(1) Notwithstanding anything contained in any law for the time being in force, but subject to such conditions, if any, as may from time to time be laid down by the State Government, a member of a co-operative 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 the amount so deducted to the society in satisfaction of any debt or other demand owing by the member of the society.
(2) Notwithstanding anything in any law for the time being in force, the employer shall, if so required by the co-operative society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement executed under subsection (1) and pay the amounts so deducted to the society within fourteen days from the date of the deduction.
(3) An employer who without sufficient cause fails to make the deduction in terms of sub-section (2), or having made, any such deduction fails to pay the amount so deducted to the society within fourteen days from the date of deduction, shall be liable to the society to the extent of the amount which the employer has failed to deduct or to pay, as he case may be.
Charge and set off in respect of shares or interest of members in the
41. A co-operative society shall have a charge on the share or interest in the capital and on the deposits of a member, a past member or a deceased member and on any dividend, bonus or profits, payable to a member or a past member, or the heirs or legal representatives of a deceased member in respect of any debt or outstanding demand owing to the co-operative society capital of a cooperative society and may notwithstanding anything to the contrary contained in any other law for the time being in force, set off any sums so credited or payable to such member or his heirs or legal representatives towards payment of any such debt or outstanding demand :
Provided that no financing bank to which a co-operative society is affiliated shall have a charge upon any sum invested in financing bank as reserve fund by the society if the bank’s share in the total amount of loans taken by the society is less than 75 percent, or be entitled to set off any such sum credited or payable to the society towards any debt due from such society.
Attachment shares- under this section, the share of a member is not liable to sale and attachment.
Share or interest not liable to attachment
42. Subject to the provisions of section 31, the share or interest of a member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of a court of justice in respect of any debt or liability incurred by such member or past member and an official assignee or a receiver under any law relating to insolvency shall not be entitled to, or have any claims on, such share or interest.
Insolvency effect- A person does not cease to be a member of the society by his adjudication as an insolvent.
Exemption from compulsory registration of Instruments
43. Nothing in clause (b) and (c) of sub section (1) of section 17 of the Indian Registration Act, 1908 (Act XVI of 1908), shall apply to—
(a) any instrument relating to shares in a co-operative society, notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title, title or interest to or in immovable property, except insofar as it entitles the holder to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holder of such debentures; or
(c) any endorsement upon or transfer of any debenture issued by any such society.
Register of Members
43.A Any register or lost of members kept by any co-operative society shall be prima facie evidence of any of the following particulars entered there in, namely—
(a) the date on which a person became a member;
(b) the date on which any such member ceased to be a member,
(c) the no. of shares held by such member and the date from which so held.
Registers of mortgages and
43.B Any register or list of Mortgages & charges kept by any co-operative society shall be prima facie evidence of any of the following particulars charges entered therein, namely –
(a) the date on which the mortgage or charge was created by a member in favour of the society;
(b) particulars of the land or other immovable property mortgaged or charged;
(c) the date on which declaration of the mortgage or charge was sent to the subregistrar or Revenue Authority, as the case may be.
Proof of the entries in books of co-operative societies
43.C (1) A copy of any entry in a book of a co-operative society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of the matters, transactions and accounts therein recorded in the same manner and to the same extent as the original entry itself is admissible.
(2) A co-operative society may grant copies of any document obtained and kept by it in the course of its business or of any entries in such document; and any copy granted shall, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original documents, or the entries therein, as the case may be, are admissible.
(3) No officer of a co-operative society and no officer, in whose office the books of a co-operative society are deposited after its winding up shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society’s books or documents, the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under order of the court, Tribunal, the Registrar of the arbitrator made for special cause.
Pass book to members
43.D (1) A Co-operative society which gives loans to its members or a co-operative society or a class of co-operative societies, as may be notified by the State Government, shall provide to each member a pass book which shall contain the details of transaction with the member, such as, the date of the transaction the amount of loan advanced the rate of interest, the repayments made by the member, the amount of the principal and interest due and such other particulars as may be prescribed. The entries of the pass book shall be made up to date from time to time and shall be countersigned by such officer of the co-operative society as may be authorized by it in this behalf and for this purposes such member shall present the pass book to such officer who shall issue a receipt thereof, if the pass book is required to be detained for making entries therein.
(2) The entries in the pass book duly made shall until the contrary is proved, be prima facie evidence of the transaction of the co-operative society with the member.
Exemption from certain Taxes, fees and duties
43.E (1) The Government may, by notification, remit in respect of any class of cooperative societies—
(a) The stamp duty chargeable under any law for the time being in force, in respect of any instrument executed by or on behalf of a cooperative society or by an officer or member thereof and relating to the business of such society; or
(b) Any fee payable under any law for the time being in force relating to the registration of documents or court fees.
(2) The Government may be notification, exempt any class of co-operative societies from-
(a) Land Revenue; and
(b) Taxes on sale and purchase of goods.
CHAPTER VI STATE AID TO CO-OPERATIVE SOCIETIES Direct partnership of State Govt. in societies