(1) Notwithstanding anything contained in any law for the time being in force, a member of a co-operative society may execute an agreement, in such form as may be prescribed, in favour of the society providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such an agreement the employer shall, if so required by the co-operative society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amounts so deducted to the society within fourteen days from the date of the deduction.
(3) Where a requisition in writing from any society registered or deemed to be registered under any law in force in any State, in respect of a member of the society who for the time being is employed in this State, is received by the employer, the requisition shall be acted upon as if it had been made by a society in the State.
(4) After receipt of a requisition made under the foregoing subsection, the employer at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the society, the employer shall be personally liable for the payment thereof and the amount shall be recoverable on behalf of the society from him as arrears of land revenue and the amount so due shall rank in priority in respect of such liability of the employer as wages in arrears.
(5) The provisions of this section shall also apply to all such agreements of the nature referred to in sub-section (1) as were in force on the date of the commencement of this Act.
(6) Nothing contained in this section shall apply to persons employed in Railways as defined in Article 366 of the Constitution of India and Mines and Oil fields.
(2) On the execution of such an agreement the employer shall, if so required by the co-operative society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amounts so deducted to the society within fourteen days from the date of the deduction.
(3) Where a requisition in writing from any society registered or deemed to be registered under any law in force in any State, in respect of a member of the society who for the time being is employed in this State, is received by the employer, the requisition shall be acted upon as if it had been made by a society in the State.
(4) After receipt of a requisition made under the foregoing subsection, the employer at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the society, the employer shall be personally liable for the payment thereof and the amount shall be recoverable on behalf of the society from him as arrears of land revenue and the amount so due shall rank in priority in respect of such liability of the employer as wages in arrears.
(5) The provisions of this section shall also apply to all such agreements of the nature referred to in sub-section (1) as were in force on the date of the commencement of this Act.
(6) Nothing contained in this section shall apply to persons employed in Railways as defined in Article 366 of the Constitution of India and Mines and Oil fields.
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Section 1 · Short title, commencement and extentSection 2 · DefinitionsSection 3 · Promotion of Co-operative movementSection 4 · RegistrarSection 5 · Application for registration of co-operative societiesSection 6 · RegistrationSection 7 · Co-operative Societies to be bodies corporate -Section 8 · Bye-lawsIndia Code, Government of India. Text fetched 21 Oct 2026. Source metadata reports last modification: 2024-01-24. Check the linked official text and subsequent notifications when applying a provision.