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The Tripura Co-operative Societies Act, 1974

(Tripura Act No. 8 of 1974)

Last Updated 16th September, 2020 [tri019]

chapter I

Preliminary

(1) "Agricultural marketing society" means a society-

(a) the object of which is the marketing of agricultural produce and the supply of implements and other requisites for agricultural production, and

(b) not less than eighty per centum of the members of which are agriculturists or societies formed by agriculturists;

Note. - In this sub-section, "Agriculturist" means a person employed in agricultural work whether owning any land or not and includes a bargadar;

(2) "auditor" includes a person appointed by the Registrar to audit the accounts of a society;

(3) "bonus" means payment made in cash or kind out of the profits of a society to a member, or to a person who is not a member, on the basis of his contribution (including any contribution in the form of labour or service) to the business of the society; and in the case of a farming society, on the basis both of such contribution and also the value or income or, as the case may be, the area of the lands of the members brought together for joint cultivation, as may be decided by the society;

(4) "bye-laws" means bye-laws registered under this Act and for the time being in force, and includes registered amendments of such bye-laws;

(5) "Committee" means the committee of management, or other governing body, by whatever name called, to which the Management of the affairs of a society is entrusted:

(6) "company" means a company as defined in the Companies Act, 1956 (1 of 1956) and includes a Banking Company and also any board, corporation or other corporate body constituted or established by any Central, State or Provincial Act for the purpose of the development of any industry;

(7) "consumers society" means a society the object of which is-

(a) the procurement, production or processing and distribution of goods to, or the performance of other services for, its members as also other customers, and

(b) the distribution amount its members and customers, in the proportion prescribed by rule or by the bye-laws of the society, of the profits accruing from such procurement, production or processing and distribution;

[(8) Cooperative credit structure society includes the State Cooperative Bank, the Co-operative land development bank and a primary agricultural credit society.]

[(9) State Cooperative Bank means an apex cooperative society doing the business of banking as defined in clause (b) of Section 5 of the Banking Regulation Act, 1949 and having jurisdiction over whole of Tripura State and declared as such by the State Government under clause (u) of Section 2 of the National Bank for Agriculture and Rural Development Act, 1981(Central Act No. 61 of 1981).]

(10) "co-operative land development bank" means a society which is functioning or is to function as a land development bank under chapter XII;

(11) "dividend" means the amount paid out of the profits of a society, to a member in proportion to the shares held by him;

(12) "financing bank" means a co-operative bank, or a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), the objects of which include the creation of funds to be loaned to other societies;

(13) "farming society" means a society in which, with the object of increasing agricultural production, employment and income and the better utilisation of resources, lands are brought together and jointly cultivated by all the members; such lands-

(a) being owned by or leased to the members (or some of them), or

(b) coming in possession of the society, in any other manner whatsoever;

(14) "federal society" means a society-

(a) not less than five members of which are themselves societies, and

(b) in which the voting rights are so regulated that the members which are societies have not less than four-fifths of the total number of votes in the general meeting of such society;

(15) "firm" means a firm registered under the Indian Partnership Act, 1932 (IX of 1932);

(16) "general society" means a society not falling in any of the classes of societies defined by other clauses of this section;

(17) "housing society" means a society the object of which is providing its members belonging to low income group with an income of not more than rupees five hundred per month with dwelling houses;

(18) "industrial society" means a co-operative society, the objects of which include the manufacture of goods by or with help of its members and the provision of supplies and services to them and also to small producers and entrepreneurs, and includes a co-operative society established with the object of facilitating the operation of such a society;

(19) "liquidator" means a person appointed as liquidator under this Act;

(20) "local authority" includes a school board and an agricultural produce market committee constituted by or under any law for the time being in force;

(21) (a) "member" means a person joining in an application for the registration of a co-operative society which is subsequently registered, or a person duly admitted to membership of a society after registration, and includes a nominal or sympathiser member;

(b) "nominal member" means a person admitted to membership as such after registration in accordance with the bye- laws;

(c) "sympathiser member" means a person who sympathises with the aims and objects of the society and who is admitted by the society as such member;

(22) "official Gazette" means the Tripura Gazette;

(23) "officer" means a person elected or appointed by a society to any office of such society according to its bye-laws; and includes a Chairman, Vice-Chairman, President, Vice-President, Managing Director, Manager, Secretary, Treasurer, member of the committee, and any other person elected or appointed under this Act, the rules or the bye-laws, to give directions in regard to the business of such society;

(24) "prescribed" means prescribed by rules;

(25) "processing society" means an agricultural society the object of which is the processing of goods;

(26) "producers society" means a society the object of which is the production and disposal of goods or the collective disposal of the labour of the members thereof;

(27) "Registrar" means a person appointed to be the Registrar of Co-operative Societies under Section 3 of this Act;

(28) "resource society" means a society the object of which is the obtaining for its members the credit, goods or services required by them;

(29) "rules" means the rules made under this Act;

(30) "society" means a co-operative society registered, or deemed to be registered, under this Act;

(31) "society with limited liability" means a society in which the liability of its members for the debts of the society, in the event of its being wound up, is limited by is bye-laws

(i) to the amount, if any, unpaid on the shares respectively held by them, or

(ii) to such amount as they may respectively undertake to contribute to the assets of the society;

(32) "society with unlimited liability" means a society, the members of which, are in the event of its being wound up, jointly and severally liable for and in respect of its obligations and to contribute to any deficit in the assets of the society;

(33) "Tribunal" means the Tripura Co-operative Tribunal constituted under this Act; and

(34) "working capital" means funds at the disposal of a society inclusive of paid-up share capital, funds built out of profits, and money raised by borrowings and by others means.

[(35) "Primary agricultural credit society means a cooperative society as defined under clause (cciv) of Section 5 of Banking Regulation Act, 1949(Central Act 10 of 1949) and includes a multipurpose cooperative society."

(41) Apex Cooperative Society" means a Cooperative Society whose membership includes societies.]

chapter II

Registration

(a) no credit society shall be registered if the bye-laws of such society permit admission, as member thereof, of a person who is a money-lender by profession;

(b) no consumers' society shall be registered if the bye-laws of such society permit admission, as member thereof, of a person who is a grocer by profession; and

(c) no industrial society shall be registered if the bye-laws of such society permit admission, as member thereof, of a person who is carrying on, on his own account or has interest in, any business of the kind carried on by such society.

(a) in the case of a society, other than a federal society, by at least ten persons (each of such persons being a member of a different family), who are qualified under this Act; and

(b) in the case of a federal society, by at least societies.

(a) all members and creditors have assented, or deemed to have assented thereto as aforesaid; or

(b) all claims of members and creditors who exercise the option, given by sub-section (2), within the period specified therein, have been met in full or otherwise satisfied.

(a) to amalgamate with another society;

(b) to transfer its assets and liabilities, in whole or in part to any other society;

(c) to divide itself into two or more societies; or

(d) to convert itself into another class of society;

(i) the society, after passing such resolution, has given notice thereof in such manner as may be prescribed to all its members, creditors and other persons whose interests are likely to be affected (hereinafter in this section referred to as "other interested persons"), giving them the option, to be exercised within one month from the date of such notice of becoming members of any of the new societies, or continuing their membership in the amalgamated or converted society, or demanding payment of their share or interest or dues, as the case may be;

(ii) all the members and creditors and other interested persons have assented to the decision, or deemed to have assented thereto, by virtue of any member or creditors or any other interested person failing to exercise his option within the period specified in Clause (i) aforesaid; and

(iii) all claims of members and creditors and other interested persons, who exercise the option within the period specified, have been met in full or otherwise satisfied.

(a) a copy of the proposed order has been sent in draft to the society or each of the societies concerned;

(b) the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions and objections which may be received by him within such period (not being less than two months from the date on which the copy of the order as aforesaid was received by the society) as the Registrar may fix in that behalf, either from the society, or from any member or class of members thereof, or from any creditor or class of creditors; and

(c) the prior approval of the State Government has been obtained for such reorganisation, amalgamation or division.

(a) between a society and its creditors, or

(b) between a society and its members,

(e) Internal control systems, appointment of auditors and compensation for the audit.]

chapter III

Members and their Rights and Liabilities

(a) an individual, who is competent to contract under the Indian Contract Act, 1872 (IX of 1872);

(b) a firm, company or any other body corporate constituted under any law for the time being in force, or a society registered under the Societies Registration Act, 1860 (XXI of 1860);

(c) a society registered or deemed to be registered under this Act;

(d) the Government;

(e) a local authority;

(f) a public trust registered under any law for the time being in force for the registration of such trust:

(g) [-]

[(h) Self Helf Group-

(b) Every member of a society shall exercise his vote in person and no member shall be permitted to vote by proxy.

(a) hold more than such portion of the total share capital of the society (in no case exceeding one-tenth thereof) as may be prescribed, or

(b) have or claim any interest in the shares of the society exceeding five thousand rupees:

(a) he has held such share or interest for not less than six months;

(b) the transfer or charge is made to a member of the society or to a person whose application for membership has been accepted by the society; and

(c) the committee has approved such transfer.

(ii) In this sub-section the expression "financial year" means the year ending on the 30th June or, in the case of any society or class of societies the accounts of which are, with the previous sanction of the Registrar, balanced on any other day, the year ending on such day.

(a) in the case of a past member, on the date on which he ceased to be a member, and

(b) in the case of a deceased member, on the date of his death, shall continue for a period of two years from such date.

(a) has applied to be adjudicated an insolvent or is an undischarged insolvent; or

(b) has been sentenced for any offence involving moral turpitude, such sentence not having been reversed and the offence pardoned and a period of five years has not elapsed from the date of expiry of the sentence; or

(c) has been expelled from membership under this Act.

(a) in the case of a society with unlimited liability, without limit; and

(b) in the case of a society with limited liability subject to such limitation of amount of as may be provided in the bye-laws.

chapter IV

Incorporation, Duties and Privileges of Societies

(a) the name, address and occupation of each member;

(b) in the case of a society having share capital, the share held by each member;

(c) the date on which each person was admitted as a member;

(d) the date on which any person ceased to be a member; and

(e) such other particulars as may be prescribed;

(a) to any instrument relating to shares in a society, notwithstanding that the assets of the society consist in whole or in part of immovable property; or

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

(c) to any endorsement upon, or transfer of, any debentures issued by any society.

(a) the stamp duly with which, under any law relating to stamp duty for the time being in force, instruments executed by or on behalf of a society or by an officer or member thereof and relating to the business of the society or any class of such instruments, or awards of the Registrar or his nominee or Board of Nominees under this Act, are respectively chargeable;

(b) any fee payable by or on behalf of a society under the law relating to the registration of documents and to court fees for the time being in force; and

(c) any other tax or fee or duty (or any portion thereof) payable by or on behalf of a society under any law for the time being in force, with the Government is competent to levy.

(a) any debt or outstanding demand, owing to a society by any member or past member or deceased member, shall be a first charge upon,-

(i) the crops or other agricultural produce raised in whole or in part where with or without a loan taken from the society by such member or past member or deceased member;

(ii) any cattle, fodder for cattle, agricultural or industrial implements or machinery or raw materials for manufacture, workshop, godown or place of business, supplied to or purchased by such member or past member or deceased member, in whole or in part, from any loan whether in money or goods made to him by the society; and

(iii) any movable property which may have been hypothecated, pledged or otherwise mortgaged by a member with the society and remaining in his custody;

(b) any outstanding demands or dues payable to a society by any member or past member or deceased member in respect or rent, shares, loans or purchase money or any other rights or amounts payable to such society, shall be a first charge upon his interest in the immovable property of the society.

(a) that every such member shall dispose of his produce through the society; and

(b) that any member, who is found guilty of a breach of the bye-laws or of any such contract, shall reimburse the society for any loss, determined in such manner as may be specified in the bye-laws.

(a) any person who makes an application to a society of which he is a member, for a loan, shall, if he owns any land or has interest in any land as a tenant, make a declaration in the form prescribed. Such declaration shall state that the applicant thereby creates a charge on such land or interest specified in the declaration for the payment of the amount of the loan which the society may make to the member in pursuance of the application, and for all future advances (if any) required by him which the society may make to him as such member, subject to such maximum as may be determined by the society, together with interest on such amount of the loan and advances;

(b) any person who has taken a loan from society of which he is a member before the date of the coming into force of this Act, and who owns any land or has interest in land as a tenant, and who has not already made such a declaration before the aforesaid date shall, as soon as possible thereafter, make a declaration in the form and to the effect referred to in Clause (a); and no such person shall, unless and until he has made such declaration, be entitled to exercise any right as a member of the society;

(c) a declaration made under Clause (a) or (b) may be varied at any time by a member, with the consent of the society in favour of which such charge is created;

(d) no member shall alienate the whole or any part of the land or interest therein, specified in the declaration made under Clause (a) or Clause (b) until the whole amount borrowed by the member together with the interest thereon is repaid in full:

(e) any alienation made in contravention of the provisions of Clause (d) shall be void;

(f) subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue and all claims of the land development bank in respect of its dues, in either case whether prior in time or subsequently, there shall be a first charge in favour of the society on the land or interest specified in the declaration made under Clause (a) or Clause (b), for and to the extent of the dues owing by the member on accounts of the loan;

(g) and in particular, the record of rights maintained under the settlement and survey rules for the time being in force in Tripura shall also include the particulars of every charge on land or interest created under a declaration under Clause (a) or Clause (b).

(i) any resources society, the majority of the members of which are agriculturists and the primary object of which is to obtain credit for its members, or

(ii) any society, or any society of the class of societies specified in this behalf by the Government, by a general or special order.

chapter V

Government Aid to Societies

(a) guarantee the payment of the principal or debentures issued by a society, or of interest thereon, or both, or the repayment of the share capital of a society to its members or the payment of the dividends thereon at such rates as may be specified by the Government;

(b) guarantee the repayment of loans given by a co-operative bank to a society;

(c) guarantee the repayment of the principal of, and payment of interest on, loans and advances given by the Reserve Bank of India, or the Industrial Finance Corporation of India, or any other authority constituted under any law for the time being in force; or

(d) provide financial assistance, in any other form (including subsidies), to a society.

chapter VI

Property and Funds of Societies

(a) in the State Co-operative Bank or State Bank of India.

(b) in any of the securities specified in Section 20 of the Indian Trusts Act, 1882 (II of 1882);

(c) in the shares or security bonds or debentures issued by any other society with limited liability;

[(d) In any bank or Reserve Bank regulated financial institution of its choice, or]

(e) in the postal savings bank; or

(f) to any other mode permitted by the rules, or by general or special order of the Government.

chapter VII

Management of Societies

(a) is in default to the society or any other society in respect of any loan or advance taken by him or of any other dues to the society or any other society:

(b) is interested directly or indirectly in any contract made with the society or in any sale or purchase made by the society privately or in any auction or any Contract or transaction involving financial interest;

(c) is an applicant to be adjudicated a bankrupt or an insolvent or an uncertified bankrupt or an undischarged insolvent;

(d) is employed as legal practitioner on behalf of the society or against the society or on behalf of or against any other society which is a member of the former society;

(e) has been sentenced for any office including moral turpitude, such a sentence not having been reserved and the offence pardoned and a period of five years has not elapsed from the date of expiry of the sentence;

(f) is a nominal or sympathiser member;

(g) is a person of unsound mind;

(h) is a minor;

(i) is a paid employee of the society or of the federal society to which the society is affiliated;

(j) ceases to be a member of a society and in case of federal society on cancellation or affiliation of a society of which he is a member;

(k) incurs other disqualifications as may be prescribed in the rules.

(b) In a federal society the representative or representatives of the affiliated society or societies on the committee of federal society shall cease forthwith to be a member or members of committee with the orders of winding up of such society or societies.

chapter VIII

Audit, Inquiry, Inspection and Suspension

[(ii) A primary agricultural credit society shall get its accounts audited at lease once in each year by the Registrar or the person authorized by him or a Chartered Accountant appointed by the committee.

(iv) The Registrar shall get conducted a special audit of the 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 Bank.]

(a) on the requisition of a society duly authorised by rules made in this behalf to make such requisition, in respect of one of its members, such member being itself a society, or

(b) on the application of a majority of the committee of a society, or

(c) on the application of one-third of the members of a society.

(b) If any such person refuses to produce to the Registrar or any person authorised by him under sub-section (1), any books or papers which it is his duty under Clause (a) to produce or to answer any question which is put to him by the Registrar or the person authorised by the Registrar in pursuance of sub-Clause (a), the Registrar or the person authorised by the Registrar may certify the refusal and the Registrar after hearing any statement which may be offered in defence, punish the defaulter with a penalty not exceeding five hundred rupees. Any sum imposed as penalty under this section shall, on the application by the Registrar or the person authorised by him, to a Magistrate having jurisdiction, be recoverable by the Magistrate as if it were a fine imposed by himself.

(a) satisfies the Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and

(b) deposits with the Registrar such sum as the Registrar may require as security for the cost of any inspection of the books of the society;

(a) no order of apportionment of the costs shall be made under this section, unless the society or persons or the legal representative of the deceased person liable to pay the costs thereunder; has or have been heard, or has or have had a reasonable opportunity of being heard;

(b) the Registrar shall state in writing the grounds on which the costs are appointed.

chapter IX

Procedure for Deciding Disputes

(a) a society, its committee, any past committee, any past or present officer, any past or present agent, any past or present servant or nominee, heir, or legal representative of any deceased officer, deceased agent or deceased servant of the society, or the liquidator of the society;

(b) a member, past member or a person claiming through a member, past member or a deceased member of a society or a society which is a member of the society;

(c) a person, other than a member of the society, who has been granted a loan by the society, or with whom the society has or had transactions under the provisions of Section 46, and any person claiming through such a person;

(d) a surety of a member, past member or a deceased member, or a person other than a member who has been granted a loan by the society under Section 46, whether such a surety is or is not a member of the society;

(e) any other society, or the liquidator of such a society.

(i) a claim by or against a society for any debt or demand due to it from a member or due from it to a member, past member or the nominee, heir or legal representative of a deceased member, or servant or employee whether such a debt or demand be admitted or not;

(ii) a claim by a surety for any sum or demand due to him from the principal borrower in respect of a loan by a society and recovered from the surety owing to the default of the principal borrower, whether such a sum or demand by admitted or not;

(iii) a claim by a society for any loss caused to it by a member, past member or deceased member, by any officer, past officer or deceased officer, by any agent, past agent or deceased agent, or by any servant, past servant or deceased servant, or by its committee, past or present whether such loss be admitted or not;

(iv) a refusal or failure by a member, past member or a nominee heir or legal representative of a deceased member to deliver possession to a society of land or any other assets resumed by it for breach of conditions of the assignment.

(a) when the dispute relates to the recovery of any sum including interest thereon due to a society by a member thereof, be computed from the date on which such member dies or ceases to be a member of the society;

(b) when the dispute is between a society or its committee and any past committee, or any past or present officer, or past or present agent, or past or present servant or the nominee, heir or legal representatives of a deceased officer, deceased, agent or deceased servant of the society, or a member, or past member, or the nominee, heir or legal representative of a deceased member, and when the dispute, relates to any act or omission on the part of either party to the dispute, be six years from the date on which the act or omission with reference to which arose, took place;

(c) when the dispute is in respect of any matter touching the constitution, management or business of a society which has been ordered to be wound up under Section 105, or in respect of which a nominated committee or an administrator has been appointed under Section 74, be six years from the date of the order issued under Section 105, or Section 74, as the case may be;

(d) when the dispute is in respect of an election of an office bearer of the society, be one month from the date of the declaration of the result of the election.

(b) Where a dispute has been instituted in the name of a wrong person, or where all the defendants have not been included, the Registrar or his nominee or board of nominees may, at any stage of the hearing of the dispute, if satisfied that the mistake was bona fide, order any other person to be substituted or added as a plaintiff or a defendant upon such terms as he thinks just.

(c) The Registrar, his nominee or board of nominees may, at any stage of the proceedings, either upon or without the application of either party, and on such terms as may appear to the Registrar, his nominee or board of nominees, as the case may be, to be just, order that the name of any party improperly joined whether as plaintiff or defendant, be struck out; and that the name of any person who ought to have been joined whether as plaintiff or defendant or whose presence before the Registrar, his nominee or board of nominees, as the case may be, may be necessary in order to enable the Registrar, his nominee or board of nominees effectually and completely to adjudicate upon and settle all the questions involved in the dispute, be added.

(d) Any person who is a party to the dispute and entitled to more than one relief in respect of the same cause of action, may claim all or any of such reliefs; but if he omits to claim for all such reliefs, he shall not forward a claim for any relief so omitted, except with the leave of the Registrar, his nominee or board of nominees.

(a) is about to dispose of the whole or any part of his property, or

(b) is about to remove the whole or any part of his property from the jurisdiction of the Registrar, the Registrar may, unless adequate security is furnished, direct conditional attachment of the said property and such attachment shall have the same effect as if made by a competent civil Court.

(a) on a certificate signed by the Registrar or a liquidator, be deemed to be a decree of a civil Court, and shall be executed in the same manner as a decree of such Court, or

(b) be executed according to the law and under the rules for the time being in force for the recovery of arrears of land revenue:

(b) of Section 101, the court or the Collector or the Registrar, as the case may be, may notwithstanding anything contained in any law for the time being in force, direct that the said property or any portion thereof, shall be transferred to the society which has applied for the execution of the said order, in the manner prescribed.

chapter X

Liquidation

(a) where the society has not commenced working or has ceased to work within the period as prescribed, or

(b) where the number of members has been reduced to less than ten or the amount of their deposit and share capital less than five hundred rupees.

(a) to institute and defend suits and other legal proceedings, civil or criminal, on behalf of the society, in the name of his office;

(b) to carry on the business of the society, so far as may be necessary for the beneficial winding up of the same;

(c) to sell the immovable and movable property on actionable claims of the society by public auction or private contract with power to transfer the whole or part thereof to an person or body corporate, or sell the same in parcels;

(d) to raise, on the security of the assets of the society, any money required;

(e) to investigate all claims against the society and, subject to the provisions of the Act, to decide questions of priority arising out of such claims, and to pay any class or classes of creditors in full or rateably according to the amount of such debts, the surplus being applied in payment of interest from the date of liquidation at a rate to be approved by the Registrar, but not exceeding the contract rates;

(f) to make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim, present or future, whereby the society may be rendered liable;

(g) to compromise all calls or liabilities to calls and debts and liabilities capable of resulting in debts, and all claims present or future, certain or contingent, subsisting or supposed to subsist, between the society and a contributory or alleged contributory or other debtor or person apprehending liability to the society, and all questions in any way relating to or affecting the assets on the winding up of the society, on such terms as may be agreed, and take any security for discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof;

(h) to determine from time to time, after giving an opportunity to answer the claim, the contribution to be made or remaining to be made by the members or past members or by the estate, nominees, heirs or legal representatives of deceased members, or by any officer, past officer or the estate of nominees, heirs or legal representatives of a deceased officer to the assets of the society, such contribution being inclusive of debts due from such members or officers;

(i) to issue requisitions under Section 101;

(j) to get disputes referred to the Registrar for decision by himself or his nominee or board or nominees;

(k) to determine by what persons and in what proportion the cost of the liquidation shall be borne;

(l) to fix the time or times within which the creditors shall prove their debts and claims to be included for the benefit of any distribution made before these debts or claims are proved;

(m) to summon and enforce the attendance of witnesses and to compel the production of any books, accounts, documents, securities, cash or other properties belonging to or in custody of the society by the same means and in the same manner as is provided in the case of a civil Court under the Code of Civil Procedure, 1908 (V of 1908);

(n) to do all acts, and to execute in the name and on behalf of the society, all deeds, receipts and other documents, as may be necessary to such winding up;

(o) to take such action as may be necessary under Section 19, with the prior approval of the Registrar, if there is reason to believe that the society can be re-constructed.

(a) an object of public utility and of local interest as may be recommended by the members is general meeting held under Section 12;

(b) a federal society with similar objects to which the cancelled society was eligible for affiliation or, where no federal society exists, any other society which may be notified in this behalf by the Government; and

(c) any charitable purpose as defined in Section 2 of the Charitable Endowments Act, 1890 (VI of 1890).

chapter XI

Insured Co-operative Banks

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

(b) an order for the winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in Section 13-D of the Deposit Insurance Corporation Act, 1961 (XLVII of 1961);

(c) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the bank from being conducted in a manner detrimental to the interests of the depositors, or for securing the proper management of such bank, an order shall be made for the supersession (removal) of the committee of management or other managing body (by whatever name called) of the bank, and the appointment of an administrator therefor for such period or periods not exceeding five years in the aggregate, as may, from time to time, be specified by the Reserve Bank of India; and the administrator so appointed shall, after the expiry of his term of office, continue in office until the day immediately preceding the date of the first meeting of the new committee;

(d) no appeal, revision or review shall lie or permissible against an order such as is referred to in Clause (a), (b) or (c) made with the previous sanction in writing or on the requisition of the Reserve Bank of India and such order or sanction shall not be liable to be called in question in any manner;

(e) the liquidator or the insured co-operative bank or the transferee bank, as the case may be, shall be under an obligation to repay the Deposit Insurance Corporation established under the Deposit Insurance Corporation Act, 1961 (XLVII of 1961) in the circumstances, to the extent and in the manner referred to in Section 21 of the Act.

(a) "a co-operative bank" means a bank as has been defined in the Deposits Insurance Corporation Act, 1961 (XLVII of 1961);

(b) "insured co-operative bank" means a society which is an insured bank under the provisions of the Deposit Insurance Corporation Act, 1961 (LXVII of 1961);

(c) "transferee bank" in relation to an insured co-operative bank means a co-operative bank-

(i) with which such insured co-operative bank is amalgamated; or

(ii) to which the assets and liabilities of such insured co-operative bank are transferred; or

(iii) into which such insured co-operative bank is divided or converted under the provisions of sub-section (1) of Section 17 of this Act.

chapter XII

Co-operative Land Development Banks

(a) co-operative land development banks advancing loans other than short term loans for the purposes of-

(i) land improvement and productive purposes,

(ii) the erection, re-building or repairing of houses for agricultural purposes,

(iii) purchase of agricultural lands by the agriculturists in order to constitute a basic holding.

(iv) redemption of old debts, and

(v) any other purposes as may be prescribed by the Registrar with the approval of the State Government in this behalf;

(b) any other co-operative bank permitted by the Registrar under Section 144 to function as a co-operative land development bank.

(a) construction and repair of wells (including tube wells), tanks and other works for the storage, supply or distribution of water for the purpose of agriculture, or for the use of men and cattle employed in agriculture;

(b) renewal or reconstruction of any of the foregoing works, or alterations therein, or additions thereto;

(c) preparation of land for irrigation;

(d) drainage, reclamation from rivers or other waters, or protection from floods or from erosion or other damages by water, of land used for agricultural purposes, or waste land which is cultivable;

(e) bunding and similar improvements;

(f) reclamation, clearance and enclosure or permanent improvement of land for agricultural purposes;

(g) horticulture;

(h) purchase of oil-engines, pumping sets and electrical motors for any of the purposes mentioned therein;

(i) purchase of tractors or other agricultural machinery;

(j) increase of the productive capacity of land by addition to it of special variety of soil;

(k) construction of permanent farm-house, cattle-sheds and sheds for processing of agricultural produce at any stage; and

(l) such other purposes as the Government may, from time to time by notification in the official Gazette, declare to be improvement of productive purpose for the purpose of this chapter.

(a) where debentures are issued against mortgages held, the aggregate of-

(i) the amount due on the mortgages;

(ii) the value of the properties and other assets transferred by the members to the co-operative land development bank and subsisting at such time; and

(iii) the amounts paid under the mortgages aforesaid and the unsecured amounts remaining in the hands of the co-operative land development bank or the Trustee at the time;

(b) where debentures are issued otherwise than on mortgages held, the total amount as calculated under Clause (a) increased by such portion of the amount obtained on the debentures as is not covered by a mortgage.

(a) the co-operative land development bank has been previously authorised by the State Government to exercise the powers conferred under this sub-section after hearing the objections, if any, of the mortgagor or mortgagors;

(b) notice in writing requiring payment of such mortgage money or part thereof has been served upon-

(i) the mortgagor or each of the mortgagors,

(ii) any person who has any interest in, or charge upon, the property mortgaged, or in or upon the right to redeem the same so far as is known to the bank,

(iii) any surety for the payment of the mortgaged debt or any part thereof, and

(iv) any creditor of the mortgagor who has in a suit for administration of his estate obtained a decree for sale of the mortgaged property; and

(c) default has been made in payment of such mortgage money or part thereof, for three months after service of the notice.

(a) from the mortgagor to the co-operative land development bank may be adjusted, and

(b) from any member or past member to whom the mortgagor is indebted may also be adjusted under the written authority given by such member and past member, and after holding such inquiry as may be deemed necessary.

(b) Where the property sold is in the occupancy of a tenant or other person entitled to occupy the same, and a certificate in respect thereof has been granted under the foregoing sub-section, the Collector shall, on the application of the purchaser and after notice to such tenants or other persons, order the delivery to be made by affixing copy of the certificate of sale in a conspicuous place on the property and proclaiming to the occupant by beat of drum or other customary mode at some convenient place, that the right, title and interest of the mortgagor have been transferred to the purchaser.

(a) from the borrower-as if they were arrears of land revenue due by him;

(b) out of the land for the benefit of which the loan has been granted-as if they were arrears of land revenue due in respect of that loan;

(c) from a surety (if any)-as if they were arrears of land revenue due by him;

(d) out of the property comprised in the collateral security (if any)-according to the procedure for the realisation of land revenue by the sale of immovable property other than the land on which the revenue is due.

chapter XIII

Offences and Penalties

(a) any member of a society transfers any property or interest in property in contravention of sub-section (2) of Section 49 or any person knowingly acquires, or abets in the acquisition of, such property; or

(b) any employer and every director, manager, secretary or other officer or agent acting on behalf of such employer, who without sufficient cause, fails to comply with sub-section (2) of Section 51; or

(c) a committee of a society or an officer or member thereof fails to invest funds of such society in the manner required by Section 62; or

(d) any person, collecting the share money for a society information, does not within a reasonable period deposit the same in the co-operative bank, or postal savings bank; or

(e) any person, collecting the share money for a society in formation, makes use of the funds so raised for conducting any business or trading in the name of a society to be registered or otherwise; or

(f) a committee of a society, or an officer or member thereof, fails to comply with the provisions of sub-sections (2), (3) or (4) of Section 71; or

(g) any officer or member of a society who is in possession of information, books and records, fails to furnish such information or produce books and papers, and records, or give assistance to a person appointed or authorised by the Government or the Registrar under Sections 70, 74, 78, 79, 81, 82, 86, 96 or 106; or

(h) any officer of a society fails to hand over the custody of books, records, cash security and other property belonging to the society of which he is an officer to a person appointed under Sections 70, 74, or 106; or

Note. - For the purpose of this clause, the word 'officer' shall include an outgoing member of the committee and the paid servant of a society;

(i) a committee of a society with a working capital of fifty thousand rupees or more, or any officer or a member thereof, fails without any reasonable excuse to give any notice, send any return or document, do or allow to be done, anything which the committee, officer or member is by this Act required to give, send, do or allow to be done or comply with orders made under Section 75; or

(j) a committee of a society or an officer or member thereof wilfully neglects or refuses to do any act, or to furnish any information required for the purpose of this Act, by the Registrar, or any other person duly authorised by him in writing in this behalf; or

(k) a committee of a society or an officer or member thereof wilfully makes a false return or furnishes false information or fails to maintain proper accounts; or

(l) any officer, member, agent or servant of a society fails to comply with the requirements of sub-section (4) of Section 79; or

(m) any officer or a member of a society wilfully fails to comply with any decision, award or order passed under Section 95; or

(n) a member of a society fraudulently disposes of property over which the society has a prior claim or a member or officer or employee or any person disposes of his property by sale transfer, mortgage, gift or otherwise with the fraudulent intention of evading the dues of the society; or

(o) any officer of a society wilfully recommends or sanctions for his own personal use or benefit or for the use or benefit of a person in whom he is interested, a loan in the name of any other person; or

(p) any officer or member of a society destroys, mutilates, tampers with, or otherwise alters, falsifies or secrets or is privy to the destruction, mutilation, alteration, falsification or secreting of any books, papers, or securities or makes or is privy to the making of any false or fraudulent entry in any register, books of account or document belonging to the society; or (q) any officer or member of a society or any person does any act declared by the rules to be an offence.

(a) if it is an offence under Clause (a) of that section, with imprisonment for a term which may extend to six months or with fine which may extend to five hundred rupees, or with both;

(b) if it is an offence under Clause (b) of that section, with imprisonment for a term which may extend to one month, or with fine which may extend to five hundred rupees, or with both;

(c) if it is an offence under Clause (c) of that section, with fine which may extend to five hundred rupees;

(d) if it is an offence under Clause (d) of that section, with fine which may extend to five hundred rupees;

(e) if it is an offence under Clause (e) of that section, with imprisonment for a term which may extend to one year, or with fine, or with both;

(f) if it is an offence under Clause (f) of that section, with fine which may extend to two hundred and fifty rupees;

(g) if it is an offence under Clause (g) of that section, with fine which may extend to five hundred rupees;

(h) if it is an offence under Clause (h) of that section, with fine which may extend to five hundred rupees;

(i) if it is an offence under Clause (i) of that section, with fine which may extend to five hundred rupees;

(j) if it is an offence under Clause (j) of that section, with imprisonment for a term which may extend to one month, or with fine which may extend to five hundred rupees, or with both;

(k) if it is an offence under Clause (k) of that section, with imprisonment for a term which may extend to one year, or with fine which may extend to two thousand rupees, or with both;

(l) if it is an offence under Clause (l) of that section, with fine which may extend to one hundred rupees;

(m) if it is air offence under Clause (m) of that section, with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both;

(n) if it is an offence under Clause (n) of that section, with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees or with both;

(o) if it is an offence under clause (o) of that section, with imprisonment for term which may extend to two years, or with fire or with both ;

(p) if it is an offence under Clause (p) of that section, with imprisonment for a term which may extend to two years or with fine or with both;

(q) if it is an offence under Clause (q) of that section, with fine which may extend to two hundred and fifty rupees.

chapter XIV

Appeal, Review and Revision

(a) proof of facts by affidavit,

(b) summoning and enforcing the attendance of any person and examining him on oath.

(c) compelling discovery or the production of documents, and

(d) issuing commissions for the examination of witnesses.

(a) if made or sanctioned or approved by the Registrar or the Additional or Joint Registrar on whom powers of the Registrar are conferred-to the Government;

(b) if made or sanctioned by any person Other than the Registrar, or the Additional or Joint Registrar on whom the powers of the Registrar are conferred-to the Registrar.

chapter XV

Miscellaneous

(a) any amount due under a decree or order of a civil Court obtained by a society;

(b) any amount due under a decision, award or order of the Registrar, or any officer subordinate to him and empowered by him in this behalf, arbitrator or Liquidator or Tribunal;

(c) any sum awarded by way of costs under this Act;

(d) any sum ordered to be paid under this Act as a contribution to the assets of the society, together with interest, if any, due on such amount or sum and costs of process by the attachment and sale or by sale without attachment of the property of the person or a society against whom such decree, decision, award or order has been obtained or passed;

(e) any amount due under a certificate granted by the Registrar under sub-section (1) or (2) or Section 104 or under sub-section (1) of Section 138.

(a) within the time provided in this Act, the rules or the bye-laws, or

(b) where no time is so provided, within such time, having regard to the nature and extent of the action to be taken, as the Registrar may specify by a notice in writing.

(a) the registration of a society or its bye-laws or the amendment of its bye-laws, or the dissolution of the committee of a society or the management of the society or dissolution thereof; or

(b) any dispute required to be referred to the Registrar or his nominee, or board of nominees, for decision; or

(c) any matter concerned with the winding up and dissolution of a society.

(i) subject to the provisions of Section 3, prescribe the delegation of powers vested in the Registrar to persons appointed to assist the Registrar;

(ii) prescribe the forms to be used and the conditions to be complied with in the making of applications for the registration of a society under Section 8 and the procedure in the matter of such application;

(iii) prescribe the matters in respect of which a society may make or the Registrar may direct a society to make bye-laws and the procedure to be followed in making, altering and abrogating bye-laws and the conditions to be satisfied prior to such making, alteration or abrogation;

(iv) prescribe the procedure to be followed and conditions to be observed for change of name or liability, amalgamation, transfer, division, conversion or reconstruction of society;

(v) prescribe the forms of, and procedure for an application under Section 19 and the procedure for reconstruction of a society under that section;

(vi) prescribe the conditions to be complied with by a person applying for admission or admitted as a member and provide for the election and admission of members and the payment to be made and the interests to be acquired before the exercise of the right of membership;

(vii) prescribe in the case of a federal society or class of federal societies the proportion of individual members to society members in such society or class of societies and the proportion of individual members to society members in the committee of such society or class of societies;

(viii) subject to the provisions of Section 28, prescribe the maximum number of shares or portion of the capital of a society which may be held by a member;

(ix) prescribe the procedure for the admission of joint members, members of a joint or undivided Hindu family, and minors and persons of unsound mind inheriting the share or interest of deceased members and provide for their rights and liabilities;

(x) provide for the withdrawal, removal or expulsion of members and for the payments to them and for the liability of past members and the estate of deceased members;

(xi) prescribe the conditions and procedures for the transfer of shares or interest;

(xii) provide for the nomination of a person to whom the share or the interest of a deceased member may be paid or transferred;

(xiii) provide for ascertaining the value of a share or interest of a past member or deceased member;

(xiv) prescribe the payments to be made and the conditions to be complied with by members applying for loans, the period for which loans may be made, and the amount which may be lent to an individual member;

(xv) provide for the inspection of documents in the Registrar's office and the levy of fee for granting certified copies of the same;

(xvi) provide for the procedure for registering the address of a society and the change of its address;

(xvii) provide for the formation and maintenance of a register of members, and where the liability of members is limited by shares, of a register of shares and a list of members;

(xviii) provide for securing that the share capital of any society shall be variable in such a way as may be necessary to secure that the share shall not appropriate in value and that necessary capital be available for the society as required;

(xix) provide for the procedure to be adopted by a society with limited liability in order to reduce its share capital;

(xx) prescribe the period for, and terms upon which Government aid may be given to societies and terms under which Government may subscribe to the share capital of and guarantee the payment of the principal of and interest on debentures issued by societies;

(xxi) regulate the manner in which funds may be raised by a society or class of societies by means of shares or debentures or otherwise, and the quantum of funds so raised;

(xxii) prescribe the limits for loans to be granted by a society or class of societies against different classes of securities or without security and the procedure for granting loans;

(xxiii) prescribe the manner of recalling a loan;

(xxiv) prescribe the limits for granting credit by a non-credit society or a class of non-credit societies;

(xxv) prescribe the prohibitions and restrictions subject to which societies may trade or transact business with persons who are not members;

(xxvi) prescribe the conditions on which any charge in favour of a society shall be satisfied and the extent to which and the order in which the property charged shall be used in its satisfaction;

(xxvii) provide for giving reasonable notice of the charge under Section 50;

(xxviii) prescribe the procedure by which a society shall calculate and write-off bad debts;

(xxix) prescribe the sums which, in addition to those referred to in sub-section (1) of Section 57 shall be deducted from profits before arriving at the profit for the purpose of sub-section (2) of Section 57;

(xxx) provide for the formation and maintenance of reserve fund and the objects to which such fund may be applied and for the investment and use of any fund including reserve fund under the control of a society;

(xxxi) prescribe the conditions under which profits may be distributed as dividend and bonus among the members and non-members of a society;

(xxxii) prescribe the rate at which a society shall contribute towards the educational fund of the federal society under Section 60;

(xxxiii) define the co-operative purpose for which a society shall, under Section 61 utilise its fund;

(xxxiv) prescribe the mode of investment of funds of a society under Section 62 and the proportion of investment in any security or class of securities;

(xxxv) provide for the payment of contribution to any provident fund which may be established by a society for the benefit of officers and servants employed by if and for the administration of such provident fund;

(xxxvi) prescribe the procedure and conditions for the exercise by a federal society to the powers conferred by this Act;

(xxxvii) provide for general meetings of the members, for the procedure at such meetings and the powers to be exercised by such meetings;

(xxxviii) prescribe the conditions on which a member of a society may be disqualified from voting;

(xxxix) provide for the appointment, suspension of the members of the committee and other officers and for the appointment of administrator under Section 74 and prescribe procedure to be followed at the meeting of the committee and for the powers to be exercised and the duties to be performed by the committee, administrator and other officers;

(xl) prescribe the qualifications for members of the committee and employees of a society or class of societies and the conditions of service subject to which persons may be employed by societies;

(xli) prescribe the returns to be submitted by a society to the Registrar and provide for the persons by whom and the form in which such returns shall be submitted;

(xlii) provide for the persons by whom and the form in which copies of documents and entries in books of societies may be certified and the charges to be levied for the supply of copies thereof;

(xliii) provide for the procedure to be adopted by the Registrar in the case where the taking of possession of books, documents, securities, cash and other properties of a society, or of a society the affairs of which have been ordered to be wound up by the Registrar or by a person entitled to the same, is resisted or obstructed;

(xliv) provide for the procedure to be adopted for taking possession of books, documents, securities, cash and other properties of a society by a person acting under Sections 79, 81 and 82 in cases where misappropriation of funds, breach of trust or fraud has been committed or where it is suspected or apprehended that the books, document, securities, cash and other properties are likely to be tampered with or destroyed or removed;

(xlv) prescribe the accounts and books to be kept by a society or class of societies;

(xlvi) prescribe the procedure for conducting an audit, the matters on which the auditor shall submit a report, the form in which the statement of accounts shall be prepared for his audit, the limits within which the auditor may examine the monetary transactions of a society, the form or audit, memorandum and report and the charges, if any, to be paid by a society for audit;

(xlvii) prescribe the procedure for appointment of auditors under Section 79;

(xlviii) prescribe the form for the rectification of defects discovered in the course of audit, inspection or inquiry;

(xlix) prescribe the procedure and principles for the conduct of enquiry under Section 81 and inspection under Section 82;

(l) prescribe the procedure for apportioning the cost of inquiry and inspection and for assessing damages against delinquent promoters under Section 88 and for recovery of cost and damages;

(li) prescribe the manner in which appointment shall be made and control exercised by, and the number of persons comprising, and functions to be performed by the authority constituted under Section 90, the manner of election and nomination of such persons, the fees to be paid to such authority and the manner of such payment and the procedure for and the method of calculating any cost, charges or expenses required to be levied under this Act or the rules;

(lii) provide for appointment of the Registrar's nominee or board of nominees, procedure to be followed in proceedings before the Registrar or his nominee or board of nominees and for fixing and levying the expenses for determining the dispute and for enforcing the decision or award in such proceedings;

(liii) prescribe the form in which a dispute shall be referred to the Registrar;

(liv) provide for the issue and service of processes and for proving of service thereof;

(lv) provide for the investigation of claims and objections that may be preferred against any attachment effected by the Registrar;

(lvi) prescribe the procedure for and the method of recovery of any sum due under this Act or the rules;

(lvii) prescribe the procedure to the followed for the custody of property attached under Section 97;

(lviii) prescribe the procedure to be followed in the execution of awards ;

(lvix) prescribe the manner, in which any property shall be delivered to, and the terms and conditions subject to which such property shall be held by, a society under Section 103;

(lx) prescribe the procedure for attachment and sale of property for the realisation of any security given by a person in the course of execution proceedings;

(lxi) prescribe the procedure and conditions for the exercise of the powers conferred under Section 108 and the procedure to be followed by a Liquidator and provide for the disposal of surplus assets;

(lxii) prescribe the matters in which an appeal shall lie from the order of a Liquidator appointed under Section 106;

(lxiii) prescribe the procedure and conditions for the issue, redemption, re-issue, transfer, replacement or conversion of debentures issued by a society to which chapter XII is applicable;

(lxiv) prescribe the maximum amount of principal, the rate of interest and other conditions for the guarantee of debentures issued by a society to which chapter XII is applicable;

(lxv) prescribe the qualifications and methods of appointment of an officer to effect sale under Section 133 and the powers and functions which such an officer may exercise;

(lxvi) prescribe the appointment of a receiver of the produce and income of the mortgaged property for sale under Section 133, the conditions in which he may be appointed or removed, the powers and functions which he may exercise and the expenses of management and renumeration which he may receive;

(lxvii) prescribe the circumstances in which action may be taken by a co-operative land development bank against a mortgagor under sub-section (2) of Section 133;

(lxviii) prescribe, in case of sale of immovable property under chapter XII-

(a) the procedure for proclamation and conduct of the sale and the conditions on which an attempt of sale may be abandoned,

(b) the method of calculating the expenses incidental to the sale or attempted sale.

(c) the procedure for the receipt of deposit and disposal of the proceeds of sale.

(d) the procedure for a re-sale if an attempted sale is abandoned or the purchase money is not deposited within the prescribed time and the penalty to be levied against the purchaser who fails so to deposit the purchase money.

(e) the form and method of disposal of money by a co-operative land development bank under Section 135.

(f) the form of sale certificate under Section 136.

(g) the procedure for the delivery of the property purchased by the purchaser under Section 136.

(h) the form of the notice referred to in Section 142, and

(i) the fee payable for the service of such notices and the manner of serving such notices on, and of the transmitting landlord's fee, to the landlord named in such notices;

(lxix) prescribe the time within which and the procedure according to which property purchased by a co-operative land development bank at a sale of immovable property under chapter XII shall be disposed of by the bank;

(lxx) prescribe the procedure to be followed in presenting and disposing of appeals;

(lxxi) prescribe the qualifications of the members of the Tribunal;

(lxxii) prescribe, in the case of appeals lying to the Government, the authority to which power of hearing appeals may be delegated;

(lxxiii) prescribe the method of communicating or publishing any order, decision or award required to be communicated or published under this Act or the rules;

(lxxiv) provide that the contravention of any of the rules shall be an offence under this Act; and

(lxxv) provide for all other matters expressly required or allowed by this Act to be prescribed by rules.