MINISTRY OF HOME AFFAIRS NOTIFICATION New Delhi, the. 18th April 1959 G.S.R, 464.—In exercise of the powers conferred by section 2 of the Union Territories (Laws) Act, 1FS0 (30 of 1050), the Central Government hereby extends with effect on and from the 1st May. 1959, to the Union Terr i tory of Ma'nipur the Assam Cooperative Societies Act. 1949 (Assam Act No. 1 of 1950). as at present.
in force m the State of Assam, subject to the following modifications, namely Modifications t
1. Throughout the Act, unless otherwise directed by this notification,
(a) for the words "State, Government" and "Government", the words "Chief Commissioner of Manipur" shall be substituted;
(b) for the word "S+ate" (except where it occurs in the expression 'State Government ' ) , the words "Union ter r i tory" shall be substituted;
(c) for the word "Assam" (except in the Ions, title, preamble and short t i t le) , the word "Manipur" shall be substituted.
2. In section 1, sub-section (3) shall be omitted.
3. In sub-section (3) o." section 10, in the first sentence, for the words "four eopies", the words "three copies" shall be substituted.
4. In sub-section (3) of section 31, the, word "Government" in the first three places shall s tand unmodified.
5. In sections 3(2), 35, 48, 51, 64(1), 80 and 95, the word "Government" (except 'vhere it occurs m the expression 'State Government ' ) , shall stand unmodified.
6. In sub-section (1) of section 88, for the words and figures- "Co-operative Societies Act, 1912", the words and figures "Manipur Co-operative Societies Act 1947", shall b e substituted.
"V, In section 89, after the words and figures "Co-operative Societies Act, 1912" in the two places where they occur, the words "or Manipur Co-operative Societies Act, 1947" shall be inserted.
8. In section 90, for the words and figures "Indian Companies Act, 1913", the words and figures "Companies Act, 1956", shall be substituted.
9. Sub-section (2) of section 83, section 99, section 101 and Schedule B shall be.
omitted.
10. In Schedule A—
(a) after the words, figures and brackets "Assam Co-operative Societies Act, 19491 (Act I of 1950)," in the threei places where they occur, the words "as extended to Manipur" shall be inserted;
(b) after the words, figures and brackets "Assam Land and Revenue Regu lation, 1886 (Regulation I of 1886)", the words "as extended to Manipur" shall be inserted.
ANNEXURE The Assam Co-operative Societies Act, 1949, as extended to Manipur.
ASSAM ACT I OF 1950 THE A S S A M CO-OPTATIVE SOCIETIES ACT 1949 An Act to facilitate the formation and working of Co-operative societies and t o consolidate and amend the law relating to Co-operative Societies in the Province of. Assam.
A'S .
2_'reamble.—Whereas it is expedient further to facilitate the formation and ofing of Co-operative Societies for the purpose o ' thrift, self-help, mutua l aid "eating the quality of credit-worthiness among agriculturists artisans and (°rsons wi th common economic needs so as to br ing about a higher s tandard sectioi section ' r1 of living, bet ter business, better methods of production, equitable distribution a W exchange and for that purpose to consolidate and amend the law relating to Co operative, Societies in the Province of Assam. It is hereby enacted as follows— ,
CHAPTER I I PRELIMINARY j i. Short title and extent.—(I j This Act may be called the Assam Co-operative Societies Act, 1949.
(2) It extends to the whole of the Union territory of Manipur.
2. Definitions.—In this Act, unless there is anything repugnant in the subject or context:— fa) "Administrative Council" means a body intermediary between a Managing Body and the General Assembly of a registered society.
(b) 'Affiliating Society" means the registered society of which a part icular registered society is a member and 'Affiliated Society" means the part icular society which is a member of the affiliating'society;
(c) '"Arbitrator* means a person appointed under the provisions of r~4s -- Act to decide any dispute referred to him; v '"
(d) ' A u d i t Officer" means a person appointed under the provisions of this Act to audit t h e . accounts of registered society;
(e) "Bye-law" refers to the registered bye-laws for the t ime being in force * and includes a registered amendment of bye-laws;
(f) "Co-operative Year" means the period beginning and ending on such. \ dates as may be fixed by the Registrar for the purpose of drawing up I the balance sheets of registered societies; ,
(g) "Co-operative Demand Certificate" means a certificate as defined in Ja section 83; '¥
(h) "Employee" means a person, not being an office-bearer, employed by s \ registered society on a salary or similar form of remuneration, other than advance patronage dividend or payment for goods sold to or -., through such society; i ' .M (!) "General Assembly" means the supreme body of a registered society as defined in section 31; --^...
(j) "Managing Body" means the body to which the management af'^'he h affairs of a registered society is directly entrusted and does not fi include the Administrat ive Council. v.
(k) "Member" means a person admitted to membership after registration ' .[• in accordance wi th the bye-laws and rules of the society and includes |< a promoter;
(1) "Office-Bearer" means a member duly elected by the appropriate! body of a registered society, according to its bye-laws, to any office of such society, including the. office of President, Chairman, Vice-President, Vice-Chairman, Secretary, Managing Director and Treasurer; provided * that any officer' appointed by Chief Commissioner of Manipur to hold J?
charge of any -office of a registered society shall be deemed to be an office-bearer unless specifically stated • to the contrary;
(m) "Prescribed" means prescribed by rules;
(n) "Promoter" means any eligible person or registered society signing tt." , ^ i application for registration of a society; • |
(o) "Registered Society" means a Co-operative Society registered or deemed >:
to have been, registered under this Act and includes a society formed after amalgamation of such two or more societies or by division of a "| such an existing society; jg
(p) "Registrar" means a person appointed to perform the duties of a . I Registrar of Co-operative Societies under this Act; p
(q) "Rules" means rules made under this Act; and - |
(r) "Signature" includes the thumb-impression of an illiterate person.
CHAPTER II J - M y ,r ' REGISTRATION OF SOCIETIES . m
3. The "Registrar.— (1) The Chief Commissioner of Manipur may appoint a person to be Registrar of Co-operative Societies for the Union terri tory or any portion of it for the registration, supervision, assistance, counsel and control p® registered societies and for the development of the co-operative movement and control over all co-operative education and with such other powers and responsibilities as may be provided under this Act or rules or bye-laws framed thereunder.
(2) The Chief Commissioner of Manipur may also appoint persons to assist the Registrar and may by general or special order, in writ ing, delegate to any such persons or to any other Government Officer all or any of the powers of the Registrar under this Act.
(3) The Chief Commissioner of Manipur may also appoint non-official helpers with such designations and functions as prescribed to aid in the organisation of Co-operative Societies.
4. Societies which may be registered.—Subject to the provisions hereinafter contained a society which has as its chief object, the promotion of the economic interests and general welfare of its members in accordance with co-operative principles, or a society established with the object of facilitating the operatiens of such a society including a society formed by the division of an e x i t i n g registered society or amalgamat ion of existing two or more societies, may be registered w ide r this Act wi th or wi thout limited liability:
Provided tha t unless the Chief Commissioner of Manipur by general or special order otheirwise directs:—
(1) The liability of a society of which a member is a registered society shall be , linu'ted.
(2) The liability of a society of which the pr imary object is the creation of xunds to be lent to its members and of which the majori ty of the members axe agriculturists or artisans, and of which no member is a registered society, shall be unlimited and the members of such a society shall on its liquidation, be jointly and severally Har^i for and in respect of, all obligations of such a society:
Provided fur ther tha t no society shah be registered if in the opinion of the Registrar, its declared objects are unlikely to be, achieved or if it is economically unsound or if it m a y have an adverse effect upon any registered society or the cooperative movement as a whole,
5. Age qualification of a member.—No person may be an individual member of a registered society unless he is above eighteen years of age; provided that the bye-laws of a society may prescribe a higher min imum age.
o. Conditions of registration.—(1) No society, other than a society of which a r; ;;^aber is a registered society shall be registered under this Act which does not consist of at least ten eligible persons and, in cases where the pr imary object of the society is the creation of funds to be lent to its members , unless such persons reside in the same town, village or in the same Panchaya t Area.
C2) The word "Limited" shall be the last word in the name of every society with limited liability registered under this Act.
7. Restrictions on acquisition of shares hi a society.—(1) No member of a registered society shall hold more than such portion of the share capital of the society as may be prescribed by the rules, or the bye-laws of the society.
(2) No m e m b e r shall be allowed to acquire an additional share until he has paid in full the value of the whole or that portion of his share-holding which he is required to pay in' accordance with the bye-laws of his society.
., 8. Power of Registrar to decide certain questions.—All disputes regarding membership for the purpose of the formation, ragistratiop or continuance of a society under this Act shall be decided by the Registrar.
9. Change of liability.—(1) Subject to the proviso to section 4 and to any rules made in this behalf, a registered society may, wi th the previous sanction of the Registrar, change its liability from limited to unlimited -e£. from unlimited tc limited:— fl"V*
Provided that—
(i) The society shall give notice in writ ing of its intention to change its liability to all its members and creditors.
- (ii) Any m e m b e r or creditor shall, notwithstanding any bye-law or contract to the contrary, have the option of wi thdrawing his shares, deposits or loans, as the case may be, within three months of the service of such notice on him and the change shall not take effect unti l all such claims have been satisfied; and
(iii) Any m e m b e r or creditor, who does not exercise his option within the period aforesaid, shall be deemed to have assented to the change, 4
(2) Notwithstanding anything contained in the, proviso to sub-section (1) t'k.
Change shall take effect at oncf if all the members and creditors assent thereto.
(3) The registrar shall register the amendment of the bye-laws consequent oi.
the change of l iabi l i ty; provided that no person who ceases to be a member of t he society before such amendment is registered shall be adversely affected by the change of liability.
10. Application for registration.—(1) An application for registration shall be ias.de to the Registrar in the prescribed Form.
(21 The application shall be signed—
(a) in the case of a society of which no promoter is a registered society, by a t least ten eligible persons; and (hi in the case of a society of which at least one promoter is a registered W society l y a duly authorised person on behalf of such registered society and at least one other individual promoter or one other duty authorised person on behalf of another registered society.
(3) The application shall be accompanied by three copies of the proposed byelaws of the society signed on behalf of the promoters by the president of the ffieuralgeneral meeting. Promoters by whom or on whose behalf, such apphcation is" m a d e ^ h a U furnish such information in regard to the society.as f^ Registrar may require and they shall be liable to the full extent of the sh^f t money which they have under taken to subscribe with effect from the, date of registration of the society.
11 Registration.—(1) The Registrar shall decide all questions as to whether the, applfcation complies wi th the provisions of this Act and rules thereunder and whether the objects of the society are in accordance wi th section 4.
(2) When he is satisfied that the application is in order under sub-section U ) and the proposed bye-laws are not contrary thereto he may register the society and its bye-laws; provided tha t the Registrar shall have powers to register the bye-laws with such modifications as he thinks are necessary to bring about urn-.
ihrmity in the main wi th t he provisions of the, bye-laws of societies which have similar objects or functions,
(3) The Registrar shall endorse the bye-laws in token of registration. Each.
society shall have a copy of its bye-laws so endorsed.
(41 If the Registrar refuses to register a society or an amendment of the byelaWs of a registered society he shall record his reasons in writing and communicate these reasons and his decision to • the promoters or the Secretary of a r e g i s t e r ^ society by a registered letter to their office. The Registrar may at any.-fltfie review his orders in this respect.
12 Evidence of registration.—A certificate of registration signed by the regis t rar shall be issued to the society and shall be conclusive evidence that the Co operative Society duly registered under this Act and that its bye-laws are as attached to the certificate, unless it is proved that the registration of the SPC1??Z has been cancelled or that amended bye-laws have been registered or that the society's copy of the crtificate or bye-laws has been tampered with.
13 Amendment of the bye-laws of a registered society.—(1) No amendment of the bye-laws of a registered Society, whether by way of addit ion alteration, omis sion, rescission or change of name shall be valid until such amendment has been registered under this Act.
(2) Every proposal for such amendment shall have to be approved by a resolu tion at a meeting of the General Assembly in accordance with the bye-laws of the societv and be forwarded within a month from the date of the resolution to We Registrar; and if the Registrar is satisfied that the proposed amendment is not contrary to the provisions of this Act or rule's, he shall, unless for reasons to be recorded in writ ing he considers fit to refuse, register the amendment.
(3) When the Registrar registers an amendment of the bye-laws of a registered society, he shall issue to the society copy of the amendment certified by him.
which shall be conclusive evidence that the same has been duly registered, unless it is proved that the registration of the society has been cancelled or that further amendments have been registered or that the society's copy of the amendments have been tampered with. The amendment shall be binding upon the society with pffect from the date of registration.
14 Power of Registrar or affiliating society to direct amendment of bye-la^jt or adoption of rules of procedure.—(1) (i) When it appears to the Registrar that an amendment of the bye-laws of a registered society is necessary in the interests of such society or of the co-operative movement as a whole or for the purpose of bringing about uniformity in the main with the provisions of the bye-laws of socie ties which have similar objects or functions, he may, by an order in writing, direct http://ias.de sw ^ society to amend its bye-laws in accordance with the amendment drafted a n i forwarded to the society by him within such time as he may speciij m tne oraei .
• « n If the society fails to make such amendment within the time specified tiie L £ a : S a U after giving the society an opportunity of representing its case make s u c h a n endment himself and register the same. The Registrar stud then forward a copy thereof to the society, together with a certificate signed by him which shall be effective as prescribed in section 16(6).
/•••\ TU^ TJoo-ictmr shall not register any amendment of the bye-laws of a tne degree of control of the Chief Commissioner of Mampur 01 of the Registrar as already provided for in the bye-laws.
(iv) The Registrar may require any registered society to frame rules of pro cedure under ibf bye-laws to govern any par t of its business and to send such rules to him for prior approval.
m m w h e n it appears to an affiliating society tha t an amendment of the l I & ^ ^ ^ S ^ ftft Sal 5WSS6-5-J2SS3 of the bye-laws.
fin If the society fails to implement the suggestion within the time specified.
men? h a ? b e e / S t o r e d and such amendment 'shall thereupon be binding upon the society and its members.
15. Division and amalgamation of s o c i e t i e s . - ( l ) ( i ) ^ \ * ^ % £ ^ l may, at a meeting of its. General Assembly **™^^%£T ^/™£^> £**£* 5 . g ? ^ J W i ^ f f i , f f & £ £ & £ £ £ & £ with a copy of the proposed resolution.
societies with draft new bye-laws.
,m) A copy of the « J u « o n shall be esht t= t h ^ e j i s t r ^ within thirty i g » 5 & S S S f f « ^ l 5 S ^ « S f 3 ? « S S S shall he c i r c l e d a ™ n e tne members and creditors of the society.
nv> Notwithstanding any b^lawfe to * e e o n ^ y . W m g g * «f g j J g g ;
ana notwithstanding any agreement to the conU-ary^ any c ^ may by notice given to ? ° f ^ ^ ^ ^ ^ n o ! ^ become a member of any of S * J S 3 £ andafn e i s e ^ ^ t o f h f ^ t e ^ t U to demand a return of the amount due to him.
S S A f f i T l least 'Mteen 'dayf S S r V t i c e with the ase.da of the meetine shall be given to all members of the society.
f*\-H ih0 rpneral Assembly decides by a three-fourth majority finally to (vi) If the Ueneiai /^seniui, a r , D r o v e s of the decision, the members, who * # * * ^ S f S f f i 1 h ? n ? w § " 5 S p 3 S ^ S S J subscribing to.the new draft will constitute each Of the ^ ^ v v * ^ f Q r r e g i s t r a t i o n o f the new g S S Z S f f f f S & S ? S f S i s t e r the societies under section 11.
clause (iv).
6 <ix) The Registration of the new societies shall be a sufficient conveyance i ! vest the assets and liabilities of the orginal society according to the aforesaid resolution in the new societies.
f.2) (i) Two or more registered 'societies may. at a meeting Gl their respective'4*''- General Assemblies specially convened for the purpose, by giving at least ' fifteen clear days notice to the respective members of the societies, resolve to amalgamate into one society by aaoptaing common by-laws, " '
(ii) A copy of such resolution of ech society shall be circulated forthwith among all members and creditors thereof. "" "
(iii) Notwithstanding any bye-laws to the contrary, any member of a n - such societies and, notwithstanding any agreement to the contrary, any creditor cf any such [societies, may within a period of thir ty days from the receipt of the a foresaia resolution, intimate his intention not to become a member of the new society in the case of a member, and to demand a return of the amount due to hhm in ' the case of a creditor. ' | (iv) After the expiry 0£ ninety days from the date of the aforesaid resolution.
a. joiiu meeting of the members of such societies shall be convened t 0 decide finally the aforesaid resolution. " ""'"
(v) At least fifteen clear days' notice shall be given to all the members o^ the societies If at such meeting the aforesaid resolution is confirmed by a maiorit o± three-lourcns of the members of each society present and the common bv e - l aw are accepted with or without, any alterations, the Registrar shall be moved "by" an application under section 10 for registration and he shall register the new society under section 11 if he approves.
<vi) The Registrar shall not register the new society if the application for registration is not accompanied by a certificate of repayment of share capital +0 members and a certificate of satisfaction of claims of creditors referred to in clause (iii).
(vii) From the date on which the new society is registered the registration of the old societies shall be deemed to have been cancelled.
(viii) The registration of the new society shall be a sufficient conveyance to -/est in it all the assets and the liabilities of the original societies.
CHAPTER. I l l RIGHTS AND LIABILITIES OF MEMBERS OF REGISTERED SOCIETIES
16. Member not to exercise rights till flue payment made and wnfflifrms ' fulfilled.—No member of a registered society shall exercise the rights cf a member unless or until he has made such payment to the society in respect of membership or acquired such interest in the society, as may be prescribed by the rules or eye-laws.
IV. Votes of members.—(1) Irrespective of the shares he holds in the society and subject to any temporary disqualifications from voting which may be prescribed m bye-laws and to the provisions of section 31(2) (b) relating to voting by repre sentatives, a member of a registered society shall have one vote only in the afiairs of the society.
Provided that in the case of an equality of votes the chairman at any meeting shall have a second or casting vote:
Provided further that the bye-laws of a society may provide for more than ontt * -ote in the case of an affiliated society.
(2) A registered society which is a member of another registered society may appoint one of its members qualified under any rule or bye-laws to vote in the affairs of such other society as its representative. «
(3) Voting by proxy shall not be allowed except as prescribed in a registered society's bye-laws; Provided that in registering the bye-laws&of a society the Regis t rar shall not permit voting by proxy except in cases, such as those involving a wide area- .of operation, where it would be difficult for members to exercise their right to vote if voting by proxy were not permitted.
18. Member of unlimited society to furnish information as to his financial m o tion.—(1) A full, truei and accurate statement of his assets including his immovable - property and liabilities shall be f u r n i s h e d - fa) by an applicant for membership of a registered society with unlimited liability, together with his application.
v
(b) by a member or a registered society with unlimited liability then requir ed to do so by the Registrar or any person authorised by him in ibis behalf or by the affiliating' society.
(2) No member . of a registered society with unlimited liability shall be a member of more than one such society.
(3) A member of a registered society with unlimited liability shall furnish to the society full, t rue and accurate information regarding his intention to transfer his immovable property, in whole or in part by way of sale, mortgage or gift at least fifteen clays before completion of each such transaction.
1!). Loan to be utilised for the purpose for which advanced.—The loan advanced by a registered society to a member thereof shall be utilised by him for the purpose lor which it was advanced and for no other purpose. The society shall have power to recover the advance as prescribed if the member does not so utilise it.
20. Restrictions on transfer of share or interest.— (1) The transfer or charge of the share or interest of a member in the capital of a registered society, shall be subject to such conditions as to maximum holding as may be prescribed by this a ct or by the rules.
(2) Except as otherwise provided in this Act no transfer or charge of his share or interest by a member of a society with unlimited liability shall be valid unless:—
(a) he has held such share or interest for not less than one year; and
(b) the transferee or mortgagee is either -a member of such society or a oerson whose application for membership has been accented.
21 Liability of past member and his estate.— (1) The liability of a past mem ber and of t he estate of a deceased member for the debts of a registered society as they existed at the date "of his ceasing to be member or of his death, as the case may be, shall continue for a period of four years from the said data.
(2) No past member of a registered society with unlimited liability shall be eligible for membership of another such society with unilimited liability except with t he special permission of the Registrar.
22 Share or interest not liable to attachment.—Notwithstanding anything con tained in any law for the time being in force but subject to the provision of section -M of this Act the share or interest of a member in the capital of a registered sq ie'xy or in any fund under section 53 shall not be liable to attachment or sale under any decree or order of a court in respect of any debt or liability incurred by such member nor be subject to any claim by a receiver under the Provincial Insolvency Act, 1920 (V of 1920).
23 Nomination of transferee.—If the bye-laws of a registered society so permit, •anv member of the society may, in accordance therewith nominate a person or persons in whose favour the society shall dispose of the shares or interests of such member on his death.
24 Transfer of interest on death of member.—When a member of a registered society dies his shares and interest, in the society shall subject to the provisions of this Act, be transferred—
(a) to the person, if any, nominated in accordance with the provision of . - section 23; or
(b) if there be no such nominee or if the nominee is not available or is difficult to be ascertained by the managing body, or if for any other cause such transfer cannot be made without unreasonable, delay or difficulty to the person as may appear to the managing body .to ^be the heir or legal representative of the deceased member; provided that ninety days have elapsed from the elate of the .member's death No new claim fehall be entertained after the said period of ninety days.
25 Disposal of shares or interest of ceased members.—When a member of a registered society is expelled or withdraws or otherwise ceases to be a member •a£3er this Act, "rules or bye-laws his share ef , in teres t shall be transferred to another eligible person, and the value thereon, ^determined in accordance with the rules shall be paid to such ceased member if his share or interest is not forfeited under the provisions of this Act, rules or bye-laws or if he is insane, to any person appointed to manage his properties under the Indian Lunacy Act, 1912; provided / / ; l ? a t l f T t h e r e P*. n<? e l i S i b i e transferee and if the bye-laws of the society s 0 provid' ^J the value q± his share or interest determined in accordance with the bye-law.* shai.
P'd J° r l 01% l f h e 1E m s a n e > ^ any person appointed to manage his propert ies under the Indian Lunacy Act, 1912 (IV of 1912).
*
26. Liability of members on winding up of society.—The members of a regis tered society shall in the winding up of the society, be jointly and severally liable i.O contribute towards any deficiency in the assets of the society
(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, as may be provided in the bye-laws.
27 Restriction on transfer of possession of land held under a society—Notwith standing anything in any law for the time being in force—
(1) a member of a registered society, the object of which is to develop Co operative or Collective farming, shall not be entitled to transfer his possession or interest in any land held by him under the society.
except to the society or with the previous approval of the managingbody and in accordance with its bye-laws, to a member thereof o r r to a person who will be admitted as a member of the society;
(2) on the death of such a member, his possession of and interest in, any' such land held by him under the society shall come to his nominee* in accordance with the provisions of section 23 or in the first eligibile heir according to seniority in age willing to become a member of the society;
(3) if no nominee or heir becomes a member the possession of and interest in, such land of t h e deceased, shall vest in the society, which shall payto the nominee or the heir, a sum equivalent to the value of the share and interest of the deceased member and any other sum due from the society as determined in accordance with this Act or rules framed thereunder after deducting all due's which the deceased member owed to the society;
<4) if there is no person qualified to succeed to the share or interest of the fi deceased member the society shall pay to his heir, executor or the I -^AAJ^/^U-^C 3a\ representative as the case may be, a suriVgqaii&men-t to the value K f ot t n e share and interest of the deceased member as determined in accordance with the rules after deducting the dues of the deceased to the society; •-' -A
(5) When in any other case a member ceases to be a member of such" 3 society under this Act, rules or bye-laws, his possession of and interest in, any such land held by him under the society shall come to the society. If the bye-laws allow and if the share and interest of the member is not forfeited under this Act or rules framed there under, the society shall pay to t he ceased member a sum equivalent to the value of the share and interest of such member and any other sum due to him from the society after deducting his debts to the society after deducting his debts to the society, if any;
(6) no land held under a registered society specified in sub-section (1) by a member thereof, or vested under sub-section (2) in the heir or nominee of such member, shall be attachable in any suit or proceed ing for the recovery of any debt other than a debt due to the society' or to a member thereof;
(7) no land 'shall vest in such a society by reason of the provisions of this section unless it is owned by the society or has been leased to the society and, if the society holds the land by lease or contract, the land shall vest in the society only during the pendency of the lease or contract.
28. Right of a registered society to pay p o o r debts of a mortgagor.—(1) Where a mortgage is executed in favour of a registered society for payment of prior debts or part thereoi, ox Lhe mortgagor secured on the mortgaged property the regis tered society may notwithstanding the provisions of sections 83 and 84 of t he Transfer of Property Act, 1882 (IV of 1882), by notice in writing and served-** registered post with acknowledgment due. require any person to whom any sulh debt is due to recieve payment of (such debt or par t thereof from the society at itregistered office within such period as may be specified in the notice t
(2) The person on whom such notice ifc served shall be bound Co receive paymem. of the amount offered by the society, but where there is disagreement or dis pute between the mortgagor and such person as regards t h e amount of the, debt, or where the society tenders less than the agreed amount of debt, the receipt of the sum offered by the society shall not debar such person from enforcing his right to recover the balance claimed by him,
(3) If any such person refused to receive such notice or such payment, such debt or part thereof ab the case may be, shall cease to carry interest from theexpiration of the period specified in the notice and the property mortgaged under sub-section (1) shall be deemed to have been freed from the encumbrance of such prior mortgage.
(4) No society shall advance a loan on a mortgage without taking a declara tion from the prospective mortgagor as to the; names of pr ior mortgagees of the' property in question, if any.
29. Restrictions on mortgaged property.—Where land is mortgaged to a regis tered society—
(1) the mortgagor fehall not be entitled without the approval of the society to transfer or mortgage his equity of redemption or to create a charge upon or lease out such property for a period exceeding three years.
'(2) If the mortgaged property at any time is wholly or partially destroyed or the security is rendered insufficient due to fall in value or for anyother reason and the mortgagor having been given a reasonableopportunity by the society of providing for further security sufficient to cover the loan or of repaying the loan with interest or such portion «HUa-the loan as may be determined by the supervisory, managing or * controlling body and the mortgagor having failed to provide such security or repay such portion of the loan, the whole of the loan or such unconcerned portion shall be deemed to fall due at once and.
recoverable through a co-operative demand certificate.
(3) Notwithstanding anything contained in the Transfer of Proper ty Act, 1882 (IV of 1882), the mortgaged property, in case of default of pay ment of mortgage money or any par t thereof, may be sold by the society as prescribed by rules in addition to any other remedy avail able to it, without the intervention of the court, if a power of sale without the intervention of court is expressly conferred by the mortgage deed, provided the society served a notice in writing by registered post demanding payment of the mortgage money with interest, or pa r t thereof, upon the mortgagor or, any person having an interest in or charge upon the mortgaged property or the equity of redemption who has previously notified the society of such Interest or charge in writing or any surety, and if default has been made in payment of the loan or par t thereof for three months after such service of notice. Provided that any party aggrieved by an action taken by a registered society under this section may prefer an appeal to the Registrar within thirty days from the date of the sale. His decision shall be final,
30. Bar to certain claim.—All payments and transfers made by a registered society under this chapter, shall be valid and effectual against any demand made upon the society by any other person.
CHAPTER IV • MANAGEMENT
31. General Assembly.— (1) General Assembly of a registered society shall consist of all those who are eligible to vote at general meetings of the society.
(2) (a) Every member of a registered society and every ex-officio member of the Administrative Council or managing body of such society, unless under some temporary disqualification, shall have the right to attend any general meeting of the society and to exercise his vote at such meeting. Provided that the bye-laws of a registered society may prescribe:—
(i) tha t a registered society affiliated to such society may have more than one representative entitled to vote at general meetings of the society;
and (Ii) tha t only one-third of the members of the General Assembly, excluding ex-officio members, may be individual members, the other two-thirds being representatives of affiliated registered societies.
-.
10 -ition ^W^ii?"£^H °n a ^ s t o r e d society contain the provision of mhl tfve?of a l tLU ahnfv enf a l- t T ^ t h ° S e * d ™ * S .Scrab^s1- v S a f the r ? p % ^ I S the g e n e l S K n i m ^ ? ^ 3 3 m e m b e f • ^ ^ the one-third/ me n b e r S p U-L tijc f^cneiaj ^ssemnly lor tile purpose of •^ofinc aV thp amin^i - n , i Ti-; G4O«**J o the General Assembly during k e ^ n ^ g y e S / o n v Sucl?Reeled raSSrtKS naving the right to attend and vote at such genera]' meetings i c p i e s c n l ^ v e s \ssS-Jve J & S / t ^ & w * a / T e f i l R t o ? d s o c i ^ shall be vested in the General Assembly. Provided that during the pendency of any loan or service frnm tfc* . : t ° ; ^ ; ™ i e n t ' <* a i l7+ ° t i e r ^ed i to r secured at the instance of the G o v e i ^ e n l $ * ? f f ^ ! n a U P 0 r 1 ^ m r e s p e c t 0 f a D y m a l t e r adversly affecting he S e s t e of me Government or the said creditor touching .such loan or service shall be vested in the Chief Commissioner of Manipur or the Registrar, as may be "movidefl in he bye-laws, or any person authorised by them in writing and may extend to the appointment of officers to hold any of the offices of the " o c e t y or mil persons to be ex-officio members of the Administrative Coimci m a n a - i n " body or any committee of the society even if not members of the societV T h l supreme authority of he Chief Commissioner of Manipur or Registrar may a h > b e MSurdo?£^r!r~T« t°h " ^ l 0 3 n °l S S r i C e < w h e n t h e C 1 ^ f Commissioner of luampui 01 Registrar, as the case may be, deem their intervention to be iiecessarv n 1 i n e i n a f r e ? L 0 V h i e f m r m b e - S ° f t h e f 0 ^ - ° r ° f t h e Co-operative"movlmlnt tn general. The Chief Commissioner of Manipur or the Registrar as the case may be, may fix the salary, of any such appointed officer and declare it to- be a charge on the society. They may cancel any such appointments made b y t h l r n = m / i L ^ a m U - a l °,r s P e f i a l .meeting of the General Assembly shall be summoned •and shall exercise its authority and perform its functions in such manner as may be prescribed m the bye-laws of the society. •
32. Annual Meeting • of General Assembly.— (1) A general meeting to be termed the annual general meeting of the General Assembly of a registered society shall 4>e held at least once in every Co-operative year for the purpose of
(a) electing members to the Administrative Council managing body and other committees of the society, the Chairman, Vice-Chairman and other office bearers, as may be provided in the bye-laws, and fixing such f§es, salaries • or other remuneration as prescribed in the byelaws; Provided that the Chief Commissioner of Manipur may prescribe" ""* by rules the qualifications necessary for office bearers and employees;
(b) electing an internal auditor or auditors, who shall not be members of the Administrative Council or governing body, and fixing the remuneration;
(c) considering the annual report of the Administrative Council or if there be no Administrative Council, of the managing body, audit report and audited annual accounts and balance sheets and reviewing the working of the society during the preceding Co-operative year;
(d) deciding how profits are to be distributed in accordance with the byelaws;
(e) passing the annual budget and approving the programme of work for the ensuing year;
(f) fixing the maximum amount of liability to be incurred during the % ensuing year and the maximum rate of interest payable on deposits - and
(g) considering such other business as may be placed before the moating in accordance with the bye-laws,
(2) Such meeting shall be held not more than fifteen months after the date ©f the last preceding meeting held under sub-section (1) and unless the Registrar on special grounds extend the period, within three months of the receipt of the statutory annual audit report.
33. Special meeting of General Assembly.— (1) A Special Meeting of the "t •General Assembly shall be called— ' —*
(a) at the instance of the Administrative Council or if there be no Arjmirffs- • trative Council, of the managing body;
(b) at the request of the Chairman of the society;
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(c) on a requisition signed bj one-tenth of the members of the Gen- - - ' Assembly or twenty members, whichever is less; or
(d) at the instance of the Registrar;
•
(2) Tiie Registrar himself or any person authorized bv him in this behalf m writing may, by special order call a special meeting of the General Assenftfe at any time and shall call such a meeting upon the failure of Ihe society to call a meeting on the requisition by the members, or at the instance of the Registrar under sub-section (1). L W U t t , u
(3) Notwithstanding any rule or bye-lav/ prescribing the method of sumnsomne •ex period of notice for a General Assembly, the Registrar or any person au thor i se!
oy mm in this behalf, may specify- the time, place, business for 1he meeting and manner of convening it. &
34. Administrative Council.—The management of every registered society shall vest in the managing body of the society, except in t he ' ca se of a society' which for administrative convenience necessitated by reasons such as wide area of operation, that responsibility shall vest in an Administrative Council The Administrative Council, thei managing body and committees of a society shall b^ constituted in accordance with the bye-laws of the society, which shall specifv the composition of such bodies, their powers, functions, duties, method of summonine meetings and procedure.
35. Power to depute Government servant to manage the affairs of a society The Chief Commissioner of Manipur may, on the application of a registered society and on such conditions as may be determined, depute Government officials to the service of the society for the purpose of managing its affairs and the ofPcial .shall exercise such powers and perform such duties as may be determined.
36. Dissolution or reconstruction of the Administrative Council managing hmdy o r any committee of a society.—(1) When the Registrar is satisfied after an inspection or enquiry under section 60 or 61 for reasons to be recorded in writing that the Administrative Council, managing body or any committee of a registered society is not functioning properly or according to this Act. rules or bye-laws he may, after giving the offending body an opportunity to state its case, direct under clause (d) of sub-section (1) of section 33, that a special General meeting of the General Assembly be called within a time to be specified to dissolve the Administrative Council, managing body or committee concerned and to elect a •new one. Provided that if in the opinion of the Registrar it is necessary as an emergent measure to suspend the offending body forthwith, he may do so and shall appomt a person or persons, on such conditions as prescribed by him, to be in full control of the suspended body until a new body has been elected or action has been taken in accordance with section 37.
(2) The Registrar may, for reasons to be recorded, specify in the direction made under sub-section (1) that all or any of the outgoing members of the dissolved body shall be disqualified for such period not exceeding three years as he may determine, for election or appointment as . an officer of the society or for service on any of its bodies. '
(3) An appeal shall lie to the Chief Commissioner of Manipur against an order of the Registrar disqualifying a member Of a society for election or appointment within two months from the receipt of the order.
37. Dissolution of Administrative Council. Managing body or any committee and appointment of persons to manage, the affairs of a Society.—If the Adminis t rat ive Council, managing body or any committee, as the case may be, of a society is not dissolved and reconstituted within the t ime specified by the Regis t rar under section 36, he may by order in wri t ing dissolve such body and shall thereupon appoint a person or persons, 'on such conditions as prescribed by Mm, to manage the affairs of the society for such period not exceeding one year when he shall arrange for the constitution of a new body ley take' the place of the dissolv ed body. The Registrar may extend this period from time tp time as he may deem fit; provided that the aggregate of such periods shall not exceed three years.
38. Tenure of office of thp person appointed under section 37.—The person appointed under section 37 shall hold office until the Administrative Council, managing body or committee, as the case may be, is reconstituted or his appoint ment is cancelled by the Registrar.
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39. Powers of person appointed under section 3 ? . - D u r i n g the tenure of office ^ iW a nerson a n o i n t e d under section 37 such person shall, subject to wie conBPM S ^ P P ! o L ™ i r pvercise all the powers and perform all the functions and duties which m a ? be ^ r c i s T d 6 o T p e l t a e d by ?hf superseded body under the provi- - . , aons of this Act, rules or bve-lawp.
CHAPTEE. V DUTIES OF REGISTERED SOCIETY
40. Address * g * & * 3 S o S S S a t S S 8 £ r f S £ U S f S S X l V ^ i l t a ? o f e v S S e h a n i e \ K e „ t within thirty days of such change, to the Registrar and to the affiliating society if any.
At Pv^rintim-v and inspection of documents.—(1) Every registered, society ^ • ] S r E S l 3 L f & « 5 S S t o e of charge b y any member of & e f ociety ana S c h o t e persons as may be prescribed at all reasonable tunes at the office of the society—
(a) A copy of this Act.
(b) A copy of the rules framed under this Act. v
(c) A copy of the bye-laws of the society.
(d) A copy of aU rules framed under the bye-laws of the society.
re) Annual balance, sheet authenticated by the Audit Officer, and
(f) Such other books, forms, registers or other documents as may be p r e scribed by the Registrar.
4 2 R e s t r i c t s en } S S S S K ± S S ^ S ^ S f i T £ l g S l ? j S i ^ A t o « S S y ^ ™ S * 4 m the Act and bye-laws.
.„ — » rii,iaf rntriTnissiniier of Manipur to give financial assistance.— J e a r all or any part of such financial assistance.
44. Restrictions on l o a n s . - ( l ) A registered society shall not give l o a n s - feWn m v nerson other than a member except wi th the general or special ( s!S«^ to * S v e l S w s provided tha t in assessing normal credit the managing body shall t a k l a T u l l s ta tement as to the member 's means of earning, ^ fci on the security of movable proper ty or future movable property, unless J { ) the movable proper ty is- placed wi th t he society, S t e d b y t t e borrower and the t ru th of the statement is ascer tained b y the managing body, , D , nT1 t M ^ q o n a i security wi th sureties, unless the borrowing member and •• C ) hFs !ur!Ll fogeiher h ave unencumbered immovable proper ty or a a c n l w f f und id assets sufficient to cover the loan and ^ ^ g e - menf of such securities is submitted by the bor iowei and. tne surenet, S S a t e l y arid the t r u t h of the statements is ascertained by the _ * managing body, en nn i w s o n a l security, wi th or without sureties, unless the loan is for a ( f ) n shor t p l r i o d n o t W e e d i n g the t ime required to reap the benefit of the loan and in no case exceeding three years.
13 I ) J
(2) (a) Notwithstanding the provisions of sub-clauses (1) (b) , (d) and (e) a loan may be given on personal security provided that the managing body of the society' is satisfied as to the credit of the borrower and has taken from him a scheme for the utilisation of the loan and has ascertained the t ru th of the state ments contained in the scheme and the bona fides of the borrowing member.
(b) the resolution of the managing body granting a loan vmder this section shall contain the names of al] assenting members ; provided that, if such names arei omitted from the proceedings of the meeting, the Chairman and Secretary shall be he ld jointly and severally responsible for the issue of the loan,
(c) notwithstanding the provisions of sub-clauses (1) (b) to (f) and (2) (a) •and (b) , a registered society may issue a loan on mortgage or valuable security,
(d) no personnel shall be accepted as a surety for any borrower unless h e is ilso a member of the same registered society.
(3) A registered society, the pr imary object of which is not _ the issue of loans, shall open a separate accounting or financet or banking branch in accordance wi th its bve-laws and frame rules for the conduct of business in such branch before it issues any loans and such rules shall first be approved by the Registrar.
45. Office bearer of society is required to furnish information and prodaee documents.— (1) Every office bearer of a registered society shall produce docu ments and books of account, cash balance in his custody, and appear before and furnish such information in regard to thei transactions or working of the society as may be required of h im by the Registrar, or persons authorized by the Regis t rar in this behalf, an audit officer, arbitrator, l iquidator or any person conducting an inspection or inquiry under t he provisions of this Act and the Rules made thereunder.
(2) (a) A t any sale of property, movable or immovable, held under this Act ir rules framed thereunder, no office bearer of t he registered society concerned or any person having any duty to perform in connection wi th such sale, shall •either directly or indirectly bid for, acquire or a t tempt to acquire any interest in such property .
(b) Any office-bearer of a society or a l iquidator may on behalf of the society 'bid and purchase at a sale of mortgaged proper ty .
CHAPTER VI PRXVTLEGES OP REGISTERED SOCIETIES 46 Prior claim of a society.—(1) Notwithstanding anything contained in sections •GO and 61 of thei Code of Civil Procedure, 1908 (V of 1908), any debt or outstanding demand due to a registered society by any member, surety, past member, or the estate of any deceased member shall be a first charge,
(a) if such debt or demand is due in respect of t he supply, or any loan to provide the means of such supply, of seed, manure , labour fodder for cat t le or any other thing incidental to the conduct of agricultural operations,—upon the crops or agricultural produce of such member, past member or belonging to the estate of such deceased member, at any time within two years from the date of such supply or loan or from the date on which the last instalment of such supply or loan became repayable;
(b) if such debt or demand is due in respect of the supply of, or any loan for the purchase of cattle, agricultural implements or warehouses for the storage ojf agricultural produce—in the manner and to the extent aforesaid upon the crops or agricultural produce of such member, past member or belonging to estate of such deceased member and also upon the cattle, agricultural implements or warehouse thus supplied or purchased wholly or in part from any such loan:
•(c) If such debt or demand is due in respect of the supply of, or any loan for the purchase of raw-materials, industrial implements, machinery, workshop, warehouses or business premises,—upon the raw materials or ether things supplied or purchased by such member, past member or the deceased member wholly or in par t from any such loan and also upon any articles manufactured from raw-materials or with implements or machinery so supplied or purchased wholly or i n part from any such loan;
14 I
(d) if such debt or demand is due in respect of any loan for the purchase-.
improvement or redemption of land or for the purchase or construc tion of any house, building or any portion thereof.—upon the land "' purchased, improved or redeemed • or the house or building sc purchased or constructed by such member, past member or the deceased member from any such loan.
•2) Nothing in this section shall affect the claims of any bona fide purchaseror Transferee for value without notice, 4 7. Charge and set oil in respect of shares or interest of members.—A registered society shall have a charge upon the share or interest in the Capital and~on the deposits of a member or past member or deceased member and upon any dividend-.
bonus or surplus payable to a member or past member or the estate of a deceased member m respect of any debt due from such member or oast member or estate Of such deceased member to the! society and may set off any sum credited or pay able to a member or past member or estate of a deceased member in or towards payment of any such debt.
48. Deduction of dues from salary of members.—If a member of a registered >.
society, who is an employee of the Government, or any local authority, takes a loan from a society and contracts to repay it by instalments, and authorises thesociety to recover such instalments by deduction from his salary, the person who disburses any amount payable to such member as salary or remuneration in respect of such employment shall, on demand from the society, debuct the amount of such instalment from the amount disbursed to such member as salary and shall forthwith remit to the society the amount so deducted.
49. Exemption from compulsory registration and personal at tendance for registration of tastoanejits.—Nothing in clauses (b) and (c)„of sub-section (1) of section 17 of the Indian Registration Act, 1908 (XVI of 1308) shall apply to:—
(1) any instrument relating to shares in a registered society, notwithstanding that assets of such society consists in whole or in par t of immovable proper ty; or (•2) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder to the..--4 security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or par t of its immovable property or any interest therein to trustees upon t rust for the benefit of such debentures: or . (3) any endorsement upon or transfer of any debenture issued by any such society.
(4) Notwithstanding anything' contained in the Indian Registration Act.
1908, it shall not be necessary for any office bearer of a registered society or a liquidator of a society to appear in person or by agent at any. registration office in any proceeding connected with the regis tration of any instrument executed by him in his official capacity or to sign as provided in section 53 of that Act.
(5) Where any instrument is so executed, the registering officer to whom surfs ins t rument is presented -for registration may, if Ire thinks fit, refer tosuch office bearer or liquidator for information regarding the same and on being satisfied of the execution thereof, shall register the instrument.
50 Power to remit certain duties, fees, eie.—(1) The Chief Commissioner of Manipur may by general or special order hi the case of a registered society c class of registered societies remit any tax, cess or fee payable under any law fm the t ime being in force or the rules thereunder in respect of which they are competent to remit such tax, cess or fee.
(2) The • Chief Commissioner of Manipur may, in respect of any registered -> •' society or class of registered societies, by notification in the official gazette, remit— _-£
(a)' the stamp duty other than stamp duties falling within item 91 or item 96 in list I in the seventh schedule to the Constitution of India in respect of any instrument executed by, or on behalf of, or in favour of, a registered society or by an officer or on behalf of a member thereof, and relating to the business of such society or any class of 15 such instruments, co-operative demand certificates or decisions, awards of orders of Registrar or arbi t rators under this Act, in cases where, but for such remission, • the registered society, officer or member thereof, as the case may be, would be liable to pay the stamp duty chargeable under any law for the time being in force, in respect of such instrument, and
(b) any fee payable by a registered society under any law for the timebeing in force for the registration of documents or of court fee for the t ime being in force.
CHAPTER VII PROPERTY AND FUNDS OF REGISTERED SOCIETY
51. Inves tment of funds.— (1) A registered society may invest or deposit its funds—
(a) in a Government Saving's Bank, or
(b) in any of the securities specified in section 20 of the Indian Trust Act.
1882, other than those specified in clause (e) of that section, or
(c) with the sanction of the Registrar, in the shares or debentures or in the security of any other registered society, or
(d) with any registered society, bank or persons carrying on the business of banking approved for this purpose by the Registrar, or
(e) in any other mode nermitted by the bj>e-Iaws.
d) Such investment shall, be accounted for separately from the Reserve Fund of the registered society.
52. Eeserve Fund.— (1) Every registered society shall mainta in a Reserve Fund formed from i ts profits and carry to the fund in each year not less than twenty per centum of its net profits.
(2) The Reserve Fund shall be invested separately in any of the ways pre scribed in section 51 or, wi th the sanction of the Registrar, in immovable property reqiiired for t h e fur therance of the activities of the society. Any such investment shall be deemed to constitute Reserve Fund. No inst rument securing a loan on a Reserve F u n d shall be valid.
(3) The Reserve Fund shall not be utilised for any purpose whatsoever except with the sanction of the Registrar, who shall accord such sanction only in excep tional circumstances.
53. Di&tribtttioH of net profit.—After making the allocation to the Reserve Fund as prescribed in the section 52, t he remaining ne t profits of a registered society may be distributed according to the bye-laws of the society.
54 R.estrictio3i on distribution of profits.— (1) Save as may be nrescribed no distribution of profit shall be made in the case of a registered society with unlimited liability and no part of the net profit or of a fund of any society shall be divided b y way of dividend, bonus, pa t ronage dividend, rebate or otherwise among its members.
(2) No dividend, bonus, patronage dividend, or rebate shall be paid—
(a) otherwise than out of net profits certified by the audit officer to have been actually realised; provided tha t advance patronage dividend may be paid in accordance with the directions of the Registrar and on the certificate of an internal auditor approved by the Registrar; or
(b) without the previous sanction of the Registrar, if the audit officer reports that any asset is bad or doubtful and also recommends that such sanction is necessary.
(3) .Notwithstanding anything contained in the section payments may be made to members as a fixed interest on share capital, if so provided in the bye-laws.
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CHAPTER VIII AUDIT 55, Registrar is responsible for audit.—(1) The Registrar *ha11 zmAH ™. a „ M < and o«,er properties i S S ? or K e ° ^ such i n f o r m a t i o n ^ ^ e S S t°o ^ 2 ^ ^ ^ ? ffSoSS S T K
(3) In respect of every audit of the accounts a registered sorietv «hnTl n-,-, S£ S S Sfe US;.be prescribed and such fee sha11 be ^ S^a^JK v w th his sanction, the audit officer, may cause the accounted be wittSuvztthe S S ? S u n ? e r X S ° K ^ - ' ^ e * P e ? « * shall at the first instance be ™ t f om he S S «n f +1 a 1 Contingencies' by the Registrar and shall be re-imburs-d later on from the society concerned along with the audit, fees- mibursed
57. Nature of audit.—Thei audit shall include—
(i) a verification of the cash balance and securities;
(ii) a verification of the balance at the credit of the depositors and creditors and of the amounts due from the debtors of the society; L r e c u r o r s
(iii) an examination of overdue debts, if any;
(iv) t h * f v^a t fon^of the assets including stock verifications, and liabilities
(v) an examination of the statement of accounts and balance sheets to i*H b f T O r i b e d ; m a n a g i n g ^ ^ ^ society * such forms as ma?
(vi) a certification of the realised profits; and
(vii) any other relevant matter.
58 Audit report.—The audit officer shall, within a week from the date of •completion of audit, submit to the registered society, and to the Registrar together •with the statement of accounts audited, an audit report includmg aT statement $ -
(i) every transaction which appears to him to be contrary to law or to the rules or bye-laws; e
(ii) every sum which ought to have been but has not been brought into 1 3CC0U1T. L \ _ i
(iii) the amount of deficiency or loss which appears to have resulted from any negligence or misconduct or to require further investigation;
(iv) any-money or property belonging to the society which appears to have been misappropriated or fraudulently retained by any person;
(v) any of the assets which appears to him to be bad or doubtful;
(vi) any irregularity in maintaining accounts; and
(vii) any other relevant matter.
_ 59. Rectification of defects.—A registered society shall be afforded bv the-V" Registrar an opportunity of explaining any defects, or irregularities pointed out and objected to by the audit officer, and thereafter the society shall within such time and m such manner as the Registrar may direct, remedy such defects and irregularities and report to the Registrar the action taken by it thereon.
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CHAPTER IX INQUIRY AND INSPECTION \ 60 Innuirv by Registrar.—(1) The Registrar may, at any time, of his own motion or shall at the request of the administrative head m charge of the Civil Sub-division or other Administrative Area, hold an inquiry or direct some person authorized by him bv order in writ ing in this behalf, to hold an enquiry into the constitution, 'working and financial condition of a registered society.
(2) Such an inquiry shall also be held on the application of—
(i) t he affiliating society, if any, of which the society is a member and a debtor;
(ii) a majority of the members of the managing body;
(in) one-third of the members of the society, who shall have deposited such security for costs, if any, as the Registrar may direct;
(iv) creditors representing not less than one half of the borrowed Capital of the society, who shall have deposited such security tor costs, if any, as the Registrar may direct;
(3) The- Registrar shall communicate the resul t of any enquiry under this section to the society and to the person at whose request such enquiry was made.
61 Inspection of society.—(1) Every registered society shall be liable to inspection a t any time by the Registrar or any person authorized by 'him m this behalf by general or special order; and by any affiliating society if so provided m its bye-laws.
(2) Any inspection of a registered society shall be made by the Registrar or any person authorised by h im in this behalf by an order in writ ing at any t ime on the application of a creditor of a registered society:
Provided tha t no inspection shall be made under this sub-section unless (i) the creditor deposits wi th the Registrar such sum as security for the cost of the pro posed inspection as t he Registrar may require and (n) the creditor satisfies the Registrar that t he alleged debit is a sum then due and that he has demanded pay ment thereof and has not received satisfaction within a reasonable time:
Provided further that no inspection shall be conducted under this sub-section without giving .the society an opportunity of being heard .
' (3) The resul t of an inspection under this section shall be communicated to the society and, if held at the instance of a creditor, to the creditor.
62 Cost of enquiry and inspection.—(1) When an inquiry is held under section 60(2l' or an inspection is made under section 61(2), the Registrar may, after eiviriV the part ies an opportunity of being heard, apportion the cost or such par t of the cost as he may deem fit, between the society, the members thereof or the affiliating society or t he creditor or creditors applying for such inspection or inquiry, as the case may be, and the officers, former officers, members and past members of the society.
(2) No expendi ture from the fund of a registered society shall be incurred for the purpose of defraying any cost in support of any appeal preferred by any person other than the society Itself against an order under sub-section (1).
(3) Anv person authorised by the regis t rar under sections 60 and 61 shall have all the powers of the Registrar when acting under these sections.
(4) Recovery .of costs.—Any sum awarded b y way of cost under this sectioi.
shall be recoverable through a Co-operative demand certificate.
CHAPTER X SETTLEMENT OP DISPUTES 63 Reference of dispute.—Any dispute touching the business of a registered society other than a dispute regarding disciplinary action taken by a society aeainst an employee of the society, or of the l iquidator of a society shall be referred to t he Registrar for decision if the part ies thereto are among the fol lowing—
(a) the society i ts past or present controlling or managing body, any past or present officer, agent or employee or the liquidator of the society; SY K V J 18 • I V ^ (b) member, past member or persons claiming through a member, past * member or deceased member of the society; or
(c) a surety of a member, a past member or deceased member of a - society; or
(d) any other registered society or the liquidator of such society.
64. Settlement of dispute.— (1) The Registrar shall on receipt of a reference under section 63—
(a) decide the dispute himself or authorise any other Government Officer to decide the dispute; or
(b) refer it for disposal to an arbitrator appointed by the Registrar or to three arbitrators one to be nommated by each of the parties to the dispute and the third, who shall be nominated by the Registrar, to act as Chairman. Where any par ty to the dispute fails to nominate an arbitrator within fifteen days after the communication of this notice, the Registrar may himself make the nomination. No legal practit ioner may be nominated as an arbi trator by any part;- to a dispute or by the Registrar.
(c) An arbitrator appointed under the previous sub-clause shall be governed by the Indian Arbitration Act. J940 (X of 1940.). with such v statutory re-enactment or modification thereof as shall from time to time be made.
(2) The Registrar may wi thdraw any reference of such dispute referred under sub-section (1) and may deal with it himself under the said sub-section.
(3) Where the Registrar is satisfied that a party to any reference made to h im under section 63 with intent to defeat or delay the execution of any deci sion that may be passed thereon—
(a) is about to dispose of the whole or any par t of his property; or
(b) is about to iemove the whole or any part of his property from the local limits of the jurisdiction of the Registrar, the Registrar may, unless adequate security is furnished, direct the conditional a t tach ment of the said property or such par t thereof as he deems neces sary; and such at tachment shall have the same effect as if it had been made by a competent Civil Court.
CHAPTER XI DISSOLUTION OF SOCIETY
65. Cancellation of registration.—(1) If the Registrar, on receipt of an application made upon a resolution adopted in a meeting of the General Assem bly by a three fourths majority of the members present at the meeting provided that the notice of dissolution was included in the • circulated agenda of the meet ing, is of opinion that society ought to be dissolved, he may b y an order in wr i t ing cancel the registration of the society.
(2) The Registrar, after an enquiry has been held under section 60 or after an inspection has been made under section 61, may cancel the registration of a society which—
(i) has not commenced working; or -V
(ii) has ceased working; or
(iii) has ceased to comply material ly with any condition as to registration ' in this Act, rules or bye-laws, and
(iv) in his opinion ought to be dissolved.
(3) A copy of the order cancelling the registration of a society shall forth with be published in the official Gazette by a notice which shall be communica ted to the society and to any affiliating society concerned by registered post.
The notice shah contain the name of the liquidator appointed under section 66, who shall t ake full charge of the society forthwith and shall require all claimsagainst the said society to be made to- the liquidator within two months of pubi"~ lication of the notice. All liabilities recorded in the account books of the society shall be deemed as ipso-facto to have been so claimed.
(4) When the cancellation of the registration of a society takes effect, the society shall cease to-exist as a corporate body, bu t shall vest in the liquidator.
. ' 19 from the date of CB) Any member of the society may, wilhm ^ o ^ n g s j * £ J S s s i o n e r of publication oil the order of cancellation, appeal to Manipur from such order. publication of
(6) Where no appeal is ^ ^ ^ j ' ^ J ^ ^ J S T ^ take effect on an order cancelling the registration of the society, Lhe expiry of that period. cancella-
(7) When an appeal is nrevented ,^thin t * r o . m o n t h s ^ J ^ c o n a tion, the order shall not take f ^ ^ S is communicated to the society by doner of Manipur and such connimauon ^ W l r i t a g u p - ( l ) Where an ^ ^ ^ ^ ^ society is made by the.Registrar ^ e r ^ e c t i o n 6 ^ he m ^ P ^ ^ a p p o m t be the liquidator of the society and maj lemLv another in his place. e r f r o m
(2) The liquidator appointed under^ub-^ct ion J P o n s ^ u a s s e t s f properties, the date of his appointment to take i m g ^ g t ? w h K t t e society is entitled and effpctq and actionable claims of the society ui LU \ . , t t l i e business of the o f a f b c l s , records, ca sh and ° ^ J g g ? ^ ! £ F $ L & of 12*.society not oriety and, in the interests of &e society, sna ^ s t e p s ^ b e t a k e n withstanding the W J ^ J ^ f S a J 5 ' ^ p e n d e n c y of any stay order.
for the winding up of the society aurang . Registrar have
(3) The liquidator shall, under the .general control ol tn S ^ y 'Qt t h e cower so far as is' necessary or the ™ * ^ t ^ d ^ J f a c t s S S execute all docu- ?ociety to carry on the business thereof and to^ a ^ a g y ^ . ^ ^ f o l l o w .
ments necessary to such winding up, ana m p u w ing powers:— • •, 0+i i e r legal proceedings or nominees, heirs oi legai r « P ^ ' l a^ets of the society and to & H r f f fi^£?^lS? or Pe^ons an d the I <e, te1iSrrSS ot « £ * * » and to * » , hy what P « « and in what proportion they aie to pe Dome, claimants;
rate in any case; rate m au.y wac,
(h) to take steps to recover dues according to the provisions of section 83, if necessary; and m to dispose of the surplus, if any, remaining after paying the claims W agates! the society in accordance with section 67 of this Act.
• :~„„ „P 4-irro Art find rules made thereunder, a (4) Subject .to the P u l s i o n s of t h i s A c t and i ^ ^ liquidator appointed under this section snail, W so id p o w e r to summon and /-ssary for carrying out the Purposes o f ^ % s 0 e ^ t £ f j S t i o n of any book, -enforce the attendance of witnesses and to compel vf ^ } • t o o r i n the Civil Procedure, 1908 (V of 1908).
20
(5) Notwithstanding anything contained in amy law for the time being in v force, if any landed property is held by a liquidator as such the title over the land shall be complete as soon as the mutation of the name of his office is effect- -'JL ed ana no court shall, question the title on the ground of dispossession want of possession or physical delivery of possession.
67. Distribution of fund of a dissolved society.— On dissolution of a society the reserved fund and any undisbursed cash in hand .shall h<- applied to discharg ing liabilities of the society and the repayment of the share capital. Any sum trial may remain may be applied to such object of local and public utility as rnav be selected by the members of the dissolved society and approved by the Regis- H??- l±> wi thm three months of the notice published in the Manipur Gazette S 5 S L +V 1 6 8 ^ n o t l f y i " g tne closing of the liquidation proceedings of t he society the members rail to select an object as aforesaid, the Registrar shall S i n n l r ^ r ? 1 ° f ^ ^ C o m m i s s i o n e r of Manipur, apply the f l u i d t o Tuch ThP v^rlf S V * ma? ? e ^ e r m i n e d by him or credit the remaining sum to the reserve fund of a society, to be formed to replace the dissolved society or if S « nf n n ° Sr S°C]!etiy t 0 a n y o t h e r d e s ^ v i n g society existing within the same area of operation and having objects similar to those of the dissolved society or detennined T y ' t h e Re'gistrar ^ ^ r e g i s t e r e d « « ^ i n ^^UT, as may be V
68. Liquidator to deposit the books and submit a final report .—When the affairs ot a registered society have been wound up, the liquidator shall make a report to the Registrar who when satisfied shall, order the liquidation proceedings to be closed ft ?%i t o e ^ m d a t ? r T J ° d e P°s i t the records wheresoever the Registrar thinks it, and the Registrar shall issue a notice i n the Manipur Gazette, notifying the closing of the liquidation proceedings of the Society.
69. Bar of Suit.—Save in so far as is expressly nrovided in this Act, no Civil court shall take cognizance of any mat ter connected wi th the widing up or dissolution of a society under this Act and when a liquidator has been appointed no suit o r other legal proceedings shall lie or be proceeded with against him except by leave of the Registrar and subject to such terms as be may impose.
- • "" ' ' CHAPTER XII RECOVERY OF SUMS DUE AND ENFORCEMENT OF OBLIGATIONS - ~-4
70. Power of Registrar to direct payment of dues.—Notwithstanding anything contained m Chapter X, the Registrar or such other person as may be authorised m this behalf, may, on his own motion or on the written requisition of a regis tered-society or an affiliating society for the recovery of any loan due by a defaulting member, after due enquiry, make an award directing payment ' by such member of the amount found to be due. * 71 Charge and Surcharge.—(1) Where. i s the result of an audit under sec tion bo, or an enquiry under section 60 or an inspection under section 61 or a report made m the course of the winding up of a registered society, it appears to tne Registrar that any member, officer or employee past or present, of the society nas at any time wi thm a period of four years prior to the date of such audit inspection, inquiry or report, as the case may be—
(a) intentionally, whether individually or as an assenting member of any Managing or other controlling body, made or authorized any pay ment or granted any loan which is contrary to the provision of this Act or to the rules or bye- laws or failed to take timely steps to - • , recover any loan at the due date or if it was being ' improperly •* utilised; or ._ , . ( b ) w a s grossly negligent in respect of any loss or deficiency; or
(c) failed to bring into account any sum which ought to have been brought into account; or &
(d) misappropriated or fraudulent ly retained any proper ty of the society
(e) committed breach of t rust in relation to the society; the Registrar maf& inquire into the conduct of such officer or member of th f managing or other controll ing body. 6 fi affaiS n Tfh+TnRegis t rf r n)ay s i m i I a r l , y inquire into the conduct relating to the Sffaiis of the society of any member, officer or employee, past or present? of a Y 21 registered society on the application of the present controlling or managing body of the society, or liquidator, or any creditor, or any other registered society to which the society is affiliated or any contributory.
(3) Upon such enquiry, after giving such member, officer or employee an opportunity of being heard and, in the case of a payment made contrary to m e provisions'of this Act or rule or bye-laws, after affording such member, officer or employee t ime to recover the amount of such payment from the payee ana credit it 'to the funds of the society, the Registrar may by an order m wri t ing require such member , officer or employee to pay such sum with interest at sucn.
rate as the Registrar mav direct, to the society by way of compensation m respect of such payment or loss or to restore such proper ty as the Registrar thinks nt, and to pay' such sum as the Registrar may fix to meet the cost of the proceedings under this section.
(4) Any award made by the Registrar under sub-section (3) shall be reduced to the form of a Co-operative demand certificate, by the officer authorised to issue such certificates.
(5) This section shall apply notwithstanding that such member, officer or ^employee may b e his act or ommission have incurred in addition criminal liability under this Act or any other law for the time being in force.
(6) An appeal shall lie to the Chief Commissioner of Manipur against an order passed under sub-clause (1) (a) within th i r ty days of the communication of the order.
CHAPTER XIII PENALTY 72 Prohibition of the use of the word '' 'Co-operative" or "Samabiiya".— (1) No person other than a society registered under this or any other Co-operative Societies Act shall t rade or carry on business under any name or title of which the word "Co-operat ive" or its vernacular equivalent "Samabaya" is a par t :
Provided that nothing in this section shall- apply to the use by any person or by his successor in interest of any name or t i t le under which he lawfully t raded or carried on business at the commencement of this Act.
(2) Whoever contravenes the provisions of this section shall be punishable with fine which may extend to fifty rupees, and in the case of a continuing offence with further fine of five rupees for each day on which the offence is continued after conviction therefor.
73. Punishment for false re turn, false information. disobeying: summons, orders, etc.— (a) If a registered society or an officer or member thereof o r any liquidator, wilfully makes a false re turn or furnishes false information or wil fully neglects or refuses to do any act required by this Act or the rules or bye - laws; or does anything contrary to this Act or the rules or bye- laws; or
(b) any person wilfully or without reasonable excuse disobeys any summons, requisition or lav/fully wri t ten order issued under the provisions of this Act or does not produce documents, or cash balance of the society or furnish any infor mation lawfully required from him by a person authorised in this behalf under the provisions of this Act or fails to maintain upto-date accounts, records, and other documents of the.Society required to be mainta ined by h im under this Act or the rules or bye-laws, he shall be punishable wi th fine which may extend to five hundred rupees; and in the case of a continuing offence a further fine of five rupees for each day on which the offence is continued after conviction therefor.
74. Punishment for .disposing- property in contravention of section 46.—Any member, past member, or the nominee, heir or legal representative of a deceased member removing or otherwise disposing of, or suffering to be removed or otherwise disposed of, any property on which a registered society holds a first charge under section 46 with intent to defraud the society or with such intent doing any other act to the prejudice of the society's first charge, shall be punish able -with fine not exceeding five hundred rupees.
75. Penalty for certain misderneaiifrars.—Where it appears to the Registrar that any person has contravened the provisions of this Act, the rules or byetaws— B^
(a) by sitting or voting or exercising his rights as a member, or as a member of any managing or controlling body, or voting in the 22 affair trf a registered FOeiety as a representative of another society S l i c k i s ^ m c m b e ^ such fociety, when Buelr person was not e x iled so to sit, vote or exercise suc.li rights, as the case ma^ De 01 . ^ , M v v rftiiiciine a loan for a purpose different from that for which i t was ° j ) H r a n e d ^ h e SegiJtxar may! after, affording such person an oppor tunity lo be heard, by an order m writ ing direct m m to pa} to the assets' of the society by way of penalty such sum not exceeding fifty rupees as the Registrar thinks fit.
7R p»wf- tn puiorce nerformaHee o£ obligations.—Notwithstanding anything rontainrf in tWS Ar t w h e r e ^ v registered society is required to take any action m \ d S S s Act th^ rules or bye- laws and such action is .not taken within the t S i p r o v i d e d in this Act, the ' ' rules or bye-laws or wittnn such t ime as he Registrar may speefify by a notice in writing, where no time is so provided, ine R e i t rar S l y call upon any officer of the society whom . he considers to be S o n s i b l e for the carrying out the directions, and a i ter giving such^officer an opportunity, to be heard, may require him to pay to the assets of the society sucn sum not exceeding twenty-five rupees as the Registrar may thmk fit foi eacn daj unt i l the Registrar 's directions are carried out.
77 Cognisance of offences.—(1) No court inferior to that of a Magistrate of I the second .class shall t ry any offence under this Act.
(2) No prosecution for an offence Under this Act shall be insti tuted without the previous sanction of the Registrar.
(3) Offences under this Act may be tried summarily.
CHAPTER XIV JURISDICTION 78 Indemnity.—No suit, proceeding or prosecution whatever shall lie against the Registrar or anv person acting on his authority, or against any liquidator in respect^of anything "done or purport ing to be done in good faith under this Act.
79 Bar to jurisdiction of Courts.—-(1) Save as provided in this Act, no Civil or Revenue Court shall have any jurisdiction in respect of— • J
(a) registration of a registered society or its bye-laws or amendments.-sif bye-laws; or
(b) the dissolution of a managing or controlling body and the management of the affairs of the society on dissolution thereof; or
(c) any dispute referred to the Registrar; or
(d) any mat te r in relation to the winding up and dissolution of a regis tered society.
(2) Save as provided in this Act, no order, decision or award under this Act, or working of the affairs of a registered society shall be liable to be challenged,.
set aside, modified, revised or declared void in any court on any ground wha t soever except on grounds of jurisdiction.
80 Appeal or review.— (1) Except where otherwise expressly provided t o ^ the contrary an appeal shall lie to the Registrar from the decisions made under this Act or rules framed thereunder by any Government Officer, liquidator or non-official helper appointed under sub-section (3) of section 3.
(2) The Registrar may review any order passed by him at any time within two months from the communication of such order.
(3) Save as provided in this Act or rules, no appeal shall lis to the Chief Commissioner of Manipur against any order, of the Registrar, except on a ques tion of law. and provided such appeal is preferred within two months of the communication of such order. ___ r .
(4) Any appellate authori ty and the Registrar in case of review may pais*-"- any stay order pending any appeal or review before such an authority, and • may award costs against any par ty appealing or petitioning for review if such appeal or review petition is considered false, vexatious or frivolous by til?;
authori ty concerned. , http://suc.li c 81 Power 'o f attachment of property,—Where the Registrar or, such JPj*W*l officer aT may have powers delegated to him under sect ion,83 is satisfied that anv person holding proper ty within his jurisdiction with mteni to defeat or ^ S v tne execut o? of any order under a Co-operative demand certificate ior recovery of dues; or wi th intent 1', avoid payment of clues from such person under this Act, rules or bye-laws—
(a) is about to dispose of the whole or any par t of such property; or
(b) is about to remove the whole or any par t of such property from the local limits of the jurisdiction of the Registrar or of such gazet ted officer may, unless adequate security is furnished, as he may requi re direct" the conditional a t tachment of the said property or such part thereof a s he thinks necessary, notwithstanding that the claimant or owner of the property may reside elsewhere, and such attachment Khali have the same force and effect as if it had been made by a competent Civil Court and shall continue in force until wi thdrawn or cancelled.
82 Registrar to be Civi* Court for certain purposes.—Thei Registrar or any •nerson empowered by h im in this behalf shall be deemed, when exercising any bowers under this Act for the recovery of any amount by at tachment and sale or bv the sale without at tachment of any property, or when passing any orders on any application made to him for such recovery or to take any step-in-aia of such recovery, to be a Civil Court for tire purpose of Article 182 of the First Schedule t o ' t h e Indian Limitation Act, '1908 (IX of 1908).
83 Recovery of sums Hue..— (1) All dues recoverable under this Act or Rules framed thereunder shall be reduced to lire form of a Co-operative demand certi ficate as in Schedule A, over the signature of the Registrar or of such gazetted officers as may have powers delegated to them by the Registrar in this behalf and shall be recovered as an arrears of land revenue and shall be paid to the certificate holder or his authorised nominee. Such certificate shall be in the name of the claimant and shall be delivered to him.
*** , *** ***
(3) For the purpose of this section a member of: an affiliated society shall be deemed to be a member of the affiliating society and loans due to the affiliated Society shall be deemed also to be loans due to the affiliating society to the extent that loans from the affiliating society to the affiliated society are outstanding and cannot be recovered from the ' affiliated society directly, provided that not more than one demand certificate may be executed against a single loan.
84. Registrar may order a meeting of creditors.—(1) Notwithstanding any thing contained in this Act, where a compromise or ar rangement is proposed bet ween a registered society and its creditor or creditors or any class of them the Registrar, upon an application made by a registered society or by liquidator in case of a society in respect of which an order has been passed for the winding up thereof, or by a creditor or creditors or any class of creditors, may order a meeting of the creditors.
(2)_If a majori ty in number of creditors or the class of creditors as the case may be, represent ing claims to three-fourths of the debts due by the society to the creditors or class of creditors, at a meeting agree to any compromise or arrangement and if the Registrar agrees to such compromise or arrangement and gives his sanction then the compromise or the ar rangement shall be binding on all the creditors or class of creditors and also on the society or on the liqui dator in the case of a societ;/ in respect of which an order has been passed for the winding up thereof, and on all persons who may be required by the liquida tor to contribute to the assets of the society.
CHAPTER XV MISCELLANEOUS
85. Society to be a body corporate.—Every registered society shall be deemed to be a body corporate by the name under which it is registered, with perpetual succession and a common seal, and with power to hold property, to enter into contracts, to inst i tute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted.
oa p 0 „ ; ^ B r rrf -^(•••mhrv?—Anv register or list of members or shares kept by a n y ' r e g l S ^ d s o c i e t a l ! b e ^ p S a f a d , evidence of any of the fo l lowing part iculars entered therein—
(a) the date on which the name of any person was entered m such regis ter or list as a member; and
(b) the date on which any such member ceased to be a member.
"7 Ktttrfes in books of registered society sfcall ' lie received as pr ima facie ^ I L c e - m A copy of any entry in a book of registered society, regularly k l b t b f "the course S business shall, if certified by the Chairman or Secretary ^ L ^ o c i l t y be received in any suit or legal proceeding as prima facte evidence of the e ^ e n c e of such entry, and shall be admit ted as evidence of the m a t e r s , "ansac i ions ana accounts therein recorded in every case where, and to the same extent as the original entry itself is admissible.
m No officer or liquidator of a registered society and no officer m whose office the bocks of a registered society are deposited after liquidation shall m any legal proceedings to which the society or the liquidator is not a party, be competed to produce any of the society's books the contents of which can be S S v e d under sub-section CD or to appear as a witness to prove the mat ters , transactions; and accounts therein recorded, unless specially so directed by an order of the Court or the arbitrator.
88 Savsaffs of esist.it.ig societies.—(1) Every society existing at the com mencement of this Act which has been registered or deemed to have been regis tered undei the Manipur Co-operative Societies Act, 1947, shall be deemed to be i e J s t °Ted under this Act; and its bye-laws s h a l l m so far as they are not inconsistent with the provisions of this Act continue in force unt i l altered or rescinded and shall to such extent be deemed to be registered under this Act.
m AU appointments rules and orders made, notifications and notices issued, a l l transactions entered into and all suits and other proceedings insti tuted under the said Act shall continue and shall, so far as may be, be deemed to have been respectively made, issued, entered into or insti tuted under this Act.
89 Construction of references to Act, I I of 1912.—All reference to the Cooperative Societies Act, 1912, or the Manipur Co-operative Societies Act, 194?
occuring in any enactment made by any authori ty in India and for the t ime be tas in force in Manipur shall, in the application of any such enactment there - to" be construed as references to this Act; and anything done, or any p r o c e e d ins commenced in pursuance of such enactment on or after the commencement of this Act shall be deemed to have been done or to have commenced arid to have had effect as if the reference in such enactment to the Co-operative Socie ties Act 1912, or the Manipur Co-operative Societies Act, 1947 had been a refer ence to this Act, and no such thing or proceeding shall be deemed to have been invalid on the ground that such enactment did not refer to this Act.
GO. Act 1 of 1956 not to apply.—The; provisions of the Companies Act, 1956 shall not apply to registered societies.
91 Acts of Societies, etc., not to be invalidated by certain defects.—(1) No act of a registered1 society or of a managing or controlling body or of any officer \ or liquidator done in good faith in pursuance of the business of the society shall,.
be deemed to be invalid by reason only of some defect subsequently discovered^ In the organisation of the society or in the constitution of any such body or m the appointment or election of the officer or liquidator or on the ground tha t such officer or l iquidator was disqualified from appointment.
(2) No act done in good faith by any person appointed under this Act shall be invalid merely by reason of the fact that his appointment has been cancelled or in consequence of any order subsequently passed under this Act.
(3) The Registrar shall decide whether a n y . a c t was done in good faith in pursuance of the business of a society.
92 Power to exempt societies from provisions of the Ac t—The Chief Coj*- • - „, nf Mmini i r mav bv general or special order, exempt any registered s o c l t y V i l f s T T l e S ^ e r e f societies from any of the provisions of this Act or may direct that such provisions shall apply to such society with such modifi cations as may be specified in the order.
.. i i 4 http://esist.it.ig M* ft 93 Rules and bye-laws not to be deemed to go beyond the Act—Rules framed under this Act and bye-laws registered under this Act shall not be deemed to go beyond the provisions of this Act if their effect is not to lessen the degree oi control expressly provided for in the Act.
94. Power to exempt societies', tx&m conditions as to registration.—Notwith standing anyth ing contained in this Act, the Chief Commissioner of Manipur may by" special order and subject to such conditions, if any, as he may impose, exempt any society from any of the requirements of this Act as to registration.
95. Power to order recoupment oi' expenditure.—Notwithstanding anything contained in any lawr for the t ime being in force the Chief Commissioner of Manipur may, by a general or special order, r equ i re of every registered society or a class of registered societies to make contribution of such sum annual ly to De fixed by the Registrar towards of the recoupment of administrat ive expendi ture incurred by the Government in respect of inspection, supervision and guid ance of. a society or class of societies or of any service to such society or class of societies.
96. Power to seize records of society.-—(1) If the Registrar or any person authorised by h im in this behalf while making audit, inspection, inquiry or supervision as the case may be, believes or has reason to believe that the regis tered society is not keeping or maintaining the accounts, books and records of the society proper ly or finds or reasonably suspects gross negligence of duties, misappropriat ion or misuse of funds of the society, i r regular i ty in recording proceedings - or keeping accounts or books he shall have power to take posses sion of any of all books, registers or documents, cash in hand or account books of the society and remove such seized proper ty or keep in proper custody such seized proper ty till it is disposed of in any manne r as may be directed by the Registrar. [
(2) The person seizing the property of the society under sub-section (1) shall prepare an inventory of the properties seized in duplicate with his s ignature and require the officer or member of the society from whose possession or custody the property is seized to put his signature in 'witness thereof and, if such officer or member -refuses to sign, then the person seizing the proper ty shall call upon two or more persons to sign the seizure list. A copy of the list prepared under this section, signed by the witnesses, shall be delivered to the officer of t he society.
(3) The Registrar shall take .immediate steps in way of audit or inspection and pass such orders as he may think fit.
(4) The administrat ive head of a civil sub-division or administrat ive area shall give police help to all officers mentioned in sub-section (1) of this section when sought for.
_§7. Power of the Managing- body of an affiliating society to enquire into the affairs of a member society.—When a registered society takes a loan from an affiliating society and defaults payment of the debt or any instalment thereof any member of the managing body of the affiliating society, may examine and look into the accounts and working of such borrowing society and report the result of his enquiry or examination part icularly with reference to the said loan to the affiliating society and may recommend any suggestion in his renort The borrowing society shall furnish such information and produce such documents books and accounts as the member of the managing body may require.
98. Limitation.—(1) Notwithstanding any of the provisions of the- Indian Limitation Act, 1908, the period of limitation for the institution of a claim to recover any sum including the interest thereon, due to a registered society by a member thereof shall be, computed from the date on which such member dies or ceases to be a member of a society.
»•, !2 ) i -T$* J i n d ^ n L i m i t a t i o n Act, 1908 (IX of 1908)', shall not apply to any debts ' , r l ab i l i ty due by any member, past member or deceased member t0 any society m respect of which an order of dissolution has been passed under this Act
100. Power to makes rules.—The Chief Commissioner of Maninur mav srfW previous publication, make rules to carry out the purpose and: objeJfePof tnis 26 i Act, and such rules may provide a penalty not exceeding fifty rvrnees for a breach thereof.
V
SCHEDULE A [See Section 83.j savi Co-operative demand certificate, granted under section 83(1) of the As Co-operative Societies Act, 1949 (Act I of 1950)., as extended to Manipur.
(To be realised as an arrear of land revenue bv the Revenue authori ty within whose jurisdiction the judgement debtor 's property is s i tuated) .
CASE No. of 19 DISTRICT / SUB-DIVISION.
In the mat ter of , Versus Whereas has1 madei a reference in writ ing to me comulaAnine/ determining as a result of my personal inspection I decide that a sum nf Rs- (Rupees • -) by way of under section nf the Assam Co-operative societies Act, 1949 (Act I of .1.950) as extended to Mainour and a sum of Ha —— (Rupees ) by way of interest i s /are due from you and you have evaded payment of the same and whereas a notice nf demand calling on you to pay the dues within the specified time was served with notice to show cause; t u u i And whereas you have not paid up your dues specified in the notice* And whereas you have not submit ted explanation / you r explanation is un satisfactory;
Now, therefore, I, under authori ty of sub-section (1) of section 83 of + W Assam Co-operative Societies Act, 1949 (Assam Act I of 1950) as extended tn Manipur do hereby order that the above mentioned sum of Rs —- i s flUB fn th~ above named from you and that you will pay further interest on the nrtoeinal per cent, pe r annum from . *-.- .# "< sum at the ra te of all cost till the date of realisation.
I fur ther order that right, title and interest of together with •set out and described in the Schedule* below' be" so 'h faTan ar rear of^a i id '? Ivenue under the provisions! of the Assam Land and Revenue Regulation, 188S (Hernia t ion i of 18.86), as extended to Manipur and that, if thf sale proceeds shoufd be found m s i ^ c i e n t to d]sch™Se the dues with subsequent interest at the above ra te till the date of