(1) where the Tr1chur Society divides itself mto a handloom weavers' co-operative society and one or more other co-operath•e sodety or societies, and the Tnvandrum Society is reconstituted or reorganised under section SA of the Multi-Unit Co-operative Societies Act. 1942 (Central Act 6 of 19t2) . then it shall be law ful for-
(i) the handloom weavers' co-operative society formed by the division of the Trichur Society;
(ii) the co-operative society formed by the reconstitution or reorganisation of the Trivandri.m Society and functioning m the State; and
(iii) the Kozhikode Society, to amalgamate as a single co-operative society in accordance with the procedure specified in sub-section ( 1) of Section 16 of the Travancore-Cochin Act, and for the purpose of such amal gamadon the Kcizhikode Society shall be deemed lo be a co operative society registered unde.r the Travancore-Cochin Act;
(2) if for any reason Lhe amalgamation of the three socie ties aforesaid does not take place within three months of t e cornrrtencement of this Act or within such further time as m~y be allowed by the Rer;1strar in this behalf and the R<>gistrar is of opinion that the amalgamation of the thr~e societies is necessary or desirable for increasing their strength or useful nt"sS, he may, after consulting, in the manner prescribed by rules made by the Gover-nm~nt, the fir.ancmg banks to which the societies are indehtt::d, call upon such societies to am:ilga mate within such time as may be specified by him into one c:o-operative society in accordance with the procedure specified in sub-section (1) of section 16 of the Tra"ancore-Cochin Act;
(3) if the societies fail to amalgamate into one society within the time specified by the Registrar, he may, after givmg an opportunity 1o the Commi~ee of each of the s\lc1e,ies to stale its objections, 1f any, direct lhe a malgamation of the societies into one socie•y and thereupon the provi!.1ons of c1auses (m) to
(vii), both inclusive, of sub-section (lA'• of sec1ion 16 of the Travancore-Cuchm Act shall apply in respect of the a1C.algama t1on of the said societies;
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Provided that the first bye-laws of the co-operative society formed by the amalgamation of the three soc1et1es in pursuance of this clause shall be mad<! by the Registrar and he shall forward a copy of the said bye-1aws to the comauttee of each of the societies when giving it ·opportun1ty under this clause to state its objections, if any, in i·egard to the proposed ama1gamation;
(4)'the co-operative society f~rmed by the amaJgamatio~ of the th1 ee co-operative societies m pursuance of clause (1), clause (2) or clause (3) shall be registered as a co-operative society under the Travancore-Cochin Act and it shall- be called the Kerala State Handloom Weavers' Co-operative Society.
hereinafter referred to as the Apex society;
(5) the area of operation of the Apex society shall be the whole ~tate; · •
(6) any handloom weavers' co-operative society rPgic:;tered or deemed to be registered under the Madras Act and having its area of operation in Malabar shall be entitled to become a m~mber of the Apex society in accordance with and subject to the provisions of the Travancore-Cochin Act, the rules made thereunder and the bye-laws of the Apex society, as if such handloom weavers., co-operative society were a co-operative society registered under the Travancore·Cochin Act;
(7) where a handloom weavers' co-operative society regis tered or deemed to be registered under the Madras Act be· comes a member of the Apex society, whether consequent on the amalgamation or under clause (6), the rights and hab1li ties of that member society as such me111ber and thr rights and liabiliues of the Apex society in its relation to such mem ber society, shall be governed by the provisions of the Travan core-Cochin Act. the rules made thereunder and the bye-laws o{ the Apex society;
and for the purposes afore$aid the Travancore-Cochin Act shall be deemed to ext nd to the whole State.