English — official source version
the_meghalaya_cooperative_societies_act_2015.pdf.txt
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:-
PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAO RDINARY) OCTOBER 7, 2015 806
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);
PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAO RDINARY) OCTOBER 7, 2015 807
(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);
PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 810
(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.
PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 813
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
undefined:
Open official source version ↗About this act
- Jurisdiction
- Meghalaya
- Enactment date
- 2015-10-07
- Sections available
- 104
Read the sections
1Short title,extent and commencement→2Definitions→3The Registrar.→4Co-operative Societies which may be registered.→5Age, qualification of a member.→6Conditions of registration.→7Restrictions on acquisition of Share in a Cooperative Society.→8Power of Registrar to decide certain questions.→9Liability.→10Application for Registration.→11Registration→12Evidence of registration.→13Amendment of the Bye-laws of a registered cooperative society.→14Power of Registrar or affiliating cooperative society to direct amendment of bye-laws or adoption of rules of procedure.→15Division and amalgamation of co-operative societies.→16Members not to exercise rights till due payment made and conditions fulfilled→17Vote of members.→18Loan to be utilized for the purpose for which advanced.→19Restriction on transfer of share or interest.→20Liability of past member and his estate.→21Share or interest not liable to attachment.→22Nomination of transferee→23Transfer of interest on death of members.→24Disposal of Shares or interest of ceased members.→25Liability of members on winding up of Co-operative Society with limited Liability.→26Restriction on Transfer of Possession of Land held Under a Cooperative Society.→27Right of a registered Cooperative Society to pay prior Debts of a mortgagor.→28Restriction on Mortgaged Property.→29Bar to certain claim.→30General Assembly→31Annual Meeting of General Assembly→32Special Meeting of the General Assembly→33Administrative Council→34Power to depute Government servant to manage the affairs of a Cooperative Society.→35Dissolution or reconstruction of Board of Directors , the Administrative Council, Managing Body or any Committee of a Co-operative Society.→36Dissolution of the Board of Directors / Administrative Council, Managing Body and appointment of persons to manage the affairs of a Cooperative Society.→37Tenure of office of the person appointed under section 36.→38Powers of person appointed under section 36.→39Address of Cooperative society→40Prescription and inspection of documents.→41Borrowing subject to approval of the Registrar.→42Participation of members in the affairs of the Cooperative Society.→43Training or Education of members of Cooperative Society.→44Power of Government to give financial assistance.→45Restrictions on loans→46Cooperative Society and office bearers to submit Returns or informations and produce documents→47Prior Claim of a Cooperative Society→48Charge and set off in respect of shares or interest of members.→49Deduction of dues from salary.→50Exemption from compulsory registration and personal attendance from registration of instruments.→51Power to remit certain duties, fees etc.→52Investment of Funds→53Reserve Fund→54Distribution of Net Profit→55Audit of Accounts of Cooperative societies.→56Power of the Registrar to have the Accounts written up.→57Nature of Audit.→58Audit Report→59Audit report→60Rectification of defects.→61Inquiry by Registrar.→62Inspection of a Cooperative Society.→63Cost of Inquiry, Inspection and Recovery of costs.→64Reference of dispute.→65Settlement of dispute→66Cancellation of Registration→67Winding up→68Distribution of fund of a dissolved Cooperative Society.→69Liquidator to deposit the books and submit a final report.→70Bar of Suit→71Insured Cooperative Banks.→72Power of Registrar to direct payment of dues.→73Charge and surcharge→74Prohibition of the use of the word “Co operative”.→75Punishment for false return , false information, disobeying summons order etc.→76Punishment for disposing property in contravention of section 47.→77Penalty for certain misdemeanors.→78Power to enforce performance of obligation.→79Cognizance of offences.→80Indemnity→81Bar to Jurisdiction of courts.→82Appeal or review.→83Power of Attachment of property.→84Registrar to be Civil Court for certain purposes.→85Recovery of sums due.→86Registrar may order a meeting of Creditors.→87-110Applicable To Short Term Co-Operative Credit Structure→111Co-operative Society to fee a body Corporate.→112Register of members*→113Entries in books of registered co-operative society shall be received as prima facie evidence.→114Savings of Existing Cooperative Societies.→115Construction of reference to Act II of 1912.→116Act VII o f 1913 not to apply.→117Acts of co-operative societies etc, not to be invalidated by certain defects.→118Power to exempt co-operative societies from provision of the Act.→119Rules and bye laws not to be deemed to go beyond the Act.→120Power to exempt co-operative societies from conditions as to registration.→121Power to order recoupment of expenditures.→122Power to seize records of co-operative society.→123Power of the Managing body of an affiliating co-operative society to enquire into the affairs of a member cooperative society.→124Limitation.→125Power to exempt cooperative societies from the operation of the Money Lender Act.→126Powers to make rules.→127Repeal and Savings→
India Code, Government of India. Text fetched 10 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.