MEGHALAYA
COOPERATIVE SOCIETIES (AMENDMENT) ACT, 2003 THE MEGHALAYA COOPERATIVE SOCIETIES (AMENDMENT) ACT, 2003 [Act No. 06 of 2003] [30th July, 2003] An Act further to amend the Meghalaya Cooperative Societies Act
(Assam Act I of 1950 as adapted by Meghalaya) Be it enacted by the
Legislature of the State of Meghalaya in the Fifty Fourth Year of the Republic
of India as follows:- (1)
This Act may be called the Meghalaya Cooperative Societies
(Amendment) Act, 2003 (2)
It shall come into force from the date of its publication in the
Official Gazette. In the preamble to the
Meghalaya Co-operative Societies Act (Assam Act I of 1950 as adapted by
Meghalaya) herein after referred to as the principal Act)- (a)
In fourth line between the words "Worthiness" and among
agriculturist", the words "and entrepreneurship" shall be
inserted; (b)
In the fifth line between the words "artisans" and
"other persons", the words "craftsmen rural worker" shall
be inserted. In Section 2 of the
principal Act- i)
For clause (a), the following shall be substituted, namely- "(a) Administrative Council
or Board of Directors" means a body intermediary between
Committee/Executive Committee by whatever name called and include the General
Assembly of a Registered Society". ii)
In clause (q) the words "and" occurring at the end shall
be omitted and at the end of clause (r) the word "and" shall be added
and after clause (r), the following new clause shall be added, namely- "(s)
"Tribunal" means a body of officials appointed by the State
Government to arbitrate dispute involving recovery of overdue loans" For the existing Section 4
of the principal Act, the following shall be substituted, namely- "4. Societies which
may be registered (1)
A Society which has its objects the promotion of the economic
interest or general welfare of its member or of the public through self help
and mutual aid in accordance with cooperative principles, or a society
established with the object of facilitating the operations of any society may
be registered under this Act with limited liability. (2)
No society shall registered if in the opinion of the Registrar,
its declared objects are unlike to be achieved or it is likely to be
economically unsound or it may have an adverse effect upon any registered
society or the Cooperative Movement as a whole. In Section 6, of the
principal Act, in sub-section (1), for the words "ten", the word
"fifteen", shall be substituted. In Section 10 of the
principal Act- i)
In sub-section (1), between the words "Registrar" and
"in the prescribed form", the words "or a person to whom such
power of the Registrar in delegated" shall be inserted; ii)
In sub-section (2), in clause (a), for the word "ten",
the word "fifteen", shall be substituted; iii)
In sub-section (3), between the words "Registrar" and
"may required", the words "or the person to whom the registrar's
power under this section is delegated" shall inserted. In Section 11 of the
principal Act- i)
In sub-section (4), between the words "society" and
"by" in the fifth line, the words "within four months from the
date of receipt of application for registration" shall be asserted; ii)
After sub-section (4), the following news proviso shall be added,
namely- iii)
"Provided that if the application for registration is not
disposed of within the specified period of four months or the Registrar fails
to communicate the order of refusal within that period the application shall be
deemed to have been accepted for registration". In section 14 of the
Principal Act, for the existing subsection (2), the following shall be
substituted, namely- "2
(i) When it appears to an affiliating society or a financing bank that an
amendment of the bye-laws of a registered society which is a member of such
society or debtor of financing bank is necessary in the interest of the society
it may suggest to the affiliating society or the debtor society, as the case
may be, to make such amendment within such time as it may specify. The
affiliating society or the financing bank shall forward to the affiliated
society or the debtor society, as the case may be a draft of the suggested
amendment of the bye-laws. "(ii) if the society
fails to make the amendment within the time specified, the affiliating society
or the financing bank may forward to the Registrar the amendment, and the
Registrar, if satisfied that the amendment is necessary in the interest of the
society and of contrary to the provision of this Act or rules may hereupon
after giving as opportunity of showing cause to, the society concerned against
the proposed amendment, register the amendment and forward to the society a
copy thereof together with a certificate signed by him. The certificate shall
be conclusive evidence that the amendment has been registered and such
amendment shall thereupon be binding upon the society and its members. "(iii) If the
Registrar considers that the amendment referred to in clause (ii) above is not
acceptable, he shall submit a report to the Government. "(iv) An affiliating
society or a financing bank or the registered society if aggrieved by a
decision of the registrar may prefer an appeal to the Government. The orders of
the Government on such appeal shall be final. "(v) the State Government
may out on its own motion or the Registrar subject to such direction as may
given by the Government amend the bye-law of any society or group of societies
in the interest of the public service". In the Section 15 of the
principal Act, after sub-section (2) (viii), the following new sub-section
shall be added, namely:- "(3) Notwithstanding
anything contained in sub-section (1) and (2) if the Registrar is of the
opinion that for reason of ensuring economic viability of any registered
society or societies or avoiding overlapping of conflict or jurisdiction of
registered societies in any area or in order to secure proper management by an
cooperative society or in public interest or in the interest of the Cooperative
movement in the State as a whole, it is necessary to divide, amalgamate or
merge fully or partially any such society or societies with any specific
society, he may, by an order published in the Official Gazette make a scheme
for division or amalgamation or merge with prior approval of the State
Government". In Section 17 of the
principal Act, i)
In sub-section (3), for the word "to", the words
"if" shall be substituted. ii)
After sub-section (3), the following new Sub-section 4 shall be
added, namely- "(4) Notwithstanding
anything contained in this Act, a registered society may, by specific provision
made in its bye-law, admit certain class of members without any voting
right". In Section 31 of the
principal Act, clause (b) of sub-section (2) shall be omitted. In Section 32 of the
principal Act. i)
For existing sub-section (2) the following new subsection (2)
shall be substituted namely:- "(2) Such meeting
shall be held not later than nine months after the close of the Cooperative
Year". ii)
After the new sub-section (2), the following new subsection (3)
and Sub-section (4) shall be added, namely:- "(3) when a society
fails to convene the annual general meeting within the period specified in
subsection (2), the Registrar or the person authorised by him in this behalf
shall be competent to convene such annual general meeting within a period of ninety
days from the date of expiry of the period mentioned in that sub-section. "(4) Members elected
to the Admn. Council/Managing Body of the societies under provision sub-section
1 (a) shall continued to head office as such for a period not exceeding three
years from the date of election. The elected members shall be eligible for
re-election for another term not exceeding three years. No member of a Managing
Administrative Council or other committee so elected in the Annual General
meeting shall be eligible for election as the Chairman or Vice Chairman of the
Society if such a member is a Minister in the Central and State Government; Provided that no person
shall be eligible to hold at the same time, Office of the Chairman or
Vice-Chairman of the Managing Body or Admn. Council or Board of more than two
societies". In Section 33 of the
principal Act, clause (b) of sub-section (1) shall be omitted and clause (c)
and (d) of the said subsection shall be re-numbered as clause (b) and (c)
respective. In Section 43 of the
principal Act, for the concluding para the following shall be substituted,
namely: "The Government of
Meghalaya may recover/recall from any society out of its net profit in any year
all or any part such financial assistant in event of misutilisation.". In Section 44 of the
principal Act, in sub-section (3), the word "not" appearing in the
second line shall be omitted. In Section 45 of the
principal Act, after sub-section (1) the following new proviso shall be
inserted, namely:- "Provided that in case
of the office bearer failing to produce documents books of account, cash
balance in his custody and other information required by the Registrar of the
persons authorised by him deliberately, the Registrar or persons authorised by
him and audit officer liquidator or any person conducting inspection or inquiry
may apply to any magistrate within whose jurisdiction the society functions for
securing the records and property of society". After Section 48 of the
principal Act, the following new Para shall be inserted namely:- "If the employer or
the person authorised in this behalf to disburse salary to the member who has
taken loan from the society fails to make deduction as per the contract or
defaults in making payment to the Cooperative society, he shall be liable to
the society to the extent of the amount which the employer has failed to deduct
or to pay as the case may be". In Section 52 of the
principal Act, in sub-section (1) for the word "twenty", the word
"twenty five" shall be substituted. For Section 53 of the
principal Act, the following new section shall be substituted, namely:- "53.
"Distribution of net profit After making the allocation
to the reserve Fund as prescribed in Section 52, the remaining net profits of a
registered society with limited liability may he distributed according to the
rules and bye-laws of the society". In Section 55 of the
principal Act- i)
In the sub-section (1) the words "and society under
liquidation appearing in the fourth line shall be omitted: ii)
After sub-section (1), the following new sub-section (IA) shall be
inserted, namely:- "(IA) The Registrar
may, keeping in view the annual business turn-over of the Societies authorize
or appoint chattered Accountant by special order in writing in this behalf to
audit the accounts of any society or class of societies". iii) After
sub-section (3), the following new sub-section (4) shall be added, namely- "If it appears to the
registrar or on application by a society or otherwise that it is necessary or
expedient to audit any accounts of the society, the Registrar may by order
provide for such re-audit and the provisions of this Act applicable to audit of
accounts of the society shall apply to such re-audit". In Section 55 of the
principal Act, the second part of the sentence appearing as the fifth, sixth,
seventh and eight lines of the said section shall be omitted. In Section 57 of the
principal Act, for the existing clause (vii) the following new clause (vii)
shall be substituted, namely:- "(vii) an examination
of the utilisation of the Government financial assistance". For Section 59 of the
principal Act, the following shall be substituted, namely- "59.
"Rectification of defects" A registered society shall
be afforded by the Registrar or the person authorised by him an opportunity of
explaining any defects or irregularities pointed out and objected to by the
audit officer and thereafter the society shall within 3 months time and in the
manner as the registrar or the authorised person may direct remedy such defects
or irregularities and report to the registrar or the authorised person the
action taken by it thereon". For the existing Section 63
of the principal Act, the following shall be substituted, namely- "63. "Reference
of dispute. (1) Any
dispute touching the business of a registered society, other than a dispute
regarding disciplinary action taken by a Society against an employee of the
society shall be referred to the Registrar for decision if the parties thereto
are among the following:- "(a)
??the society, its past or present
controlling or managing body, any past or present officer, agent or employee or
the liquidator of the Society; or "(b)
?member, past member or persons claiming
through a member, past member or deceased member of Society or; "(c)
?a surety of a member, past or deceased
member of a society; or "(d)
?any of registered society including any
financing bank having transaction with it, a cooperative Society or a
liquidator of such society; "(2)
?Any dispute mentioned in sub-section (1)
other than a dispute relating to recovery of money shall be referred to the
Registrar within two months from the date on which cause of action
arises". "(3)
?Notwithstanding anything contained in
this section or any other law for the time being in force, Registrar may admit
any dispute after expiry of the period mentioned in sub-section (2), if the
application satisfies the Registrar that he held sufficient reasons not
referring the dispute within such period of limitation, and the dispute so
admitted shall not be barred by limitation". For Section 64 of the
principal Act, the following new section be substituted, namely- "64. "Settlement
of dispute (1)
The Registrar shall, on receipt of a reference under sub-section
(1) of Section 63, decide the dispute himself or authorise any other Government
officer to decide such dispute. (2)
Where the Registrar is satisfied that a party to any reference
made to him under Section 63 with intent to defeat or delay the execution of
any decision that may be passed thereon- (a)
Is about to dispose of the whole or any part of his property; or (b)
Is about to remove the whole or any pert of his property from the
local limits of the jurisdiction of the Registrar, the Registrar may, unless
adequate security is furnished, direct the unconditional attachment of the said
property or such para thereof as he deems necessary; and such attachment shall
have the same effect as if it has been by a competent civil court. "(3)
In case of a dispute relating to recovery of loan, the Registrar shall refer
the dispute to Tribunal constituted by the State Government by notification
published in the official Gazette. "(4)
The parties to the dispute shall include a registered society including
financing bank, its past or present controlling body or the liquidator of the
society. "(5)
The Government may continue as many tribunals as may be necessary for such area
or areas and specify its composition in the notification. "(6)
The Tribunal shall consist of three members including President. "(7)
A member, director or chairman of a Co-operative Society including financing
bank may file in application before the tribunal through the registrar or his
authorised representative for necessary decision or order for the recovery of
any amount of loan dues from a member, past member or surety of a member and
past member of a registered society. "(8)
The order passed by the Tribunal shall have the same force and effect as that
of the decree of a Civil Court and a copy of such order shall be served on the
person against whom it is made in the manner laid down for the service of
summons in the Code of Civil Procedure, 1908 "(9)
Every order passed by the Tribunal shall be executed in the same manner decree
of a civil court under the Code of Civil Procedure, 1908 "(10)
Any person aggrieved by an order passed by the Tribunal may file and appeal
against such order to the State Government within 60 days after the date of
service of the order". For the existing Section 67
of the principal Act, the following shall substitute, namely:- "67.
"Distribution of fund of a dissolved On dissolution of a
society, the reserved fund and any undisbursed cash in hand shall be applied to
discharging liabilities of the society and the share capital. Any sum that may
remain thereafter may be transferred to Co-operative Development Fund for
utilisation in the manner as prescribed in the Co-operative Development Fund
Rules". For the existing Section 68
of the principal Act, the following shall substitute, namely:- "68. "Liquidator
to deposit the books and submit a final Report When the affairs of a
registered society had been wound-up the liquidator shall make a report to the
Registrar which in three years from the date of cancellation of registration,
who when satisfied shall order the liquidation proceeding to be closed. In
those cases where the required report cannot be submitted by liquidator within
the specified period due to compelling reasons such as non-availability of
records or members are not traceable or no transaction has taken place in the
society, the registrar shall on his own summarily order the closure of the
liquidation proceedings of the society". After Section 69 of the
principal Act, the following news Section 69 A shall be inserted, namely:- "69A. "Insured Cooperative
Banks. (1)
Notwithstanding anything contained in this Act. Order for winding
up, construction, suppression of Committee, not to be made without consultation
or requisition of Reserve Bank of India in the case of Insured Co-operative
Bank. (2)
An order for the winding up, or an order sanctioning a scheme of
compromise or arrangement, or of amalgamation, or reconstruction (including
division or amalgamation) of the bank may be made only with the previous
sanction in writing of the Reserve bank or India. (3)
On order for the winding up of the bank shall be made by the
Registrar if so required by the Reserve Bank of India in the circumstances
referred in Section 13 D of the Deposit Insurance and Credit Guarantee
Corporation Act, 1961. (4)
If so required by the Reserve Bank of India in the public interest
or for preventing the affairs of the bank being conducted in a manner
detrimental to the interest of the depositors or for securing the proper
management of the bank, an order shall be made by the Registrar in consultation
with the Reserve Bank of India for the suppression (removal) of the Committee
Board and the appointment of an executive officer therefore for such period or
periods, not exceeding three years in the aggregate as may from time to time be
specified by the registrar of Cooperative Societies after consultation with the
reserve Bank of India and the Executive Officer so appointed shall after the
expiry of his term of office continue in office until the day immediately
preceding the date of the first meeting of the new Committee. (5)
An order for the winding up of the bank or an order sanctioning a
scheme of compromise or arrangement or of amalgamation or reconstruction
(including divisions or amalgamation) or an order for the suppression (removal
of the Committee/Board and the appointment of an Executive Officer therefore
made with the consent in writing or an requisition of the Reserve Bank of India
shall not be liable to be called in question in any manner. (6)
The liquidator or the Insured Co-operative Bank or the transferee
bank, as the case may be, shall be under an obligation to repay the Deposit
Insurance Corporation established under the Deposit Insurance and Credit
Guarantee Corporation Act, 1961, in the circumstances, to the extent and in the
manner to in Section 21 of that Act. Explanation-
i) For the purpose of this section "a Co-operative Bank" means a Bank
as has been defined in the Deposit Insurance and Credit Guarantee Corporation
Act, 1961 ii) ????"Transferee Bank" in relation to
an insured Cooperative Bank which is an insured Bank under the provisions of
the Deposit Insurance and Credit Guarantee Corporation Act, 1961 iii) ???"transferee Bank" in relation to
an insured Cooperative Bank means Co-operative Bank. (a)
With which such insured Co-operative Bank in amalgamated: or (b)
To which the assets and liabilities or such insured Co-operative
Bank are transferred; or (c)
Into which such insured Co-operative Bank is divided or
amalgamated under the provisions of Section 15 of the Act". For the existing Section 70
of the principal Act, the following shall substituted namely:- "70. "Powers of
Registrar to direct payment Notwithstanding anything
contained in Chapter X, the registrar may on his own notion or on the written
requisition of a registered society or an affiliating society or a financing
bank for the recovery of any of due loan or other demand due from a defaulting
members, after making such enquiry as he deems fit, grant a Cooperative demand
Certificate for the recovery of the amount found to be due". In Section 72 of the
principal Act- i)
In sub-section (1), the words "or its vernacular equivalent
"amabaya" shall be omitted; ii)
In sub-section (2), for the words "fifty rupees" and
"five rupees", the words "five hundred rupees" and
"fifty rupees" shall respectively be substituted. In sub-section (b) of
Section 73 of the principal Act, for the words "which may extend to five
hundred rupees and in the case of the continuing offence a further five of fine
rupees for each day on which the offence is continued after conviction
therefore" appearing from the twelfth line' the words "which shall
not be less than two thousand rupees and which may extend to ten thousand
rupees" shall be substituted. In Section 74 of the
principal Act, for the words "five hundred rupees", the words
"five thousand rupees" shall be substituted. In Section 83 of the
principal Act- i)
In Section 75 of the principal Act, in clause (b), for the words
"fifty rupees", the words "five hundred rupees" shall be
substituted. i)
In sub-section (1), between the words "there under" and
"shall be" the words "except those referred to the Tribunal for
jurisdiction under sub-section (3) of Section 64" shall be inserted; ii)
For the existing sub-section (3), the following shall be
substituted, namely:- "(3) In case of the
recoverable loans dues referred to the tribunal, recovery of the same will be
made on the basis of the order passed by the tribunal and in the manner and the
procedure as laid down in Section 64" In Section 95 of the
principal Act, for the words, "contribution of such sum annually",
the words "lum-sum contribution of such sum annually" shall be
substituted. For the existing Section 97
of the principal Act, the following shall be substituted, namely:- "97. "Power of
the Managing body of an affiliating Society to enquire into the affairs of a
member society. "When a registered
society takes a loan and enters into business transaction with affiliating
society and defaults payment of the debt or dues on account of supply and
services received any member of the managing body of affiliating society, may
examine and look into accounts and working of such defaulting society and
report the result of enquiry or examination particularly with reference to the
said loan or other dues to the affiliating society and recommend any suggestion
in his report. The defaulter society shall furnish such information and produce
such documents, books and accounts as the member of the managing body may be
require". In Section 100 of the
principal Act, for the words, "fifty rupees", occurring in the fourth
line, the words "five hundred rupees" shall be substituted.
Preamble - MEGHALAYA COOPERATIVE SOCIETIES (AMENDMENT) ACT, 2003PREAMBLE