THE CHHATTISGARH
CO-OPERATIVE SOCIETIES ACT, 1960 [Act No. 17 of 1961] [28th April, 1961] [2]An Act to organise and develop co-operatives as democratic
instruments and people's institutions based on self help, and mutual aid, and
for curbing exploitation and ensuring socio-economic development of people with
particular emphasis on weaker sections of society.] Be
it enacted by the Chhattisgarh Legislature in the Eleventh Year of the Republic
of India as follows: (1)
This Act may be called The
Chhattisgarh Co-operative Societies Act, 1960. (2)
It extends to the whole of Chhattisgarh. (3)
It shall come into force on such date1
as the State Government may, by notification, appoint. In
this Act, unless the context otherwise requires,-- (a)
"Additional Registrar" means
an Additional Registrar of Cooperative Societies appointed under Section 3; [3][(a-i) "Apex Society" means a society whose
principal object is to provide facilities for the operation of other societies
affiliated to it and whose area of operation extends to the whole State of
Chhattisgarh]; (b)
"Assistant Registrar" means
an Assistant Registrar of Co-operative Societies appointed under Section 3; [4][(b-i) "Area of operation" means the area from
which the membership is drawn or as specified in the byelaws of the society;] (c)
"bye-laws" means the
bye-laws registered or deemed to have been registered under this Act and for
the time being in force, and includes a registered amendment of the bye-laws; [5][(c-i) "Central Society" means a Co-operative
Land Development Bank or any other society whose area of operation is confined
to a part of the State and which has as its principal object the promotion of
the principal objects and the provision of facilities for the operation of same
type of societies and for other societies affiliated to it and not less than
five members of which are societies]; [6][(c-ii) "Central Co-operative Bank" means a
resource society registered or deemed to be registered under this Act, which is
either licensed under the Banking Regulation Act, 1949 (10 of 1949) or
permitted by the Reserve Bank of India to do banking business till so licensed,
and (i)
has area of operation confined to part
of the State; and (ii)
has as its principal object, the
creation of funds and the obtaining credit, goods or services for and providing
credit, goods or services as loan to Co-operative Societies affiliated to it
for agriculture, industrial and other allied purposes]; [7][(c-iii) "Company" means a Company as defined in
Section 3 of the Companies Act, 1956 (1 of 1956)]; [8][(c-iv) "Co-operative Union" means a registered
society which has as its principal object the undertaking of co-operative
education, propaganda, training and extension of co-operative services]; [9][(d) "Committee" means the Board of a management
by whatever name called constituted under Section 48]; [10][(d-i) "Co-operative Bank" means a State
Co-operative Bank, a Central Co-operative Bank and a Primary Co-operative Bank,
registered or deemed to be registered under this Act]; (e) "Co-operative Society with limited liability"
means a society having the liability of its members limited by its bye-laws to
the amount, if any, unpaid on the shares respectively held by them or to such
amount as they may, respectively, undertake to contribute to the assets of the
society in the event of its being wound up; [11][(e-i) "Chief executive" means an individual
appointed under Section 49-E and who subject to superintendence, control and
direction of the Chairman of the Committee has been entrusted by the Committee
with the management of the affairs of the co-operative;] (f) [12][* * *] (g) "Consumers' Society" means a society formed
with the object of obtaining or producing and processing and distributing goods
to or performing other services for its members, as well as for other customers
and dividing among its members and customers in a proportion as may be laid
down in the bye-laws of such society, the profits accruing from such supply,
production, processing and distribution; [13][(g-i) "delegate" means a person elected by a
group of individual members to represent them in the general body of the
society in accordance with the bye-laws of the society;] [14][(g-ii) "Deposit Insurance and Credit Guarantee
Corporation" means the Deposit Insurance and Credit Guarantee Corporation
established under the Deposit Insurance and Credit Guarantee Corporation Act,
1961 (No. 47 of 1961);] (h) "Deputy Registrar" means a Deputy Registrar
of Co-operative Societies appointed under Section 3; [15][(hh) "Development Bank" means a Co-operative
Land Development Bank registered or deemed to be registered under this Act]; [16][(i) "Family" means a person, his spouse, his
children, dependent on him and his other relations dependent on him and jointly
residing with him;] (j) "Farming Society" means a society formed with
the object of promoting development of land and better methods of cultivation,
and includes a better farming society, tenant farming society, collective
farming society, joint farming society, irrigation society and a crop
protection society; [17][(k) "Federal Society" means a society of which
not less than fifty per cent of the share capital, excluding Government share
capital is held by Societies]; (l) "Financing Bank" means a Society, the objects
of which include the creation of funds to be lent to other societies or its
individual members, and includes a Land Mortgage Bank and the State
Co-operative Bank; (m) "General Society" means a society not falling
under any of the heads (i) to (ix) specified in sub-section (1) of Section 10; (n) "Housing Society" means a society formed with
the object of providing its members with residential accommodation; [18][(n-i) "Industrial Society" means a Society
formed with the objects of promoting development of weavers, carpenters, metal
workers, shoe makers or any other Society which aims at producing finished goods
from raw materials of any kind.] (o) "Joint Registrar" means a Joint Registrar of
Co-operative Societies appointed under Section 3; (p) "Liquidator" means a person appointed under
Section 70; (q) "Marketing Society" means a society formed
for the purpose of marketing agricultural or other produce and including among
its objects, the supply of the requisites of such production; (r) "Member" means a person joining in the
application for the registration of a society or a person admitted to
membership after registration in accordance with this Act, the rules and the
bye-laws applicable to such society and includes the State Government when it
subscribes to the share capital of a society; (s) "Multi-purpose Society" means a society which
includes amongst its objects any of the primary objects specified in any two or
more of the clauses (g), (n), (v) and (y); (t) "Nominal Member" means a person admitted to
membership of a society under Section 20; [19][(t-i)] "Officer" means a person elected or
appointed by a society according to its bye-laws to any office of such society
and includes a Chairman, Vice-Chairman, President, Vice-President, Managing
Director, Manager, Secretary, Treasurer, Member of the Committee and any other
person elected or appointed under this Act, the rules or the bye-laws to give
directions in regard to the business of such society; [20][(u) "Other backward classes" means category of
persons belonging to backward classes as notified by the State Government;] [21][(u-i) "Primary Society" means a society which is
neither an Apex Society nor a Central Society]; [22][(u-ii) "Primary Agriculture Credit Cooperative
Society" means a society organized with the main objective of making
credit available for agriculture production and includes a Primary, Service Cooperative
Society and Adimjati Sewa Sahakari Samiti]; [23][[24](u-iii)] "Primary Co-operative Bank" means a
resource society other than a village or urban resource society not registered
as bank, the objects of which include creation of funds to be lent to and
obtaining credit to be extended to its Regulation Act, 1949 (10 of 1949) or
permitted by the Reserve Bank of India to do banking business till so
licensed;] (v) "Producers' Society" means a society formed
with the object of producing and disposing of goods as a collective property of
its members and includes a society formed with the object of the collective
disposal of the labour of its members; (w) "Processing Society" means a society formed
with the object of producing goods by mechanical or manual process and includes
an industrial society and a society for the processing of agricultural
commodities; (x) "Registrar" means the Registrar of
Co-operative Societies appointed under Section 3; [25][(x-i) "Representative" means a member of society
to represent the society in other societies]; [26][(x-ii) "Reserve Bank" means the Reserve Bank of
India established under the Reserve Bank of India Act, 1934 (No. 2 of 1934)]; (y) "Resource Society" means a society formed
with the object of obtaining for its members the credit, goods or services
required by them and includes a service society and a primary credit society; [27][(y-i) "Returning Officer" means an officer
appointed by the Registrar by general or special order for performing the
duties of a Returning Officer
under this Act or the rules made there under and includes an officer
subordinate to the Returning Officer nominated in writing by him to perform the
duties of Returning Officer;] [28][(y-ii) "Scheduled area" means the area which has
been declared under the Scheduled Area (State of Bhiar, Gujarat, Chhattisgarh
and Orissa) Order, 1977.] (z) "Society" means a co-operative society
registered or deemed to be registered under this Act; [29][(z-i) "Specified office" means the office of the
President or Chairman]; (aa) "State Co-operative Bank" means the
Chhattisgarh State Co-operative Bank Limited; (bb) "Student" means a person studying in any
educational, vocational or training institution; [30][(cc) "Tribunal" means the Chhattisgarh State
Co-operative Tribunal constituted under Section 77.) (a)
it must be intra virus of the
authority who makes it; (b)
it must not be repugnant to the law of
the contrary; (c)
it must be certain in its term and
positive; (d)
it must be reasonable. (1)
The State Government shall appoint a
person to be the Registrar of Co-operative Societies for the State and may
appoint one or more officers of the following categories to assist him, namely: (a)
Additional Registrar of Co-operative
Societies; (b)
Joint Registrar of Co-operative
Societies; (c)
Deputy Registrar of Co-operative
Societies; (d)
Assistant Registrar of Co-operative
Societies; (e)
such other categories of officers as
may be prescribed. (2)
The officers appointed to assist the
Registrar shall, within such areas as the State Government may specify,
exercise such powers and perform such duties conferred and imposed on the
Registrar by or under this Act as the State Government may, by special or
general order, direct: [31][Provided that no officer other than the Additional
Registrar or the Joint Registrar shall be directed to exercise the powers to
hear appeals under Section 78]. (3)
The Officers appointed to assist the
Registrar shall be subordinate to him and shall work under his general
guidance, supervision and control. Subject
to the provisions of this Act, a society which has as its objects the promotion
of the economic interest of its members or their general welfare in accordance
with co-operative principles or a society established with the object of
facilitating the operations of such a society, may be registered under this
Act. A
society may be registered with limited or unlimited liability: Provided
that unless the State Government by a general or special order otherwise
directs, the liability of a society of which another society is a member shall
be limited. [32][(1) No society, other than a society of which another
society is a member, shall be registered under this Act unless it consists of
at least [33][twenty] persons competent to contract under Section 11 of
the Indian Contract Act, 1872 (IX of 1872) and belonging to [34][twenty] different families, not being near relations and,
where the objects of the society include the creation of funds to be lent to
its members, unless such persons, save where the Registrar by general or
special order otherwise directs, reside in the same town or village or in a
compact group of villages: Provided
that a society formed exclusively for the benefit of students may be
registered, notwithstanding that the members of such society may not have
attained the age of majority according to the law to which they are subject: [35][Provided further that the Registrar may relax the
condition of minimum membership to that society which is organized for the
welfare of the employees of any organization/establishment]. [36][Provided also that in case of a primary society, there
shall be at least 33 per cent women members at the time of registration: Provided
also that the Registrar may, for sufficient reasons, relax the conditions of
the prescribed percentage of women members.] (2) The word
"limited" or its equivalent in any Indian language shall be the last
word in the name of every society registered with limited liability under this
Act. (1)
For purposes of registration, an
application to register a society shall be made to the Registrar in the
prescribed form and shall be accompanied by four copies of the proposed
bye-laws of the society. The person by whom or on whose behalf such application
is made, shall furnish such information in regard to the society, as the
Registrar may require. (2)
The application shall be signed- (a)
in the case of a society of which no
other society is a member, by at least ten persons qualified in accordance with
the requirements of Section 6; and (b)
in the case of a society of which a
member is a registered society, by a duly authorized person on behalf of every
such registered society and where all the members of the society are not
registered societies, by ten other members, or when there are less than ten
other members, by all of them. [37][Where in connection with the formation, registration or
continuance of a society or the admission of a person as a member of a society
any question arises whether a person is an agriculturist or not or whether any
person resides in a particular area or not or whether any person belongs to any
particular class or occupation or not or such other question pertaining to the
eligibility of any person to become a member of a society, such question shall
be decided by the Registrar and his decision shall be final]. (1)
If the Registrar is satisfied that a
society has complied with the provisions of this Act and the rules and that its
proposed bye-laws are not contrary to this Act or the rules, he may register
the society and its bye-laws with such modifications as he may consider
necessary: Provided
that no society shall be registered, if in the opinion of the Registrar, it is
likely to be economically unsound or is likely to have an adverse effect upon
any other society. (2)
Where the Registrar refuses to
register a society or its bye-laws he shall communicate the order of refusal
together with reasons therefore to the first signatory to the application. [38][(3) The Registrar shall take a decision within ninety days
from the date of receipt of an application for registration of a society: Provided
that where there is a failure on the part of the Registrar to dispose of such
application within the period aforesaid the Registrar shall within the period
of fifteen days from the date of expiration of that period, refer the
application to the next higher officer and where the Registrar himself is the
registering officer to the State Government, who or which, as the case may be,
shall dispose of the application within two months from the date of its receipt
and on the failure of such higher officer or State Government, as the case may
be, to dispose of the application within that period, the society and its
byelaws shall be deemed to have been registered.] [39][(4) The Registrar shall maintain register of societies
registered or deemed to be registered under this Act.] [40][(1) The Registrar shall classify all societies under one
or more of the following heads, namely:- (i)
Consumers' Society; (ii)
Farming Society; (iii)
Federal Society; (iv)
Central Society; (v)
Housing Society; (vi)
Marketing Society; (vii)
Multipurpose Society; (viii)
Producers' Society; (ix)
Processing Society; (x)
Resource Society; (xi)
General Society; [41][(xii) Industrial Society.] Provided
that a society formed with the object of facilitating the operations of any
particular class of societies shall be classified as a society of that class]. [42][(1-a) The Registrar may further classify the societies
falling under any of the heads specified in sub-section (1) under the following
heads, namely; (a)
Apex Society; (b)
Central Society; (c)
Primary Society. (2) The Registrar
for reasons to be recorded in writing may alter the classification of any
society from one head to another. (3) The decision of
the Registrar in respect of classification of societies shall be final. [43][(1) No amendment of the bye-laws of a society shall be
valid until the same has been registered under this Act, for which purpose four
copies of the proposed amendment shall be forwarded in the prescribed manner to
the Registrar. (2) If the
Registrar is satisfied that the proposed amendment is not contrary to this Act
or the rules and is not against the aims and objects of the Society or any of
its existing bye-laws, he may register the amendment. [44][(3) The Registrar shall not refuse to register an
amendment of the byelaws without giving an opportunity to the applicant
society, for being heard. If he decides to refuse to register an amendment, he
shall communicate the order of refusal together with reasons therefore to the
society within forty-five days from the date of receipt of the proposal: Provided
that, where there is a failure on the part of the Registrar to dispose of such
application within the period aforesaid, the Registrar shall, within a period
of fifteen days from the date of expiration of that period, refer the
application to the next higher officer and where the Registrar himself is the
registering officer, to the State Government, who or which, as the case may be,
shall dispose of the application within two months from the date of its receipt
and on the failure of such higher officer or the State Government, as the case
may be, to dispose of the application within that period, the amendment of the
byelaws shall be deemed to have been registered.] [45][(1) Notwithstanding anything contained in this Act, or the
rules or byelaws, on the request of more than fifty per cent of the members of
the society or if the Registrar considers that an amendment of the byelaws of
society is necessary or desirable in the interest of such society, he may, by
an order in writing to be served on the society in the prescribed manner,
require the society to make the amendment within sixty days.] [46][(2) If the society fails to make the amendment within the
time specified by the Registrar, the Registrar may after giving the society an
opportunity of being heard and after soliciting the opinion of such Apex
Federal Society, as may be notified by the State Government, register such
amendment and issue a certified copy thereof to such society:] [47][Provided that the provisions of this section shall not
apply in the case of Urban Co-operative Banks.] A
society may, by an amendment of its bye-laws, change its name, but such change
shall not affect any right or obligation of the society, or of any of its
members, or past members, or deceased members, or render defective any legal
proceedings by or against the society, and any legal proceedings which might
have been continued or commenced by or against the society by its new name. [48][(1) Where a society is registered or deemed to be
registered under this Act, the Registrar shall issue a certificate of
registration signed by him and such certificate shall be conclusive evidence
that the society therein mentioned has been duly registered unless it is proved
that the registration of the society has been subsequently cancelled: Provided
that where a society is deemed to be registered under this Act, the Registrar
shall issue a certificate of registration with sixty days from the date on
which it was deemed to be registered]. (2) No society
shall commence business unless it has obtained a certificate of registration
under sub-section (1) and every member of such society carrying on business in
contravention of this sub-section shall be severally liable for all liabilities
incurred in such business. (3) When the
Registrar registers an amendment of the bye-laws of a society under Section 11
or Section 12, he shall issue to the society a copy of the amendment registered
by him, which shall be conclusive evidence that the same is duly registered. (4) Where a society
changes its name under Section 13, the Registrar shall amend the certificate of
registration accordingly which shall be conclusive evidence that the change of
name is duly registered. (1)
Subject to the provisions of Section
11, a society may by an amendment of its bye-laws change its liability from
limited to unlimited or from unlimited to limited. (2)
No such amendment shall be registered
by the Registrar unless he is satisfied that- (i)
twenty-one days' notice has been given
to every member of the society and to any person or class of persons whose
interest may, in the opinion of the Registrar, be affected by the change; and
(ii) with respect to every such member or person who, in the opinion of the
Registrar, is entitled to notice- (a)
either his assent has been obtained to
the change or is deemed to have been obtained by virtue of his failure to
object within twenty one days from the date of the notice, (b)
if he objects- (ii)
he is allowed to withdraw his share,
if he is a member, or (iii)
that his debt or claim has been
discharged or has been determined or has been secured to the satisfaction of
the Registrar within three months from the date of receipt of objection if he
is a creditor: Provided
that the Registrar may in the case of any person or class of persons, for
special reasons, to be recorded, dispense with the notice required by this
sub-section. (1)
In this section- (a)
"affected society" means a
society which decides to reorganize itself in any of the manners specified in
sub-section (2); and (b)
"resulting society" means a
society- (i)
which is formed as a result of
amalgamation under clause (a) of sub-section (2); or (ii)
to which the assets and liabilities of
the affected societies are transferred in whole or in part under clause (b)
sub-section (2); or (iii)
which is formed as a result of
division under clause (c) of sub-section (2); or (iv)
which is the result of change of class
as provided in clause (d) of sub-section (2). (2)
A society may, by resolution passed by
two-third majority of the members present and voting at a special general
meeting held for the purpose decide to reorganize itself by- (a)
amalgamating itself with another
society; or (b)
transferring its assets and
liabilities in whole or in part to any other society; or (c)
dividing itself into two or more
societies; or (d)
converting itself into a class of
society, the object of which is materially different from that under which it
has been classified under this Act: Provided
that no such decisions shall take effect unless it is approved by the Registrar: [49][Provided further that in case of a Co-operative Bank, the
Registrar shall not give his approval save with the previous sanction in
writing of the Reserve Bank]. (3)
Notwithstanding anything contained in
sub-section (2) where the Registrar is satisfied that it is essential in the
public interest or in the interest of the members of the affected societies or
necessary to secure the proper management of any society, he may direct that
any society or societies shall reorganize itself or themselves in any one or
more of the modes indicated in sub-section (2): [50][Provided that, in the case of a Co-operative Bank, the
Registrar shall not issue any direction save with the previous sanction in
writing of the Reserve Bank: Provided
further that before a final order under this sub-section is passed by the
Registrar every society concerned shall be given an opportunity of expressing
its opinion on the reorganization proposals.] (4)
The procedure for reorganization of a
society in accordance with the decision under sub-section (2) or the direction
of the Registrar under sub-section (3), as the case may be, shall be such as
may be prescribed. (5)
If any such reorganization under
sub-section (2) or (3) is likely to affect in any manner the interest of any
person, notice thereof shall be given to all such persons and every such person
shall be given an option, to be exercised within a month from the date of the
issue of such notice, of either becoming a member of the resulting society or
societies or of demanding the payment of the share or interest or dues in
respect of the affected society, as the case may be. (6)
No reorganization shall be final until
the assent of every such person whose interest is likely to be affected, has
been obtained or deemed to have been obtained by virtue of his failure to
exercise the option given to him, and further, unless all the claims of persons
who have exercised the option of demanding the payment of their shares or
interests or dues under sub-section (5) have been met in full. (7)
Every resulting society under this
section shall have such constitution, property, powers, rights, interests,
authorities, duties and obligations as may be specified in the scheme of
reorganization and every such scheme of reorganization may contain such
consequential, incidental and supplemental provisions as may, in the opinion of
the Registrar, be necessary to give effect to such scheme. (8)
Notwithstanding anything contained in
the Transfer of Property Act, 1882 (IV of 1882) or the Indian Registration Act,
1908 (XVI of 1908), a resolution of a society approved by the Registrar under
sub-section (3) shall be sufficient conveyance to vest the assets and
liabilities of each affected society in the resulting society or societies
concerned, such vesting being subject only to the provisions of the scheme of
reorganization. (9)
The reorganization of societies shall
not in any manner, whatsoever affect any right or obligation of the resulting
society or societies or render defective any legal proceedings by or against
the society or societies and any legal proceedings that might have been continued
or commenced by or against the society or the societies, as the case may be,
before the reorganization may be continued or commenced by or against the
resulting society or societies. (10)
Where any two or more societies have
been amalgamated or a society has been divided or converted, the registration
of such society or societies shall be deemed to have been cancelled on the date
of registration of the amalgamated society or of the converted society or of
the new societies into which the society may have been divided. (11)
Where a land mortgage bank has been
reorganized by amalgamation with a central bank, the amalgamated bank shall in
respect of all transactions relating to the land mortgage bank business made on
and after such amalgamation be deemed to be a land mortgage bank within the
meaning of the law relating to Land Mortgage Banks for the time being in force. Explanation-For
the purposes of this section "Central Bank" means a society with the
words "Central Bank" or "District Bank" as part of its name
and whose main object is to finance societies which are members of it and lie
within a specified area. (12)
Every scheme of such reorganization
shall be published in the official Gazette for general information. [51][Any society may, enter into the collaboration with any
Government Undertaking or any undertaking approved by the State Government for
carrying on any specific business including industrial investment, financial
aid or marketing and management expertise]. [52][Any two or more societies may by resolution passed at
general meeting by a majority of members present and voting in each such
society enter into a contract of a partnership for carrying out any specific
business permissible under the byelaws on such terms and conditions as may be
mutually agreed upon. Where such partnership requires creation of a new
organization, the participating society shall be its members.] (1)
Notwithstanding anything contained in
this Act, or the rules made there under where a compromise or arrangement is
proposed between (a) a society and its creditors or any class of them, and (b)
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 the liquidator, order a meeting of the members, or
creditors or both, as the case may be, to be called, held and conducted in such
manner as may be prescribed: Provided
that the Registrar may, on his own motion, order such a meeting to be called
for the purpose of affecting a compromise or arrangement. (2)
If a majority in number representing
three-fourth of the members or three-fourth of the total amount of valuation
due to the creditors, as the case may be, present and voting in person at the
meeting agree to any compromise or arrangement the compromise or arrangement
shall, if confirmed by the Registrar, be binding on all members or all the
creditors, as the case may be, and also on the society, or in the case of a
society which is being wound up, on the liquidator: Provided
that the Registrar shall not confirm a compromise or arrangement unless he is
satisfied that all the members or creditors, as the case may be, whose
interests are affected by such compromise or arrangement, had notice of such
meeting: [53][Provided further that in case of a Co-operative Bank the
Registrar shall not confirm the compromise, or arrangement, save with the
previous sanction in writing of the Reserve Bank]. (3)
When an order cancelling a meeting is
passed under sub-section (1) or the proviso thereof for considering any
compromise or arrangement between a society and its creditors or any class of
them, the Registrar may give notice of such order to a Civil Court in which
proceedings, whether instituted before or after the order, in respect of any
liability of the society due to a creditor to whom a copy of the order is posted,
are pending and on receipt of such notice the Civil Court shall stay the
proceedings. If no such compromise of arrangement is confirmed under
sub-section (2), the Registrar shall inform the Civil Court accordingly and the
proceedings which may have been stayed, shall be resumed. (4)
If a compromise or arrangement between
a society and its creditors or any class of them is confirmed under sub-section
(2) the proceedings, if any, stayed under sub-section (3) shall abate and no
proceedings shall lie in a Civil Court in respect of any liability of the
society to which the compromise or arrangement relates. (5)
The Registrar may, with the previous
approval of the State Government, exempt any class of creditors from the
operation of this section or any provisions thereof. (6)
A compromise or arrangement confirmed
by the Registrar shall not be called in question in any Civil Court. (7)
If a creditor in respect of whom a
compromise or arrangement has been confirmed by the Registrar under sub-section
(2), fails to receive the amount payable to him under such compromise or
arrangement after due notice to do so with in the period specified in such
notice, the society or the liquidator, as the case may be, shall deposit the
amount in such manner as may be directed by the Registrar. On the making of
such deposit the amount payable to the creditor under the compromise or
arrangement shall be deemed to have been paid to the extent of the deposit. (8)
A compromise or an arrangement between
a society and its creditors or any class of them confirmed by the Registrar
under sub-section (2) shall cease to be in force as soon as the whole amount of
the liability determined there under has been or is deemed to have been paid
whether under the provisions of this section or otherwise notwithstanding that
the period originally stipulated for the discharge of such liability has not
expired. (9)
After such compromise or arrangement
has ceased to be in force no further claim shall remain against the society, or
against any property, movable or immovable which it may acquire thereafter, in
respect of the liability which had been the subject of the compromise or
arrangement, and society shall be free to conduct its normal business. [54][Where an order of moratorium has been made by the Central
Government under sub-section (2) of Section 45 of the Banking Regulation Act,
1949 (No. 10 of 1949) in respect of Co-operative Bank, the Registrar with the
previous approval of the Reserve Bank in writing, may, during the period of
moratorium, prepare a scheme,- (i)
for the reconstruction or
re-organization of the Co-operative Bank; or (ii)
for the amalgamation of the
Co-operative Bank with any other Bank.] [55][Notwithstanding anything contained in this Act, where a
Co-operative Bank being an insured bank within the meaning of the Deposit
Insurance Corporation Act, 1961 (No. 47 of 1961) is amalgamated or in respect
of which a scheme of compromise or arrangement or of reconstruction or
reorganization has been sanctioned and the Deposit Insurance Corporation has
become liable to pay to the depositors of the insured bank under sub-section
(2) of Section 16 of that Act, the bank with which such insured bank is
amalgamated or the new co-operative bank formed after such amalgamation or as
the case may be, the insured bank or transferee bank shall be under an
obligation to repay to the Deposit Insurance Corporation in the circumstances,
to the extent and in the manner referred to in Section 21 of the Deposit
Insurance Corporation Act, 1961 (No. 47 of 1961)]. [56][(1) The Registrar shall make an order cancelling the
registration of a society, if it transfers the whole of its assets and
liabilities to another society, or amalgamates with another society, or divides
itself into two or more societies or it is de-registered under the provisions
of sub-section (1) of Section 18-A or it is wound up under Section 69. 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]. (2) Notwithstanding anything contained in this Act
if any proceedings relating to the winding up or dissolution of a society are
pending immediately before the commencement of this Act, such proceedings shall
after such commencement be disposed of in accordance with the provisions of the
law under which such society was registered or deemed to be registered. [57][(1) If the Registrar is satisfied that any society is
registered on misrepresentation made by applicants, or where the work of the
society is completed or the purposes for which the society has been registered
are not served, he may, after giving an opportunity of being heard to the chief
promoter, the committee and the members of the society, de-register the society: Provided
that, where the number of members of the society is so large and it is not
possible to ascertain the correct addresses of all such members from the
records in the office of the Registrar and, in the opinion of the Registrar it
is not practicable to serve a notice of hearing on all such individual members,
a public notice of the proceedings of the de-registration shall be given in the
prescribed manner and such notice shall be deemed to be notice to all the
members of the society, including the chief promoter and the members of the
committee of the society, and no proceeding in respect of the de-registration
of the society shall be called in question, merely on the ground that
individual notice is not served on any member. (2) When a society
is de-registered under the provisions of sub-section (1), the Registrar may,
notwithstanding anything contained in this Act, make such incidental and
consequential order including appointment of official assignee as the
circumstances may require. (3) Subject to the
rules made under this Act, the official assignee shall realize the assets and
liquidate the liabilities within a period of one year from the date he takes
over the charge of property, assets, books, records and other documents. The
period aforesaid may, at the discretion of the Registrar, be extended from time
to time, so however, that the total period does not exceed three years in the
aggregate. (4) The official
assignee shall be paid such remuneration and allowances as may be prescribed. (5) The powers of
the Registrar under sub-sections (1) and (2) shall not be exercised by any
officer below the rank of a Joint Registrar of Co-operative Societies.] [58][(1) No person shall be admitted as a member of a society
except the following, namely: (a) an individual
competent to contract under Section 11 of the Indian Contract Act, 1872 (No. 9
of 1872); (b) any other
society; (c) a public trust
registered under the Chhattisgarh Public Trusts Act, 1951 (No. 30 of 1951); [59][(d) a firm, company or any other body corporate, not
having minors as partners or directors, registered established or constituted,
as the case may be, under any law for the time being in force;] (e) a society
registered under the Chhattisgarh Societies Registration Act, 1959 (No. 1 of
1960), as may be approved by the State Government in this behalf by general or
special order; (f) the State
Government: Provided
that the provisions of clause (a) shall not apply to-- (i)
an individual seeking admission to a
society exclusively formed for the benefit of students; (ii)
a minor acting through a guardian
appointed by the Court]. (2) Notwithstanding
anything to the contrary in this Act or rules or in the byelaws of a society,
where the State Government has contributed to the share capital of a society,
the liability of the State Government shall be limited to the face value of the
shares held by it. [60][(2-A) Notwithstanding anything contained in this Act or
rules made there under or in the byelaws of a resource Society or consumers
society, as the case may be, if any person duly qualified for admission as a
member under the provisions of this Act and the byelaws of that Society makes
an application for membership of such Society, he shall be deemed to have been
admitted as a member of such Society from the date of receipt of the
application in the office thereof: Provided
that the Registrar may, either on his own motion at any time or on an
application by the society or any aggrieved person made within fifteen days
from the aforesaid date and after giving reasonable opportunity to the society
or person concerned by order, declare such person as not eligible for
membership of such society for the reasons mentioned therein, within forty five
days from the date of receipt of application by the Registrar]. (3) Where a
student, who is not competent to contract under Section 11 of the Indian
Contract Act, 1872 (IX of 1872), desires to become a member of a society formed
exclusively for the benefit of students, his application for the registration
of a society or his application for membership shall be accompanied by a
written undertaking from his guardian or other person competent to contract
under Section 11 of the said Act in the prescribed form, in respect of the
liability of the student as a member. (4) Where a person
is refused admission as a member in a society, the decision refusing admission
shall be communicated by the society to that person within [61][thirty days] of the date of such decision. [62][(5) No society shall, without sufficient cause, refuse
admission to membership to any person, duly qualified therefore under the
provisions of this Act and the byelaws of the society. (6) Any person
aggrieved under sub-section (4) or sub-section (5) may appeal to the Registrar
within ninety days of the date of rejection. (7) The decision of
the Registrar in appeal shall be final and the Registrar shall communicate his
decision to the parties within [63][thirty] days from the date thereof.] [64][(1) [65][No person shall be eligible for admission as member and
any member shall cease to be a member of a society, if]- (a)
he is an applicant to be adjudicated
or is an undischarged insolvent; (b)
he has been sentenced for an offence
involving moral turpitude and a period of five years has not elapsed from the
date of expiry of sentence; [66][(bb) he has been sentenced for an offence under the
provisions of the Protection of Civil Rights Act, 1955 (No. 22 of 1955) and a
period of six years has not elapsed from the date of expiry of sentence.] (c)
he or any member of his family, having
common interest with him, carries on business similar to one carried on by the
society: Provided
that the provisions of clause (b) shall not apply to a person seeking admission
as member of a society exclusively formed or to be formed for the reclamation
of Vimukta Jatis. [67][(d) If he is disqualified under Section 48-A of the Act; (e) If he is a
person who has been dismissed from the service of any co-operative institution
or Government service.] [68][(f) In case of a Primary Agriculture Credit Co-operative
Society, he is not a Bhumiswami, occupancy tenant or a Government lessee
holding agricultural land: Provided
that a member of such society on the 26th day of April, 1990 who is not a
Bhumiswami, occupancy tenant or a Government lessee shall as from such date be
a nominal member of such society.] Explanation.-For
the purposes of this sub-section- (i)
"Vimukta Jatis" means such
tribes as the State Government may, from time to time, by general or special
order, declare as Vimukta Jatis for the purpose of this sub-section; (ii)
the business carried on by a trader
including that of money lending shall be deemed to be similar to the business
carried on by a marketing society.] [69][x x x] [70][No person shall be eligible for election as a member of
the committee of a society and shall cease to hold his office as such if he
suffers from such disqualification as may be prescribed. No society shall elect
any member as its representative to the committee of any other society or to
represent the society in other society, if he suffers from such
disqualification, as may be prescribed: Provided
that, if a member suffers from any of the disqualifications prescribed under
this section- (i)
it shall be lawful for the committee
of the society to disqualify such member where he is elected as a Director
being a member of that society, after giving him a reasonable opportunity of
being heard, within two months from the date of coming to the notice of the
society from holding the post, (ii)
if, the member incurs a
disqualification, in the higher level society, for his actions as a
representative, such higher level society shall take action to disqualify him
for holding the post in the higher level society. If
the society fails to take action, the Registrar shall disqualify such member
from holding such post by an order in writing after giving him reasonable
opportunity of being heard.] [71][If any person having been admitted as a member of a
society subsequently becomes subject to any of the disqualifications specified
in Section 19-A, such person shall cease to be a member of the society and the
Registrar shall declare his seat to be vacant.] [72][[73][(1) The Committee may, by a resolution passed by
three-fourth majority of the members present and voting at a meeting held for
the purposes, expel a member if he- (a)
intentionally does any act likely to
injure the credit of the society or bring it to disrepute; or (b)
willfully deceives the society by
false statements; or (c)
carries on any business which comes or
is likely to come into conflict with the business carried on by the society; or (d)
persistently makes default in payment
of his dues or fails to comply with any provisions of the bye-laws: Provided
that no such resolution shall be valid unless the member concerned has been
given seven days' notice, either personally or by registered post, of the
proposal to expel him and has been given an opportunity to represent his case
to the committee]. [74][(1-A) Any person aggrieved by the resolution of the
Committee under sub-section (1) may appeal before the Registrar within 30 days
of the communication of such resolution.] [75][(2) Notwithstanding anything contained in this Act or
rules or bye-laws made there under, where it appears to the Registrar that it
is necessary and desirable in the interest of the society to expel a member
from the society for his indulging in any of the activities specified in
sub-section (1), he may call upon such member and the society, to explain
within a period to be specified by him, why such member should not be expelled
from the society. If the member or society fails to furnish his or its
explanation, with in the specified period or after considering the explanation,
if received, the Registrar may pass an order expelling a member from the
society.] [76][(3) No person who has been expelled shall be eligible for
re-admission as a member of the co-operative for a period of one year from the
date of such expulsion.] [77][(4) Expulsion of a member from a society may involve
forfeiture of shares held by the member in such society.] [78][x x x] Notwithstanding
anything contained in Section 19, a society may admit any person as a nominal
member who shall have no share either in the management or profits of a society
and shall not be subject to any contributory liability in the case of winding
up of the society. No
member shall exercise the rights of a member unless he has made such payment to
the society in respect of membership or acquired such interest in the society
as may be prescribed or as may be specified in the bye-laws of such society. [79][(1) Every member of the society shall have one vote in the
affairs of the society. (2) (a) The voting right of federal
society shall be so regulated that the members, which are societies, do not
have less than four-fifth of the total number of votes in the general meeting
of such society. (b)
In case of federal society the voting rights of individual members (which term
shall include public trust, firm, company or body corporate, society registered
under the Chhattisgarh Society Registrikaran Adhiniyam, 1973 (No. 44 of 1973),
and State Government but shall not include a Co-operative society) shall be
regulated in such manner as may be prescribed. (3) Every
affiliated co-operative society through its properly authorized representative
and every delegate referred to in clause (b) of sub-section (2) shall have one
vote in the general meeting. (4) The quorum for
the meeting shall, unless otherwise provided in the byelaws of a society, be
one-fifth of the total number of delegates and representatives of the
societies: Provided
that the delegates shall not at any time in the meeting exceed one-fifth of the
member representatives of the societies. (5) The elections of
delegates shall be held in accordance with the provisions prescribed for
election of the members of the committee. [80][(6) Any vacancy of a delegate caused on account of
cessation of membership or otherwise, shall be filled in by delegates by
co-opting one of the individual members of the group to which the vacancy
relates.] (7) Unless
otherwise directed by the Registrar in respect of any particular society the
delegates on the committee shall not at any time exceed one-third of the number
of representatives of societies (fractions being neglected). (8) In the case of
equality of votes the Chairman shall have a second or casting vote.] (1)
Every member of a society shall
exercise his vote in person and no member shall be permitted to vote by proxy: Provided
that subject to any rules made under this Act- [81][(i) (a) a society which is a member of another
society may appoint one of its members as a representative to vote on its
behalf, (b)
a group of individual members formed by the society in accordance with its
bye-laws may elect one of the members in the group as a delegate to vote on
their behalf.] (ii) the State
Government may nominate one of its officers as its representative, to vote or
otherwise participate in its behalf in the affairs of the society of which such
society or the State Government is a member; [82][(iii) a public trust which is a member of a society may
appoint, in writing, any one of its trustees to vote on its behalf; (iv) a firm which is a member of a society may appoint, in
writing, any one of its major partners to vote on its behalf; and (v) a company or
any other body corporate which is a member of a society may appoint, in
writing, any of its directors or officers to vote on its behalf.] (2)
Where a share is held jointly by more
than one person and if- (i)
in respect of such share a share
certificate is issued by the society, the person whose name stands first in
such share certificate; and (ii)
in respect of such share no share
certificate is issued by the society, the person whose name stands first in the
register of members maintained by such society; shall
have the right to vote. In
any society, no member, other than the State Government or any other society,
shall- (a)
hold more than such portion of the
total share capital of the society not exceeding one-fifth thereof as may be
prescribed; or (b)
have or claim any interest in the
shares of the society exceeding [83][twenty thousand] rupees: Provided
that the State Government may, by notification, specify in respect of any class
of societies a maximum exceeding one-fifth of the share capital or [84][twenty thousand] rupees, as the case may be. (1)
The transfer of a share or interest of
a member in the share capital of a society shall be subject to the restrictions
as to the maximum holdings specified in Section 24. (2)
No transfer by a member of his share
or interest in a society shall be valid unless- (a)
the member has held such share or
interest for not less than one year; (b)
the transfer is made to the society or
to a member of the society; and (c)
the transfer is approved by the
Committee. (1)
On the death of a member, a society
may transfer the share or interest of the deceased member to the person
nominated in accordance with the rules made in this behalf, or, if there is no
person so nominated, to such person as may appear to the Committee to be the
heir or legal representative of the deceased member, or pay to such nominee,
heir or legal representative, as the case may be, a sum representing the value
of such member's interest, as ascertained in accordance with rules or bye-laws. (2)
A society may pay all other moneys due
to the deceased member from the society to such nominee, heir or legal
representative, as the case may be. (3)
All transfers and payments made by a
society in accordance with the provisions of this section shall be valid and
effectual against any demand made upon the society by any other person. [85][Subject to the provisions of Section 39, the share or
interest or deposit of a member in the capital or working capital of society or
in the loan stock issued by a housing society or in the funds raised by a
society from its members by way of savings deposit or by compulsory deductions
made by it from wages or in the form of surcharge on the value of sale or
supply of goods to members, shall not be liable to attachment or sale under any
decree or order of a Court for or in respect of any debt or liability incurred
by the members or past members and accordingly neither a Receiver under the
Provincial Insolvency Act, 1920 (No. 5 of 1920), nor any such person or
authority under any corresponding law for the time being in force shall be
entitled to, or have any claim on such share or interest or deposit.] (1)
Every society shall keep open to
inspection for its members free of any charge, at all reasonable times at the
registered address of the society- (a) a copy of this Act; (b) a copy of the rules; (c) a copy of the bye-laws of the society; and (d) a register of members. [86][(e) the last audited annual balance sheet, the profit and
loss account; and (f) the minutes of the general meetings.] (2)
All registers and record of a society
except books and other documents relating to accounts other than one's own
shall be open to inspection in the office of the society by any member of such
society on payment of such fee as may be specified in the bye-laws. (3)
Subject to such conditions and on
payment of such fees as may be specified in the bye-laws, the society shall, on
an application made by any member thereof grant him a certified copy of such
records or registers or extracts thereof. [87][(1) Subject to the provisions of sub-section (2), the
liability of a past member or of the estate of a deceased member of a society
for the debts of the society as they stood: (a)
in case of a past member, on the date
on which he ceased to be a member, and (b)
in case of a deceased member, on the
date of his death; shall
continue for a period of two years from such date. (2) Where a society
is ordered to be wound up under any provisions of this Act, the liability of a
past member or of the estate of a deceased member who ceased to be a member or
died, within two years immediately preceding the date of the order for winding
up shall continue until the entire liquidation proceedings are completed; but
such liability shall extend only to the debts of the society as they stood on
the date of his ceasing to be a member or of his death as the case may be.] Notwithstanding
anything contained in the Provincial Insolvency Act, 1920 (V of 1920), in an
insolvency proceeding against a member of a society, the dues of the society
shall have priority over all other dues except those payable to Government. The
registration of a society shall render it a body corporate by the name under
which it is registered, having perpetual succession and a common seal, and with
power to hold property, enter into contracts, institute and defend suits and
other legal proceedings and to do all things necessary for the purposes for
which it was constituted. [88][(1) Every society shall have an address registered in
accordance with the rules to which all notices and communications may be sent,
and shall send a notice in writing to the Registrar of any change therein
within thirty days of the change. (2) Every society
shall display its name and the address of its registered office and the words
"Registered under Chhattisgarh Co-operative Societies Act, 1960" in
legible characters in conspicuous position- (a)
at every office or place at which it
carries on business; (b)
in all notices and other official
publications; (c)
on all its contracts, business
letters, orders for goods, invoices, statements of account, receipts and
letters of credit; and (d)
on all bills of exchange, promissory
notes, endorsement, cheques and orders for money it signs or that are signed on
its behalf. (3) The name of
every society shall contain the words "Co-operative" and
"limited" or their equivalent in official language of the State.] [89][(1) Every society shall keep a register of its members and
enter therein the following particulars, namely- (a)
the name, address and occupation of
each member; (b)
the share held by each member in the
case of a society having share capital; (c)
the date on which each person was
admitted as a member; (d)
the date on which any person ceased to
be a member; and (e)
such other particulars as may be
prescribed: Provided
that, where a society has under this Act, permitted a member to transfer his
share or interest on death, to any person, the register shall also show against
the member concerned the name of the person entitled 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 admitted to
the society as a member and of the date on which he ceased to be a member.] (1)
A copy of any entry in a book of a
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
or for any other purposes as Prima facie evidence of such entry and shall be
admissible in evidence in respect of the matters, transactions and accounts
therein recorded in the same manner and to the same extent as the original
entry. (2)
Copies given by a society of any
document obtained and kept by it in the course of its business or any entries
in such document shall, if certified in the prescribed manner, be admissible in
evidence in any suit or legal proceedings or for any other purpose in the same
manner and to the same extent as the original document, or the entries therein,
as the case may be. (3)
No officer of a society and no
officer, in whose office the books of a society are deposited after liquidation
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, or the arbitrator, made for special cause. [90][(1) A society which gives loans to its members or a
society or class of societies which the State Government may notify in the
official Gazette, from time to time, shall furnish to each member a pass book,
which shall contain an account of the transactions with the member, such as,
the date of the transaction, the amount of loan advanced, the rate of interest,
the repayment made by the member, the amount of the principal and interest due
and such other particulars as may be prescribed. The necessary entries shall be
made in the pass book from time to time which shall be counter signed by such
office-bearer of the society as may be authorized in this behalf by the
committee. For this purpose, the member shall be bound to present the pass book
to such office-bearer and if the pass book is required to be kept for some time
for making the necessary entries, the member shall be granted a receipt
therefore, by such office-bearer.] (2) The entries in
the pass book duly made shall, until the contrary is proved, be prima facie
evidence of the account of transactions of the society with the member.] Nothing
in clauses (b) and (c) of sub-section (1) of Section 17 of the Indian
Registration Act, 1908 (XVI of 1908) shall apply to- (a)
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)
any debentures issued by any such
society and not creating, declaring, assigning, limiting or extinguishing any
right, title or interest to or in immovable property except in so far as it entitles
the holder to the security afforded by a registered instruments 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 holders of such debentures; or (c)
any endorsement upon, or transfer of,
any debenture issued by any such society; or (d)
any declaration made by a member in
favor of a society for creating a charge on land under Section 41 and its
assignment by the said society in favor of the financing bank or the federal
society to which it is affiliated and further assignment by such society to
which it is affiliated and further assignment by such financing bank or federal
society in favor of the Chhattisgarh State Co-operative Bank Ltd., or any other
federal society. [91][Explanation.- For the purposes of this section, a
financing bank shall include the Reserve Bank of India, the State Bank of
India, the corresponding new bank specified in First Schedule to the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 (No. 5 of 1970),
and such other Bank as the State Government may, from time to time, by
notification, specify in this behalf.] [92][A society may receive deposits and loans from the State
Government, Banks, Financing Bodies, Corporate Bodies under any law, operating
in the State and individuals under the provision of the bye-laws of the
society. It may also receive funds as a share capital under specific agreement
or approved project by way of granting nominal membership.] (1)
No society shall make a loan to- (a)
any person who is not a member; (b)
any member on the security of its own
shares; (c)
any member on the security of a
non-member: [93][Provided that a society may make loans to another society
and/or nominal member as provided in the bye-laws of the society.] [94][(1-A) A society making a loan to its members who have been
provided with "Bhoo-Adhikar Avam Rin Pustika" prescribed under
Section 114-A of the Chhattisgarh Land Revenue Code, 1959 (No. 20 of 1959)
shall enter all transactions of loans; advances and recoveries thereof in the
aforesaid Bhoo-Adhikar Avam Rin Pustika. (1-B) Notwithstanding anything contained in this Act, rules
made there under and bye-laws of the society, in case of an omission in making
entry of a loan or advance made to members of the society, it shall be presumed
that no such loan or advances have been made unless proved otherwise by the
society.] (2)
Notwithstanding anything contained in
sub-section (1), a society may make a loan to a depositor on the security of
his deposit. (3)
The Registrar may, by general or
special order, prohibit or restrict the lending of money on the security of
movable property or on the mortgage of immovable property by any society or
class of societies. [95][(4) If an officer or employee of a society entrusted with
the work of making an entry of any transaction of loans, advances and
recoveries thereof in the "Bhoo-Adhikar Avam Rin-Pustika" referred to
in sub-section (1-A) fails to make such entry in the said Pustika, the
Registrar may by order impose a penalty on him of any amount not exceeding
rupees five hundred. The order imposing a penalty shall be enforced in
accordance with the provisions of Section 85.] [96][(1) Notwithstanding anything contained in any agreement or
any law for the time being in force, no society shall, in respect of any loan
advanced by it to a member belonging to Scheduled Caste or Scheduled Tribe,
whether before or after commencement of the Chhattisgarh Co-operative Societies
(Second Amendment) Act, 1979, which is repayable within a period not exceeding
ten years from the date of its advance, charge, recover or receive towards
interest thereon during the currency of such loan a sum greater than the
principal and any sum charged recovered or received in excess thereof shall, if
the loan is subsisting be adjusted, towards repayment of the Principal till it
is fully repaid and in any other case, shall be refunded to the debtor member
within sixty days of the date on which the payment towards interest exceeds the
limit aforesaid: Provided
that nothing in this Section shall apply to loans advanced by a Development
Bank and an Urban Co-operative Bank. (2) The loss
incurred by a society in carrying out the provisions of sub-section 1) shall be
made good by the State Government (Scheduled Castes and Scheduled Tribes
Welfare Department) from time to time.] Notwithstanding
anything contained in any agreement or any law for the time being in force, no
society shall, in respect of any loan advanced by it to a member belonging to
Scheduled Caste or Scheduled Tribe or other members owning 5 acre irrigated or
10 acre un-irrigated land, whether before or after commencement of the
Chhattisgarh Co-operative Societies (Second Amendment) Act, 1979, which is
repayable within a period not exceeding ten years from the date of its advance
charge, recover or receive towards interest thereon during the currency of such
loan a sum greater than the Principal and any sum charged, recovered or received
in excess thereof shall, if the loan is subsisting be adjusted, towards
repayment of the Principal till it is fully repaid and in any other case, shall
be refunded to the debtor member within sixty days of the date on which the
payment towards interest exceeds the limit aforesaid: Save
as provided in Sections 36 and 37, the transactions of a society with persons
other than members shall be subject to such restrictions, if any as may be prescribed. A
society shall have a charge upon the share or interest in the capital and on
the deposits of a member, past member or deceased member and upon any dividend,
bonus or profits payable to a member, past member or deceased member, in
respect of any debt or outstanding demand owing to the society from such member
or past member of deceased member and may set-off any sum credited or payable
to a member, past member or deceased member in or towards payment of any such
debt or outstanding demand: Provided
that no financing bank shall have a charge upon any sum invested in such bank
by a society as reserve fund if such bank is not the sole creditor of the
society or upon any sum invested in such bank from any Provident Fund nor shall
such bank be entitled to set-off any such sum credited or payable to the
society in or towards payment of any debt or outstanding demand owing to such
bank from such society. [97][(1) Notwithstanding anything contained in any law for the
time being in force, but subject to any prior claim of the State Government in
respect of land revenue or any money recoverable as arrears of land revenue and
to any claim of a development bank arising out of a loan granted at any time
whatsoever under the Chhattisgarh Sahkari Bhoomi Vikas Bank Adhiniyam, 1966 (28
of 1966), any debt or outstanding demand owing to a society by any member or
past member or deceased member, shall be a first charge upon the crops and
other movable property belonging to such member, past member or forming part of
the estate of the deceased member, as the case may be: Provided
that where any prior claim of the State Government arises out of a loan granted
under the Land Improvement Loans Act, 1883 (XIX of 1883) or the Agriculturists
Loans Act, 1884 (XII of 1884) and such loan is granted after the grant of loan
by a society the loan granted by the society shall, notwithstanding anything
contained in the said enactments, have priority over such claim of the
Government. (2) No person shall
transfer any property which is subject to a charge under sub-section (1) except
with the previous permission in writing of the society which holds the charge: Provided
that it shall always be lawful for a member or past member to create a charge
in favor of a Development Bank under the Chhattisgarh Sahkari Bhoomi Vikas Bank
Adhiniyam, 1966 (28 of 1966) for the dues thereof. (3) Notwithstanding
contained in any law for the time being in force any transfer of property made
in contravention of the provisions of sub-section (2) shall be void as against
any claim of the society in respect of any debt or outstanding demand owing to
it which is a first charge on such property under sub-section (1). [98][(1) Notwithstanding anything contained in any law for the
time being in force, but subject to any prior claim of the State Government in
respect of land revenue or any money recoverable as arrears of land revenue or
to any of claim of a development bank arising out of a loan granted at any time
whatsoever under the Chhattisgarh Sahkari Bhoomi Vikas Bank Adhiniyam, 1966
(No. 28 of 1966), or by a bank under the Chhattisgarh Krishi Udhar Pravartan
Tatha Prakirn Upbandh (Bank) Adhiniyam, 1972 (No. 32 of 1973), any debt or
outstanding demand owing to a society by a member or past member or deceased
member shall be first charge in favor of the society on- (a)
the land owned by such member or past
member or forming part of the estate of the deceased member, as the case may
be; and (b)
his interest in any land as a tenant
if such member owns such interest; against which such debt was granted or such
outstanding demand stands, for and to the extent of the debt, or outstanding
demand owing by him: Provided
that where any prior claim of the State Government arises out of the loan
granted under the Land Improvement Loans Act, 1883 (No. 19 of 1884), and such
loan is granted after the grant of loan by a society, the loan granted by the
society shall, notwithstanding anything contained in the said enactment, have
priority over such claim of the Government. (2) No member shall
alienate the whole or any part of the land or interest therein which is subject
to charge under sub-section (1) until the whole amount borrowed by the member
together with interest is paid in full: Provided
that it shall be lawful for a member or a past member to mortgage in favor of- (i)
a Co-operative Land Development Bank;
or (ii)
a bank under the Chhattisgarh Krishi
Udhar Pravartan Tatha Prakirn Upbandh (Bank) Adhiniyam, 1972 (No. 32 of 1973);
or (iii)
the State Government such land or any
part thereof under the rules made under the Chhattisgarh Irrigation Act, 1931
(No. 3 of 1931), for supply of water from a canal to such land or any part
thereof. (3) Any alienation
made in contravention of the provisions of sub-section (2) shall be void as
against any claim of the society in respect of the loan taken from it under
this section. (4) Intimation in
writing shall be given to the Tahsildar about the details of the debt or
outstanding demand owing to the society from a member, past member or deceased
member in the prescribed manner and the Tahsildar shall on receipt of such
information, have it entered in the Record of Rights.] [99][(1) Notwithstanding anything contained in any law for the
time being in force, a society shall have power to itself to acquire
agricultural land or interest therein, or any immovable property which has been
charged or mortgaged to it by a member in respect of any financial assistance
availed of by him, provided the said land or interest therein or any other
immovable property has been sought to be sold by public auction and no person
has offered to purchase it for a price which is sufficient to pay to the
society the money due to it: Provided
that only such portion of the property shall be sold as may be reasonably
sufficient to satisfy the [100][debt and interest thereon]. (2) A society which
acquires land or interest therein or any other immovable property in exercise
of the power vested in it under sub-section (1) may dispose it of by sale
within a period to be specified by the Registrar in this behalf. (3) If the society
has to lease out any land acquired by it under sub-section (1) pending sale
thereof as indicated in sub-section (2), the period of lease shall not exceed
one year at a time and the lessee shall not acquire any interest in that
property, notwithstanding any provisions to the contrary in any other law for
the time being in force. (4) A sale by a
society of land or interest therein in terms of this section shall be subject
to the provisions of any other law for the time being in force providing for
restrictions on purchase of land by non-agriculturists or in excess of ceiling
limits or involving fragmentation of land below a specified limit. (5) Nothing in this
section shall be construed to empower the society to sell any land or interest
therein of a person belonging to an aboriginal tribe which has been declared to
be an aboriginal tribe by the State Government by notification under
sub-section (6) of Section 165 of the Chhattisgarh Land Revenue Code, 1959 (No.
20 of 1959) to a person not belonging to such tribe. (6) Nothing in the
Chhattisgarh Ceiling on Agricultural Holdings Act, 1960 (No. 20 of 1960) shall
apply to a society acquiring land under sub-section (1) and holding such land
till such time as the society is in a position to sell the land in the manner
provided in this section or otherwise, at a price which is adequate to cover
its dues.] (1) Notwithstanding
anything contained in any law for the time being in force, a member of a
society may execute an agreement in favor of such society provided 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 to the society. [101][(2) On the execution of such agreement, it shall not be
necessary to have the debt or claim adjudged by any authority, and the employer
shall, if so required by the society, by a requisition in writing and so long
as the society does not intimate that the whole of such debt or demand has been
paid, make the deduction in accordance with the agreement and pay the amount so
deducted to the society, as if it were a part of the salary, or wages payable
on the day as required under the Payment of Wages Act, 1936 (No. 4 of 1936).] (3) If after the
receipt of a requisition, made under sub-section (2), the employer at any time
fails to deduct the amount specified in the requisition from the salary or wages
payable to the members concerned or makes default in remitting the amount
deducted to the society, the society shall be entitled to recover any such
amount from the employer as an arrear of land revenue and the amount so due
from the employer shall rank in priority in respect of the liability of the
employer equal to that of the wages in arrears. (4) The provisions
of this section shall also apply to all such agreements of the nature referred
to in sub-section (1) as were in force on the date of the commencement of this
Act. (5) Nothing
contained in this section shall apply to persons employed in railways, mines
and oil-fields. (6) For the
purposes of this section, Drawing and Disbursing Officer shall be deemed to be
an employer in respect of a Government servant. (1)
No part of the funds of a society
other than the net profits shall be paid by way of bonus or dividend or
otherwise distributed among its members: Provided
that a member may be paid remuneration on such scale as may be laid down by the
bye-laws for any services rendered by him to the society. (2)
A society shall, out of its net
profits in any year- (a) transfer an
amount not being less than twenty-five per cent of such profits to the reserve
funds unless such society has been, by general or special order, partially or
wholly exempted in this behalf by the Registrar; and (b) pay to the Chhattisgarh Co-operative Union
Ltd. and to such other institutions or unions as may be specified by the
Registrar in this behalf, such contribution as may be prescribed. [102][(c) transfer at least twenty per cent to an equity
redemption fund by such societies which have Government equity participation.] [103][(3) No society shall pay dividend to its members at the
rate exceeding twenty five per cent except with the prior approval of the
Registrar]. [104][(4) A society may, with the sanction of the Registrar,
after one fourth of the net profit in any year has been carried to the reserve
fund, contribute not exceeding five per cent of the remaining net profits to
any purpose connected with the development of co-operative movement or
charitable purpose as defined in Section 2 of the Charitable Endowments Act,
1890 (No. 6 of 1890).] [105][(5) No society shall make a contribution either in money
or in kind, either directly or indirectly to an organization that has an object
the furtherance of the interest of a political party or of any religious
faith.] [106][(1) A society earning profit shall calculate the net
profit by deducting from the gross profits for the year the following- [107][(a) all overdue interest accrued on loan accounts.] (b) management charges; (c) interest payable on loans and deposits; (d) audit fee; (e) working expenses, including repairs, rent, taxes; (f) depreciation; (g) bonus payable
to employees under the Payment of Bonus Act, 1965 (No. 21 of 1965); (h) provision for payment of income-tax; (i) provision for
payment of subscription to the State/District Co-operative Union as may be
notified; (j) provision for
development fund, bad debt fund, price fluctuation fund, dividend equalization
fund, investment fluctuation fund and such other funds as may be specified by
the Registrar in this behalf; (k) provision for
retirement benefits to employees and in the case of societies engaged in
consumer goods business, provision for purchase rebate to be paid to the
members; and (l) provision for
writing off bad debts and losses not adjusted against any fund created out of
profits. (2) A society may, however, add to the net profits of 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 the profits
brought forward from the previous year, shall be available for appropriation
for the purposes of Section 43.] [108][(1) Where a society has an operational deficit in any
year, the committee shall place before the general body the reasons therefore. (2) The general
body shall examine the reasons and where the deficit has arisen in the normal
course of business of the society, the general body based on its examination
may resolve to make good the operational deficit wholly or partially from
members and or its reserves.] (1)
Subject to the provisions of
sub-sections (2) and (3), a society may invest or deposit its funds- (a)
in Government Savings Bank; or [109][(aa) in a Co-operative Bank; or] (b)
in any of the securities specified in
Section 20 of the Indian Trusts Act, 1882 (II of 1882); or (c)
with the federal society of which it
is a member or in the purchase of the share thereof; or (d)
with the approval of the Registrar,
with any other society with limited liability or in the purchase of the shares
or securities or debentures thereof; or [110][(e) with any bank approved for this purpose by the
Registrar and on such terms and conditions, if any, as may be laid down by him
in this behalf]; or [111][(f) x x x] Provided
that the approval of the Registrar shall not be necessary under clause (d) if
shares are to be purchased to become a member thereof according to the bye-laws
of such society. (2) The reserve
fund of a society shall be invested or utilized only in such manner and on such
terms and conditions as may be laid down by Registrar in this behalf. [112][(3) No investment of any of its funds in immovable
property, other than funds created for specified purposes, shall be made by a
society other than a housing society without the approval of the Registrar]. (4) A society
accepting deposits shall maintain, as a cover against such deposits, fluid
resources to such extent and in such manner as may be specified by the
Registrar from time to time. (1)
Any society desirous of having State
aid otherwise than by way of contribution towards share capital may apply to
the Registrar stating the reasons for seeking such State aid. (2)
On receipt of an application under
sub-section (1) or otherwise, the Registrar may, if he is satisfied that such
aid is necessary in the interest of the society, recommend to the State
Government the grant of such aid. The State Government may thereupon grant such
aid to the society as it may deem fit on such terms and conditions as may be
prescribed. (1)
A society may establish a contributory
Provident Fund for the benefit of its employees to which shall be credited all
contributions made by the employees and the society in accordance with the
bye-laws of the society. (2)
A contributory Provident Fund
established by a society under sub-section (1)- (a)
shall not be used in the business of
the society; (b)
shall not form part of the assets of
the society; (c)
shall not be liable to attachment or
be subject to any other process of any Court or other authority; and (d)
shall be administered in such manner
as may be prescribed. The
State Government may, by a general or special order, direct that all or any of
the societies situated within a specified area shall be affiliated to the
Chhattisgarh Co-operative Union or to a [113][the District Co-operative Union] or to any other union in
such manner and on such conditions as the State Government may specify. [114][(1) The Apex society may; for servicing its constituents
and in accordance with its byelaws, perform the following functions:- (a)
safeguard the observance of the
co-operative principles; (b)
promote and organize co-operative
societies and for these purposes, frame model byelaws and guidelines for making
various regulation and policies for consideration by the societies; (c)
provide co-operative training,
education and information, and propagate co-operative principles; (d)
undertake research and evaluation and
assist in preparation of perspective development plans of member societies; (e)
promote harmonious relations between
member societies; (f)
help member societies in the
settlement of disputes among themselves and between a society and its members; (g)
represent the interest of member
societies and lobby for policies and legislation favorable to societies; (h)
undertake business services on behalf
of its members; (i)
provide co-operation and management of
development services to member societies including participation in board meeting
where member societies are invited; (j)
ensure timely conduct of annual audit
in member societies; (k)
ensure timely conduct of elections in
member societies; (l)
assist member societies in regular
conduct of general meetings; (m)
evolve code of conduct for observance
by member societies; (n)
evolve viability norms for member
societies; (o)
provide legal aid and advice to member
societies; (p)
provide any other service in the
interest of member societies.] [115][(1) The final authority in a society shall vest in the
general body of members: [116][Provided that the byelaws of a society may provide for the
constitution of a smaller body consisting of delegates elected in accordance
with such byelaws to exercise powers of the general body or as may be specified
in the byelaws of the society]. (2) Subject to
sub-section (1), the management of every society shall vest in a committee
constituted in accordance with this Act or rules made there under or byelaws of
the society and it shall exercise such powers and perform such duties as may be
conferred or imposed respectively by the Act or rules made there under or
byelaws of the society. [117][(3) [118][(a) On the Committee of primary society:- (i)
in which half or more than half the
members belong to Scheduled Castes, Scheduled Tribes, and other backward
classes, not less than half the total number of seats, shall be reserved for
the member belonging to such castes, tribes and backward classes in
such-proportion as may be prescribed; (ii)
in which one fourth or more than one
fourth, but less than half the members belong to Scheduled Castes, Scheduled
Tribes and other backward classes, three seats shall be reserved for the
members belonging to such castes, tribes and backward classes of which one seat
each shall be reserved for each class. (iii)
in which the number of members
belonging to Scheduled Castes, Scheduled Tribes, and other backward classes is
less than one fourth of total number of members, one seat shall be reserved for
a member belonging to such castes, tribes and other backward classes, which has
the larger number of members in the society.] [119][(iv) which is operating in a Scheduled Area, the number of
seats to be reserved for Scheduled Tribes shall bear as nearly as may be the
same proportion as members belonging to Scheduled Tribes bear to the total
memberships of the society. Explanation.-For
the purpose of this clause the Co-operative Land Development Bank shall be
deemed to be a primary society.] (b)
On the Committee of such Central or Apex Society or class of Central or Apex
societies as the State Government may having regard to the total membership
of [120][Scheduled Castes, Scheduled Tribes and other backward
classes] in the Primary Societies affiliated to such Apex or Central Society,
by general or special order, direct, such number of seats as may be specified
in the order shall be reserved for the members belonging to [121][Scheduled Castes, Scheduled Tribes and other backward
classes]: Provided
that the number of seat so reserved shall not exceed [122][two] for each category of members: Provided
further that on the Committee of every Central or Apex Society of the Resource
class at least one seat each shall be reserved for the members of [123][Scheduled Castes, Scheduled Tribes and other backward
classes]. (c)
In the event of society falling to elect requisite number of members or to
elect less than such number of members, as is specified in clauses (a) and (b),
the members of the committee shall co-opt the requisite number of members from
amongst members of such society eligible for such representation and in the
event of the Committee failing to do so, Registrar shall nominate the requisite
number of members from amongst members of such society eligible for such
representation. [124][x x x] [125][(5) There shall be a President/Chairman and two Vice-
Presidents/ Vice-Chairman in a resource society. Out of the two offices of
Vice-Presidents / Vice-Chairman- (i)
One shall be held by a woman member,
and (ii)
One shall be held by,- (a)
in case of a resource society
operating in a non-scheduled area, by a member belonging to [126][Scheduled Castes, Scheduled Tribes and other backward
classes], and (b)
in case of a resource society
operating in a scheduled area, by any member: Provided
that in case of a resource society operating in the scheduled area the
President or Chairman shall be elected from amongst the members belonging
to [127][Scheduled Castes, Scheduled Tribes and other backward
classes]. Explanation-For
the purpose of this section- (i)
"Scheduled Caste" means any
caste, race or tribe or part of or group within a caste, race or tribe
specified as such in relation to the State of Chhattisgarh under Article 341 of
the Constitution of India. (ii)
"Scheduled Tribe" means any
Tribe, Tribal community or part of or group within a tribe or tribal community
specified as such in relation to the State of Chhattisgarh under Article 342 of
the Constitution of India.] [128][(5-A) There shall be a President or Chairman and Vice
President or Vice Chairman in consumer society of whom one shall be a woman]. [129][(6) No person who is individual member in a Central
Co-operative bank shall hold any specified office in the Central or Apex
Society.] [130][(7) In a resource society, no person who is a
non-borrowing member shall be qualified for election as member of the
committee, delegate or representative nor shall he be entitled to vote in any
election of the committee, delegate or representative of the society. Explanation.-A
non-borrowing member shall be one who never borrowed from such a Bank or a
society in which he is a member: Provided
that the provisions of this sub-section shall apply to the society from the
date it commences its lending operations: Provided
further that the previsions of this sub-section shall not apply to the society
in so far as its first provisional committee/nominated committee is concerned.] [131][(8) x x x] [132][(1) No person shall at the same time hold specified office
of more than one Apex Society, one Central Society and one Primary Society: Provided
that the provisions of this sub-section shall be applicable in case of
societies of the same classification. (2) If any person
who is holding a specified office in one Apex Society, one Central Society and
one Primary Society is elected or appointed to a specified office in any other
Apex or Central or Primary society, he may, by a letter in writing signed by
him and addressed to the registrar, within a period of one month from the date
of his election or appointment to such specified office resign from the
specified office in all except one Apex Society and or one Central Society and
or one Primary Society as the case may be. (3) If any person
required to resign under sub-section (2), fails to resign within the period
specified therein, then at the expiration of such period he shall be deemed to
have resigned from the specified office in all except one Apex Society &
one Central Society and one Primary Society, as the case may be, in which he
was already holding the specified office prior to such subsequent election or
appointment to specified office in other Apex or Central or Primary Society.] [133][(1) Every committee of society shall at the time of
election of Chairman or Vice-Chairman, also elect representative who shall
represent it in other society and the representative so elected shall not be
withdrawn by the Committee till the next election of the committee. [134][(2) (a) In a society where not less than half of the
members belong to Scheduled Castes and Scheduled Tribes, the representative
shall be only from amongst the members belonging to such castes or tribes; and (b)
In a society where not less than two-third of the members belong to other
Backward Classes, the representative shall be from amongst the members
belonging to such classes. (3) If the byelaws
of a society provide for the constitution of its general body by the elections
of the delegates, the society shall reserve seats in the general body for the
members belonging to Scheduled Castes, Scheduled Tribes and other Backward
Classes in such a manner that the number of seats so reserved for each category
shall as far as possible, be in the same proportion in which members of each
category, shall bear to the total membership of the society]. [135][The Board or the Committee of a society shall in
accordance with the byelaws, have power to- (a)
admit and terminate membership; (b)
elect the Chairman and other office
bearers; (c)
remove from office the Chairman and
office bearers; (d)
fix staff strength with the approval
of the Registrar; (e)
frame policies concerning- (i)
organization and provisions for
services to members; (ii)
qualifications, recruitment, service
conditions of the staff and other matters relating to staff with the approval
of the Registrar; (iii)
mode of custody and investment of
funds; (iv)
manner of keeping accounts; (v)
mobilization, utilization and
investment of funds; (vi)
monitoring and management of
information system including statutory returns to be filed; (f)
place the annual report, annual
financial statements, plan and budget for the approval of the general body; (g)
consider audit and compliance reports
and place the same before the general body; and (h)
undertake such other functions as
specified in the byelaws.] [136][(1) [137][Every Society shall within three months before the close
of financial year call a general meeting of its members for the following
purposes of]- (a) approval of the programme of the activities of the
society prepared by the committee for the ensuing year; [138][(b) Election, if fallen due, of the members of the
committee. Explanation.-
Election of the committee shall be deemed to have fallen due, if the term of
the committee comes to an end within a period of three months from the date of
the annual general meeting]. (c) consideration of the audit report, if received and the
annual report; (d) disposal of the net profit; (e) consideration of any other matter which may be brought
forward in accordance with the byelaws; and [139][(f) presenting the budget for the next co-operative year]: [140][x x x] [141][Provided that the Registrar may, save the meeting in which
elections are to be held on expiration of the term of the committee specified
in sub-section (7-A), extend the period for holding such meeting, by a further
period not exceeding three months:] [142]Provided further that in respect of a society where an
order of liquidation has been issued under Section 69, annual general meeting
shall not be necessary to be called.] [143][(1-A) The election of the members of the Committee,
Chairman, Vice-Chairman, President, Vice-President and representatives, if any
shall be conducted by the Returning Officer in the prescribed manner.] (2) Notice of such
meeting shall be sent to the [144][Deputy/Assistant Registrar] of the district in which the
society is situate, at least fourteen clear days before the date of the
meeting. (3) The [145][Deputy/Assistant Registrar] may himself attend such
meeting or depute any officer subordinate to him to attend it. (4) The [146][Deputy/Assistant Registrar] or the officer deputed by him,
shall have the right to address the meeting in respect of any matter pertaining
to the subjects specified in clauses (a), (c), (d) and (e) of sub-section (1). [147][(5) If default is made in calling general meeting within
the period prescribed therefore under sub-section (1) or in complying with the
requirement of sub-section (1), the Registrar may, by order, declare any
officer whose duty it was to call such meeting or comply with the provisions of
sub-section (1) and who without reasonable excuse failed to comply with any of
the provisions of aforesaid sub-section, to be disqualified for being elected
or being in office for such period not exceeding three years, as he may specify
in such order and if the officer is an employee of the society impose a penalty
on him of any amount not exceeding [148][five thousand rupees]: [149][Provided that no order shall be made under this
sub-section unless the person concerned is given a reasonable opportunity of
being heard by an officer not below the rank of Joint Registrar of Co-operative
Societies.] [150][(6) If the byelaws of a society provides for election of
all or some members of the committee on territorial basis, such members of the
committee shall be elected from the area in a meeting of the members of that
area in accordance with the provisions of the byelaws on a date prior to that
of general meeting. The results thereof shall be affixed on the notice board of
the society and also at the place of the general meeting prior to the
commencement of the proceedings in annual general meeting. (7) At every annual
general meeting of a society, the committee shall lay before the society a
statement showing details of loans or advances, if any, outstanding during the
proceeding years, in the name of the members of the committee, their family
members and near relations.] [151][Explanation.-For the purpose of sub-section (7) family
members shall include wife, husband and dependent children.] [152][(7-A) (i) The term of the committee shall be five
years from the date on which first meeting of the committee is held: Provided
that where a committee superseded, suspended or removed under the Act is
reinstated as a result of any order of any Court or authority, the period
during which the committee remained under supersession, suspension out of
office as the case may be, shall be excluded in computing the period of the
term aforesaid. (ii)
The term of the representative elected by the committee of the society shall be
co-terminus with the term of the committee of the society for which
representative is elected: Provided
that the representative of a committee shall continue to hold his office till
the expiry of the term of the committee of which he is a member]. [153][7-AA) The State Government may, by notification, for
reasons to be stated therein, extend the term of the committee of a society or
a class of societies from time to time, for a total period not exceeding twelve
months.] [154][(7-AAA) Notwithstanding the expiry of the maximum period
of eighteen months specified in sub-section (7-AA), in respect of the
committees between the period commencing on the 7th May, 1988 (hereinafter
referred to as the said date) and ending on the date of publication of the
Chhattisgarh Co-operative Societies (Amendment) Ordinance, 1988, in Gazette the
period in respect of such Committees shall be deemed to have been extended for
a period of six months with effect from the said date as if the notification
for the extension of the period were issued under sub-section (7-AA) on the
said date.] [155][x x x] [156][(8) (i) It shall be obligatory on the outgoing committee
of the society to hold elections prior to the expiration of the term under
sub-section (7-A) or extended term under sub-section (7-AA). The outgoing
committee shall apply to the Registrar for holding election within a reasonable
time which shall not be in any case less than ninety days before expiration of
the term of the committee: Provided
that if the outgoing committee has resolved and requested the Registrar to hold
election at least ninety days in advance and the Registrar has failed to conduct
elections on its request, the Registrar shall not assume charge of the
committee and the members of the committee shall continue to hold the offices: Provided
further, that if the Registrar fails to conduct elections of the committee
within ninety days from the date of expiry of the term of the committee, the
committee of the society shall appoint returning officer who shall conduct the
election of the committee within 180 days from the date of the expiry of the
term. (ii)
If the committee fails to hold election and has not handed over the charge on
expiration of the term, under sub-section (7-A) or extended term under
sub-section (7-AA) to the Registrar or any officer authorized by him on his
behalf, all the members of the committee shall be deemed to have vacated their
seats and the Registrar shall assume charge and hold election as early as
possible.] [157][(9) (a) Every society shall record in the minutes
book, the minutes of all the proceedings of every general meeting and all other
meetings of its committee. (b)
Such minutes shall be circulated to all the persons invited for the meeting,
within thirty days from the conclusion of the meeting. (c)
The minutes so recorded shall be signed by the person who presided over the
said meetings.] (10) [158][Omitted]. [159][Omitted] [160][Notwithstanding anything contained in this Act or the
rules made there under and byelaws of a society, any resolution passed by a
committee shall not be modified or annulled by the successor committee without
the previous sanction in writing of the Registrar.] [161][(1) If the State Government, on receipt of a report from
the Registrar or otherwise is satisfied that in the public interest or for the
purpose of securing proper implementation of cooperative production and other
development programmes approved or undertaken by Government, or to secure the
proper management of the business of the society generally, or for preventing
the affairs of the society being conducted in a manner detrimental to the
interests of the members or of the depositors or the creditors thereof, it is
necessary to issue directions to any class of societies generally or to any
society or societies in particular, the State Government may issue directions
to them from time to time, and all societies or the societies concerned, as the
case may be, shall be bound to comply with such directions. (2) The State
Government may modify or cancel any directions issued under sub-section (1),
and in modifying or cancelling such directions may impose such conditions as it
may deem fit. (3) Where the Registrar
is satisfied that any person or committee responsible for complying with any
directions or modified directions issued to a society under sub-section (1) or
(2) has failed without sufficient reason or justification to comply with the
directions, the Registrar may- (i)
in case of a committee, proceed
against such committee in accordance with the provisions of Section 53; and (ii)
in case of a person, if the person is
a member of committee of the society or an employee of the society, proceed
against such person in accordance with the provisions of Section 53-B or the
rules framed under sub-section (1) of Section 55 as the case may be: [162][Provided that directions involving financial losses to the
societies will be given only with prior consent of the committee, of such
society and, where necessary, of National Financial Institutions, as well as
after making the provision and advance allotment for compensating such losses
fully.] (1)
If the Registrar is of the opinion
that, having regard to the financial condition of the society and financial
interest of Government therein, it is necessary to regulate the manner of
carrying on its trade or business, he may, subject to any rules made in this
behalf, direct such society to make regulations in that behalf and forward them
to him for approval. (2)
On receipt of the regulations made by
the society, the Registrar may approve them with or without modifications. On
approval of such regulations, the society shall carry on its business in
accordance with regulations. (3)
If any society fails to forward such
regulations to the Registrar when directed by him under sub-section (1) within
a period of three months from the date on which the direction is given, the
Registrar shall himself make or cause to be made such regulations and require
the society to carry on its business in accordance with such regulations and
thereupon the society shall be bound to comply with such requirement.] [163][(1) [164][(a) Notwithstanding anything contained in this Act or
rules or byelaws made there under for every Apex Society where the State
Government has contributed to its share capital or has given loans or financial
assistance or has guaranteed the repayment of loans granted in any other form,
there shall be a Managing Director, not below the rank of Class I Officer, who
shall be selected by a committee constituted at the State level consisting of
the Agriculture Production Commissioner, Chairman of the Apex Society,
Registrar Co-operative Societies and one Director nominated by the Board of
Apex Society: Provided
that if the committee fails to select the Managing Director unanimously, the
matter shall be referred to the State Government whose decision thereon shall
be final]. (b)
The Managing Director shall be ex-officio member of the committee. (c)
The Managing Director shall be the Chief Executive Officer of the society and
shall perform such duties and exercise such powers as may be prescribed. (2) (a) Notwithstanding anything contained
in this Act, or the Rules or byelaws made there under for every Central society
where the State Government has contributed to its share capital or has given
loans or financial assistance or has guaranteed the repayment of loans,
debentures, or advances or has given grants in any other form, there shall be a
Managing Director or a General Manager not below the rank of Class II Officer
who shall be the Chief Executive Officer of the society and ex-officio member
of the committee; (b)
The Chief Executive Officer shall be appointed: (i)
from among the Officers of the cadre
maintained under Section 54 if such a cadre has been created; (ii)
in other cases with the prior approval
of the Registrar. (c)
The Chief Executive Officer shall perform such duties and exercise such powers
as may be prescribed.] [165][(1) The Committee may at any time, call a special general
meeting of the society and shall call such meeting within one month after the
receipt of a requisition in writing from the Registrar or from one-tenth of
total number of members]. (2) If a special
general meeting of a society is not called in accordance with the requisition
referred to in sub-section (1), the Registrar or any person authorized by him
in this behalf, shall have the power to call such meeting and that meeting
shall be deemed to be a meeting called by the Committee. [166][(2-a) Where any officer whose duty it was to call such a
meeting in accordance with the provisions of this Act, or the rules or byelaws
made there under fails without reasonable excuse to call such meeting, the
Registrar may, by order, declare such officer to be disqualified for being a
member of the committee for such period not exceeding [167][seven years] as he may specify in such order and if the
officer is an employee of the society impose on him a penalty not
exceeding [168][five thousand] rupees: Provided
that no order shall be made under this sub-section unless the person concerned
is given a reasonable opportunity of being heard.] (3) The matters
before a special general meeting may include all or any of the matters
specified in Section 49. [169][(1) No person shall be qualified to be a candidate for
election as member of the committee, representative or delegate, if he is in
default for a period exceeding 12 months to the society or any other society
for any loan or advance taken by him as a member of such society. [170][(1-A) No person shall be qualified to be a candidate for
election as a member of the committee, representative or delegate if he has
more than two living children one of whom is born on or after 26th January,
2001. (1-B) A person elected to an office mentioned in
sub-section (1-A) shall become disqualified to hold such office if on or after
26th January, 2001 a child is born which increases the number of his children
to more than two.] (2) No person shall
be entitled to vote at any election of the committee, representatives or
delegates of the society, if he is in default for a period exceeding 12 months
to the society or any other society for any loan or advance taken by him as a
member of such society.] [171][x x x] No
act of a society or of any committee or of any officer shall be deemed to be
invalid by reason only of the existence of any defect in procedure or in the
constitution of the society or of the committee or in the appointment or
election of an officer or on the ground that such officer was disqualified for
his appointment. (1)
Where the State Government- (a)
has subscribed to the share capital of
a society; or (b)
has assisted indirectly in the
formation or augmentation of the share capital of a society as provided in
Section 45; or (c)
has guaranteed the repayment of
principal and payment of interest on debentures issued by a society; or (d)
has guaranteed the repayment of
principal and payment of interest on loans and advances to a society; the
State Government or any authority specified by the State Government in this
behalf shall have the right to nominate such number of persons not
exceeding [172][four] as it may deem fit on any or all of the committees
of such society. (2)
A person nominated on the committee of
a society under sub-section (1) shall hold office for such period and on such
conditions, as may be prescribed. (3)
Notwithstanding anything contained in
this Act, every person nominated on the committee of a society under
sub-section (1) shall have one vote in such committee: [173][Provided that nominated person shall not be entitled to
vote in any election of the office bearers of the committee of the society.] [174][(4) When the Government has subscribed to the share
capital of, or has guaranteed the repayment or principal and payment of
interest on loans and advances to a society to the extent of rupees three lakhs
or more and the society has incurred loss to the extent of twenty-five per cent
or more of its owned capital, the State Government may, notwithstanding
anything contained in this Act, the rules made there under or byelaws of the
society, nominate one of the members nominated by it under sub-section (1) as
Chairman of the Committee of the Society and further appoint one of the
nominated members as Managing Director/General Manager/Manager of the society.] [175][x x x] [176][If in the opinion of the State Government, it is necessary
to provide adequate representation to women members on a committee of such
society or class of societies, as it may, by general or special order, specify
it may direct such society to provide reservation of seat for women on its
committee: Provided
that the number of seats so reserved shall not exceed [177][four] in such committee: [178][Provided further that in the event of a society failing to
elect the requisite number of women members in its committee or to elect less
than such number of women members, the remaining members of the committee shall
co-opt the requisite number of women members, from amongst women members of
such society entitled to such representation and in the event of Committee
failing to co-opt requisite renumber of women members the Registrar shall
nominate the requisite number of members from amongst women members of such
society entitled to such representation.] (1)
If, in the opinion of the Registrar,
the committee of any society- (a) [179][x x x] is negligent in the performance of the duties
imposed on it by or under this Act or bye-laws of the society or by any lawful
order passed by the Registrar or is unwilling to perform such duties; or (b) commits acts
which are prejudicial to the interests of the society or its members; or [180][(c) violates the provisions of this Act or the rules made
there under or byelaws of the society or any order passed by the
Registrar;] the
Registrar may, by order in writing, remove the committee and appoint a person
or persons to manage the affairs of the society for a specified period not
exceeding two years in the first instance: [181][Provided that in case of a Co-operative Bank, the order of
supersession shall not be passed without previous consultation with the Reserve
Bank]: [182][Provided further that if no communication containing the
views of the Reserve Bank of India, on action proposed is received within
forty-five days of the receipt by that Bank of the request soliciting
consultation, it shall be presumed that the Reserve Bank of India agrees with
the proposed action and the Registrar shall be free to pass such order as may
be deemed fit:] [183][Provided also that in case of a [184][x x x] Co-operative Bank, if so required by the Reserve
Bank in the public interest or for preventing the affairs of the [185][x x x] Co-operative Bank being conducted in a manner,
detrimental to the interest of the depositors or for securing the proper
management of a [186][x x x] Co-operative Bank, the Registrar shall pass an
order for the supersession of its committee or managing body by whatever name
called and for appointment of an Administrator therefore for such period or
periods not exceeding 5 years in the aggregate, as may from time to time be
specified by the Reserve Bank and on such appointment, the provisions of
sub-sections (4), (5), (6) and (8) shall apply as if orders were passed under
sub-section (1):] [187][Provided also that if a non-official is appointed in the
committee of a primary society, he shall be from amongst the members of that
society, entitled for such representation and in case of Central or Apex
society, if a person is appointed in the committee of such society, he shall be
a member of one of its affiliated societies entitled for such representation.] [188][(2) No order under sub-section (1) shall be passed unless
a list of allegations, documents and witnesses in support of charges leveled
against it has been provided and the committee has been given a reasonable
opportunity of showing cause against the proposed order and representation, if
any, made by it, is considered]. (3) The period
specified in the order under sub-section (1) may, at the discretion of the
Registrar, be extended, from time to time: Provided
that no such order shall remain in force for more than three years in the
aggregate. [189][(4) The person or persons so appointed, shall subject to
the control of the Registrar and to such instructions as he may, from time to
time, give, have power to exercise all or any of the powers and to discharge
all or any of the functions of the committee or of any officer of the society,
and to take all such actions, as may be required in the interest of the
society.] (5) The Registrar
may fix the remuneration payable to the person or persons so appointed. The
amount of such remuneration and other costs, if any, incurred in the management
of the society shall be payable from its funds. (6) The person or
persons so appointed shall, [190][before] the expiry of the period of his or their
appointment, arrange the constitution of a new committee in accordance with the
bye-laws of the society. (7) Before taking
action under sub-section (1) in respect of a financing Bank or in respect of a
society indebted to a financing bank, the Registrar shall consult, in the
former case, the Chhattisgarh State Co-operative Bank Limited and, in the
latter case, the financing bank concerned, regarding such action. [191][If the Chhattisgarh State Co-operative Bank Limited or the
financing bank, as the case may be, fails to communicate its views within forty
five days of the receipt by such bank of the request soliciting consultation,
it shall be presumed that the Chhattisgarh State Co-operative Bank Limited, or
the financing bank concerned, as the case may be, agreed with the proposed
action.] (8) Notwithstanding
anything contained in Sections 48, 49 and 50, if there is a difference of
opinion between the general body of society and the person or persons appointed
under sub-section (1) in respect of any matter, it shall be referred to the
Registrar for decision and his decision thereon shall be final: [192][Provided that if the Registrar fails to take any decision
within three months of the general body meeting, the decision of the general
body of the society shall prevail.] (9) Nothing in this
section shall be deemed to affect the power of the Registrar to direct the
winding up of the society. (10) During the period between the issuance of notice and
the passing of an order removing the committee, the committee may be required
by the Registrar to function under the supervision, and with the approval of
such authority as the Registrar may specify in this behalf and no order made or
resolution passed or any other act performed by the committee, shall be
effectual unless it is approved by such specified authority: [193][Provided where the Registrar, while proceeding to take
action under sub-section (2), is of the opinion that the supersession of the
committee during the period of proceeding is necessary in the interest of the
society he may suspend the committee, which shall thereupon cease to function
and make such arrangement as he thinks fit, of the affairs of the society till
the proceedings are completed and order issued under sub-section (1):] [194][Provided further that the period of suspension shall not
exceed six months and on the expiry of said period the suspension of the
Committee shall stand revoked:] [195][Provided also that, if the committee so suspended, is not
superseded after undergoing the proceeding mentioned above, it shall be
re-instated and the period during which it has remained suspended shall not
count towards its term:] [196][Provided also that no order of suspension shall be made
unless the committee of the society has been given a reasonable opportunity of
being heard.] [197][(11) Notwithstanding anything contained in this Act, the
Registrar shall, in case of Central Co-operative Banks, Urban Co-operative
Banks and Primary Co-operative Land Development Banks, if the recovery
continuously in three co-operative years is less than 65 per cent of the demand
or if the over dues exceed 35 per cent, pass an order for removal of the
committee or the Managing Committee by whatever name it is called of the Bank
and for appointment of a administrator therefore for such period or periods not
exceeding five years in the aggregate, as may be specified by the Registrar and
on such appointment, the provisions of sub-sections (4), (5) and (6) shall
apply thereto as if an order was passed under sub-section (1): Provided
that no such order shall be made unless the committee has been given a
reasonable opportunity of showing cause against the proposed order and
representation, if any, made by it is considered.] [198][(12) When a committee of a society has been superseded
under sub-section (1) any member of the committee, notwithstanding anything
contained in this Act, rules made there under or byelaws of the society, shall
not be eligible for contesting the election as a member of the committee nor he
shall be eligible for co-option or nomination in that society for a period of
seven years]: [199][Provided that nothing in this sub-section shall apply to a
member of the committee of a society who was not a party of such a decision of
the committee which led to the supersession of it.] [200][(13) Notwithstanding anything contained in this Act, or
rules made there under or byelaws of society, if the committee of society
ceases to function due to order of any Court or otherwise, the Registrar [201][may appoint a person or committee of persons temporarily]
till the Court order is vacated or the new elections are held and the committee
takes charge.] [202][x x x] [203][(1) If- (i)
the committee of a society is
reconstituted at a general meeting of the society under Section 49; or (ii)
the term of the committee of a society
expires in pursuance of an order issued under clause (iii) of sub-section (7-A)
of Section 49; or (iii)
the committee of a society is removed
or suspended or ceases to function under Section 53; or (iv)
the society is ordered to be wound up
under Section 69, the person or persons entitled to receive the charge of the
committee or society, as the case may be, shall assume charge- (a)
from the date of election of a
committee at the general meeting in case of (i) above; (b)
from the date of order issued by the
State Government under clause (iii) of sub-section (7-A) of Section 49 in case
of (ii) above; (c)
from the date of order of the
Registrar appointing him/them to manage the affairs of the society in case of
(iii) above, and (d)
from the date of order of the
Registrar appointing a liquidator in case of (iv) above; and
outgoing members of the committee shall be bound to handover charge, the
records and property of the society to those assuming charge on the date as herein
provided.] (2) The person
entitled to receive charge of the committee or society, as the case may be,
under sub-section (1) shall be deemed to have assumed charge of his office as
from the date mentioned in sub-section (1), whether such charge has been
actually handed over or not.] [204][(1) If in the opinion of the Registrar, any officer of the
co-operative society has been grossly negligent in the discharge of his duties
imposed on him by or under this. Act the rules made there under or byelaws or
has, by a fraudulent act, caused financial loss to the society the Registrar
may without prejudice to any other action that may or can be taken against him,
call upon the society to remove within a specified period such officer from the
office held by him and where necessary also to disqualify him from holding any
office under that society for a period not exceeding three years, whereupon the
society shall, after affording opportunity to the officer concerned of being
heard, pass such orders as it deems fit. (2) On the failure
of the society to take action under sub-section (1), the Registrar may after
affording opportunity to the officer of being heard and for reasons to be
recorded, and communicated to the officer and the society concerned, remove or
remove and disqualify for a period not exceeding three years, the officer from
holding any office under that society for the period specified in the order. (3) An officer
removed under the sub-section (1) or sub-section (2) shall with effect from the
date of communication of the order, cease to hold that office and if
disqualified shall not be eligible to hold any office under that society for
the period specified in the order.] (1) No society
shall appoint a Manager, Secretary, Accountant or other paid officer unless he
holds such qualifications as may be prescribed. [205][(2) The Apex and Central Societies shall maintain such
cadres of officers and other servants as the State Government may, by order,
direct and the conditions of service of members of such cadre shall be such as
the Registrar may, by order, determine. (3) The State
Government may, by notification, specify the class of societies which shall
employ officers from such cadres maintained by the Apex or Central Societies
under sub-section (2) as may be specified therein] [206][and it shall be obligatory on the part of such class of
societies to accept and appoint such cadre officers on the cadre posts as and
when deputed by the Apex or Central Societies.] [207][(1) The Registrar may, from time to time, frame rules governing
the terms and conditions of employment in a society or class of societies and
the society or class of societies to which such terms and conditions of
employment are applicable shall comply with the order that may be issued by the
Registrar in this behalf. [208][(2) Where a dispute, including a dispute regarding terms
of employment, working conditions and disciplinary action taken by a society,
arises between a society and its employees, the Registrar or any officer
appointed by him not below the rank of Assistant Registrar shall decide the
dispute and his decision shall be binding on the society and its employees: Provided
that the Registrar or the officer referred to above shall not entertain the
dispute unless presented to him within thirty days from the date of order
sought to be impugned: Provided
further that in computing the period of limitation under the foregoing proviso,
the time requisite for obtaining copy of the order shall be excluded.] [209][(1) Every society shall maintain such records, registers
and books of accounts and shall furnish to the Registrar such information and
such returns as may be required by him from time to time. (2) Every society
shall fix specific responsibility on the officer or employee of, the society to
maintain such records, registers, books of accounts and to furnish to the
Registrar such information and such returns as may be required by order by him,
from time to time within the period specified in such order. (3) If any officer
or the employee of the society, on whom specific responsibility has been fixed
under sub-section (2), fails to maintain the records, registers, books of
accounts and to furnish to the Registrar, such information and such returns as
may be required by the Registrar within the specified time, the Registrar may,
by order, declare such officer to be disqualified for being a member of the
committee for such period not exceeding three years as he may specify in such
order and if the officer is an employee of the society, impose on him a penalty
not exceeding [210][five thousand] rupees: Provided
that no order shall be made under this sub-section unless the person concerned
is given a reasonable opportunity of being heard.] [211][(1)] Where the Registrar is satisfied that- (a)
the records, registers or the books of
accounts of society are likely to be tampered with or destroyed and the funds
and property of a society are likely to be misappropriated or misapplied, or (b)
if the committee of a society is
reconstituted at a general meeting of the society or the committee of a society
is removed by the Registrar under Section 53 or if the society is ordered to be
wound up under Section 69 and the outgoing members of the committee refuse to
handover charge of the records and property of the society to those having to,
or entitled to, receive such charge; the
Registrar may issue an order directing a person duly authorized by him in
writing to seize and take possession of such books and records, funds and
property of the society and the officer or officers of the society responsible
for the custody of such books, records, funds and property shall give delivery
thereof to the person so authorized. [212][(2) In order to secure compliance of the orders under
clause (b) of sub-section (1) the Registrar may take or cause to be taken such
steps and use or cause to be used such minimum force including Police Force as
may be considered necessary]. [213][(1) Where the Registrar is satisfied that the books and
records of a society are likely to be suppressed, tampered with or destroyed,
or the funds and property of a society are likely to be misappropriated or misapplied,
the Registrar or the person authorized by him may apply to the Executive
Magistrate within whose jurisdiction the society is functioning, for seizing
and taking possession of the records and property of the society. (2) On receipt of
the application under sub-section (1), the Magistrate may authorize any police
officer not below the rank of a sub-inspector to enter and search any place
where the records and property are kept are likely to be kept and to seize them
and handover possession thereof to the Registrar or the person authorized by
him, as the case may be.] (1)
The Registrar shall audit or cause to
be audited by a person authorized by him in writing by general or special order
in this behalf, the accounts of every society once at least every year and
shall recover from such society such fees as may be prescribed: [214][Provided that- (i)
the State Government may, by
notification, for reasons to be specified, therein, exempt any class of
societies; (ii)
the Registrar may for reasons to be
recorded in writing, exempt any society from the payment of fees or part
thereof, under this sub-section:] [215][Provided further that a Central Society or an Apex Society
or an Urban Co-operative Bank may get the accounts audited by a Chartered
Accountant approved by the Registrar]: [216][Provided also that if there is a complaint of financial
irregularities or embezzlement after the completion or issuance of the audit
report, the Registrar may order special audit for the purpose.] [217][(2) The audit under sub-section (1) shall include an
examination of the accounts and the overdue debts, if any, compliance of the
instructions and orders of the Registrar issued under this Act, Rules made
there under and Byelaws of the society, the verification of cash balance and
securities and valuation of the assets and liabilities of the societies and
such other items as may be specified by the Registrar]. (3) The Registrar
or the authorized person shall at all times have access to all the books,
accounts, documents, papers, securities, cash and other properties belonging
to, or in the custody of, the society and may summon any person in possession
of, or 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 headquarters of the society or any branch thereof. (4) Every person
who is, or has at any time been, an officer or employee of the society, and
every member and past member of a society shall furnish such information in
regard to the transactions and working of the society as the Registrar or the
person authorized by him may, require. [218][For the purpose of conducting audit and supervision of any
society or class of societies, the State Government may constitute an Audit
Board which may exercise such powers of the Registrar as the State Government
may, by notification specify in this behalf and the Audit Board shall exercise
these powers to the exclusion of the Registrar.] [219][(1) Notwithstanding anything contained in this Act or the
rules or the byelaws of a society where the State Government has contributed to
its share capital or has given loans or financial assistance or has guaranteed
the repayment of loans, debentures or advances or has given grants in any other
form and if in the course of an audit, inquiry, inspection or the winding up of
a society or otherwise, it is found that any person who is or was entrusted
with organization or management of such society or any deceased, past or
present Chairman, Secretary, Member of the Committee, Officer or employee of
the society has made any payment contrary to the provisions of this Act or the
rules made there under or byelaws of a society or has caused any deficiency or
loss by gross negligence or misconduct or has misappropriated or fraudulently
retained any money or other property belonging to such society, the Registrar
may on his own motion or on the application of the committee, liquidator or any
creditor, enquire himself or direct some person authorized by him, by an order
in writing in this behalf, to enquire into the conduct of such person within
two years of the date of the report of audit, enquiry or inspection, or winding
up, as the case may be: Provided
that no such enquiry shall be instituted against a person unless the person
concerned is given a reasonable opportunity of being heard. (2) If, on enquiry
made under sub-section (1), the Registrar is satisfied that there are good
grounds for an order under this sub-section, he may make an order requiring
such person, or in the case of a deceased person, his legal representative who
inherits his estate, to repay or restore the money or property or any part thereof,
with interest at such rate, or to pay contribution and costs or compensation to
such extent as the Registrar may consider just and equitable: Provided
that no order under this sub-section shall be made unless the person concerned
is given a reasonable opportunity of being heard in the matter: Provided
further that the liability of a legal representative of the deceased shall be
to the extent of the property of the deceased which has come to the hands of
such legal representative. (3) Any person aggrieved
by the order made under sub-section (2), may within thirty days from the date
of communication of the order to him, appeal to the Tribunal: Provided
that in computing the period of limitation, the time requisite for obtaining a
copy of the order appealed against shall be excluded. (4) Any order made
under sub-section (2) or sub-section (3) shall be enforced in accordance with
the provisions of Section 85. (5) If the
Registrar is satisfied on affidavit, enquiry or otherwise that any person with intent
to delay or obstruct the enforcement of any order that may be made against him
under this Section- (a)
is about to dispose of the whole or
any part of his property; or (b)
is about to remove the whole or any
part of his property from the jurisdiction of the Registrar; he
may, unless adequate security is furnished, direct the conditional attachment
of the said property or such part thereof as he thinks necessary.] [220][(1) The Registrar may on the application of- (i)
a society to which the society is
affiliated; or (ii)
a creditor to whom the society is
indebted; or (iii)
not less than one third of the members
of the committee; or (iv)
not less than one-tenth of the total
number of members of the society hold an inquiry or cause an inquiry to be made
into the specific matters raised in the application relating to the
constitution, working and financial condition of the society. (2) The Registrar
shall order an inquiry only after the receipt of a fee as may be prescribed,
from the applicant or applicants, deemed sufficient to meet the costs of the
inquiry to be conducted. (3) The inquiry
shall be completed with in a period of four months from the date of ordering
the inquiry. (4) The Registrar
shall, within a period of one month from the date of completion of inquiry,
communicate the report of the inquiry- (i)
to the society concerned; (ii)
to the applicants or the person
designated by the applicants to receive such a report; (iii)
any member of a society; (iv)
federation of which the society is a
member; (v)
creditor; on
payment of the prescribed fee]. [221][(1) All officers, members and past members of the society
in respect of whom an inquiry is held, and any other person who, in the opinion
of the officer holding the inquiry is in possession of the information, books
and papers relating to the society, shall furnish such information as is in
their possession and produce all books and papers relating to the society which
are in their custody or power, and otherwise give to the officer holding an
inquiry all assistance in connection with the enquiry which they can reasonably
give. (2) If any such
person refuses to produce before the Registrar or any person authorized by him
under sub-section (1) of Section 59 any book or papers which it is his duty
under sub-section (1) to produce or to answer any question which is put to him
by the Registrar or the person authorized by the Registrar in pursuance of
sub-section (1), the Registrar or the person authorized by the Registrar may
certify the refusal and the Registrar may, after hearing, any statement which
may be offered in defense punish the defaulter with a penalty not
exceeding [222][one thousand] rupees. Any sum imposed as penalty under
this section shall, on the application by the Registrar or the person
authorized by him, to a Magistrate, having jurisdiction, be recoverable by the
Magistrate as if it were a fine imposed by himself.] [223][(1) The Registrar may on his own motion, or on the
application of creditor of a society inspect or direct any person authorized by
him by general or special order in writing in this behalf, to inspect the books
of the society: Provided
that no such inspection shall be made on the application of a creditor unless
the applicant- (a)
satisfies the Registrar that the debt
is a sum then due and that he has demanded payment thereof and has not received
satisfaction within a reasonable time; and (b)
deposits with the Registrar such sum
as security for the costs of the proposed inspection as the Registrar may
require.] (2) The Registrar shall communicate the results of any such
inspection- (a)
where the inspection is made of his
own motion, to the society; and (b)
where the inspection is made on the
application of a creditor, to the creditor and the society. (1)
If the result of the audit held under
Section 58 or an inquiry held under Section 59 or an inspection held under
Section 60 discloses any defects in the constitution, working or financial
condition or the books of a society, the Registrar may bring such defects to
the notice of the society and if the society is affiliated to another society
also to the notice of that other society. (2)
The Registrar may make an order
directing the society or its officers or the society to which it is affiliated
to take such action as may be specified in the order within the time mentioned
therein to remedy the defects disclosed in the audit, inquiry or inspection. Where
an inquiry is held under Section 59 or an inspection is made under Section 60
on the application of a creditor, the Registrar may apportion the costs, or
such part of the costs as he may deem fit, between the society to which the
society concerned is affiliated, the society concerned, the members or
creditors demanding an inquiry or inspection, and the officers or former
officers of the society: Provided
that- (a)
no order of apportionment of the costs
shall be made under this section unless the society or the person sought to be
made liable to pay the costs there under has had a reasonable opportunity of
being heard; (b)
the Registrar shall state in writing
the grounds on which the costs are apportioned. [224][x x x] [225][No expenditure from the funds of a society shall be
incurred for the purpose of defraying the costs of any proceedings filed or
instituted in any Court by any officer or committee of a society against any
order made or purporting to have been made by the Registrar under Section
19-AA, Chapter V or Chapter VI: Provided
that where the case is finally decided in favor of the officer or the
committee, as the case may be, such cost as may be approved by the Registrar
shall be reimbursed by the society.] (1)
Notwithstanding anything contained in
any other law for the time being in force, [226][any dispute touching the constitution, management or
business, terms and conditions of employment of a society or the liquidation of
a society shall be referred to the Registrar] by any of the parties to the
dispute if the parties thereto are among the following: (a)
a society, its committee, any past
committee, any past or present officer, any past or present agent, any past or
present servant or a nominee, heirs or legal representatives of any deceased
agent or deceased servant of the society, or the liquidator of the society; (b)
a member, past member or a person
claiming through a member, past member or deceased member of a society or of a
society which is a member of the society; (c)
a person other than a member of the
society who has been granted a loan by the society or with whom the society has
or had business transactions and any person claiming through such a person; (d)
a surety of a member, past member or
deceased member or a person other than a member who has been granted a loan by
the society, whether such a surety is or is not a member of the society; (e)
any other society or the liquidator of
such a society; and (f)
a creditor of a society. (2)
For the purposes of sub-section (1), a
dispute shall include- (i)
a claim by a society for any debt or
demand due to it from a member, past member or the nominee, heir or legal
representative of a deceased member, whether such debt or demand be admitted or
not; (ii)
a claim by a surety against the
principal debtor where the society has recovered from the surety any amount in
respect of any debt or demand due to it from the principal debtor as a result
of the default of the principal debtor, whether such debt or demand be admitted
or not; (iii)
a claim by a society for any loss
caused to it by a member, past member or deceased member, any officer, past
officer or deceased officer, any agent, past agent or deceased agent, or any
servant, past servant or deceased servant, or its committee, past or present,
whether such loss be admitted or not; (iv)
a question regarding rights, etc.,
including tenancy rights between a housing society and its tenants or members;
and [227][(v) any dispute arising in connection with the election of
any officer of the society or representative of the society or of composite
society: Provided
that the Registrar shall not entertain any dispute under this clause during the
period commencing from the announcement of the election programme till the
declaration of the results]. (3)
If any question arising whether a
dispute referred to the Registrar is a dispute, the decision thereon of the
Registrar shall be final and shall not be called in question in any Court. (1)
Notwithstanding anything contained in
the Indian Limitation Act, 1908 (IX of 1908), and subject to the specific
provisions made in this Act, the period of limitation for referring the
disputes mentioned below to the Registrar under Section 64 shall,- (a)
when the dispute relates to the
recovery of any sum including interest thereon due to a society by a member
thereof, be six years from the date on which such member dies or ceases to be a
member of the society; (b)
when the dispute is between a society
or its committee and any past committee, any past or present officer, or past
or present agent, or past or present servant or the nominee, heir or the legal
representative of a deceased officer, deceased agent or deceased servant of the
society, or a member or past member or the nominee, heir or the legal
representative of a deceased member and when the dispute relates to any act, or
omission on the part of either party to the dispute, be six years from the date
on which the act or omission with reference to which the dispute arose, took
place; (c) when the dispute is in respect of any matter touching the
constitution, management or business of a society which has been ordered to be
wound up under Section 69 or in respect of which a nominated committee or a
person or persons has or have been appointed under Section 53, be six years
from the date of the order issued under Section 69 and Section 53, as the case
may be; [228][(d) when the dispute is in connection with the election of
any officer of a society, be forty-five days from the date of declaration of
the result of such election]. (2)
The period of limitation in the case
of any other dispute except those mentioned in sub-section (1) which are
required to be referred to the Registrar under Section 64 shall be regulated by
the provisions of the Indian Limitation Act, 1908 (IX of 1908), as if the
dispute were a suit and the Registrar a Civil Court. (3)
Notwithstanding anything contained in
sub-sections (1) and (2) the Registrar may admit a dispute after the expiry of
the limitation period if the applicant satisfies the Registrar that he had
sufficient cause for not referring the dispute within such period. (1)
The Registrar may, on receipt of the
reference of dispute under Section 64 decide the dispute himself, or transfer
it for disposal to a nominee or board of nominees to be appointed by the
Registrar. (2)
When a dispute is transferred under
sub-section (1) for disposal by a nominee or a board of nominees, the Registrar
may at any time, for reasons to be recorded in writing, withdraw such dispute
from such nominee or board of nominees and may decide the dispute himself or
transfer it again to any other nominee or board of nominees appointed by him
for decision. (1)
The Registrar or his nominee or board
of nominees shall have the power of making interlocutory orders including grant
of a temporary injunction. In exercising this power, the Registrar or his nominee
or board of nominees, as the case may be, shall follow the procedure laid down
in the Code of Civil Procedure, 1908 (V of 1908), for the purpose of making
such orders and granting an injuction. (2)
No party shall be represented at the
hearing of the dispute by any legal practitioner, except with the permission of
the Registrar or his nominee or board of nominees, as the case may be: Provided
that where the permission is so granted, the other party to the dispute shall
be entitled to be represented by a legal practitioner. [229][(3) The Registrar or his nominee, as the case may be,
shall record a note in Hindi of the evidence of the parties and witnesses who
attend and upon the evidence so recorded and after consideration of any
documentary evidence produced by either side, shall give a decision or award,
as the case may be, which shall be reduced in writing. If the applicant duly
summoned is absent, the case may be dismissed in default. If the non-applicant
is absent, the case can be decided ex-parte. In cases, where three nominees are
appointed, the majority shall prevail: Provided
that where a dispute has been decided against any party in default and if such
party satisfies the Registrar within thirty days from the date of such default,
that there was sufficient cause for its non-appearance, the Registrar shall
make an order setting aside the decision and shall appoint a date for
proceeding with case.] Where
the Registrar or a nominee or board of nominees, as the case may be, acting
under Section 66 is satisfied on affidavit, enquiry or otherwise that a party
to any reference with intent to delay or obstruct the execution of any award
that may be made,- (a)
is about to dispose of the whole or
any part of his property; or (b)
is about to remove the whole or any
part of his property from the jurisdiction of the Registrar; the
Registrar, a nominee or board of nominees may unless adequate security is
furnished, direct the conditional attachment of the said property or such part
thereof as he thinks necessary through such agency authorized by him as he may
deem fit and such attachment shall have the same effect as if it had been made
by a competent Civil Court. (1)
If the Registrar, after an inquiry has
been held under Section 59, or an inspection has been made under Section 60 or
on receipt of an application made by not less than three-fourths of the members
of a society, is of opinion that the society ought to be wound up, he may issue
an order directing it to be wound up. (2)
The Registrar may of his own motion
make an order directing the winding up of a society,- (a)
where the society has not commenced
working within a reasonable time of its registration or has ceased to work; or (b)
where in the opinion of the Registrar
the society has been working mainly for promoting the interest of any
individual or group of individuals and not of the members generally; or (c)
where the society has ceased to comply
with any conditions as to registration or management under this Act, rules or
bye-laws; or [230][(d) Where the primary credit society continues to be in
default by not recovering its full overdue demand from members for continuous
three co-operative years and even after supersession, it fails to recover full
overdue demand.] (3)
No order under sub-section (1) or
sub-section (2) shall be passed unless the society concerned has been given a
reasonable opportunity of showing cause against the proposed order and
representation, if any made by it is considered. (4)
The Registrar may cancel an order for
the winding up of a society, at any time prior to the cancellation of its
registration in any case where, in his opinion, the society should continue to
exist. [231][(5) Notwithstanding anything contained in this section, no
co-operative bank shall be wound up, except with the previous sanction in
writing of the Reserve Bank of India.] [232][Notwithstanding anything to the contrary contained in this
Act, the Registrar shall make an order for winding up of a Co-operative Bank,
if so required by the Reserve Bank of India in the circumstances mentioned in
Section 13-D of the [233][Deposit Insurance and Credit Guarantee] Corporation Act,
1961 (No. 47 of 1961) [234][Where a co-operative Bank, being an insured bank within
the meaning of the Deposit Insurance Corporation Act, 1961 (No. 47 of 1961), is
wound up, or taken into liquidation, and the Deposit Insurance Corporation has
become liable to the depositors of the insured bank under sub-section (1) of
Section 16 of that Act, the Deposit Insurance Corporation shall be reimbursed
in the circumstances, to the extent and in the manner provided in Section 21 of
the Deposit Insurance Corporation Act, 1961 (No. 47 of 1961)]. (1)
Where the Registrar has made an order
under Section 69 for the winding up of a society, he may appoint a liquidator
for the purpose and fix his remuneration and may also remove at any time any
person appointed as liquidator and appoint another instead: [235][Provided that in respect of a co-operative bank ordered to
be wound up on requisition from the Reserve Bank, the liquidator shall not be
appointed or removed without the previous sanction of Reserve Bank]. (2)
A liquidator shall, on appointment,
take into his custody or under his control all the property, effects and
actionable claims to which the society is or appears to be entitled and shall
take such steps as he may deem necessary or expedient, to prevent loss
deterioration of, or damage to such property, effects and claims. [236][(3) Where an appeal is preferred under Section 78 an order
or winding up of society made under Section 69 shall not be operated thereafter
until the order is confirmed in appeal: Provided
that the liquidator shall continue to have custody of or control over the
property, effects and actionable claims mentioned in sub-section (2) and have
authority to take the steps referred to in that sub-section]. (4) Where an order
of winding up of a society is set aside in appeal, the property, effects and
actionable claims of the society shall revest in the society. [237][After the appointment of the liquidator, all powers of the
Committee of a Society, whether elected or nominated, shall cease and the
employees of the Society shall thereafter work under the control and
supervision of the liquidator.] (1)
Subject to any rules made in this
behalf the whole of the assets of a society in respect of which an order for
winding up has been made, shall vest in the liquidator appointed under Section
70 from the date on which the order takes effect and the liquidator shall have
power to realize such assets by sale or otherwise. (2)
Such liquidator shall also have power,
subject to the control of the Registrar- (a)
to institute and defend suits and
other legal proceedings on behalf of the society by the name of his office; (b)
to determine from time to time the contribution
(including debts due) to be made or remaining to be made by the members or past
members or by the estates or nominees, heirs or legal representatives of
deceased members or by any officers or former officers, 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 pay claims against the society
including interest up to the date of winding up according to their respective
priorities, if any, in full or ratably, as the assets of the society may
permit; the surplus, if any, remaining after payment of the claims being
applied in payment of interest from the date of such order of winding up at a
rate fixed by him but not exceeding the contract rate in any case; (e)
to determine by what persons and in
what proportions the costs of the liquidation are to be borne; (f)
to determine whether any person is a
member, past member or nominee of deceased member; (g)
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; (h)
to carry on the business of the
society so far as may be necessary for the beneficial winding up of the same; (i)
to make any compromise or arrangement
with creditors or persons claiming to be creditors or having or alleging to
have any claim, present or future, whereby the society may be rendered liable;
and (j)
to compromise all calls or liabilities
to calls and debts and liabilities capable of resulting in debts, and all
claims, present or future, certain or contingent, subsisting or supposed to
subsist between the society and a contributory or alleged contributory or other
debtor or person apprehending liability to the society and all questions in any
way relating to or affecting the assets or the winding up of the society on
such terms as may be agreed and take any security for the discharge of any such
call, liability, debt or claim and give a complete discharge in respect thereof: Provided
that no liquidator shall determine the contribution, debt or dues to be
recovered from a member or a past member or the nominee, heir or legal
representative of a deceased member unless opportunity has been given to such
member or past member or to such nominee, heir or legal representative to
explain his position. (3)
When the affairs of a society have
been wound up, the liquidator shall make a report to the Registrar and deposit
the records of the society in such place as the Registrar may direct. After
all the liabilities including the paid-up share capital of a wound up society
have been met, the surplus assets shall not be divided amongst its members but
they shall be applied to any object described in the bye-laws of the society
and when no object is so described, to any object of public utility determined,
by the general meeting of the society and approved by the Registrar or they
may, in consultation with them either be assigned by the Registrar in whole or
in part to any or all of the following- (a)
an object of public utility or local
or civic interest; or (b)
the Chhattisgarh Co-operative Union
Ltd., or any other institution or Union; or (c)
may be placed on deposit with a
Central Co-operative Bank until such time as a new society with similar
conditions is registered when with the consent of the Registrar such surplus
may be credited to the Reserve Fund of such new society; or (d)
a charitable purpose as defined in Sec.
2 of the Charitable Endowments Act, 1890 (VI of 1890); or [238][(e) to each existing member in proportion to his paid up
share capital.] (1)
No person other than a society
registered under this Act and a person or this successor in his interests of
any name or title under which he traded or carried on business at the date on
which this Act came into force, shall, without the sanction of the State
Government, function, trade or carry on business under any name or title of
which the word 'co-operative" or its equivalent in any Indian Language
forms part. (2)
Every person who is a member of a
society formed in contravention of sub-section (2) of Sec. 14 and every person
contravening the provisions of sub-section (1) shall be punishable with a fine
which may extend to two hundred rupees and in the case of a continuing offence
with further fine of five rupees for each day on which the offence is continued
after conviction therefore. It
shall be an offence under this Act, if- (a)
a committee or an officer or member
thereof willfully makes a false report or furnishes false information or
dishonestly fails to maintain accounts or dishonestly maintains false accounts;
or (b)
any person collecting share money for
a society in formation does not deposit the same in the Chhattisgarh State
Co-operative Bank Ltd., a Central Co-operative Bank, an Urban Co-operative Bank
or a Postal Savings Bank, within fourteen days of its receipt; or (c)
a person collecting the share money
for a society in formation makes use of the funds so raised for conducting any
business or trading in the name of a society to be registered or otherwise; or (d)
any officer of a society willfully
recommends or sanctions for his own personal use or benefit or for the use or
benefit of a person in whom he is interested loan in the name of any other
person; or (e)
an officer or any member destroys,
mutilates, alters, falsifies or secrets or is privy to the destruction,
mutilation, alteration, falsification or secreting of any books, papers or
securities, or makes or is privy to the making of any false or fraudulent entry
in any register, book of account or document belonging to the society; or (f)
an officer or a member who is in
possession of information, books and records, willfully fails to furnish such
information or produce such books and papers or does not give assistance to a
person appointed or authorized by the Registrar under Sections 53, 58, 59, 60,
67 and 70; or (g)
an officer willfully fails to hand
over custody of books, records, cash, security and other property belonging to
the society of which he is an officer, to a person appointed under Sec. 53 or
70; or (h)
a member fraudulently disposes of
property over which the society has a prior claim or a member or officer or
employee or any person disposes of his property by sale, transfer, mortgage,
gift or otherwise with the fraudulent intention of evading the dues of the
society; or (i)
any employer and other director,
manager, secretary or other officer or agent acting on behalf of such employer
who, without sufficient cause, fails to comply with provisions of sub-section
(2) of Sec. 42; or (j)
any person acquires or abets in the
acquisition of any property which is subject to a charge under sub-section (1)
of Sec. 40; or (k)
an officer or member of a society or
any person does any act or is guilty of omission declared by the rules to be an
offence. Explanation.-For
the purposes of this section an officer or a member referred to in this section
shall include past officer or past member, as the case may be. Every
committee, officer or past officer or member or past member or an employee or
past employee of a society or any other person shall, without prejudice to any
action that may be taken against him under any law for the time being in force,
be liable to be punished:- (a)
with fine not exceeding Rs. 2,000,
provided that he is convicted of an offence referred to in Section 74 (a); (b)
with fine not exceeding Rs. 1,000,
provided that he is convicted of an offence referred to in Section 74 (b); or (c)
with fine not exceeding Rs. 1,000,
provided that he is convicted of an offence referred to in Section 74 (c); or (d)
with fine not exceeding Rs. 2,000,
provided that he is convicted of an offence referred in Section 74 (d); or (e)
with fine not exceeding Rs. 2000,
provided that he is convicted of an offence referred to in Section 74 (e); or (f)
with fine not exceeding Rs. 250,
provided that he is convicted of an offence referred to in Section 74 (f); or (g)
with fine not exceeding Rs. 250,
provided that he is convicted of an offence referred to in Section 74 (g); or (h)
with fine not exceeding Rs. 2,000,
provided that he is convicted of an offence referred to in Section 74 (h); or (i)
with fine not exceeding Rs. 500,
provided that he is convicted of an offence referred to in Section 74 (i); or (j)
with fine not exceeding Rs. 1,000,
provided that he is convicted of an offence referred to in Section 74 (j); or (k)
with fine not exceeding Rs. 250,
provided that he is convicted of an offence referred to in Section 74 (k). (1)
No Court inferior to that of a
Magistrate of the First Class shall try any offence under this Act. (2)
No prosecution shall be instituted
under this Act without the previous sanction in writing of the Registrar and
such sanction shall not be given without giving to the person concerned an
opportunity to represent his case. [239][(1) The State Government shall, by notification,
constitute a Tribunal called the Chhattisgarh State Co-operative Tribunal to
exercise the powers and to discharge the functions conferred or imposed on the
Tribunal by or under this Act and the Chhattisgarh Swayatta Sahkarita
Adhiniyam, 1999 (No. 2 of 2000)] (2) The Tribunal
shall consist of the Chairman and two other members. (3) (a) No
person shall be qualified to be the Chairman of the Tribunal unless he had been
a Judge of a High Court or has held the office of a District Judge for not less
than five years. (b)
Of the other two members, one shall be an officer of Co-operative Department
not below the rank of Joint Registrar and the other shall be non-official
closely associated with the co-operative movement or an Advocate or a Pleader
having practical experience in the co-operative movement for a period of not
less than fifteen years: Provided
that if the State Government thinks fit, the Tribunal may consist of a single
person. Explanation.-
For the purpose of this sub-section "non official" shall mean a
person who on the date of his appointment as a member., does not hold any
office of profit under the Government of India or the Government of any State. (4) Notwithstanding
anything contained in sub-section (1), a person shall be disqualified for being
appointed as, or for being a Chairman or a member of the Tribunal, if he is a
member of the Committee of any society other than a general body of a society. (5) (a) The Chairman and other members of the
Tribunal shall hold office ordinarily for a period of not less than two years
and not more than five years as the State Government may, by notification,
specify in this behalf. (b)
A person who has held office as the Chairman or a member, for a period
mentioned in clause (a) shall be eligible for reappointment. (c)
The Chairman or a member of the Tribunal may, at any time, resign his office. (d)
The Chairman or a member of the Tribunal may with the permission of the State
Government, hold any other office, appointment or employment not inconsistent
with his position on the Tribunal. (6) Notwithstanding
anything contained in sub-section (4) the State Government may terminate at any
time, the appointment of the Chairman or a member if, in its opinion, such
Chairman or member is unable or unfit to continue to perform the duties of his
office: Provided
that no appointment shall be terminated under this sub-section unless the
person whose appointment is proposed to be terminated is given reasonable
opportunity of showing cause against such termination. (7) (a) If any vacancy occurs in the
office of Chairman or member by leave, absence, deputation, death, resignation,
expiry of the term of appointment, termination of the appointment or for any
other cause, whatsoever, such a vacancy shall be filled by appointment of a
person qualified for appointment under this section. (b)
Till the vacancy in the office of the Chairman is filled under sub-section (1),
the senior most member shall act as the Chairman of the Tribunal. (8) The head
quarters of the Tribunal shall be at such place as may be notified by the State
Government in the Gazette. (9) The powers and
functions of the Tribunal may be exercised and discharged by Benches
constituted by the Chairman from amongst the members of the Tribunal including
himself: Provided
that, any interlocutory application may be heard by one or more members who may
be present. (10) Such Benches shall consist of two or more members. (11) Where a matter is heard by three members the opinion
of the majority shall prevail, and the decision shall be in accordance with the
opinion of the majority. Where a matter is heard by an even number of members,
and the members are equally divided, if the Chairman be one of the members, the
opinion of the Chairman shall prevail, and in other cases the matter shall be
referred for hearing to the Chairman and shall be decided in accordance with
his decision. (12) Subject to the
previous sanction of the State Government, the Tribunal shall frame regulations
consistent with the provisions of this Act and the rules made there under, for
regulating its procedure and the disposal of its business. (13) The regulations made under sub-section (7), shall be
published in the Gazette. (14) The Tribunal may suo motu or on the application of party,
call for and examine the record of any proceedings in which no appeal lies to
it, for the purpose of satisfying itself as to the legality or propriety of any
decision or order passed. If in any case, it appears to the Tribunal that any
such decision or order should be modified, annulled or reversed, the Tribunal
may pass such order thereon as it may deem just. (15) Where an appeal or application is made to the Tribunal
under this Act, it may, in order to prevent the ends of justice being defeated,
make such interlocutory orders pending the decision of the appeal or
application, as the case may be, as may appear to it to be just and convenient,
or such orders as may be necessary for the ends of justice, or to prevent the
abuse of the process of the Tribunal. (16) An order in appeal, revision or review passed under
this Act by the Tribunal, shall be final and conclusive, and shall not be
called in question in any Civil or Revenue Court. (17) The Tribunal hearing an appeal under this Act shall
exercise all the powers conferred upon an Appellate Court by Section 97 and
Order XLI in the First Schedule to the Code of Civil Procedure, 1908 (No. V of
1908). (1)
The Tribunal may, either on the
application of the Registrar, or on the application of any party interested,
review its own order in any case and pass such order in reference thereto as it
thinks just: Provided
that, no such application made by the party interested shall be entertained,
unless the Tribunal is satisfied that there has been the discovery of new and
important matter of evidence, which after the exercise of due diligence was not
within the knowledge of the applicant or could not be produced by him at the
time when its order was made, or that there has been mistake or error apparent
on the face of the record, or any other sufficient reason: Provided
further that no such order shall be varied or revised, unless notice has been
given to the parties interested to appear and be heard in support of such
order. (2)
An application for review under the
sub-section (1) by any party shall be made within ninety days from the date of
the communication of the order of the Tribunal. (1)
In exercising the powers conferred on
it by or under this Act, the Tribunal shall have all the powers as are vested
in Civil Court while trying a suit under the Code of Civil Procedure, 1908 (No.
V of 1908), in respect of the following matters, namely: (a)
proof of facts by affidavits; (b)
summoning and enforcing the attendance
of any person and examining him on oath; (c)
compelling discovery or the production
of any document; and (d)
issuing commissions for the
examination of witnesses. (2)
In the case of any such affidavit, any
officer appointed by the Tribunal in this behalf may administer the oath to the
deponent. (1)
Save where it has been otherwise
provided, an appeal shall lie from every original order under this Act or the
rules made there under:- (a)
if such order is passed by an officer
subordinate to Registrar, other than Additional Registrar or Joint Registrar,
whether or not the Officer passing the order is invested with the powers of the
Registrar, to the Registrar; (b)
if such order is passed by the
Registrar, Additional Registrar or Joint Registrar, to the Tribunal. (2)
A second appeal shall lie against any
order passed in the first appeal by the Registrar, to the Tribunal on any of
the following ground, and no other namely:- (i)
that the order is contrary to law; or (ii)
that the order has failed to determine
some material issue of law; or (iii)
that there has been a substantial
error or defect in the procedure as prescribed by this Act which may have
produced error or defect in the decision of the case upon merits. (3)
Every appeal shall be presented in the
prescribed manner to the appellate authority concerned within thirty days of
the date on which the order appealed against was communicated to the party
affected by the order: Provided
that in computing the period of limitation under this sub-section the time
requisite for obtaining a copy of the order appealed against shall be excluded. In
all cases in which it is provided under this Act that an appeal may be filed
against any decision or order within a specified period, the appellate
authority may admit an appeal after the expiry of such period if the appellant
satisfies the appellate authority that he had sufficient cause for not preferring
the appeal within such period. Notwithstanding
anything to the contrary contained in this Act, where with previous sanction in
writing or on the requisition of the Reserve Bank of India, (i)
an order for the winding up of a
co-operative bank is made; or (ii)
a scheme of compromise or arrangement
or of reconstruction or re-organization or amalgamation is made or is given
effect to; or (iii)
an order for the supersession or
suspension of the committee by whatever name called of a Co-operative Bank and
the appointment of an Administrator therefore, has been made; no,
appeal, revision or review there against shall lie or be permissible, and such
order or the sanction or requisition of the Reserve Bank of India shall not be
liable to be called in question. Subject
to the provisions of Section 78, the Registrar, Additional Registrar, Joint
Registrar, or the Deputy Registrar may make over any case or cases arising
under the provisions of this Act, for decision from his own file to any officer
subordinate to him competent to decide such case or class of cases or may
withdraw any case or class of cases from any such officer and may deal with
such case or class of cases himself or refer the same to any other officer
subordinate to him and competent to decide such case or class of cases.] [240][The Registrar, may at any time on his own motion or on the
application made by any party, call for and examine the record of any enquiry
or the proceedings by any sub-ordinate officer or a decision of a Committee of
a Society for which Government has contributed to its share capital or has
given loans or financial assistance or has guaranteed the repayment of loans
granted in any other form for the purpose of satisfying himself as to the
legality or propriety of any decision or order passed and as to the regularity
of the proceedings of such officer or committee. If in any case, it appears to
the Registrar that any decision or order or proceedings so called for should be
modified, annulled or reversed, the Registrar, may pass such order thereon as
he may deem fit: Provided
that no order under this Section shall be made to the prejudice of any party
unless such party has had an opportunity of being heard: Provided
further that the powers conferred on the Registrar under this Section, shall
not be delegated to any officer below the rank of Joint Registrar]. [241][Every appeal or revision or any other proceeding pending
before the Board of Revenue or the State Government, as the case may be,
immediately before the date of constitution of Chhattisgarh State Co-operative
Tribunal under this Act, shall stand transferred to the Tribunal.] (1)
All sums due from a society or from an
officer, member or past member or a deceased member of a society as such to
State Government including any costs awarded to Government under any provisions
of this Act, may, on a certificate issued by the Registrar in this behalf, be
recovered in the same manner as arrears of land revenue. (2)
Sums due from a society to the State
Government and recoverable under sub-section (1) may be recovered- (a)
firstly, from the property of the
society; (b)
secondly, in the case of a society the
liability of the members of which is limited, from the members, past members,
or estates of the decreased members subject to the limit of their liability: Provided
that the liability of a legal representative of the deceased shall be to the
extent of the property of the deceased which has come to the hands of such
legal representative; and (c)
thirdly, in the case of other
societies, from the members or past members, or estates of the deceased members: Provided
that the liability of past members or estate of deceased members in all cases
shall be subject to the provisions of Section 29. [242][(1) If a co-operative society is unable to pay its debts
to a financing bank from which it has borrowed, by reasons of its members
committing default in the payment of money due by them, the financing bank may
direct the committee of such society to proceed against such members by taking
action under Section 64. (2) If the committee
of the Co-operative society fails to proceed against its defaulting members
within a period of ninety days from the date of receipt of such direction from
the financing bank, the financing bank itself may proceed against such
defaulting members in which event, the provisions of this Act, the rules and
byelaws made there under shall apply as if all references to the society or its
committee in the said provisions, rules and byelaws were references to the
financial bank. (3) Where a
financing bank has obtained a decree or award against a society indebted to it,
the bank may proceed to recover such moneys from the assets of the society to
the extent of debts due from the society.] (1)
Save as provided in this Act, no civil
or revenue Court shall have any jurisdiction in respect of- (a)
the registration of a society or of
bye-laws or of an amendment of a bye-law; (b)
the removal of a committee and the
management of the society after such removal; (c)
any dispute, required to be referred
to the Registrar or his nominee or board of nominees; (d)
any matter concerning the winding up
and the dissolution of a society. (2)
While a society is being wound up, no
suit or other legal proceedings relating to the business of such society shall
be proceeded with, or instituted against, the liquidator as such or against the
society or any member thereof, except by leave of the Registrar and subject to
such terms as he may impose. (3)
Save as provided in this Act, no
order, decision or award made under this Act shall be questioned in any Court
on any ground whatsoever. Any
sum awarded by way of costs under Section 62, may be recovered, on an
application by the Registrar to a Magistrate having jurisdiction in the place
where person from whom the money is claimable resides, or carries on business,
by sale of any property within the limits of the jurisdiction of such
Magistrate, belonging to such, person, and such Magistrate shall proceed to
recover the same, in the same manner as if it were a fine imposed by himself. [243][Notwithstanding anything contained in Chapter VII or any
other law for the time being in force, but without prejudice to any other mode
of recovery provided in this Act, the Registrar or any person empowered by the
Registrar in this behalf, may on an application of the society and subject to
such rules as State Government may make in this behalf, make an order directing
the payment of any debt or outstanding demand due to the society by any member
or past or deceased member by attachment and sale or transfer by any other mode
for such period and subject to such terms and conditions as the Registrar or
such other person may specify, of the property or any interest therein which is
subject to a charge under [244][sub-section (1) of Section 40, sub-section (1) of Section
41], and sub-sections (1), (2) and (3) of Section 42: Provided
that no order shall be made under this section unless the member, past member
or nominee, heir or legal representative of the deceased member has been served
with a notice of the application and has failed to pay the debt or outstanding
demand within [245][thirty] days from the date of such service]. [246][[247][Recovery of sums due to certain societies] (1)
Notwithstanding anything contained in
Sections 64, 69 and 78 on an application made by a co-operative housing society
or Chhattisgarh State Co-operative Housing Federation [248][or primary urban Co-operative Bank] for recovery of
arrears of its dues, the Registrar may, after making such enquiry as he deems
fit, grant a certificate for the recovery of the amount stated therein to be
due as an arrear. (2)
The certificate granted by the
Registrar shall be final and conclusive proof of the arrears stated therein,
and the same shall be recoverable as arrears of land revenue.] [249][[250][Every order or award passed or decision given by the
Registrar under any provision of this Act, every order passed by the Appellate
or Revisional Authorities and every order made, decision given by the Liquidator,
if not carried out]- (a)
on a certificate signed by the
Registrar or any person authorized by him in this behalf be deemed to be decree
of a Civil Court and shall be executed in the same manner as a decree of such
Court; or (b)
be executed according to the law and
under the rules for the time being in force for the recovery of arrears of land
revenue; or (c)
be executed by the Registrar or any
other person empowered by the Registrar in this behalf, by the attachment and
transfer in the manner as may be prescribed or sale or sale without attachment
of any property of the person or a society against whom the order, decision or
award has been obtained or passed: Provided
that any application for the recovery under clause (b) shall be made- (i)
to the Collector and shall be
accompanied by a certificate signed by the Registrar or by any person
authorized in this behalf; and (ii)
within five years from the date fixed
in the order, decision or award and if no such date is fixed, from the date of
order, decision or award, as the case may be]. Where
against any person an order to deliver possession of immovable property has
been passed under this Act, such order shall be executed in the following
manner, namely:- (a)
by serving a notice on the person or
persons in possession requiring him/them within such time as may appear
reasonable after the receipt of the said notice, to vacate the same; and (b)
if such notice is not obeyed, by
removing or deputing a subordinate to remove any person who may refuse to
vacate the same; and (c)
if the officer removing any such
person is resisted or obstructed by any person, appoint any of the officers
specified in Section 3, who shall hold a summary inquiry into the facts of the
case, and if satisfied that the resistance or obstruction was without any just
cause, and that such resistance or obstruction still continues may, without
prejudice to any proceeding to which such person may be liable under any law
for the time being in force for the punishment of such resistance or
obstruction, take or cause, to be taken such steps and use or cause to be used,
such force as may, in the opinion of such officer, be reasonably necessary for
securing compliance with the order. (1)
Every notice or order issued or made
under this Act, the rules or bye-laws be served on any person by properly
addressing it to the last known place of residence or business of such person
by registered post with acknowledgment due letter containing the notice or
order: [251][Provided that a notice relating to a meeting called by a
co-operative society shall be issued under certificate of posting and/or be
issued by hand delivery after obtaining acknowledgment of the receipt thereof.] (2)
An acknowledgment purporting to be
signed by such person or an endorsement by a postal employee that the person
refused to take delivery may be deemed to be prima facie proof of service: [252][Provided that if service of the notice cannot be effected
by any manner provided under this Act, or rules made there under, or bye-laws
of the society, a copy thereof shall be affixed at the last known place of
residence of the person noticed or at some place of public resort in such
place.] [253][Every officer or person as well as employee of a
Co-operative Bank or a co-operative society or an authority exercising or
authorized to exercise the powers under this Act or the Rules or bye-laws made
there under shall be deemed to be a public servant within the meaning of
Section 21 of the Indian Penal Code, 1860 (XLV of 1860).] No
suit, prosecution or other legal proceedings shall lie against the Registrar or
any person subordinate to him or acting under his authority, in respect of
anything done or purporting to have been done by him in good faith under this
Act. (1)
In exercising the powers conferred on
him by or under this Act, the Registrar, his nominee or board of nominees, or
any other person deciding a dispute and the liquidator of a society shall have
all the powers of a Civil Court while trying a suit, under the Code of Civil
Procedure, 1908 (V of 1908), in respect of the following matters, namely:- (a)
summoning and enforcing the attendance
of any person and examining him on oath; (b)
requiring the discovery and production
of any document; (c)
proof of facts by affidavits; and (d)
issuing commissions for examination of
witnesses. (2)
In the case of any affidavit, any
officer appointed by the Registrar, his nominee or board of nominees or the
liquidator, as the case may be, may administer oath to the deponent. The
Registrar or any person empowered by him in this behalf shall be deemed, when
exercising any powers under this Act for the recovery of any amount by the
attachment and sale or by sale without attachment of any property, or when
passing any orders on any application made to him for such recovery or for
taking a step in aid of such recovery, to be a Civil Court for the purposes of
Article 182 of the First Schedule to the Indian Limitation Act, 1908 (IX of
1908). [254][x x x] The
provisions of the Companies Act, 1956 (I of 1956) shall not apply to societies
registered under this Act. Nothing
contained in the Chhattisgarh Shops and Establishments Act, 1958 (25 of 1958),
the Chhattisgarh Industrial Workmen (Standing Orders) Act, 1959 (19 of 1959)
and the Chhattisgarh Industrial Relations Act, 1960 (27 of 1960) shall apply to
a society registered under this Act. No
suit shall be instituted against a society or any of its officers in respect of
any act touching the constitution, management or business of the society until
the expiration of two months-next after notice in writing has been delivered to
the Registrar or left at his office, stating the cause of action, the name,
description and place of residence of the plaintiff and the relief which he
claims, and the plaint shall contain a statement that such notice has been so
delivered or left. (1)
The Government may, for the whole or
any part of the State and for any society or class of societies, make rules for
the conduct and regulation of the business of such society or class of societies
and for carrying out all or any of the purposes of this Act. (2)
In particular and without prejudice to
the generality of the foregoing power, such rules may- (a)
subject to the provisions of Section 3
prescribe the delegation of powers vested in the Registrar to persons appointed
to assist the Registrar [255][and prescribe the manner of forwarding the copies of the
proposed amendment of the bye-laws to the Registrar]. (b)
prescribe the forms to be used and the
conditions to be complied with in the making of applications for the
registration of a society and the procedure in the matter of such applications; (c)
prescribe the matters in respect of
which a society may make or the Registrar may direct a society to make,
bye-laws and the procedure to be followed in making, altering and abrogating
bye-laws and the conditions to be satisfied prior to such making, alteration or
abrogation; [256][(c-1) prescribe the period for the training of a member of
a society and the manner of calling upon a member of a society to attend the
course of training; (c-2) prescribe the manner of regulating the voting right
of individual member of a federal society;] (d)
prescribe the procedure to be followed
and conditions to be observed for change of name or liability, reorganization
or reconstruction of society; (e)
prescribe the conditions to be
complied with by a person applying for admission or admitted as a member and
provide for the election and admission of members and the payment to be made
and the interest to be acquired before the exercise of the right of membership; (f)
subject to the provisions of Section
24, prescribe the maximum number of shares or portion of the capital of a
society which may be held by a member. [257][(g) provide for the withdrawal or removal of members and
for the payments to them; (h) provide for the nomination of person to whom the share
or the interest of a deceased member may be paid or transferred; (i) provide for ascertaining the value of a share or
interest of a past member or deceased member; (j) prescribe the payments to be made and the conditions to
be complied with by members applying for loans, the period for which loans may
be made, and the amount which may be lent to an individual member; [258][(j-1) prescribe the proportions for reservation of seats
for members belonging to scheduled castes, scheduled tribes and economically
weaker sections on the committee of a resource society and provide for holding
of an office of President/Chairman or Vice President/Vice-Chairman of resource
society by a member belonging to the aforesaid castes, tribes or section;] (k) provide for the inspection of documents in the office
of the Registrar or of any other officer or authority and the levy of fees for
granting certified copies of the same; (l) provide for the
formation and maintenance of a register of members and where the liability of
the members is limited by shares, of a register of shares and a list of
members; (m) provide for securing that the share capital of any
society shall be variable in such a way as may be necessary to secure that the
share shall not appreciate in value and the necessary capital shall be
available for the society as required; (n) prescribe the
terms and conditions on which Government may make share capital contribution or
give assistance, financial or other, to societies and the terms and conditions
on which Government may guarantee the payment of the principal of and interest
on debentures issued by societies or loans raised by them; (o) regulate the
manner in which funds may be raised by a society or a class of societies by
means of shares or debentures or otherwise and the quantum of funds so raised; [259][(p) prescribe the manner of giving intimation to the
Tahsildar about the details of the debt or outstanding demand owing to the
society from a member, past member or deceased member;] (q) prescribe the
procedure by which a society shall calculate and write off bad debts; (r) provide for the
formation and maintenance of reserve funds, and the objects to which such funds
may be applied and for the investment and use of any fund including reserve
fund under the control of a society; (s) prescribe the
rate at which a society shall contribute towards the Chhattisgarh State
Co-operative Union; (t) prescribe the
mode of investment of funds of a society under Section 44 and the proportion of
investment in any security or class of securities; (u) provide for the
payment of contribution to any provident fund which may be established by a
society for the benefit of officers and servants employed by them and for the
administration of such provident fund; (v) provide for
general meetings of the members and the procedure at such meetings and the
powers to be exercised by such meetings; (w) provide for the
appointment, suspension and removal of the members of the committee and other
officers and for the appointment of a person or persons under Section 53 and
prescribe procedure at meetings of the committee and for the powers to be
exercised and the duties to be performed by the committee, person or persons
and other officers; (x) prescribe [260][qualification and disqualification] for members of the
committee and employees of a society or class of societies and the conditions
of service subject to which persons may be employed by societies; (y) prescribe the returns to be submitted by society to the
Registrar and provide for the person by whom and the form in which such returns
shall be submitted; (z) provide for the person by whom and the form in which
copies of documents and entries in books of societies may be certified and the
charges to be levied for the supply of copies thereof; (aa) prescribe the accounts and books to be kept by a
society and provide for the audit of such accounts and the charges, if any, to
be made for such audit, and for the periodical publication of a balance sheet
showing the assets and liabilities of a society; (bb) provide for appointment of Registrar's nominee or
board of nominees, procedure to be followed in proceedings before the Registrar
or his nominee or board of nominees, and for fixing and levying the expenses
for determining the dispute and for enforcing the decisions or executing awards
in such proceedings; (cc) provide for the issue and service of processes; (dd) prescribe the procedure for and the method of recovery
of any sums due under this Act or the rules; (ee) prescribe the procedure to be followed for the custody
of property attached under Section 68; (ff) prescribe the procedure and conditions for the exercise
of the powers conferred under Section 71 and the procedure to be followed by a
liquidator and provide for the disposal of surplus assets; [261][(gg) prescribe the procedure to be followed in presenting
and disposal of appeals other than the appeals lying to the Tribunal;] [262][* * *] (ii) prescribe the
method of communicating or publishing any order, decision or award required to
be communicated or published under this Act or the rules; and (jj) provide for
all matters required or allowed by this Act to be prescribed by rules. (3)
All rules made under this Act shall be
laid on the table of Legislative Assembly. (1)
The Co-operative Societies Act, 1912
(II of 1912), in its application to Mahakoshal region, the Madhya Bharat
Co-operative Societies Act, 1955 (9 of 1955), the Vindhya Pradesh Co-operative
Societies Ordinance, 1949 (XXI of 1949), the Bhopal State Co-operative
Societies Act, 1937 (XI of 1937) and the Rajasthan Co-operative Societies Act, 1953
(IV of 1953) in its application to the Sirnoj region are hereby repealed. (2)
Notwithstanding such repeal- (i)
any society registered or deemed to
have been registered under the enactment specified in sub-section (1) shall be
deemed to be registered under this Act and its bye-laws shall, so far as the
same are not inconsistent with the provisions of this Act be deemed to be
registered under this Act and continue in force until altered or rescinded; (ii)
all appointments, rules and orders
made, notifications and notices issued and suits and other proceedings
instituted under any of the said enactments shall so far as may be, be deemed
to have been respectively made, issued and instituted under this Act. [1] Received the assent of the President on 28-4-1961; Assent
first published in the 'Chhattisgarh Gazette' on the 12th May, 1961. [2] Substituted by CG Act No. 12 of 1994 [w.e.f. 8-5-1994]. [3] Inserted by CG Act
No. 8 of 1970 [w.e.f. 12-2-1970]. [4] Inserted by CG Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [5] Inserted by CG Act
No. 8 of 1970 [w.e.f. 12-2-1970]. [6] Substituted by CG Act
No. 28 of 1982 [29-10-1982]. [7] Inserted by CG Act
No. 28 of 1982 [29-10-1982]. [8] Inserted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [9] Substituted by CG Act
No. 14 of 1976 [w.e.f. 7-10-1976] [10] Inserted by CG Act
No. 8 of 1970 [w.e.f. 12-2-1970]. [11] Inserted by CG Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [12] Omitted by CG Act No.
25 of 1988 [w.e.f. 28-6-1988]. [13] Substituted by CG Act
No. 25 of 1988 [w.e.f. 28-8-1988] [14] Substituted by CG Act
No. 25 of 1988 [w.e.f. 28-8-1988] [15] Inserted by CG Act
No. 1 of 1968 [w.e.f. 5-2-1968]. [16] Inserted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [17] Substituted by CG Act
No. 8 of 1970. [18] Inserted by Sec. 2 of
CG Act No. 20 of 1999 [w.e.f. 7-8-1999]. [19] Renumbered by as t-i
CG Act 12 of 1994 [w.e.f. 8-5-1994]. [20] Inserted by CG Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [21] Inserted by CG Act
No. 8 of 1970. [22] Inserted by CG Act
No. 14 of 1990. [23] Substituted by CG Act
No. 28 of 1982. [24] Renumbered as u-iii
by C.G. Act No. 14 of 1990. [25] Inserted by CG Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [26] Renumbered as u-iii
by C.G. Act No. 14 of 1990. [27] Inserted by CG Act
No. 3 of 1985 [w.e.f. 1-1-1983]. [28] Inserted by CG Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [29] Substituted by CG Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [30] Inserted by CG Act
No. 14 of 1976. [31] Substituted by C.G. Act No. 14 of 1976. [32] Substituted by C.G. Act No. 14 of 1976. [33] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [34] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [35] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [36] Inserted by C.G. Act No. 33 of 1998 [w.e.f. 3-11-1998]. [37] Substituted by C.G. Act No. 8 of 1970. [38] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [39] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [40] Substituted by C.G. Act No. 14 of 1976. [41] Inserted by Sec. 3 of C.G. Act No. 20 of 1999 [w.e.f.
7-8-1999]. [42] Inserted by C.G. Act No. 8 of 1970. [43] Substituted by CG Act No. 12 of 1976. [44] Substituted by CG Act No. 12 of 1994 [w.e.f. 8-5-1994]. [45] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [46] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [47] Insrtted by Sec. 2 of C.G. Act No. 7 of 1997 [w.e.f.
6-2-1997]. [48] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [49] Inserted by C.G. Act No. 8 of 1970. [50] Inserted by C.G. Act No. 8 of 1970. [51] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [52] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [53] Inserted by CG Act No. 8 of 1970. [54] Inserted by CG Act No. 8 of 1970. [55] Inserted by C.G. Act No. 8 of 1970. [56] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [57] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [58] Substituted by C.G.
Act No. 8 of 1970. [59] Substituted by C.G.
Act No. 14 of 1976. [60] Substituted by Sec. 4
of CG Act No. 20 of 1999 [w.e.f. 7-8-1999]. [61] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [62] Inserted by C.G. Act
No. 14 of 1976. [63] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [64] Inserted by C.G. Act
No. 14 of 1976. [65] Substituted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [66] Inserted by C.G. Act
No. 23 of 1986 [w.e.f. 21-7-1986]. [67] Inserted by C.G. Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [68] Inserted by C.G. Act
No. 14 of 1990. [69] Omitted by C.G. Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [70] Inserted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [71] Inserted by C.G. Act No. 14 of 1976. [72] Inserted by C.G. Act
No. 8 of 1970. [73] Substituted by C.G.
Act No. 30 of 1994 [w.e.f. 2-12-1994]. [74] Inserted by C.G. Act
No. 30 of 1994 [w.e.f. 2-12-1994]. [75] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [76] Substituted by C.G.
Act No. 12 of 1994 (w.e.f. 8-5-1994]. [77] Inserted by C.G. Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [78] Omitted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [79] Substituted by CG Act No. 14 of 1976. [80] Substituted by C.G. Act No. 28 of 1982. [81] Substituted by C.G. Act No. 14 of 1990 [w.e.f. 31-7-1990]. [82] Inserted by C.G. Act No. 14 of 1976. [83] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [84] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [85] Substituted by C.G. Act No. 14 of 1976. [86] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [87] Substituted by C.G. Act No. 14 of 1976. [88] Substituted by CG Act No. 12 of 1994 [w.e.f. 8-5-1994]. [89] Substituted by CG Act No. 12 of 1994 [w.e.f. 8-5-1994]. [90] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [91] Substituted by C.G. Act No. 4 of 1971. [92] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [93] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [94] Inserted by CG Act No. 14 of 1976. [95] Inserted by CG Act No. 14 of 1976. [96] Substituted by Section 2 of C.G. Act No. 2 of 2001 [w.e.f.
17-1-2001]. Prior to substitution Section 37-A reads as under: [97] Substituted by C.G. Act No. 1 of 1968 [w.e.f. 5-2-1968]. [98] Substituted by C.G. Act No. 14 of 1976. [99] Inserted by C.G. Act No. 14 of 1976. [100] Substitued by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [101] Substituted by C.G. Act No. 14 of 1976. [102] Inserted by CG Act No. 12 of 1994 [w.e.f. 8-5-1994]. [103] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [104] Substituted by C.G. Act No. 14 of 1976. [105] Inserted by CG Act No. 12 of 1994 [w.e.f. 8-5-1994]. [106] Inserted by C.G. Act No. 28 of 1982 [w.e.f. 29-10-1982]. [107] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [108] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [109] Inserted by C.G. Act
No. 14 of 1976. [110] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [111] Omitted by C.G. Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [112] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [113] Substituted by CG Act No. 25 of 1988 [w.e.f. 28-6-1988]. [114] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [115] Substituted by C.G.
Act No. 14 of 1976. [116] Inserted by CG Act
No. 28 of 1982 [w.e.f. 29-10-1982]. [117] Substituted by C.G.
Act No. 14 of 1990 [w.e.f. 26-4-1990]. [118] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [119] Inserted by Sec. 6 of
C.G. Act No. 20 of 1999 [w.e.f. 7-8-1999]. [120] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [121] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [122] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [123] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [124] Omitted by CG Act No.
12 of 1994 [w.e.f. 8-5-1994]. [125] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988] [126] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [127] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [128] Inserted by C.G. Act
No. 14 of 1990. [129] Substituted by C.G.
Act No. 5 of 1978 [w.e.f. 24-11-1977). [130] Substituted by C.G.
Act No. 14 of 1990 [w.e.f. 26-4-1990]. [131] Omitted by CG Act No.
12 of 1994 [w.e.f. 8-5-1994]. [132] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [133] Substituted by CG Act No. 12 of 1994 [w.e.f. 8-5-1994]. [134] Substituted by C.G. Act No. 22 of 1995 [w.e.f. 22-6-1995]. [135] Substituted by C.G. Act No. 22 of 1995 [w.e.f. 22-6-1995]. [136] Substituted by C.G.
Act No. 8 of 1970. [137] Substituted by Sec. 7
(1) of C.G. Act No. 20 of 1999 [w.e.f. 7-8-1999 ]. [138] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [139] Substituted by C.G.
Act No. 14 of 1976. [140] Omitted by C.G. Act
No. 25 of 1988 [w.e.f. 28-6-1988] [141] Substituted by C.G.
Act No. 5 of 1978 [w.e.f. 24-11-1977). [142] Inserted by Sec.
7(ii) of C.G. Act No. 20 [w.e.f. 7-8-1999]. [143] Substituted by C.G.
Act No. 14 of 1990 [w.e.f. 26-1-1990]. [144] Substituted by C.G.
Act No. 23 of 1986. [145] Substituted by C.G.
Act No. 23 of 1986. [146] Substituted by C.G.
Act No. 23 of 1986. [147] Inserted by C.G. Act
No. 8 of 1970. [148] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [149] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [150] Inserted by C.G. Act
No. 14 of 1976. [151] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [152] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [153] Substituted by C.G.
Act No. 14 of 1990 [w.e.f. 26-4-1990]. [154] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [155] Sub-sections (7-B)
and (7-C) omitted by C.G. Act 25 of 1988 [w.e.f. 28-6-1988]. [156] Substituted by CG Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [157] Substituted by CG Act
No. 12 of 1994 [w.e.f. 8-5-1994]. [158] Omitted by CG Act No.
12 of 1994 [w.e.f. 8-5-1994]. [159] Omitted by CG Act 12 of 1994 [w.e.f. 8-5-1994]. [160] Inserted by CG Act No. 14 of 1976. [161] Inserted by C.G. Act No. 14 of 1990 [w.e.f. 26-4-1990]. [162] Inserted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [163] Inserted by CG Act No. 14 of 1990[w.e.f. 31-7-1990]. [164] Substituted by Section 8 of C.G. Act No. 20 of 1999 [w.e.f.
7-8-1999]. [165] Substituted by C.G. Act No. 8 of 1970. [166] Inserted by C.G. Act No. 8 of 1970. [167] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [168] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [169] Substituted by C.G. Act No. 14 of 1990. [170] Inserted by Sec. 2 of C.G. Act NO. 17 of 2000 (w.e.f.
30-5-2000. [171] Omitted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [172] Substituted by Sec. 4 of C.G. Act No. 7 of 1997 [w.e.f.
6-2-1997]. [173] Added by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [174] Inserted by C.G. Act No. 14 of 1976. [175] Omitted by Sec. 9 of C.G. Act No. 20 of 1999 [w.e.f.
7-8-1999]. [176] Section 52-A renumbered as Sec. 52-B by C.G. Act No. 23 of
1986 [w.e.f. 21-7-1986]. [177] Substituted by C.G. Act No. 14 of 1990 [w.e.f. 26-4-1990]. [178] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [179] Omitted by C.G. Act
25 of 1988 [w.e.f. 28-6-1988]. [180] Substituted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [181] Inserted by CG Act
No. 8 of 1970. [182] Inserted by CG Act
No. 14 of 1976. [183] Inserted by CG Act
No. 28 of 1982 [w.e.f. 29-10-1982]. [184] Omitted by C.G. Act
25 of 1988 [w.e.f. 28-6-1988]. [185] Omitted by C.G. Act
25 of 1988 [w.e.f. 28-6-1988]. [186] Omitted by C.G. Act 25
of 1988 [w.e.f. 28-6-1988]. [187] Inserted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [188] Substituted by Sec.
10 of CG Act No. 20 of 1999 [w.e.f. 7.8.1999]. [189] Omitted by C.G. Act
25 of 1988 [w.e.f. 28-6-1988]. [190] Substituted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [191] Inserted by CG Act
No. 8 of 1970. [192] Inserted by CG Act
No. 14 of 1976. [193] Substituted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [194] Substituted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [195] Inserted by CG Act
No. 14 of 1976. [196] Inserted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [197] Inserted by CG Act
No. 14 of 1976. [198] Inserted by CG Act
No. 25 of 1988 [w.e.f. 28-6-1988]. [199] Substituted by Sec.
10 of CG Act No. 20 of 1999 [w.e.f. 7.8.1999]. [200] Inserted by CG Act
No. 14 of 1976. [201] Inserted by CG Act
No. 8 of 1970. [202] Inserted by CG Act
No. 14 of 1976. [203] Substituted by C.G. Act No. 14 of 1990 [w.e.f. 26-4-1990]. [204] Inserted by C.G. Act No. 14 of 1976. [205] Inserted by C.G. Act No. 8 of 1970. [206] Inserted by C.G. Act No. 28 of 1982 [w.e.f. 29-11-1982]. [207] Substituted by C.G. Act No. 14 of 1976. [208] Substituted by C.G. Act No. 28 of 1982 [w.e.f. 29-10-1982]. [209] Substituted by C.G. Act No. 14 of 1976. [210] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [211] Renumbered as sub-section (1) by C.G. Act No. 8 of 1970. [212] Inserted by C.G. Act No. 8 of 1970 [w.e.f. 12-2-1970]. [213] Inserted by C.G. Act No. 14 of 1976. [214] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [215] Substituted by Sec. 5
of C.G. Act No. 7 of 1997 [w.e.f. 6-2-1997]. [216] Inserted by Sec. 11
of C.G. Act No. 20 of 1999 [w.e.f. 7-8-1999]. [217] Substituted by C.G.
Act No. 12 of 1994 [w.e.f. 8-5-1994]. [218] Inserted by C.G. Act No. 28 of 1982 [w.e.f. 29-10-1982]. [219] Inserted by Sec. 12 of C.G. Act No. 20 of 1999 [w.e.f.
7-8-1999]. [220] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [221] Inserted by CG Act No. 14 of 1976. [222] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [223] Substituted by C.G. Act No. 14 of 1976. [224] Omitted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [225] Inserted by C.G. Act No. 14 of 1990 [w.e.f. 31-7-1990]. [226] Substituted by C.G. Act No. 12 of 1994 [w.e.f. 8-5-1994]. [227] Substituted by CG Act No. 14 of 1976. [228] Inserted by C.G. Act No. 8 of 1970. [229] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [230] Inserted by C.G. Act No. 14 of 1976. [231] Inserted by C.G. Act No. 8 of 1970. [232] Inserted by C.G. Act No. 8 of 1970. [233] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [234] Inserted by C.G. Act No. 8 of 1970. [235] Inserted by C.G. Act No. 8 of 1970. [236] Substituted by C.G. Act No. 14 of 1976. [237] Inserted by Section 13 of C.G. Act No. 20 of 1999 [w.e.f.
7-8-1999]. [238] Inserted by C.G. Act No. 12 of 1994 (w.e.f. 8-5-1994). [239] Substituted by Section 2 of CG Act No. 1 of 2002 [w.e.f.
24-12-2001]. Prior to substitution sub-section (1) reads as under: "(1)
The State Government shall, by notification, constitute a Tribunal called the
Chhattisgarh State Co-operative Tribunal to exercise the powers and to
discharge the functions conferred or imposed on the Tribunal by or under this
Act." [240] Inserted by Sec. 14 of CG Act No. 20 of 1999 [w.e.f.
7-8-1999]. [241] Inserted by Sec. 14 of C.G. Act No. 20 of 1999 [w.e.f.
1-5-1999]. [242] Inserted by CG Act No. 14 of 1976. [243] Substituted by C.G. Act No. 8 of 1970 [244] Inserted by C.G. Act No. 28 of 1982 [w.e.f. 29-10-1982]. [245] Substituted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [246] Inserted by CG Act
No. 12 of 1994 [w.e.f. 8.5.94]. [247] Substituted by C.G.
Act No. 20 of 1999 [w.e.f. 7-8-1999]. [248] Inserted by Section
15 (iii) of CG Act No. 20 of 1999 [w.e.f 7-8-1999]. [249] Substituted by C.G. Act No. 8 of 1970. [250] Substituted by C.G. Act No. 28 of 1982 [w.e.f. 29-10-1982]. [251] Substituted by C.G. Act No. 28 of 1982 [w.e.f. 29-10-1982]. [252] Inserted by C.G. Act No. 25 of 1988 [w.e.f. 28-6-1988]. [253] Substituted by C.G. Act No. 28 of 1982 [w.e.f. 29-10-1982]. [254] Omitted by CG Act No. 12 of 1994 [w.e.f. 8-5-94]. [255] Inserted by C.G. Act
No. 14 of 1976. [256] Inserted by C.G. Act
No. 14 of 1976. [257] Substituted by C.G.
Act No. 14 of 1976. [258] Inserted by C.G. Act
No. 14 of 1976. [259] Substituted by C.G.
Act No. 14 of 1976. [260] Substituted by C.G.
Act No. 25 of 1988 [w.e.f. 28-6-1988]. [261] Substituted by C.G.
Act No. 14 of 1976. [262] Omitted by C.G. Act
No. 14 of 1976.
[THE CHHATTISGARH CO-OPERATIVE SOCIETIES ACT, 1960][1] PREAMBLE
Section 2 – Definitions.
Section 9 – Registration.
Section 19D – Omitted.
Section 36 – Borrowings.
Section 49A – Omitted.
Section 50AA – Omitted.
Section 52A – Omitted.
Section 59 – Inquiry.
Section 64 – Disputes.
Section 65 – Limitation.
Section 74 – Offences.
Section 77A – Review.