(1) In the trial of offences by the Metropolitan Magistrate, it shall be presumed until the contrary is proved that any officer or employee of a co-operative society -
(a) who draws the amounts from the financing institution and fails to properly disburse or account for it, has misused or misappropriated the amounts;
(b) who is responsible for the custody of books and properties or who is in actual possession thereof, fails to produce the same on requisition by the Registrar or any person authorised by him, has wilfully withheld the same;
(c) who makes any false entries or manipulates or alters the account books of the co-operative society, has wilfully committed the said act in order to cause loss or damage to the co-operative society;
(d) who misuses the properties of the co-operative society in contravention of the provisions of this Act and the rules made thereunder or the bye-laws of the co-operative society has done so, for his personal benefit;
(e) who executes any documents or enters into an agreement for sale or purchase of the land, plots, flats, etc., in contravention of the provisions of the registered bye-laws of the co-operative society, has done so for his personal benefit and in order to cause loss to the members of the co-operative society.
(2) Any officer or employee of a co-operative society who issues any receipt shall be deemed to have issued the same in the name of the co-operative society and shall be responsible to account for the same.
(3) Notwithstanding the criminal liability, the officer or employee of a co-operative society shall be responsible to make good the loss caused to the co-operative society by committing such offences and the same shall be recovered as arrears of land revenue by the Registrar or the person authorised by him from the person responsible for causing such loss or his legal heirs or any person who has acquired the properties from such person or with the assistance of such person.
Presumption as to statements.
123. Where any member, officer or employee of a co-operative society has made a statement during the audit under section 60, or inspection under section 61, or inquiry under section 62, or inspection of debtor institution under section 63, or proceedings under section 66 and the statement is recorded by the Registrar or the person authorised by the Registrar in exercise of their powers conferred on them under this Act, the court shall presume that the statement was so recorded by the Registrar or the person authorised by him as a statement within the meaning of the Indian Evidence Act, 1872 (Act 1 of 1872).
Address of co-operative society.
124. Every co-operative society shall have an address registered in the manner prescribed to which all notices and communications may be sent and shall send to the Registrar notice of every change thereof within thirty days of such change.
Copy of Act, rules and bye-laws, etc. to be open for inspection.
125. Every co-operative society shall keep a copy of this Act, the rule and its bye-laws and also a list of its members, open to inspection free of charge at all reasonable times at the registered address of the co-operative society.
Power to exempt co-operative societies from conditions as to registration.
126. Notwithstanding anything contained in this Act, the Government may, by general or special order and subject to such conditions, if any, as it may impose, exempt any co-operative society or class of co-operative societies from any of the requirements of this Act as to registration.
Power to exempt co-operative societies from the provisions of the Act.
127. The Government may, by general or special order, to be published in the official Gazette, exempt any co-operative society or class of co-operative societies from any of the provisions of this Act, or may direct that such provisions shall apply to such co-operative society or class of co-operative societies with such modifications as may be specified in the order.
Officers and employees to be public servants.
128. The Registrar or any person authorised by him to recover any amount or to execute any orders or decisions taken under any provisions of this Act and every officer and employee of the co-operative society shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860) Notice necessary in suits.
129. No suit shall be instituted against a co-operative society or any of its officer in respect of any act touching the business of the co-operative society until the expiration of ninety days next after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left.
Companies Act not to apply.
130. The provisions of the Companies Act, 1956 (1 of 1956) shall not apply to cooperative societies.
Saving of existing co-operative societies.