(1)
No amendment of the
by-laws of a registered society shall be valid until the same has
been registered under this Act,
for which purpose a copy of the amendment shall be forwarded to the
Registrar. (2)
If the Registrar is
satisfied that any amendment of the by-laws is hot contrary to this Act or to the rules, he may, if
he thinks fit, register the amendment. (3)
When the Registrar
registers an amendment of the by-laws of a registered society, he shall
issue to the society a copy of the amendment certified by him,
which shall be conclusive evidence that the same is duly registered. [STATE AMENDMENTS [Uttar Pradesh [1] [After Section 11 The following
shall be added as new sections 11-A, 11-B, 11-C, 11-D, 11-E, and 11-F. "11-A. Powers
to Registrar Co-operative Societies to compel Societies to change bye-laws (1)
Where the Registrar
is of the opinion, whether on the representation of the society or any of its
members or otherwise, that an amendment of the bye-laws of the society is
necessary or desirable in the interest of the society or in public interest, he
may, by order in writing to be issued to the society by registered post,
require the society to make the amendment within such time as he may specify in
such order. (2)
On the failure of the
society to make any such amendment within the time specified, the Registrar
may, after giving the society an opportunity of being heard, register such
amendment and issue to the society by registered post a copy of the amendment
so certified by him, which shall be conclusive evidence that the amendment has
been duly made and registered. A bye-law so amended by the Registrar shall be a
bye-law of the society. (3)
An appeal shall lie
to the State Government from any order of the Registrar passed under
sub-section (2) within two months from the date of the issue of such order. The
order of the State Government on appeal and subject to the result of an appeal,
if any the decision of the Registrar shall be final." "11-B.
Change of names of societies and
its effects A society may
by amending its bye-laws change its name and such change shall in no case
affect any right or obligation of the society or any of its members or
past-members or the heirs of the deceased members and any legal proceedings may
be continued by or against the society under its new name." "11-C.
Change of liabilities vice versa (1)
A society may by
amending its bye-laws and subject to the provisions of section 4 and section 11
change its liability from 'limited' to 'unlimited' or (2)
No amendment of a
bye-law relating to the change of liability of a society shall be registered by
a Registrar, unless he is satisfied that? a)
sufficient notice has
been given to every member of the society and all persons whose interests are
in his opinion likely to be affected by the proposed change of liability; and b)
with respect to every
such member or person who, in the opinion of the Registrar, is entitled to
object? 1)
either his assent has
been obtained to the change, or 2)
if he signified his
objection? I. he is allowed to withdraw his share, if he is a
member,his debt or claim has been discharged or determined and secured to the
satisfaction of the Registrar within three months from the date of the notice.
" "11-D.
Amalgamation and transfer of assets and liabilities of societies (1)
Subject to the
approval of the Registrar, any two or more societies may, by a resolution passed by majority of the
members present at a general meeting of each such society held for the purpose,
amalgamate as a single society and the resolutions of the societies concerned shall, on
such amalgamation and subject to compliance of the provisions below, vest the
assets and transfer the liabilities of the amalgamating societies in the amalgamated
society, which shall be deemed to be duly registered under the Act; Provided that
before the passing of such a resolution each member of the societies concerned shall be
given fifteen days' clear notice of such a resolution together with the date
and the place of the meeting. (2)
The amalgamating societies shall, by resolutions
passed in accordance with the procedure laid down in sub-section (1), transfer
all their assets and liabilities to the amalgamated society : Provided that
when any such amalgamation involves the transfer of liabilities by any society,
it shall be subject to three months' prior notice to creditors of such societies, whose liabilities are
proposed to be transferred : Provided
further that if a creditor of any of the society concerned objects to such
amalgamation by thirty days notice in writing prior to the date of
amalgamation, to the societies concerned,
the amalgamation shall not be made, unless the dues of such creditor have been
satisfied". "11-E.
Splitting of division of societies (1)
Subject to the
approval of the Registrar, any society may, by a resolution passed by a
majority of the members present at a general meetings of the society held for
the purpose, resolve to divide itself into two or more societies : Provided that before
the passing of such a resolution each member of the society, and all persons
whose interests are likely to be affected by the resolution, shall be given
thirty days' clear notice of such a resolution specifying the area of operation
of, and the names of members of, each of the new societies together with the date and the place of meeting. (2)
Notwithstanding
anything contained in sub-section (1)? (a)
any member of the
society may, on receipt of a notice of a resolution for the division of the
society, intimate his intention of not becoming a member of any or all of
the societies; and (b)
any person, whose
interest is likely to be affected by the resolution, may, on receipt of notice
of the resolution for the division of the society, demand satisfaction of his claim. (3)
After the expiry of
three months from the date of despatch of copy of the preliminary resolution to
all the members and persons likely to be affected by the resolution, another
special general meeting of the society, of which at least fifteen days' clear
notice shall be given to its members, shall be convened for considering the
preliminary resolution, and if at such meeting the preliminary resolution is
confirmed by a resolution passed by a majority of the members present, either
without changes or with such changes as in the opinion of the Registrar are not
material to the subject-matter of the preliminary resolution, the Registrar
may, subject to the provisions of sub-sections (4) and (6), register the
new societies and the
bye-laws thereof, after cancelling the registration of the old society, which
shall be deemed to be dissolved from the date of such cancellation. Explanation--The
opinion of the Registrar as to whether the changes made in the preliminary
resolution are or are not material shall be final. (4)
At a special general
meeting referred to in sub-section (3) a special resolution shall also be
passed for? (i) the repayment of the share capital of all
the members who have given notice under sub-section (2); and (ii) satisfaction of the claim of the persons
whose interests are likely to be affected by the resolution of division of the
society and who have given notice under sub-section (2). (5)
Where, within such
time as the Registrar may consider reasonable, the share capital of the members
or the claims of the persons likely to be affected by the resolution for the
division of the society referred to in sub-section (4), is not secured or
satisfied, the Registrar shall refuse to register the new societies. (6)
Not withstanding
anything contained in the Transfer of Property Act, 1862, or the Indian Registration Act, 1908 (Act V
of 1908), the registration of the new societies shall be sufficient to vest the assets and transfer
the liabilities of the original society in, and to the new societies in the manner specified
in the preliminary resolution as confirmed under sub-section (3)" "11-F.
Final authority of a society (1)
The final authority
of a society shall vest in the general body of its members in general meeting : Provided that,
in such circumstances, as may be prescribed by the Registrar, the final
authority may vest in the delegates of such members, elected in the manner
prescribed by the Registrar and assembled in the meeting of the general body. (2)
The meeting of the
general body of the members of a society, or of the delegates of such members,
shall be summoned and shall exercise its authority in such manner as may be
prescribed."] 1.
Subject to any prior
claim of the other creditors to enforce outstanding demand due to the society
from amember or past other agricultural produce of such member or person
at any time within eighteen months from the date of such supply or loan; 2.
in respect of the
supply of cattle, fodder for cattle, agricultural or industrial implements or
machinery, or raw materials for manufacture, or of the loan of money for the
purchase of any of the foregoing things upon any such things so supplied, or
purchased in whole or in part from any such loan, or any articles manufactured
from raw materials so supplied or purchased. [STATE AMENDMENTS [Uttar Pradesh [2] [In Section 19 The following
shall be substituted : "19.
Charge created in favour of societies Notwithstanding
anything contained in the Provincial Insolvency Act, 1920, or in the Code of Civil Procedure, 1908 (Act V of 1908), or in any other
enactment relating to land-tenure for the time being in force, any debt or
outstanding demand due to a society by any member past or present, or standing
against the estate of any deceased member, shall, subject to any claim of the
State Government arising from a loan granted by it before, but not after, the
grant of the loan by the society and in respect of land revenue, or any sum
recoverable as arrears of land revenue, be a first charge? (a)
if such debt or
demand is due in respect of the supply of, or any loans to provide the means
for, seed, manure, labour, subsistence, fodder for cattle or any other thing
incidental to the conduct of agricultural operations, upon the crops or
agricultural produce of such member; (b)
if such debt or
demand is due in respect of any loan to provide the means of paying the rent or
revenue of the land, or for irrigation facilities, upon the land whose rent or
revenue has been so paid, or as the case may be, the irrigation facilities
provided; (c)
if such debt or
demand is due in respect of supply of or, any loan to provide the means for the
purchase of, cattle, agricultural implements or warehouse for the storage of
agricultural produce,--upon the crops and agricultural produce of such member
and also upon the cattle, agricultural implements or warehouse so supplied or
purchased wholly or in part from any such loan, at any time within three years
from the date on which the last instalment of such loan becomes repayable; (d)
if such debt or
demands is due in respect of the supply of or, any loan for the purchase of raw
material, industrial implements, plant and machinery, work-shops, ware-house or
business premises,--upon the raw material or other things so supplied or
purchased by such member and in the case of a debt or demand in respect of the
supply or for the purchase of raw materials, also upon articles manufactured
from such raw material; (e)
if such debt or
demand is due in respect of any loan for the purchase on redemption of land
purchased or redeemed,--upon the land purchased or redeemed by such member,
past-member, or deceased member; and (f)
if such debt or
demand is due in respect of any loan for the purchase or construction of any
house or building or any portion thereof or in respect of the supply of
materials for such constructions,--upon the house or building or material so
purchased or constructed by such member : Provided that
along with the 'charge' created under sub-section (1) all the property
including any amount payable by a society to the indebted member shall be
liable to attachment and sale in execution of a decree in favour of the society
irrespective of the object of the loan or the set-off of sums due on the member
of the society towards the payment of such debt."] Subject to the
provisions of Sec. [STATE AMENDMENTS [Uttar Pradesh [3] [After Section 21 The following
shall be added as a new section 21-A :-- "21-A.
Sale of, the Holding of a sirdar in execution of decree for money due to a
society (1)
Notwithstanding
anything in section 153 of the U.P. Zamindari Abolition and Land Reforms Act, 1950;, the interest of a sirdar
in his holding may, on the application of the society concerned, be sold in
execution of any decree or order for payment of money, being money due to such
society in respect of a debt or demand referred to in clauses (a) to (f) of section 19, as though it were land revenue payable in respect of the
holding within the meaning of section 284 of the said Act. (2)
The expressions
'holding' and 'sirdar' in this section shall have the meaning assigned to
therein the U. P. Zamindari Abolition and Land Reforms Act, 1950."] (1)
Where the
registration of a society is cancelled under Sec. 39 or Sec. 40,
the Registrar may appoint a competent person to be liquidator of the society. [(2) A liquidator appointed under sub-section (1) shall
have power? (a)
to institute and
defend suits and other legal proceedings on behalf of the society
by his name of office ; (b)
to determine the
contribution to be made by the members and past members of the
society respectively to the assets of the society ; (c)
to investigate all
claims against the society and, subject to the provisions of this Act, to decide questions of priority
arising between claimants ; (d)
to determine by what
persons and in what proportions the costs of the liquidation are to be borne ;
and (e)
to give such directions
in regard to the collection and distribution of the assets of the society, as
may appear to him to be necessary for winding-up the affairs of the
society. (3) Subject to any rules, a liquidator appointed under
this section shall in so far as such powers are necessary for carrying out
the purposes of this section, have power to summon and enforce the attendance
of witnesses and to compel the production of documents by the same means
and (so far as may be) in the same manner as is provided in the case of a Civil
Court under the Code of Civil Procedure, 1908 (5 of 1908). (4) Where an appeal from any order made by a
liquidator under this section is provided for by the rules, itshall lie to the
Court of the District Judge.2 [(5) Orders made under this section shall, on application, be
enforced as follows: (a)
when made by a
liquidator, by any Civil Court having local jurisdiction in the same manner as
decree of such Court; (b)
when made by the
Court of District Judge on appeal, in the same manner as a decree of such Court
made in any suit pending therein. (6) Save in so far as hereinbefore expressly provided,
no Civil Court shall have any jurisdiction in respect of any matter
connected with dissolution of a registered society under this Act. [STATE AMENDMENTS [Uttar Pradesh [After
Section 42 The following
shall be added as new section 42-A : "42-A.
Exemption from Indian Limitation Act Notwithstanding
any provision in the Indian Limitation Act 1908, the period of limitation for the institution, of
suits to recover any sum, including interest thereon due to a society by a
member thereof shall be computed from the date on which such member dies or
ceases to be a member of the society.] 1.
This sub-section
amended in its application to C.P. and Berar by C.P. and Berar Co-operative Societies Amendment and Liquidators', Order Validation Act, 1945 (C.P. & B. 10 of 1945)
as continued in force by the C.P. & Berar Expiring Laws Continuance and
Amending Act, 1947 (C.P.
& B. 48 of 1947). 2.
For sub-section {4-A}
applies in U.P., see the Co-operative Societies Act 3 of 1919 (U.P. 3 of 1919). 3.
Section 42-A Inserted
in C.P., seethe Co-operative Societies (C.P. Amendment) Act, 1930 (C.P. 7 of 1930) 1.
The C.P. and Berar
Co-operative Societies (Amendment) Act, 1940 (C.P. and B. 5 of 1940); 2.
The C.P. and Berar
Co-operative Societies (Amendment) Act, 1941 (C.P. and B. 6 of 1941); and 4.
Added by Co-operative societies (U.P. Amendment) act, 1956 (Act 10
of 1957 and 28 of 1951). 1.
This sub-section
amended in its application to C.P. and Berar by C.P. and Berar Co-operative Societies Amendment and Liquidators', Order
Validation Act, 1945 (C.P. & B. 10 of 1945)
as continued in force by the C.P. & Berar Expiring Laws
Continuance and Amending Act, 1947 (C.P. & B. 48 of 1947). 2.
For sub-section
{4-A} applies in U.P., see the Co-operative Societies Act 3 of 1919 (U.P. 3 of 1919). 3.
Section 42-A
Inserted in C.P., seethe Co-operative Societies (C.P. Amendment) Act, 1930 (C.P. 7 of 1930) For
sections 42-B and 42-C Inserted in the C.P.,
and Berar, see the following Acts as continued in force by the C.P.
and Berar Act, 48 of 1947,-- 1.
The C.P.
and Berar Co-operative Societies (Amendment) Act, 1940 (C.P. and B. 5 of 1940); 2.
The C.P.
and Berar Co-operative Societies (Amendment) Act, 1941 (C.P.
and B. 6 of 1941); and (1)
All sums due from a
registered society or from an officer or member or past member of a
registered society as such to the Government, including any costs awarded to
the Government under Sec. 37, may be recovered in the same manner as
arrears of land revenue. (2)
Sums due from a
registered society to Government and recoverable under sub-section (1) may
be recovered, firstly, from the property of the
society; secondly, in the case of a society of which the liability of
the members is limited from the members subject to the limit of
their liability, and thirdly, in the case ofother societies, from the members. [STATE AMENDMENTS [Uttar Pradesh [4] [After Section 44 1.
The following shall
be added as new section 44-A.:- "44-A.
Where as a result of an audit under section 17, or an inquiry under section 35,
or an inspection under section 36, or the winding up of a society under section
42, it appears to the Registrar that any person, who has taken part in the
organization or management of the society or any past or present officer of the
society, has-- (a)
made any payment
which is contrary to law or to the rules or by-laws of the society or
instructions of any authority empowered by the Act to issue the instruction, or (b)
by reason of his
culpable negligence or misconduct, involved the society in any loss or
deficiency, or (c)
failed to bring into
account any sum which ought to have been credited in the account of the
society, or (d)
misapplied,
misappropriated or fraudulently retained any funds or property of the society
or has otherwise become liable or accountable therefor, or (e)
is guilty of
misfeasance or breach of trust in relation to the society,the Registrar may,
notwithstanding that the act is
one for which the defaulter may be criminally liable, on his own motion, or on
the application of the officer conducting the audit or holding the inspection
or inquiry or the liquidator, inquire into the conduct of such person or
officer and, after giving such person or officer an opportunity of being heard,
make an order requiring him to contribute such sum to the assets of the society
by way of compensation in respect of such payment or loss of sum, or to restore
such property, as the Registrar thinks fit, together with such sum as the
Registrar may fix to meet the cost of proceedings under this section : Provided that,
before any order requiring such person or officer to contribute is passed in
respect of a payment referred to in clause (a) reasonable time shall be given
to such person or officer to recover the amount from the payee and to credit it
to the funds of the society : Provided
further that no order shall be passed under this sub-section in respect of
any act or omission
mentioned in clauses (a) to (e) except within five years of the date on which
such act or omission
occurred. 2.
An appeal shall lie
from the Order of the Registrar under sub-section (1) to the State Government
on application made by the person or officer against whom such order was passed
within three months from the date of the communication to him of such order.
The order of the State Government on appeal, and, subject to the result of such
appeal, if any, the order of the Registrar shall be final.".]CO-OPERATIVE SOCIETIES ACT, 1912 (UTTAR PRADESH AMENDMENT)