I • " **SR# *o tf-221 REGISTERED No. D. K » — EXTRAORDINARY
PART II—Section 3—Sub-section (ii) PUBLISHED BY AUTHORITY ••Pfo 52] Sjff ^ i N t j $W%*» WF6F 15, 19 65/^TeTTFr 2-4, ISSff Ho. 52] NEW DELHI, MONDAY, MAHCH 15, 1965'PHALGUNA 24, 1SS6 Separate pacing- is given to this Par t in order that it may be filed as a separate compilation MINISTRY OIF HOME AFFAIRS NOTIFICATION jVeiu Delhi, the 9th March .1965 S.O. OOSYATIII exercise of the powers conferred by section 10 of the Dadra and Nagar i veli Act, 1961 (35 of 1961), the Central Government hereby extends t o the Union1 terr i tory of Dadra and Nagar Haveii the Gujarat Co-operative Societies Act, 196! (Gujarat Act No. X of 1962), as at present in force In the Sta te of Gujarat, subject to the following modifications, namely:— Modified tiotis
1. (1) Any reference in the Act to a law not in force, or to a functionary not an existence, in the Union territory of Dadra and Nagar Haveii shall be construed ,as a refereiice to the corresponding law in force, or to the corresponding func tionary in existence, in that Union terri tory:
Provided that if any question arises as to who such functionary U. the decision cf the Administrator of Dadra and Nagar Haveii shall be final.
(2) Throughout the Act, unless otherwise dir.eeted.—
(a) for the words "State Government", the word "Administrator" shall be substituted and there shall also be made in any sentence in which these words occur such consequential amend men ts as the rules of grammar may require;
(h) for the words ' 'State of Gujarat", the words "Union territory of Dadra and Nagar Haveii" shall be substituted.:
( E59 ) http://dir.ee 7s owu THEi GAZETTE, O^INMA EXTRAORDINARY [PART 1 * ^
(c) for the word "State" [except where it occurs in the expression ' 'State Government" and except in Chapters V and XI and sections 67(2) and 163], the words "Union terr i tory" shall be substituted;
(d) for the words and figures "Indian Limitation Act, 1908", the words and figures "Limitation Act, 1963" shall be substituted.
2. In section 1, for sub-section (3), the following sub-section shall be substituted, namely:— "(3) It shall come into force on such date as the Administrator may, by notification in the Official Gazette, appoint; and different dates m a y be appointed for different provisions of this Act."
3. In section 2—•
(a) clause (1) shall be re-numbered as clause ( la ) and before the clause as so re-numbered, the following clause shall be inserted, namely:— "CD "Administrator" means the Administrator of the Union terri tory of Dadra and Nagar Haveli;"
(b) for clause (11), the following clause shall be substituted, namely:— "(11) "Land Revenue Code" means Organizacao Agraria for Nagar Haveli in force in the Union territory of Dadra and Nagar Haveli immediately before the commencement of this Act therein or any other corresponding law for the time being in force;";
(c) clause (22) shall be omitted;
(d) in clause (23), for the words "Gujarat State", the words "Dadra and!
Nagar Haveli" shall be substituted.
4. In sub-section (2) of section 14, for the words "State Co-operative Council",.
J he word 'Adminis trator" shall' be substituted. ,
5. In clause (d) of sub-section (1) of section 22, in the first paragraph of t section 29 and in section 43, for the words "State Government", the >*s/ords;
"Central Government" shall be substituted.
6. In sub-section (1) of section 49,— , ^
(a) in the proviso to clause (d), for the words "State Government", t h e words "Central Government" shall be substituted;
(b) for clause (g), the following clause shall be substituted, namely;— "(g) the Record of Rights relating to the land shall include the particulars, of every charge on land or interest created under a declaration under clause (a) or clause (b) , ; .
7 In Chapter V and in sections 80, 82(3), 36(5) (i) and 95(2). for the words- "State Government", wherever they occur, the words "Central Government" shall' be substituted.
3. In section 66. in sub-section (2), the words 'to contribution to the educa tional fund of such federal co-operative society as the State Government may ^ t.y notification in the Official Gazette specify as "the Gujarat State Co-operative Union" to the payment of rebate on the basis of support received from members and persons who are not members to its business and subject to the prescribed:
conditions to payment of honoraria, ' shall be omitted.
" ' ( f t
9. Section 69 shall be omitted.
10. In section 70, the words and figures "and for the educational fund as pro vided in section 60," shall be omitted, and for clauses (a) ancl (b) , the words "of the Administrator" shall be substituted,
11. In section 71. in sub-section (2). for the words "State Co-operative Council1', the word "Administrator" shall be substituted,
12. In section 81, for the word "administrator" or "administrators" wherever it occurs, the words "Special Officer" or "Special Officers",, as the case may be..
a hall be substituted.
SEC". „(ii)] THE GAZETTE OF INDIA EXTRAORDINARY ~fffl
13. In section 90, in sub-section (1), for the words "Consolidated Fund of the Jltate", the words "Consolidated Fund of India" shall be substituted.
14. In the proviso to section 103 and in section 105, for the words "the Collec tor", wherever they occur, the words "the Mamlatdar" shall be substituted.
15. In section 106,—
(a) in sub-section (1), the words and figures "as denned under the Bombay Agricultural Debtors Relief Act, 1947", shall be omitted;
(b) for sub-section (4), the following sub-sections shall be substituted, namely:— "(4) Until the arrears due to the Society together with interest and any incidental charges incurred in the recovery of such arrears are paid, or security for payment of such ar rears is furnished to the satis faction of the Registrar, it shall be lawful for the Mamlatdar and the Registrar to take the following precautionary measures, namely;—
(i) to prevent the crop being removed from the land;
(ii) (a) to require that the crop growing on any land liable to the pay ment of arrearsi due to the society shall not be reaped until a notice in writing is given to the Mamlatdar or the Registrar, as the case may be. in this behalf, with an acknowledgment of its receipt;
(b) to direct that no such crop shall be removed from the land on which it has been reaped or from any place in which it may have been deposited without the written permission of the Mamlatdar or the Registrar;
to cause watchmen to be placed for any such crop to prevent the unlawful reaping or removal of the same, and to realise the amount required for the remuneration of the said watchmen at such rate not exceeding the rate of pay received by such watch men as an arrear of land revenue due in respect of the land to which crop belongs.
(5) The Mamlatdar 's or Registrar's orders under sub-clause (a) or (b) of clause (ii) of sub-section (4) may be issued generally or in individual cases. If the order be general. It shall be made known by public proclamation to be made by beat of drum in the village and by affixing a copy of the order in the Patelad or some other public building in the village. If it be to individual holders, a notice thereof shall be served on each holder concerned.
(6) Any person who shall disobey any such order after the same has been so proclaimed, or a notice thereof has been served upon him, or who shall within the meaning of the Indian Penal Code (45 of I860), abet the disobedience of any such order, shall be liable, on convic tion after a summary inquiry before the Mamlatdar, to a fine not exceeding double the amount of land revenue due on the land to which the crop belongs in respect of which the offence is committed,
(7) The Mamlatdar or Registrar, as the case may be, shall not defer the reaping of the crop nor prolong its deposit unduly, so as lo damage the produce, and if wilhin two months after the crop has been deposited the dues have not been discharged, he shall either release the crop and proceed to realise the revenue in any other manner authorised by law. or take such portion thereof as he may deem fit for sale in the prescribed manner and release the rest.".
Hi, In section I IS, in the proviso, clause (b) shall be omitted.
17. In section 116.—
(a) in clauses (iii) and (iv). the words "in uny part of the Sta ts" shall be omitted;
(b) in Explanation 2, in clause (m>, the words "or any other correspondinc law for the time being; in force" shall be inserted at the end.
(c) THE GAZETTE OF INDIA EXTRAORDINARY [ P A B ^ I I -
13. In sections 119, 120 and 141, for the words "State Government" wherever they occur, the words "Central Government" shall be substituted,
19. In section 130, for the word "Collector", the word "Mamlatdar" and for the word "Commissioner" the words "Collector. Dadra and Nagar Haveli" shall be substituted.
20. In section 139, in sub-section (3), for the words and figures "It shall be lawful for the Collector to take precautionary measures authorised by sections 140 to 144 of the Land Bevenue Code", the words and figures "It shall be lawful for the Mamlatdar to take the precautionary measures authorised under sub section (4) of section 10b'" shall be substituted.
21. In clause (i) of sub-section (1) of section 147, for the words "State Gov ernment", the words "Central Government, Administrator" shall be substituted.
22. In sub-section (1) of section 150, for the words "Gujarat State Co-operative Tribunal", the words "Dadra and Nagar Haveli Co-operative Tribunal" shall b substituted, •
23. Section 15S shall be omitted.
24. In section 160. for the words "State Co-operative Council", the word 'Administrator" shall be substituted.
25. In section 162. in clause (b) . the words "or to any panchayat constituted under any law relating to panchayats for the time being in force" shall be omitted,
26. In section 163—
(a) in sub-section (1), for the words "in any other State", the words » "elsewhere in India" shall be substituted;
(b) in sub-section (2), for the words "in any other State", the words "else- - where in India" and for the words "Registrar of the State", the words "Registrar of the State or Union terr i tory" shall be substituted.
27. In section 164, for the words "an administrator", the words "Specia ^Officer" shall be substituted.
28. In section 163, sub-sections (4) and (5) shall be omitted,
29. Section 169 shall be omitted.
ANNEXURE GUJARAT CO-OPERATD7E SOCIETIES ACT, 1981 A 3 EXTENDED TO THE UNION TERRITORY OF DADRA AND NAGAR HAVELI (GUJARAT ACT NO. X OF 19621
CHAPTER I PRELIMINARY
1. Short title, extent anil commencement.— (I) This Act may be called the'*1*' Gujarat Co-operative Societies Act, 1961.
(2) It ex lends to the whole of the Union territory of Dadra and Nagar Haveli.
(3) It shall came into force on such date as the Administrator may, b y - ^ t i n - cation in the Oflicial Gazette, appoint; and different dates may be appointed' 'for different provisions of the Act.
2. Definitions.—In this Act, unless the context otherwise requires,—
(1) "Administrator'" means the Administrator of the Union territory of Dadra and Nagar IFaveii:
( la ) "auditor" means a certified author appointed either by the Registrar or by a society to audit the accounts of the society;
(2) "by-laws" means by-laws registered under this Act and for the time being in. force, and include registered amendments of such by-laws;
fyw SEC ,3(ii)] THE GAZETTE OF INDIA EXTRAORDINARY V i , ^ '
(3) "Central Bank" means a co-operative bank, the objects of which include the creation of funds to be loaned to other societies;
(4) "certified author" means a person who possesses the prescribed qualifica tions and is authorised by the Registrar as an auditor under section 84;
(5) "committee" means the committee of management, or other directing body, to which the management of the affairs of a society is entrusted;
(6) "company" means a company as defined in the Companies Act, 1956, (I of 1956) and includes a Banking Company and also any board, corporation or other corporate body, constituted or established by any Central, State or Provincial Act for the purpose of the development of any industry;
(7) "co-operative bank" means a society registered under this Act and doing the business of banking, as defined in clause (b) of sub-section (1) of section 5 ef the Banking Companies Act, 1949 (X of 1949);
(8) "dividend" means the amount paid, out of the profits of a society, to a member in proportion to the shares held by him;
(9) "federal society" means a society, not less than five members of which are themselves societies;
(10) "firm" means a firm registered under the Indian Partnership Act, 1932 (IX of 1932);
(11) "Land Revenue Code" means Organizaeao Asrar ia for Nagar Haveli in force in the Union territory of Dadra and Nagar Haveli immediately before the commencement of this Act therein or any other corresponding law for time being in force;
(12) "Liquidator" means a person appointed as a liquidator under this Act;
(13) "member" means a person joining in an application for the registration of a co-operative society which is subsequently registered, or a person duly admitted to membership of a society after registration and includes a nominal, associate or sympathiser member;
(14) "officer" means a person elected or appointed by a society to any office of such society according to its by-laws; and includes a chairman, vice-chairman, president, vice-president, managing director, manager, secretary, t reasurer , mem ber of the committee, and any other person elected or appointed under this Act, the rules or the by-laws, to give directions in regard to the business of such society;
(15) "prescribed" means prescribed by rules;
(IS) "rebate" means any payment made in cash or kind, out of the profits of a society, to a member or any other person, on the basis of his contribution to the business of the society ;
(17) "Registrar" means a person appointed to be the Registrar of Co-operative Societies under this Act; and includes to the extent of the powers of the Re gistrar conferred on any other person under this Act, such person and includes an Additional or Joint Registrar ;
(18) "rules" means rules made under this Act ;
(19) "society" means a co-operative society registered, or deemed to be re gistered, under this Ac t ;
(20) "society with limited liability" means a society having the liability of its .members limited by its by-laws;
(21) "society with unlimited liability" means a society, the members of which are, in the event of its being wound up, jointly and severally liable for and in respect of its obligations and to contribute to any deficiency in the assets of the society ;
* • * * * # * a » : >
(23) -Tr ibunal" means the Dadra and Nagar Haveli Co-operative Tribunal constituted unde r this Act ;
(24) "working capital" means funds at the disposal of a society inclusive at paid-up share capital, funds built out of profits, and money raised 'by borrowing and by other means.
164 THE GAZETTE OF INDIA EXTRAORDINARY [PART-, I I - CHAFTER II "REGISTRAR AND REGISTRATION :i. Registrar and other officers and their powers.—(1) For carrying out the purposes of this Act, the Administrator shall appoint a person to be the Registrar of Co-operative Societies for the Union Territory.
(2) To assist the Registrar in his functions under this Act, the Administrator may appoint such number of Additional Registrars, Joint Registrars, Deputy Re gistrars, Assistant Registrars and other persons with such designations as he may think fit.
(3) The Administrator may, by general or special order, confer on a person or persons appointed under sub-section (2) all or any of the powers of the Regis trar under this Act.
(4) Every person appointed under sub-section (2) shall work under thu general guidance, and the" superintendence and control of the Registrar. ^,
4. Societies which may be registered,-—A society, which has as_ its object the promotion of the economic interests or general welfare of its members, or of the public, in accordance with co-operative principles, or a society established with the object of facilitating the operations of any such society, may be registered under this Act:
Provided that it shall not be registered if, in the opinion of the Registrar, it is economically unsound, or its registration may have an adverse effect upon any other society, or it is opposed to. or its working is likely to be in contravention of public policy.
5. Registration with rimited or unlimited liability.—A society may be register ed with limited or unlimited liability.
6. Conditions of He gist ration.—(1) No society other than a federal society shall be registered under this Act unless it consists of at least ten persons (each of such persons being a member of different family), who are qualified to be members under .this Act and who reside in the area of operation of the society.
(2) No society with unlimited liability shall be registered, unless all persons forming the society reside in the same town or village, or in the same group of villages.
(3) No federal society shall be registered, unless it has at least five societies as its members.
(4) Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act.
(5) The word "limited" or "unlimited" shall be the last word in the name of every society with limited or unlimited liability, as the case may be, which is • registered or deemed to be registered under this Act. ^
Explanation.—For the purposes of this section the expression "member of a family" means a wife, husband, father, mother, grand-father, grand-mother, step father, step-mother, son, daughter, step-son, step-daughter, grand-son, grand daughter, brother, sister, half-brother, half-sister and wife of brother or ir*Aibrother. .IMW
7. Fmver to exempt societies from eoadiiioiis as io registration.—Notwithstand ing anything contained in this Act, the Administrator may, by special order in each case, exempt subject to such conditions, if any, as he may impose, any society from any of the requirements of this Act as to registration,
8. Applfeatioa for registration,—(1) For the purposes of registration, an appli cation shall be made to the Registrar in the prescribed form, and shall be accom panied by rour copies of the proposed by-laws of the society. The person by •whom, or on whose behalf, such application is made, shall furnish such informa tion in. regard to the society, as the Registrar may require.
« ... 3(H)] THE GAZETTE OF INDIA EXTRAORDINARY
(2) The application shall be signed—
(a) in the case of a society other than a federal society, by at least tea persons (each of such persons being a member oil a different family) who are qualified under this Act, and
(b) in the case of a federal society, by at least five societies.
(3) No signature to an application on behalf of a society shall be valid unless the person signing is a member of the committee of such society, and is authorised by the committee by resolution to sign on its behalf the application for registra tion of the society and its by-laws; and a copy of such resolution is appended to ;the application.
9. Registration and provisional registration, certificate of registration.— (1) On receipt of an application for registration from a society—
(a) if the Registrar is satisfied that the society has complied with the provi sions of this Act and the rules as to registration and that its by-taws are not contrary to this Act and the rules, he shall register the society and its by-laws;
and
(b) if the Registrar is of opinion that the application complies with the requirements of section 8 but that its by-laws are not in conformity with the provisions of this Act and the rules, he may provisionally register the society and by an order in writing permit the society to perform such functions subject to such conditions as he may specify in the order and may also by an order in writing direct the society to amend within the period prescribed in this behalf Its by-laws so as to bring them in conformity with this Act and the rules,
(2) When a society has been provisionally registered, the Registrar shall on its compliance with the order made under clause (b) of sub-section (1) finally register it and its by-laws; and on its failure to comply with the order shall cancel its provisional registration.
(3) A provisionally registered society shall not be deemed to be a society regiE-ered under this Act.
(4) On the registration of a society, the Registrar shall issue to it a certificate of registration signed by him.
(5) A certificate of registration issued under sub-section (4) shall be con clusive evidence that the society therein mentioned is duly registered, unless it is proved that the registration has been cancelled.
(6) If t h e Registrar refuses to register the society, he shall for thwith com municate his decision with reasons therefor, tc- the person who has signed first on the application.
10. Register of societies.—The Registrar shall maintain a register in the prescribed form of all societies registered or deemed to be registered under this Act.
11. Power of Registrar to decide certain questions.—When, any question arises whether for the purpose of the formation or registration or continuance of a society or the admission of a person as a member of a society under this Act a person is an agriculturist or a non-agriculturist, or whether any person Is a resident in a town or village or group of villages, or whether two or more villages shall be considered to form a group, or whether any person belongs to Eniy particular tribe, class or occupation, the question shall be decided by the Registrar.
12. Classification of yocielies.—The Registrar may classify all societies in such manner, and into such classes, as he thinks fit; and the classification of a society under any he&el of classification by the Registrar shall be final.
13. Amendment of by-laws of society.— (1) No amendment of the by-laws of a society shall be valid until registered under this Act. For t\\". purpose of registration of an amendment of the by-laws, a copy of the amendment passed, in the manner prescribed, at a general meeting of the society, shall be forwarded to the Registrar.
THE GAZETTE OF INDIA EXTRAORDINARY [PART T^-
(2) if the Registrar is satisfied that the amendment so forwarded is not contrary to this Act or the rules, he may register the amendment:
Provided that no order refusing to register the amendment shall be passed!
except after giving the society an opportunity of being heard.
(3) When the Registrar registers an amendment of the by-laws of a society,.
he shall issue to the society a copy of the _ amendment certified by him, which shall be conclusive evidence of its registration.
(4) Where the Registrar refuses to register an amendment of the by-laws of a society, he shall communicate the order of refusal, together with his reasons therefor" to the society.
14. Power to direct amendment of by-laws.—(1) If it appears to the Registrar that an amendment of the by-laws except in respect of the name or objects cf a society is necessary or desirable in the interest of such society, he may call upon the society, in the prescribed manner, to make the amendment within such time.'
as he may specify.
(2.) If the society fails to make the amendment within the time so specified', the Registrar after giving the society an opportunity of being heard and with, the prior approval of the Administrator, may register the amendment, and shall t h e r e upon issue to the society a copy thereof certified by him. With effect from t h e date of the registration of the amendment in the maimer aforesaid, the by-lawsshall be deemed to have been duly amended accordingly; and the by- law? as amended shall be binding on the society and its members.
15. Change of name.—(1) Subject to the provisions of the rules a society may, fey resolution passed at a general meeting, and with the approval of the Registrar* change its name but such change shall not affect any right or obligation of the society, or of any of its members, or of any of the persons who have ceased to be members; and any legal proceedings pending before any person, authority or court may be continued by or against the society, under its new name,
(2) Where a society changes its name, the Registrar shall enter the ne-jj; n a m e in its place in the register of societies, and shall also amend the certificate ^f r e gistration accordingly.
16. Change of liability.—(.1) Subject to the provisions of this Act and. the rules,, a society may by passing a resolution and by amending its by-laws, change t h e form or extent of its liability.
(2) When a society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writ ing to all its members and creditors and, notwithstanding anything in any by- law or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of such notice upon him, have the option of withdrawing his investment In its shares, and his deposits and loans and cf demanding the payment of his other dues, if any.
(3) Any member or creditor who does not exercise his option within the period specified in sub-section (2), shall be deemed to have assented to the change.
(4) An amendment of the by-laws of a society, changing the form or extent of its liability, shall not be registered or take effect until, either—
(a) all members and creditors have assented, or deemed to have assented, thereto as aforesaid; or
(b) all claims of members and creditors exercising the option, under sub-sec;* tion (2) have been met in full. /*-
17. Amalgamation, transfer, division or conversion of societies,—(1) Subject to the provisions of the rules and the previous sanction of the Registrar a societymay, bv resolution passed by two-thirds majority of the members present and voting at a special general meeting held for the purpose, decide—
(a) to amalgamate with another society;
(b) to transfer its assets and liabilities, in whole or in part, to any othersociety ;
(c) to divide iiself into two or more societies;
(d) to convert itself into another class of society; or
(e) to change its object.
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(2) Where the amalgamation, transfer, division or conversion referred to In?
sub-section (1) involves a transfer of the liabilities of a society to any other socie ty, the Registrar shall not sanction the resolution of the society unless he is satisfi ed that—
(i) the society, after passing such resolution, has given notice thereof in w r i t ing to all its members, creditors, and other persons whose interests are likely to.
be affected (hereinafter, in this section referred to as "other interested persons"), giving them the option, to be exercised within one month fcom the date of the re ceipt of such notice, of becoming members of any of the new societies, or continu ing their membership in the amalgamated or converted society, or of withdrawing their investments in its shares, their deposits and loans and demanding payment.
of their other dues, if any,
(ii) all the members and creditors and other interested persons, have assenied.
to the decision, or are deemed to have assented thereto by; having failed to exer cise the option within the period specified in clause ( i ) , and
(iii) all claims of members and creditors and other interested persons who, exercise the option within the period specified, have been met in full.
(3) Notwithstanding anything contained in' the Transfer of Property Act, 1382, (IV of 1882) or the Indian Registration Act,. 1908,. (XVI of 1908) in the event of division or conversion, the registration of the new societies or, as the case mav be, of the converted society, and in the event of amalgamation, on the amalgamation the resolution of the societies concerned with amalgamation, shall in each case be sufficient conveyance to vest the assets and" liabilities of the original society o r amalgamating societies in the new societies or converted or amalgamated society, as the case may be.
(4) The amalgamation, transfer, division or conversion made under this section shall not affect any right or obligation of the societies so amalgamated, or of the society so divided or converted, or of the transferee, or render defective any legal proceedings which might have been continued or commenced by or against the societies which have been amalgamated, or divided or converted"; and accordingly such legal proceedings may be continued or commenced by or against the amalga mated society,' the converted society, tfie new societies or the transferee as the case may be.
13, Cancellation of registration of amalgamated, divided or converted societies.— Where two or more societies have been amalgamated, or a society has been divid ed or converted, the registration of such societies or society, as the case may be, shall be cancelled on the date of registration of the new society or societies so formed.
19. Reconstruction of societies.—Where a compromise or a r rangement is; pro posed—
(a) between a society and its creditors, or
(b) between a society and its members the Registrar may, on the application of the society or of any member or of any creditor of the society, or in the case of a society which is being wound up, of theliquidator, order reconstruction in the prescribed, manner, of trie society,
20. Cancellation of registration.—(I) The Registrar shall m a k e an order cante l l ing the registration of a society if it transfers the whole of its assets and liabili ties to another society, or amalgamates wi th another society, or divides itself into two or more societies, or if its affairs are wound up or it has not commenced business within a reasonable time of its registration or has ceased to function.
(2) An order made under sub-section (I) shall be published in the Official Gazette.
(3) The society shall, from the date of such order of cancellation, be deemed.
to be dissolved and shall cease to exist as a corporate body,
21. Par tnersh ip of societies.—<] j Any two or more societies may, with the pr ior approval of the Registrar, by resolution passed by three-fourths "majori ty of the members present and voting at a general theetrag of each such society, enter intopartnership for carrying out any specific business or businesses, provided that each member of each society has had clear ten days ' wri t ten notice of the resolu tion. and the date of the meeting.
(2) Nothing in the Indian Partnership Act, 1832 (XI of 1932) and the Indian Companies Act, 1956 shall apply to such partnership, 3vnJ T H E GAZETTElOF INDIA EXTRAORDINARY [PART I I -
CHAPTER n i .
MEMBERS AND THEIR EIGHTS AND LIABILITIES.
22 Person who may become member.—(1) Subject to the provisions of section •25, no person shall be admitted as a -member of a society except the following, -ihat is "to s a y - fa) an individual, who is competent to contract under the Indian Contract Act, 1872.—IX of 1872,
(b) a firm company, association or a society registered under the Societies Registration Act, I860—XXI of 1860.
(c) a society registered, or deemed to be registered, under this Act, (_d) the Central Government:
Provided that, the provisions of clause (a) shall not apply to an individual seeking admission to a society exclusively formed for the benent of students at a .school or college:
Provided further that subject to such terms and conditions as may be laid down by general or special order a firm or a company may be admitted as a member .only of such society as may be prescribed.
m Where a person is refused admission as a member of a society, the decision refusing a d m L i o n shall be communicated by the society to him within hfteen days ,of the date of the decision.
^3 Removal from membership in certain circumstances—(1) Where a person become a member of any society on his making a declaration as required by me by laws of the society or otherwise and such declaration is found to be false, then such person shall be disqualified to continue as a member of the society.
f21 Where a person continues as the member of a society notwithstanding the disqualification incurred by him under sub-section (1), he shall be removed from the society by the Registrar:
Provided tha t the Registrar shall, before making an order of removal g i v ^ t h e person an opportunity of being heard.
24 Ousn membership.—U) No society of such class as may be prescribed shall, without sufficient cause, refuse admission to membership to any person duly qualifi ed therefor under the provisions of this Act and its by-laws.
(2) Any person aggrieved by the decision of a society, refusing him admission •to its membership, may appeal to the Registrar.
<3) The decision of the Registrar in appeal, shall be final.
25 Nominal, associate and sympathiser member,—(1) Notwithstanding anything contained In section 22, a society of such class as may be prescribed may admit any person as a nominal, associate, or sympathiser member:
Provided that the total number of associate and sympathiser members in a society shall not exceed ten per cent, of the total number of memoers thereof.
m A nominal associate or sympathiser member shall not be entitled to any -hare in any form whatsoever, in the assets or profits of the society. SufaMutta the ?rovisfons of sub-section C6) of section 28 a nominal, associate o r j m > f t t a V member shall have such privileges and rights o a member and be subject to sucb liabilities of a member, as may be specified m the by- laws of the society. - - y 26 Cessation Of membrsrahipr-A person shall cease to be a member of a society on Ms resignation from the membership thereof being tendered m wri t ing . to the -ocietv arid accented bv the society or on the transfer of the whole of h is share or f n t e r S t ^ r t h e society to another member, or on his death, or removal or expulsion from the society:
Provided that, the resignation of a person from the membership of a ¥*&£& .if such member is not In debt to the society or is not a surety for an unpaid debt due to the society, shall unless it is accepted earlier be deemed to have been accepted on the expiry of one month from the date of his tendering his resignation in writ ing to the • society.
SEC. 3(h)] THE GAZETTE OF INDIA EXTRAORDINARY I69
27. No rights of membership to be exercised till due payments arc made — Iso person shall exercise the rights of a member of a society, until he has made such payment to the society in respect of membership, or acquired such interest m the society, a s may be prescribed by the rules, or the by-laws of such society.
28 Voting powers of members.—(1) No member of anv society shall have more than one vote in its affairs:
Provided that, in the case of an equality of votes the chai rman shall have a
(2) Where a share of a society is held jointly by more than one person only the pe r son whose name stands first in the share certificate, shall have the r ight LLJ V U L-CH
(3) A society, which has invested any par t of its funds in the shares of another society, may appoint one of its members to vote on its behalf in the affairs of the other society, and accordingly such member shall have the r ight to so vote.
(4) A company which has invested any par t of its funds in the shares of a .society, may appoint one of its directors or officers to vote on its behalf in the affairs of such society, and accordingly he shall have the r ight to so vote.
(5) Where a firm has invested any ca r t of its funds in the shares of a society heha lTof ° the S f i rm r t n e r S 3 h a 1 1 h& e n t f f l e d t o v o t e i c t h e a f f a i r s o f t h e s 0^ty on
(6) A nominal, associate, or sympathiser member of a society shall have the Tight 01 vote if such right is conferred on him by the bye-laws.
(7) The voting rights of members of a federal society shall be regulated by the rules, and b y the by-laws of the society.
29 Restrictions of holding on sha res—In any society, no member other than the Central Government or a society, shall hold more than such portion not exceeding one fiith of the total share capital of the society as may be prescribed:
Provided that the Administrator may, by notification in the Official Gazette specify in respect of any class of societies a higher maximum than one-fifth of ine share capital,
30. Restrictions on transfer of share or interest.—CI) Subject to the provisions of section 29 and sub-section (2) a transfer of. or charge on, the share or interest •of a member in the capital of a society shall be subject to such conditions as may be prescribed.
(2) A member shall not transfer any share held by him, or his interest in ihe capital or property of any society, or any par t thereof, unless—
(a) he has held such share or interest for not less than one year ;
(b) t h e transfer or charge is made to the society, or to a member of the society, or to a person whose application for membership has been accepted by the society; and
(c) the committee has approved such transfer.
31. Transfer of interest on death of memher.—<1) On the death of a member of a society the society, shall subject to the provisions of sub-section (2) transfer his share or interest in the society to a person or persons nominated bv such member in accordance with the rules or, in the absence of such nomination to such person as may appear to t he Committee to be the heir or legal representa tive of such member.
(2) No such transfer shall be made unless such nominee, heir or Ier>'al representat ive, as the case may be, is duly admitted as a member ' of the society.
(3) Notwithstanding anything contained in sub-section (2), any such nominee heir or legal representative, as the case may be, may require the society to uay to him the value of the share or interest of the deceased member ascertained as prescribed.
(i) A society may pay all other moneys due to the deceased member from tae society to such nominee, heir or legal representative, as the case may be.
T H E GAZETTE) OF INDIA EXTRAORDINARY [TAKI H- foi All transfers and payments duly made by a society in . accordance wi th t h e ^ r o v i o n r o A h i s s e c L n , shall be valid and effectual against any demand made upon the society by any other person.
s t a l l net have the r ight of voting.
th) A nerson under any such disability as is. referred to in clause (a) shalU ( £ . I S ceasing furnish to the society a declaration of his will ingness S & ^ k t t i f f i j f e S 3 such declaration the society, notwithstanding anvth in^ c o n E d in this section may, and if it > a cooperative housing society smytning coraawueu. g* w 0 member if he is not otherwise disqualified. A n e i ^ i f s o adSft ted S l l h b e c o m e * enmied to all the rights and privileges of a L e i X r and become subject to liabilities like any other member of the society.
32 Share or interest not liable to attachment—-The share or interest of a member in the capital of a society, or in the loan-stock issued by a housing f n ^ f f m in the funds raised by a society from its members by way of savingsdenSfts sha 1 not be hable to at tachment or sale under any decree or order oi a Court for or S? respect of any debt or liability i n u r e d by the member; and accordingly neither a Receiver under the Provincial Insolvency Act 1920 V oi 1920) no any such person or authority under any corresponding law for t h e t ime being in force, shall be entitled to or have any claim on such share or interest.
Si Rights of members to see books, etc.—(1) Every member of a society shal l be entitled to n S e c t , free of cost, at the society's office dur ing office hours, or a n v t i m e f i x e d for the purpose by the society, a copy of the Act the rules, and We b T l a w s th€ last aud i ted annual balance sheet, the profit and loss a c c o s t , a list of the members of the committee, a register of members, the mmutes of general meetings, and those portions of the books and records in which his t r actions with the society have been recorded.
(2) A society shall furnish to a member, on request in writ ing and on pay ment of such fees a 3 may be prescribed therefor, a copy of any of the documents mentioned in sub-section (1).
34 Liability of person who has ceased to *e_ member.—(1) Where a person has ceased to be a member of a society under section 26, fa) his liability in respect of any debt due by him to the society and in { respect of anv outstanding demand owing to the society by him shall continue as if he had not ceased to be a member;
CbMiis liability for the debts of the society as, they stood immediately before the date of such cessation shall, save as otherwise provided in sub-section (2), continue for a period of three years from such date as if he had not ceased to be a member;.
Provided that the liability shall attach to the estate of such person if such c e s f a t ^ was clue to his death or such person dies after his ceasmg: to be a.
member .
(2) m e r e a society is ordered to be wound up under any provisions of th is Act then the 1 ability under clause (b) of sub-section (1) of a person who h a ^ c S e d to he a member thereof within three years immediately preceding the dafe Of the order of b i n d i n g up, shall continue, until the entire liquidation proceedings are completed.
35 Insolvency of members.—Notwithstanding anything contained in the Pro* vincfal Insolvency Act. 1920. V of 1920, or any corresponding law fo the me fefeuin force the dues of a society from a member, in insolvency pioceedings « S / b S f J h a f i % H k fa order of' priority next to his dues, to Government or to a local authority.
36. Sxpnlsion of members—CD A society may, by raolutwn?|S5^ ' ^ three-fourths majority of all the members present and voting at a general * SEC. 3(h)] THE GAZETTE OF INDIA EXTRAORDINARY \ / 171 meet ing of members held for the purpose, expel a member for acts which a re de t r imenta l to the proper working of the society:
Provided that, no resolution shall be valid, unless the member concerned is •given an opportunity of representing his case to the general body, and no resolu tion shall be effective unless it is submitted to the Registrar for his approval and approved by him;
•Provided further, that the approval or disapproval of the Registrar shall be communicated to the society within a period of three months from the date at sucn submission, and in the absence of such communication the resolution shall be •effective.
(2) No member of a society who has been expelled under sub-section (X) shall be eligible for re-admission as a member of that society, or for admission as a member of any other society, for a period of two years from the date ot such expulsion-;
Provided that, the Registrar may, in special circumstances, sanction the r e - admission or admission, within the said period, of any such member as a member •of the said society or of any other society, as the case may be.
CHAPTER IV INCORPORATION, DUTIES AND PRIVILEGES OF SOCIETIES.
37. Societies to be bodies corporate.—A society on its registration shall be a body corporate by the name under which it is registered, with perpetual succession and a common seal, and wi th power to acquire, hold and dispose of property, to enter into contracts, to institute and defend suits and other legal proceedings, and to do all such things as are necessary for the purpose for which at is constituted.
.38. Address of societies.—Every society shall have an address, registered in a cordance with the rules, to which all notices and communications may be sent;
and the society shall send notice in writ ing to the Registrar of any change in the said address, within thirty days thereof.
33. Register of members.—•(!) Every society shall keep a register of its members , and enter therein the following particulars, that is to say,—
(a) the name, address and occupation of each member ;
(b) in the case of a society having share capital, the share held by each member :
'(c) the date on which each person was admit ted a member;
(d) the date on which any person ceased to be a member; and
(e) such other particular as may be prescribed:
Provided that, where a society has by or under this Act. permitted a member to transfer his share or interest oh death to any person, the register shall also show against the member concerned the name of the person enti t le to the share or interest of the member, and the date on which the nomination was recorded.
(2) The register shall be prima facie evidence of the date on which any person ; was admit ted to membership, and of the date on which he ceased to be a member,
40. Copy of an Act, etc., to be open to inspection.—Every society shall keep, at rthe registered address of the society, a copy of this Act and the rules and of its by-laws, and s list of members, open Lo inspection to the public, free of charge, dur ing office hours or any hours rbced by the society therefor.
41. Admissibility 01 copy of entry as evidence.— (1) A copy ul' any entry in any book, register ot list, regularly kept in the course of business and in the pos ses ion of a society shall, if duly certified in such manner as may be prescribed, •be admissible in evidence ©i the existence of the entry, and shall be admitted as evidence of the matters and transact ions therein recorded in every case where, and ,ro the same extent to which, the original entry would, if produced, have been -admissible to prove such matters.
THE GAZETTE OF INDIA EXTRAORDINARY [PART I I -
(2) In the case of such societies, as the Administrator may by general or special order direct, no officer of a society shall in any legal proceedings to which the society is not a party, be compelled to produce any of the society's books the con tents of which can be proved under sub-section (1) or to appear as a witness to prove the matters , transactions and accounts therein recorded, except by order of the Court or a Judge made for special cause.
42. Exemption from Compulsory registration of instruments relating- to shares and debentures of society.—Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act, 1903, XVI of 1908, shall apply—
(a) to any instrument relating to shares in a society, notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) to any debenture issued by any society and not creating, declaring, assign ing, limiting or extinguishing any right, title or interest to or in immovable pro perty, except in so far as it entitles the holder to the security afforded by a regis tered instrument whereby the society has mortgaged, conveyed or otherwise t rans ferred the whole or par t of its immovable property, or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
(c) to any endorsement upon, or transfer of, any debenture issued by any society.
43. Power to exempt front taxation.—The Central Government, by notification in the Official Gazette may, in the case of any society or class of societies, remit— fa) the stamp duty with which, under any law relating to stamp duty for the t ime being in force, instruments executed by or on behalf of a society or by an officer or member thereof, and relating to the business of the society, or any class of such instruments, or awards of the Registrar or his nominee or board of nomi nees under this Act, are respectively chargeable, _(b) any fee payable by or on behalf of a society under the law relating to ' the, registration of documents and to court-fees, for the t ime being in force, and .1*!
(c) any other tax or fee or duty (or any portion thereof) payable by or on behalf of a society under any law for the tune being in force, which the Central Government is competent to levy,
44. Restriction on borrowings.—A society shall receive deposits and loans frommembers and other persons, only to such extent, and under such conditions, as m a y be prescribed, or specified by the by-laws of the society.
45. Restrictions on making loans.—(1) No society shall make a loan to a n y person other than a member, or on the security of its own shares, or on thesecurity of any person who is not a member;
Provided that, with the special sanction of the Registrar, a society mav m a k e loans to another society. »
(2) Notwithstanding anything contained in sub-section (1) a society mav m a k e a loan to a depositor on the security of his deposit.
46. Restrictions on other transactions with non-members.—Save as is provided in this Act, the transactions of society with persons other than members, shall be:
subject to such restrictions, if any, as may be prescribed.
47. Charge and set off in respect o:f share or interest of member.—In respect of any debt to a society by any member thereof, the society shall have a charge upon the share or interest of such member in the capital of the society, upon the 'deposits.
of such member with the society and upon any dividend, rebate or profits payableto such member: and the society may set off any sum credited or payable to such.
member in or towards the payment of any such debt:
Provided that, no co-operative bank shall have a charge upon anv sum invest ed with it by a society out of the provident fund established by it under section 72, and no co-operative bank shall be entitled to set off any such sum towards allydebts One from the society.
e Uc. 3(H)] THE GAZETTE OF INDIA EXTRAORDINARY
48. Prior claim of society.— (1) Notwithstanding anything contained in any other law for the time being in force, but subject to any prior claim of Govern ment in respect of land revenue or any money recoverable as land revenue and to-1 the provisions of section 60 and 61 of the Code of Civil Procedure, 1908,—
(a) V of 1908.—any debt or outstanding' demand, owing' to a society by any member or a person who has ceased to be a member shall be a first charge upon—
(i) the crops or other agricultural produce raised in whole or in par t whether with or without a loan taken from the society by him,
(ii) cattle, fodder for cattle, agricultural or industrial implements or machine ry, or raw materials for manufacture, or workshop, god own or place of business supplied to, or purchased by him in whole or in part, from any loan whether in money or goods made to him by the society, and
(iii) any movable property which may have been hypothecated, pledged or otherwise mortgaged by him with the society, and remaining in his custody;
(0) any outstanding demands or dues payable to a society by any member or a person who has ceased to be a member, in respect of rent, shares, loans or p u r chase money or any other rights or amounts payable to such society, shall be a;
first charge upon his interest in the immovable property of the society:
Provided that the prior claim of Government in respect of dues other than land revenue, shall be restricted for the purpose of this sub-section to the assets created by a member out of the funds in respect of which, the Government has a claim.
(2) No property or interest in property, which is subject to a charge under sub-section (1) shall be transferred in any manner without the previous permis sion of the society; and such transfer shall be subject to such conditions, if any,, as the society may impose.
(3) Any transfer made in contravention of sub-section (2) shall be void, (4/ Notwithstanding anything contained in sub-sections (2) and (3), a society, which has as one of its objects the disposal of the produce of its members , may provide in its by- laws, or may otherwise contract with its members,—
(a) that every such member shall dispose of his produce through the society, and
(b) that any member, who is found guilty of a breach of the by- law or of any such contract, shall reimburse the society for any resultant loss, determined lm such manner as may be specified in the by- laws .
49. Charge on inimoyahle property of members borrowing from certain societies.—(1) Notwithstanding anything contained in this Act or in any other law for the t ime being in force,—•
(a) any person who makes an application to a society oi which he is a member, for a loan shall, if he owns any land or has interest in any land as a tenant, make a declaration in the prescribed form. Such declaration shall state that the appli cant thereby creates a charge on such land or interest specified in the declaration for the payment of the amount of the loan which the society may make to the member in pursuance ot the application, and for all future advances, if any, re quired by him which the society may make to him as such member, subject to such maximum as may be determined by the society, together with interest on 'ssuefr amount of the loan and advances;
(b) any person who has ta&eh a loan from a society of which he is a member, before the date of the coming into force of this Act, and who owns anv land or has interest in land as a tenant, and who has not already made such a declaration before the aforesaid elate shall, as soon as possible thereafter, make a declaration in tire form and to the effect referred to in clause fa) ; and no such person shall, unless and until he has made such declaration, be entitled to exercise any right as a member of the society:
fc) A declaration made under clause fa) or fb) may be varied at any t ime by a member, with the consent ot the society in favour of which such charee is c r e a t ed;
THE GAZETTE OF INDIA EXTRAORDINARY [PART I I -
(d) no member shall alienate the whole or any par t of the land or interest therein , specified in the declaration made under clause (a) or (b) until the whole amount borrowed by the member together with interest thereon, Is repaid in full:
Provided that, it shall "be lawful for a member to execute a mortgage bond in favour of a mortgage bank or the Central Government in respect of such land or • any part thereof, under the rules made under the Bombay Irrigation Act, 1879 (Bom. VII" of 1879) or under any corresponding law for the time being in force, *for the supply of water from a canal to such land: *
Provided further that, if a par t of the amount borrowed by a member is paid, t h e society may, on an application from the member, release f rom. the charge created under the declaration made under clause (a) or (b) such part of the movable or immovable property specified in the declaration as it may deem proper, with due regard to the adequacy, of the security for the balance of the amount remaining due from or outstanding against the member;
(e) any aiienation made in contravention of the provisions of clause (d'J shall be void;
(f) subject to the prior claims of the Government in respect of land revenue •or any money recoverable as land revenue, and to the charge, if any, created under .an award made under the Bombay Agricultural Debtors Relief Act, 1947 (Bom.
"XXV of 1947) or any corresponding law for the time being in force in any part of the State, and to any mortgages created in favour of a land mortgage bank by its members there shall be a first charge in favour of the society on the land or in terest specified in the declaration made under clause (a) or (b ) , for and to the -extent of the dues owing by h im on account of the loan; and
(g) the Record of Rights relating to the land shall include the particulars of •every charge on land or interest created under a declaration under clause (a.) or •clause (b ) .
(2) For the purpose of this section, the expression "society" means— -̂
(i) any society, the majority of the members of which are agriculturists, "and the primary object of which is to obtain credit for its members, or (i.i) any society, or society of the class of societies, specified in this behalf by .the Administrator by a general or special order.
50. Deduction from salary to meet society's claim in certain cases,—(1) A -member of a society may execute an agreement in favour of the society, providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement, and to pay to the society the amount so deducted iti satisfaction of any debt or other demand of the society against the member.
(2> On the execution of such agreement, the employer shall, if by a requisi tion in writ ing so required by the society and so long as the society does not intimate that the whole of such debt or demand has been paid, make the deduc tion in accordance with the agreement notwithstanding anything to the contrary contained in the Payment of Wages Act. 1936 (IV of 1936) and pay the amount so deducted to the society, as if it were a part of the wages payable by him as required •under the said Act on the day on which he makes payment. In making such deduc tion and payment, it shall not be open to the employer to question the validity or otherwise of such debt or demand.
• T *
(3) If after receipt of a requisition made under sub-section (2) the employer •at any t ime fails to deduct the amount specified in the requisition from the salary •or wages payable to the member concerned, or makes default in remitt ing the ramoimt deducted to the society, the employer shall be personally liable for the payment thereof; and the amount shall be recoverable on behalf of the society from him as an arrear of land revenue on a certificate being issued by the Regis trar after holding such inquiry as he deems lit. and the amount so due shall r ank in priority in respect of such liability of the employer as wages in arroas. A certificate so issued by the "Registrar shall not be questioned in any court.
(-1) Nothing contained in this section shali y.pply to persons employed in any .rsilwLiy (within the meaning of the Constitution I , and in mines and. oil fie ids.
THE GAZETTE; OF INDIA EXTRAORDINARY [TART I I -
(2) If a society in which shares are purchased out of the Subsidiary State Par tnersh ip Fund is wound up or dissolved, nei ther the Central Government nor the Apex society shall have any claim against the Central society which purchased the shares, m respect of any loss arising from such purchase; but the Apex society shall be entitled to any moneys received by t h e Central society in liquidation pro ceedings or on dissolution, a5 the case may be, and such moneys shall be credited to the Principal State Par tnership Fund.
59. Disposal of share capital and dividend, etc.—(1) All moneys received by an Apex society in respect of the redemption of shares of other societies purchased out of the moneys in the Principal State Par tnersh ip Fund, or by way of divi dends or otherwise or by way of interest, dividend or otherwise oh the balance on that fund shall be credited to that Fund.
(2) All moneys received by a Central society in respect of the redemption of shares of P r imary societies purchased out of the moneys in the Subsidiary State Par tnersh ip Fund, or by way of dividends or otherwise or by way of interest, divi dend or otherwise on the balance of that fund, shall in the first instance be c re dited to that Fund, and then transferred to the Apex society which shall credit them to t h e Principal State Par tnership Fund.
(3) All moneys and dividends referred to in sub-sections (1) and (2) shall notwithstanding tha t the shares stand in the n a m e of the Apex society or the}.
Central society, as the case may be, be paid to the Central Government .
(4) Save as provided in siib-section (3), the Centra l Government shall not ba entitled to any other re turn on the moneys provided by it to an Apex society under section 52.
GO. Disposal of Principal or Subsidiary State Par tnersh ip Fend om winding up of Apex or Central society.—(1) If an Apex society which has established a P r i n cipal State Par tnership Fund is wound up or dissolved, all moneys at the credit of, or payable -to that Fund, shall be paid to the Central Government.
(2) If a Central society which has established a Subsidiary State Pa r tne r sh ip Fund is wo mid up or dissolved, all moneys at the credit of, or payable to t h a t Fund, shall be paid and credited to the Principal Sta te Par tnersh ip Funil, irom.
which it received moneys under clause (b) or sub-section (2) of section 53.
81. Principal or Subsidiary Sta te Partnership Fund not to form par t of assets.— Any amount a t the credit of a Principal State Par tnersh ip Fund or a Subsidiary State Par tnersh ip Fund shall not form par t of the assets of the Apex society or the Central society, as the case may be.
62. Agreement by Central Government a n d Apex societies.—Subject to t h e foregoing provisions of this Chapter—
(a) the Central Government may enter into an agreement with an Apex society setting out the te rms and conditions on which it shall provide moneys to the Apex society for the purpose specified in section 52;
(b) an Apex society may, wi th the previous approval of the Central Gov ernment, enter into an agreement with a Centra] society, sett ing out the terms and conditions on which it shall provide moneys to that society from the Principal State Par tnership Fund for the purpose specified in clause (b) of sub-section (2) of section 53.
63. Other forms of State nid to societies.—Notwithstanding anything contained in any law for the t ime being in force, but subject to such conditions as the Cen t ra l Government b y general or special order may specify in this behalf, the Central Government may,—
(a) give loans to a society-
(b) guarantee the payment of the principal of debentures issued by a society, or of interest thereon, or both, or the repayment of the share capital of a society to its members, or the payment of dividends thereon at such rates as may be specified by the Central Government;
(c) guar an tes the repayment of the p r indna l of, and the nayment off interest on, means given by a Co-operative Bank to a society;
(d) guarantee the repayment of the principal of, and payment of interest on, loans and advances given by the Reserve Bank of India or t h e Industr ial Finance Corporation of India, or any other authority const i tuted under any law for the t ime being in force, or Ce) provide financial assistance, in any other form (including subsidies) to a society. "' %m, S(ii)3 THE GAZETTE OF INDIA EXTRAORDINARY 9fb
CHAPTER V STATE AID TO SOCIETIES
51. Direct partnership of Central Government in societies.—The Central Government may subscribe directly to the share capital of a society with limited liability.
ggr Indirect partnership of Central Government in societies.—The Central Government may. under appropriation made by ]aw : provide moneys to a society for the purchase directly or indirectly, of shares in other societies with limited liability. ' A. society to which moneys ape so provided for the aforesaid purpose is hereinafter in this Act referred to a s / an "Ape:-; society".
53. Principal Stats Par tnersh ip Fund.—(1) An Apex society shall, wi th the moneys provided under section 52 establish a Fund to b e called the 'Pr inc ipa l Stale" Partnership Fund".
(2,) An Apex society shall utilise the Principal State Par tnersh ip Fund for the purpose of— (aJ directly purchasing shares in other societies with limited liability;
To) providing moneys to a society to enable that society (hereinafter in this Chapter referred to as a ' 'Central society1') to purchase shares in other societies with limited liability (the latter societies being hereinafter in this Chapter referred to as "Primary Societies");
(c) making payments to the Central Government in accordance with the provisions of this Chapter;
and foe no other purpose.
54. Subsidiary State Par tnership Fund.—(1) A Central society which is jprovided with moneys by an Avex society from the Principal State Par tnersh ip Fund shaH-J'with such moneys establish a Fund to be called the "Subsidiary Sta te P a r t nership Fund".
(2) A Central society shall utilise the Subsidiary State Par tnersh ip Fund for the purpose of
(a) purchasing shares in primary societies;
(b) making payments to the Apex society in accordance with the provisions of this Chapter;
and tar no other purpose.
55. Approval of Central Government for purchase of shares.—Shares shall not be purchased in a society from the moneys in the Principal Sta te Par tnersh ip Fund or the Subsidiary Sta te Par tnership Fund, except with the previous approval of the Central Government.
56. Liability to be limited in respect of certain shares.—Where any shares are purchased in a society by—
(a) the Central Government, or
(b) an Apex societv from the Principal State Par tnership Fund, or a Cen tral society from the Subsidiary State Par tnership Fund, as the case may be, t hen in the event of the winding up of such society the liability in respect of such scares shall be limited to the amount paid in respect of such shares.
B7 Restriction on amount of dividend.—An Apex society which has purchased shares in other societies from the moneys in the Principal State Par tnership Fund, and a Central society which has purchased shares in Pr imary societies from the moneys in the Subsidiary State Par tnership Fund, shall be entitled only to such dividend on the said shares as is declared by the society concerned and is payable to ether shareholders of tha t society 53 Indemnity sf Ape?: and Central Societies.—(1) If a society in which shares are purchased out of the Principal State Par tnership Fund is wound up or dissolv ed the Cent'-al Government shall not have any claim against the Apex society which purchased the shares in respect of any loss arising from such purchase; but She Central Government shall be entitled to any moneys received by the Apex society LIS liquidation proceedings or on dissolution, as the case may oe.
I \ && 3(h)] THE GAZETTE OF INDIA EXTRAORDINARY V ^ATT
64. Provisions of this Chapter to overr ide o ther laws.—The provisions of sec tions o2 to 62 (both inclusive') in this Chapter shall have effect no twith standing anything inconsistent therewith contained in any other law for the t ime bein^ in force. °
CHAPTER VI PROPERTY J\ND FUNDS OF SOCIETIES
85. Fuml not to he divided.—(1) No par t of the funds or assets of a society other than t h e dividend equalisation fund, if any, and the net profits thereof shall be paid by way of rebate or dividend or otherwise distributed, t c its members:
Provided tha t in the case of a member, who is also a salaried servant) of the society payment on such. scale as may be laid down bv the by-laws may be made to him for work done as such servant.
(2) No honorar ium shall be paid out of the funds and assets of a society other than the net profits and such honorarium shall not exceed the prescribed limit.
66. Appropriat ion of profits.—(1) A society earning profit, shall calculate i ts annual net profits by deducting from the gross profits for the year, all accrued interest which is overdue for more than six months, establishment charges, con tributions, if any. towards the provident fund and gratuity fund of its employees, interest payable on loan and deposits, audit fees, working expenses including repairs, rents, taxes and depreciation, and after providing for or wr l t ine off bad deb is and losses not adjusted against any fund created out of profits. A society may, however, add to the net profits for the year, interest accrued in the preceding years, but actually recovered during the year. The net profits thus arrived at, together with the amount of profits brought forwarded from' the previous vear shall be available for appropriation.
(2) A society may appropriate its profits to its reserve fund or any other fund' created by it to payment of dividends to members on their shares,' and to any other purpose "which may be specified in the ru les or by- laws:
""^ovided that , no part of the profits shall be appropriated except with t h e approval of the annual general meeting and in conformity with the Act, rules and by-laws.
67. Reserve Fund.— (1) Every society which does, or can, derive a profit front pts transactions, shall maintain a reserve fund,
(2) At least one-fourth of the net profits of the society each year, shall be carried to the reserve fund; and such reserve fund may be used in the business of the society or may, subject to the provisions of section 71, be invested, as the Administrator may by general or special order direct, or may, wi th the previous sanction of the State Government, be used in par t for some public purpose likely to promote the objects of this Act. or for seme such purpose of the State, or of local interest:
Provided that if the Registrar is satisfied that financial condition of the society is such that it is unable to carry to its reserve fund an amount upto the aforesaid limit of one-fourth of its apt profits, he may by order in writ ing, for such period as he may specify in the order, fix for the society a limit lower than the aforesaid' limit but not lower than one-tenth of its net profits.
(3) Where the reserve fund of a society exceeds its authorised ;diare capital,.
then, notwithstanding anything contained in sub-section U ) . the society may, with the previous permission of the Registrar carry to Its reserve fund each y e a r r?i amount which may be less than one-fourth bu t not less than one-tenth of its.
net profits.
68. Restriction on dividend.—No society shall pay a dividend to its members at a rate exceeding 9 per cent,
70. Coafrlimtien to pnblic nitrpoKC-s,—After providing for the reserve fund as provided in section 67 a So I:'<,;•: nosy set aside a sum not exceeding twenty petcent. of its net profits, and utilise from t ime to time, with the approval of t h e Administrator,
71. Investment of fforats.— (1) A society may invest, or deposit its funds,—
(a) in a Central Bank, or the State Co-operative Bank,
(b) in the State Bank of India, THE GAZETTE OF INDIA EXTRA ORDINARY [PART II-^T-
(c) in the Postal Savings Bank, (d> in anv of the securities specified in section 20 oil the Indian Trusts Act, 1881 II of 1882.
•(e) in shares, or security bends, or debentures, issued by any other society with limited liability, or
(f) in any co-operative bank or in any banking company approved for this purpose by the "Registrar, and on such conditions as the Registrar may from time to t ime impose, Cg) in any other mode permit ted by the rules, or by genera] or special order of the Administrator,
(2) Notwithstanding anything contained in sub-section (1) . the Registrar may, with the approval of the Administrator order a society or a class of societies to Invest any "funds in a particular manner, or may impose conditions regarding the mode of investment of such funds.
72. Employees provident fund.— (1) A_ny society may establish for its employees a provident fund, into which shall be paid the contributions made by its employees and by the society. Such provident fund shall not be used m the "business of the society, nor shall" it form par t of the assets of the society: but shall be invested under the provisions of section 71 and shall be administered in the prescribed manner.
(2) Notwithstanding anything contained in sub-section (1) a provident fund established by a society to. which the Employees Provident Funds Act, 1952, XIX of 1952 is applicable, shall be governed by that Act.
CHAPTER VH MANAGEMENT: OF SOCIETIES
73. Final authority of society.—Subject to the provisions in this Act and the TLiles, the final authority of every society shall vest in the general body of mem bers in general meeting, summoned in such a manner as may be speeiflecl-Jn the by- laws: v
Provided that, where the by- laws of a society provide for the election of dele- Sates of such members, the final authority may vest in the delegates of such mem bers elected in the prescribed manner, and assembled is general meeting.
74. Committee, sis powers and functions,—The management of every society shall vest in a committee, constituted in accordance with this Act,_ the rules and by- laws, which shall exercise such powers and perform such duties as may be -conferred or imposed on it respectively by tills- Act, the rules- and the by-laws.
75. Handing oven1 records and property to new Chairman on election,—(1) On t h e election of a new committee and its Chairman, the retiring Chairman in whose place the new Chairman is elected shall hand over charge of the office of tbe> committee and all capers and property, if any, of the society in possession of the committee or any officer thereof, to the new Chairman of the committee.
CD If the retiring Chairman fails or refuses to hand over- charge or to hand over the papers and property of the society as aforesaid, the Registrar, or any person empowered by h im in this behalf, may by order in wri t ing direct 'mm to forthwith hand over such charge and. property and the Registrar may, on the1 retir ing Chairman's failure to comply with such direction, make order Cor seizing the records and property and handing them over to the New Chairman, m the manner provided "in section 33.
76. Appointment of officers and employees and their conditions of service.—The qualifications for the appointment of a manager, secretary, accountant or any otn® officer or employee of"a society and the conditions of service of such officers and employees shall be sucb as may, from time to time, be prescribed:
Provided that no qualification shall be prescribed in respect of any officer not in receipt of any remunera t ion
77. Annual general meeting,—(1) Every society shall, within a period or three months next after the da te fixed for drawing u p its accounts for the year unae r the I'ttles for the t ime being in fores, eall a general meeting of its members:
Provided that, the Registrar may, by general or special order, extend the period for holding such meeting for a further period not exceeding three months:
Provided farther that, if in the opinion of the Registrar no sueh extension Is :?.:o^!;a;y, or such meeting is not palled by the society wSthm the expended f l f g < > ^ ™ T T E OF LVD1A KXTKAORBINARV ^ ^ meeting duly called by the society. * S a U bfi d e e m « t to be S. general before the SST a?&3SSiPSS%£ LTrly< UhG <®mmm mm lay tc-such society nS « ! & * * , r e s t i v e l y to thY*exc«s S ' f f i S S ^ i g f f i K lure and excess of expenditure over income". "»*M*BS UV t_i c^ixmcu- M J J I I ^ S S * * ! ? 1 1 b e a ^ h e d to every balance sheet laid before the society in genera meeting, a report by its committee, with respect to fa) the shite niF'th* W l ««afl*; CM the amounts, if any, which it propose, to ear r* to any r £ e ve *ff i£ m K - " S h b a l a m ; e sheet or any specific balance sheet; and 7c) t h e : S [ S J any, which it recommends for payment by way of dividend, bonus o r l E S K K £ £ i S , / f l f e ' S*l « * * * * * ' * *epoft IhaB also deal with £ y X n g e * m the nature of the society's business which have occurred Surfing the year for n i l ^ L f . f a c c o u n t \ ? r e d r a ^ Lip. The committers report shall 1«P signed bv its Chairman, or any other member authorised to sign on behalf of the committer , , iiLMneVeiyJ*™31 S^neral meeting, the balance sheet, the profit and loss.
account, the auditor s report ana the committee's report, shall be placed for h v T . V r . n H ^ p " ^ ° h T b U S ^ , w i U , b e transacted as may be laid down i5 £ by-laws and of which due notice has been given.
«*»&& J S S S °mC% °f &* society, whose duty it was to call a general meeting L & i T,P ̂ " ^ s P ^ i n e d m sub-section (1) or, as the case mav be. the period extended by he Registrar under that sub-section or to comply with'sub-section U . ) , . ^ ; oi (4) fails without reasonable excuse to call such meeting or to compiv with sub-section (2), (3) or (4), then— * "V*"!*^
(i) if such officer is a servant of the society, the Registrar may by an order m writing impose on him a penalty of an amount not exceeding one hundred rupees, and
(ii) if such officer is not a servant of the society, the Registrar mav by un order in writing declare such officer to be disqualified for beinc an officer or a member of the Committee, of the society or for bein" elected or appointed to any office of the society, for such period not exceeding three years as lie may specify in tfae order:
Provided that before making an order under this sub-section the Rc i s t r a r shall give or cause to be given, a reasonable opportunity to ihe officer to show cause against the action proposed to be taken in regard to- 78 Special general meeting.--( 1) A special general meeting mav be called at w i t h m l l o n X o n m a ^ r * «*«*»*** and shall be called by the committer m on a requisition in writing of one-fifth of the members of the society or of members the number of which is specified in the by-laws for tne purpose, whichever is lower, ur
(ii) on a requisition from the Registrar, or (Hi) in the ease of a society, which b a member of a federal society on a requisition from the committee of such federal society,
(2) Where an;,' officer or a member of the committee, ftrhose dutv it w-v- +,, Mjl «W& meehn.;. mthoui . : Ho &&&, fails to call siTcii - nLt L tb Registrar mav by order declare such officer or member disqual fi4 fur beinmember of the committee tor such period not exceeding three years S he mav spec-uv m ,,,-h order; and ,r th< • cea is a servant of the snd ' iv fe'r : . U ^ en h „ n ? penalty not Oxceeding one hundred m | e S / B e S f I n a k l r i T L X w THE GAZETTE OF INDIA EXTRAORDINARY [PART II— f3) If a special general meeting of a society is not called m accordance with t t e % S A f i r r 3 t o S d to in sub-section (1), the Registrar or any person autho r e d b y h i m in that behalf, shall have power to call such meeting, wluch shall be deemed to be a meeting duly called by the committee.
(4) The Eegistrar shall have power to order that the expenditure incurred in calling a meeting under sub-section (3) shall be paid out oi the umds of the Society or by such person or persons who, in the opinion ol the Registrar, were responsible for refusal or failure to convene the meeting.
75. Acts o'i societies, etc., not to be invalidated fey certain defects.—(1) No act of a society or a qommittee or any officer, done in good iaith m pursuance ci the business of the society shall be deemed to be invalid by.reason only of some detect S S S S e S b discovered in the organisation of the society or m the constitution of the conSi t te l or in the appointment or election of an officer, or on the ground that such officer was. disqualified for his office.
(2) No act done in good faith by any person appointed under this Act the rules or by-laws shall be invalid merely by reason of the fact that his appointment has been cancelled by or in consequence of any order subsequently passed thereunder.
(3) The Registrar shall decide whether any act was done in good faith in pursuance of the business of the society; and his decision thereon shall be final.
SO Power to appoint Government nominee.—Where the Central Government Has subscribed to the share capital of a society, directly or through another society Sr has guaranteed the repayment of the. principal of and payment of m erest on debenture! S u e d or loans raised by a society, the Central Government shall have the S h t to nominate (not more than three) representatives on the committee of inch socUy m" such manner as may be determined by the Central Government tfrote S f t o t £ £ r The members so nominated shall hold office during the ritisBtixe of the Central Government, or for such period as may be speciued,;in the S d e r b v which they are appointed, and any such member on assuming offic^hall have all rights, duties responsibilities and liabilities as if he were a m e m f c of the committee duly elected.
31. Sttfetsessfatt of committee.—(i) If, in the opinion of the Registrar the casnmittee of any society persistently makes detault, or is negligent, in the per- S S e of the duties imposed on it by this Act or the rules or the by-laws or foi anything which is prfjudfcial to the interests of the society or us members rhen sub ect to the rules, the Registrar may after giving the• c o m m i t t e e a n opportunitv of statin? its objections, if any, withm fifteen days from the oate ot issue of notice, bv order in writing, remove the committee; and
(a) appoint a committee, consisting of one or more members of the society, in its place, or
(b) appoint one or more Special Officers, who need not be members of the society, to manage the affairs of the society for a period not | S ^ e d g g two years specified n t S r order, which period msy, at the discretion ot the Registrar, be extended Soin time to time, so however that the total period does not exceed four years m the aggregate.
(2) The committee or Special Officer so appointed shall subject to the control of the Registrar and to such instructions .as he may from time to t^me give haw cower to exercise all or any of the functions of the committee or ox any officer of thijT society a^d take all such action as may be required m the interests ot t - society.
I S S S r S e i S made, Urt management of the society shall be handed over to a new committee duly constituted.
m *he committee or Snecial Officer -h.il, at the expir* i » J ^ » S S * S w S W Ustmm of office, arrange for f& constitution pi g new committee in accoidance with the by-laws of the society.
m All acts fe«e Ot purported to he don- by the toffl<tea or SperW Officer during f e ^kod fem| &h the . - • -• ' a -adety are rcrrud M by ftft - . • - http://-h.il SEC, 3{ii)] T H E GAZETTE OF INDIA EXTRAORDINARY V _ ^ 1 8 1 committee or Special Officer appointed under sub-section (1), shall be binding on the new committee.
(C) Before taking any action under sub-section (1) in respect of a society, the (Registrar shall consult any co-operative financing institution to which it is indebted.
82. Registrar 's power to enforce performance of obligations.—(1) I t shall be the duty of every society to keep the prescribed books of accounts with respect to all sums of money received and expended by the society, and the mat ters in respect of which the receipt and expendi ture take place, all sales and purchases of goods by the society, and the assets and liabilities of the society, and to furnish such statements and re turns and such records to the Registrar as the Registrar may by order direct from time to t ime; and the officer or officers of the society shall be bound to comply wi th the order within the period specified therein.
(2) Where any society is required to take any action under this Act, the rules or the by-laws, or in compliance wi th an order made under sub-section (1) a n d such action is not taken—
(a) within the t ime provided in this Act, the rules or the by-laws, or the -order, as the case may be, or
(b) whe re no t ime is so provided, wi thin such time, having regard to t h e na ture and extent of the action to be taken, as the Registrar may specify by notice in writ ing, the Registrar may himself, or through a person authorised by him, take such action, at the expense of the society; and such expense shall be recoverable from the society as if it were an ar rear of land revenue.
(3) Where the Registrar takes action under sub-section (2), he may call upon any officer of the society whom he considers to be responsible for not complying wi th the provisions of this Act, the rules or the by-laws, or the order made under sub-section (1). and, after giving him an opportunity of being heard, may require h i ^ ' t o pay to the society the expenses paid or payable by it to the Centra l Government as a result of his failure to take action, and to pay to the assets of the society such sum not exceeding fifteen rupees as the Registrar may think lit for each day until Registrar 's directions are carried out.
83 Registrar 's power to seize records, etc.—Where the Registrar is satisfied tha t the books and records of a society are likely to be tampered wi th or destroyed, or the funds and property of a society are likely to be misappropriated or mis applied the Registrar may issue an order directing a person duly authorised by nirn in wri t ing to seize and take possession of such books and records, funds and property of the society, and the officer of the society responsible for the custody of such books, records, funds and property shall give delivery thereof to the person so authorised.
CHAPTER vnr AUDIT, INQUIRY, INSPECTION AND SUPERVISION 84 Auditor.—(I) The Registrar shall audit, or cause to be audited by a person possessing prescribed qualifications and authorised by the Registrar by general or special order in writing in this behalf, the accounts of every society at least once in each year . The person so authorised shall be an auditor for the purposes of this Act.
(S3 The audit under the foregoing sub-section shall include an examination of overdue debts, if any, the verification of the cash balance and securities, and a valuation c.f the assets and liabilities of the society.
(3) The Registrar ov the auditor shall, for the purpose of audit , at all t imes have access to all the books, accounts, documents, papers, securities, cash a n d other propevties belonging to, or in the custody of, the society, and may summon any person In possession OE responsible for the custody of any such books, accounts, documents, papers, securities, cash or other properties, to produce the same at any place' at the headquar ters of the society or any branch thereof.
(4) Every person who is, of bas at any t ime been, an officer c r employee cf the society, and every member and past member of the society shall furnish such information in regard to the transactions and working or the society as the Registrar, or the auditor may require.
THE GAZETTE! OF INDIA EXTRAORDINARY [PA KT 11^"
(5) The auditor shall have the right to receive all notices, and every com munication relating to the annual general meeting of the society and to attend such meeting and to be heard thereat, in respect of any part of the business with which he is concerned as auditor,
(6) If it appears to the Registrar, on an application by a society or otherwise, tha t it is necessary or expedient to re-audit any accounts of the society the Registrar may by order provide for such re-audit and the provision of this Act applicable to audit of accounts of the society shall apply to such re-audit.
(7) For auditing the accounts of a society under this section, the society shall be liable to pay audit fee at such scale as may be prescribed.
So. Rectification of defects in accounts.—It the result of the audit held under section 34 discloses any defects in the working of a society, the society shall within three months from the date of the audit report, explain to the Registrar the defects or the irregularities pointed out by the auditor, and take steps ' to rectify the defects and remedy irregularities, and report to the Registrar I he action taken by it thereon. The Registrar may also make an order directing the society or its officers to take such action and within such time as may be spec'.tied •therein to remedy the defects. Where the society concerned is a 'member of a federal society, such order shall be made after consulting the federal society.
36. Inquiry by Registrar.— (1) The Registrar may of his own motion himself.
or by a person duly authorised by him in writ ing in this behalf, hold an inquiry into the constitution, working and financial conditions of a society.
(2) The Registrar shall hold such an inquiry—
(a) on the requisition of a society duly authorised by rules jjiade in this behalf to make such requisition, in respect of 'any of its members , such member being itself a society, or
(b) on the application of a majority of the committee of a society, or
(c) on the application of one-third of the members of a society.
(3) (a) Every Officer, member and past member of the society ha r c s p e W o f which an inquiry is held, and any other person who is in possession of inform a iron books and papers relat ing to the society, shall un being so required furnish such information as is in his possession, and produce all books and papers relating to the society which are in his custody or power, and otherwise give to the officer holding the inquiry all assistance in connection with the inquiry which he can reasonably give.
(b) If any such person refuses to produce to the Registrar or anv person autho rised by him under sub-section (I), any book or paper which it is "his duty under-- clause (a) to produce or to answer any question, which is put to him bv the Registrar or the person authorised by the Registrar in pursuance of sub-clause ( a j , the Registrar or the person authorised by the Registrar mav certify the refusal and the Registrar may impose on the defaulter a penalty of an amount notexceeding five hundred rupees. Before imposing such penal ty , ' the Registrar shall give, or cause to be given a reasonable opportunity to the defaul ter /of showing cause against the action proposed to be taken in regard to him.
(4) (a)_ If at any stage of the inquiry under this section the Registrar is satis fied that in the interest of the members of tho society, it is necessary to take over all books and papers relating to the society during the period of inquiry, he may make an order in wri t ing to that effect and directing the society to hand over all books and papers relating to the society to such officer as may be specified in the order. The Registrar may also issue a' direcl.ion to the society to refrain " from doing such acts or engaging in such activities as mav be specified in fchs*^ direction.
(b) The society shall be bound l:o comply with any direction issued to it.
i.mcier clause (a).
(c) The books and papers taken over under clause fa) shall be returned to the society on the completion of the inquiry.
C5) Wheu an inquiry is held under this section the Registrar shall com municate the result of the inquiry— ii) 3ft case the Central Government have Kiibscrihed directly to the share capital of the society or in case any moneys uve due from the society to the Principal State Par tnership Pund or to the Subsidiary State Par tnership Fund, to the Central Government or to any" officer BOpoffitod by it m this behalf;
^ • l i ^ THE CA2ETTK Of fNDIA EXTRAORDINARY W to the federal co-operative society concerned, and
(in) to the society concerned.
(6) It shall be competent tor the R e a ^ m r t^ «««, i the officer to whom it is entrusted T n r l t c P J S M tZ t ^ m t - a n y , WMiW &oia to any other person as he deems fit m q m i T h i m s d f or e r ^ » * & c r e d L r ^ t T c i g y S R L * 1 * * * * * • * * & * • * « fe the . p p h c a d o n o £ , within reasonable t im- a r S received satisfaction.
<w dr- « • „ * » Ms, a Marias sy j§g?te WiV-fcS rstSrs & « « yst
(2) The Registrar shall communicate the v#adt «* •».«, • , , - . • the applicant, and to the society ^hose books have h l ^ ^ L d ^ ^ t 0 ' t h e f o k c e / t 1 ^ m T S e S t ^ t e d 1 ^ m f i S r c a r ? 2 1 ^ ^ ^ » W entrust it to any other P W O as he deems I ? * ° ' l t t h e i n s P e c t i ^ himself o r S3. Inspection of books by financing Uank _ _ w u 0 „ „ „„ • , . , , co-operative financing bank .such bank * £ H h J S L , S e ? i S ?>***«* to any of that society. The"inspection may be n a d f t f f t t S f ? * * # • » * * * &e booksauthorized by the committee of S M o r S » ™ l"v 0 f f l C V 0f t h e b a n k certified by the Beu t ra r as competent to mide -mfe .f,, ™ m b e i \ o f l t o J > a i d s t a f f or member .so i n j e c t i n g shall at ah S J ^ S ^ J S \ , i , ? p ^ t a m - T h e ° f f i t ^ books, accounts, documents, securities c S h - f n r l & S ^ *&? l C e e s s l o t h e or in, the custody of the ^ f f n ^ i S A S ^ f b e i ? n ^ S l° meut i and r e t u m s as may be a w e ^ ^ a S ^ t ^ f l ^ w ' S S S ^ s , t a t e ~ society and the safety of the sums lent to it by t h ^ b a n k condition of the
89. Suspension of officer or servant of society n i w i , • ,.Q i •& audit under section H4 or an inquiry under le'^nn pi ) ^ m • l h e $ £ # * o f a a section 87 or section 28, it is brought to the l l n 3 1 1 - 1 ! 1 5 ^ ^ 0 " u n d « officer, or servant of a & f e f e h a ^ o m m i t t e d fffaASn feST " h a t * ^- a i d l o r misappropriation, breach of irust 0 J e t h e r 1 ^ h .M t W ^ e responsible the Registrar may, if fe his ODinkin # W » ^ ™ '- «***»** to the society, paid officer or servant and the sus e m on of l u c h n?W n f f l * , / 1 ^ 6 " 0 6 * W * « s ^ " sary in the interests of the society fet k c S f ^ ' „ r s e r v a i } t i s « » » * - the investigation and disposal of 4 ' e m a t t e r - t o n w % l t h f £ 0 C i e t y P e *"ing paid officer or servant under S s S n g M n ^ £ » T J 8 f * S c a u f ,. to ^ P ^ c e d such may be specified by him s ^ ? e n s i O n Uom such date and tor such period as eo mm
(2) On receipt ot a direction from t*w» vtaai^,.^... .. J imit tee of »& society S S S m ^ & S f ^ S S S S ^ ^ S S ^ ^ ^ ^ reinstated except with the £ $ £ , , sancdon of t h e s g g g ^ * r t l D O t b t J
(4) If the committee fails to eamtilv H-IIV. tuQ ,i; „ ra c t i o n ( I ) , the Registrar may & S 1 S ? L £ % & J S S ^ i I ^ & " ^ 3 U b " under suspension from such date and for "?ucn e nri n i • ? f f i c e r S » ? " « « order and thereupon the paid o t o o r ™ , ^ f l f m a y s P e c U i ' i n * e under suspension. o-i vani, gs the case may be, sha.15 be s u b l L S o n C ^ S ^ ^ J S ^ ^ ^ & f ^ ^ ^ BM cost referred to iu think * * b e t i e e n the S & ^ ' C & S t f S f S S s S S f £ ^ g g
(4) THE GAZETTE |OF INDIA EXTRAORDINARY [FART II- 84 ' or fc,^^ « « ^ v * » * «•» •* *• •—*-• OT past members of the society:
o r d MS^s^r^ sss &&assa*a « w.
under this section withom— ( a , having heard, **g>J*£ff2£ J H T 8 6 * ^ " S ^ t S § ^ ^ < £ 3 ^ V W & * % S . or which such order is pro- „ J S ? * * ^ o ; r ,he grounds on which » apportionment is made. , .
(3) No expenditure from the ^ ^ J ? ^ S ^ & S S % P-"-n S E W 8 ? S H £ 5 B S - 3 S ? i S r a S F sub-section (1>.
tt Mode « - v e p , ^ ^ ? g ^ f c ^ | ^ f f i t f w ^ M sum imposed as penalty u " ^ n n ^ a t S n fc Sia Registrar or a person authorised under section W may g » / ^ g P ^ £ JavLijurisdiction in the place where the by him in that be naif to a j W * * ? ^ fg a,° 'recoverable resides or carries his S E t o S & S & B S S 5 « W 5 foi^ the recovery oE »nes.
5»e5y?-U) 8 « * .?*w» : « ffiffi* g ^ ? S £ S S S . working or financial under section 87, discloses any dgMJJ, S.iiitrar may bring such defecur.lo the condition or the books of a society, the » « " £ " ™aJe an order directiajf the Sice^ of the society. The Registan^ may also nW rf ^ ^ o r d ^ «, 5S% « . £ ^ %&*»* therain.
( a The society concerned may m g e - ^ g ^ i within ° S ? S S S - % S J ( T h e Administrator may, in a i d i n g the appeal, annul. reyerse, nWirr or confirm, the order of the F.eg.strar ^ 9 3 rower of registrar to assess 9 » ^ f ^ J ^ S S S B S f f f i S " S m Where in the course ol or as a result o f i ^ S g ^ 8 7 j o r the winding up nquh-v under section 08 or an ^speccion " f ^ ^ f ^ V e report made by the oi a society, the Registrar is sa t l 5 ^d °n the h a s ox * g 6 o r t h e p e i ; ? o n ° T L - o r the person authorised ™ m a k ^ ̂ ^ o t the Liquidator under section S S e l 8 i p e c t fe^JgK^^a g ' £ organisation or.ma*agemj^ nn that arv person who has caiccn ai.y y officer of the society aas, v-maui o V e socief or any deceased, or ^ or *neMjtrfjc j ^ . R e c k o n or or** a period of five years gno* o « o g ^ or accountable for any for winding up. misapplied oi retai»ea, «3- u t c misfeasance o, breacti oi g t m ? f £ property ox the .society S ^ J * * f, £ a o n authorised by him m that S a U b relation to the society t ± ^ f ^ J J J I BarsoS or persons and alter J i w g S i x may . inst igate the condu * ^ | g g ,iyinl a reasonab e oppor,un^ | n t h p oe rSuU u u i u s a M " " ' • •••••• • -- „v, i *• flfsarj malEe a n » r u s ( t i sM»« 4 r -o -- , rafe'as t'--: Registrar « » « P ™ n t u f i " g S S by way ot compensaton m m iy determin-3 SEC. 3(ii)] THE GAZETTE OF INDIA EXTRAORDINARY
(2) The Kegistrar or the person authorised under sub-section (1) in makin^ any order under this section, may provide therein tor the payment of the costs or" any par t thereof of such investigation, as he thinks just, and he may direct that s u 3 £ & h ^ T e n issued"1 ' '^ ^ ^ r e C 0 V e r e d f r o m t h e P C T S o n g a i n s t whom the
(3) This section shall apply, notwithstanding that the act is one for which the person concerned may be criminally responsible.
94. Power to enforce attendance, e tc—The Registrar or the person authorised by him, when acting under sections 86, S7 or 93 shall have the""pbwer to summon and enforce the attendance of any person to give evidence or to compel the production ot any document or otner material object by the same means and in the same TeTurf f l o f f v ° ^ 1908) * * ^ ° ! 9 C i V U ^ ^ m * & ? t h e C°de ° f C i v i l ? r D ~
35. Constitution or recognition of f sderail society to supervise working- of aocielies,—(1) The Administrator may constitute committees or recognise one or more ^o-operative federal societies in such manner as may be prescribed and subject to such conditions as the Administrator may impose, gar the supervision of a society or a class of societies and may frame rules for maM:ig grant to any such committee or federal society.
(2) The Central Government may, by general or special order, require of a society or a class of societies to make contribution of such sum ever