English — official source version
the_sikkim_co-operative_societies-edited(1).pdf.txt
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The $ikkim Co-operative SocEeties
Act,
1978
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PRINTED A'f. THE
lgrg ,,
SIKKIM. GOVERNME}.IT PRESS
GANGTOK
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CI]APTb-R X
Exectttiotr ol' at,ards, tlecrees, t'rrclers and tlecjsictt:s
8o. Flnlorcement ol charge
tl , . Exectttion of orders etc'
s:'. Exectrtion of orrlers of liqr'ridator
8 3 . Attachlnerlt lrcfir re arn'arci
8a. llegistrat' or pers()n empoluered by liirn
DI
I5. l1eiou,.,r'v ot sttt'trs 11"" 1e Oovcrrllllcnl
r9
t9
20
2o
to be civil cotrrt fbr certain Pul'Poses 20
lo
86.
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88.
89.
90.
91.
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94-'
95,
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9{; A
cHAJ']'l'El{ xl
State Co-oPerative Barrk
Auulicabilitv of ChaPter
trilistratiori ol state Co-ope lative llank
fluii,',.r, rvhich thc Stat" io-opcrative llarrk rrlay transact
Cjovcrnutent shi\rc caPital
Comnrit.tec
i;kllr;;;,, tht'. busiucss of the State Ilank ot'sikkint
lssue ol boncls
Guarantec by (iovet'lrtrrcnt of principal o[' and interost: on botrds
Other gtrrantees b,v Covernnretlt
ttight of prirnary ogri.t'liutul credit society or the Stlte Co-opcrativt: &tnk ttr
pai, prior debts ro lltortS'rgor
i'.i*j"r. ,rf thc Statc Co-opcr';rtivc lJrink to sttPervlsc
Allotmerrt of shares
",.J',uo,ing
rights ol t6e nrer,bers oI tlre Stltr: c.'opt:rativt:
llarrl<
ctHAPTElt' xll
2o
2o
2o
2r
2r
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71
77
e 8. APPeals
t9, llcvision
r oo. Inter']ocittorY orders
ro). Oili:nces
ro?. Oflencesb;' cornPanre'
r oi, Cognizan<:e of oflenccs
lrrstrretl Co-opelative Bal'rks
97 . ltlstlrecl Cr:-ollerative Banks
CHAPTER XIII
Appeals an<l l{cvision
CHAPTER XIV
Offences arrd Pet.ralties
CIjAPTEII XV
Miscellarleous
t ot-. Addr.rss ol a soc:ietv
,;;. C"ly "t
tl',.' A"t, ri'les antl by-lau's to irlan to inspectior.r
, oi. Oti.',,'. to.be Pr<-rnounce<l
toJ, l'r'oceclttre ft, 1";;i;;t";'t ol"li.purcs,and power
",n,th" -*,".gli:I'rr
oI any ()ther
\e t'
;.;;", ,,,
''t',ou.,
I ai'fu'" i' "'it'''"tl
or an
"pp':al
is marle ibr clecision
rol:. l'o*'".t of'civil courr
r o(]. llar of jrrrisdicti<'ru of cottrts
r r o, Applicition of Limitation Act
r r r . I)owt:r to exrtrnPt class of societics
r r 2.. Service of notice under thr: Act
r r J. Notice llcccssilrY in sitits
t |+, IndcnuitY
r r (. Cotrrpattics Act' r956 Ilot to al)Ptv
, , i. Saving oi cxistirrg sor:ictics
t t 7 . I)o\\'(il's L() lllakc ru l()s
r r S, RePcal
r r9, Poiver t<'r relllove ditfictrlties
21
2j
23
23
7+
7+
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7+
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25
25
25
26
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26
26
26
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5e(:t.r()t'I
No
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Appcn<lixl.
The liikkinr Co-oper'ativt: Soc:ieties Act, r978
lu<lex
Serial No. & Flcacling
CIIA I''T}jR t
l'l{lrLlN4lNA R)'
Shorr 'l itlc, ('\t'eut ,urd ('onlrnclr( (:lttcr)t.
l)efitr it irrns
CllAl'l-[rl{ ]l
i{egistra.r
ll't:gistr-atiorr ol'st-rcietit:s
Socicties rvhich tna.1, l)(r registerc(l
Conclitions of' r'egistration
,\p1:Iicatir"rn lor rcgistration
l)os,er of the llegistrar to cler:itlc ccrtain questions
l{egistration
llcgistration Ct:t't ihcate
l{egistcred Societies to bt' l;oclics coi'porat(r
Ar.rrerrclnrcnts of by-larvs of' a Society
I'lcgistrar's power t:o rlircct anletrdlrrent ol' by-lar.'s
Wherr arnerrthrelrts ol bv-lari's contc i.t'rt<l ibrce
Clrarrgc of tranrc
Chaug,: ol lia.bilitv
Auraliarlatior'r, r,jn,-,sitr oI nsscts & Iiabilitics an<l rlivision ol s<.r<:ie(irs
l'orn,cll t:o clircct anralganratiorl and reorganisat.irln
t,iabilit.y ,rf rcsrrltant socicty to be lirnited
C'ancellation o['registration certificates oI societics itr certain crases
cltAP'rHl{ ill
A4t'nrl:t:r's of societies and thcir rights anrl liabilities
l'rrrsons rvhr-, nra.1, lrecom,, nl(ltnl)cr$
l.)is<1uaI i lic:a.tion f'ol trtetlbersh ip
Votcs r,f ntetrr bcrs
N4aun,:r' of' cxtlrcising r,ote
Notl irt.r I ntcttrbc,rs
lr'1<:r'rrber not to exr:rcise rights till <luc pa1'l:rettt trradt:
l{estlictions on }roiding of shares
Ilestrictions ort transfer ol sliarcs ()r in.tcrest
'Iransft:r ol: it'rterrest on d.cath nl'a mcmber
l-,iabiliti, ol' past trtt'trtbet' ancl t:statc of clecc.asetl trrctrt[:u'
, CFTAP]'I-,R 1V
Mauagcrnr.ent o{: Soci t:tiirs
l:inal atrthor:ity oi'a societ,\'
Marragt:nrcnt r.rI St><:iety
Annuai St)ncral lnecting
Spr:cial gcnt:ral mcctirlg
lilectir.rn oI rttcgrbers of cc,tnr',titt.:c
'l-cnrr oI ollice ?rf'a (.onruiittic
[-)isqurlilicatiotts to btr .rrt olliccr e!: 561:it:t]
I{epiescntation of r.vt:al<er so(:tions otr the Cotrlrrittce
Norninat.ion <-,I urdrnbers to the troutmitttres
Suuercg,siort olt cottuttittet)sl-
iir:t:trrirrg possessiotr of rccords, etc.
r\ct oI iri:ier.ios not to l.lc irrr,'alirlatccl bl cr:rt.aiir dclcc(:s
Pirlr,r$
No.
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CI'lA l''l'irll \V
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"r,o,g"
or a soc:ierv -:-::: ::--:"'",","i,.:,..r".
due by hiir
Chargc on the ittt.nrovable propcrt), of a ltteltll)et'lirr thc loarrs
I)riority of morlgage over certain clairns
Rcgisl.r'atiorr ol chalge atrtl rtrortgafle in lavor.rr o1'socir:ties
tl<-riing oI c,]rargc or Inort:gage in the llccor<i oi Rights
l{egistra.tion to constitutc ltotice
llcs1:r'ir:tions orr <lisposal oI property charg.rtl or r-nortgagecl to a
Chargc ancl set o[f of s]rares or intcrest of a nrertrber
Slrares, intercst, etc. rlot liablc to attachment
Registcr of tnotrl;crs
Adnrissiirility olt copy of cnt:'r' :rs evidc:trce
E.Ke rnption from cort'rltrtlsory rcgistra tiou oI i nst rr"ttlren ts
Lixr,:tnpt:ion fronr t;ertaitt taxes, fecs antl c[trlics
l)rrrlttctiorr I.rorn saiar;,to nlcet society's clairrt in ccrtairr casc\
for the anrount
bo rro n,crl
socictl
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SLat;c aitl to .socie tics
l{egisl:r'ar's j)owcr to cletertlitre tct'r.tts of ctnploytlt:rtt itt socrit:tit:s
CH/\P-IEII VI
Pr'o'perties an<1 firncls of socicties
liunds rrot t:o bc rlivided by rvay o1t prr.,{it
Contlibution to charitable pu j-pose
Contrihr"rtiorr lo Co-o1;clative llducation [jtrntl
lul i:stur<:nt of' l\rrr<.ls
l:(est.ric:t;ilrnr; orr loa tts
llcstrictiorls on borrorvings
llestlicti<:ns on ot:her tratrsactions with notr-rtrettbers
Ct-IAPl'ER ViI
Auclit, lnquiry, Irrspectiou ancl Sttrch,rrgt:
r\udit
lnspection ol' societjes
lnquiry by Registrar
Inspcction oI books ol inclebted societics
Costs of inquiry
Ilecovcrl' o['costs
Surchar:gr:
Suspcusic,r'r. rrI olTjcer or etlrPioyee of societ;'
CiIAPT'Irll Vlll
Settlen-rent of Disputcs
I)isputcs rvhich rnay be relerred to arbitration
Refcren(r(: ol dispute to arbitration
I)orver of State Clo-opr:rativtr Bank to.Proceed
CHAPI'ER IX
1 Winding up o1' soc:ietiex
WinLling up ot' societitrs
l,iqLridator
L'owers <;f' li<luiclator
Priority of contlibutions assessetl by licluictator
Powcri of Ilegistrar [o cartc:t:l registratioll of 1 <:o'operative socicty
) 1,
74,
15.
76.
78.
79.
rit
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Sikkim Act No, rz of 1978
The Sikkim Co-op.erative Societies l\ct, r978
An
Act
to consolidate and anrend t}e larv reiating to co'operative
societies in the State of Sikkim.
WHEREAS it is expedient to further Ihcilitate the (rrrn,ation
and rvorking of co-operative societies for the prornotion of thirift, self-help
anil nrutr.,a'l ,'id
^rllorg
p"rsons with comrron econonric needs and to bring about
improve',rent in agriftilture and industry through better methods of production,
bet'ter busine., "ni b"t,". living and foi that pirrpose to amend and consolidate
the law relating to co-operative societies in the State of Sikkim,
Ie it enicted by the State iegislature in the.. ',2E.,,.,.)oar
of the Republic of India as follows :
ChaPter I
Preliminary
(i) Tlris Act rniry be called the Sikkim Co-operativc societier
| 978.
(ii) It extend to the ra'hole of the State of Sikkim,
(iii) It shall come into force on such date as the Governnretlt rrraY,
Short+itle extc.nt anrl t '
conjmencement Act,
D$nitron.r
ro oJ t967
ro oJ' t949
tz d tsss
5 oJ' t97o
ro oJ r94g
47 o-f r96t
by notification in the official Gazette appoint, f' In this act, unless the context orherwise requires.
t, (o) 'Agricultural Relinance and Development Corporation' r:rean$
the Agriculiural Re-firrar.rce and Development Corpoiation const'ih,rted under the
Agriciltural llefinance and Development Corporation Act, I953.
- (lr) 'Barrk' irrclucles
(tj A banking conlPauy as defined in Section 5 of the Banking
RegLrlation Act, t 9+g"" (ii) State Bank o[ India constitttted unde.r the State Bank of']ndie
Act, r955.-
1iiil A 'corresponding new bank' constituted under section 3 o[
the Banking -ompanies (Aiquisition and Transfer of Llndertakings) Act, I970'
1iv; Any other banking institution notified by the Cenral Govern-
rnent trnder Section 5r of the Banking Regulation Act, r949'
(c) 'Bye-laws' means thi registered bye-laws'for the tilne being
irr fbrce, ancl includes registered alt'Iendments of such bye-laws.
(d) 'Commiitee' means the governing body of a society, by rvhat'
ever rlarne called, to u4rich the ntanagement of the aflairs of the society ir
en trusted,
(.) 'Co-operative year' means the period beginning from _rst July
or the date of comrneniement o[ business or the date of registration and ending
the 3oth June for the purpose of drawing up the balance sheets <lf registered
societies.
(0 'Deposit Insurance Corporation' mearrs the Deposit Insurance
Corporation established under section 3 of the Deposit Insurance Corpora-
rig" 4.t: -\s\ct, -195r.
!, qg) 'Federal society' n'Ieans a society other thln state^co-oPera'
tive baJk, iny not less than five members ol which'are themselves societies; and
(b) in,rhich the voting rights are so i'egrrlatc<l
'that the members which arc
sr.rcietics have not less thin tliree fourths o[ the tota] number of yotes in the gene-
State Government of Sikkinr.
(i) 'Industrial Development Bank' mearrs the Industrial Devclop'
ment Bank of India constituted under the Industrial Development Bank of
Inclia Act, | 964,
(j) 'Member' means a Person joining in the application lbr regir-
tratior.r of a society and a person adlnitted to membership after such registration
in?accordance *iih this Act, the rules and dre bye-laws, and shall include a
nominal menrber and the Government when it subscribes to the share capitrtl
of a society.
(k) 'Nominal member' means a person admitted to memberrhip
as ruch after registration in accordance with the byc-laws,
t6 oJ 1964
t5 oJ' r96z
2 "f rgll
, rf ,slq.
I\egisu ar
Sacicties *hich nty bc
rcg i stertd
Co n d.h i ons oJ' t c g i rrn -
tiol
(2)
,*
(l) 'Nertional Co-operative Dcvt'iopment Corporation' rueans thc
National Co-operrrtive l)evelopnrent Corporation constitutcd under the Natior-r.lI
Co-operative Development'Corporation Act, r 96 z.
(",) 'Oflicer' rrleans the president, vice-presidenr, chairrnan, vice-
chairnran, mar.raging director, secretary, manager, inenrber of cornrnittee,
treasurer, liquidator, administrator and irrciudes any other person empowerecl
under the rules ,rr the bye-larvs to give clirections in regard to the business of'
society.
(") 'l'rescribed' means prescribeci in tl.re rules.
(") 'Primary agricultural credit societ;,' shall have the nreanirrg
a"ssignecl to it in clause (cii) of Section r of tl:e Reserve Bank of India Act,
,931 and includes a Farmers Service Society or Large-sized Multipurpose
So ci ety.
(p) 'Registrar' llleans a person appointed to perforrn the I'unctior.rs
of the Registrar of Co-c-rperative Societies under this Act and includes any persorl
appointecl to assist the Registrar in exercise of all or any o[ his powers-under
this Act.
(C) 'lleserve Bank' nreans the Reser.ve Barrk of'India constituted
uncler the R.eserve Bank ol India Act, r934,
(r) 'Rules' means the rules made under. this Act,
. G) 'Society' n-reans a co-operative society registered or deenred
to l>e registeleci r-rnrler this Act:
(t) 'Soc.iety rvith linrited iiabiiity' ireans a society the liability
of whose nrenrbers is iimited bi'its bye-larvs to the an"rount, if ar"ry, unpaid on thi
shares individually held by them or to -such amoullr as they may individually
undertake to contribute to the assets of the society, in the event of its being
rvound up.
(u) '.Society rvith unlin'rired liability' nreans society the joint or
several liabiiity of whose nrenrbers to rnect any deficiency in tlre assets of dre
society in tiie event ol its being wound up is unlirnited,
(r) 'State Co-operative Bank' nreans the 'siklcim State Co-opere-
tive Bank l,tcl,' registered as a society under tltis Act,
Chaptcr Il
Registration of Societies
i, (,) "fhe Governrnent nlay a1:poinr I person to be thc Ilegistrer
of Co-operative Societies for the State of'sikkinr and may appoint other per:snr
to assist hinr,
(z) T'he Governnrellt nray, by general c,r special ordcr, confer on
eny person ap1:oirrted to assist the Reg.istlar all or any, of the powers of the Regis- ,
trar under this Act,
(:) Every person appointed to assist the Registrar shall exercisc
the powers conferred on irirn under sub-section (z) sublect to thc gcneral gui-
clance, superirrrenclence and control of the Registrar,
(,+) T'he Governnrent n1ay, by notification in the Offic;al Gazette
rnd.subject to such conditions as it may think fit to impose, confer a]l or any
of.the powers of the Registrar under this Act on thc Siate Co-operative Bani<
or
-an/
federal_ societl, or an officer o[ such ban'k or federal society and cvcry
such bank or fede-rai society or officer oir whom the porvcrs of thc Registrai
are so couferrecl shall exercise such polvers urrder the general gr.ridance, nrlerir-
tetrdence anrl control of the I{cgistrar.
- +. (t) Subject to the provisions hereinafter contained, a society which
has as its object the promotion of the ccorlonlic intercsts o[ its lnenibers.in
ac-cordance with co-operative principles, or a society esrablished rvith the object
o[ fac_ilitating the operations of such a socr'ety and the State Co-operative Bink
malr bg regisiered undcr this act,
Provided tirat tl.re Registrar shail not register any socicty u,ith uniirnited liabi-
litv,
;- -t (") No sociery, other than a fecleral society, sirall be registerecl
rinder this Act unless it consists of at least terl persons not belonging to t[e same
family who are qualifred ro be r*r:ml;ers u*dei this Act a,d wh"o iesicle in the
area of operaticll of thc society.
Explanation - For the purposes of this Act 'Faruily' nreaur
wife, sons and unmarrierl daughters.
-
(b) The word "linrited" shirli be 1he last rvord in
cvery rociery with limited lialrllitl registered under thi! Acr.
the husbancl,
tlic name of
Application .for regir-
ttati on
?ower of thc Registror
to decide ceftain qLtes-
tions
Regist,ation
Registration Certifcotc
Registered Socict.ies to
be bodies corpotate
Anendment oJ lyc-lav's
of o Societl
Segi.rtrar's powat to
direct omendnent of
bye-laws
trlhen antendntcnts of
b1e-law s come into.lbrcc
Change of nan'te
"(3)i.
6, (, ) For the plrtposes of registratiorr, an appiic,rtion shall be nredc
to thc Registrar.
(z) 'l'he application shall be signed - (a; in tbr: c.rse ol a society
ol which no rnember is a societyr by at ier,st ten persons qu,rlified in accordance
with the requirernents of section 5; ancl (b) irr the case of a society of rvhich
a nrentber is a co-operative society, by a duly authorised person on behall of such
socicty and where all the rnembers of the society are not societies, by ten other
lnernbcrs or when there ale less than ten other members qr.ralilled to <1c., so un<ler
section g by all of them,
7. Where any c1:estion arises whether, lbr the purposc c,f this Act,
a 'persorr resides in the area ofoperation ofa society or not, or whether a societT
is of the sarne type as another society or of dift'erent type, the qr,restion shail be
decicleci by the Registrar whose decision shall be final,
8. (,) Il the Registrar is satisfied - (a) t)rat the application conrplies
u,ith the provisions of this Act and the rules; (b) that the objects of the proposed
society ;tre in accordance rvith section.4l (c) that the proposed bye-larvs are not
contrary' to the provisions of this Act arrd the rules; and (d) that the proposed
society has reasonable chances olt stlccess, and that the registration thereof may
not have arry adverse effect on the development of co-operative movement, tha
Registrar may register the society and its bye-laws,' (t) When the Registrar refuses to register a societlr he shall co"
rnmunicate 'r,r,ithirr a period of six nronths fronr the date of receipt of application
the order of refrrsal, together with the reasons therefor, to the appiicant rrs maI
be prescribed.
9, Where a society is registered, the Ilegistrar shall isstre a cerrificate
of registratiorr sigrred by l.rim, which shail be conclusive evirlence that the societ"y
thereln mcntionid is duly registcred under ti'ris Act.
ro. The registration ofa society shall render it a body corpornte by thc
nanre under rvhich it is registerecl, having perpetnal succession and a comnron
sea}, and with power to acquire, hold and dispose of property, enter into con-
tracts, institute and defeird".ri*:,]q other legal proceedings and to rlo all thingr
necessary for the purpose tor which it is constitutecl.
(,) No amendment of auv bye-larvs of a society shall be valied un-
Iess it is registered uncler this Act,
(z) Every proposal for such amendment shall be forwardt:cl to thc
Registrar and if the Rcgistrar is satisfied that the amendment -
G) is rlot contrary to the provisions of this Act and the rr-rlea;
(b) rloes not conf.lict rvith Co-operative princliples; and
(") n ili promote the economic interests of the members of thc
sot:iety,
he may register the amendment,
- (S) The Registrar-shall forward to the society a copy of the regis-
tered amendmerrt together with a certificate signed by hirn and such certifiiatc
shall be conclusive evidence that the amendment has Lreen duly registered,
(+) Where the Registrar refuses to register an amendmenr ofl the
bye-larvs of a society, he shall comrnunicate the order of refusal together rt'ith
the reasons therefor, to the soeciety in the manner prescri.bed,
,2. Notwithstanding anything contained in section r r, if in the opinion
of thc Registrar, an amendnrent of the bye-laws of a sociery is necessary or
desirable in the interest of such society or of the co-operative mouement, hc
may, in such manner ar rnay be prescribecl, call upon the society to make any
amendment within sr.rch time as he may specify. If the sociery fails to makt
sur:h an amenclment witirin
-the
time so specifiecl the Registrar may, after giving
the society an opportunity o[ making its representarion, register such amendmeni
and forrvard to the society by registered post a copy of the anrendment together
wjth a certificate signed by him, such a certificate shali be conch.isive e.t,idence
that the amendment has been duly registered; and such an amendntent shall
have the same effect as an amendmer-rt of any bye-laws duly rnade by the society.
r3. An amendment of the bye-iaws of a roci.ty shall, unless ii i,
"*pr"rrJ.lto come into o,peration on a particuiar day, come into force on the day on lvhich
it lis re:gistered.
t+.
"
(r) Asocietymay,byanarnendmentofitsbyeJaws,insuchmanner
as nlay be prescribed, change its name; but such change shall not affect any righr
o.obiigatitrlofthesociety"orofanyoiit.m"*L,.rr,iurrmemberso. dJ."u.-.d
memberu and any legal proceedings pending may be Continued by or against the
society under its new nan1e.
(z) Where a soceiety changes its narne, the Regis*ar shall enter
the new name on the register of societies in place of the former name and shall
amend the certificate of registration accordingly.
Chatge of Liobilitt
A m a I g a n t a t i o u, t: r' o n
1J'e
t
oJ assets and liabilities
and ditision of rccietie.t
?cwct to dircct antalgrr,
aation and teorganisa-
tioa
toll
tIe
(4)
.$
ri. (r) No society rvith linrited liability shall change jrsell:inro a
Society witli unlimired liability,
(r) Subject to the provision ol'sub-secrion (r ), a society rnay change
the fomr and extent of its liab)liiy by an amerrclment of it, by"-lan* iir the nranner
Jrrescribed.
(l) When a society has anrended its bye-larvs r-urder sub-section
(r), it shall give notice thereof in writing to all its nreurbers ancl creditors and
rrotwithstanding any bye-lalv or contract to tire contrary any member or creditor'
shall, r,t'ithin a period of jo days from the date of service of the notice npon him,
have the option to withdrarv his shares or deposits or recall the loans, as t]ie case
rrray be,
(+) Any member or creditor who dor:s not exercise his option
x'itl"rin theperiod specified in sub-section (z) shall be deerrred to have assented
to the change.
(f ) An amentlment of the bye-larvs of a socicty cirauging thb fornr
r:r extend ol its liability shall not be registered or take eff'ect untii either -
(n) the asient thcreto of aii members ancl creditors has been ob-
tained or is cleemed to have been obtained; or
(b) all clain'rs of nrembers ar.rd creditors who exercise the option
let'erred to iir sub-section (z) within the period specified therein have been
met irr full.
16. (r) A society may, rvith the previous approval of the Registrar
and by.1 l'esoiution passed by at least a two thirds majority ol the nrenibers pre-
sent ancl voting at a general rneeting of the socicty -
(u) transfer its assets and liabilities in rvhole or in palt ro any other
societ/ i
(b) clivide itsclf into two or nrore societies.
(z) Auy two or more societies rnay, rvith the previous approval
o{ the Registral and by.a resolution passed by at least a two-thirds nrajoiity of
the members present and voting at a general meeting of cach society, amalgamate
drerlselves and form a new society,
(:) The resolution of a society uuder sub-secrion (r ) or sr-rb-secr-
(z) shall contain all patticulars or the transfler, division or anralgamation, as
case rrray he.
" @'i _ When a society l.ras passed arry such r.esolurion, it shall give
notice thereof in writirig to all its members and creditors and, notwithstanding
auy bye-lau,s 01'contract to the contrary, irny mer.nber or crcditor.shall, rvithi-i
a period oIthirty days from the date of service of the trotice upon him, exerbise
the optiorr to withdraw his sharess or <leposits or recall thc loans,'as tl're case nray
be.
(S) Any member or creditor rvho d.oes not exercise h.is option
within t]'re period specified ir-r sub-secti<;n (a) shail be dceurerl to have orsinted
to the proposals coritaineci in the resolution,
(5) A resolrtion passecl b1"a society utrrlcr this section shall not'
take eflect until -
(u) the assent thereto of'aii the members ancl creclitors iras lreen
obtained or iri dcemecl to have l',een obtained; or
(b) all clain'rs of tl.re members and creditors who irave excrcised
the option referred to in sub-section (4) witi.rin the period specifred therein
have becu met in [u]1,
0) Where a resolution passed by a society r.u.rdcr this section
involves the transfer ol any assets and liabilities, the resolution shall, not with-
standing anything contained in any law for the time being in fbrce, be a sufficient
::rL:l:::"
to vest the assets and liabilities in the transferee withour any further
t7 . ( t ) Nofrvitl:st.:uding anything contained in this Act, il tire ILegistrar
is of the o1:iniciu tlrat .-
(u) for the purpose of cnsuring econornic viability of any society
qrr societies I or
(b) for avoiding overiapping or couflicr of jurisdictions of socieries
in any area; or
(l) iu order to, secure proper mariagel'nenr of auy society; or
(d) in the public interest; or'
(") in the interest of the co-operative nloyenlent in the Srate as a
*'hole; or
({), in the intcrest of <iepositors; or
Gl in tlte interest of the co-operativc creclit stn"rcture in the State
as a rvhole, it is necessary to alnalgamate two or nrore societies or to rcorganisc
t
(s)
$
any society, he may by or<ler pubiished in the Official Gazette
gamation of two or more such societies into a single societl,
provide lbr arlal-
q,ith limited lia-
I "i a b i I it1, oJ' r esu I to n t
societ)l to be limitcd
Cancello t.ion of' r eg i stt tt -
tian certficotas oJ socic-
ties in cettairl cases
bility or to reorganise *the society.
(r) Such order may also provide for -
(o) recluction of the interests or the rights n,hidr the members,
cleposiLors, creditors, enlployees and other persons nray have in ol against an,v
sociel:y so to be amalgamated or reorganised, to sr,rch extent as the Registrar may
consider irecessary in the interest of strch persons or for the maintenance of the
business of that sociery having due regarrl to tire propor:tion of tire asscts of such
societl, to its liabilities.
(lr) such incidental, corsequential and supplemerltai provisions
as n.ray in the opinion oi'the Il.egistrar be necessary to give effect tt, the amalgarna-
tion oI the societies.
(:) No order shall bc tnade under sub-sect.icrn (r) unless -
(o) a copy ol'the proposed order has been sent in draft t<, each o['
lhc socir'.iies corrcernt:t1 ; ar;t1
(lr) the Registrar has consi<lere<l ancl rnacle such nrodifications iri
thcr rlrali older as may seern to hitn desirable in the light oi'arry suggestions or
objections rvhiclr may be receiveci by him within such perio<l (nor beirrg less
than filteen days tion.r the clate on which the copy oi'theproposecj order *,as
receivcd by the socicties) as the Registrar nlay fix in that behall, either frorn the
soc'ictir:s or an), membcrs, clepositors, creditors, er-nplo;,ees or othcr persons
coDceilled,
(+) Notwithstanding anytliing containecl in this Act or ir.r any other
Iarv, ol irr anv contract, au'arcl or other instlurnent for the time being in forc:e,
on the lssue of;,n order under sul:-section (r), the plovisions thereof shall b.:
binding on all societies and their members, past men'rbers, clepositors, creditors,
enrpio;,1es ancl all other persons having dealings rvith the concerned societies.
(S) On ancl fronr the <late from rvhich the ama)gamation takes
efft:ct, the assets and liabilities of the societies referred to thercin shall stand
ar.r.ralgarnated or mergeil with the assets and liabi]ities of the societies lbrrnecl or.rt
of such amalgamation and the nrentbers, creditors and debtors of such societies,
shall be deemed to be melnbers, creclitors and debtors, as the case nray b":, r.-,f
the nerl, society.or societjes as ordered by the Registrar.
(6) Notwithstandinganything contained in : ny law lbr rhe rime
being in lorce relating to transfer of properties or registration of dor,urnents,
an orcler issued under this section shall be s;ufficient con\/eyance to trnlrsfcr rl"re
assets and ]iabilitics of thc society or societies coverecl lr1, anv ,:r'der passed
rrnclel suL-,-section (r ) ol' this section.
h) Any orcler rnade bv the Ilegistrar r,rnder this section sirall be
final an,l ;orclusive, ar-rd shall not tre ca]lccl in question in any Court.
r 8. W]rere the whole of the assets ancl liabilities of a sc,ciety irrc rr'rns-
lcrrcd to another socicty in acccrrdarrce with the provisiorrs of section r G or
whereasooiet)/isdirecte<itobearnalgamatecrl undersectioll rT,theliabilityof the
other society, 'or the nerv society, o, tfi.
"n..
may be , shall be limitecl.
)
t9. (,) Where the rvhoie of the assets and liabilities of a socieiy are
transferred to arrother society in accordnnce with the provisions ol section
r6 oi section r7, thc rcgistration of ti-re society rvhose assets and liabilities ale
,o trar.,,fi:rr,,<1, shr,ll stand car-rcelled and the said socicty shail be clcemecl io hare
been clissolved ancl shall cease to exist as a corporate body.
(z) Where two or Inore societies are amalganrated into a nely
society in, accordance with the provisions ofsection r6or iection r7, the regis-
tration of
":ar:l.r
of the amalgamating socjeties shall stand cancelled on the regls-
tration of the rre..r' societ/, and each socit:ty shall be dee:mecl io have been dis-
solved and shall cease to exist as a corporate body,
(:) Where a society divides irself into t\vo or more societies in
accoldance u,'ith thc provisions of section r6, thc r'egistration of that society
sholl stand cancelled on the legistration of the new societies and tl-rat society
shall be iieemed to have been dissolved and shall cease to exist as a corporate
L,o <1y.
(+) 'lhe anralgamation, diyision or reorganisarion of societies shali
not in any manner whatsoever afl'ect any right or obligation of the amalgamated,
divided or reorganisecl society or societies or render delective any legai procee-
dings-by or against such society or societies and any legai procecding rirat might
have be,:r-r conrmenced or continued by or against such society or iocieties, as
the case
1n_ay
be, before the anralganration, division or reorganisatior.r, may be
continuecl by or against the resulting or the reorganised so"iety or societies.
(l) Where a society has not cor.nmenced business witl.rin six nlonths
of its registration or such furtl'rer tirne as may be gr.antecl by the Registrar afte.r
its registration or has ceased to function or ifthe Registrar is satisfied, alter nraking"t
Persons n'ho noy
nentbers
91[ r87t
DisquoLficotion Ior
mcmbcrship
( u*)
'tr':11
j1q1f i1';' r:, he tlrirrk, t;t,tln.,t rhc socir'lv rr, i,,nqcr.h.rs ge.LLi.elv,rs irs,',L-jccts.rrt: r:r irtr,t'c ol tltc ol.:jects spccilied ,r sccriorl--+
",.,,1
tll,"t its registr.atiorr
or:glrt irr tlre. i,ter.csts oi'rhcrg.r,,.,ial 1,,b1i., tr, i:. ..,,,.*,,,,i,-ir",fr"ii;;;;;;ot'det't:ancclling the registr'.itiJn rrt'the sr.:ciet;,, Tire soc.iety shajl f'rt-r1r the date
,,1'su,th o,:d"r nf cancellatio. lrc decn.,.:d to ir., dirr,,lue,l .,,,i ,1",^ll cease to exist
as a col.porate body.
Chaprer Ill
Men'lbers of societies a,d trreir riglrts a'cr riabirities
thc fbllowing, rrarneiy ;
(") an intiividual competent to contl'act unrle r sectiep r r of the
thr: lrrclian Cot-rtr.act Act, r g7z
;
(Lr) any odrer socicty;
(.) the Coverumenr;
(,1 )
^
a firnr, a cornp:rny or. any ,rtitcr bocly cor.l)oritte c,.lusritutcrl
rLrrdci a.u1' larv.lor Lhc tirn<' lLeing'in [,,rct ,rr
" ,oci"'ty ,..[irt"r"d under auv
lara' i^ fbrce relarilrg t. i.{cgisrratiin of societies u. o 1.,.,',1. n.o,l.fi*4 i;;h;;;1
.subjcct to such ter.nrs ancl Conditious As nra), be laij clou,n by tire Gover.nment
by gentr;al or speciaI orde r in this bc]ralf'.
(z) Any per:son who is dt.rly qualified lor adnrission as a nrenri.,er
trnclcrr thc pr-ovisiorrs r-,f'tlris ,\ct anrl the liye-lanus.ola prilrary agrictrltrrral crcciit
socjety, rnakcs an applic;rtion for rnenrbciship of sucli ,,,,ciciy,"slrail bc 4eemed
t<> have beer-r admitted as a rnenrber or'such socict,v fi.,,,,-, ti.,o clate ol. ,,,.;i;;of the_ ap;;lica,tion in the ol{ice ol the society
l)rovided that the,llegis.trar rnay, either on i-ris <.rwn nlotion at any time or on
.rn applicitior,_by rhe!rirrrary agriculcurar cre<lit,o.i,*y-r,l.,r|,,.,.,,,,1,". r6ereuf
nradc within ,ilteen day-s flol,r ihc date of such a,lrnissio,., ,nJ n{,t". givi.g i.c;r-
sona]rle opPortr.rnity,to.thc society an<1 the nrerrrber c.ncerrrcti, by;.dt r-;:.1;"
such person.as not eligible cither to become or to continle
^, " me,.,rb"r of such
socicty lrot' ti:e reasnni nreutiont:cl tirerein, Whcre t:he nrcler is to be pnrr"J on-
an application of the.,society or."a,nreinb-,:r cl'rerc.<,f rt ,hrI be p.,sscd ,"ir[i, ,tri,*y
rla1,s 6,",r,',', tht: iiate of recr:ipt ,['the applic;rti., hi, the ]legi.sti.ar.
(r)
. Any- r,r1r6p nr;r<lc by thc irc.grirrur- ..,,.,i.,, sub-sccrio, (r7 ol
tlris section sirali l>c {inal an,l sh:rll nirt bc.ollerl in cluestion in any Cotrr.t.(+)
,An application lbl urenrbcrship.in a sociel;,, orhJr trran a 1;ri.rnary.ag^ricLrlturai,credit society s.haI be dispose,t .ot' by the'society withi, tnr:trtonth frotrt tirc clatc of receipi rhc.er,f, nni the .lecisi,n .rf ih. So.i.ty on rlre
aPplication shalI be conrmunii"rted to tht: appiicant within filteen clays /!onr t6erlate o.l rlrr: clecision:
I)rovit.lerI thar if the dccision r-rf tl,rc socie.ty is uot conrmunicatecl to the applicant
'r irhj, a pcr ir,d of lo^rry.frve i.{: ,fr"T trre drte.of rhc r.ceipt of ,i.."
"pf
ri.,.,in,, ,l)y the Society, t)re Socie ty shirll bc rlccmcd ro ]r,rve c)ccici,:,'1, 61 t6c clarc of c>r-
piry oI sr"rch period, r.efirsirig ar]nrission t<-r tire applicant,
2I , (l) No 1:crson shali bc ,:iigiblt: iol aclmission .rs a prt:r.nl>cr of astrcir:t;, if hc -
(.) has appiied t, i:t: adjuclicated an insolvent or is an u1<lisc6argt:clinsolvent; or.
(t,l has been sentcnccd lol any offence, otl'rcr thap a5 oFflerrce of a
p()liticai cltaracl:er or an olti'er-rcc not involving nrorol tu.piru,i.., ,u,,f, sente.cc
rrot having.l,t'err r.,ersed or rhc ofte.c" p".cl#ed
",,,.1
,, p:;;;.j-rr n"" y"*., i,".not elapsccl lrortr the datc of expir,v of the sentence,
(r) II a nrenrber: bcr:ornes,subjcc-t roxn), of' trr,: rli:;quaii[ir:ations
spcr:ilierl in sr"tb-section (r), he shall l>e cle.,,',1ed to lrni,e ccaserl (:o be a.rember
l'rom'the: dat,: rvhen the disquaiification rvas inc:urrecl .
(: ) sLrbject to thc ge.e.ai. or speciar c,r.trers oI trre Iregistrar
Published. in the official cazt:cte,io individLrai rvho is a rncmber o[ a crer]it
societ), sh;rll ,:re eligible lor adnrission as a rnernber of another creclit society.
Every mtrmber of a socliety sirall ]rave one vote in the affairs oi at," ,o.i.7y;
proviclcd that -
(l) a nor.ninal nrenrber shaii not have tlte right to votc;
. (1,) a mcmbc' of a primary
"ag'icLriturar
c?e,rir so.ieiy srra, have
no right to vote in a ge'er-al lucering if hl ls"in <lelarrlt i,., 1rryrr"n, ol"ny ,rn.,, ,1u,,to that socicty for nrore than one veir: and L r
(c) where trre covernlnent is the nrcn-rber o.r the society, cacrr
Pelsoll nomillated by the Govcrnnlcnt on the Conlnittee ofl the society ,h'oil hn".,
orlc vote cxcePt whcn the right to vole is to bc exercisecl for electioir of of6ce
bexrcrrs of ther ,society.
l/otes of nembers
Jlannct ol exert:isnJ1 vote
Nonrina/,nentltcrs
fu{etnl:et ili)a l{) c(crl,il('
rights till drre .rrrwntent
natl e
Rcstrictirrrts on lwltlinq
o.[ ,thares
Rcstriction on t.randcr ol
thotcs of intetcst.
7'ron'rfcr oJ )ntercst ot't
dcoth o.f' o ntcnl;cr
I.ial:;lity 6f' post meml,crs
ond estote of dcceased
nnmLter
$
L), (, ) Flvery inenrber. of I socit:ty slrall exer.cise his vote in.ircrsotr at
a nrecting oi tl',e ,ociety and no menlber shall be pertnitterl to vo[e. bv proxl'.
"(z) Not$'iihstanding anythirrg c.,tai^etl iu r^tt6-scctitr, (r ), a
srt.ictr,r)r- corDor.lti(),., uifir,',, *'li.h is n r,rJ',rl,". of anrtlrcr soeiety ma;', strbject
t,,
^,,y
rule, ,rn,l" ,,,,d". this Act, appgint one of its mcnlbels 01'piirtncrs, as thc
cns" ,'',ny be, to vote on jts l>ehalf in the affairs of that societY'
1+. (, ) A socictl, may adurit any individtra'L oI other Pcrsorl or lirnt as a
rronrinal ,ti.,,,',1r.l. in acccridance with its l>ye-larvs'
(u ) A nominal nrenrber shall not be entitiecl tc.r.ltt.tv sitare, in,anv
forn.r ruh"tlu'"ver, in the assets or profits of the society or to beconle arr officer
oI the society.
(l) A irominal nrember shall have such priYileges rnd rigl-rts of a
rnertrbc:'",r,i'tr. sLrbjcct to sttch liabilities of a metnL,ttr, as trr'r1'be specified in the
by,,:-lar'r's of the society.
,..1 Jio nr,,rrrber oi I sor,itjl. "haii i.r:elc i:r,: th.: r'ight.s t)[ .r tl ,..,il,bel trnless
lte ha.s nlarle sr.rch paynrcnts to the societ/v irr respect oi nreml-:e,rsh'ip r:r'iras i'rc-
qr.rirtrl :uCl, ini.,:r.st irr the society, as 1llny be specified irr t'h'r tric-lart's'
2(t. ln anl'socit:ty, no tlreurber othcr.thal) thc Covcrtlrlrt:nt or ru1'otht]t'
,u.i"g, shall hr1l.t ,,. Iil.re clrim to n*rorc thiltr.sr.rch.porti<rtr of the total sharc
..',pitai of tlre sot:ietl' r'r'hich cxc:t:e<1 onc-filth thcrcol or 11s 5,ooo/' tvl:it'iit:t't:r
is Ies;i.
Provirieci that the (ioverntuettt nrav, by notiflcatjon 1n tli': OHicial Cazetl:e,
speciIy irr rerpecr oi arry class ol societjes'a higher nraximLttn thatr onc-6It]r oI the
.i-'r,r"'.n1rit"l <,r
^
higitci a)t-Iotlnt than Rs.5,ooo/- as the case ntaY be'
27. (, ) 'fhe transfer r.rf a sl-rare or interest ol'a nreurhcr in the capit;li of
a socicrr, ri-,.11 lr(,, suirjer:t to the restrictions specifi,:d in section r6.
(l)Notrans{ret'h1'anrclll;r'rof'l-'issha;'<'ol'illtertlstilt't'oi:ir''t,v
.,lrali be valicl unlt:ss -
(n) the urtlnl>rrr hrs lrelrl such sl,are or intercst fbr rrot lcss than t>t'tt:
Yexl' ;;
(ir) thc: tr.ansfer is rnadc to ti.re societ' or.to .1 me.rber of t[e socic.t.y I
;Llttl
(c) the transfer is approve<l by the Conr.nrittecr ol the societv'
28. (,) On i'he <lealth of a mernber tl.rc societ;,shall tr,rnslrer tl-re.share
<-,r: intcrest of the t:leceased nrctll>er to the person or Per);()tls troniinatcd in
acc6rc{a;j.cc rvith the rltles or, if no pers<tn has been so nomirtated, tc sttch PC-l'soIl
n, nr^y;Ippr-ar. to tlrt: Cornrnittee i<, bt, the heir or le'4rl foPrcst'rltittili' ol ti',,,
,leceast'c] nretnber:
Prov.ide{ t[at strch nomir:rec, hcir t>r legal .r'epres.'ntati\;c, as tltr: t:osc
rrray lre, is aclmitted as the l'llen1ber of the society;
proviclerl iirrthcr that nothirrg in this sub-section shaiIPrevcnt a mlrrot'
{)r a pcrrion of unsoundTninrl from acquiring hrv inheritarrce the share or inte'rest
,rit a cleceated trrenrber irl a s<-rciety.
(z) i'lotwithstanding anvthing contained ln sr'tb-sectiorr (r ) anv
:ir.rgh noniinr:e, lttit', or a iegal i'ept'eserntative' as thc crse n1a)/ be recluire th(:
so(:i(.t\. 16 lrir.), to irim thc value of the sltare or intercst,rl the rleccascd tncnrb.rr
ascc-.t;.inc(i in a<:c,rrtlarrcc'witlr the I{trles.
(l) The society rray Pay all othcr n1or1cys. tlue to the deceased
..\ernber f-,.,1 tlr., society iu srch not-nint:e, heir or legal represerltative, ari the
cast: nra v be ,
(+) Al1 transfers and paymentl made by- a societY itr accordance
u,itir the pi,ruisions of this section shail be valicl ancl effectual against any demand
rrradr, ,.rpon the society by any other person.
29, (r) Subjecr to the provi.sions of sub-section (2), the jiabilitv_of a
pest nternber or of thc estatc of the cleceased meml:er"of a society lbr the debts
irl,the scciety as they existed sl.rall continue lbr a period ol two years -
Gi in ihe case ol a past member, from tire date on which he ccased
to be i member; ancl
(b) irr the case of a deceased metnber from the date of his death.
(z) Where a society is ordered,to be lvound up under section 75,
the liabiiity o1'a past member or of the estate of a deccased member who ceasecl
to be a melnber or died within two )rears immediateiy preceding the date of the
order of rvinding up, shall continue until the entire liquidation prriceedings are
completed but iuch liability shali extend only to dre debts of a society as they
exisied on the date of l.ris ceasing to be a mptnber or death, as the case mayeb,
l:inul outlnrity of o
ncietlt
,1{ o na gc ne nt of Soc i ety
,4nnual qatero I ntcct in ct
t t*)
Chaptir IV
Matragement' of, So<;ir;ties
]o. (,) The linal authority of erery sr.icir:t,v shall vcst in the general
body of'uremLers in general meeting:
Provided that in such circunrstances as may l.,e prescribed the finai
authority nlay vest in the deiegates of such nternbers elecred in the prescribed
nlanrler and assembled in general meeting,
(z) The genera) meeting shall be sunrnronecl and shall exercisc
its authr>rity in sr.rch mallner as may be prescribed.
I r . (, ) 'i'he managen'ient of cvery society shall vest in a contnrittee
(:on*(titLlted in accordancc with tl-re bye-larvs.
(l) No person shall be eligible to be elected as a member of a
conrmittec urrless he is a rnernber of the society.
(:) No rncmber of a society shail be eligible tbr being electecl. as a
nrcnrber ol the cornmittee of that society or of any oiher society tb which such
society ls affiliatecl, if such member -
(") has been adjudged by a c6rlpstent collrr ro be insoivenr or of
r-rrrsound mincl ;
(lr) is concerncd or participates in the profits of any (ontract rvith
thc society;
(c) lt;rs b,:ctr punislrrd rt,ith inritrisonnrent for an ol{:cnce: involving
rrioral tur'llitucic;
(d) I.ras1lr:cn in d<:tault-in paynrenr olhis dr,re,; to r'llt: societT lbr a
contirtrons periocl o| three rnonths froll the clue dater or arly cxtended period
tfrercof.
(") carries the business of the samc kind carried on by the society.
t+.1 A mcmber of the comrnittee of a society shall lease to be a
rnr:nrbel r-,f such contnrittee if he becomes sr-rbject to any of the disquaiifications
rnenti<>necl irr sub-section (3) and the vacancl, so u.iring irr the cornmittee shall
be {illed in accordance witl"r the bvc-laws.
32, (,) The general tneeting of ev,:ty sueicty slrall be held rvithin a
period ri[ six lnonths after the date fixed lo;' nratling-up its accounts lbr the
co-operatil,e ),ear under the rulcs lor the time l-:eirrg in Ibrce, for the pur.pose of -
(n) approving the pr:ogranrrae of tire activities of rhe society 1rr.c-
part:d by the conrmittee for tire ensuing co-operative year;
(b) clecting the metnbers of the committee other than mernber.s
nornir:ated urrcler section 38;
(") considering thc audit report and tfie annual l.eporr '
(d) clisposing of the net profits; and
(.) considering-any oshs. matter wlrich niay be brought forr.r.ard
in accoldance w'ith the byc-lau,s:
Provicled that the ilegistrar may, by generai or sl.rccial ordcr, exrcnrl '
thc period flor- holding snch nreering lor a hrrr:Jrer pcriod not exceeding threc
rnonths :
Provided t'urtlter that, if in ths opiniorr of the l{egistrar no sucl'r extcn-
sion is necgssar)/ or such mecting is not calied by the societl: within the extended
period,.if any, granted by hitn, the Rt:gistlar or any persop ar"rt[orised by him
r1a)/ call such ineeting and exercise all polygy" and fulctions of an oftlcer 6f the
societ/ author:ised to conveuc such tneeting and that meeting shail be cleemed to
lte a general me<:ting duly called by the society, The Regisrrar may oydsy 1h.g
tlre experrditure incurrecl in callirrg.luch a nrei:ting shall be paid our of the funds
of rhc society cr l;y such person-or persons who, in thg opinion ol the Registrar,
werc r(rsponsibie for the reflusrl or I'ailure to (ronvc.c the gene.ai meeting.
(z) At every annual gcneral rneeting ol a societl, the conrmitteg
shall lay belore the society a statelnent showinp the details o[the ]oaus, ilany,
given tir any of thg *"*.b"., of tire coprnrittee"(1ring tlre prececiing lear,
33. (r) _ -Thecomr:rirteeofasocietyrnay, aranl,tinre, callaspecialgene-
ral nrecting oi the society arrd also shali call such rneeting rvitjrin one rnonth
after the receipt oi'ar requisition in writing from the llegistrar. or from such num-
bcr o_f rne rnbers or. a proportion of the total nunrber of nrembers, as rlay be pro-
vided in the bve-larvs.
(z) Ifa special gcneral meeting ofa societ/ is 1ot called in accordalce
with the re_quisition referred to in sub-secrion (r), the Regirtrar or any person
authorised by him in this behalf shali cail such meeting and exercise ali powgrt
and functions of an officer-of the society y!" i, authori"secl to convene ruih rp.-
c.ial general rneeting ahd that nreeting skallle cleenred to be a rleeting calle<i'by
the ccrn-imittee, and the Registpar ma| o1d{:1 that the expenditure iicurred in
Spccial generctl nteetittg
Eleaion oJ ncntbcrs o{
committeer
'fern ol ofiice of a
Comntittec
Di sguollJictttion.r to Ac
an o{fiier 2f a sociew
ncptcscntation oJ ncaker
section on thc cotnmittcc
N b mi nat i on oJ' to cmb er t
to the conmittee
(e )
calling such a meeting shall be paid out of the funds of thr sociery or by any
such.perso-n o.r persons *[o, iri ghs opinion of the Registror, ',r.",."'rcsp<.,s15161'.
for the -efusal or failure. to corlvene the special g".,...I nr."iinn.
j+, (,) The superintcndencc, direction"and control of"the preparatiorr
of ths qlg6loral rolls for, ind the conduct of, electibns of the merirbe.rs of the
conurittees of such societies or class of societics as may be notified by the state
governn-rcnt in the official gazette shall be vested in su<;h returning tj16sgl.5 nos
l>elorv the rank ol gazt:ttecl ollicers as nray be appoi111..d by the Cov.:rnnrept. ip
this tr,:half.
(2) 'fhe vote at such elecrions shail be bv secrct brllrrt.
3 j. , 'Ihe ter"nr of olfice ol the elected mentbers ol'the conrntittee sha]i
be such, not exceeding three (lo-operative yeai"s inch,rding the co-operative year
of their election, as may_be specified in the bye-larvs of ihe societyl
Provided thar the elccred n,embcrs shall continue ro hdld oftice tiil
their successol's are electeri or nornirrated undcl the provisions of the Act or
tlr,.r rult,,, ,)r b)'r,-lalvs.
r6, Notwithstanding anything conrrirred in this Ao, a person slrall be
tlistlr"ialiiic<l f(>r election as, o1 [o1 bCing, the president, vice-presiilent, chairnran,
vicc-chairmirtr, Secretary, Joint Secrctary or treasul-e r. of a conrnrittee, ,
(a) ilhc has hcld any such olfice on rhat commirree during rhe pre-
r:eding t\^,o conr-ec:utive ternls, whether full or ptrt;
(b) if he holds any such oflice on i cornnrittce oi'anorher so(:ie(1,
of the sante type i
(c) if he holds anlr s,,"1, office on the cornnritrces ol threc o1. 1110yg
societies olr different types inclu<ling thc State co-orclinati'e Barrk or a federal
society: '
Provicletl that nothing containctl in this sub-scction shiril be rleenre<l r.,
disqrralitrv an1' suc:h.person for election as, or lbr bcing, a delegate nl a societ), or.
a rlember of another comnrittee.
l:.xplonat.ion r t Where alty pet'soll hoiding arry ofllsg as albresaid irt thr: conrrnen-
nrent o[ this Ar:t is again clected to any such of6ce after suclr
conrmencenrent, he shall, for the purpose of this sub-section,
bc deemecl to have held that offici for one term beforc such
election.
l)xltlanatioi t: A person who has ceased to holi u,r) sr.rch office as aforesairi
continuousl)i for onc full term shall again be qualified Ibr election
to any of those offict:s.
;.7, On the_ comirritlce o1' a primary agricultural crgrlit societ/ or. orher
societies as n'ra,y be prescrilled, not less tha-n ons-third of total seats shnll bc
reservccJ for economically weaker sections of the men-rbers \vho, as land olvnerfl
or tenants or as both, do'not hold more than the prescriberJ arca of agricultural
land or rvho fulfil the prescribed condiglerr, and ii no such persons ai elccted,
the conrrnittee shall co-opt the required number o[members from apong51.1[i
persorrs entitled to such represcntation,
j8.. (r) Norwithstanding anything contained in this Act, but subject
to the provisions o[ section 36, where the Governnr€nt has subscribeti to'the
share'capital of 3 5ociet/ or has asl"isted directly or indirectly, in thc fornratiou
or augmcntation ol the sliare clpital of a
-society,
or has guaranted the repaymellg
of principal and payment of irrterest o1 loans and advapies 1o n society, ,ir" g"-
vernment or any o.rher person authoriscd by it.in rhis behalI shal] have the rilht
to nornir:ate members on the conlmittee in dre manner prescribed below fi2.
(i) rvh-ere the Government shareholding is not iess rhan ons shlld
and nor nrore than two-1fu.4. of ihe equiw the nunrber of
governrrient nominees shall nor exceed o tiri.d of the total
numtrer of members oI the committee or tirree, whichever
is less.
(ii) where the Governtnent holds more than two-thirds of the total
equity, the numtrer of Governrnent nominees sha]l not exceecl
one-half of the totai number of members of the committee or' five whichever is less,
Provided that in the case of societies registcred after the conuience-
ment of this Act, ths Qovernment may have the
-po*.. to nominate the inifial
committee for a period of 3 yearc or such extendedperiod as ma) be decided by
the Goi'ernment.
- (z). A person nominated under sub-secrion 1r; shall hold office
during the pleasure of the Government,
;,9, . .(
r ) . If,. in ths opinion-of the Regisrar, the comnritte" of anI socieg
persistently makes defaul,t or is negligent in th'e perfosn^rr". of the dutiesimposg;l
S u p e n u r ion oJ committec
Sccurino possetsion of
rccorcls ctc,
,4ccs oJ'socict.ic,r /)rrf to
i n,/dl id drcd ly, rrrrr,,,,
dcJects
Fir.st chctgle of a socieg
on ccrt.ain novcahle
asse$ of nlcinl.)cr;[or tltc
anount due l:y hint
(ta)
o, it h.)' this tct.or trr. ,u,r,lto. the bye-.rarvs, o1. 6r)11.1111i15 ary a(:r rvhich is prc-juclicial rr) rhe irtcr.rst ,f rhe,society, 6,. irr-r,r.,,,rtr".r, ollt," .],,_u0".r,,,,.. ,.,.,ou"_n1!nt in tlre starc, or.u.iifirlly disol,evs or. liriJs to,.,,'1,01,"'ir"ij, nny lawful o16rrr.or dircctiorrs issur:d urrder. tili, A.t.o',. ,t * ,.,,1"r, ,ir"'.I1"J,.,,..,. ,.
rtre con,rirre. ;; ,,;,;;;;;,;;";:;;; ;,, n[,1.,.,;on.,, if ,Jny,, ,, Jliij iii1 fil;:l.eltrove tire cornrrittcel and-
(rj orclcr fr.esh eleclion o[ [he conrrrrittee, oi.
(it) aPPoint 9l1c or nro|t: adrl1inistrntors ,u'}r,, ,-,"."4 not be n]cnrbersof 1lq 5rr6i.,.r, ,:l
]l]"]Ige
rhe aliijr.s,,,t'rlrc socierv for i, p.,lioo ,.,o, excectlingo.c y(:;1r' sp,r':ifit',.i irr. thc or'<rt:r, rvhich pcriorr ,,.,oy, n, trr"',rir..,..,tio,r of thc Jrc.gistra' lro oxtr.rrrl.:tl-rl'orrr tinrr: to rirrre, 5., Jro*.r,/ver, ,r.,^, ;i;;'ogg,."g","
;>er.ioclcloes not exc,r.rr:tl thrcc: years.
(z) I he ReqistraI rriay fix .'rny-r'enluncratiorr iirr thc .rrlririrrjstratoi.,
as h,,, r,ay think ric. srrc]r rerrrurre'-nci,r,.,'rr.,aiI t . 1r"ia ,r,,1'
"i'rlr. furrc]s of tlrt:
^society.
(l) -l'hc adnrinistr.lror shall, sul;ject t() rhe coprrol ol the llegistraranrl to such ilistrLrctions as he n-ray ti.orri tinre to tin)e irru",
"*"."ire arr or anvo{: ths po1y6l.:q of the corrlr.rrittt:.. oroI an) oiTiccr ot rtr. ,o"i.,y ;;;jt;;.ij'r;:i]actio^s as nray he r.t:quirt:tl iu thc i,tereit of the sL)cierv.
--) -'
(+) l'he adrnirristrator or aclrninistratiorr'shall, befor.e shs .*,ri..,r>l'his-.r their tet'nt of ofTice, taiie all stcps to constitute a new con*rittee inaccorclarrct: .r,it:h the l:ye-laws <_rf thg 5o6it:ty.
(S) llcfore taking arry action u;(lcr. sutr-secri<_rrr ( r ) ip rcspcct of a'sr)ciet/, thtr flr1gi511'1p slr;rll <:Jnsrrlt rhc Sratc C()-op(,r.ari\(.tilnI rn ra,]rit.lr it is
i rr r l.'lr tc, I .
+o. (r )(a) Il the lt:cords, r'trgister-s, clocunrents o1 th(: r;ook5 of, accounrsr/:15riqie1y;rre lir<elv to,.rrc rarrrpcr.rd.,tiri, ()r (icstl.o,ved.r,.,,r th" rirrrrrs, sgc111ig1s5a^tl,.ot'er l)rot)crries oi'a society art: lil<cly , t,.' ,nir.pi,_,pri.r.,a or. r.ris-apJrlirul ; or
(l') li'the cotrrnrittee olra societl is lec.nstitutcri at a gt:,er.al ,rec-tirrg of thc ,,oq1r,gy or tht, corrrrrritt.:c of a soc;i,1, is I.ent()yc(l [:y thc I{egistr.rr..rd(:r'suclioli r9 o' il'.the s.cir:t-y i.s orJ,,,.",1 t,, 11,.
-r,",',"
,,r',riri,]l.,ll:fj;t';;
arid th,e outgoing rueml;ers; of'rhc conr,r.ritue rcfusccl ,.-i;"1,i,i,,;;;. c|arge <:f r|e
l.::".:1,. 1",1,.l)
")l).'tics of the sociery trr tliosr. l::.vi.o,r .,rtitl,,,l-r,r reccivc sr.rchcJIiir'tc th(, l{(,,gisrr.ar or. ln.),other. I:<:r.:;o:r arrtjroriscii [,y hirl i,,r rl,1is Ir"l,;r)l ,nay
'11)l)lv t() thc nrag'st'atc, rvithirr rvhost: jrrlistli.tio,,, rl(,,'ro..i.,iu t,,n.tiors,;orsc(:rrrinI th,' recor.<ls arrrl
.pi.opr:rty
ol.thc society
(2) ,ll1.:::"]ll:,:lf arr epplic.rti<rr, r.,,,.1.,.sub_st:c:rion (r7, rhc rnagis-trilte rrr.ly, r)) .r \1 ar"rirnr, alrrjloiisc i,iy p,r11.,, officr:r nor irr,i;r, ;lrl r..rnk ,f su5_Irrspector tc) cntcr.an<l scar.ch ony p1"r'., wJrcr.c clre ,".o.,ir-"n,i ,ir., pr,rp.r,y nr..ii.tPt,rr ar..: ht:licvcd.to be i<ept nn,i ,o ,"ir"-rrrc,h r.gr:p6ls,,n.] pr,,1^,,.,i"s; a:.rd the.ccorcls and prcpc.ties so scizt:cr shali b. r.rirrcrerr
"",,,.;;';i;f.,"rlu'.,,rn.,r.,itt"" o,..rrlrrrirristiatt)r':: .f tlrc socicL,\' ol rirc riquiri.tor, as tl)e cls,: ,r;rv be.l,c +r . No act (,f ;r socii:rI ,;r'of arr) cirlririr.Lc,: r,,;i.;;,
"ii;;'"J.,.f f 5e ricc'rc,lro bc irrv.rjirl bv rca;on"orrly or tI,,, .,'*irt..,,.,,, ,,i",1y a"r,..', ;]';,;;,i,",,.. lb1oyy",1or: irr tht: constitution of the socier,v or r.)f thc co]llluittee or.in Lhe appoiDtrnent orelcction of 111 rii{j1.1y1. o1. o11 tlls gr,rur_.<J rhar sLrc:h
"gi."r. ,r"r-,i*ilJ.f,n.a for hisaPPointr)rent.
Chapter V
Rights ancl privileges of societies
+2. (, ) Notwitlrstancl.ing arrythirrg e onraitrr:rl irr any o1f1.11. la rv lr.rr
:l::,',,]" being in forr:c bur
',,b;.".t ,u ,,,,y.ioi,,, ;i,fu C;r;,;.1.,,,.,.'n, irr resr)ucrot liincl t'cve.'.rc.r alt) s.t)t r.('c(r!ei.ablc as la,d l.cvcn.c.r.as j;Lrlrlic ,1.;r,i,.,J;any claim, auv dehr or other a]r.ourjt duc ro a s()(jicty it;,r),'.;;;ri;",.i,.,.1u.ling o
l)irst or rlcccast:d rlcnrlrcr sh,r.ll bc a first r:hrrgc.rpu,i ttr. crops or.olhsr ;g;;_cultrrral produce' tt::I:l
,i1'r:t:''
for crttle, t*,'i'.,-,ttl,'"i ". ,,..rrj,,'ii' ,rprejrrcrlrsor r,aclri'er')', iau' .1i1t(:rirrs rirr nrl.uracturJa.d ony rinirh",r pl." jr.r, ruanurac-tureci froi, such rarv rnarerials o.a,^ed [y or beloni;t;;:,i;; ;.,l"r.,b"r, lrnrtrneml;er or for,ring part of the estate of th'c rieceasecl irr.,i.,lr.,. orl*," .ur. may be,
". (r) Srrch charge s,all be avaiiablrr cve. .s ngoi,rrt o,rr'n,,ror-,n, ,"-coverable b1, the covc,rnrelr as if ir rvere an o.r..,arl orl,iJ ;;;;,i. subseqLrenr
llJ]:::"1:
,].:g
:1,1.r"
d.ebt or thc liabilirv for rhc u0,". n,,.,o,,,,, .rr.,.'r. *,. sc,cietyreterl.eci to ilt .sub-section (r ).
-,
(.1 ) No pcrson shall tra,sfcr alry l)roprlr.ty rvhicrr is subiect to suchcnarge except \vlth the previous peflnission in rvriiing of the societl, rvhiclr
l^"11,.:lll:ilt-.:lid l,y i..n'[.,., *itliour suctr p., ",t..i."',1,.1i, l,*.",*,,r,,*,"a_
ing anything contained in any larv for the rinie lreing in forss,.!g,oi6.
Chorgc on the intnovable
propert! of' a mentber,for
the loans i'orrov'ed
'Priority oJ ncrtgoE1e
aver certain cloims
Raq i s u a t:io t t <,.[ c h o r o e
ond nortgarla in ,farour
of' societies
Noting oJ charge or
nlottga7e created in the
Record o[ R;51hts
Reaistration ta constitute
notice
( trt )
$
(+) The chargc nnder this se*ion shall not be available againsr thc
ftrll<tr+,ino articles of s.rrch menrber:
(.) thc rrecessary wearing ai)])arL:I, co()kir)g icsScls, betls and bed-
ding ar:d such personal ornantents of a wornan as in accordance 1,it[ religious
Usage cannot be partcd rn'ith by h,:r ;
0r) plougl.ts, inrplerrrents of husbandrl,, (tne pair,['p]oughing
cattle, sr-rch nranure ancl seed grairrs stocked by hinr, a.s'llray be rrec,cssaly lor the
due cr.rltivation of l-',ir lanris in ti-re cnsuing year.
+3. (r ) Notwithstandiug an1,1hiug contained in th-is Acr ol ir.r any other
larv for the tinre being in ft>rce,.but suLrject t6 any <rlairn ttf rhe Governnrent in
respeci of land revenue, ivhether prlor in time or subsec|.reDt, any nrenrber of
a s()cicty, owning any lancl r:r having intcrest in any land or other ir-nniovable pro-
pelry .is a tenant, rnaking an application lbr financial assistance fron"r the society
shall make a deciaration i,. 1i1g form prescribed cl'eating a charge in favoLrr of the
society ..;lt such land or interest or su<:li portion thereof'as rrray be specifiecl in tl-re
<icc.iapriion, as sccrtrit\, [!.,r thc paymellt of'tir,' io,yr to ire gyatrtecl t,, ]ii'rp ()l] thc
application ancl for all futrrre loaus, if iury, that rnay be [,rante(] to hirrr by the
socre ty ll'urr-i tinre to tirne subject t(> sr.rch maxirnunr as lnay l.,r rlctr:rnrined by tht:
socioty logc.thcr rvith the .intcrcst or-i such anrount ,:l the loans"
(2) SLrcli declaratioll 11111, be varied or cancclled at any tirnc b,v thc
nre;nl>er n,ith tlrt: colr:ient of 1l1e 5ociggy in vrho.se lavour it is made.
. (:) Subjecr to the Provisi<;ns of sttb-st:r:tiol (r ) and to the clairtr
r.r{:1ny p111'1io11 iu u,}rose lhvor.rr a chargc i'ras been createcl beforc the date of regis-
tl'ation of thr: declaratir:r-r ma<lc urrdcr sub-section (r ), no laud in respect of which
sur-:h dcclaration has becn nrarlc or any part theret>f ol on), intcrcsc therein s]rall
bc scrlcl t)l' otllcrwisc transi'crrecl until the cntire amout of t.h,: Jorn ol rdr', r.rcc
takeu 1,.y the nrcnrbcr fronr the soc.iety together H ith intercsi thereolr is pai<l
t(r thc s()(ietyI an,J any tra.nr:ar:tion in contraver)tion of this sub-st:t:tion shall bc
void.
l)yor,idt:<l that if a p&rt of thc arr-rount horrou,ccl br, ^ menrl,.r' is paid, tht:
socict) nlay on application lrort the ntembet releasc fi'om the chargt: sur:h part
of tjre lirnd or interest thcreirr as it nray ciecm proper, having du.r re,ard to the
security or the balance of thc nli'rount rerrraining olrtstanding fropl 111; member.
++, A nrortgage exer:L.rted itr favottr of a prinrary agricultural c:redit
socicty ()r the Statc Cct-operative Bank shal] }ravc priority over an) clainr ol thc:
(iolernlnent arising fronr a loan grarrted subsequent to the e xectition of thc rnor'1..
gage.
4.5. (, ) Nlotrvithst rnding anytiring r;oDtl'inec] irr the [n<liiil Iiegi:]rra-
tion At:1 . r9otl , a declaratior-r nladc rrldcr sub-section (r ),r)l' 511c1[rin 43 or a
v.rriati,:rr or <:ancellation nracle un<ler-srrb-section ir; oJ'section 43 or i+'nrol.tgage
c.xecutcr-i lry a n'reurbcrr in flavour of a primar.y agricultr.rral credit socicti, c.,r Stirtc
rJr-r."operative l3ank, as the casc n',ay b,.l, in respcct of financial assistance given by
[hat societ),shal] be dceurerl to have [;.:cn duly registered in accordancc rvit]r thc
provisionss of that Act u,ith cffect fr<)rn the date of such cleclaration, varjation,
c:ance]latlr:n ()f lnortgage, as thr: casc nray be, provideii tha-t the sr:cietv scnds
to tlrc Sub-Registrar within the local linrits of rthose jurisdictiolt thc r.r,hole or
any pxrt of the lrroperty cl.rarged or nrortgagecl is situat,:d rvithin thirty da1,s
from'thc datc oi'sr-rch <lcc]aration, r,uriation, cnncell?rtlon or']norrgage, as the
(.^1() 1.tr.r l:rc, by, r'e,ri,i6..red posr acknorvledgenlent due, a cop/ of the document
makirrg s:rch <lcr;lalation, variation, caniel)ation or m()rtgirge rlr,rlv bertified r.o be a
tnrc' ('ol))r iry an ol{iccr of 6hg 5o6is1y rutholiscd to si.qn on its behalf,
(z) 1'lie Srrb-llegistrar ,t"cceir ing the declaration i1 rer;perct of a
chargc or var:iation or a nlortgage refcrred to in sub-section (r) sholl, as imnte-
diately as practicat,le on receipt thereof, record in a register to be maintetainecl
in this behalf, the fact oi'the receipt ofsuch declaration, variation ot: nrortgage
fo1 pggi511.11lon.
46, Wlrenever a charge or h mortgage of land or interest tfierein is creater]
in favour c,f a society or is clischarged by a society the so6iggy shall give intimation
to such lcvenlre ol-ficial as nray be designatecl in this behalfby the Government, of
the particulals of tl.re charge or nortgage in its favor,rr or discirargc tl.rcreof.
'fhc rcrenne ofHcial shail rnake a note of the particular-s oI chargc oi. mol.tgage or
discharge thcrcof in the Record of Righw.
Provided that the al-rscnce of an entry in the record of riChts on tlie
basis of 1.lch declaration or-a-defective entry passcd in the recorciin respect
thereof shall not affect the validity of the charge or nrorrgage or discharge thireof.
46A. The Registration in,the records of the Sub-Registlar or the iccording
in the recorcl olrights of a cliange or variation'made under section 4.3 shall cons-
titr,ite sufficient notice_ of such
-change
or. variation to any person dealing with
the property sllbject thereto.
Rcstt' ict i o t t.t on d i Jp o.t o I
oJ propcrty clntgcd or
niortoaged to o ,tocietv
Chatge and sct 2fi 9[
shates or intercst of o
mentber
Sltores, intere*, ctc,
not lidhle to attachment
Reg)ster o-l menl.tr.r.t
Adnissibilitl o-l co1y, 1l
cntrt! (15 evidencc
lixcntptiot rton conpul-
rcry registration of int-
ttumentt
Exentptio n,fr o rn ccr ta in
tuxesrJccs and duder
(12)
i$
+1 . (r) Notrvithstanding anything cnnrriued in rny law for thc rirnc
being in [orcc, a rnqmber who fiis availed-hinrself of fipalcial assistarrce lr<.rm
a,ro1:ig1y by-creating a.chargQ or lnorrgage on lanrl o1 intcresr rherein, shaU rrot,
so long as the financial assistince continues to be ourstandilg, lease, trapsf'er or
create any encunll)radnce on such land gr intercst tfiereil-*ithnrt prior per-
nrisslon in v,,riting o[ thc societf in rvhose favogl 5uc]h ctrarge or *brtgug" i,
created,
(z) Any iease or transfer or encunrbrance createcl in conlraysn-
trion of this section shall be void,
. 'hl Nothing corrrained in any larv r.clrrting gs ceiiing on agricul-
t,,1'11_[,rlclings shall apply to-thc acquisition oI tand by a s-ociety clur-gecl o."nro.r-
gaged to it as sec:urity by for loan,
48, A societ)' shall have a charge uPon the sharc or contribution or interest
in tl-rc capital and on the deposits of a ruenrber or past menrlreL, or deceased
llrelllber and uPon any dividend, or profits payablc toi urer,.ber or pasr mernber
or the estate of a deceased member,.in respect of any ciebt u. ourrtoniirlg demand
owing to the socjcty, and nlav set o[f 1py sunr credited <-rr payal:le co r nrlember,r'.
past urember or the estate of <ltlceased rrrernber in or toruard.s paytrrent of any
strch debt.
+9, Subjt:ct to the prov'cions of section 48 rhe share or contriburion. or.
intclest of a iletnl>ct'.t9 past nre.rnber or deceased rnerrrber in the capital of a
sociery slrall not be liable to attlachnlent or sale under an;, decree or order of any
court in respect ol
_any
debt or liabilit), irrcu1.1.ed by such rrrember o,.,cl nny r.-
ceiver apoointecl under any law relating to insolverrcy for. thi: tirle i;e;ng in iorce
shall not tre entitled to or have auy claim on such share or conrribution oiintelest.
Jo. - Every 5o6iet/- shall keep arrd tuair.rtain a register or list of mernbers or
shares o[ the socisly which shall-ire prirna lacie evid-e'ce olt6e li:llo*,ing parti-
cr.llars erltere,l therein l-
(u) the date on n,hich any persorl entererl in srrch rcgister or list
hecarne a mernber l
(ir) the date orr r'r'hich a,y such persoli cr:ased to be a ,rerrrbe r..
.tl, (,) A copy of any entry in thc books of'a sclciery rvhi<:h ar.e nrain-
taincd ir-r the"cldinarl, course of business sh.all , ilr ccltificd ir:r ihc rnarurer as rnay
bc prescribcd, be received in arry suit r.rr legal proceedipgs as prirn..r facje evidc'ct
of the existence of such entry, and shall be adrnittcrl as-evidence of thc rnat[cr.s,
transactions and accounLt thl.ei,l recordecl in every case to the sarne extent, as
tl.re original entry.
(:) No offrcer of a s,cicty and r1o orficcr i'whosc oifice ti-re books
o.f a societl arc dcpo.sited-after liquidation sl.rrll, in any legal proceedings to which
the societ],r;,r.the liquidator is.or a par.ty, b-e c,,,,,1n;;1"U to 1>rodirce any of
tire society's lrooks or documctrts the contcnts of u]rich c.rn bc prbued ,,rr,l.r this
tection, or to appear as a witncss to prove the nratters , transaciions and accounts.
therein recorded, cxcept under order of tht: c<>urt, tribunal or the arbitrator .
made for special cause.
52, ^ . N,-, prov,ision relating,to,r'egistration of docunit:nts c()l1tair1e(l in a1y
larn, for the time being in force shail apply to -
(t) -
any instrurnellt relating to shores irr a- society ll()tvvithstaltd,rlg
that the assets of tl-re society con5irg in whole or- in part of inrnrovablt: properuy ; o r
(z) any debe,ture or bond issut:d by arry such s,ciery.rd ir,rt tr."a-
tir.rg, declaringassigning, Iimiting or extinguishing a"y rigirt, title or.inrerest ro
or iu ir.ntuovable property, except in so far as it-entitleithe holder thereof to
the security afforded by a r'egiste red instrument whereby
_the
society has litortgage
conveyed, or otherwise transferred the rvhole oI pirt of its immovable property
or any interesf therein ro trustees upon trust for. the benefit ot' the holders o?
such del>entures or bonds; or
(:) any errdorsement upon br transfler of any debepture or bogrl
issued by a111, .u.1-r society,
JJ. (r) The Governrnent n1ay, by notilicarion in rhe Officiai Gazette,
remit in respect of any class r:I societies -
- (u) the-starnp cluty chargeal>le
-u-rrder
any-larv rbr the tir,e being
in for_ce in respect of any instrunrenr executed-by,or or belralf ol a society or b!
an officer or mernber thereof and relating-to tire business of such society or alty
class of such instruments or in respect of any award 9r order nrade uncier phis
Act, in casesl wherer lit {"I sucir i'ernission t}re society, officer or rnernber as
the case may be, rvould be liable to pay suqh stamp duty;
Ded uction.frotl sttl a rS' to
n-tect societ!'s claim in
certain coses
Statc oid to tocietie,
Rcgistrot's power to
determine terms ol' emplol-
fient in societies
Fund.s noc to be divided
by way oJ profir
Cont.r iltttt i ttn to cha r i ta-
ble purpose
[ 't l
(b) n,',y f"nJp"y"ble undcr any larr,flor th,: tinre bcing in fiir.ce rela-
l:irrg to thc registration of documents or court fee,
(r)- The (.frverlrnrent may, by po1ifi661irr11, cxcrtrpr any class of
socictic! fron]
(.) land reucnue;
(b) taxes on agricultural inccms '
(") taxcs on sale or plrrchl5q of good5 ; nni
(d) taxes on professior.rs, t.rades, callings ar,rd employnrcnts,
t+. (,) Notwithstanding anytliing contained in an1, lxv, lor the tirnr.
being in forct:, a lircmber of a socictl nlay execute an agreen'rellt in falour
of thc sc;<:iety providing that his enrplo;,e1 shall be cor)rpetent to dedr.rct frorn thc
salary o:'wages payable to him by the trnrployer, such.rnrount as ma)r bc specified
in tlre agr:eenrcnt and to pay the arlrount so dedr,rcted to the society in satisfacrion
rrl any de[t or other denrapd or,r,ing by the nrentber to the society.
(z) C)n the execution c,f srrch agreernent, the enrployer shall, if
Io r('qliir'(' Iby-tlre socit:t),L,r'a reguisition in u,t'itir:g 1;615o ]oy1g thc lociery does
not intinlate that the rvholr: of such dcbt or clenrand has been paid, rnade the
de<[uction in ac:cordance ra,ith the agrcement and piy tlte anrorrnt so deciucted
to the society u,ithin sei,en days ofsuch deduction. Such paynrent shall be vaiid
clisc:harge of t:her <:mploycr gf his Iiability ro pay the anrounr so deducted and paid
to thc: socicty.
. (l ) lJ: altcr thc rcceipt of a reqrrisition rrra<le undr:r sub-sectic,n (z),
thc cnllrloyer at arly tinrc lails to deduct the amount specifiecl in the requisition
fronr the salary or rvagcs payablc to the nlcnrber concerned or rnakes defauJt in
renritting to thc society thc anrgunt so deducted, thc society shall be entirled ro
r('('o\7cr lnv such amount frqm thc enrployer is arrear.'s of land revenuc,
(+) Nothing conrainerl in this scction shall appiy to establishrnent
under tire ilailu,ay adtnir.ristratiqn operating any railrva;, as define| i1 clause (to)
of article 3 66 of the Constitution.
jS. Notl.ithstanding anything conraincd in anv liirv lbr the tirne beipg in
lo rcc, thc Covelnrtrent may -
(a) sul;scribe to the sharc capital of a societ).
(b) give loans or nrake advances to socir:ties;
(.) guara,rtee the repayment of principal and pa1,r16n1 oI' interest
on <1eber:rturt:s ol bgncls issuecl by a society.
(d) guararltce the repaymentofshare capital ofa sociery and divl-
dends thereon at such ratcs as nray bc specified by the Govcrnment;
(.) - guatentec the repayment of principal and pavment of inreresr
on loans and arlvances to a society; and
(0 give fin,rncial assistance in any olhsr folnr, jncludipg su|sidies,
to any societ),.
56. (,) The Registrar may lronl tinre ro rirne l'ranre rtrlcs govgpning
thc tcrnls of t:rnyrioymentand *'orking conriitious ol officers and cimployee!
in a society incltrcling the statc Co-operative }Jank or r r:lass of societies andthe
soc:iety or th-e class of societies tp which such terrns of employenrent and or
rvorking,conditions are applicable shall r:omply with the or<ler ifiai nray be issuer.l
b1' the il.cgisrrar in this bchajf,
. Provjdcd that u,hile prescribing the rcmunr:ration of the ofiicers and
,rther'.,,rnplo),ees of the Statc Co-operative Bank, the Registrar shall have due
regarcl t:o tht: sa'lary structule of the cmplo-yees of thc GovJrnment and the local
authorit,es r.rI cornparab]e ]evcl and stiltl-:s in the State,
(z) Where a disprrte rt:gar.rling reiltls of cnrploytnent, rvorking
conclitions and disciplinary. action takcu
-b;,
a societ),r ar.isej betwee, a societ!
ar.rcl its ernplo.yecs, tht: Rcgistrar-or an), officcr appointed by him shall decide thl
dispute and his <L:cision shall be Lrinding 01 the society and its ernployees.
Chapter YI
Properties and funds ofsocieties
5.7, . No parr of the fr.rnds of a society shall be divided by way of bonus or
diviclend or otherlvise among its members:
Provided tLat after-at least one-fourth of the ner profrt in the year
has bccn translcrred ro the reserve funcl, payments from the ,1.-ui'J.. of such
p'ofits aiid from any_pro6ts.of past years,-if-any, availab]e may be made to the
members by yry of dividend or-bonus ro such qxtentond subject to such condi- '
tions as may be prescribed by the ru)es or bye-}aws,
58. - ^
fi 5ociet/ rnay, *'ith rhe sanction of the Regisrr.ar and after one-
fourth of the net profits of the year has been transfeired to the reserye fund,
(14)
( r)r)tr'il',utc irn rr)1ourlt not exJledirrg fi*c ircl ccn". r>f thr: r'cnrrining net profics tr.r
ally purpose connectcd with the deveiopnrent 01' co-operative .rroveu'rcl]t or
charitable purpose as defineil in scctiotr zo o[' tirt: r:haritabie Endon,rnenus
6 of r89o Act, rS9o.
- \
Co,ttribt,tiuu to Co-ope- .59. A society shall, out o[ its net Profits it1 aly year, contribLrte such p0r-
tdtiveF,ducation Fund tion of the profrts not exceeding livc pcr cent as rnay bc pre.scrilrcd to the Co-
operative Education Fund consrituted Lrnder the rtrles.
Int,e.rtntent o.f .funds 6;, (, ) A society nray^invest or deposit its liurd -
(") in the post of6ce savings bank;
(b) in any of dre securities specificci in section zo of the Indiirrr
: o1f rSSz
Rcstl'ictiotls on loons
Restr i cti o n s on h tt r tov itt g s
&esttictions on othet
tdnsactiof)s with non'
nrcmbers
fudit
'l-!'tlsts,A,ct, r882 ;
(.) in the shares or debentures or recuritics of an), other sociegy; c.r1'
(.1) r.r'ith the financing bank;or
(") rvith itny societ)' or bank carrying on the birsiness of banking as
rrrry be appt'orcci iry the Reqistrar; ol'
' '(fl in ih" l,ondi issrted by itself; or
(g) in any other nrocle permittcd.lry the lules ol bl'the. Regirtrar.
()r. <il A society shall not maktr a loan to any person other than a
nrer-ttber :
Plovided tl.rat with the gener., I or special sarlctiorl oi' the Registrar
a societv ntay nrake loan to another socierl.
'
f16uided [urther that a society rnay nlak" s,-rch loans as nravrirtr specilied
in tfie bye-laws to any of its paid "nlplty....(z) Notwithstanding anything cont.inc(l iu sttb-section ( r ), r
:rocicty r)ray l1lake a ioan to dcpositor on the security of his rleposit,
62, ' li. society shali receive deposits and loans only to such extent and
r"rnder strch conclitions as n-ray 1-:e prescribed or as l-r1ay be specified in the bye-laws.
6r. Save as provided in sections 6r and 6z the transactions ofa socierl'
rvith any perlon other thau a urember shall be subject to sttch urohibitions
or rcsttictions, as may be prcscribed.
ChaPter VI{
Aur'lit, Inquiry, Inspection and Surcirarge
64. (t) The l{egistral shall audit or causc to be audited by a pr:rsc,,r
authoriscd by hirrr by general or sl:eciai order in rvriting in this behalf, L:he
accoL6tts c,f every society at least once irr t:ach co-operative year,
(z) The audit under sub-section (r) shall include an c:xanritration
of overdue debt, if any, the verificatiotr of the cash balance atrd securities, and a
valuation of the urs.ts and liabilities of tl.rt: society
(:) The person auditing thc accounts of a society shall have free
access to the books, accoruts, papers, voucircrs, stocl< at-rd other properry of
such society and shall be allowcd to verify its cash balance and sccurities.
('+) The clirectror, ,r,r,,rg.i-r, aclministtators and other olfictrrs '
r>f the society shall fulr.rish to the Pcrson auditing the accounts of a society all
such inlort'naiitn as to the sociiety's trxllsactiorls anci n'orking as such i)e l'sol'l nia)
r'equ irc ,
(l) The l{egistrar or the person authorised by hinr under sub-section
(r) to arrdit the acrcounts ola society shall hare power where llecessary -
(o) to sunlmon at the time o[ his audit any officsr, agent, servatlt
or member ol the socictl/, past or presolrt, who ire hrs reason to believe can give
valuable inf<rlnration in regard to trans..ctio,rs of the society or the management
nf its affairs; and
(b) to recluire the productiorr of 11'1y book or dourcunrer-rt relating
to the afthirs of, ol any citsh secLlritics belongillq to, thc to6iet/ b1'ar-ry c.'flicer,
irgent, servarlt, or titet-uber itr possession-of srtch !ooks, docunteutsr cash or sc
curities and in the cvent of serious irregularities discovereci during audit, tc) take
them into cu:lt-'.>d/,
(6) If at thc tirne of audit the accounts r:f a society are not colrlplete,
the Registrar or the persolr authorised by him nLrder sttb-sectior-r (r ) to auclit
may cause the accounts to be written up-at the exPensc of tire society.
0) Audit fee, if any, due frorn any societi, shail be recoverable in
the same rrranner as is provided in sectiotr 85.
65. The Rcgistral', or any person ar"rthorisecl by general or speciai order in
this behall by hinr, rnay inspect a society. For the purpose of inspection, thc
Registrar or the person so authorised by hinr shall at ail tirnes have access to all
books, accourlts, papers, vouchers, securities, stock and otler property of the
society and nray, in the event ofserious irregLrlarities discovcred dr.tring inspection,
take them into custody and shall have porver to verifly the cash balance of the
Inspection of socicties
lnquiry by l\egistrat
lnspection ol lto ks ol'
Indebted Socicne.s
Costs oJ'inquiry
Accoverl oJ- costs
( 1s )
,$
societ), a:Td to call a comnlittee meeting ot'a gelteral urccting as he r-nay decnr
lrcc_cssaary in tlre circumstances. - Every officer or a nrember of the society
sl.rall furrrisL such infcrun.rl(rn rvir-h regard to the working of the society as the
I{egistrar or the person miking such inspection ma/ ."qii..,
6u. (r) The Registrar lnay of iris own nlotiorl <.rr on application of a
majority o[ tht' n'rembel's of the corrrrni[tee or of not less than one-third ol the
nrenrbers of the society, hold r.n inqrriry or direcc a person authorised by hinr
by order in writing in this behall'to holcl an inquiry into the constitutior), working
and firran<:ial corrdition of a society,
(2 ) 'l'he Registrar or the person authorised by him under sub-section
(r) shall have tlrc following pou'ers, nanrely :
(") hc shall at all times have, for purpose of examir.ration, free
access to the books, accounts, cash and other properties belonging to or in the
custody of the society and rnay sgmmon any person in possession or responsible
for the custody ofany such books, accounts, documents, securities, cash or other
propelties to 1:roduce thc sanre, at any Place specified b1,him. ;
(h) he may, notwithstanding any rule or bye-laws specifl,ing the
period r.rf notice for a general lneeting of the society, require the olficers of the
societl, to call a general nlceting at such tinre and place at the headquarters of the
sogiq11, to consider such matters, as may be dilected by him; and where the of;ficers
of the -society refuse or lail to call such a nleeting he'shall have power to cail
it himselfl
(c) he may sunlnln an), person r.r'ho is reasonably believed by hinr
to have any knowlerlge ol the aflairs of'the sociegy to appear before him at any
place at the headquarters of the society or any branch thereof and may exarnine
such person on oath.
(:) Any nrecrting called ru.rdcr clause (b) oi:sub-section (:) shall
have all the porvels ol a gerreral rneeting called under the hye-lau.s of thc societv
and its proceedings shall be regulated by such bye-larvs.
(+) The Registr'ar shall cc,nrmunicate a brief summary of the report
of the incluiry to the societl, the State Co-operative Bank or a federal societl
to rvhich the society ls affiliaterl, and to the person or authority, if any,.at
rvhose insrance the inquiry is rnade.
bi. (, ) The Registral shall, o11 the application ol'a cret.litor of a socier),
irrspect or direct sonre persorl authorisecl by him by order in rvriting in this
behalf to inspect the books of the society r
Provided that no such inspection shall be made unless the applicant
(,.) satisfies the Registrar that the tlebt is a sr.rn'r then due, and
that he n,ar clerrranded paynrent thercoi: and has not reccivcd satisfaction within
a reasonable tirue; and
(lr) deposits with thc I{egistrar such surn as security for the cost
olproposeri inspection as the Registrar may require.
(z) 'l'he ilegistrar shall conununicate the result of any such ins-
pectiorl tc, dre creditor.
58. Where an inquiry is held under section 65, or an inspection is nrade
under section 67, the Registrar nlay apportion the costs, or such of the costs,
as he may think fit, between tlre society, the rnembers or creditors demanding an
inquiry or inspection, and the; o{ficers or former officers and the rnembers or
past members of tho society as the case ruay l.>e :
Proyided, however, that -
(o) no order of the apportionment of the costs, shall be made uncier
tiris section uniess the society or the person liable to pay the costs thereunder has
had a reasonable opportunity ol being heard; and
(ir) the Regisffar shall state in writing the nranner in which 1i1g gosts
are aPPoltioned.
69. Any sunr awirxled by rvay of ccsts under section 68 nray be recovered,
on applicairon to a lnrgisirafc having jurisdrction in the.place where the person
flrorl whonr the rn,rr.rcy is claimablc, actually and vo]untarily resides or carries
on busincss, and suci-r magist.rte shall r'ccover the salne as if it were a fine im-
posed by hirnseif,
7o. (r) Where in the course of an audit, inqtriry, inspcction or the
rvindirrg ui) of a society, it is found that any person, wiro is or rvas entrusted u,itlr
the organisation oy p1113gement of such society or rvho is or has at any time
been an oFficer or an employee of the scrcietlr has made any paylnent contrary
to this Act, the rules or the tlye-laws or has caused any deficiency in the assets
of the sociery by breach of trust or rvilful default or negligence or lias misappro-
priated or fradulently retiined any monev or other propirty belonging to iuch
Surchargc
r
Suspension oJ otJicer or
employee of society
Disputes which moy be
rgferred to arbitration
( 16 )
sociclJr thc ){egistrar ,,,.,y, ufi.,, own nroriorr or"ou thc aPplication of l:he conrnri-
ttee, liquidator or any crcdir.or, inquirc himsell<rr caur.'a,., inquiry rr.r l:tr madr:
by any pcrson authoriscd by him, bv an order in writing in this-behalf.
(z) Where an .irlquiry is tnade under sub-section (r ), the llegisrrar
or the person authoris(id lly hini nla)', aFter giving thc person c0ncerned an oppor-
tunity of bcing hcard, nrake an order, requirirrg hinr to repal or restore the nrone)'
or property or any part tht:reof, with interest at such rate, or to pav r:ontribu-
rion and costs or conrpensation to such extent, as tlre Rcgistr.ar or'the person
authorised by hinr rnay'consider just and proper"
7t. (,) Wherc in the course of an audit under section 6+ or an in-
quiry undct'strction 66 or an inspection under section 55 or section 67, it is
brought to the lrotice of thc Regisrilr that a paid oFfir:er. or employee of the
socieil, has cornmitte<l or has bec:n otherrvisc responsible fbr misappropriation,
breac}r ol trust or other offence, in relation to thg 5o6ig1,1,, the Registrar may, if
he is satisfied that there is prin.ra facie evidence against sirch prid 6fll.'cr,rr enr-
ploy6g and the susPension of such paid offi6sp or enrplt've: is necessarv in the
interest of thc societv, direct the corrmittee of the societl, pending the investi-
gation and disposal of the nlat.tcr, to place or caqse to be placed such paid officcr
or enrp)oyec rttr<ler suspension flom'sttch datc ancl for such period as nra,v be
spt:cificd by hirn.
(:) On rect:ipt ol a direction from the Registrar nnder sub-sec-
tion (r ), tht: c'oninrittcc ol thc registered society sha)1, notrvithstancling an/ pro-
visiorr to the contr';rr) in the bye-larvs, placc or cause ro bt: placediuch paid
officer or crnployee under surpension lorthwith.
(l) The Registrar nray rlirect the conrmimec to extend fronr tjme
to tip1e, the pcriorl of suspension and thc paid offi69. ()r enlployee suspender'l
shall not be reinstated except rvith the previous sanction of, the Registrar.
Chaptcr VIII
Sr:ttlemcnt of Disputes
77. (,) Notrvithstanding anything contained in an,y lau, lor tht: timc
being in f<.lrcr,; if any dispute touching the constirution, manager-r1er1t or the
business ef n society arises :-
(.) among lnembers, past members and persons claiming drrough
menrbers, past members and deceased member6, o1 :
(b) bctween I rncmber,_ past n'rember or pel'son clairning through
i\ nleml)el', pnst nrember or deceased mcmber and the soeciet"y, its c-onrmittce
o1 xn1, officer, agenr or ernployee of the society past or. present, or
(") between the society or its conrmittec: and'any past committce,
auy o(66,rr', allcnt or cnrplnyec, or an)' Past olficer, past agent or past employee
or thc nor'ni11ce, heirs or legal representatives of any deceased officer', deieaied
agcnt, or decc,rsed cniploycc of the society, or
(d) between the socicty,and any other society, bet'rycren a socisgy
and liqr,riclatoi' .rf another sgciety or l:etrvecn the liquiclator of onc society anC
the liquidator of another society, 9r
(p) l:etrveen the society and a person other than nrember of the
society r+,ho has been granted a loan by the society or rvith whom the society
has or had business transactions or any pbrson claiming through such a person; or
(f) bctr.r.een the society and a creditor of the society.
such disputes shall be referred to the l{egistrar for decision'and no cour.t shall
have juriscliction to entertain any suit or other procee<lirrgs in respcct of such
rlispu te.
(2) For tlte purposes of sub-st<:tion (r), the follorving shall be
decmed to l:e disputes tou(:hin-q the ronstitution, n-ranagement or the Eusiness ol
a sor:iety, trarrrely :-
' (.) a claim by the society for any debt or demand due to it from
a member or tile nonlinee, heirs or legal reprcsentatives of a deceased member,
whether such debt or demand be adriitted"or not;
(b) a claim by a surety against the principal Cebtor where the so-
ciety lras recovered lrorn the surety any amount in respect of any debt or demand
due to it fi'onr the principal debtor as a-rcsult of the rlcfault of the principal
debtor rvhether sr,rclt debt or demand is admitted or noti
(.) any tlispute arising in connection rvith che election of any
oflrcer of a soc:iet);
(d) a ciaim by a society against a Jttember, Past member or dre
luominee, heir or legal representative of a deceased nrember for delivery of
pgssession to the society of land or pther immovable property resumed by it
Rcf erence oJ' dispute ta
arl:ifiat:ion
?ower o.f State Co-opeta'
tire Bonl'fto procecd
(17)
lor brer.ch .f th.
"o,ltfiii<;ns
o[ assignment or allourrcnr of such land or other
irrulovable ProPerty.
(l) Ilanv rlrr<'stion ariies rvhether a disputg referled ro the Regisrrai.
tuncler this section is or ii nor a-dispute touching the constifution, management or
rhe l:usincss of r societ/, thc decision thereon of the Registrar shallbe finaland
shall not be called iu qucstion in any court.
(4)(a) Norwirl'rstanding anything conrained in any Iaw for thc tinre
beingintbrceprovidingloranype,iodo[[inritationforsuitsand otherproceedings
but iulrlect to the specifr<: provisions made in this Act, tl.re period
of linritation within whi<:h the disputc shall bc referred to the Registrar under
sub-section (r) shall -
(i) when the dispute l'elates to the recovery of any sum including
interest thereon due to a society by a n'rember thereof, be computed frorn 1[.
date on which such member dies or ceases to be a mernber of the society;
(ii) savc as otherwise proviried in strb-clause (iii), when the ciis-
1:ute relates to any act or orrission on the ParC of any of the parties referred to in
clause (b) or clause 1c) olsub-seclion (r), be six years from the date on w'hich
the act or omission with reference to which the dispute arose, took placel
(iii) when the dispute relates to a societl rvhich has been ordered to
be wound up urrdc.r section 7S or in respecl of which an administrator has be.en
appointe(l uncit:r section 39 be six years fronr the date ol the order issued under
sectiorr 75 ot'sectiou 39 as the case rnay ['re;
(iu) when the dispute is in resltect of an election of an officer ol a
socicty other than a society rcferled to in sub-section (l) ofsectiop 3+, be one
month from the clate of the declaration of the result of the eiection,
(b) 'lhe period of lin.ritation in the case of any o;her disprrte except
tlrr:se r:rentioned in thc foregoing c:lause whicli arc required to be referrcrl to
thc Registrar undel the last prec:eding section shal] be regulated by thc provisions
of the lavr for the tirne being in lorce providing for any period ol' limitation lor'
suits and other proceeciings, as if tlre ilisptrte rvas a suit and the Registrar', a
civil court.
(c) Notrvithstanding an;,thing containecl in clatrses (a) and (b)
the Registrar may admit a dispute alter the expiry of the period of linritation, if
the applicant satisfics the l{egistrar that he had suflicient cause for }1oI refen'ing
the dispute rvithin su<:h period and the dispr.rte so admitted shall be a dispute
,vhich shall not be barred on the ground that the period of lirnitation has expired.
73. (r ) The llegistrar nray, on receil)t of tlre, rclerence of <lispute
r.rnder sectiolt 7 2
(.) decide the dispute hilnself, or
(tr) transfer it for <lisposal to any person who has been invested by
(l<rvernirrent u,ith powers <-rf the Registrar irr that behalf, or'
(") reler it lor disposal to one or more arbitrators ro be appointe<]
by the [{egistrar.
(z ) Wherc tlie reference relates to any dispute involving itnmpiable
property the Registrar or suclt Person or arbitratorr may order that any person
be joined as a pirrty rvho has acqttired any interest in such propertv stibse<1"rer.rt
to the,acquisition of interest thereir"r b1,a parr:y to the reflerencc and any decision
th;it rnay be irassed on the refcrence by the Registrtrr. or the person or the arbi-
rrator aloresaid, shall be biuding on the party so joined as iI hc were an original
l)arty to the relerence,
(l) The l\egistral nray rvithdraw an), re['er.:nce cranslerred r.rrrder:
clause ([r) ofsub-secton (r) or referred undcr clause (c) of that sub-section
and decide it hinrscll or refer the sanrt: to anothnr arbitrator or such ar.rother
person tbr decisiorr.
(+) The llegistrar" or such pcrson or .1l.bitrator to whom a rlispute
is ref'erred [or c]ecision undel this section may, pendir.rg the clecision of the.dispute,
rnake such irlterlocutory orders as he nray dcem necessall, in the interesr oljustice.
(S) The Ilegisrar or such person shali decide the dispute or thc
arbitlar.>r shall pass an awarcl, in accorclancc with the provisir:ns of the ,\ct and
the nik:s ar-rd the bye-larus.
74, (r) If a society js ui.rable to pay irs debts to thc State Co-operative
)iank by reasorl.of its metnbers comntitting default in the payment of the m()neys
due by theirr, the Statr: Co-operative Bank may direct tlie committee of sucha
societT to proceecl against sncir nrcrnbers uncler sectiorl 7z and if the committec
lails to do so within a 1:eriotl of ninety days from the date ol receipt clf such
direction, the State Co-operativ,e Bank itself 1l4y proceed against such members
in rvhich c,.rse the provisions of this Act, the rulcs or the bye-laws shall apply
as if all reference to ttrre society or its comnrittce in the said provisions tverc
relerences to the Stilte Co-opeiative Bank.
(z) Where the State Co-operarive Bank has obtained a decision
( 18 ]
State Co-opelarir,: Blni. n',"yt1.o...,1 to rccover such nror,e1,5 rir-stl),fr-om t[e
assets of the society and secondly fr<.rm tLe lnenrbers to the cxient,rl'iheir <lcbr:s
due, to the su6ls1y.' i
chaptei tx
Winding up of Societies
wiadins up ot Socic'ltet
;k x"';1',;; *.J;-llitr,i:ki.:ff,";:r]i ;'|;:',,:fri#"r'j,',:ifi:"#*
opinion that the society ought to be rvound up, he mav in consultation *,ith th"
State Co-operative Bank issue au orcler directing it to be wor"rnd up,
(u ) The Registrar, nray, of his own motion, make an order direct-
ing the winding up of a society -
(l) u'here it is a condition of the registration of the societl that thc
society 5l1ll 6crsist ol at least ten met'ubers and the nLimber of nrember.s has
become lcss than ten, or
(b) u,hure the society has not colrltlencc(i .u,or[ipg r.r'ithin six-
morths of its registration or sr.rch further tiine as may be granted by-rhe Registrar
or has ceased tc ftrnctiorr irr accordance lvith co-operative pr.inciplr:s.
. (l) The )legistrar llla)/ cancel an or,ier ior th" winding u1t cit'
socir:t), at any tinrc, in an1,case, wherc, in his opinion, tire society shou-ld c<-,n-
tinuc to exist:
(+) A copy olsr,rch order shall be cornmunicare(l by r.egistr:re<l post
to thc society anrl to.the State Co-operative Bank of'which the sooietyls a mcml:cr
LiEridotor 76. (,) Wherc the Ilegistrar iras tnade an oldcr r.tnrler sectior't 7 5 lor
the rvinding-rrp of l socictv, the Rr:gistrar nray appoint a liqrridetor lor the pur-
ltose anrl fix his renr,rneration and nlav rentove such per.ron anrl appoirrt aLrothcr in
l,is p'l;,r'e.
l)ror'itled that it shall not be rlecess.)r)/ to appoint any liquidator lor
ivindirrg uP ola_t;ocict),rvl'riclr hirs not comme,cecl worl:1ng, or l-ras share capit;rl
ancl m<:mbers' deposits not ecxcee(lilrg five hundred rupeei.
(r) A
-liquidacor
shalJ, orr
-appoinrmenr, take ihro his custo<[y
ot' unde t' his controi alJ tire propcrt.y, effercts and actionable claims t() \\,ilicli thr:
socic.ty is or a1;pgnr'5 to be entitlecl and allbooks, rccor<ls and other docu,t1.r,t
pertainirrg to thc b_rrsincss of thc society and shail take stic:h step)^ as hc-: nray dcc;rr
nerJessary or cxpedicrrtI to prevent loss oI detelioration o1', o1 rln6xge, to, such
propcrty, effccts ancl claims. [-le rnay carry on r.he brrsiness ol'the society
so fir as nray be nccessary rvith the previous approval of the Registrar..
(:) ltr/here an airircal is prc.f'erred urrrler section 9g, an ordcr. of
rn,inding r-rp olt a .;o-cict,y t-traclc ttn<lc.,r sectiol 75 shall not operate thereafter urrtil
the order is confirnrccl in appeal:
Providerl that the liquidat<-r-r'shall continue to have crrstorly or control
of the property, cff'ects and actionab]e r:laims mcntioned irr sr-ib-seciion (:) arrd
have authority to takc thc steps referred to in that sub-i-ection,
(+) 'I,/hert: an orcler of rvinding up cf a society is set asirlt: in appeal,
the property, efft:cts and ;.ctionaltle cl,,inrs o{rtl,e society i}rall rev<:st in r}rc-sirciety
77. (,) Subject ro any rules rnacle in this behalf, the whole olrhe assers-
of a societ/v, in respect of r.r,hich an orcler lbr windinp r.rp has l:een macle, shall
vest in thc )iquidator appointecl undcr section 75 froin th. date on.rvhich tl.re
orcler talces eltl''ect anc'l the liquidaror shall irave power to realise sr,rch asr-ets b1,
salc or oth,:rr, ist'.
(z) Such liquidator shali aiso l'ravc power, subject to thc controJ
rr[: thr: Ilegistrar'-
. G) to insrirutc and clefeucl suits ancl othr:r. legalproceedings on
behalf of thc society in thc rrrurc of irjs c>f[-ice;
0r)_ to detenriine liom time to tinie the contiibutiorl (incJucling
debts clue anrl costs of liguidation.) to he ntarle or rernaining to be nrade by thE
nrembers or past ntetrtbers or-by the estates or nor1linees, helrs or legr.l represcn-
tativer of deceasecl nrctrrbers. by or any ollicers or [olnrer officers, to the-assets
ol' the socicty;
(.) io'investigate all ci,rjnrs against the society and subject to the
provisiqns o{ this Act, to.decide questions of priority arising betweer.r clairnants;
(d) to pay clainrs againsr the society including interesr up ro the date
of winding up ac-^.rrding to their respective prioritles, if a-ny, in fr-rll-or rateably,
is the asers oI the socicty may permit; the surplus, if any, remaining after pry-
nrt:nt of the clai:ns being applied irr payment ol intr:resr'from the dlr" of ,u.h
ordr:r of rvinding up at a rate fixecl by hirn but'not exceeding the contract rate
in an1' case;
?owers oJ Liquidator
(19)
$
(,,) to cletet'r'ninr: by wlrat Persotls ancl iu what proportions the
t:ost of tlre liquidatioll a.re to lre bot'ue i ',
(f)
-
t() dct€l'lirine rvhether atly Persol:I is a member, Past nlem-
lrer or nonriuec of dec.clascd urember;
€l to give such directions irr regard to tht: collection and distri-
bution ol t-he ass"ts-olt thc society as lrlay nlipear to'hin1 to be trecessary lor
r.r,inding Lrp the affails of the society; .. ." itrl to c.u'ry on tllc business o['t]re societ;'so lar as lnf,)/ lje nece-
ssar'1' lir thc bcrrefie ill n intJirrg ttp ol tl'rc santc;
(i) to tlrke any conlPromise or. arrallgenlent lvith .crcditors
c'rt'
persons cl.air:ring to be creclitors or having or alleging to have any clailn, Presen-
tly ,,. l,tu,'", w:h"r"by the socitity miry be renclered liablc;
(j) to ilake rny,colltProlttise ot xrratlSement with an1' Perso11
betr.r,ct:r.r ,rliur-, nn.l the sot:iety thet"e c,xists any disputc arrd to refer any strch di-
sDut(. t._. ^r.l>itr.atirtn ;"''--' " -([)-
nf't",'.,o,r.,rlting the nrenrbers,o'f the soc'iety, to dispose of the
sur.1:ius if any, renraining atier payirrg the clain'rs against the societ;' itr the nrrtrner
rlres< r'illc<l ; arrti
' (l) to corllpro,rlise all calls o.f Iial>ilities to calls arrd debts and
liabilities capablc ot"r'cstrlting in debts, and all claiurs, prescut.or fttrrLrre, cer-
tail or contiugent, subsistinf or supposed to subsist betweeu the societ;, 151d 1
contribr-;tor.y Jr alleged coniribtrtory or other, debtor or Person and all ques-
rior.rs in o,-,yi""y relating to or ;rl{ectirrq thc assets or the u,inding up OI the socie-
ty o,r sr.r,'li tcrjnts as rlray Lrc agrced irrJ take auy security for thc dischargc of
oi.,y ru.h c.rl), liability, rleirt lbr claini and givc a compir:te discharge iri respect
thereol,
(:) When the alfairs of a society,have lreen r,r't ttrtd LrP, the liclui'
tlator shall nrake a rcipol't to tlie Iiegistlar anrl dep<.rs.it tlit: records of tir<: society
irr such place a,; thc l{cgistral tnay dilect.
78. , Notwitlrstunding anything containe d in au;. lau' relating to .iusolvencl'
n, n-,ny tirr tli.r time bcirrg in li.,rce, tltt: contri[rution assesscd by a liqr.ridirtor shall
,..,,r1.
.1,,
ordcr ol'ltriority ncxt t() tlt:bt clttt: to the Covel'nll-IenL or to any local
authoi'it), itr solvcrlcy llrocc:t:dings,
79. (r) TI'rc Registrtrt'tuay, a['tr:r consider;ing tl.rc repolt oi che liqtri-.
,.-lator in,icle to [rir-n rrn<]r:r'-.r,-rb-section (3) olsection 77 order the registlation ol
thc socicty to be cancellecl.
(z) An ordel pass.)d r.rnder' sub-scction (r) shall be conrnrunica-
tecl by registcrcd post ttt tire president o{ the-society and to, t}re federai society,
iI arr[ onf, to the Statc Co-opi:rative I]ank, of which tire sjociel/ rvas a tuetr.Lbt:t'.
P r ior i\' of contributions
asscs.red ly I i tTuidator
l'owct's 2f Registrar to
LoDccl tcSisilation ol' (1
co - oP c r a l:i v c soci et)/
tnforccment oJ cht11a
Chapter X
Execution of awards, decrecs, orders
and decisions
I
go. Notrvithstanding anythiDg contained in chapter vlll or any other 1a\^,
ft.,r the time being in force, but withotlt prejudictt to any <.rther mode of reco-
veri provided in this Act, tl'rc Registrar or any persol sr.ibordinate to him em-
1ro,utr".1 by the Ilegistrar in this behalf may, on the aPPlication of a society, make,
l,ror,l.rdirectiuqil't"p.1,nl"ntofanyclebtot'outstandingdc'rand dr.retothcs<.rcic.
ty l:),a:ry n,cmlrcl'or Past or deccased tuclttber, by sale of thc proper[y or an)i
inreicst'thcrein which is subjcct to a charge ttuder sectiou 4z:.
l,rovided that t-ro order shali be made u'tder this scction ltnless the
rurctrrIer, Jrast mcmbt:r or th., llolninee, him or icg;rl rcPresel]tative o1' the
deceased ri',c,'nber, has bcen selved with a noticc itt tire manner 1:rescribed and
has faiied to pay tire debt or o.tttstanding demand 'rvitirin the tille specified
in the noticc which shall.i-rot be less than thirty ilays'
8r. livery decision, award or orcler duly prssecl by the Il,egistrar or arbi'
trator under sectiotl 3 2, section 3 J, section 7o, section 73, section 8o or
scctio:'. g8 shali, 1p ,',o1 .;1l'f ied or'rt -
(o) rvhere the decision, arvard or order provides for the recovery
ef 111o;.,ey, be execr.rteil according to the law for the tinre being in lorie relating
to the rccovery of thc land revenues i
Prov'ided th;rt an application for the recovery ol any sum in the manner
atbresaid accompanied by a certificate signed by the Registrar or atrl lrerson
subordirlate to hlpr antl emporvered by the Registral in this behalf shall be made
to the competent revertue autlrorty that rnay be preqcribed wirhin trvelve )ears
from th: dlte of the oi'der; and '
Etccntion of orders, etc,
Execution oJ ordcu oJ
ilquidatot
Attachment bcjore awail
Aegistru ot petson cm-
powered by hin to bc
clvil courtJor certain
,
PUtPoset
Recovegr oJ sums due ta
Government
Applicabil ity oJ Chdptcr
Acginration oJ Stat,
Co-operatire [lanl
Business which thc Stotc
Co-opcrotivc Bank may
trans0ct
Acr to of t91g
(20)
(b) iii any oth.rt"r. be execriied by the Registrar or ar)y pel.son
subordinare tr: him ancl
.empowered by the Regiitrar in ihis behall' by utt,n"h-
ment irnd sale or sale without aitachment of any p-roperty of the person or society
against whonr thc order, decision or arvard hai l,ee,r 6btained or passecl,
82. The ordcrs of drc liquidaror un<ler section 77 shail be executetl in
acbordance with the Act and the rules for the time being in ]brce for the r.ecover\,
of arrears o[ land revenue,
83. Whcre the Registrar is satisfied thar a parry to rn,v rel'ercnce rrrarle
himundersectionTu withintcnttodct'eatordelaytheexecutionof anydecision
that may be paised thereon is about to -
(.) dispose of the whole or any part ot'the properry; or
(b) remove the wholeoranypartofthepropertyfrr;mthe local Iimirs
of the jurisdiction of the Registrar, the llegistlr nray, u.lcss adequatrr secu-
rity is furnished, direct attachnrcnt of the said property or such part thtrreof as
he thinks nectrssar).. Such attachmenr shall have the r.:r:e effcct rs il made hi.;r
comPetcl'rt cir il cottrt.
Provided that the polyers of the Ilegistrar under this section shall not
be delcgated to any ofllcer below such rank as may lre prescribeci.
Provided lurther that imrnovable property shall not bc sol<i,in executiorr
of a decree unless such property has been previouslv attached.
Provided further that where the decree has been oburined on tlr.e basis
ol a mortgage of such property, it shall not be necessary to attach it,
84. The Registrar or any person enrpowered by him in this behalf shall
be deemed, when exercising any plwers- under this Act lor the recovery of anv
anlount by attachnrent and saie or by sale without atrachmrlt of any propert;,,
or when passing any orders on any application rnarle co him for ,rlh ...ol,"ry
to be a civil corrrt for the purposes of an;, l1v7 relating to limitation.
s5. (r) All sums due from a socisgy, oi fron'r an omcer or member or
past ntclnl)er of a society as such, to Government, including any costs au,ardecl
to Government under any provision of this Act, ntay, on a Certfficate issued by
the Registrar in this behalf, be recovered in the sanre manner a5 arrears of lanil
revenue,
(z) Srrnrs due from a society to Government and recoverable under
sub-sec_tion (r), may be recovered,- 6-rs1ly from the property of the societ;r;
$econdly, in the case of a society the liability of the members of which is limited,
fronr. the members, past members or the estates of deceased members, subject
ro the limit o[their liability and thirdly, in the case of other socie;ies, flrom ihe
rnenrbers, pist members oi the estates of the deceased mernbers r
Provided that the liability of past members and the estates of deceased
nrembers shall in all cases be subject to the provisione of section 29.
' Chapter XI
State Co-operative Bank
86, Notlvithstanding anything contained to the contrary in rhis Act or.
rules, the provisions of this Chaptir shali apply to the Sbte-io-operative Biank
that nray be'registered in the State under this Act.
B;, Nofwithstanding anything contained in this Act, a ".ociery shall not be
iegistered as the-State-Co-operative Ban& unless the application loi registration
thereof is signed by at least r o persons of whonr one shall be the Governinent an<l
the reit shall ccnsist of not less than 5 societies,
88. It shall be lawful for the State Co-operative Bank ro cary on all or
any of the lollowing business viz. :-
(r) to do banking business as defined in Clause (b) ot's€ction
5 and section 6(i) read with section 55 of the Banking Regulation Act, r949 or
anyother law for the time being in force and in general to carry on and dis-
charge such functions and business as are rrsually undertaken by banki or bankers;
(z) to serve as an apex bank tor the co-operative 56si.gi.. and to
provide all types of financial accommodation, including short, medium and
long-rerm loans for all kinds of economic acrivities, including agriculture and
alliJd activities, industry, trade and commerce, to co-ope.i'tiri socieries as
well as to other persons including fi-rms, companies or other corporate bodies;
(: ) to act as an agent of the Reserve Bank,in the matter of operating
currency chests on such terms and conditions as may be mut,rally ng.".i rlponl i
rnd
(+) to open bran_ches,
-pay
offi-ces or regional offices in any parr
of the State of Sikkim-or outside Sikkim with the p..ri-ou. sanction of the Re-
gstrar,
t
Governntenc sharc Co'
pital
ContntittL'c
Taking over the busi'
ness oJ the state Bank
of'Si/<Ainr
!ssue oJ'bonrls
Gudtantca by Covem-
ntent of'pr)ncipal o.l
and interest on tlrc
httnd.r
Othcr Guarantee b1, Co-
Yerntnent
l\tght ol ptintagr agti-
culturol cridit socieqr or
tht State Coperotive
Bonk to pty prior debts
to tllottdBa0or
'Pova oJ the State Co-
operatiYe BanA to Su--
pervise
I"I
>-
89. l-he Governrirent shall contribute not less than Sr Per cent of the
total issued capital of the State Co-operative Banl<.
90. '[hc Conurrit'tt:rr of thc State Co-operative Bank sha]l consist of 9
members of whom 3 sh'all be nominated by the Government, 3 shall be prere-
.lcntatics ol socir:ties, u shall be representatives of members other tharr socie'
ties to be elected or nor.ninated as per the by-laws of the Bank , and one Mana-
ging Director ro be appointed bt the Covernntent in consultation with the
i{est:rve Rank,
Provided that the jrritial comrnittee shali be entirely uonrinated by the Govern-
r.nent for a period of 3 years or such other extended period as may be deeided
l;v the Covernment,
;r, The State Co-operative Bank may at any tin1e,-acqttire in w6ole or
i., our, thc busipess of thl State llank of Siklcim, established under the State
tsanl ol Sikkinr Proclarnation, r968, as may be provided by Central Govern-
rnent i:y law,
9L. (,) 'the State Co-operative Bank nray-, with the prior approval
uf tha Guu.,.ltnleltt, and subjecC to such terms ,rnd conditions as the Govern-
rnent lr)ry dcem fic to inrpose, borrow lrlolley by issue of bonds'
(z) 'fhe bcruds shall be in the form of pt'orn-issory note and
shali not lie'repay,rble belore the expiry of 6ve years h'onl the date of issue
thereol'.' Provided that the conrmittee may rePay the amount due under the
bonc|s at any time belore the date so fixecl, a{ter issue of notice in such manner
as the conrmittee may clirect in that behalf to the holdels of the bonds.
9J. (,) 'lire,principal o1', and interest on, the bonds isstted under
sJcrion .rz iliall, subjecito suih maximull .,lr1ount as may be 6xed by dre Go-
verr)lne:-,t ancl sub;ect to such conditions xs ths Governmenl may thir-rk 6t to
irlpose, carry the guxralltee o-[ the Government'
'
trj J:hs (;overnment nlay, subject to the Provisions of any Act
in that regard, increase the maximunl amount ol any guarantee given uncler
sub-section (r ),
(:) The Goverruuent n'Iay, after consulting the Committee, *
(") by notification in the Offlcial Cazette, aud
(b) by notice of not less than fotrrteen-days in such of the impor-
tant news papefs in the State and in other State.s of india, as tlte Governtncnt
rnay select'in this behalf, rvithdraw xny guarantee giv:rr by theur or reduce the
u',"*i,rr.,rr', irr)rount. thereof or nrodily the conditions, subject to which it was
givelr'
provided tl-rat the withdrawal, reduction or n-ro(lificxtion of any gua-
rantee under this sub-section, shall not in any way affect. the guaralitee carried
by any bonds issued prior to the date on which such withdrawa.l, reduction or
modification takcs elfect.
g+. Where the State Co'opeative Bank or the primary agriculgural
ciidit society has given a long-term loan to a member for- the improvement of
of any land in "*cei
<rf the arrioi-rut of thc loan to which such rnember would be
entitGd, on the basis of the yah"re of the land as detei'mined in accordance r+'iti
the principlcs of vaiuation approved by the Conrn-rittee lrom time to tinrc with
the lpp:'oial of the Retgist.ri, th" G'overntnent-may guat'antee lor a specifiecl
pe.ioil tlre repayrnent of the loan to the extent of the excess.
95. (r) Where a urortagage is execuled in favour of a prirnary agricul-
iurol
"r:edit
society or the State Co-operative Bank for payment of prior debts
of' the nrortgagor, the society or tire bank rrray, notw-ithstanding anything in
an1' lar,r, fo. ih" time being in ltorce relating to the transfer of ProPerties, by no-
ticl in writin$, r.equire any person to-whom any such debt is due, to receive
payment of sich dibt or part thcreof from the bank at its registered olIlce wi-
il',i,-, rucir period as may be specified in the notice,
irl Wherle any sucir Person fails to receive such notice ol such
payrner)t, such debt or part thcreof, as the case lltay be, shall ce;\sc to carry in-
ieiest frdm the expiration of the period specified in the notice:
Provided ihat where there is a dispute as regards the atnount ol' any
such debt, the person to whom such debt is due shail be bound to receive pay-
rnent of the amount offered by the primary agricultural credit society or the
State Co-operative Bank, as the case may, be-towards the debt but such receipt
shall nou piejudice the right; il any, of such person to recover the balance
claimed by hirl.
96. The State Co-operative Bank nray rhaintain gerreral supervision over
ol inspect societies affiliated to or financed by it 'and
take_ up the lllanage-
rnent tf the societies ou such terrtrs aud conditions as Inay be approvcd by
the Registrar.
Al lotnent oJ' shares a nd
voring r ights oJ rhe
t.embets o.{' the sc.rtc
Co-operative Rank
lnswed co-opuat.ive
banks
47 ol' t9(tr
i
+7 9l't96r
+7 ol r96t
{22)
, 96, A (i) Subjeet tc,the plori.ions of Scctiorr 89 allorment of shar.es
to nrt:ntbers of the State Co-operative Bank shall l:e gnvernr:tl by the .provisions
o[ ((\ by-L\ws a.s qprored \the Registr.rs.
(r) 'fhc voting rights of nr,:nrlr.r.s shall b,r prol:ortionatc ro rhc
shares he]d by each menrber.
Chapter XII
lnsurcd Co-o1:crative Banks
9j, Notwithstancling anything eontained in tiris Acr, in rlrc cast: of lr
insured co-operative bank -
(r j nn order lor the winding up, or au orcler,'anctioniug a schenrc
of compromise or arrangelnent or of amalgamation or l'ecoi-rstntctiorr (inclr.r-
<ling division or reorganisation), of the bank n.ray be nra<le only with the 1:re-
vious sanction in lvriting of the Reserve Bank,
(t) an order lor the winding up of the bank slrall be n-rade by the
Registrar il so reqrrired by the Resctr,cr llank in thc circunrstances referrecl ro
iu section r3D of'the Deposit Insurance Colpor.ation Act, r96r ;
. (:) ifso required by the Reserve Banl< in the pub)ic inrcresr or.
for prcver-rting the affairs of ttre bink being conclucted irr a ,,ror.,n". detrinier-rtal
to the interests of thc clepositors or lor securing tlre proper rnanaget-nent of the
bank, an order sha]1 be made lor t]-re sr:persession (rerroval) of thtr courmittee
or ot:her marraging bo.ly (hy w]]atever nan.re called) of the bank anrl the appoint
nrent ol..n adnrinistrator tllerefor for such Perio<1 or pcriods, not exccedi;q five
years in the rggregate, as na\. [)'onr tir,re to time be specified by rhe Resi,rrt:
llanli and the administrator so appointed shall, after the expiry of his tcrnr of
offict,, r:orrtir.ue in ofFce rrntill the dav irrrnrerliately prcceding thc date of the
first rneet.ing of tlre new conrurittee;
- (+) no ilppc;rl, r(rvision ot'r'erierv shall lie or be pernrissiblc ag;rinrt
an ortler such as is relerred to in clauses (, ), (z) or (3) n',ade ra.,ith the 1:re viorrs
sarnc:tion iu w;'iting or on tlte rerluisitior-r olt the lleserve Banl< and sric:h orrler ot.
sanction shall.not be liahle to be <:allecl in qr.restion in any nrannt:r;
(S) the liquidator of the insured co-operatirle bank or. transJi:ree
bank, as thc case tnay bc, shall be under an obligation r,o repay to the L)eposir
Insuratrce Corpo121i911 in tl-rc circumstances, to the extent ancl irr t[e mannci.
referrerl to in section z r of that Act.
Exirlanatiorl
(j) Frlr the plu'pos(:s of tiris section "a cci-ope:-ative bank', nrr:ans
a bank as has l:eon <lefined in the l)eposit Insurancc (lorjtoration Act, r915r.
(ii) ".lr:surecl co-ollerativc L>ank" means a so6isgy lvhich is an
insurerl bank rrnrler the provisions o1' the Deposit Insurance (iorporation iAc't, ,
t96t.
(jii) "'l'rarrsft:ree bank" in relation to an insurr:<[ co-oper.ative l;arik
lrrrrans a co-operative banl..
-(u) vvith which such insured co-operar:ive banl<
(b) to which tire assers and liabilities of r;uch
is a.malgamated, o r
itrsured co-ollerati\re
banl< is divicled or con-
Lrank are transfen'ed, or
(") irito which sr.rch ir.rsurcd co-oi)erative
verted undcl the provisions ol this Act.
Chapter )(trII
Appeals and Revision
Appeals 98, An appeal shall lie uniier tiris secrion against -(o) an order of the Registrar rnade under. Jub-section (2) of sec-
tion 8 refusing 1o rr:gister a societli
(b) an order of the Registrar rnade rrn<ler sub-secrion (4) of sec-
tion r r rcfusing to register an amendnrent of the l>ve-lalvs of a co-operative
societrv I
-(") a d_ecision of a socierl, other dran a primary agricultural credit
society,refusing to admit any person as a member of the society who is other-wise
duly qualified for membership under the bye-laws of that spciery ;
(d) a decision of a society expeiling any of its members;
-
(") au order of the Registar remoying the committee of a society
mlde untler section J9;
'l\e r isiort
I ntcr l,s, t.o t), ttr <l cr t
0.lJLnces
!s2: I
. (D an orde t' nrade by the l\cgistlar undcr section 68 arrporrionirrrr
rhc c<>sr of an c,quiry he]d urrdei sectio,., Zo o.
"n
inspection
"r.d;-';;;..;;;;:lioll 6r; \
($) any order of surchargc under section 7o I
(lr ) any decision or aivaftl nrade under section'73 ;(i) an order made by the Registra*nd", ,""iion 75 direcringthe winding up of a society;
(j) any order.maclc b1'tire liquidatr:r of a socicty ip e:xercise of the
I)owels conFclrccl on him by secLiorr 77;
-
(k) any orcler nlade ur.rder section 8j.
(z) (a) An api;eal againsr arry decisionororderu,dersub-section
(r), excepting tirose nrenrioned jn clausci (c) and (d), shall be 6rar.le to the
Govt:rumcnt rvithin sixty days from the date of the dercision or the order; a,d
. lLrt the
-app.:a[
against a'y decisio' of -r society rnentioned in
clauses (c;_an<l (d) of sub--seciion 1r; slrall bc rnade to the (egisrr.ar u,irhiu
sixty clays fronr the date of such decision.
, (:). No.-appeal shall lie uncler this section fr<.,nr any 6ccisiol 9r.
ordt:r macle by the Regisrrar in appeai.
- (+) 'l'hr: Gove,rure)rt or the Registrar, to whom an appeal is r.'ade
urrder sub-section (z) n:ay cali for and_exariine the record reiiting to the
rllatce.aPPeaied, for the pur?ose oI satislying itse]f-or himself as ro the'legality
r,rr Propliety oI any rlecision or order paiserland if in any case it appear. io th"
(iovs1n111s.1 or the llegistrar, as the ior,. n,oy be, that #y ,,,ch ^ciecision or
should be .rodified, airnult:d or reversecl, t(e GovcrnniJnt or che Registrar,
as the case^may be, n-ra,y pass sLrch order thereon as it and he nray deem fir]
99. _ Subject to the provisiolls o1' scction 97, the Govcipmeni: may, soor on the application r.,i'o party tio u ..L."n"", cal] lor anj examine the
recorcl of any proceedings in which no appeal lies ro tlie Cover.nrnelt ulder
section,98 lor the pr.rrposc uf.satislying iiself as to the legality a,ci propriety
<.,I any decisio^ ,,,r order
Pa-ssc.d arrd-iI i-n a^y casc it shall #p";,. tu ri thit any
such decisio, or brder shouldle,lodified, annuled or."ris'"h, it n,ay pars.uci.,
()i"der. 1:heroll as ir n-ray deer-n fit.
roo. wher'e an appcal is nrade under scction 9g o,r rvrrere the Grvern,rent:
calls lbr tlic rc<:orcl <>f i casr: u^rler section 99, the appellate authority for the
CovcrnurunL.rs rhc casc ma1, be, rnay, in ordcr tt_r nl""i ih" ends of iustice make
strch interlocLlt()ry order, inclLrrling'an or.der of stay, pendisg the' decision of
the appeai r:r revision as such authorit;, or.Corerlrneni n-,"y j.",r, fit,
Chapter, XIV
Offerrces arrd Pelralties
,ol. (u) No lterson, other thair a society, shall carl.y on business
tunder anv
^arne
or title ol: rvhich the *urd ",:o-ope:rative,, or'ir, equivalent
ir-r any L-rdia. language, is part , withotrt the sanction of the Government.
(t) Any person carlying on. anI trade or busiuess irr contravenriorr
of sub-sectio.-r (r) shall be punished rvirh aine which rn.ry exten(i ro rwo hur-r-
, clrcd rupces an-cl in thc case-ofa co,tinuing offence *ith u dnc ui .up.", ,5 rn.' each day on rn4rich the olfence is continuir"rg alter convictio'tt.r"oi,
Provided alwal,s thac nothing in-this section shalt apply ro rhe gsc
by any persij,n or his successor i, inteist of any nanlc or ritl" ',*j"r which he
carried on his business rvith the r.r,ord ,,co-operative,, or its equivalent in any
India langr"rage, at the date o. rvhich the Silikinr Co-operative'soci"ti.s nct,
lg5.S camc itlto opcra[ion,
(l)
-
Any lnemb.r or'.past rrenrber o. r]re nornirce, heir or legal
J:el)rese.ntative of a cleceasecl rnerlrber of a socicty who contravenes the proovi-
sions of sec:rion 4e by-clisposi.g of any property in rcspect of which the siciety
is cntitled ro have a firsc chrr[c rrndcithit settion ui ,]u n,.,y other acr to the
prejudice crf such clair,, shail 6e punishable rvith fine *)rich ri;ry.*t.nd to two
IrLrndred rupees. r -'---
(+) The conrrnittee of a society or an officer or nrcmber thereof
:llilllt lTk,lg ^"
false rerur.n or,furnishing,fatse inform",ior,, or'u.,y personwirturty.or
_\.'ithouc any reasoralrle excuse disobeying any s,mmons,' requisi_
t'ion oi lawful written'ordet' issued under the provisiois oi this Act or wilf*lly
do.es,not,f,,rniih any inlornration requirecl from hirn by a person authorised in
th,s behalr,under [he provisions of this ,\ct, shrll be punislble *.ith fine wl iclr
may extend to two hundred rupees,
(s) Any enrployer, who, without sufricient carrse, fairs to detluctor tails to paj'/ to a society the amount deducted by him u'der sub-section (z)
Offences by conpanics
C o g n i z a n c a'.o{ O[e n ce s
Address oJ a society
Copy oJ'the,lct.rulcs
and ly,e-lows to be open
to insDcction
o r d ci.t to b c' pr o notr n-
cecl
(24 )
,*
of section 54 r.rithin a pltiod ol'seven days lrom the date on which such clecluc-
tion is made sha.ll be punishable rvith fine which may exten(l to five hundled rupees
andinthecaseofacontinuir.rgdefaultwithafurtherfineof Rs. r5 lbrear:h rlay
on which the offence continues aflter conviction thereof.
(6) .lldefault is macle ir.r cornl:lf ing with provisions of section 18,
srrbsection(r)ofsection33,sectionST,section6o, sectiotr 6r, section 61, tltt:
society,ancleveryof'ficerormemberof conrmittee olthe society who is default
shall be punishable with Ene which may extend to two hundred rupees.
0) Il any person -.(i) alter ceasir-rg to be a nrcmber ttnder srtb-section (z) of ser:-
tion u r acts as a member; or
(ii) exercises the rights of nrenrl:er itr contravetrtion of the plo-
visions of section l5 shall be punishable with frne which mav extenrl to two hun-
<iled rupees.
(B) [f any person <:ollecting tht: share li-ior.,c\'foi' a rocit-ty in lor-
nration cloes not deposit the sarne in the State Co-oper;tive lJank witnin fbur-
teen cla1,s of its receipt, he shall be punishable with fine which may extend to
five hundred rupees.
(y) If any person collecting the share rrioney lbr a society in fbr-
mation nrake,; use of the funds so raised for conducting any trade or business
in tht: rTame of the society to bc registet'ed or otherwise, he shall be punishable
rvith flne rvhich may cxtend to five hundred rupees.
(,o) If ar.ry officer or nrember of a society misappropriates or unau-
thorisedly or illegally keeps any money belortging to that society heshal) be pu-
nishable with imprisonrnent lbr a ternl which may extend to or)e year! or w'ith
fine which may extcnd to one thousaud rupees, or r+'ith both.
to2, Where an ,:ffence utrder sub-section (r ) or sub-section (4) of section
ror has been comrnittcd by a comparry, every person v,[o, at the time the
,rffcr:cc rras corulrittcd, was ir., ch;,rgc c,[, and was responsible to, the comparry-]
lbr the conduct oi'the business of the conrpany , as well as the compirn)', shall I
be decmed to be guilty or the oflt'nce and shall be liable to be pror:eecled against
and punishecl accordirigly :
Provided that nothing contained in this scction shall renrler anl, sllch
person Iiable to auy pdnishnrent provideil in the aforesaid sub-sectiorr he pro.'es
that the oft'ence was coninlitted rvithotrt his knorvledge or tirat hc exercised
ali due diligence to prevent the commission of such of}'ence
Provided further that if it is proved that the ol{e.nce has been conttlj-
tted by the consent or connivance of or is attributable to arry neglect on the part
of any directol', nlal'rager, secretary or other officer of the cornpany , such di-
rector, marlager, secl'etary or other officer shall also be deemecl to be gLrilty
of that off'ence and shall be liable to be proceeded against and punished accor-
d ingiv.OJ
Explanation
-
For the purposes of' this ssqti6n
-(oi "company" nleans a bocly corporate, and jnclucies a firm or
other association of individuals; and
(b) "clirector" jn relation to firm rneans a pal'tner of the finn.
rol, (,) No court inferior to that of a Presidency Magistrate or a Ma-
gistrate o[ the first c]ass shall try any offence uncler this Act"*
(z)" No prosecution shall be ir.rstitutecl u'nder this Act widrotrc
tlre previous sanction ol the Registrar and such sancti<.rn shall not be given ---
(i) without giving to the person concenred an opportunity to
represent his case;
(ii) il tl-re Registrar is satisfietl that the person concerned actcrl
in gr:od faith,
Chapter XV
Miscellaneous
r04, Every society shail have an address registered in accorciance with the
mles to which all notices and commnnications may be serrt and shall send to
thc Iiegistrar notice of any change thcr"ol rvitfiin thirty days of t|e chasge.
roS. E-/ery society shall keep a copy of this Act, the rrlles and its bye-laws
open to inspection free of charge at all reasonable times at the registered ad-
tlress of the society.
ro6. Fvery order; decision or award made or given by the Registrar, or
any oflicer or other person or a liquidator, under this Act, shall be pronounced
on the day on which the case is finally heard or on some fr-rrure day of u,hich
tlLre notice shall be given to.the parties.
l' rocedurc Jot settlenrcnt
of disputes ond powu oJ'
the Registror ot an J
othet petsotl to whont a
dispute is referred or an
appeal is natle.for decision
J ?/'reoa
r:7. . - (,) tr.*;:rlr or a,ly other person to whom a rlispute is re-
ferreci lor decision or a, appeal is rnade against any order or <lecision ,'rade
r.rnder i:.ris Act, shall hear thc dispute or the appeal in rhe manner prescribed,
and sharl have power io surnmon and enforie attendance of rvitnesses inclu-
ding the parties interested or any of them and to compel them give evidence
on oath, alfirmatlon or affidavit, and to compei the production of documents
by the same moans atrd as far as possible in the sanre manner, as is provided at
in the case of a civil court by the Codc of Civil Proccdure, r9o8
(z) Except with the permission of the Registrar or any other
persorl dcciding a dispute, as the case tnay be, no party shall be represented
at tire hearing o[ a dispute by a legal practitioner.
(:) (o) If the Registrar or arly other person to whom a dispute
is rei'erred is satisfied that a person, whether he be a member of the society
or not, has acquired any irrterest in the property of a person who is a party to
a dispute he ma1, order that the person who has acquired the interest in the pro-
perty may join as a party to the dispute; and any decision, order or arvardlhat
rnay be passcci by the llegistrar or his nominee or any other person shali be
binding on .the party so joined, in the sanre manlrer as if he u/ere an originai
part)/ to the dispute,
(b) Wfrele a,dispute has been instituted in the name of a wrong
persolr, or where all the ciefendants have nor been included, the Registrar oi
any othel'person to rvhom a dispute is referred lor decision under s-ction 7z
may at any stage of the hearing of the dispute, if satisfied that the mistake was
bohafide, order substitttion of parties upon such terms as he may think just.
(") The Rcgistrar or any other person to whom a dispute is re-
ferred for decision undcr section 7-2, r\\ay at any stage of the proceedings, either
upon or without the application of any party, and on such terms as may appeal.
to the Registrar or any other-person deciding a dispute, as the cose mny be-, to
be just, order tlre 1en1ova1 of the name of any party improperly included in the
rlispute and substitution of the nanre of nny pl.ior', who ought io have been jn-
cluded in the dispute or whose presence - belore the l{egistrarr or an/ other
person deciding the dispute, as th-e case may-le, nray be necesiary lor effectually aud
cornpletely adjudicating upon ancl settiing all the"questions involved in the dispute,
(,1) Any person who is a party to'the dispute and entitled toiore
than one relief in respect o[ the san-re cause of action may c]ainr all or any or
;il,:5'i' :lx i:t :#:;l ff :,;l,i!oi' l[#;]l;:;], J;:"i?,i: ;1d1, l;:
or ar,y other person io whom a dispute is reflcrrecl lor c]ecision.
Powets of civil coutt, ro8, (r) In exercisiong the fLrnctior.r conferred by or under this Act,
the Coverrrmcnt , the-Registrar, the arbitlator or any other person deciding
a dispute and the liquidator or arr auclitor of a society shail havi all the porveri
of a civil court, wl-rile trying a suit, under the Code'of Civil procedure, r9o8,
in lespect of the lollowing nrattel's nanrely:*
(l) summoning and cnforcing the attenclance o[ any person and
exanrining hin-r on oath j. r
(b) requiring the disovery and prodirction of any documenr;
. (.) prool of facts by affrdavits; and
, (d) issuing cornnrissions for exarnination of witness,
(r) in the case ofl"any affrdavit, any-oflicer appoinrcd by the Go_
vernr)rert, the Registrar, the arbitrator or any other person decidinga dispute
or the liquidator,br the auditor as rhe case inay be,'rnay aclrninistJr the lath
to the ccPor)erlt,
lSar of Jtrisdiction of ro9. (r) Save as provided in this .Act, no civil or revenue court shall
coLltts have arry jurisdiction in respect of -
- io) the registratio, of a sociefr r:r bye-laws or of an ame,drnent
of a bye-laws;
(b) the rentoval of a committee;
. (c) a*y dispute required under sectior) 72 to be referred ro the
Registrar; ol' order for pal,ment of moneys under section 8 j.
(z) Whilr a sociery is being.wound up, no sr,rir.r other iegal pro-
ceeding
-relating
ro the business ofsuch societli shalibeproceece{ iuit}i, o,
instirurcd against the li<iuid.aror as snch or againit the society or any nrcmber
thereof, except lty lea*,e of the Registrar ancl rubiect to such tcrms as lie nray im-
Pose'
(:)
-Save
as provided i'r this Act, no order decision or award lnade
un<ler this Act shall be qrrestioned in anv court or on any qround wliatsoever,
,Application oJ'Linitation ,-r?: . The provisions of
^secrions-4, 5, r2 and r4 o[the'[flnitation Act, r963
Act shall be applicable to the filling of any appeal or application for revisio, un.
36 o"f t961 der tfiis Act.
Power to exemPt closs of
societies
Service oJ notice under
the Act
Noilce necessar! ;in Jul''{
lndemnity
( 26$)
r r !. Jhs Qovernment n1ay, by gcneral or sPecial orde^r' pubiished in the
otficial Gazette, "*.".,pt""'y ';";t'i;t
any class o?societies fronr any of the pro-
vi5ions of tl is Act o. r,uy^ii"t""(ot-t"ttl provisions sha)l apply ,t".:t*
societv
0r class of iocieties *i;li ;;h;'dificatioi'" as nlay be,sy1fied in the orcler'
I--verv notice cl, o'at' issued or'""d" undtr this Act' may be scrt'ed" '- )
on any persorl, by P.;;tt;iittttrtg it to the lnss lqnown place of residencc
.. irl,""*-tI ru.1r;"';;-i*p"yi"g.";tl posting by registered Pitt 1]^Tt::-::l:
taining the .:-,otice o. o.dJa uri ,r-nl"t. ih. corltrarv is llro,ed, such servrce
shall 5e clecmed ,o t-,t'"'il""n "ff"tttd
at the time nr i'hith the letter wotrld
'e
delivered in the ordinarY course'
r r r. No suit ,1'"11 iJ r""i**a against a societY ol any of its officers in
."ip".t of any act touching the constitlltion' *"n''gtnienc' or'the.business oI dre
,o.i"tyuntiltheexpiratiorioft\vomonthsnexta[t¬iceinr+'r'iting
has becn
delirci'ed to th" Regi'tt", "t-i"f' ^'
his office' staEing the cause o[ action' the
,^rr", i"r.', 1'.t
ior, .fi d ir^'" "
r'"
"
J;
I
;::Ilil1lLt' kf :*t:*lr-l::l i:
claims; and ?.he plaint shall contain a statenl€
ilelivered or left.
ti+, No suit, prosecution or other.legal oroceedings shail lie against thc
Repistrar or any p"rron"J,iUo,:dir,.te to him'or'o.tine ,.,n.i.t his authority in res-
;".il;,.y;iir! i.. g""a faith done or PurPorting to"h"'" been done under this
Act..
companies Act, 1956 r15. The provisions o[ the companies Act' 1956 shall not apply to so-
i""',!',n":1!r,,',,{',1,1!,,,,:ih: o", lll *1,U";::'Ul':U,,T:lX*"il',*"iiffl'#:?1i::':,:T:
cicties Act, I955 oI' ';;;t-;;i
otfi"t l"u relatirrg to co-operative.societies in
force in thc State "f Siil;i* ti'lff f'" dttnl"d to hu"'" been iegistered"under this
Act. and its bve-laws ;;;1i; ; i"t as the same are not inconslstent with the ex-
;:."J,";;;:,;i; ;f ,il;:,, "'*i"u'
in force until altered or resciud'ed'
P.."t P'."'(;;^' nri "pp.rr',nr.",r,
rules -and
or.ders made, notilications and
notices issued and ."t;:;;-;;t-p'ottttlings instituted under the Sikkim Co-
operative Sc'.:icties A;,"; ;55 th'ti Ut. d""n''Erl to have been respectively nrade
issued or institutect "';;'";;1i1"
Ac!' uniess <luly revoked or cancclled'
powerstomaherules tt7, (r)-- Th.;;;;;-entmay'fort("wholeoranyPartofthestate
of Sikkim and for
",,y
Jn" oi Societies' after previous publication in the Gazette'
make ruies to carry out the PurPoses of this Act'
(z) In particuia'r, and without prejudice *"t|"
"g-t1:]-11iry
of thc
foregoing )rJ*"r, ,,'.t rules may provide for-all or any of the following matters'
namelY l-,.u,,,.', .-(")
the applicant to whonr the order refusing the registration of
a socieW nray be sent by the Registrar;a swurtrL/
(#
"";;;;J;; ;;i conditions for change 1s 1[q flornr and ex-
tent of tlrl iiuiritity if a society;
" r. ! ^,:--.. -L^, ^*(.:) the matters in respect of which a society shall or may tnake
bye-laws;" (d) the procedure to be followed for amendrnent of bye-laws by
a society;. ""-'-'r'1.\
the qualifications or disqualifrcations of individuals who may
Ir. admittld n, r,,embe" of societies;
(0 ttr" p.o,l,iott for a second or casting vote by the chairman of
a meeting qf x 5ociet/ i
/o\ the aopoinrment b'7 a society of one of its members to rePresent
nnd vote "lrui,
U.ir.lf li u
''''ttting
of unothti society of which it is a member ;
(h) tlr. ,";;;;;-ni''b"' o[ shares.or'portion of tlr'e share capital
of n ...i.['*hich may be held ]y an individual member';
""'""-^"(i) "";i;
pi";..ure foi.the no,rinatio' of a p,erso, to whom the
shareorinterestolo,,.*"t,""*,..hl,.l"ut],maybetrarrsferreclorthevaluethereof
may bc Pai<t;
(j) the mode in which the value of a deceased member's share
ahall be ascettained;
0.) the election of urembers of committee by the.general body of a
societyinc)trr1irrgtt,"..ppoint,.-rerrtolReturningol.ficcrsand-theporvet.sand
functi6ns of strcll Returning Officers-;
(l) the requisi"tioning of a general meeting o[ a society;
i,{.,1 th" .",,L,r.,"."tiui ptyiblt to a new*committee or Ailminis-
trators appo inted
1n
p)ace o[ a conrtnittes lsrnoved bv the Registrar i
(r,) ,n" qu"iin.o,ions or disqualification', fnr *J*bership of com-
mittee of
to 'no"i..ty, 'the autl,ority c"onlpetent to decide qtlestions of disqua-
lifications r.r.d appeals from such decisions;
(*21 )
(.) rlr" qr.,l"rlifr.orions of employecs ol'societies ;
_(p) . ,the prohibition ugi,,r, oflicers of a society beir.rg i,reresred
in colltjacts with the tociery;
(q) the rnatters connecred rvith the partnership of the Governrent
in societies;
(r) the rare ar which dividend may be paid by societies;
(t) the 1:ayn-rent to be nrade to the 'Co-operative Educatior.r F-ultl'
by a society out of irs net proiits and the mode of itslnvestrnent;
(c) the nrocle ol: investment of funds of a society;
(") the objects of the reserve fund o[ a sociery and r.node of irs
invcstnlflrt;
(u) the rnode o I disp.osal of r.eserve fund of a society o, irs rvindi,g up ;
(*) the exrent and conditions subject to which a society may 1.e-
ceivc deDosits atrd loans;
(") the restrjctions on transactions by a society rvith non-merlbers;
(y) the restrictions or1 grant of ioans b;, a sociery againsr its shares I(r) the fonn and standalrds of fluid ."rorr"". to bE maintained bv
societies accepting deposits and granting cash creclits;
(nn) the levy of audit fees on societiesl
(lrb) rhc procedu'e ro be followed irr proceediugs before trre ile-
gistrar, arbitrator or other person deciding disputes;
. (..) the co.ditio,s subject to which rssets of a sociery shall vest in
a liquidator and the pr,cedure ro be adopred,in winding ,p of u societ/;
(dd) the procedure lbr recovery of amolrllts ?ue or payable io a
society;
(:-") the mode of making attachment before judgernent;
(10 the procedure ar.rd conditions lor thc issue-, redemprion, re_
issue, transfer, replacetlerrt or conversion of bonds issled by a society;
(gg) the nraximu,l alrount of principal, the rate of interesiand other
conditions for the guararltee of debentures/bonds issued by a society;
- (hh) the proccdr-rr.e Ibr the distraint and ,sale of p.operry, mort-
gaged to a priurary- agriculturai credit society or to the state co-operative Bank ;(ii) the iurmediate sale o[ perishable arric]es;
(jl) the manner of registering the address of a sociery;
(kk) dre account.books and registers to be kepr by a'society and
power of Registrar to direct the accounts and books to be written up;
(11) rhe nranner of certificatio, of enrries in the booksbf a society
and of copies of documents kept by it in the course o['its business;
(innr) the staremerlts and retr.rrns to be f'urnished'by societies to the
Ilegistrar;
(".) the restrictions -olt persons appear.ing ng
(o") the inspecrion of documenrs and the Ievy
certified ccpies thereof; and
lcgal practitions;
oi fees for granting
I\epeol
, -(pp) the marrers expressly required or allowed by the Acc to be
prescribed.
,
(:) . .Every rule made under this sectior: shall inrnrediately afrer it
is made, b: laid belore the state Legislature if ir is in session and if it is not in
session, in the session im-mediately follorving for a total period of fourteen days
which may be complised in onc session orlin truo sucCessive sessions,
"rr,1
if,
belore the expirafion of the session in rvhich it is so laid or the session imrnediately
following; the Flouse agrees, in nraking any modification in the rules or in the
anntlalment of the rules, the rules shail thereafter ]rave eft'ect only in such nro-
di6ed form or shall stand a.nualled, as the case l)ray be, so, l.ro*Lu"r, that any
such modification or annuaiment shall be without prejudice to the valiciity of
arrything previousll, done uu<jer that rule"
r,1. - O,l the day on rvhich this Act comes into force, the Sikkim Co-ope-
rative Societ"ies Act, r g jJ as in fbrce in the state of sikkim shall stand repealed :
Provided that the repeai shall nor affect :-
. (l
_
the previous olteration of the Act so repealed or anything duly
done or sr-rffered thereunclerl or
. (,b) any ri-qhr, privilege, obligarion or liability acquired, accrued
or incurred under the Acr so rcltealcd ; or-
(o) any penaity, for:feiture or 1>u,ishnre,t i'curred in respect of
any offence conrmitted againsc the Act so iepealed; or
, (d) any. investigation, legal
-proieeding or remedy in respect of
an)/ sucil right, privilege, obligation, lialiility, p".,ulty, fcrr.l'eiture or punishment
as aforesaid, and any sr.rch
^irivestigation,
legai proceeding o. .*nl".Iy rnay be
instituted, co,tinued <.rr e'frrlcer,l, and-any iuch perralry,-tbrfeiture o, p,*luh-
ment may be imposed as if that Act had not been-repeaied.
(28 b
power to rernove d!t'jcu\- tt9. (,) If any- difficulty arises in giving eftect_to the provisions of tliisties
},"h'J;:ii:1T;n",L'i:r:x,1?i;i\:':..:'"ffi:l.Jl"TiTr'ln:,'fJ:1t:
Government may, by nOtifiCafion in the official Gazette, make srtch pro^visions
as appear to it io b. ,,ec"rrary or expedientfor lslnoving tlre difllcul6,.
(z) If any difficulty arises in giving effect to the provis.ions of this
Act (otherwise than' inrelation to the tiansition from the provisions of the
Acts in force before the commencement of this Act), the Government rnay bv
notification make provisions, not inconsistent with the PutPo:-.
of this Act, as
appeat to it to b"
-nece.sary or expedierrt lor removing the diffictrlty'
By Order of the Governor.
B. R. PRADHAN,
Secretary to the Government of Sikkim
Law and Legislative DePartment.
F. t5 (zs)LLfi1,
TTNTTNN AT THT SMXMI GOVERNMENT PRESS
C;C)VERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 112 Gangtok, Wednesday July 3, 1985.
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK.
Notification No. 6/LD/85 Dated the 29th June, 1985.
'The following Act of the Sikkirn Legislative Assembly having received the assent of
the Governor on the 28th day of June, 1985, is hereby published for general information:-
Short title and
comrnencemen t.
THE STKKIM CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 1985.
(ACT NO. 6 OF 1985)
AN
ACT
to amend the Sikkim Co-operative Societies Act, 1978.
Be it enacted by the Legislative Assembly of Sikkim in the Thirty-
sixth Year of the Repu blic of India as follows:-
1. (1) This Act may be called the Sikkim Co-operative Societies (Amend-
ment) Act, 1985.
(2) It shall be deemed to have come into force on the 1st day of July,
1978.
Amendment of
section 38.
2. In the Sikkim Co-operative Societies Act, 1978, in section 38, in sub-
section 0), after the word "nominate" and before the word "members", the
words' 'Chairman and" shall be inserted.
B. R. PRADHAN,
Secretary to the Govt. of Sikkim,
Law Department.
F. No. 16 (25) LD/78.
PRINTED AT THE~ SIKKIM GOVERNMENT PRESS, GANGTOK.
GOVERNf\/~ENT GAZE"TTE
EXTRAORDINARY
PUBLlSHED BY AUTHORITY----._------------_._-------_. __ ..__.--_._------,
Gangto/( Monday 18th August: 2003
"-
No. 262
GOVERNMENT OF SI~<f<IM
LAW DEPARTMENT
GANGTOf<
No. 9JLD/2003. Dated 13.8.2003.
NOTIFiCATION
The following Act of the Sikkim Ler.Jislative Assembly ilavill~received the assent of the Governor
on 4th day of August, 2003 is hereby published for general information:-
THE SIKKIP,,~ COOPERATIVE SOCIETIES (AMENDMENT) ACT, 2003
(ACT NO, 9 OF 2003)
AN
ACT
further to amend the Sikkirn Cooperative Societies Act, 1978.
BE it enacted by the I_egislatum of Sikkim ill the Filty-Iourtn Year of the Republic of India as
follows:-
Short title,
and comm-
encement.
1. ('I) This Act may be called the Sii(kim Cooperative Societies (Amendment)
Act, 2003.
(2) It shall come into force at once. ..
Amendment of
Section 38,
2. In the Sikkirn Cooperative Societies Act, 1978. in section 38,-
(i) in sub-section (1), the words" Chairman and" shall be omilteel
(ii) after SUb-section (2), the following sub-section shall be inserted, namely-
'(3) The chairpeson of the Apex Cooperative Societies shall be elected
from amongst President of the M8mber Cooperative Societies and the
manner of electon shall be such as may be prescribe in Hl8 Bye-Laws of
the respective Cooperative Societies".
3. The Sikkim Coope.rative Societies (Amendment) Ordinace, 2003 (6 of 2003)
is hereby repealed.
Reoeel.
By Order,
T,O. RINZING
Secretary to the Govt. of Sikkim,
Law Departrnent.
F. No, 16 (82)LD/2003.
SIKKIM
GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
Gangtok Monday 17th April, 2006 No. 104
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
No. 30/LD/2006. Date: 15.04.2006.
NOTIFICATION
The following Act of the Sikkim Legislative Assembly having received the assent of the Governor
on 24.03.2004 is published for general information:-
THE SIKKIM CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2006
(ACT NO 1 OF 2006)
AN ACT
Further to amend the Sikkim Co-operative Societies Act, 1978.
Be it enacted by the Legislature pf Sikkim in Fifty sixth year of the Republic of India as follows:-
Short title and 1, (i) This Act may be called the Sikkim Co-operative Societies (Amendment)
Commencement Act, 2006.
(ii) It shall come into force at once.
Amendment of
Section 90
2. In the Co-operative Societies Act, 1978 (hereinafter referred to as the said
Act,) in section 26,
(i) for the figure "5000" wherever it occurs, the figure "20,000" shall be
substituted,
(ii) after the words "whichever is less" the following shall be inserted, namely;
"except in case of Urban Co-operative bank where the maximum ceiling
will be Rs, 1.00 (one) lakh".
3. In the said Act, for the existing section 90, the following shall be substituted
namely: -
"90. The committee of the State Co-operative Bank shall conslsts of 14
(fourteen) members of whom 4 (four) shall be nominated by the Government, I
(seven) shall be representatives of societies of which one shall be women representative
elected from amongst the women Presidents of Multi-purpose Co-operative Societies
and if not one women Director having some experience and background abou
cooperative to be nominated by the State Government, 2 (two) shall be representatives
of members other than societies to be elected or nominated as per the bye-laws 0
the Bank and one Managing Director to be appointed by the State Government ir
consultation witl, the Reserve Bank of India",
Amendment of
Section 26
By Order.
R.K. Purkayastha (SSJS)
Legal Remembrancer- Cum- Secretary
Law Department
File no. 16(82) LD/P/2006
S.G.P.G -1141Gazeffe1150 NosIDt:- 19.4.2006.
SIKKIM
GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
Gangtok Thursday 20th August, 2009 No. 311
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK
No. 6/LD/P/2009 Date: 20.08.2009
NOTIFICATION
The following Act passed by the Slkkirn Legislative Assembly and having received the assent
of the Governor on 4th day of August, 2009 is hereby published for general information:-
THE SIKKIM COOPERATIVE SOCIETIES (AMENDMENT) ACT, 2009
(Act No.6 of 2009)
AN
ACT
further to amend the Sikkim Cooperative Societies Act, 1978.
Be it enacted by the Legislature of Sikkim in Sixtieth Year of the Republic of India as follows:-
Short title extent
and commencement.
1. (i) This Act may be called the Sikkim Cooperative Societies
(Amendment) Act, 2009.
(2). It extends to the whole of the Sikkim.
(3). It shall come into force at once.
Amendment
of Section 2.
2. In the Sikkim Cooperative Societies Act, 1978(hereinafter referred
to as 'the principal Act); in section 2,-
(i) for the existing clause (a), the following shall be substituted
namely:-
(a) "National Bank" means the National Bank for Agriculture
and Rural Development established under Section 3 of
National Bank for Agriculture and Rural Development
Act1981;
(ii) for the existing clause (e), the following shall be substituted,
namely;-
(e) "Cooperative year' means the period beginning from
1st day of April or the date of commencement of business or
the date of registration and ending the 31st day of March for
the purpose of drawing up the balance sheets of registered
societies as the case may be."
(iii) for the existing clause (f) the following shall be substituted,
namely:-
(I) 'Deposit Insurance and Credit Guarantee Corporation'
means the Deposit Insurance Corporation established under
section 3 of the Deposit Insurance Corporation Act, 1961',
(iv) for the existing clause (g) the following shall be substituted,
namely:-
(g) 'Apex Society' means a society, where not less than five
members of which are themselves societies.
Note :- the word 'chairman! chairperson' shall be used only
by the Apex societies and those societies other than the
Apex societies shall use the word President for the word
Chairman after the enactment of this Act.
(v) for the existing clause (i) the following shall be substituted, namely;
'Self Help Group', including 'Joint Liability Group' means a
group of individuals willing to undertake economic activity!
ies individually or jointly, whether incorporated or not and
whether established or not by or under any law.
(vi) for the existing clause (k) the following shall be substituted,
namely:-
'Nominal Member' means a person admitted as a member
by paying the admission fee and shall not be having any
voting rights and shall not be entitled to dividend declared,
(vii) for the existing clause (0) the following shall be substituted,
namely:-
'Primary Agricultural Credit Society' means a cooperative
SOCietyas defined under clause (cciv) of Section 5 of Banking
Regulation Act, 1949(Central Act 10 of 1949) and includes a
Multipurpose cooperative society.
(viii) for the existing clause (v) the following shall be substituted,
namely:-
"State Cooperative Bank" means an apex society engaged
in the business of banking;
(lx) after clause (v) the following clauses shall be inserted, namely ;-
(w) "Chartered Accountant" means a member of the Institute
of Chartered Accountants of India within the meaning of
the Chartered Accountants Act,1949 (38 of 1949)
(x) "Cooperative credit structure society" includes a State
Cooperative Bank and a primary agricultural credit society.
(y) "Multipurpose Cooperative Society" means a primary
society the object of which Is to provide various services
including services related to savings, credit, business,
industry and consumer durables to its members.
(z) "Primary society" means a cooperative society whose
membership consists exclusively of individuals and self help
groups.
2
Amendment
of Section 3.
Amendment
of Section 5.
Amendment
of Section 8.
Insertion of
new Section 8 A.
Amendment
of Section 11.
3. In the principal Act, in suo-section (4) of section 3, for the word 'federal'
the word 'apex' shall be substituted.
4. In the principal Act, in section 5,
(i) in clause (a), for the word 'federal' the word' apex' shall be
substituted,
(ii) after clause (b), the following clause shall be inserted, namely:-
(c) No primary agricultural credit society, or its federation
or association(except those which are permitted to act
as a bank under Banking Regulation Act, 1949(Central Act
No.10 of 1949) shall be registered with the words '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 SOCiety
or its federation or association(except those which are permitted
to act as a bank under Banking Regulation Act, 1949(Central Act
No.10 of 1949) has been registered or using the same as a part of
its name before the commencement of the Sikkim Cooperative
Societies (Amendment) Bill,2009 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 society fails to
comply with the above provisions within the period specified
therein, the Registrar shall order the winding up of such society
forthwith.
5. In the principal Act, in section 8, (1) in sub-section (1) after the words
'its bylaws' the following words shall be added, namely:- 'within one
month from the date of submission of application to the
Registrar'.
(ii) in sub-section (2), for the words 'six', the word one shall be
substituted.
In the principal Act, after section 8, the following new section SA shall
be inserted, namely;- "Affiliation" 'A cooperative credit structure
society may affiliate or disaffiliate with an apex society of its
choice:
Provided that before dis-affiliation, the society shall
discharge Its financial liability, if any, to the society from which it
is dis-affiliating.
6. In the principal Act, in section 11,
(i) in SUb-section (3), after the word "amendment" and before the
words "together with", the words "within one month" shall be
inserted;
3
Amendment
of Section 12.
Insertion of
new Section 19A.
Amendment
of Section 20.
Amendment
of Section 21.
Amendment
of Section 22.
(ii) in sub-section (4), after the words "therefore" and before the
words "to the society", the words "within one month" shall be
inserted.
7. In the principal Act, in section 12 after the words" duly made by the
society" the following provisio shall be inserted, namely:
"Provided that the provisions of this section shall not apply
to a cooperative credit structure society".
8. In the principal Act, after section19, the following new section 19A
shall be inserted, namely:-
. "Financial and internal Administrative matters"
(1) 'Notwithstanding anything contained in this Act, rules or bye-
laws made there under or any other law for the time being in
force, a cooperative credit structure SOCiety shall have autonomy
in all financial and internal administrative matters including the
following areas:-
(a) Interest rates on deposits and loans, in conformity with the
guidelines of the Reserve Bank;
(b) Borrowing and Investments;
(c) Loan policies and individual loan decisions;
(d) Personnel policy, staffing, recruitment, posting and
compensation to staff;
(e) Internal control systems, appointment of auditors and
compensation for the audit'.
(2) 'A cooperative credit structure society shall have the freedom
of entry and exit at any tier without mandatory restrictions
of geographical boundaries for its operation'.
9. In the principal Act, in sub-section (1) of section 20 after clause (d)
the following clause shall be inserted, namely:-
"(e) any self help group".
1O. In the principal Act, in sub-section (3) of section 21, after the words
"member of another" and before the words "credit society", the word
'primary' shall be inserted.
11. In the principal Act, in section 22, -(i) in clause (c) the following proviso
shall be inserted, namely:-
'Provided that the provisions of this clause do not apply to
a primary agricultural credit SOCiety'.
(ii) after clause (c), the following clause shall be inserted,
namely:-
(d) where a self-help group is a member, a person
nominated by such self-help group, may vote on its
behalf In the affairs of the society'.
4
Amendment
of Section 31.
Amendment
of section 34.
Amendment
of Section 36.
Amendment
of Section 38.
12. In the principal Act, in sub-section (3) of section 31, after clause
(e) the following clause shall be inserted, namely:-
(f) Notwithstanding anything contained in this Act, no
person shall be elected, nominated or co-opted or
allowed to continue as a member of the committee of a
cooperative credit structure society, if he,
(i) is a person who represents a society other than a
primary agricultural credit society on the committee of
a State Cooperative Bank if such society he represents
has committed a default towards the payments of such
Bank for a period exceeding ninety days;
(ii) is a person who committed a default towards the
payments to a primary agricultural credit society or
represents a primary agricultural credit society on the
committee of a State Cooperative Bank if such society
he represents has committed a default towards the
payments of such bank for a period exceeding one year
unless the default Is cleared;
(iii) is a person, who represents a society whose committee
is superceded or has ceased to be a member on the
committee of his own society'.
13. In the principal Act, in section 34 after sub-section (2) the following
sub-sections shall be inserted, namely:-
(3) The Returning Officer under sub-section (1) of Section (34)
shall within 90(ninety)days before expiry of term of the
committee, make arrangements for the constitution of a new
committee in accordance with the provisions of this Act and
rules and bye-laws made there under.
(4) Where any Committee has ceased to hold office and no
Committee has been constituted in accordance with the
provisions of this Act and Rules and bye-Jaws made there
under, the Registrar, may, by an order in writing, appoint an
Administrator for such period as may, from time to time, be
specified in the order and the Administrator shall before the
expiry of the period of his appointment, arrange for the
constitution of a new Committee in accordance with the
provisions of this Act and rules and bye-laws made there
under:
Provided that the total period for which an Administrator
may be appointed shall not in any case exceed 60 days.
14. In the principal Act, in clause (c) of section 36, for the words "a
federal society" the words 'an Apex society' shall be substituted.
15. In the principal Act, in section 38, in sub-section (1), after clause (ii),
the following clauses shall be inserted, namely;-"(iii) Notwithstanding
anything contained in sub-section (1) of this Section, there shall
5
Amendment
of Section 39.
Amendment
of Section 42.
Amendment
of Section 55.
be only one nominee of the State Government on the committee
of a State Cooperative Bank if the Government has subscribed
to its share capital."(iv) Notwithstanding anything contained in
sub-section (1) of this Section, there shall be no nominee of the
State Government on the committee of a primary agricultural
credit society.
16. In the principal Act, in section 39, -
(1) in sub-section (1), the words 'or the cooperative movement in
the state'; shall be omitted:-
(2) in clause (b), for the words 'one year' the words 'two months'
and for the words 'three years' the words 'six months from the
date of supersession' shall respectively be substituted;
(3) in sub-section (3), words 'subject to the control of the Registrar
and to such instructions as he may from time to time issue';
shall be omitted;
(4) after sub-section (5) the following new SUb-sections shall
be inserted, namely;-
"6 (a) The Board of a State Cooperative Bank shall be
superseded with the prior approval of the Reserve
Bank.
(b) The Board of a primary agricultural credit Society
shall be superseded by the Registrar only under the
following conditions:-
(i) that a society incurs losses for three consecutive
years; or
(ii) that serious financial Irregularities or frauds have
been identified; or
(iii) that there are judicial directives to this effect; or
(lv) there is perpetual lack of quorum.
Explanation:- "perpetual lack of quorum" means failure of holding
three consecutive meeting for want of quorum.
(c) A member of the Board of a primary agricultural credit
cooperative society which has been superseded
under sub clauses (i) and (li) of clause b of SUb-section
(6) of Section 39 shall not be entitled to contest again
for a period of three years after supersession".
17. In sub-section (1) of section 42, after the words, "due to a society by
any member" and before the words including a passed or deceased
member the words 'or the surety of any member of a society' shall
be inserted, and after the words "deceased members and before the
words shall be a first charge the words 'and or surety thereof' shall
be insertec;
18. In the principal Act, in clause (a) of section 55 the following provisos
shall be inserted, namely;-
"Provided that the State Government's subscription to the
equity share capital of a cooperative credit structure society shall
6
Amendment
of Section 56.
Amendment
of Section 57.
Amendment
of Section 58.
Amendment
of Section 59.
Amendment
of Section 60.
not exceed twenty five percent of its equity share capital and the
State government or the cooperative credit structure entity may
r~duce the State Government's subscription further at its choice:
"Provided further that in case of a State Cooperative Bank
which is unable to comply with the requirements of sub-section
(1) of Section 11 of Banking regulation Act, 1949(Central Act 10
of 1949), the State Government can contribute equity only to the
extent required to enable a State Cooperative Bank to comply
with the requirements of sub-section (1) of Section 11 of Banking
Regulation Act, 1949, (Central Act, 10 of 1949)".
19. In the principal Act, in section 56, - (i)for the existing sub-section (1),
the following sub-section shall be substituted, namely:-
(1) 'A society shall have autonomy in formulating its own
personnel policy including recruitment and compensation to the
staff' .
(ii) in sub-section (2) the following proviso shall be inserted, namely:-
'Provided that the provisions of this sub-section shall not
apply to a cooperative credit structure society'.
20. In the principal Act, section 57 shall be renumbered as sub-section
(1) of that section and after the sub-section (1) as so renumbered the
following sub-section shall be inserted, namely:-
(2) 'Notwithstanding anything contained in SUb-section (1), a
primary agricultural credit society shall pay a dividend to its
members in accordance with the guidelines laid down by the
Registrar in consultation with the National Bank'.
21. In the principal Act, in Section 58 the following proviso shall be inserted,
namely:-
'Provided that the ::>rovisions of this Section shall not be
applicable to a cooperative credit structure society'.
22. In the principal Act, in section 59 the following proviso shall be inserted,
namely:-
'Provided that the provisions of this Section shall not be
applicable to a cooperative credit structure society'.
23. In the principal Act, in sub-section (1) of section 60,-
(i) for the existing clause (e) the following clause shall be
substituted, namely:-
"(e)with any bank or Reserve Bank regulated financial
institution of its choice;'
(ii ) clause (f) shall be omitted;
(iii) after clause (g) the following proviso shall be inserted,
namely:-
7
Amendment
of Section 61.
Amendment
of Section 62.
'Provided that while making investments, a State
Cooperative Bank will follow guidelines stipulated by Reserve
Bank:
24. In the principal Act, in section 61,-(1) in sub-section (1), the words
'with the general or special sanction of the Registrar'; shall be
omitted;
(2) after the first proviso the following proviso shall be inserted, namely:-
'Provided further that the cooperative credit structure
society may take appropriate decision regarding its loan policies
including individual loan decision to its member, keeping in view
the Interest of the society and its members'.
(3) after sub-section (2); the following new sub-section shall be
inserted, namely:-
U(3) (a) An individual or group depositor in a primary agricultural
credit society shall become amember of the society under sub-section
(1) of Section 20 by subscribing at least the minimum share capital
specified in the bye-laws and on holding a minimum deposit as
may be prescribed by the Government from time to time for a
continuous minimum period as may be prescribed preceding the
date of notification of election shall have full voting rights.
(b) An individual or a group borrower shall become a member of
a primary agricultural credit society under sub-section (1) of
Section 20 by subscribing the prescribed share capital specified
in the bye-laws and shall have full voting rights.
(c) Every group depositor or group borrower admitted as a
member under SUb-section (1) of Section 20 shall be entitled to
vote through one delegate nominated by the group:
Provided that a depositor member of a primary
agricultural credit society shall be eligible for loans on par with
other members.
"(4) 'The prudential norms including Capital to Risk Weighted
Assets Ratio shall be prescribed by the Registrar for all the
primary agricultural credit societies in consultation with the
National Bank."
25. In the principal Act, Section 62 shall be renumbered as sub-Section(1)
of that section and after the sub-section (1) as so renumbered the
following sub-sections shall be inserted, namely:-
(2) Notwithstanding anything contained in sub-section (1),
a cooperative credit structure society shall have freedom to raise
loan from any bank or Reserve Bank regulated financial
8
Amendment
of Section 63.
Amendment
of Section 64.
Amendment
of Section 71.
institution, refinance from National Bank or any other refinance
agencies directly or through any institution of its choice and not
necessarily from only the society to which it is affiliated.
26. In the principal Act, in section 63, after the words
"Transactions of a society" and before the words "with any
person" the words 'except State Cooperative Bank' shall be
inserted.
27. In the principal Act, in section 64,(i) in sub-section (1),the following
clauses shall be inserted, namely:-
(a) A primary agricultural credit society shall get its accounts
audited at least once in each year by the Registrar or by a person
authorized by him by general or special order in writing in this
behalf or by a Chartered Accountant appointed by its committee.
(b) Notwithstanding anything contained in sub-section (1), the
accounts of a State Cooperative Bank shall be audited and
certified by Chartered Accountants appointed by its committee
from the panel approved by the National Bank.
(c) The Registrar shall get conducted a special audit of a State
Cooperative Bank on the request of the Reserve Bank in the
manner and form stipulated by the Reserve Bank and shall
endorse a copy of the report of such special audit to the Reserve
Bank and National Bank within the time stipulated by the Reserve
Ban~ .
(ii) In sub-section (5), after the words, "under sub-section (1) and
before the words "to audit the accounts", the words 'or the auditor
or chartered accountant appointed under clauses (a) (b) and (c)
shall be inserted.
28. In the principal Act, in section 71,(i) in sub-section (1), before the
words where the course of an audit, the words 'Except in case of
Cooperative credit structure society'; shall be inserted.
(ii) after sub-section (3) the following sub-sections shall be inserted,
namely:-
(4)The Registrar shall ensure that Reserve Bank's regulatory
prescriptions in the case of a State Cooperative Bank including
recommendation for super session of the committee or winding
up of a State Cooperative Bank and appointment of the
Administrator or the Liquidator, as the case may be, are
implemented within one month from the date of receipt of the
advice from the Reserve Bank.
(5) The Registrar shall, within two months of being advised
by the Reserve Bank or the National Bank, ensure removal of
Chief Executive Officer of a State Cooperative Bank who does
not fulfill eli'gibility criteria specified by the Reserve Bank.
9
Amendment
of Section 88.
Amendment
of Section 89.
Amendment
of Section 90.
(6) The Registrar shall, within two months of being advised
so by the Reserve Bank or the Nation Bank, ensure removal of
any person elected or co-opted as a member of the Board under
sub-section (1A) of Section 90 without having the requisite
knowledge or experience as stipulated by the Reserve Bank.
29. In the principal Act, in sub-section (4) of section 88, the words, 'or
outside Sikkim' shall be omitted and for the words 'the previous
sanction of the Registrar' the words 'the approval of RBI' shall be
substituted,
30. In the principal Act, section 89 shall be omitted.
31. In the principal Act, for the existing section 90 the following shall be
substituted. namely:- "90 (1)The Board of a State Cooperative Bank
shall consist of 11 members of whom 1 shall be nominated by
the Government,S shall be representatives of primary agricultural
credit societies of which 1 shall be woman representative elected
from amongst the women Presidents of primary agricultural
credit societies and if no such woman is elected one Woman
Director having some experience and background about
cooperative to be co-opted by the Board of the Directors of the
State Cooperative Bank, and one shall be representative of
members other than societies to be elected or nominated as per
the byelaws of the Bank, and a Managing Director.
(2) There shall be at least such number of professionals
having special knowledge or experience in such fields as may be
stipulated by the Reserve Bank on the committee of a State
Cooperative Bank and in case such number of elected directors
do not, in the opinion of Reserve Bank or National Bank, possess
special knowledge or experience in such fields as may be
stipulated by the Reserve Bank, the Committee of a State
Cooperative Bank shall co-opt such number of professionals with
full voting rights irrespective of-
(i) the limit on the number of members of the committee
under this Act or rules framed there under or its byelaws,
(ii) whether such professional is a member of the society or
not.
(3) NotWithstanding anything contained in this Act, the Chief
Executive Officer and the members of the committee of a State
Cooperative Bank shall fulfill the criteria stipulated by the Reserve
Bank for the time being in force and such person who, in the
opinion of the Reserve Bank or the National Bank, does not fulfill
the criteria stipulated by the Reserve Bank shall be removed on
advice of the Reserve Bank or the National Bank.
10
Omission
of Section 96
Amendment
of Section 96 (A).
Amendment
of Section 101.
Amendment
of Section 111.
32. In the principal Act, section 96 shall be omitted.
33. In the principal Act, (i) in section 96A (i); the words 'subject to the
provisions of section 89' shall be omitted".
(ii) the sub-section (2) of section 96A shall be omitted.
34. In the principal Act, in section 101, (i) in sub-section (2)for the words
"two hundred rupees" the words 'Five thousand rupees' and for the
words and figure "rupees 25" the words "rupees one hundred" shall
respectively be substituted.
(li) in sub-section (3) for the words "two hundred rupees" the words
"five thousand rupees" shall be substituted;
(iil) in sub-section (4) for the words "two hundred rupees", the
words "two thousand rupees" shall be substituted;
(iv) in sub-section (5) for the words 'five hundred rupees' the words
'five thousand rupees' and for the words and figure' Rs. 25
the words "rupees one hundred" shall respectively be
substituted;
(v) in sub-section (6) for the words 'two hundred rupees' the words
two thousand rupees shall be substituted;
(vi) in sub-section (7)for the words 'two hundred rupees' the words
two thousand rupees shall be substituted;
(vii) in sub-sections (8) and (9), for the words five hundred rupees
wherever they occur the words five thousand rupees or 10% of
the share money collected whichever is less' shall be
substituted;
(viii) in sub-section (10) for the words one thousand rupees the words
ten thousand rupees shall be substituted.
35. In the principal Act, section 111 shall be renumbered as sub-section
(1) of that section and after the sub-section (1) as so renumbered the
following sub-section shall be inserted, namely:-
(2) No cooperative credit structure society shall be exempted
by the Government from the application of the provisions of this
Act without the prior approval of the Reserve Bank or the National
Bank.
By Order.
R.K. PURKAYASTHA (SSJS)
LR-cum-SECRETARY
Law Department
File No. 16 (82)/ LD/P/2009
SIKKIM
GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
Gangtok Thursday 22nd April, 2010 No. 171
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK
No. 5ILDIP12010 Date: 21.4.2010
NOTIFICATION
The following Act passed by the Sikkim Legislative Assembly and having received the assent of the
Governor on the 30th day of March, 2010 is hereby published for general information:-
THE SIKKIM COOPERATIVE SOCIETIES (AMENDMENT) ACT, 2010
ACT NO.5 OF 2010
AN ACT
further to amend the Sikkim Cooperative Societies Act, 1978.
Seit enacted by the Legislature of Sikkim in the Sixty-first Year of the Republic of India as follows:-
Short title and
commencement
1. (1) This Act may be called the Sikkim Cooperative Societies
(Amendment) Act, 2010.
(2) It extends to the whole of Sikkim.
(3) It shall come into force at once.
Amendment of
Section 117
2. In the Sikkim Cooperative Societies Act, 1978, sub-section (1) of
section 117 shall be omitted.
R.K. PURKAYASTHA (SSJS)
LR-cum-Secretary
Law & Parliamentary Affairs Department
s.G.P.G. -171/GazetteifOOCps.l22.04.20fO
SIKKIM
GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
. Gangtok Saturday 30th April, 2011 No. 220
GOVERNMENT OF SIKKIM
LAW DEPARTMENT·
GANGTOK
No. 3/LD/P/11 Dated: 26/04/2011.
NOTIFICATION
The following Act passed by the Sikkim Legislative Assembly and having received the assent of
the Governor on 30th day of March, 2011 is hereby published for general information:-
THE SIKKIM COOPERATIVE SOCIETIES (AMENDMENT) ACT, 2011
(ACT NO.3 OF 2011)
AN
ACT
further to amend the Sikkim Cooperative Societies Act, 1978.
Be it enacted by the Legislature of Sikkim in the Sixty-second Year of the Republic of India as
follows:-
Short title and 1. (1) This Act may be called the Cooperative Societies (Amendment)
commencement Act,~011.
(2) It shall come into force at once.
Amendment of 2. lri the Sikkim Sikkim Cooperative Societies Act, 1978, herein after
section 26 referred to as the said Act, in section 26; for the figure and the words,
'Rs. 1.00 (one) lakh', the figure and the words '5% of the total Paid-Up
Share Capital' shall be substituted.
Insertion of new 3. In the said Act, after section 26, the following new section '26 A', shall
section 26 A be inserted namely:-
'Issue of preferential
shares'
'26 A The Urban Cooperative Bank (s) after registration. in addition to
raising share capital from its/their individual members may also issue
Preferential Shares of the following types. namely:-
(i) Perpetual Non-Cumulative Preferential Shares (PNCPS);
(ii) Perpetual Cumulative Preferential Shares (PCPS);
(iii) Redeemable Non-Cumulative Preferential Shares (RNCPS);
(iv) Redeemable Cumulative Preferential Shares (RCPS):
Provided that the Urban Cooperative Banks shall not be entitled
to subscribe the Preferential Shares of other Urban Cooperative Bank (s).'
R.K. Purkayastha, (SSJS)
L. R-cu m-Sec reta ry
Law Department.
File 16 (82) LD/P/77-11
S.G.P.G. - 220/ Gazette/3D Cps./ 30.04.2011
S~KKHVi
GOV'ERNMEi\JT G,Ai~f':TTE
EXT RA 0 I::,{D iI\~A 8y
PUBLISHED BY AUTHORITY~--.-------------
, T_h_,_u_rs_d_a_y~2_0th J ;~!le,"._~~~3
LAW DEPARTIVIENT
GOVERNMENT OF SIKKIM
GANGTOK
No. 296
No. 06/LD/P/13 Dated: 11.06.2013
NOTIFICATION
The following,Act passed by the Sikkim Legislative assembly and IJaving received the assent
of the Governor on 18th day of May, 2013 is hereby published for general information:-
THE SIKKIM COOPERATIVE SOCIETIES (AMENDMENT)
ACT,201:~
ACT NO. 6 01: 2013
AN
ACT
further to amend the Sikkirn Cooperative Societies Act, 1978.
Be it enacted by the Legislature of Sikkim in the Sixty-fourth Year of India as follows:-
and
This Act may be called the Sikkim Cooperative Societies,
(Amendment) Act, 2013.
It extends to the whole of Sikkirn,
It shall come into force at once,
Short title, extent 1. (1)
commencement (2)
(3)
Amendment
of
section 2,
2. In the Sikkim Cooperative Societies Act, 1978,(hereinafter referred to as
'the said Act'); in section 2,-
(i) after clause (b), the following clause shall be inserted, namely:-
"(bb) 'Board' means the Board of Director or the governing
body of a Cooperative Society, by whatever name called, to
which the direction and control 01the management 01the afiairs
of a society is entrusted to,"
(ii) after clause (v), the following clause shall be inserted, namely:-
"(vv) 'State Level Cooperative Society' means a Cooperative
Society having its area of operation extending to the whole of
the State,"
Amendment of
section 21.
Amendment of
section 26.
Insertion of
new section 29A.
'Right of a member
to get information'
Amendment
of
section 32.
Amendment of
section 34.
Amendment of
section 35.
3, III the said Act, alter sub-section (3) 01 ~;ec\iorl 21, tile fOlloWing
sub-section shall be inserted, namely:
"(4) A member who tails to atteno a minimum number of meetings of
the Society 01' to participate in its activities by availing a minimum
quantum of its services, as may be specified ill its bye-laws, shall be
disqualified from continuing as a member and shall cease to be a
member from that day a declaration to that effect is made by CI
resolution passed by tlte General Body meeting."
4. In the said Act, in section 26:-
(i) for the words and figure 'such portion of the total share capital
of the Society which exceed one-fifth thereof or Rs.20,OOO/-
whichever is less except in case of Urban Cooperative Bank
where the maximum ceiling will be Rs.1.00(one)lakh', the words
and figure, '5% of the total paid-up share capital' shall be
substituted;
(ii) the proviso shall be omitted.
5. In the said Act, after section 29,a section shan be inserted, namely:-
"29A Every member of a SOCiety shall have access to its account books and
other connected record and information kept in respect of transactions with
that member; and the Chief Executive shall make arrangernents for tile
inspection of such records and documents by the member .jll his request."
6. In the said Act, in sub-sectionrt) of section 32, for the words. 'alter the date
fixed for making up its accounts for tile cooperative year under tile rules tor
the time being in force' the words, 'Irom the closing of the cooperative year',
shall be substituted.
7. In the said Act, after sub-section (1) of section 34, the following sub-sections
shall be inserted, namely.-"
"(1 a) The election of a Board shall be conducted before the expiry
of the term of the board so as to ensure trial the newly elected members
of the Board assume office immediately on the expiry of the ofiice of
members of the outgoing Board;
(1b) The Board shall consist of such number of Directors as may
be prescribed by the bye-laws:
Provided that the maximum number of Directors s' a Cooperative
Society shall not exceed twenty-one members.
(1c) One seat for the Scheduled Castes or the Scheduled Tribes
and two seats for women on Board of every CO[Jr:\~rative Society
consisting of individuals as members shall be kept reserved to be
filled by members from such class or category of persons."
B. In the said Act, in section 35,
(i) for the word 'three', me word 'five', shall be substituted;
2
(ii) after the existing proviso, the following proviso shall be
inserted, namely-
, Provided further that the Board may fill a casual
vacancy on the BOclrd by nomination out of the same class of
members in respecl of which the casual vacancy has arisen,
if the term of office 01 tile Board is less than half of its original
term,'
Amendment of 9. In the said Act, after sub-section (3) of section 38, the following sub-section
section 38. shall be inserted. namely:-
'(4) The board shall co-opt certain persons to be members of
the board who may be having experience in the field of banking.
management, finance or specialization in any other field relating
to the objects and activities undertaken by the Cooperative
Society:
Provided that the number of such co-opted members
shall not exceed 2(two) in addition to 21 (twenty-one) directors
and these members shall not have the right to vote in any
election of the Cooperative Society in their capacity as such
member or be eligible to be elected as office bearers of the
Board:
Provided further that tile functional directors of a
Cooperative 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 to sub-
section (1b) of section 34.'
Amendment
of section 39.
10. In the said Act, after clause (c) of sub-section (6) of section 39,following shall
be inserted, namely:-
'(d) The Board of other Cooperative Societies except as
mentioned in clause (b) above, the Board 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 Cooperative Society or its members; or
(lv) there is stalemate in tne constitution or functions of the
Board; or
(v) the authority or officers as provided under sub-section
(1) of section 34 has failed to conduct elections in
accordance with the provisions of the Act:
Provided that the Board of any such Cooperative
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 Cooperative Society carrying
on the business of banking, the provisions of the 8anl<ing
Regulalion Act, 1949 shall also apply,'
3
Amendment 11. In the said Act, in section 55 after the existing clause (fi the following clause
of shall be ins8l1ed, namely:-
Section 55 "(g) The State Government shau take steps for the education and
training of members of Societies in Cooperative matters and
shall make an annual contribution to the State Cooperative
Union which shall be expended ill providing training and on
information, education and comrnunication activities to educate
the public in various aspects of cooperation"
Amendment of 12. In the said Act, in section 64,
section 64. (i) In clause (a) of sub-section 1, for the words 'A primary
agricultural credit society' the words, 'AII cooperative societies'
shall be substituted, and after the words 'by its committee' the
words 'from the panel of Chartered Accountants maintained
by the Government' shall be inserted;
(ii) after clause (C),tI18 following clauses shall be inserted, nameiy-;
"(d) The accounts of every Cooperative Society shall be
audited within 6(six) months of the close of the financial year
to which such accounts relate.
(e) The audited annual statement of accounts of each apex society,
alongwith the observations of the auditors thereon, if any, shall
be laid before the Legislative Assembly for one full session."
Insertion of
section64 A
'Societies to
furnish returns'
13. In the said Act, after section 64, a new section shall be inserted namely;-
"64A Every Society shall furnish to the prescribed authority, within 6(six)
montns from tne close Of eacn cooperative year;-
(a) a report on its activities during the year:
(b) an audited statement of Accounts for ttle year;
(c) its plan for disposal of surplus generated dUring the year
approved by the General Body;
(d) a statement of amendments made to the Byelaws:
(e) a declaration regarding holding general body meeting and
conduct ot elections, if due; and
(f) Any other report prescribed under the rules and other
information as required by tile Registrar under tile provisions
of the Act."
Amendment
of
section 117
14. In the said Act, in section 117,the following shall be inserted, namely:-
'(1) The Government may, for the whole or any part of the State of
Sikkim and for any class of societies, make rules to carry out the
purposes of these Act.'
R. K. Purkayastha
Advisor-cum-Principal Secretary,
Law & Parliamentary Affairs Department.
S.G.P.G. ·2961 Gazetlel 30 Cps./ 20.06.2013
THE SUBSEQUENT AMENDMENTS TO THE SIKKIM CO-OPERATIVE SOCIETIES ACT, 1978 (ACT NO. 12 OF 1978) AMENDED AND UPDATED UPTO JUNE, 2013
Open official source version ↗About this act
- Jurisdiction
- Sikkim
- Enactment date
- 1978-07-01
- Sections available
- Document reader
India Code, Government of India. Text fetched 12 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.