.

11. (1) The Registrar shall decide all questions as to whether the 
application complies with the provision of this Act and rules made 
thereunder and whether the objects of the co-operative society are 
in accordance with section 4.

(2) When he is satisfied that the application is in order under 
sub-section (1) and the proposed bye-laws are not contrary thereto, 
he may register the co-operative society and its bye-law:



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 814

Evidence o f 
registration.

Amendment of
the Bye-laws o f 
a registered co­
operative 
society.

Provided that the Registrar shall have powers to register the 
bye-laws with such modifications as he thinks necessary to bring 
about uniformity in the main bye-law with provisions of the bye­
laws of other co-operative society which have similar objects or 
functions.

(3) The Registrar shall endorse the bye-laws in token of 
registration. Each Cooperative Society shall have a copy of its bye­
law so endorsed.

(4) If the Registrar refuses to register a co-operative society or 
an amendment of the bye-laws of a registered co-operative society 
he shall record his reasons in writing and communicate these 
reasons and his decisions to the promoters or the Secretary of a 
registered co-operative society within three months from the date of 
receipt of the application for registration by a registered letter to 
their office. The Registrar may at any time review his orders in this 
respect:

Provided that if the application for registration is not disposed 
of within the specified period of three months or the Registrar fails 
to communicate the order of refusal within that period, the 
application shall be deemed to have been accepted for registration.

12. A certificate of registration signed by the Registrar shall be 
issued to the co-operative society and shall be conclusive evidence 
that the co-operative society therein mentioned is a co-operative 
society duly registered under this Act and that its bye-laws are as 
attached to the Certificate, unless it is proved that the registration 
of the co-operative society has been cancelled or that amended bye­
laws have been registered or that the copy of the certificate of Co­
operative Society or bye-laws has been tampered with.

13. (1) No amendment of the bye-law of a registered co-operative 
society, whether by way of addition, alteration, omission, rescission 
or change of name shall be valid until such amendments has been 
registered under this Act.

(2) Every proposal for such amendment shall have to be 
approved by a resolution at a meeting of the General Assembly in 
accordance with the bye-laws of the co-operative society and be 
forwarded within a month from the date of adoption of the 
resolution to the Registrar and if the Registrar is satisfied that the 
proposed amendment is not contrary to the provision of this Act or 
rules or any law for the time being in force, he shall, unless for 
reasons to be recorded in writing he considers fit to refuse, register 
the amendment.

(3) When the Registrar registers an amendment of the bye-laws 
of a registered co-operative society, he shall issue to the co­



PART - N] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 815

operative society a copy of the amendment certified by him, which 
shall be conclusive evidence that the same has been duly 
registered, unless it is proved that the registration of the co­
operative society has been cancelled or that further amendments 
has been registered or that the co-operative society's copy of the 
amendment has been tampered with.

(4) The amendment shall be binding upon the co-operative 
society with effect from the date of registration.

14. (1) When it appears to the Registrar that an amendment of the 
bye-laws of a registered Cooperative Society is necessary in the 
interest of such Co-operative Society or of the Co-operative 
movement as a whole or for the purpose of bringing about 
uniformity bye-laws in the main with the provisions of the bye-laws 
of other Co-operative Societies which have similar objects or 
functions, he- may by an order in writing, direct the Co-operative 
Society to “am6nd its bye-laws in accordance with the amendment 
drafted and forwarded to the Co-operative Society by him within 
such time as he may specify in the order.

(2) If the co-operative society fails to make such amendment 
within the time specified the Registrar shall after giving the co­
operative society an opportunity of representing its case, make such 
amendment himself and register the same. The Registrar shall then 
forward a copy thereof to the co-operative society together with a 
certificate signed by him which shall be effective as prescribed in 
section 13 (3).

(3) The Registrar shall not register any amendment of the bye­
laws of a co-operative society, whether under this section or section 
13 of this Act, without the consent of the State Government if the 
effect of such amendment is to lessen the degree of control of the 
State Government or of the Registrar as already provided for in the 
bye-laws.

(4) The Registrar may require any registered co-operative 
society to frame rules of procedure under its bye-laws to govern any 
part of its business and to send such rules to him for approval.

(5) When it appears to an affiliating co-operative society that 
an amendment of the bye-laws of a registered co-operative society 
which is a member and debtor of such co-operative society is 
necessary in the interest of such affiliating co-operative society, it 
may suggest to the affiliated co-operative society that it makes the 
amendment within such time as it may specify. The affiliating co­
operative society shall forward to the affiliated co-operative society a 
draft of the suggested amendment of the bye-laws.

(6) If the co-operative society fails to implement the suggestion

Power o f 
Registrar or 
affiliating co­
operative 
society to direct 
amendment of 
bye-laws or 
adoption o f 
rules o f 
procedure. ■



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 816

within the time specified, the affiliating co-operative society may 
forward to the Registrar the amendment which it considers 
necessary, and the Registrar, if satisfied that the amendment is 
necessary and not contrary to the provisions of this Act or the rules, 
may thereupon register the amendment and forward to the co­
operative society a copy thereof together with a certificate signed by 
him. The certificate shall be conclusive evidence that the 
amendment has been registered and such amendment shall there 
upon be binding upon the co-operative society and its members.

(7) In the interest of co-operative movement, the Registrar may 
with the approval of the State Government amend any clause of the
bye-laws of a co-operative society.

15. (1) Any registered co-operative society may, at a meeting of its 
General Assembly specially called for the purpose of resolving the 
matter to divide Go-pperative Society into two or more Co-operative 
Societies, at least fifteen clear days' notice of such meeting with the 
agenda shall be given to its members together with a copy of the - 
proposed resolution.

(2) Such a resolution shall contain the proposal as to how to 
divide the assets and liabilities of the co-operative society among 
the newly proposed co-operative society, their areas of operation 
and those who would constitute each of the newly proposed co­
operative society with draft new bye-laws.

(3) A copy of the resolution shall be sent to the Registrar within 
thirty days of its adoption and subject to the Registrar's non­
interference within thirty days of the dispatch to him of the 
resolution, the resolution shall be circulated among the members 
and creditors of the co-operative society.

(4) Notwithstanding any bye-laws to the contraiy, any member 
of the co-operative society and notwithstanding any agreement to 
the contrary, any creditor of the co-operative society, may by notice 
given to the co-operative society within thirty days of the receipt of 
the resolution, intimate in case of a member his intention not to 
become a member of any of the co-operative societies and in case of 
a creditor his intention to demand a return of the amount due to 
him.

Division and 
amalgamation
o f co-operative 
societies*

(5) After the expiry of ninety days from the passing of the 
aforesaid resolution a meeting of the General Assembly shall be 
convened for deciding the final resolution. At least fifteen clear days’ 
notice with the agenda of the meeting shall be given to all members 
of the co-operative society.

(6) If the General Assembly decides by a three-fourth majority 
finally to divide the Co-operative Society and if the Registrar



PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 817

approves of the decision, the members, who will constitute each of 
the newly proposed co-operative society subscribing to the newly 
drafted bye-laws shall apply to the Registrar under section 10 of the 
Act for registration of the new co-operative society and the Registrar 
shall register the co-operative societies under section 11 of the Act.

(7) The Registrar shall not register the new co-operative 
societies if the application for registration is not accompanied by a 
certificate of repayment of Share Capital to members and certificate 
of satisfaction of claims to creditors referred to in sub-section(4) of 
this section.

(8) From the date which the new co-operative societies were 
registered under sub-section (6) of this section the registration of 
the old co-operative society shall be deemed to have been cancelled.

(9) The registration of the new co-operative societies shall be a 
sufficient conveyance to vest the assets and liabilities of the original 
co-operative society according to the aforesaid resolution in the new 
co-operative societies.

(10) Two or more registered co-operative societies may at a 
meeting of their respective General Assemblies specially convened
for the purpose, by giving at least fifteen clear days’ notice to the 
respective members of the co-operative societies resolve to 
amalgamate into one cooperative society by adopting common bye­
laws.

(11) A copy of such resolution of each co-operative society shall 
be circulated forthwith among all members and creditors thereof. .

(12) Notwithstanding any bye-laws to the contrary, any member 
of any such Cooperative Societies and notwithstanding any 
agreement to the contrary, any creditor of any such co-operative 
societies, may within a period of thirty days from the receipt of the 
aforesaid resolution, intimate his intention not to become a member 
of the new co-operative society, and to demand a return of the 
amount due to him, in the case of a creditor.

(13) After the expiry of ninety days from the date of-the 
aforesaid resolution, a joint meeting of the members of such co­
operative societies shall be convened to decide finally the aforesaid
resolution. '

(14) At least fifteen clear days’ notice shall be given to all 
members of the co-operative societies. If at such meeting the 
aforesaid resolution is confirmed by a majority of three -  fourth of 
the members of each co-operative societies present and the common 
bye-law are accepted with or without any alterations, the Registrar 
shall be moved by an application under section 10 of the Act for



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 818

registration and he shall register the new co-operative society under 
section 11 of the Act if he approves.

(15) The Registrar shall not register the new co-operative society 
if the application for registration is not accompanied by a certificate 
of repayment of share capital to members and a certificate of 
satisfaction of claims of creditors referred to in sub-section (12) of 
this section.

(16) From the date the new co-operative society was registered 
the registration of the old co-operative societies shall be deemed to 
have been cancelled.

(17) The registration of the new co-operative society shall be a 
sufficient conveyance to vest in it all the assets and liabilities of the 
original co-operative societies.

(18). Notwithstanding anything contained in sub-sections (1) to 
(17) of this section if the Registrar is of the opinion that for reasons 
of ensuring economic viability of any registered co-operative society 
or co-operative societies or avoiding overlapping or conflict of
jurisdictions of registered co-operative societies in any area or in
order to secure proper management by any co-operative society or 
in the public interest or in the interest of the cooperative movement 
in the State as a whole, it is necessary to divide, amalgamate or 
merge fully or partially any such co-operative society or cooperative 
societies with any specific co-operative society, he may, by an order 
published in the Official Gazette make a scheme for division or
amalgamation or merger with prior approval of the State
Government.

CHAPTER-III
RIGHTS AND LIABILITIES OF MEMBERS OF A REGISTERED 

CO-OPERATIVE SOCIETY.

Members not to 
exercise rights 
till due payment 
made and 
conditions 
fulfilled.
Vote of 
members.

16. No member of a registered co-operative society shall exercise the 
rights of a 'member unless or until he has made such payment to 
the co-operative society or acquire such interest in the co-operative 
society, as may be prescribed by the rules or bye-laws.

17. (1) Irrespective of the shares he holds in the co-operative society 
and subject to any temporary disqualifications from voting which 
may be prescribed in the bye-laws and to the provisions of section 
30(3) of the Act related to voting by representatives a member of a 
registered co-operative society shall have a single vote in the affairs 
of the co-operative society:

Provided that in case of an equality of votes the Chairman at 
any meeting shall have a second or casting vote:



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 819

Loan to be
utilized for the 
purpose for 
which advanced.

Restriction on 
transfer of share 
or interest.

Liability o f past 
member and his 
estate.

Share or 
interest not 
liable to 
attachment.

Nomination o f
transferee.

Provided further that the byelaw of a co-operative society may 
provide for more than one vote in the case of an affiliated co­
operative society:

(2) A registered co-operative society which is a member of 
another registered co-operative society may appoint one of its 
members qualified under any rule or bye-laws to vote in the affairs 
of such other co-operative society as its representative.

(3) Voting by proxy shall not be allowed except as prescribed in 
a registered co-operative society’s bye-laws:

Provided that in registering the bye-law of a co-operative society 
the Registrar shall not permit voting by proxy except in cases, such 
as those involving a wide area of operation, where it would be 
difficult for members to exercise “their rights” if voting by proxy 
were not permitted.

18. The Loan advanced by a registered co-operative society to a 
member thereof shall be utilized by him for the purpose for which it 
was advanced and for no other purpose. The co-operative society 
shall have power to recover the advance as prescribed if the 
member does not so utilize it.

19. The transfer or charge of the share or interest of a member in 
the capital of a registered co-operative society, shall be subject to 
such conditions as to maximum holding as may be prescribed by 
this Act or by the rules.

20. The liability of a past member and the estate of a deceased 
member for the debts of a registered co-operative society as they 
existed at the date of his ceasing to be a member or of his death, as 
the case may be, shall continue for a period of four years from the 
said date.

21. Notwithstanding anything contained in any law for the time 
being in force but subject to the provision of section 45 of this Act, 
the share or interest of a member in the capital of a registered co­
operative society or any fund under section 54 of the Act shall not 
be liable to attachment or sale under any decree or order of a court 
in respect of any debt or liability incurred by such member nor be 
subjected to any claim by a receiver under the Provincial Insolvency 
Act, 1920(ActVof 1920).

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



PART - SV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 820

Transfer o f
interest on 
death, o f 
members.

Disposal o f 
Shares
or interest o f 
ceased
members.

Liability of
members
on winding up of
Co-operative
Society with
limited
Liability.

Restriction on 
Transfer o f 
Possession of 
Land held 
Under a Co­
operative 
Society.

23. If a member of a registered co-operative society dies, his shares 
and interest in the co-operative society shall, subject to the 
provision of this Act, be transferred:-

(a) to the person, if any, nominated in accordance with the 
provision of section 22 of the Act;

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

24. If a member of a registered co-operative society is expelled or 
withdrawn or otherwise ceases to be a member under this Act, rules 
or bye-laws his share of interest shall be transferred to another 
eligible person, and the value thereon, determined in accordance 
with the rules, shall be paid to such ceased member if his share or 
interest is not forfeited under the provisions of this Act, rules or 
bye-laws or if he is insane, to any person appointed to manage his 
properties under the Indian Lunacy Act,1912:

Provided that if there is no eligible transferee and if the bye-laws 
of the co-operative society so provide the value of his share or 
interest determined in accordance with the bye-laws shall be paid to 
him or, if he is insane, to any person appointed to manage his 
properties under the Lunacy Act,1912(Act IV of 1912).

25. The members of a registered cooperative society shall in the 
winding up of the co-operative society be jointly and severally liable 
to contribute towards any deficiency in the assets of the co­
operative society, subject to such limitation of amount as may be 
provided in the bye-laws.

26. Notwithstanding anything in any law for the time being in- 
force,-

(iii) a member of a registered co-operative society, the object 
of which is to develop co-operative or collective farming, 
shall not be entitled to transfer his possession or 
interest in any land held by him under the cooperative 
society, except to the co-operative society or with the 
previous approval of the managing body and in 
accordance with its bye-law to a member thereof or to a



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 821

person who will be admitted as a member of the co­
operative society;

(iv) on the death of such a member, his possession of an 
interest in, any such land held by him under the co­
operative society shall come to his nominee in 
accordance with the provisions of Section 22 or to the 
first eligible heir willing to become a member of the 
Cooperative Society;

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

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

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

(viii) no land held under a registered cooperative society 
specified in clause (a) by a member, thereof, or vested 
under clause (b) in the nominee or heir of such member, 
shall be attachable in any suit or proceeding for the 
recovery of any debt other than a debt due to the co­
operative society or to a member thereof; and

(ix) no land shall vest in such a co-operative society by 
reason of the provision of this section unless it is owned



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 822

Right of a 
registered 
Cooperative 
Society to pay 
prior
Debts of a 
mortgagor.

Restriction on
Mortgaged
Property.

by the co-operative society or has been leased to the co­
operative society and if the co-operative society holds the 
land by lease or contract, the land shall vest in the co­
operative society only during the pendency of the lease 
or contract.

27. (1) Where a mortgage is executed in favour of a registered co­
operative society for payment of prior debts or part thereof, of the 
mortgagor secured on the mortgaged property, the registered co­
operative society may by notice in writing and served by registered 
post with due acknowledgement, require any person to whom any 
such debt is due to receive payment of such debt or part thereof 
from the co-operative society at its registered office within such 
period as may be specified in the notice.

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

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

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

28. Where land is mortgaged to a registered co-operative society , -

(a) the mortgagor shall not be entitled without the approval 
of the co-operative society to transfer or mortgage his 
equity of redemption or to create a charge upon or lease 
out such property for a period exceeding three years;

(b) if the mortgaged property at any time is wholly, or 
partially destroyed or the security is rendered 
insufficient due to fall in value or for any other reason 
and the mortgagor having been given a reasonable 
opportunity by the co-operative society of providing for 
further security sufficient to cover the loan or of 
repaying the loan with interest or such portion of the 
loan as may be determined by the supervisory ,



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 823

managing or controlling body and the mortgagor having 
failed to provide such security or repay such portion of 
the loan, the whole of the loan or such, uncovered 
portion shall be deemed to fall due at once and 
recoverable through a co-operative demand certificate;

(c) the mortgaged property, in case of default of payment 
of mortgage money or any part thereof, may be sold by 
the co-operative society as prescribed by rules in 
addition to any other remedy available to it, without the 
intervention of the court, if a power of sale without the 
intervention of court, is expressly conferred by the 
mortgage deed:

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

Provided further that any party aggrieved by an 
action taken by a registered co-operative society under 
this section may prefer an apj eal to the Registrar within 
thirty days from the date of v he sale and his decision 
shall be final:

Provided also that all transfer of land under this 
Act shall be in accordance with the provisions of the 
Meghalaya Transfer of Land (Regulation) Act, 1971.

Bar to certain 29. All payments and transfer made by a registered co-operative
claim. society under this chapter, shall be valid and effectual against any 

demand made upon the co-operative society by any other person.

General
Assembly.

CBAPTBIMV
MANAGEMENT

30. (1) The General Assembly of a registered co-operative society 
shall consist of all those who are eligible to vote at general meetings
of the co-operative society.

(2) Every member of a registered co-operative society and every 
ex-officio member of the Administrative Council or Managing Body 
of such co-operative society, unless under some temporary



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 824

disqualification shall have the right to attend any general meeting of 
the co-operative society and to exercise his vote at such meeting 
provided that the bye-laws of a registered co-operative society may 
so prescribe-

(a) that a registered co-operative society affiliated to such co­
operative society may have more than one representative 
entitled to vote at a general meeting of the co-operative 
society; and

(b) that only one-third of the members of the General 
Assembly, excluding ex-officio members, 'may be 
individual members, the other two-third being 
representatives of affiliated registered co-operative 
societies.

(3) When the bye-laws of a registered co-operative society 
contain the provision of sub-section (2)(b) of this section the 
number of individual members exceeds one-third of the total 
membership of the co-operative society, the individual members 
shall elect at a special meeting to be called by the Secretary of the 
co-operative society not more than one month before the Annual 
General Meeting in the manner prescribed in the bye-laws for 
Annual General Meeting, those individual members who, as the 
representatives of the body of individual members shall form the 
one-third membership of the General Assembly for the purpose of 
voting at the annual and other meetings of the General Assembly 
during the ensuing year, and only such elected representatives have 
the right to attend and vote at such general meetings.

(4) The Supreme authority of a registered co-operative society 
shall be vested in the General Assembly:

Provided that during the pendency of any loan or service from 
the State Government or any other credit secured at the instance of 
the State Government , the supreme authority with respect to any 
matter adversely affecting the interest of the State Government or 
the Registrar, shall be vested on any person authorized by them in 
writing and may extend to the appointment of officers to hold any of 
the offices of the co-operative society or appointment of any persons 
to be ex-officio members of the Administrative Council, managing 
body or any committee of the co-operative society even if such 
persons are not members of the co-operative society. The State 
Government or Registrar may also exercise in the absence of any 
loan or service when the State Government or Registrar as the case 
may be deemed their intervention to be necessary in the interest of 
the members of the co-operative society or of the Cooperative 
Movement in general. The State Government or the Registrar, as the 
case may be, may fix the salary of any such appointed officer and 
declare it to be in charge of the co-operative society. They may 
cancel any such appointments made by them.



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 825

(5) An annual or special meeting of the General Assembly shall 
be summoned and shall exercise its authority and perform its 
function in such manner as may be prescribed in the bye-laws of 
the co-operative society.

Annual Meeting 31. (1) A General Meeting to be termed the annual meeting of the
of General 
Assembly.

General Assembly of a registered co-operative society shall be 
convened within a period of six months of close of the Financial 
Year to transact the business for the purpose of -

(a) electing members to the Board o f Directors or 
Managing Body, Administrative Council, and other 
committees of the co-operative society, the chairman, 
vice-chairman and other office bearers as may be 
provided in the bye-laws and fixing such fees, 
salaries or other remuneration as prescribed in the 
bye-layrs:

Provided that the State Government may prescribe by 
rules the qualifications necessary for office-bearers and 
employees;

(b) electing internal auditors or auditor, who shall not be 
members o f the Board o f Directors or Managing 
Body, Administrative Council or governing body and 
fixing the remuneration;

(c) considering the annual report o f the Board of 
Directors or Managing Body, Administrative Council, 
or i f  there be no Administrative Council, o f the 
Managing Body, audit report and audited annual 
accounts and balance sheets and reviewing the 
working o f the co-operative society during the 
preceding co-operative year;

(d) deciding how profits are to be distributed in 
accordance with the bye-laws;

(e) passing the annual budget, approving the 
programme and business development plan for the 
ensuing year;

(f) fixing the maximum amount o f liability to be 
incurred during the ensuing year and the maximum 
rate o f interest payable on deposit or loans; and

(g) considering such other business as may be placed



PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 826

before the meeting in accordance with the bye-laws.

(2) Such meeting shall be held not later than six months after 
the close of the Co-operative year and not later than six months 
after the date of the last preceding meeting held under sub-section 
(1).

(3) When a co-operative society fails to convene the Annual 
General Meeting within a period specified in sub-section (2), the 
Registrar or the person authorized on his behalf shall be competent 
to convene such Annual General Meeting within a period of ninety 
days from the date of expiry of the period mentioned in sub-section 
(2) of this section.

(4) No member of a Board of Directors or Managing Body, 
Administrative Council or other committee so elected in the Annual 
General Meeting shall be eligible for election as the Chairman or 
Vice Chairman aof the Cooperative Society if such member is a 
Minister in the Central or in the State Government:

Provided that no person shall be eligible to hold at the 
same time, office of Chairman and Vice Chairman of the Board of 
Directors or Managing Body or Administrative Council of more than 
two Co-operative Societies,

32. (1) A special Meeting of the General Assembly shall be called-

(a) at the instance of the Board of Directors or 
Administrative Council or if there be no Administrative 
Council at the instance of the Managing Body;

(b) at the request of the Chairman of the co-operative 
society; provided if such request is in the interest of
the co-operative society;

(c) on a requisition signed by one-tenth of the members of 
the General Assembly or twenty members, whichever 
is less; or

(dj at the instance of the Registrar.

(2) The Registrar himself or any person authorized by him on his 
behalf, in writing may, by special order call a special meeting of the 
General Assembly at any time and shall call such a meeting upon 
the failure of the society to call a meeting on requisition by the 
members or at the instance of the Registrar under sub-section (1) of 
this section.

(3) Notwithstanding any rule or bye-law prescribing the method 
of summoning or the period of notice for a General Assembly, the

Special Meeting 
o f the General 
Assembly



PART - SVj THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 827

Administrative
Council.

Registrar or any person authorized by him on his behalf may 
specify the time, place, business for the meeting and the manner of 
convening such meeting.

33. (1) The management of every registered co-operative society 
shall vest in the Board of Directors or Managing Body of the co­
operative society, except in the case of a co-operative society, which 
for administrative convenience necessitated by reasons such as 
wide area of operation, that responsibility shall vest in an 
Administrative Council. The Board of Directors, or Managing Body, 
Administrative Council and committees of a co-operative society 
shall be constituted in accordance with the bye-laws of the society 
which shall specify the composition of such bodies, their powers, 
functions, duties, method of summoning meetings and procedures.

(2) The Board of Directors or Managing Body of a co-operative 
society shall - consists of such number of directors as may be 
provided in Accordance with the bye-laws of the co-operative 
society:

Provided that the maximum number of Directors of a co^
operative society shall not exceed twenty-one with a reservation of 
one seat for SC or ST and two seats for women on the Board or 
Managing Body of every co-operative society consisting of 
individuals as members and having members from such class or 
category of persons.

(3) The term of office of elected members of the board and its 
office-bearers shall be five years from the date of election and the 
term of office bearers shall be coterminous with the term of the
board:

Provided that the board or managing body may fill a casual 
vacancy of the board by nomination out of the same class of 
members in respect of which the casual vacancy has arisen, if the 
term of office of the board is less than half of its original term.

(4) The General Assembly of a co-operative society may co-opt
persons or professionals to be members of the Board or Managing 
Body having experience in any field relating to the objects and
activities undertaken by the co-operative society:

Provided that the number of such co-opted members shall 
not exceed two in addition to twenty one directors specified in the 
proviso to sub-section (2):

Provided further that such co-opted members shall not have 
the right to vote in any election of the co-operative society in their 
capacity as such member or to be eligible to be elected as office 
bearers of the board:



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 828

Power to depute 
Government 
servant to 
manage the 
affairs of a Co­
operative 
Society.

Dissolution or 
reconstruction 
of Board of 
Directors, the 
Administrativ 
e Council, 
Managing 
Body or any 
Committee of 
a Co-operative 
Society.

Provided also that the functional directors of a co-operative 
society shall also be the members of the Board and such members 
shall be excluded for the purpose of counting the total number of 
directors specified in the proviso of sub-section (2).

(5) The election to the Board or Managing Body of a Co­
operative Society shall be conducted before expiry of the term of the 
board or managing body to ensure that the newly elected members 
of the board or managing body assumes office immediately on the 
expiry of the term of the office of members of the outgoing board.

(6) The superintendence, direction and control of the 
preparation of electoral rolls for and the conduct of all elections to a 
Cooperative Society shall be vested with the Registrar of co­
operative societies or any authorized person in this behalf:

Provided, that the procedure and guidelines for the 
conduct of elections shall be prescribed by the State Government or 
the Registrar of Co-operative Societies.

34. The State Government may, on the application of a registered 
co-operative society and on such conditions as may be determined, 
depute Government officials to the service of the co-operative 
society for the purpose of managing its affairs and the official shall 
exercise such powers and performs such duties as may be 
determined.

35. (1) When the Registrar is satisfied, after an inspection or 
inquiry under section 61 or 62 of this Act for reasons to be recorded 
in writing, that the Administrative Council, managing body or any 
committee of a registered cooperative society is not functioning 
properly according to this Act, rules or bye-laws he may, after giving 
the offending body an opportunity to state its case, direct under 
clause (d) of sub-section (1) of section 32 of this Act that a special 
general meeting of the General Assembly be called within a time to 
be specified to dissolve the Board of Directors, the Administrative 
Council, managing body or committee concerned and to elect a new 
one:

Provided that, if in the opinion of the Registrar it is necessary 
as an emergent measure to suspend the offending body forthwith, 
he may do so and shall appoint a person or persons, on such 
conditions as prescribed by him, to be in full control of suspended 
body until a new body has been elected or action has been taken in 
accordance with section 36 of this Act.

(2) The Registrar may, for reasons to be recorded, specify in the 
direction made under sub-section (1) that all or any of the outgoing



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 829

members of the dissolved body shall be disqualified for such period 
not exceeding three years as he may determine, for election or 
appointment as an officer of the society or for service on any of its 
bodies.

(3) An appeal shall lie to the State Government against an order 
of the Registrar disqualifying a member of a cooperative society for 
election or appointment within two months from the receipt of the 
order.

36. (1) No Board or Managing Body shall be superseded or kept 
under suspension for a period exceeding six months:

Provided that the Board or Managing Body may be 
superseded or kept under suspension in case-

(i) ' of its persistent default; or

(ii) of negligence in the performance of its duties; or

(iii) the Board has committed any act prejudicial to the 
interest of the co-operative society or its members; or

(iv) there is a stalemate in the constitution or functions of the 
Board; or

(v) the Board or Managing Body has failed to conduct 
elections in accordance with the provision of this Act:

Provided that the Board or Managing Body of any such co­
operative society shall not be superseded or kept under suspension 
where there is no Government shareholding or Loan or financial 
assistance or any guarantee by the Government:

Provided further that in case of a co-operative society 
carrying on the business of banking, the provision of the Banking 
Regulation Act, 1949, shall also apply:

Provided also that in case of a co-operative society, other 
than a Multi-State co-operative society carrying on the business of 
banking, the provisions of this section shall have the effect as if for 
the words “six months” the words “one year” had been substituted.

(2) In case of supersession of a Board or Managing Body the 
Registrar may by order in writing appoint a person as an 
administrator to manage the affairs of such co-operative society and 
he shall arrange for conduct of election within the period specified 
in sub-section (1) of this section and handover the management to 
the elected Board or Managing Body.

Dissolution of
the Board of
Directors
/Administrative
Council,
Managing Body
and
appointment of 
persons to 
manage the 
affairs of a Co­
operative 
Society.



PART - IV] . THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 830

Tenure ©ff office 
of the person 
appointed under
section 36*

Powers ©ff 
person
appointed under 
section 36*

Address o f Co­
operative 
society

Prescription and 
inspection of
documents*

Borrowing 
subject to 
approval o f the 
Registrar*

37. The person appointed under sub-section (2) of Section 36 shall 
hold office until the Board or Managing Body, as the case may be, is 
reconstituted or his appointment is cancelled by the Registrar.

38. During the tenure of office of a person appointed under sub­
section (2) of Section 36, such person shall be subject to control 
under the Registrar, exercise all the powers and perform all the 
functions and duties which may be exercised or performed by the 
superseded Board or Managing Body under the provisions of this 
Act, rules or bye-laws.

CHAPTBR-V
DUTIES OF REGISTERED CO-OPERATIVE SOCIETY

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

40. Every registered cooperative society shall keep and allow 
inspection free of charge by any member of the co-operative society 
and such other persons as may be authorised at all reasonable 
times at the office of the co-operative society the following 
documents, namely,-

(a) a copy of this Act;

(b) a copy of the rules framed under this Act;

(c) a copy of the bye-laws of the co-operative society;

(d) a copy of all rules framed under" the bye-laws of the co­
operative society;

(e) annual balance sheet authenticated by the audit 
officer ; and-.

(f) such other books, forms, registers or other documents 
as may be prescribed by the Registrar.

41. A registered co-operative society may receive deposits and may 
borrow from its members, financial institutions and from persons
who are not members to such extent and on such conditions as 
may be prescribed in the Rules and bye-laws subject to approval of 
the Registrar.



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 831

Participation o f 
members in the 
affairs of the 
Cooperative 
Society.

Training or 
Education of 
members o f 
Cooperative 
Society.

Power of 
Government to 
give financial 
assistance.

Restrictions on 
loans.

42. Every registered co-operative society shall ensure the 
participation of members in the management of the co-operative 
society, attending meetings by the members and utilizing the 
minimum level of services as may be provided by the co-operative 
society.

43. Every registered co-operative society shall ensure that the office 
bearers, members of the Board or Managing Body shall be provided 
Co-operative Education and Training, as per the objectives and bye­
laws.

44. (1) Notwithstanding anything contained in any law for the time 
being in force, the State'Government may grant loans, to take share 
in, guarantee the principal or the interest or both in respect of 
debentures issued by or give financial assistance in any other form 
to any "registered cooperative society which puts forward a 
satisfactory scheme for the utilization of the funds so raised.

(2) The State Government may recover or recall from any co­
operative society, out of its net profit in any year, all or any part of 
such financial assistance in event of misutilisation.

45. (1) A registered cooperative society shall not give loans-

(a) to any person other than a member except with the 
general or special sanction o f the Registrar :

Provided that a loan may be given to a- depositor of the co­
operative society on the security of his deposits; or

(b) to a member in excess either of the maximum or of 
the normal credit determined by the co-operative 
society for that member in accordance with its bye­
laws:

Provided that in assessing normal credit the 
managing body shall take a full statement as to the 
member’s means of earning;

(c) on the security o f moveable property or future 
moveable property, unless the moveable property is 
placed with the co-operative society;

(d) on personal security without sureties, unless the 
borrowing members has unencumbered immoveable 
property or attachable funded assets sufficient to 
cover the loan and a full statement o f such



PART - SV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 832

securities is submitted by the borrower and the 
truth of the statement is ascertained by the 
managing body;

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

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

(2) . Notwithstanding the provisions of clauses (b),(d) and (e) of 
sub- section (1) above loan may be given on personal security 
provided that the managing body of the cooperative society is 
satisfied as to the credit worthiness of the borrower and has taken 
from him a scheme for the utilisation of the loan and has 
ascertained the truth of the statements contained in the scheme 
and the bonafide of the borrowing member.

(3) the resolution of the managing body granting a loan under 
this section shall contain the names of all assenting members:

Provided that if such names are omitted from the proceedings 
of the meeting, the Chairman and Secretary shall be held jointly 
and severally responsible for the issue of the loan;

(4) notwithstanding the provisions of clauses (b) to (f) of sub­
section (1) and sub- section (2) and (3) above, a registered co­
operative society may issue a loan on mortgage or valuable security.

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

(6) A registered co-operative society, the primary object of which 
is the issue of loans, shall open a separate accounting or finance or 
banking branch in accordance with its bye-laws and frame rules for 
the conduct of business in such branch before it issues any loans 
and such rules shall first be approved by the Registrar.



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 833

Cooperative 
Society and 
office bearers to 
submit 
Returns or 
informations 
and produce 
documents.

Prior Claim of a
Cooperative
Society.

46. (1) Every Registered Cooperative shall file returns or
information within six months of the close of eveiy financial year or 
as may be required by the Registrar in this behalf, including the 
following matters, to the audit officer, arbitrator, liquidator or any 
person conducting an inspection or inquiry under the provision of 
this Act and the Rules made thereunder:

(a) annual report of its activities;

(b) its audited statement of accounts;

(c) plan for surplus disposal as approved by the general body 
of the co-operative society;

(d) list of amendments to the bye laws of the co-operative 
. society, if any;

(e) declaration regarding date of holding of its general body 
meeting and conduct of elections when due; and

(f) any other information required by the Registrar in 
pursuance of any of the provisions of the State Act.

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

(b) Any office bearer of a co-operative society or a liquidator 
may on behalf of the co-operative society bid and purchase at a sale 
of a mortgaged property.

CHAPTER-VI
■ PRIVILEGES OF REGISTERED CO-OPERATIVE SOCIETY

47. (1) Any debt or outstanding demand due to a registered co­
operative society by any member, surety, past member, or the 
estate of any deceased member shall be a first charge-

(a) if such debt or demand is due in respect o f the 
supply, or any loan to provide the means of such 
supply of seed, manure, labour, fodder for cattle or 
any other thing incidental to the conduct of 
agricultural operations, - upon the crops or 
agricultural produce of such member, past member 
or belonging to the estate of such deceased member,



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 834

at any time within two years from the date of such 
supply or loan or from the date on which the last 
installment o f such supply or loan became repayable;

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

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

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

(2) Nothing in this section shall affect the claims of any bonafide
purchaser or transferee for value without notice.

Charge and set 48. A registered co-operative society shall have a charge upon the 
o ff in respect o f share or interest in the capital and on the deposits of a member or a
shares or 
interest of 
members.

past member or deceased member and upon any dividend, bonus or 
surplus payable to a member or past member or the estate of a 
deceased member in respect of any debt due from such member or 
past member or estate of such deceased member to the cooperative 
society, and may set off any sum credited or payable to a member 
or past member or estate of a deceased member in or towards 
payment of any such debt.



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 835

Deduction of 
dues from 
salary.

Exemption from 
compulsory 
registration and 
personal 
attendance from 
registration of 
instruments.

Power to remit 
certain duties, 
fees etc.

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

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

(a) any instrument relating to shares in registered co-operative 
society, notwithstanding that assets of such co-operative 
society consist in whole or in part of immovable property; or

(b) any debenture issued by any such co-operative society 
and not creating, declaring, assigning, limiting or 
extinguishing any right, title or interest to or in 
immovable property, except in so far as it entitles the 
holder to the security afforded by a registered 
instrument whereby the security has mortgaged, 
conveyed or otherwise transferred the whole or part of 
its immoveable property or any interest therein to 
trustees upon trust for the benefit o f the holder o f such 
debentures; or

(c) any endorsement upon or transfer o f any debenture 
issue by any such co-operative society.

(2) Notwithstanding anything contained in the Indian Registration 
Act, 1901, it shall not be necessary for any office bearer of a 
registered cooperative society or a liquidator of a co-operative 
society to appear in person or by agent at any registration office in 
any proceeding connected with the registration of any instrument 
executed by him in his official capacity or to sign as provided in 
section 58 of the Indian Registration Act, 1901.

(3) Where any instrument is so executed, the registering officer to 
whom such instrument is presented for registration may, if he 
thinks fit, refer to such office-bearer or liquidator for information 
regarding the same and on being satisfied of the execution thereof, 
shall register the instrument.

51. (1) The State Government may by general or special order in 
the case of a registered cooperative society or class of registered co­
operative societies remit any tax, cess or fee payable under any law



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 836

Investment of 
Funds.

for the time being in force or the rules thereunder in respect of 
which they are competent to remit such tax, cess or fee.

(2) The State Government may, in respect to any registered co­
operative society or class of registered co-operative societies, by 
notification in the official Gazette, remit-

(a) the stamp duty other than stamp duties falling 
within item 91 or item 96 in list 1 in the Seventh 
Schedule of the Constitution of India with respect to 
any instrument executed by, or on behalf of, or in 
favour of, a registered co-operative society, or by an 
officer or on behalf o f a member thereof, and relating 
to the business of such co-operative society or any 
class of such instruments, co-operative demand 
certificates or decisions awards or orders o f registrar 
or arbitrators under this Act, in cases where, but 
for such remission, the registered co-operative 
society, officer or member thereof, as the case may 
be, would be liable to pay the stamp duty chargeable 
under any law for the time being in force, in respect 
o f such instrument; and

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

CHAPTER-VII
PROPERTY AND FUNDS OF REGISTERED CO-OPERATIVE

SOCIETY

52. (1) A registered co-operative society may invest or deposit its 
funds- '

(a) in a Government Savings Bank, or

(b) in any o f the securities specified in section 20 of the 
Indian Trust Act, 1882, other than those specified in 
clause (e) o f the section o f the said Act, or

(c) with the sanction of the Registrar, in the shares or 
debentures or in the security o f any other registered 
co-operative society, or

(d) with any registered co-operative society, bank or



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 837

Reserve Fund.

Distribution o f 
Net Profit.

Audit o f 
Accounts o f 
Cooperative 
societies.

persons carrying on the business of banking approved 
for this purpose by the Registrar or,

(e) in any other mode permitted by the bye-laws.

(2) Such investment shall be accounted for separately from the 
Reserve Fund of the registered co-operative society.

53 (1) Every registered co-operative society shall maintain a Reserve 
Fund formed from its profits and carry to the fund in each year not 
less than twenty five per cent of its net profit.

(2) The Reserve Fund shall be invested separately in any of the 
ways prescribed in section 52 of this Act or with the sanction of the 
Registrar, in immovable property required for the furtherance of the 
activities Oof the co-operative society. Any such investment shall be 
deemed to constitute Reserve Fund. No instrument securing a loan 
on a Reserve Fund shall be valid.

(3) The Reserve Fund shall not be utilized for any purpose 
whatsoever except in exceptional circumstances as specified in the 
rules only in exceptional circumstances.

54. After making the allocation to the Reserve Fund as prescribed in 
Section 53, the remaining net profits of a registered co-operative 
society may be distributed according to the rules and bye-laws of 
the co-operative society.

CHAPTER-VUI
AUDIT

55 (1) The accounts of every registered co-operative society and co­
operative society under liquidation shall be audited or cause to be 
audited once at least in each financial year.

(2) The Registrar may, keeping in view the annual business 
turnover . of the co-operative societies authorize or appoint a 
Chartered Accountant by Special order in writing on his behalf to 
audit the accounts of any cooperative society or class of co­
operative societies;

(3) The Registrar or the person authorized by him on his behalf 
shall at all reasonable times have free access to the books, 
accounts, documents, securities, cash and other properties 
belonging to or in the custody of the co-operative society and may 
summon any person in possession or responsible for custody of any 
such books, accounts, documents, securities, cash or other 
properties to produce the same and furnish such information in 
regard to the transaction and working of the co-operative society at



PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 838

Power of the
Registrar to 
have the 
Accounts 
written up.

Nature of Audit.

the headquarters of the co-operative society or any branch thereof 
by the same means and, so far as may be in the same manner and 
spirit as provided in the Code of Civil Procedure, 1908.

(4) The accounts of every registered co-operative society shall be 
audited within six months of the close of financial year to which 
such accounts relate.

(5) In respect of every audit of the accounts, a registered co­
operative society shall pay such audit fee as may be prescribed and 
such fee shall be deemed to be outstanding dues from the co­
operative society.

(6) If it appears to the Registrar or on application by a co­
operative society or otherwise that it is necessary or expedient to re­
audit any accounts of the co-operative society, the Registrar may by 
order provide for •'such re-audit and the provisions of this Act 
applicable to audit of accounts of the society shall apply to such re­
audit.

56. If at the time of audit the accounts of a registered cooperative 
society are not complete, the Registrar or with his sanction the 
Assistant Registrar of Cooperative Societies or Sub-Registrar of 
Cooperative Societies concerned, may cause the accounts to be 
written up at the expense of the co-operative society.

57. The audit shall include-

(i) a verification of the cash balance and security;

(ii) a verification of the balance at the credit o f the 
depositors and creditors and of the amounts due 
from the debtors of the co-operative society;

(iiij an examination of overdue debts, if any;

(iv) the valuation o f the assets including stock 
verifications, and liabilities o f the co-operative 
society;

(v) an examination o f the statement o f accounts and 
balance sheets to be prepared by the managing 
body o f the co-operative society in such forms as 
may be prescribed;

(vi) an examination o f the utilization o f Government 
financial assistance;

(vii) a certification of the realized profit; and



PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 839

Audit Report.

Rectification of 
defects.

(viii) any other relevant matter.

58. The audit officer shall, within a week from the date of 
completion of audit, submit to the registered co-operative society, 
and to the Registrar, together with the statement of accounts 
audited, an audit report including a statement of -

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

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

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

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

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

(vi) any irregularity in maintaining accounts;

(vii) whether the society is properly carrying out its 
objects and obligations towards its members;

(viii) whether sound business principles and prudent 
commercial practices are being followed;

(ix) application of prudential norms, etc; and

(x) any other relevant matter.

59. The audit report of the Accounts of an Apex Co-operative 
Society as may be defined in this Act, shall be laid before the State 
Legislative Assembly.

60. A registered co-operative society shall be afforded by the 
Registrar or the person authorized by him an opportunity to explain 
any defects or irregularities pointed out and objected to by the audit 
officer and thereafter the society shall within three months time and 
in a manner as the Registrar or the authorized person may direct 
remedy such defects or irregularities and report to the Registrar or 
the authorized person the action taken by it thereon.



PART - iV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 840

Inquiry by 
Registrar.

Inspection o f a 
Cooperative
Society.

CHAPTBR-IX
INQUIRY AND INSPECTION

61. (1) The Registrar may, at any time of his own motion or shall at 
the request of the administrative head in charge of the District or 
Civil Sub-Division or other Administrative Area, hold an inquiry or 
direct some person authorized by him by order in writing in this 
behalf, to hold an inquiry into the constitution, working and 
financial condition of a registered cooperative society.

(2) Such an inquiry shall also be held on the application of-

(i) the affiliating co-operative society, if any, of which the co­
operative society is a member and a debtor;

(ii) a majority of the members of the managing body;

(iii) one-third of the members of the co-operative society who 
shall have deposited such security for cost, if any, as the 
Registrar may direct;

(iv) creditors representing not less than one half o f the 
borrowed capital o f the co-operative society who shall 
have deposited such security for costs, if any as the 
Registrar may direct.

(3) The Registrar shall communicate the result of any enquiry 
under the section to the co-operative society and to the person at 
whose request such enquiry was made.

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

(2) An inspection of a registered co-operative society shall be 
made by the Registrar or any person authorized by him in this 
behalf by an order in writing at any time on the application of a 
creditor of a registered co-operative society:

Provided that no inspection shall be made under this sub­
section unless-

(i) the creditor deposits with the Registrar such sum 
as security for the cost o f the proposed inspection 
as the Registrar may require; and

(ii) the creditor satisfies the Registrar that the alleged



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 841

Cost o f Inquiry,
Inspection and 
Recovery o f
COStSo

Reference o f
dispute.

' debt is a sum then due and that he has demanded 
payment thereof and has not received satisfaction 
within a reasonable time:

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

(3) The result of an inspection under this section shall be 
communicated to the co-operative society and if held, at the instance 
of a creditor, to the creditor.

63.(1) When an inquiry is held under sub-section (1) of section 6 lor 
an inspection is made under sub- section (1) of section 62, the 
Registrar may, after giving the parties an opportunity of being 
heard, apportion the cost or such part of the cost as he may deem 
fit, between ■The co-operative society, the members thereof or the 
affiliating co-operative society or the creditor or creditors applying 
for such inspection or inquiry, as the case may be, and the officers, 
former officers, members and past members of the co-operative 
society.

(2) No expenditure from the fund of a registered co-operative 
society shall be incurred for the purpose of defraying any cost in 
support of any appeal preferred by any person other than the co­
operative society itself against an order under sub-section (1).

(3) Any person authorized by the Registrar under Section 61 
and 62 shall have all the powers of the Registrar when acting under 
these sections.

(4) Any sum awarded by way of cost under this section shall be 
recoverable through a Co-operative Demand Certificate.

CHAPTRR-X
SETTLEMENT OF DISPUTES

64.(1) Any dispute touching the business of a registered co­
operative society, other than a dispute regarding disciplinary action 
taken by a cooperative society against an employee of the co­
operative society or of the liquidator of a co-operative society shall 
be referred to the Registrar for decisions if the parties thereto are 
among the following, namely,-

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

(b) member, past member or persons claiming through a



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 842

member, past member or deceased member of co­
operative society; or

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

(d) any of registered co-operative society including any 
financing bank having transaction with it, a cooperative 
society or a liquidator of such co-operative society.

(2) Any dispute mentioned in sub-section (1) other than a
dispute relating to recovery of money shall be referred to the 
Registrar within two months from the date on which cause of action 
arises.

(3) Notwithstanding anything contained in this section or any 
other law for the time being in force, the Registrar may admit any 
dispute after expiry of the period mentioned in the sub-section (2), if 
the applicant satisfies the Registrar that he had sufficient reasons 
for not referring the dispute within such period of limitation, and 
the dispute so admitted shall not be barred by limitation.

Settlement of 65. (1) The Registrar shall, on receipt of a reference under sub-
dispute. section (1) of section 64, decide the dispute himself or authorize any 

other Government officer to decide such dispute.

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

(3) Where the Registrar is satisfied that a party to any reference 
made to him under Section 64 with intent to defeat or delay the 
execution of any decision that may be passed thereon-

(a) is about to dispose o f the whole or any part o f his 
property; or

(b) is about to remove the whole or any part o f his 
property from the local limits o f the jurisdiction o f 
the Registrar, the Registrar may, unless adequate 
security is furnished, direct the conditional 
attachment of the said property or such part thereof 
as he deems necessary; and such attachment shall 
have the same effect as if it had been made by a 
competent Civil Court.

(4) In case of a dispute relating to recovery of loan, the Registrar 
shall refer to the Tribunal constituted by the State Government by a 
notification published in the Official Gazette.



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER?, 2015 843

Cancellation of 
registration.

(5) The parties to the dispute shall include a registered co­
operative society, including Financing bank, its past or present 
controlling body or the liquidator of the co-operative society.

(6) The Government may constitute as many tribunals as may 
be necessary for such area or areas and specify its composition in 
the notification.

(7) The Tribunal shall consists of three members including the 
President.

(8) A member, director or chairman of a co-operative society 
including financing bank, may file an application before the 
tribunal through the Registrar or his authorized representative for 
necessary decision or order for the recovery of any amount of loan, 
dues from a member, past member or surety of a member and past 
member of a registered co-operative society.

(9) The order passed by the Tribunal shall have the same force 
and effect as that of the decree of a Civil Court and a copy of such 
order shall be served on the person against whom it is made in the 
manner laid down for the service of summons in the Code of Civil 
Procedure, 1908.

(10) Every order passed by the Tribunal shall be executed in the 
manner as decree of a civil court under the Code of Civil Procedure, 
1908.

(11) Any person aggrieved by an order passed by the Tribunal 
may file an appeal against such order to the State Government 
within sixty days after the date of service of the order.

CHAPTER-XI
DISSOLUTION OF CO-OPERATIVE SOCIETY

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

(2) The Registrar, after an inquiry has been held under section 
61 or after an inspection has been made under section 62, may 
cancel the registration of a co-operative society which-

(i) has not commenced working; or



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 844

Winding up*

(ii) has ceased working; or

(iii) has ceased to comply materially with any condition as to 
registration in this Act, rules or byelaws; and

(iv) in his opinion ought to be dissolved.

(3) A copy of the order cancelling the registration of a co­
operative society shall forthwith be published in Official Gazette by 
a notice which shall be communicated to the Cooperative Society 
and to any affiliating co-operative society concerned by registered 
post. The notice shall contain the name of the liquidator appointed 
under section 67(1), who shall take full charge of the co-operative 
society forthwith and shall require all claims against the said co­
operative society to be made to the liquidator within two months of 
publication of the notice. All liabilities recorded in the account 
books of the co-operative society shall be deemed ipso facto to have 
been so claimed.

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

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

(6) When no appeal is presented within two months from the 
publication of an order cancelling the registration of the co­
operative society, the order shall take effect on the expiry of that 
period.

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

67.(1) Where an order of cancellation of the registration of a 
cooperative society is made by the Registrar under section 66, he 
may appoint any person to be the liquidator of the co-operative 
society and may remove such person and appoint another in his 
place.

(2) The liquidator appointed under sub-section (1) shall have 
power from the date of his appointment to take immediate 
possession of all assets, properties, effect and actionable claims of 
the cooperative society or to which the co-operative society is 
entitled and of all books, records, cash and other documents 
pertaining to the business of the co-operative society and in the 
interest of the co-operative society shall hold charge of the



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 845

cooperative society notwithstanding the provisions of section 66, 
provided that no steps shall be taken for the winding up of the co­
operative society during the pendency of any stay order.

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

(a) to institute, compromise and defend suits and other legal 
proceedings on behalf of the co-operative society by his
name of office;

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

(c) to determine the debts due to the co-operative society by 
a member, past member or the estate, nominees, heir or
legal representative of a deceased member;

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

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

(f) to investigate all claims against the co-operative society 
and, subject to the provisions of this Act, to decide
question of priority arising between claimants;

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

(h) to take steps to recover dues according to the provisions



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 846

Distribution of 
fund of a 
dissolved Co­
operative 
Society.

Liquidator to ■ 
deposit the 
books and 
submit a final 
report.

of section 85, if necessary; and

(i) to dispose of the surplus, if any remaining after paying 
the claims against the co-operative society in accordance 
with section 68 of this Act.

(4) Subject to the provision of this Act and rules made there 
under, a liquidator appointed under this section shall, in so far as 
such powers are necessary for carrying out the purpose of this 
section, have power to summon and enforce the attendance of 
witnesses and to compel the production of any book, accounts, 
documents, securities, cash or other properties belonging to or in 
the custody of the co-operative society by the same means and so 
far may be in the same manner and spirit as is provided in the case 
of a Civil Court under the Code of Civil Procedure, 1908.

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

68. On dissolution of a co-operative society, the reserve fund and 
any undisbursed cash in hand shall be applied to discharging 
liabilities of the co-operative society and the repayment of the share 
capital. Any sum that may remain may be applied to such item of 
local and public utility as may be selected by the members of the 
dissolved co-operative society and approved by the Registrar. If 
within three months of the notice published in the Official Gazette 
under section 69, notifying the closing of the liquidation proceeding 
of the co-operative society, the members fail to select an object as 
aforesaid, the Registrar shall with the approval of Government, 
apply the fund to such local public utility as may be determined by 
him or credit the remaining sum to the reserve fund of a co­
operative society, to be formed to replace the dissolved co-operative 
society of if there be no such cooperative society to any other 
deserving cooperative society existing within the same area of 
operation and have objects similar to those of the dissolved co­
operative society or if there be no such cooperative society to any 
other registered co-operative society in the state, as may be 
determined by the Registrar or as provided in the rules.

69. When the affairs of a registered co-operative society had been 
wound up, the liquidator shall make a report to the Registrar within 
three years from the date of cancellation of registration who when 
satisfied shall order the liquidation proceedings to be closed and 
shall issue a notice in the Official Gazette, notifying the closing of 
the Liquidation proceedings of the Society. In these cases where the 
required report cannot be submitted by liquidator within the



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 847

Bar o f suit*

Insured Co­
operative 
Banks.

specified period due to compelling reasons such as non-availability 
of records or members not being traceable or no transaction taking 
place in the society, the Registrar shall on his own summarily order 
the closure of the liquidation proceedings of the Cooperative 
Society.

70. Save in so far as is expressly provided in this Act, no civil court 
shall take cognizance of any matter connected with the winding up 
or dissolution of a co-operative society under this Act and when a 
liquidator has been appointed no suit or other legal proceeding 
shall lie or be proceeded with against him except by leave of the 
Registrar and subject to such terms as he may impose.

71. (1) Notwithstanding anything contained in this Act, an order for 
winding up, constitution, supersession of committee is not to be 
made without consultation or requisition of Reserve Bank of India 
in the case of Insured Co-operative Bank.

(2) An order for the winding up, or an order sanctioning a 
scheme of compromise or arrangement, or of amalgamation, or 
reconstruction (including division or amalgamation) of the Bank 
may be made only with the previous sanction in writing of the 
Reserve Bank of India.

(3) 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 in section 13 D of the Deposit Insurance 
and Credit Guarantee Corporation Act, 1961.

(4) If so required by the Reserve Bank of India in the public 
interest or for preventing the affairs of the bank being conducted in - 
a manner detrimental to the interest of the depositors or- for 
securing the proper management of the bank, an order shall be 
made by the Registrar in consultation with the Reserve Bank of 
India for the supersession or removal of the Committee or Board 
and the appointment of an Administrator therefore for such period 
or periods, not exceeding five years in the aggregate as may from 
time to time be specified by the Registrar of Cooperative Societies 
after consultation with 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.

(5) An order for the winding up of the bank or an order 
sanctioning a scheme of compromise or arrangement or of 
amalgamation or reconstruction including division or amalgamation 
or an order for the supersession or removal of the committee or 
board and the appointment of an Administrator, therefore, made 
with the consent in writing or on the requisition of the Reserve bank 
of India shall not be liable to be called in question in any manner.



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 848

Power of 
Registrar to 
direct payment 
of dues.

Charge and 
surcharge.

(6) The liquidator or the Insured Co-operative Bank or the 
transferee Bank as the case may be, shall be under an obligation to 
repay the Deposit Insurance Corporation established under the 
Deposit Insurance and Credit Guarantee Corporation Act, 1961 
referred to in section 21 of that Act.

Explanation- (i) For the purpose of this section “a co­
operative bank” means a bank as has been defined in the Deposit 
Insurance and Credit Guarantee Corporation Act 1961;

(ii) “transferee Bank” in relation to an insured Cooperative 
bank which is an insured Bank under the provisions of 
the Deposit Insurance and Credit Guarantee Corporation 
Act, 1961 and in relation to a Cooperative Bank-

fa) with which such insured Co-operative Bank is 
amalgamated; or

(b) to which the assets and liabilities or such insured 
Co-operative Bank are transferred; or

(c) into which such insured Co-operative Bank is 
divided or amalgamated under the provision of 
section 15 of this Act.

CHAPTER-XII
RECOVERY OF SUMS DUE AND ENFORCEMENT OF 

OBLIGATIONS

72. (1). Notwithstanding anything contained in Section 64 and 65 
of this Act, the Registrar or such other persons as may be 
authorized by him on his behalf, may, on his own motion or on the 
written requisition of a registered co-operative society or an 
affiliating co-operative society or a financing bank, for the recovery 
of any loan due by a defaulting member, after due enquiry, make an 
award directing payment by such member of the amount found to 
be due.

(2) Any co-operative society engaged in credit business shall 
adhere to the Reserve Bank of India’s Circular and instructions 
issued from time to time in the matter of recovery of non-performing 
assets.

73. (1). Where, as the result of an audit under section 55, or an 
inquiry under section 61 or an inspection under section 62 or a 
report made in the course of the winding up a registered co­
operative society, it appears to the Registrar that any member, 
officer or employee, past or present, of the co-operative society has 
at anytime within a period of four years prior to the date of such 
audit, inspection, enquiry or report as the case may be-



PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 849

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

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

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

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

(e) ° committed breach of trust in relation to the co-operative
society; the Registrar may inquire into the conduct of such 
officer or member of the managing or other controlling 
body.

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

(3) Upon such enquiry, after giving such member, officer or 
employee an opportunity of being heard and in the case of a 
payment made contrary to the provisions of this Act or rule or bye- ' 
laws, after affording such member, officer or employee time to 
recover the amount of such payment from the payee and credit it to 
the funds of the co-operative society, the Registrar may by an order 
in writing require such member, officer or employee to pay such 
sum with interest at such rate as the Registrar may direct, to the 
cojoperative society by way of compensation in respect of such 
payment or less or to restore such property as the Registrar thinks 
fit, and to pay such sum as the Registrar may fix to meet the cost of 
the proceedings under this section.

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

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



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 850

Prohibition of 74.(1) No person other than a co-operative society registered under 
the use of the this or any other co-operative society registered under this Act or 
word “Co­ any other Co-operative Societies Act shall trade or carry on 
operative”. business under any name or title of which the word “Co-operative” 

is a part :

Provided that nothing in this section shall apply to the use 
by any person, or by his successor in interest of any name or title 
under which he lawfully traded or carried on business at the 
commencement of this Act.

(2) Whoever contravenes the provision of this section shall be 
punishable with fine which may extend to two thousand five 
hundred rupees, and in the case of a continuing offence with 
further fine of two hundred fifty rupees for each day on which the 
offence is continued after conviction therefore.

Punishment for 
false return , 
false
information, 
disobeying 
summons order 
etc.

75. A person shall be punishable with fine which shall not be less 
than one thousand rupees and which may extend to five thousand 
rupees if ,-

(a) a registered co-operative society or an officer or 
member thereof or any liquidator, willfully makes a false 
return or furnishes false information or willfully 
neglects or refuses to do any act required by this Act or 
any'rules or bye-law or does anything contrary to this 
Act or the rules or bye-laws; or

(b) willfully or without reasonable excuse disobeys any 
summons, requisition or lawfully written order issued 
under the provisions of this Act or does not produce 
documents , or cash balance o f the cooperative society 
or furnish any information lawfully required from him 
by a person authorized in this behalf under the 
provision of this Act or fails to maintain up-to-date 
accounts, records and other documents o f the co­
operative society required to be maintained by him 
under this Act or the rules or bye-laws; or

(6) An appeal shall lie to the State Government against an order 
passed under clause (a) of sub-section (1) within thirty days of the 
communication of the order.

CHAPTER-XIII
PENALTY



PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 851

Punishment for 
disposing 
property in 
contravention 
of section 47.

Penalty for 
certain
misdemeanors.

Power to 
enforce
performance of 
obligation.

(c) any employer who, without sufficient cause, fails to pay 
to a co-operative society amount deducted by him from 
its employees within a period o f fourteen days from the 
date on which such deduction is made; or

(d) any officer or custodian who willfully fails to handover 
custody o f books, accounts, documents, records, cash, 
security and other property belonging to a co-operative 
society of which he is an officer or custodian, to an 
authorized person; or

(e) whoever, before, during or after the election o f 
members o f the board or office bearers o f managing 
body, adopts any corrupt practice.

° /

76. Any member, past member or nominee, heir or legal 
representatives of a deceased member removing or otherwise 
disposing of or suffering to be removed or otherwise disposed of, 
any property on which a registered co-operative society holds a first 
charge under section 47 with intent to defraud the co-operative 
society or with such intent doing any other act to the prejudice of 
the co-operative society’s first charge, shall be punishable with fine 
equivalent to the value of the property.

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

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

(b) by utilizing the (i) Government Financial Assistance
(ii) Co-operative Society’s Fund and (iii)Loan for a 
purpose different from that for which it was granted, 
the Registrar may, after affording such person an 
opportunity to be heard, by an order in writing direct 
him to pay the assets of the cooperative society by 
way of penalty such sum not less than five thousand 
rupees as the Registrar thinks fit.

78. Notwithstanding anything contained in this Act, where any 
Registered co-operative society is required to take any action under 
this Act, the rules or bye-law and such action is not taken within 
the time provided in this Act, the rules or bye-laws or within such



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 852

Cognizance of 
offences.

Indemnity.

Bar to
Jurisdiction 
of courts.

time as the Registrar may specify by a notice in writing. Where no 
time is so provided, the Registrar may call upon any officer of the 
co-operative society who is responsible for carrying out the 
directions, and after giving such officer an opportunity to be heard 
may require him to pay the assets of the co-operative society such 
amount as the Registrar may think fit but not less than five 
hundred rupees for each day until the Registrar’s direction are 
carried out.

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

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

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

CHAPTER-XIV
JURISDICTION

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

81(1) Save as provided in this Act, no Civil or Revenue Court shall 
have any jurisdiction in respect of -

(a) registration of a registered co-operative society or its 
bye-laws or amendments o f bye-laws; or

(b) the dissolution o f a managing or controlling body 
and the management o f the affairs o f the co­
operative society on dissolution thereof, or

(c) any dispute referred to the Registrar; or

(d) any matter in relation to the winding up and 
dissolution o f a registered co-operative society.

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



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 853

Appeal or 
review.

Power of
Attachment 
of property.

Registrar to 
be Civil Court 
for certain 
purposes.

Recovery of 
sums due.

82(1) Except where otherwise expressly provided to the contrary, an 
appeal shall lie to the Registrar on the decisions made under this 
Act or rules framed thereunder by any Government officer or 
liquidator.

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

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

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

83. Where the Registrar or such Gazetted officer as may have powers 
delegated to him under Section 85 is satisfied that any person 
holding property within his jurisdiction with an intent to defeat or 
delay the execution of any order, avoid payment of dues under a 
Cooperative Demand Certificate for recoveiy of dues under this Act, 
rules or bye-laws -

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

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

84. The Registrar or any person empowered by him on his behalf 
shall be deemed, when exercising any powers under this Act for the 
recovery of any amount by attachment and sale or by the sale 
without attachment of any property, or when passing any orders on 
any application made to him for such recoveiy or to take step in aid 
of such recoveiy, to be a Civil Court.

85. (1) All dues recoverable under this Act or rules framed there 
under except those referred to the tribunal for adjudication under 
clause (4) of Section 65 shall be reduced to the form of a Co-



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 854

operative Demand Certificate, as in Schedule appended to this Act 
over the signature of the Registrar or of such Gazetted officer as 
may have powers delegated to them by the Registrar in this behalf 
and shall be recovered as an arrear of land revenue and shall be 
paid to the certificate holder or his authorized nominee. Such 
certificate shall be in the name of the claimant and shall be 
delivered to him.

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

Explanation- “The Certificate Officer” means the officer so 
defined in, and thê  “prescribed form” means the form so prescribed 
under the Public Demands Recovery Act.

(3)In case of the recoverable loans, dues referred to the tribunal, 
recovery of the same will be made on the basis of the order passed 
by the tribunal and in the manner and the procedure as laid down- 
in section 64.

Registrar may 86.(1) Notwithstanding anything contained in this Act, where 
order a meeting '. compromises or arrangement is proposed between a registered co- 
©f Creditors. operative society and its creditors or a class of them, the Registrar

upon an application made by a registered co-operative society or by 
a liquidator in case of a co-operative society in respect of which an 
order has been passed for the winding up thereof, or by a creditor 
or creditors or any class of creditors, may order a meeting of the 
creditors.

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



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 855

CHAPTER-XV
APPLICABLE TO SHORT TERM CO-OPERATIVE CREDIT

STRUCTURE

87. Notwithstanding anything or inconsistent contained in this Act 
or Rules framed thereunder or bye-laws of any registered co­
operative society or orders issued thereunder, the provision of this 
chapter shall have overriding effect.

88. The provisions of the Banking Regulation Act 1949 as 
applicable to Cooperative Societies shall apply to a Co-operative 
Bank registered under this Act.

89. No Primary Agricultural Credit Co-operative Society or its 
Federation of association, except those which are permitted to act 
as a bank under Banking Regulation Act, 1949 (Central Act 10 of 
1949) shall be registered with the word “bank” or any other 
derivative of the word “bank” in its registered name or shall use the 
same as a part of its name:

Provided that where any Primary Agricultural Credit Co­
operative Society or its Federation or association, those which are 
permitted to act as a bank under Banking Regulation Act 1949 
(Central. Act 10 of 1949) has been registered or using the same as a 
part of its name before ■ the commencement of this Act, with the 
word “bank” or any of its derivatives in its registered name, it shall 
within three months from the date of such commencement, change 
its name so as to remove the word “bank” or its derivative, if any, 
from its name:

Provided further that where any such co-operative society fails 
to comply with the above provisions within the period specified 
therein, the Registrar shall order the winding up of such co­
operative society forthwith.

90. (1) Every person or group holding a minimum deposit of rupees 
one thousand for a continuous period of minimum two years or 
such other amount or time as may be prescribed in a Primary 
Agricultural Credit Co-operative Society shall become a member of 
the co-operative society by subscribing the minimum Share Capital 
specified in the bye-laws and shall have full membership and voting 
rights.

(2) A group borrower shall become a member of a Primary 
Agricultural Credit Co-operative Society by subscribing the 
minimum Share Capital specified in the bye-laws and shall have 
full voting rights.

(3) Every group depositor or group borrower admitted as a 
member shall be entitled to vote through a delegate nominated by
the group.



PART - BV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 856

91. There shall be at least such members of professionals having 
special knowledge or experience in such field as may be stipulated 
by the Reserve Bank and the Managing Body of the State 
Cooperative Bank shall comply with such stipulations of Reserve 
Bank of India.

92. (1) The members of the Managing Body and the Chief Executive 
Officer of the State Co-operative Bank shall fulfill the criteria 
stipulated by the Reserve Bank for the time being in force;

(2) The members of the Managing Body and the Chief Executive 
Officer of the State Co-operative Bank who do not fulfill the criteria 
stipulated by the Reserve Bank shall be removed by the Registrar.

93. (1) Every Co-operative Bank shall have its Account audited by a 
qualified Chartered Accountant in each financial year, subject to 
such directions as the Reserve Bank may issue from time to time.

(2) The Accounts of the State Co-operative Bank shall be audited 
and certified by Chartered Accountant appointed from a panel 
approved by Government or an authority authorized by the State 
Government in this behalf.

(3) The Registrar shall conduct Special Audit of the State Co­
operative Bank on its own volition or if requested by the Reserve 
Bank and furnish a copy of the report to the Reserve Bank and the 
National Bank within the time stipulated by the Reserve Bank.

94. (1) Every Cooperative Bank shall abide by the directions, 
guidelines and prudential norms, if any, issued by the Reserve 
Bank from time to time in respect of acceptance of deposits, 
borrowings, lending, investment or any other financial matters.

(2) The prudential norms including Capital to Risk Weighted 
Assets Ratio shall be prescribed by the Registrar for all the Primary 
Agricultural Credit Co-operative Societies in consultation with the
National Bank.

95. (1) The Registrar shall ensure that Reserve Bank’s regulatory 
prescription in case of State Co-operative Bank including 
recommendation for supersession of the Managing Body and 
winding up of the State Co-operative Bank are implemented within
one month of being so advised by the Reserve Bank;

(2) The Registrar shall ensure that the liquidator or the 
administrator, as the case may be, is appointed within one month
of being so advised by the Reserve Bank for winding up or 
supersession.



PART - SV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 857

96. The supersession of the Managing Body of a Primary 
Agricultural Credit Co-operative Society shall be done only on the 
following grounds: -

(a) if the society incurs losses for three consecutive years; or

(b) if serious financial irregularities or frauds have been 
identified; or

(c) if there are judicial directives to this effect; or

(d) if there is a lack of quorum for three consecutive meetings;

97. The Registrar shall conduct election to a Co-operative Credit 
Structure Society before the expiiy of the term of the existing 
Managing Body.

98. The Registrar shall conduct elections to a Co-operative Credit 
Structure Sociefy within two months from the date of supersession;

Provided that in circumstances beyond control the 
Government may allow holding of such election within a period not
exceeding six months from the date of supersession.

99. A member of the Managing Body of a Primary Agricultural Co­
operative Credit Society which has been superseded under this Act 
shall not be entitled to contest the election again for a period of 
three years from the date of supersession.

100. A Co-operative Credit Structure Society shall have freedom to 
decide its financial and administrative matters, especially-

(i) interest rates on deposits and loans:

Provided that in the case of the State Co-operative 
Bank, the interest rates shall be in conformity with the 
guidelines issued by the Reserve Bank;

a(ii) borrowing and investments;

(iii) loan policies and individuals loan decisions;

(iv) personnel policy, staffing recruitment, posting and 
compensation to staff; and

(v) internal control systems, appointment of auditors and 
fees for the Auditor.

101. The Government’s subscription in the Share Capital of any Co­
operative Credit Structure Society shall not exceed twenty five



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 858

percent and the Government or Co-operative Credit Structure 
Society may reduce the Government's subscription further at its 
choice:

Provided that in case State Co-operative Bank is unable to 
comply with requirements of sub-section (1) of section 11 of the 
Banking Regulation Act, 1949 (Central Act 10 of 1949), the State 
Government can contribute equity to the extent required to enable 
State Co-operative Bank to comply with the requirements of sub­
section (1) of Section 11 of Banking Regulation Act, 1949 (Central 
Act 10 of 1949).

102. (1) There shall be only three nominees of the State 
Government, of which one would be represented by the State 
Finance Department in the Managing Body of the State Co­
operative Bank.

^ /

(2) There shall be a nominee of the Government in the 
Managing Body of a Primary Agricultural Credit Co-operative 
Society irrespective of Government's subscription to the Share 
Capital.

103. A Co-operative Credit Structure Society may affiliate or dis­
affiliate with a Federal Co-operative Society of its choice; provided 
that before dis-affiliation, the society shall discharge its financial 
liability, if any, to the society from whom it is dis-affiliating.

104. A Co-operative Credit Structure Society shall have the freedom 
of entry and exit at any tier and there shall be no mandatory 
restrictions of geographical boundaries for its operation.

105. A Co-operative Credit structure society shall have the freedom 
to invest or deposit its funds in any Bank or financial institution 
regulated by the Reserve Bank and not necessarily in the Federal 
Society to which it is affiliated.

106. A Co-operative Credit Structure society may obtain loans from 
any bank or financial institution regulated by the Reserve Bank and 
refinanced from the National Bank or any Financial Institution 
directly or through any Reserve Bank regulated Financial 
Institution and not necessarily from the Federal Society to which it 
is affiliated.

107. A Primary Agricultural Credit Co-operative Society may pay 
dividend in accordance with the guidelines framed by the Registrar 
in consultation with the National Bank.

108. No person shall be elected, nominated or co-opted or allowed 
to continue as a .member of the Managing Body of a Co-operative 
Credit Structure Society, if he-



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 859

(i) is a person who represents a Co-operative Society other 
than a Primary Agricultural Credit Co-operative Society 
or the Managing Body of the State Co-operative Bank, if 
such society he represents has committed a default 
towards the repayment of such Bank for a period 
exceeding ninety days;

(ii) is a person who committed a default towards payments 
to a Primary Agricultural Credit Co-operative Society or 
the Managing Body of the State Co-operative Bank, if 
such Co-operative Society he represents has committed 
a default towards the payment of such bank for a period 
exceeding one year unless the default is cleared; and

(iii) is a person, who represents a Co-operative Society whose 
Managing Body is superseded.

109. (1) The Bye-law or any amendment to the Bye-laws of a Co­
operative Credit Structure Society shall be registered by the 
Registrar within thirty days from the date of receipt of the 
application.

(2) If the Registrar Is satisfied that the proposed Bye-laws or 
the amendments to the Bye-laws are contrary to the provisions of 
this Act and the Rules made thereunder he shall reject the same 
duly recording his reasons thereon within thirty days from the date
of receipt of the application.

110. The State Government or the Registrar shall have the powers 
to issue directive or take any action in the interest of the Co­
operative Credit Structure Society In the State or in furtherance of 
this Act.

Co-operative 
Society to fee
a body 
Corporate.

Register of
members*

CHAPTER-XVI
MISCELLANEOUS*

11T. Every registered Co-operative Society shall be deemed to be a 
body corporate by the name under which it is registered, with 
perpetual succession and a common seal, and with power to hold 
property, to enter into contracts, to institute and defend suits and 
other legal proceedings and do all things necessary for the purpose 
for which it was constituted.

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

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



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 860

Entries in books 
of registered 
co-operative 
society shall be 
received as 
prima facie 
evidence.

Savings o f
Existing Co­
operative 
Societies.

Construction 
o f reference 
to Act II o f 
1912.

Act VII o f 
1913 not 
to apply.

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

113. (1) A copy of any entry in a book of registered co-operative 
society, regularly kept in the course of business shall, if certified by 
the Chairman/Secretary of the Co-operative Society be received in 
any suit or legal proceeding as p rim a  fac ie  evidence of the existence 
of such entry and shall be admitted as evidence of the matters, 
transaction and accounts therein recorded in every case to the 
same extent as the original entry itself is admissible.

(2)No officer or liquidator of a registered co-operative society 
and no officer in whose custody the books of a registered 
cooperative society are deposited after liquidation shall in any legal 
proceedings to which the co-operative society or liquidator is not a 
party, be compelled to produce any of the co-operative society’s 
books the contents of which can be proved under sub-section(l) or 
to appear as a witness to prove the matters, transaction and 
accounts therein recorded unless specially so directed by an order 
of the Court or the Arbitrator.

114. (1) Every co-operative society existing at the commencement of 
this Act which has been registered or deemed to have been 
registered under the Co-operative Societies Act, 1912 shall be 
deemed to be registered under this Act; and its bye-law shall, in so 
far they are not inconsistent with the provision of this Act continue 
in force until altered or rescinded and shall to such extent be 
deemed to be registered under this Act.

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

115. A11 reference to the Indian Co-operative Societies Act, 1912 
occurring in any enactment made by any authority in India and for 
the time being in force in the State shall, in the application of any 
such enactment thereby be construed, as reference to this Act, and 
anything done or any proceeding commenced in pursuance of such 
enactment on or after the commencement of this Act shall be 
deemed to have been done or to have commenced and to have had 
effect as if the reference in such enactment to the Indian Co­
operative Societies Act, 1912 had been a reference to this Act, and 
no such thing or proceeding shall be deemed to have been invalid 
on the ground that such enactment did not refer to this Act.

116. The Provision of the Indian Companies Act, 1913 shall not 
apply to registered co-operative societies.



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 861

Acts of 
co-operative 
societies etc, 
not to be 
invalidated 
by certain 
defects.

Power to
exempt
co-operative
societies
from
provision 
of the Act.

Rules and 
bye laws not 
to be deemed 
to go beyond 
the Act.

Power to 
exempt 

co-operative 
societies 
from
conditions as 
to registration.

Power to order 
recoupment of 
expenditures.

117. (l)No act of a registered co-operative society or of a Managing 
or Controlling Body or at any officer or liquidator done in good faith 
in pursuance of the business of the co-operative society shall be 
deemed to be invalid by reason only of some defect subsequently 
discovered'in the organization of the co-operative society or in the 
constitution of any such body or in the appointment or selection of 
the officer or liquidator or on the ground that, such officer or 
liquidator was disqualified from appointment.

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

°  /

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

118. The State Government may, by general or special order, 
exempt any registered co-operative society or class of registered co­
operative societies from any of the provision of this Act or may 
direct that such provision shall apply to such co-operative society 
with such modifications as may be specified in the order.

119. Rules framed under this Act and bye-laws registered under 
this Act shall not be deemed to go beyond the provisions of this Act * 
if their effect is not to lessen the degree of control expressly 
provided for in the Act.

120. Notwithstanding anything contained in this Act State 
Government may by special order and subject to such conditions, if 
any, as it may impose, exempt any co-operative society from any of 
the requirements of this Act as to registration.

121. Notwithstanding anything contained in any law for the time 
being in force the State Government may, by a general or special 
order, require of every registered co-operative society or a class of 
registered co-operative societies to make lump sum contribution of 
such sum annually to be fixed by the Registrar towards the 
recoupment of administrative costs incurred by Government of 
Meghalaya in respect of inspection, supervision and guidance of a 
co-operative society or class of cooperative societies or of any 
service to such co-operative society or class of co-operative 
societies.



PART - SV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 862

Power to 
seize records 
o f co-operative
society.-

Power o f the 
Managing body 
o f an affiliating 
co-operative 
society to 
enquire into the 
affairs o f a 
member co­
operative 
society.

Limitation.

122. (1). If the Registrar or any person authorized by him on his 
behalf while, making audit, inspection, inquiry or supervision as 
the case may be believed that the registered co-operative society, is 
not keeping or maintaining the accounts, books and records of the 
co-operative society properly or finds or reasonably suspects gross 
negligence of duties, misappropriation or misuse of fund of the co­
operative society, irregularity in recording proceedings or keeping 
accounts or books, he shall have the power , to take possession of 
any or all books, registers or documents, cash in hand or account 
books of the co-operative society and remove such seized property 
or keep in the proper custody such seized property till it is disposed 
off in a manner as may be directed by the Registrar.

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

(3) The Registrar shall take immediate steps by way of audit or
inspection and pass such orders as he may think fit. *

(4) The administrative head of a District, Sub-Division or 
Administrative Area shall give police help to all officers mentioned
in sub-section(l) of this section when sought for.

123. When a registered co-operative society takes a loan from an 
affiliating co-operative society and defaults on payment of the debt
or any installment thereof, any member.-of the Managing Body of 
affiliating co-operative society may examine and look into the 

. accounts "and working of such defaulting co-operative society and 
report the result of his enquiry or examination particularly with 
reference to the said loan to the affiliating co-operative society and 
may recommend any suggestion in his report. The borrowing co­
operative society shall furnish such information and produce such 
documents, books and accounts as the member of the managing 
body may require.

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



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 863

Power to
exempt co­
operative 
societies from 
the operation of 
the Money 
Lender Act.

Powers to make 
rules.

Repeal and 
savings .

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

125. The State Government may, by a notification in the Official 
Gazette, exempt a registered co-operative society from any or all the 
provisions of the Meghalaya Money Lender Act (Assam Act of 1934 
as adapted by Meghalaya).

126. (1) The State Government may after previous publication 
makes rules to carry out the purposes of this Act

(2) Any rule made under this Act shall, as soon as after it is 
made, be laid before the Meghalaya Legislative Assembly.

127. (1) The Meghalaya Co-operative Societies Act (Assam Act 1 o f 
1950 as adapted by Meghalaya) is hereby repealed.

(2) Notwithstanding the repeal any action taken or anything 
done under the Act so repealed shall be deemed to have been taken 
or done under the corresponding provisions of this Act.

L. M. SANGMA,
Special Secretary to the Govt, o f Meghalaya, 

Law Department.



PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 864

In the matter of

Whereas,........................................................................................................  has
made a reference in writing to Complaining/ Me..................................................... as a
result of my personal inspection I decide, that Determining /a sum of ........... ........  by
way o f ............ ................... ............. under section of the Meghalaya Cooperative Societies
and a sum of ?............. ............... (Rupees......................................... ........... )
by way of interest is/are due from you and have evaded payment of the same and whereas 
a notice of demanctfcalling on you to pay the due within the specified time was served with 
notice to show cause.

And whereas you have not paid up/your dues specified in the notice;
And whereas you have not submitted explanation/your explanation is 

unsatisfactory;
Now therefore, I, under authority of sub-section (1) of Section 85 of the Meghalaya 

Co-operative Societies Act do hereby order that the above mentioned sum of
?.................................... .....is due to the above named from you and that you will pay
further interest on the principal sum at the rate of
........................................................... ......  percent per annum
from............................................... together with all cost till the date of realization.

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

-S C H E D U L E
North-
South-
East-
West-

S C H E D U L E  
[See Section 85(1)]

Case No. o f 20___
District / Sub-Division.

Dated

Registrar,
Co-operative Societies, 

Meghalaya.

Officer empowered under Section 85(1) of 
Meghalaya Co-operative Societies Act.

SHILLONG: Printed and Published by the Director, Printing and Stationery, Meghalaya, Shillong. 
(Extraordinary Gazette of Meghalaya) No. 273- 730 + 300 — 7 -1 0  - 2015. 

website:- http://megpns.gov.in/gazette/gazette.asp

http://megpns.gov.in/gazette/gazette.asp

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