In exercise of the powers
conferred by section 85 of the Punjab Co-operative Societies Act, 1961 (Punjab
Act No.25 of 1961), the Governor of Punjab is pleased to make the following
rules namely :- These rules may be called the
Punjab Co-operative Societies Rules, 1963. In these rules, unless the
context otherwise requires. (a) "the
Act" means the Punjab Co-operative Societies Act, 1961; (b) "appendix"
means an appendix to these rules; (c) "co-operative
year" means the year ending with the[1]
[-] or in the case of any cooperative society or class of co- operative
societies, the accounts of which are made up to any other date, with the
previous sanction of the Registrar, the year ending with such date; (d) "decree"
means any order, decision or award referred to in section 63 of the Act; (e) "decree
holder" means any person holding a decree as defined in clause (d); (f) "maximum
credit limit" means the extent to which a co-operative society may receive
deposits and loans from member and non-members; (g) "model
bye-laws" means a set of bye-laws approved and proposed by the Registrar
for general adoption by a class of co-operative societies; (h) "owned
capital" means the total paid-up share capital and reserve fund and other
funds created out of profits and undistributed profits minus accumulated
losses; (i) "paid-up
share capital" means such portion of the subscribed share capital as is
actually paid up; (j) "recovery
officer" means a person subordinate to the Registrar who is empowered to
exercise in a district, the powers of the Registrar under section 63 of the
Act; (k) "relative"
includes any one related to the person concerned his wife, his son/daughter or
his son's wife or daughter's husband through a common ancestor, not more remote
than a grandfather, or any one married to a person so related; (l) "reserve
fund" means a fund to which at least one-tenth of the net profits of a
co-operative society in any year shall be carried as required by section 41 of
the Act; (m) "sale
officer" means an officer empowered by the Registrar by general or special
order, to attach and sell the property of defaulters or to execute any decree
by attachment and sale or property; (n) "section"
means a section of the Act; (o) "share
capital" means the subscribed share capital; (p) "working
capital" means the total of owned capital plus the borrowed capital; (q) words and
expression defined in the Act and used in the rules shall have the meanings,
respectively, assigned to them in the Act. Registration of
Co-operative Societies and their Bye-laws APPLICATION FOR REGISTRATION An application for registration
of a cooperative society shall be made in the form given in Appendix A and
shall specify the name and address of one of the applicants to whom the
Registrar may address his correspondence under rules 5 (2) and 6. The application for registration
shall be accompanied by three copies of the bye-laws which the co-operative
society proposes to adopt. Such copies of bye-laws shall bear the signatures of
not less than two of the applicants, duly authorised by the members of the
proposed cooperative society. (1) Before
passing final orders under Section 8 the Registrar may call for such further
information from the applicants or make such independent enquiries as he may
deem necessary. (2) After the
Registrar is satisfied with regard to the matters stated in sub-section(1) of
section 8. he may register the co-operative society and its bye-lows. A copy of
the registered bye-laws shall be returned by him to the 'o-operative society. The order passed by the Registrar
under sub-section (2) of section 8 shall be communicated by registered post to
the applicant referred to in rule 3. Where an application for
registration of a co-operative Society is rejected by the Registrar the appeal,
if made, shall be signed by the persons joining in the application for
registration. [2]Provided
that where the application for registration has been signed by more than ten
persons, the appeal shall be signed by at least two- thirds of persons, joining
the application for registration. (1) A
co-operative society shall make bye-laws in respect of the following matters:? (a) name and
address of the co-operative society; (b) area of
operation; (c) the
objects for which the cooperative society is established; (d) the
manner in which the funds may be raised; (e) the
qualifications for membership and the terms of admission of members; (f) the
nature and the extent of the liability of the members; (g) withdrawal
and expulsion of members, and the payments, if any, to be made to such members; (h) transfers
of shares or interests of the members; (i) general
meeting and the procedure and powers of such meeting; (j) appointment,
suspension and removal of the officers of the co- operative society and members
of the committee; (k) constitution
of the committee and procedure of holding its meeting; (l) powers
and duties of the committee and the officers of the co- operative society; (m) disposal
of profits; Provided that if in the opinion
of the Registrar the bye-laws of any co-operative society do not contain
provisions with regard to the matters specified in clauses (i) and (k) or
contain insufficient provision with regard to these matters, the provisions
specified in Appendix 'B' shall apply to such society as if these had been a
part of the bye-laws registered under section 8; (2) The
bye-laws of a[3] Coop. Society may
further provide for such matters as are incidental to the organization of the
Co-operative Society and the management of its business. Subject to the provision c f
section 10 and rule 8 a Co-operative Society may from time to time amend its
bye-laws. No amendment under rule 9 shall be
carried out save in accordance with a resolution passed at a general meeting of
the co- operative society of which due notice of the intention to discuss the
amendments has been given: Provided that no such resolution
shall be valid unless it is passed by a majority of members present at the
general meeting at which not less than two-thirds of members for the time being
of the co-operative society are present: Provided further that model
bye-laws for amendments previously approved by the Registrar
may be adopted by a majority at an ordinary general meeting. Three copies of the amendments
adopted by the co-operative society under rule 10, signed by two officers of
the co-op. society duly authorised by the general meeting in this behalf, shall
be submitted to the Registrar along with an application for registration duly
signed as aforesaid. Such copies of the amendments shall be accompanied by a
certificate signed by any one of the above two officers of the co-operative
society to the effect that the provisions of the rule 10 have been complied
with. (1) After the
Registrar is satisfied with regard to the matters stated in sub-section (2) of
section 10, he may register the amendments and return a copy of the registered
amendments to the co- operative society. (2) The order
of the Registrar passed under sub-section (4) of section 10, shall be
communicated by registered post to the co-operative society. Where an application for
registration of an amendment in bye-laws of a co-operative society is rejected
by the Registrar under sub-section (4) of section 10, the appeal, if any, shall
be made only after a meeting of the general body has reconsidered the matter
and has decided to prefer an appeal and shall be signed by an officer of the
co-operative society duly authorised in this behalf by a general meeting. (1) No person
shall be eligible for admission as a member of a co-op. society if he - (a) has
applied to be adjudicated an insolvent or is an un discharged insolvent; or (b) he has
been sentenced for any office, other than an offence of a political character
or an offence not involving moral turpitude, and a period of five years has not
elapsed from the date of expiry of the sentence. (2) If a
member becomes subject to any of the disqualifications specified in sub-rule
(I) he shall be deemed to have ceased to be a member from the date when the
disqualification was incurred, (1) No
individual, being a member of a primary co-op. society having one of the
objects the creation of the funds to be lent to its members, shall be a member
of any other such co-op. society without the general or special permission of
the Registrar, and where an individual has become a member of two such co-op.
societies, either or both of the co-op. societies shall be bound to remove him
from membership upon a written requisition from the Registrar to that effect. (2) No
individual who is an officer of any co-op. society shall without the general or
special permission of the Registrar, be a member of any other co- op. society
whose objects are similar to the objects of the society of which he is an
officer; and where such an individual has become a member of another
Co-operative Society with similar objects, either or both of the co-op
societies shall be bound to remove him from membership upon written requisition
from the Registrar to that effect. If any question arises as to whether or not
two Co-operative Societies have similar objects the decision of the Registrar
on the point shall be final. No co-op. society shall admit
members within fourteen days prior to the date of its annual general meeting. [4] [16-A. Member pot to exercise rights till due payment made. [Sections 85 (2)
(v) and Section 17][5].-- (1) No member
of a co-operative society shall participate in the general meeting of the
Co-operative Society or in the election to the committee unless he has made all
such payments to the Co-op Society as are due from him. (2) At the
commencement of each general meeting, the Secretary of the Co-op Society shall
announce the names of the defaulting members which shall form part of the
proceedings of the meeting. A Co-op Society, other than a
producer Co-operative Society, shall dispose of an application received for
admission as a member as early as possible and in no case later than the
expiration of-a period of one month from the date of receipt of the application
by the Cooperative Society. In case of refusal to admit, such Co- operative
Society shall communicate its decision, together with reasons there for to the
applicant. (1) In the
co- operative society with unlimited liability, a member who is not indebted to
a co-operative society and is not a surety for an unpaid debt, may withdraw
from the co-operative society after giving such notice to the Secretary of the
Co- operative Society as may be laid down in the bye-laws of the co-op society. (2) In a
co-operative society with unlimited liability, a member who withdraws or is
otherwise removed or expelled from the Co-operative Society, shall be entitled
to repayment without interest of any money paid by him or his predecessor in
interest towards the purchase of shares after such period as may be laid down
in the bye-laws. (3) No member
of a co-operative society with limited liability shall ordinarily be permitted
to seek withdrawal or refund of his shares : Provided that where the society
has created a share-transfer fund out of its earned profits, its managing
committee may, keeping in view the overall interests of the society, allow
withdrawal of shares: Provided further that such
withdrawal of shares at any time shall not exceed five per cent of the
aggregate paid-up share capital of the society, excluding Government
contributions, as it stood on the 30th June of the preceding year. (4) Irrespective
of the nature of liability of a co-operative society the share capital
subscribed by the State Government in a co-operative society or by a Central or
Apex Co-operative Financing Institution will be retired in such a manner and
during such period as may be determined by the Registrar from time to time. (1) Every
member of a Co- operative Society shall nominate a person or persons to whom
his share or interest referred to in section 21 or such sums out of share or
interest as may be specified by the member, shall on the death of the member be
transferred or paid as laid down in the bye-laws. (2) Such
nomination may, from time to time, be revoked or modified by the by the member. (3) The
number of persons who may be nominated by a member shall not exceed the number
of shares held by the member. (4) When a
member of d Co-operative Society nominates more than one person, he shall, as
far as practicable, specify the amount to be paid or is transferred to each
nominee in terms of whole share and the interest accruing thereon. (5) The
record of nomination shall be kept by a Co-operative Society in such manner as
may be laid down in the bye-laws. (6) The value
of the share or interest transferred or paid to a nominee or nominees shall be
determined on the basis of the sum actually paid by the member to acquire such
share or interest, unless the bye-laws provide for calculation on a different
basis. Every Co- operative Society shall
maintain a register of members showing? (a) the name,
address and occupation of each member, and a statement of shares held by him; (b) the date
on which the member's name was entered in the register; (c) the date
on which any person ceased to be a member; (d) the
nominees appointed by a member. No member other than the
Government or a Co-operative Society shall hold more than one- fifth of the
share capital of a Co-operative Society or have or claim any interest ,in the
shares of the Co-operative Society exceeding ten thousand rupees, whichever
is [6]less. [7]Rule ? 22 Power of general meeting. [Section 85 (2) (vii) and (x)].-- Without prejudice to the
provisions of section 24, the general meeting alone shall have the power to transact
the following business:? (1) [8]fixing
the maximum credit limit of the Co-operative Society having 1000 or less
members subject to the approval of the Registrar. (2) [9]................................ (3) expulsion
of the members. The members of the committee of a
Cooperative Society shall be elected in accordance with the rules given in
Appendix C. Rule [10][23-A The manner of Co-option, the area of
agricultural land to be held and the conditions required to be fulfilled for
the purpose of section 26-A. [Sections 85 (xd) and 26-A] (1) The
Registrar in his direction under Section 26-A shall intimate the number and
class of persons to be co-opted in the committee of a co-operative society. (2) The
committee of a co-operative society, to which a direction under Section 26-A
has been issued by the Registrar, shall immediately after the receipt of such
direction, call a meeting in accordance with these rules and the bye-laws. (3) The
Committee shall then co-opt the number of members specified in the direction
issued by the Registrar from amongst the members belonging to Scheduled Castes
or Schedule Tribes or Backward Classes or from amongst members who hold, as
landowner or tenant or as both, not more than two standard acres of
agricultural land: Provided that the members so
co-opted fulfill the conditions and qualifications pre scribed for the elected
members of the committee in these rules or in the bye-laws of such a
co-operative society. Note:- 'Standard Acre' for the
purposes of this rule shall have the same meaning as given in Punjab Security
of Land Tenures Act, 1953 (Act 10 of 1953) Subject to the provisions of sub-
section (IF) of section 26, the first committee of a co-operative society shall
be elected within a period of six months from the date of its registration. In a Cooperative Society, the
membership of which is not exclusively confined to individuals, the
representation of individuals and Co-operative Society on the committee and the
general body shall be such as may be laid down in the bye-laws of the
Co-operative Society. Rule - 25.
Disqualification for membership of committee. [Section 85 (2) (xii) and
(xxxviii)].-- No person shall be eligible for
election as a member of the committee if (a) he is in default
to any Co-operative Society in respect of any sum due from him to the
Co-operative Society or owes to any Co-operative Society an amount exceeding
his maximum credit limit; (b) he has
directly or indirectly, any interest in any contract to which the Co-operative
Society is a party except in transactions made with the Co-operative Society as
a member in accordance with the objects of the Co- operative Society as stated
in the bye-laws; (c) he has at
any time during a period of one year prior to the date of scrutiny of
nomination papers, engaged in any private business, trade or profession of any
description which is carried on by the society; (d) he has
committed any offence involving dishonesty or moral turpitude during a period
of five years prior to the date of scrutiny of nomination papers; (e) he is
subject to any of the [11] restrictions
contained in rule 29; (f) he has,
during a period of 12 months preceding the date of filing of nomination papers,
remained inactive as member or has been carrying on, through agencies other
than the Co-operative Society of which he is a member, the same business as is
being carried on, by the Co-operative Society; (g) [12]he is a
member or [13] [any Co-operative Society
which has ceased to function or which has not fulfilled its objects as stated
in its bye-laws and has been inducted in the list of D class societies
maintained by the Registrar or is a member [14] of a
Co-operative Society which is under winding up process; (h) he has
ceased to be a member of any Co-operative Society within a period of one year
preceding the date of inclusion of such Co-operative Society in the list of D
class Co-operative Societies maintained by the Registrar or the operation of
order of winding up to such Co-operative Society under section 57 of the Act. [15] [Provided
that nothing in clauses (g) and (gg) shall be deemed to debar any person from
seeking election if the Co-operative Society under winding up process of which
he is a member is a Co-operative Society with [16]
[limited or unlimited liability and that person discharges all his liabilities
including liability as a surety, if any, in relation to such a Co-operative
Society, within two months from the receipt of assessment orders. (i) [17] [the has
incurred any other disqualification laid down in the bye-laws of the society. A member of the committee shall
cease to hold his office as such if he:? (a) continues
to be in default in respect of any sum due from him to the Cooperative Society
for such period as may be laid down in the bye-laws ; (b) ceases to
be a member; (c) is
declared insolvent; (d) becomes
of unsound mind; (e) is
convicted of an offence involving dishonesty or moral turpitude; or (f) becomes
subject to any disqualification which would have prevented him from seeking
election, had he incurred that qualification before election. The Registrar may, in such cases
as he thinks fit, divide the area of operation of a Co-operative Society into
zones not exceeding in number than the number of members to be elected for the
committee. [18]Rule - [28. Qualifications and conditions of service of
employees. [Section 85 (xxxviii)].-- (1) The
qualifications and conditions of service subject to which any person may be
employed by a co-operative society or a class of co-operative societies shall
be such as may be determined by the Registrar from time to time. (2) Where the
Registrar is of the opinion that it is necessary or expedient so to do, he may
by order, for reasons to be recorded in writing relax the provisions of this
rule with respect to any co-operative society or class of co-operative
societies to such extent as he may consider proper. [19]Rule - [29. Restrictions on transactions of officers and
past officers with the co-operative society. [Section 85 (2) (2) (x) and
(xxxviii)].-- (1) Without
prejudice to the bye-laws, no officer of a co-operative society shall, without
the prior permission in writing of the Registrar, have an interest directly or
indirectly, otherwise than as such officer? (a) in any
contract made with the society; or (b) in any
property sold or purchased or leased by the Co-operative Society; or (c) in any
other transaction of the Co-operative Society, except as investment made or as
loan taken from the Co-operative Society or the provision of residential
accommodation by the Co-operative Society. (2) No
officer of a co-operative society shall without the prior permission in writing
of the Registrar, purchase directly or indirectly, any property of a member of
the Co-operative Society sold for the recovery of his dues to that Co-operative
Society. (3) The
restrictions contained in this rule shall continue to apply for a period of two
years after a person ceases to be an officer of the Co-operative Society. For the purpose section 36 a copy
of an entry in the books of a Co-operative Society shall be certified by a
certificate written at the book containing the entry is still in the custody of
the Co-operative. Society. [20]Provided
that the certificate shall be signed and dated by the Manager or Secretary of
the Co-operative society or by an officer authorised by the Co-operative
Society to do so. Loans and subsidies to a
Co-operative Society or class of Co-operative Societies may be granted by
Government on such terms and conditions as may be laid down by Government by a
general or special order from time to time. An application by a Cooperative
Society for a loan or subsidy or both from[21]
[the Government or a Government sponsored agency shall be made through the
Registrar. While forwarding the application, the Registrar shall record his
opinion regarding the eligibility of the Co-operative Society for the said loan
or subsidy or both, its financial position and the desirability of sanctioning
to the Co-operative Society the said loan or subsidy or both. A Co-operative Society receiving
Government loan or subsidy or a Co-operative Society in which a share or shares
have been subscribed or liability by way of guarantee for borrowing exceeding
fifty per cent of the working capital of the Co-operative Society has been
undertaken by the Government, shall furnish such information and submit such
returns as the sanctioning authority or the Registrar may, from time to time,
require. (1) [22] [(1)
....... (2) The
reserve fund of a Co-operative Society or class of Co-operative Societies, may
unless the Registrar by special order otherwise directs to be invested under
section 44, be utilized in the business of the Co-operative Society. (3) The
reserve fund shall be indivisible and no member shall be entitled to claim a
specified share in it: [23]Provided
that the Reserve Fund may be utilized with the prior approval of Registrar in
meeting losses when it is necessary so to do to save the Co-operative Society
from going under liquidation or to prevent the depositors from making a run on
the Ca operative Society for getting back their deposits or any such other
eventuality. (4) No
Co-operative Society whose reserve fund has been separately invested or deposited
shall draw upon, pledge or otherwise employ such fund except with the sanction
of the Registrar previously obtained in writing. (1) In no
Co-operative Society the dividend shall exceed [24]
[20 per cent] per annum on paid up share-capital (2) In a
Co-operative Society with unlimited liability on dividend or bonus shall be
paid until a period of five years has elapsed from the date of registration. (3) No
dividend shall be paid by the Co-operative Society while any claim due from the
Co-operative Society to a depositor or lender remains unsatisfied. (4) The
Registrar, may, by a general or special order, direct that a Co- operative
Society shall not pay dividend or shall pay dividend at a reduced rate so long
as it receives loans and deposits non-members. [25] [35.A. Net Profit. [Section 2 (gg) and Section 41 ].-- The net profits of a Co-operative
Society shall be the profits remaining after allowing for the following
charges, in addition to those specified in clause (gg) of Section 2, namely:? (a) all other
usual working charges, such as repairs, rent, taxes, subsidies received,
depreciation and irrecoverable bad debits written off; (b) capital
expenditure written off, either wholly or in part;- (c) capital
loss actually incurred and not adjusted against any funds created out of
profits; (d) provisions
for estimated bad debits, if any; and (e) expenses
incurred in connection with election of the committee. Every Co-operative Society shall
contribute such amount not exceeding two per cent as may be directed by the
Registrar, from time to time out of its net profits of the year to the
Co-operative Education Fund to be administered by the State Co-operative Union.
The contributions payable by a Co-operative Society shall be recoverable in the
manner provided in section 63. The State Co-operative Union
shall [26] [frame regulations with the
approval of the Registrar for the utilization and administration of the fund. (1) Besides
the manner provided in section 44, a Co- operative Society may invest or
deposit its funds or any portion thereof? (a)
in any bonds, certificates or loans issued by the Government or
the Central Government; (b) in
debentures floated by a Co-operative Society; (c) with the
previous sanction of the Registrar, in the purchase or lease of land or building
or in the acquisition, construction or renewal of any building that may be
necessary to conduct its business. (2) The
amount of the funds invested under clause (c) of sub-rule (1) shall be recouped
on such terms as may be determined in each case by the Registrar. (3) The provisions
of clause (c) of sub-clause (1) shall not apply (a) to
immovable property purchased? (1) by a
Co-operative Society at a sale held in execution of a decree obtained by it,
for the recovery of any sum due to it; or (2) by a
financing bank at a sale held in execution of a decree obtained by a
Co-operative Society financed by it, for the recovery of any sum due to such
Co-operative Society or at a sale brought about by the liquidator of such
Co-operative Society; or (b) to the
purchase or lease for lands or purchase construction or renewal of buildings by
a Co-operative Society whose objects according to its bye-laws include such
purchase, lease, construction or renewal. No Co-operative Society shall
write off, in whole or in part, any [27]
[debt or other sums due to it without the previous sanction of the Registrar. The bye-laws of a Co-operative
Society may lay down the limit beyond which a Co-operative Society may not
advance loans to individual members without the Registrar's prior consent. [28]Rule - [40. Nature and extent of securities for loan.
[Section 85 (2) (xxi)].-- The Registrar may, in furtherance
of the objectives of a Co-operative society of a class of co-operative
societies regulate the lending of money by such co-operative societies, by
general or special order, indication? (1) the
manner in which the application for loan may be given and the documents which
may be attached therewith; (2) the mode
of dealing with the application for loans; (3) the ratio
between the loan to be granted and the shares to be held by the loanees; (4) the
nature and extent of security to be demanded by a Co- operative Society in
respect of loans advanced by it; (5) the
purpose for which the loans may be advanced; (6) the ratio
in which the loan may be given in cash and kind; (7) the
installment in which the loan may be given; (8) the mode
of disbursement of loan; whether in cash directly to the loanee or through
specified suppliers or specified articles for which the loan is sanctioned; (9) the mode
of supervision over the proper utilisation of loan; (10) the mode
or repayment of loans; and (11) generally
to ensure the proper flow of credit and its ultimate utilisation and recovery
in conformity with the objectives of the Co-operative Society concerned. No Co-operative Society shall
grant loans or make advances against the security of its own shares. [29]Rule - [42. Declaration under section 32. [Section
32].-- (1) A
declaration under clause (i) or I (ii) of section 32 shall be made in the form
given in appendix 'U. (2) A
register of such declarations to be kept by the Co-operative Society shall be
in the form given in appendix 'E' (1) Subject
to the provisions of sub-rule (2), a Co-operative Society shall not receive
deposits and loans whether from members or non-members which exceed the limit
fixed from time to time in a general meeting subject to the approval of the
Registrar who may at any time reduce it. (2) A
Co-operative Society which accepts deposits and loans from members only and has
no liability to any person other than the members, may receive such deposits
and loans in excess of the limits referred to in sub-rule (1) if the excess
amount is deposited in a Cooperative Bank to which it is affiliated or is
revised in Government Securities specified in section 20 of the Indian Trusts
Act, 1882; provided that the amount so deposited or invested, or any part
thereof, is not withdrawn or otherwise utilised except for the payment of the
deposits accepted in excess of the aforesaid limit. (3) No
Co-operative Society shall accept loans or deposits whether from members or
non-members at a rate of interest which exceed by more than three per cent the
interest paid on similar types of deposits or loans by the Central Co-operative
Bank within whose area of operation the Co-operative Society is situated except
that the Registrar may by general or special order grant exemption or
relaxation to any class of Co-operative Societies or individuals Co-op Society
from the operation of this rule. Every Co-operative Society
accepting deposits and granting cash credits shall maintain fluid resources in
such form and according to such standards as may be fixed by the Registrar from
time to time by general or special order. (1) The
Registrar may, from time to time, give directions consistent with the
provisions of the Act as he considers necessary for the beneficial and
efficient functioning of any co- operative Society or class of co-operative
societies. (2) If any
question arises whether any directions given under sub-rule (1) are necessary
for the beneficial and efficient functioning of the co-operative society or class
of co-operative societies, as the case may be, the concerned co-operative
society or class of co-operative societies may refer such question to the
Government whose decision thereon shall be final. light of
direction issued by Registrar. Lashlcar Singh v. State of Punjab, 1985 PLJ 503:
1985 RLR 269: 1985 LLR 522 (P&H). Save in a producers co-operative
society no relative of any member of the committee or of any other officer of a
co-operative society shall be appointed to any office in the co-operative
society, except with the previous sanction of the Registrar. The accounts of a co- operative
society shall be audited in such manner as the Registrar may specify from time
to time. A cooperative society or class of
co-operative societies shall maintain the account books and other records in
such form and manner as may be directed by the Registrar by a general or
special order from time to time. (1) A
co-operative society shall prepare a balance sheet, profit and loss account,
trading account and such other statements relating to accounts as may be
specified, from time to time, by the Registrar, as soon as practicable after
the close of the co-operative year in such form, as may be laid down by the
Registrar. (2) If the
Registrar so directs a copy each of the statements referred to in sub-rule (1)
shall be supplied by a co-operative society to the Registrar by such date as he
may specify. (1) Every
co-operative society shall pay to the Government a fee for the audit of its
accounts for each co- operative year in accordance with the scale fixed by the
Registrar with the previous approval of the Government in respect of the class
of co-operative societies to which it belongs. (2) The
Registrar may, subject to such conditions as may be laid down by the
Government, remit the whole or any part of the fees payable under sub-rule (1)
by a co-operative society or a class of co-operative societies for any year or
other specified period. [30]Rule - [51. Reference of Disputes. [Section 85(1)].-- When a party to the dispute
referred to in sub-section (1) of section 55 desires to have that dispute determined
in accordance with the provisions of the said section, the party shall apply to the
Registrar in the form given in Appendix 'F'. (1) The
Registrar shall have power to require the person referring a dispute vinder
sub-section (i) of section 55 to deposit in advance the fee, if any, to be
specified [31] [by the Registrar
keeping in view the nature of the case for deciding the dispute. (2) The
Registrar may, in such cases as he thinks fit, order the payment of fee to the
arbitrator. (3) No fee
shall be payable to an arbitrator till the dispute referred to him is [32]
[decided (4) The
Registrar may, in his discretion, remit the whole or any part of the fees
collected under sub-rule(1). In an arbitration proceeding, the
Registrar or the arbitrator, as the case may be, shall communicate the date,
time and place of hearing the dispute to all the parties concerned. The Registrar or the arbitrator,
as the case may be; shall have power to appoint or remove a guardian for the
party to the dispute who is a minor or who, by reasons of unsoundness of mind
or mental infirmity, is incapable of protecting his interest. The Registrar or the arbitrator,
as the case may be, shall hear the parties and witnesses [33]
[who attend and record the evidence. On the basis of such evidence and after
consideration of any documentary evidence that may be produced by either party,
he shall give a decision or award, as the case may be, in accordance with
justice, equity and good conscience. The decision or award shall be reduced to
writing,[34] [pronounced to the parties
and filed in the office of the Registrar. In the absence of any party duly
summoned to attend [35]
[and served, the dispute may be decided ex parte. The arbitrator or the Registrar,
as the case may be, shall have the power to order the expenses of determining a
dispute or the costs of either party to be borne by such party or parties to
the dispute as he may think fit. (1)?? The record of arbitration proceeding shall
be kept in such place and in such manner as the Registrar may direct. [36] (2) A
copy of the decision or award shall, on application, be given to a party by the
Registrar as soon as may be possible on payment of the fees specified in rule
78 of these rules. (1) The liquidator
shall as soon as the order of winding up of the co-operative society takes
effect publish by such means as he may think proper, a notice requiring all
claims against the co-operative society, the winding up of which has been
ordered to be submitted to him within one month of the publication of the
notice. All liabilities recorded in the account books of a co-operative society
shall be deemed ipso facto to have been duly submitted to him under this
sub-rule. (2) The
liquidator shall, be after settling the assets and liabilities of the
co-operative society as they stood on the date on which the order for winding
up is made, proceed next to determine the contribution to be made by each of
its members, 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 Co-operative Society under clauses (b) and (e) of sub-
section (2) of section 59. Should necessity arise, he may make a subsidiary
order regarding such contributions and such order shall be enforceable in the
same manner as the original order. (3) The
liquidator may, at any time, call a meeting of the members or of the creditors' or a
joint meeting of the members and creditors and such meeting shall be called,
held and conducted at such time and place and in such manner as the liquidator
may deem fit. An order passed by the liquidator
under clause (b) of sub-section (2) of section 59 shall be submitted by him to
the Registrar for approval. The Registrar may modify such order or refer it
back to the liquidator for further enquiry or action. The liquidator shall submit to
Registrar a quarterly report in such form as the Registrar may specify showing
the progress made in the liquidation of the co-operative society. All funds in charge of the
liquidator shall be deposited with such institution or person as the Registrar
may approve. Rule - 62. Expenses
incurred by. liquidator. [Sections 59 (1) and 85 (2) (xxvi)].-- All expenses incurred in
connection with the winding up of the co-operative society shall be subject to
the approval of the Registrar. The liquidator shall distribute
the realised assets in such manner and in such priority as the Registrar may
direct. The remuneration fixed under
section 58(1) shall be included in the cost of liquidation which shall be
payable out of the assets of the co-operative society in priority to all other
claims. After discharging the liabilities
of the co-operative society and repayment of share-capital, the liquidator may
utilise the surplus assets, if any, for one or more of the following purposes:- (a) deposit
the amount in[37] [the Central Co-operative
Bank of the area which the Cooperative Society in question operates until a new
co-operative Society with similar area of operation is registered when it shall
be credited to reserve fund of the new co-operative society ; (b) any
purpose connected with the development of co-operative movement, subject to the
approval of the Registrar; (c) an object
of public utility selected with due regard to the wishes of the members and
approved by the Registrar. If any liability cannot be
discharged by the liquidator owing to the whereabouts of the claimant not being
known or for any other cause; the amount covered by such undercharged liability
may be deposited in the Central Co-operative Bank having jurisdiction over the
area in which the co-operative society was functioning and shall remain at the
disposal of the claimants for a period of three years, after which the un drawn
amount, if any, may be transferred to the State Co-operative Union for credit
to the Cooperative Education Fund. A liquidator may, at any time, be
removed by the Registrar and he shall on such removal hand over all the
property and documents relating to the Co-operative Society under liquidation
to such persons as the Registrar may direct. The liquidators shall keep such
books and accounts as may be laid down by the Registrar from time to time. The
Registrar may at any time cause such books and accounts to be audited. The liquidator shall, after
meeting the liabilities of the Co-operative Society, submit a final report to
the Registrar in such forms as may, from time to time, be specified [38] [by
him. All the books and records of a
co-op. society whose registration has been cancelled may be destroyed under the
orders of the Registrar after the expiry of a period of three years from the
date of cancellation. The notice under the proviso to
Section 62 shall indicate the substance of the demand or debt due to the
co-operative society and shall be served in the manner laid down for the
service of summons in sub-rule (3) of rule 74. No order under Section 62 shall
be made until a period of thirty days has expired the date of service of the
notice. of Rule 71 read with sub Rule (3) of Rule 74 and that such a
notice must be given or tendered to the debtor himself, and in case he is not
found, it has to be left at his place of residence or business. Such a notice
cannot lawfully be served by being sent to the debtor through or care of the
Secretary of the creditor Society itself. Such an attempt to serve the debtor,
if it remains unsuccessful, would amount to almost a fraud upon the requirement
of service of notice. Puran Singh v. State of Hazyana, 1976 PLI 1 : 1976 RLR
107 (P&H) (DB). (1) Any
decree-holder requiring the provisions of clause (b) of section 63 to be
applied or shall apply to the Recovery Officer within whose jurisdiction the
defaulter resides or the property of the defaulter is situated. (2) every
such application shall be made in the form specified by the Registrar and shall
be signed by the decree-holder. The decree holder may indicate whether he
wishes to proceed against the immovable property mortgaged to the decree-holder
or other immovable property or to secure the attachment of movable property, (3) on
receipt of such application the recovery Officer shall verify the correctness
and genuineness of the particulars set forth in the application with the
records, if any, in the office of the Registrar and prepare a demand notice in
writing in duplicate in the form specified by the Registrar, setting forth the
name and address of the defaulter and the amount due and forward it to a Sale
Officer. (4) Unless
the decree-holder has expressed a desire that proceedings should be taken in
particular order as laid down in sub-rule (2) execution shall ordinarily be
taken in the following manner :- (a) Movable
property of the defaulter shall be first proceeded against, but this shall not
preclude the immovable property being proceeded against simultaneously in case
of necessity; (b) if there
is no movable property, or if the sale-proceeds of the movable property or
properties attached and sold are insufficient to meet in full the demand of the
decree-holder, the immovable property mortgaged to the decree- holder or other
immovable property belonging to the defaulter may be proceeded against. (5) In the
seizure and sale of movable property, the following procedure shall be observed:? (a) The Sale
Officer shall, after giving previous notice to the decree-holder, proceed to
the village or locality where the defaulter resides or the property to be
distrained is situated and serve a demand notice to the defaulter if he is
present. If the amount due together with the expenses is not at once paid, the
Sale Officer shall make the distress and shall immediately deliver to the
defaulter a list or inventory of the property distrained and an intimation of
place and day and hour at which the distrained property will be brought to sale
if the amounts due are not previously discharged. If the defaulter is absent,
the Sale Officer shall serve the demand notice on some adult member of his
family, or on his authorized agent or when such service cannot be affected,
shall affix a copy of the demand notice on some conspicuous part of his
residence. He shall then proceed to make the distress and shall fix the list of
the property attached on the usual place of residence of the defaulter
endorsing thereon the place where the property may be lodged or kept and an
intimation of the place, day and hour of sale. (c) After the
distress is made the Sale officer may arrange for the custody of the property
attached with the decree-holder or otherwise. If the Sale Officer requires the
decree-holder to undertake the custody of the property he shall be bound to do
so and any loss incurred owing to his negligence shall be made good by the
decree-holder. If the attached property is livestock, the decree-holder shall
be responsible for providing the necessary food therefore. The Sale Officer
may, at the instance of the defaulter or of any person claiming and interested
in such property leave it in the village or place where it was attached in the
charge of such defaulter or person, if he enters into a bond in the form
specified by the Registrar with one or more sufficient sureties for the production
of the property when called for. (d) The
distress shall be made after sunrise and before sunset and not at any other
time. (e) The distress
levied shall not be excessive that is to say, the property distained shall be
as nearly as possible proportionate to the sum due [39] [from
the defaulter together with interest and all expenses incidental to the
distrait detention and sale. (f) If crops
or un gathered products of the land belonging to a defaulter are attached, the
Sale Officer may cause them to be sold when fit for reaping or gathering, or at
his option may cause them to be reaped or gathered in due season and stored in
proper place until sold. In the latter case the expenses of reaping or
gathering and strong such crops or products shall be defrayed by the owner upon
his redeeming the property or from the proceeds of the sale in the event of its
being sold. (g) The Sale
Officer shall not work the bullocks or cattle or make use of goods or effects
distained and he shall provide the necessary food for the cattle or livestock,
the expenses attending Which shall be defrayed by the owner upon his redeeming
the property or from the proceeds of the sale in the event of its being sold. (h) It shall
be lawful for the Sale Officer to force open any stable, cow house, granary,
god own, out-house, or other building and he may also enter any dwelling house,
the outer-door of which may be open and may break upon the door of any room in
such dwelling house for the purpose of attaching property belonging to a
defaulter and lodged herein; provided always that it shall not be lawful for
the officer to break open or enter apartment in such dwelling house
appropriated for the zenana or residence of women except as hereinafter
provided. (i) Where the
Sale Officer may have reason to suppose that the property of a defaulter is
lodged within a dwelling house the outer door of which may be shut or within
any apartments appropriated to women, which by custom or usage are considered
private, the Sale Officer shall represent the fact to the Officer In-charge of
the nearest police station. On such representation, the officer in charge of
the said station shall send a police officer to the spot in the presence of
whom the Sale Officer may force open the other door of such dwelling house in
like manner as he may break open the door of any room within the house except
the zenana. The Sale Officer may also in the presence of a police officer after
due notice is given for the removal of women within a zenana and after
furnishing means for their removal in a suitable manner if they be women of
rank, who, according to the custom or usage, cannot appear in public, enter the
zenana apartments for the purpose of distaining the defaulter's property, if
any deposited therein, but such property, if found, shall be immediately
removed from [40] [such
apartments, after which they shall be left free to the former occupants. (j) The Sale
Officer shall on the day previous to and on the day of sale cause proclamation
of the time and place of the intended sale to be made by beat of drum in the
village or locality in which the defaulter resides and in such other place or
places as the officer may consider necessary to give due publicity to the sale.
No sale shall take place until after the expiration of the period of fifteen
days from the date on which the sale notice has been served or affixed in the
manner prescribed in clause (a), provided that where the property seized is
subject to speedy and natural decay, or, where the expense of keeping it in
custody is likely to be exceeded its value, the Sale Officer may sell it at any
time before the expiry of the said period of fifteen days unless the amount due
is sooner paid. (k) At the
appointed time the property shall be put up in one or more lots, as the Sale
Officer may consider advisable and shall be disposed of to the highest bidder: Provided that it shall be open to
the Sale Officer to decline to accept the highest bid where the price offered
appears to be unduly low or for other reasons [41] [to
be recorded in writing. Where the property is sold for more than the amount
due, the excess amount, after deducting the interest and the expenses of
process and the other charges, shall be paid to the defaulter : Provided further, that the
Recovery Officer or the Sale Officer may, in his discretion, adjourn the sale
of a specified day and hour recording his reasons for such adjournment. Where a
sale is so adjourned for a longer period than seven days, a fresh proclamation
under clause (i) shall be made unless the judgment-debtor consents to waive it. (l) The
property shall be paid for in cash at the time of sale of or as soon thereafter
as the officer holding the sale shall appoint and the purchaser shall not be
permitted to carry away any part of the property until he has paid for it in
full. Where the purchaser may fail in the payment of purchase money, the
property shall be resold. (m) Where it
is proved to the satisfaction of any civil court of competent jurisdiction that
any property which has been distrained under these rules has been forcibly or
clandestinely removed by any person, the court may order forthwith such
property to be restored to the Sale Officer. (n) Where prior
to the day fixed for sale, the defaulter or any person acting on his behalf or
any person claiming an interest in the property attached, pays the full amount
due including interest, batta and other costs incurred in attaching the
property, the Sale Officer shall cancel the order of attachment and release the
property forthwith. (o) The
movable properties mentioned as exempt from attachment in the proviso to
section 60 of the Code of Civil Procedure, 1908 (5 of 1908) shall not be liable
to attachment or sale under these rules. (6) Where the
movable property to be attached is the salary or allowance or wages of a public
officer or of servant of a local authority or a firm or a company or any other
institution the Recovery Officer may on receiving a report from the Sale
Officer, order that the amount shall, subject to the provisions of section 60
of Code of Civil Procedure, 1908 (5 of 1908) be withheld from such salary or
allowances or wages either in one payment or by monthly installments as the
said Recovery Officer may direct and upon notice of the order the officer or
other person whose duty it is to disburse such salary or allowances or wages
shall withhold and remit to the Sale Officer the amount due under the order or
the monthly installment, as the case may be. (a) Where the
property to be attached consist of the share or interest of the defaulter in
movable property belonging to him and another as co-owners, the attachment
shall be made by a notice to the defaulter, prohibiting him from transferring
the share or interest or charging it in any way. (b) Where the
property to be attached is a negotiable instrument not deposited in a court,
nor in the custody of a public officer, the attachment shall be made by actual
seizure and the instrument shall be brought to the office of the Recovery
Officer ordering the attachment and be held subject to his further orders (c) Where the
property to be attached is in the custody of any court or public officer, the
attachment shall be made by a notice to such court or officer requesting that
such property and any interest or dividend becoming payable thereon may be held
subject to the further orders of the Recovery Officer issuing the notice:- Provided that where such property
is in the custody of a Court or Recovery Officer of another district, any
question of title or priority arising between the decree holder and any other
person not being the defaulter, claiming to be interested in such property by
virtue of any assignment, attachment or otherwise shall be determined by such court
or Recovery Officer. (7) Where the
property to be attached is a decree either for the payment of money or for sale
in enforcement of a mortgage or charge, the attachment shall be made by the
order of the Registrar if the decree sought attached was passed by the
Registrar under section 56 or by an arbitrator. (8) Where the
property to be attached is a decree other than a decree of the nature referred
to in a clause (i), the attachment shall be made by the issue of a notice by
Recovery Officer to the holder of such decree, prohibiting him from
transferring or charging the same in any way. (9) The
holder of decree. attached under this sub-rule shall give the Recovery Officer
executing the decree such information and aid as may reasonably be required. (10) On the
application of the holder of a decree sought to be executed by the attachment
of another decree, the Recovery Officer making an order of attachment under
this sub-rule shall give notice of such order to the judgment-debtor bound by
the decree attached, and no payment or adjustment of the attached decree made
by the judgment-debtor in contravention of such order after receipt of notice
thereof, either through the said Recovery Officer or otherwise, shall be
recognised so long as attachment remains in force. (11) Where the
movable property to be attached is:? (a) a debt
due to the defaulter in question; (b) a share
in the capital of a corporation or a deposit invested therein; or (c) other
movable property not in the possession of the defaulter except property
deposited in or in the custody of, any civil court, the attachment shall be
made by a written order signed by the Recovery Officer prohibiting:- (1) in case
of a debt, the creditor from recovering the debt and the debtor from making
payment thereof; (2) in the
case of a share or deposit the person in whose name the share or the deposit
may be standing, from transferring the share or deposit or receiving any
dividend or interest thereon; and (3) in the
case of any other movable property except aforesaid the person in possession of
it from giving it over to the defaulter. (4) A copy of
such order shall be sent in the case to the debt to the debtor, and in the case
of the share or the deposit to the proper officer of the corporation and in the
case of the other movable property except as aforesaid to the person in
possession of such property. As soon as the debt referred to in clause (a) or
the deposit referred to in clause (b) above matures, the Recovery Officer may
direct the person concerned to pay the amount to him. Where the share is not withdraw
able, the said Recovery Officer shall arrange for its sale through a broker.
Where the share is withdraw able, its value shall be paid to said Recovery
Officer or to the party referred to in clause (c), the person concerned shall
place it in the hands of the said Recovery Officer as it becomes deliverable to
the defaulter. (12) Immovable
property shall not be sold in execution of a decree unless such property has
been previously attached: Provided that where the decree
has been obtained on the basis of a mortgage of such property, it shall not be
necessary to attach it. (13) In the
attachment and sale without attachment of immovable property the following
procedure shall be observed:? (a) The
application presented under sub-rule (3) shall contain a description of the
immovable property to be proceeded against, suffocation for its identification
and in case such property can be identified by boundaries or numbers in a
record of settlement or survey, the specification of such boundaries or numbers
and the specification of the defaulter's share on interest in such property to
the best of the belief of the decree-holder and so far as he has been able to
ascertain it. (b) The
demand notice issued by the Recovery Officer under sub-rule (3) shall contain
the name of the defaulter, the amount due, including the expenses, if any, the
time allowed for payment and in case of non-payment the particular of the
properties to be attached and sold or to be sold amount attachment, as the case
may be. After receiving the demand notice, the Sale Office shall serve the
cause to be served a copy or the demand notice upon the defaulter or upon some
adult male member of his family at his usual place of residence, or upon his
authorised agent or, if such personal service is not possible shall affix a
copy thereof on some conspicuous part of the immovable property about to be
attached and sold or sold without attachment as the case may be: Provided that where the Recovery
Officer is satisfied that a defaulter with intent to defeat or delay the execution
proceedings against him is about to dispose of the whole or any part of his
property the demand notice issued by the Recovery Officer under sub-rule (3)
shall not allow any time to the defaulter for payment of the amount due by him
and the property of the defaulter shall be attached forthwith. (c) If the
defaulter fails to pay the amount specified in the demand notice within the
time allowed, the Sale Officer shall proceed to attach and sell, or sell
without [42] [attachment, as the
case may be, the immovable property noted in the application for execution in
the manner specified below. (d) Where
attachment is required before sale, the Sale Officer shall, possible, cause a
notice of attachment be served on the defaulter personally. Where personal
service is not possible, the notice shall be affixed in some conspicuous part
of the defaulter's last known residence, if any. The fact of attachment shall
also be proclaimed by the beat of drum or other customary mode at some place on
or adjacent to such property and at such other place or places as the Recovery
Officer may consider necessary to give due publicity to the sale. The
attachment notice shall set forth that, unless the amount due with interest and
expenses be paid within the date therein mentioned, the property will be
brought to sale. A copy shall be sent to the decree-holder. Where the Sale
Officer so directs the attachment shall also be notified by public proclamation
in the official Gazette. (e) Proclamation
of sale shall be published by affixing a notice in the office of the Recovery
Officer and the Tehsil Office at least thirty days before the date fixed for
the sale and also by beat of drum in the village or locality on two consecutive
days previous to the date of sale and on the day of sale prior to the
commencement of the sale. Such proclamation shall, where attachment is required
before sale, be made after the attachment has been effected. Notice shall also
be given to the decree-holder and the defaulter. The proclamation shall state
the time and place of sale and specify as fully and accurately as possible:- (1) the
property to be sold, (2) an
encumbrance to which the property is liable. (3) the
amount for the recovery of which sale is ordered, and (4) every
other matter which the Sale Officer considers material for a purchaser to know
in order to judge the nature and value of the property. (f) When any
immovable property is sold under these rules, the sale shall be subject to the
prior encumbrances on the property, if any. The decree-holder shall, when the
amount for realisation of which the sale is held exceeds Rs.100, furnish to the
Sale Officer within such time as may be fixed by him or by the. Recovery
Officer, an encumbrance certificate from the Registration Department for the
period of not less than twelve years prior to the date of attachment of the
property sought to be sold, or in cases falling under the proviso to sub-rule
(10), prior to the date of the application for execution. The time for
production of the encumbrance certificate may be extended at the discretion of
the Sale Officer or the Recovery Officer, as the case may be. The sale shall be
by public auction to the highest bidder, provided that it shall be open to the
Sale officer to decline to accept the highest bid where the price offered
appears to be unduly low or for other reasons [43] [to
be recorded in writing and provided also that the Recovery Officer or the Sale
Officer may, in his discretion, adjourn the sale to a specified day and hour,
recording his reason for such adjournment. Where a sale is so adjourned for a
longer period than seven days, a fresh proclamation under clause (e) shall be
made, unless the judgment-debtor contents to waive it. The sale shall be held
after the expiry of not less than thirty days calculated from the date on which
notice of the proclamation was affixed in the office of Recovery Officer. The
time and place of sale shall be fixed by the Recovery Officer and the place of
sale, shall be the village or locality where the property to be sold is
situated or such adjoining prominent place of public resort as may be fixed by
the said Recovery Officer : Provided that, in cases where an
encumbrance certificate is not obtainable owing to the destruction of the
connected records, an affidavit from the village Patwari in regard to the
encumbrances known to him supported by a certificate from the Registration
Department that the encumbrance certificate cannot be granted owing to the
destruction of the connected records, shall be accepted in the place of an
encumbrance certificate. (g) A sum of
money equal to 15 per cent of the price of the immovable property shall be
deposited by the purchase in the hands of the Sale Officer at the time of the
purchase, and in default of such deposit, the property shall forthwith be
re-sold: Provided that, where the
decree-holder is the purchaser and is entitled to set off the purchase money
under clause (k), the Sale Officer shall dispense with the requirements of this
rule. (h) The
reminder of the purchase money and the amount required for the general stamp
for the sale certificate shall be paid within fifteen days from the date of
sale: Provided that, the time for
payment of the cost of the stamp may, for good and sufficient[44] [reasons
to be recorded in writing, be extended at the discretion of the Recovery
Officer upto thirty days from the date of sale: Provided further, that in
calculating the amounts to be paid under this clause, the purchaser shall have
the advantage of any set-off to which he may be entitled under clause (k). (i) In
default of payment within the period mentioned in the last preceding clause,
the deposit may, if the Recovery Officer thinking fit after defraying the
expenses of the sale be forfeited to the Government and the defaulting
purchaser shall forfeit all claims to the property or to any part of the sum
for which it may subsequently be sold. (j) Every
resale of immovable property in default of payment of the amounts mentioned in
clause (h) within the period allowed for such payment, shall be made after the
issue of a fresh proclamation in the manner and for the period herein-before
prescribed for the sale. (k) Where a
decree-holder purchases the property the purchase money and the amount due on
the decree shall be set off against one another and the Sale Officer shall
enter [45] [satisfaction of the decree
in whole or in part accordingly. (14) Where
prior to the date fixed for a sale, the defaulter or any person acting on his
behalf or any person claiming interest in the property sought to be sold
tenders payment of the full amount due together with interest, traveling and
other expenses incurred in bringing the property to sale including the expenses
of attachment, if any, the Sale Officer shall forthwith release the
property [46]after canceling the order of
an attachment where the property has been attached. (15) Where
immovable property has been sold by the Sale Officer, any person, either owing
such property or holding an interest therein by virtue of a title acquired
before such sale may apply to have the sale set aside on his depositing with
the Recovery Officer. (1) for
payment to the purchaser a sum equal to five per cent of the purchase money,
and (2) for
payment to the decree-holder, the amount of arrears specified in the
proclamation of sale[47]or
the recovery of which the sale was ordered together with interest thereon and
the expenses of attachment, of any, and sale and other costs due in respect of
such amount less amount which may since the date of such amount proclamation
have been received by decree- holder. (3) If such
deposit and[48] [application are made within
thirty days from the date of sale, the Recovery Officer shall pass an order
setting aside the sale and shall repay to the purchaser the purchase money so[49] far
deposited together with the five per cent deposited by the applicant. Provided that if more persons
than one have made deposits and applications under this sub-rule, the
application of the first depositor to the officer authorised to set aside the
sale shall be accepted. (4) If a
person applied under sub-rule (14) to set aside the sale of immovable property,
he shall not be entitled to make an application under this sub-rule. (16) [50]At any
time within thirty days from the date of the sale of immovable property, the
decree-holder or any person entitled to a share in ratable distribution of the
assets or whose interests are affected by the sale, may apply to the Recovery
Officer to set aside the sale on the ground of illegality, material
irregularity, mistake or fraud in publishing or conducting it : Provided that no sale shall be
set aside on the ground of illegality, irregularity, mistake or fraud unless
the Recovery Officer is satisfied that the applicant has sustained substantial
injury by reason of such illegality, irregularity, mistake or fraud. (a) If the
application be allowed, the said Recovery Officer shall set aside the sale and
may direct a fresh one. (b) On the
expiration of thirty days from the date of sale, if no application to have the
sale set aside is made or if such application has been made and rejected, the
said Recovery Officer shall make an order confirming the sale: "Provided that, if he has
reason to believe that the sale out to better side notwithstanding that no such
application has been made or on grounds other than those alleged in any
application which has been made and rejected, he may after recording his
reasons, in writing, set aside the sale. (c) Whenever
the sale of any immovable property is not so confirmed or is set aside, the
deposit or the purchase money as the case may be, shall be returned to the purchaser. (d) After the
confirmation of any such sale, the said Recovery Officer shall grant a
certificate of sale bearing his seal and signature to the purchaser, and such
certificate shall state the property sold and the name of the purchaser and it
shall be conclusive evidence of the fact of the purchase in all courts and
tribunals, where it may be necessary to prove it and no proof of the seal or
signature of the Recovery Officer shall be necessary unless the authority
before whom it is produced has reason to doubt its genuineness. (17) Where any
lawful purchaser or immovable property is resisted and prevented by any person
other than a person not being the defaulter) claiming in good faith to be in
possession of the property on his own account from obtaining possession of the
immovable property purchased, any court of competent jurisdiction on
application and production of the certificate of sale provided for by sub-rule
(14) shall cause the proper process to be issued for the purpose of putting such
purchaser in possession in the same manner as if the immovable property
purchased had been decreed to the purchaser by a decision of the court. (18) It shall
be lawful for the Sale Officer to sell the whole or any portion of the
immovable property of a defaulter in discharge of money due: Provided always that, so far as
may be practicable, no larger section or portion of immovable property shall be
sold than may be sufficient to discharge the amount due with interest and
expenses, if any, of attachment and sale. (19) Where an
attachment has been made under these rules, any private transfer or delivery of
the property attached or of any interest therein and any payment to the
defaulter of any debt dividend or other moneys contrary to such attachment
shall be void as against all claims enforceable under the attachment. Explanation.- For the purpose of
this sub-rule, claims enforceable under an attachment include claims for the
ratable distribution of assets under sub- rule (24) (20) Persons
employed in serving notice or in other process under these rules shall be
entitled to traveling allowance at such rates as may from time to time be fixed
by the Recovery Officer. (21)
Where the cost and charges incurred in connection with attachment
and sale 'of movable property or the attachment and sale or sale without
attachment or immovable property under this rule, exceeds the amount of the
cost deposited by the decree-holder, such excess shall be deducted from the
sale proceeds of the property sold or the moneys paid by the defaulters as the
case may be, and the balance shall be made available to the decree-holder. (22) Every
person making a payment towards any money due for the recovery of which
application has been made under[51]this
rule shall be entitled to a receipt for the amount signed by the Sale Officer
or other officer empowered by the Recovery Officer in that be half,
such receipt shall state the name of the person making the payment and
subject-matter in respect of which the payment is made. (a) Where any
claim is preferred to, or any objection is made of the attachment of any
property attached under this rule on the ground that such property is not
liable to such attachment the Sale Officer shall investigate the claim or
objection and dispose of it on merits: Provided that no such
investigation shall be made when the Sale Officer considers that the claim or
objection is frivolous. (b) Where the
property to which claim or objection relates has been advertised for sale, the
Sale Officer may postpone the sale pending the investigation of the claim or
objection. (c) Where a
claim or an objection is preferred, the party against whom an order is made may
institute a suit within six months from the date of the order to establish the
right which he claim to the property in dispute but subject to the result of
such 13 suit,
if any, the order shall be conclusive. (23) Any
deficiency of price which may happen on a re-sale held under Clause (j) of
sub-rule (11) by reason of the purchaser's default, and all expenses [52] incurred
on such resale shall be certified by the Sale Officer to the Recovery Officer
and shall at the instance of either the decree-holder or the defaulter be
recoverable from the defaulting purchaser under the provisions of this rule.
The costs, if any, incidental to such recovery shall also be borne by
defaulting purchaser. (24) Where the
property may, on the second sale, sell for a higher price than at the first
sale, the defaulting purchaser at the first sale shall have no claim to the
difference or increase. (25) Where any
property has been attached in execution of a decree, but by reason of the
decree-holder's default the Recovery Officer is unable to proceed further with
the application for execution, he shall either dismiss the application or for
any sufficient reason adjourn the proceedings to a future date. Upon the
dismissal of such application, the attachment shall cease. (26) Where the
Sale Officer attaches or has attached, under these rules, any property not in
the custody of any Court, which is already under attachment made in execution
of a decree of any Court such court shall receive and realise such property and
shall determine claims thereto and any objections to the attachment thereof: Provided that where the property
is under attachment in the execution of decree of more courts than one, the
court which shall receive or realise such property and shall determine any
claim thereto and any objection to the attachment thereof shall be the court of
the highest grade, or where there is no difference in grade between such courts
the court under whose decree the property was first attached. (27) Where
assets are held by the Sale Officer and before the receipt of such assets
demand notices in pursuance of applications for execution of decree against the
same defaulter have been received from more than one decree-holder and the
decree-holders have not obtained satisfaction the assets after deducting the
costs of realisation shall be ratably distributed by the Sale Officer among all
such decree-holders in the manner provided in section 73 of the Code of Civil
Procedure, 1908. (28) Where a
defaulter dies before the decree has been fully satisfied and application under
sub-rule (i) may be made against the legal representative of the deceased and
thereupon all the provisions of this rule shall, save as otherwise provided in
this sub-rule, apply as if such legal representative were the defaulter. Where
the decree is executed against such legal representative, he shall be liable only to the
extent of the property of the deceased which has come to his hands and has not
been duly disposed of and for the purpose of ascertaining such liability the
Recovery Officer executing the decree may, of his own motion or on the
application of the decree-holder, compel such legal representative to produce
such accounts as he thinks fit. (29) Where in
connection with the proceedings on an application under section 68 of the Act,
any person requires the issue of any process or objects to any process issued
or objects to any order passed he shall pay such fee as may be specified by the
Registrar in this behalf. The powers of the Registrar under
section 65 shall not be exercised by an officer below the rank of Assistant
Registrar. Rule - 74. Mode of
service of summons. [Section 85 (2) (xix)].-- (1) Every
summons issued under the Act shall be in writing, shall be authenticated by the
seal, if any, of the officer by whom it is issued and shall be signed by such
Officer or by any person authorised by him in writing in that behalf. It shall
require the person summoned to appear before the said officer at a stated time
and place and shall specify whether his attendance is required for the purpose
of giving evidence, or to produce a document or for both purposes; and any
particular document the production of which is required, shall be described in
the summons with reasonable accuracy. (2) Any
person may be summoned to produce a document, without being summoned to give
evidence, and any person summoned merely to produce document shall be deemed to
have complied with the summons if he causes such document to be produced,
instead of attending personally to produce the same. (3) The
service of summons under the Act on any person may be elected in any of the
following ways:- (a) by giving
or tendering it to such person ; or (b) if such person
is not found, by leaving it at his last known place of abode or business or by
giving or tendering it to some adult member of his family; or (c) if the
address of such person is known to the Registrar or other authorised person, by
sending it to him by registered post; or (d) if none
of the means aforesaid is available, by affixing it at some conspicuous part of
his last known place of abode or business. (4) Where the
serving officer delivers or tenders copy of the summons to the defendant
personally or to an agent or other person on his behalf, he shall require the
signature of the person to whom the copy is so delivered or tendered to an
acknowledgement of service endorsed on the original summons. (5) The
serving officer shall in all cases in which the summons has been served under
sub-rule (4) endorse or annex, or cause to be endorsed or annexed, on or to the
original summons a return stating the time and the manner in which the summons
was served and the name and address of the person, if any, identifying the person
served and witnessing the delivery or tender of the summons. (6) Where the
party to be summoned is a public officer or is the servant of company or local
authority or any institution the officer issuing the summons may, if it appears
that summons may be most conveniently so served, send it by registered post
prepaid for acknowledgement for service on the party to be summoned to the head
of the office in which he is employed together with the copy to be served
endorsed on the original summons. For the purposes of section 68,
no appeal shall be entertained unless it is accompanied by a copy of the order
appealed against. The Registrar may lay down the
returns to be submitted by a Co-operative Society and provide for the persons
by whom and the form in which such returns will be submitted. If a Cooperative
Society fails to comply with the directive within a reasonable time, the
Registrar may have the returns completed at the expense of the Co-operative
Society. Any member of the public shall be
permitted, on payment of a fee of one rupee for each occasion of inspecting, to
inspect, for any lawful purpose, any public document (exclusive of public
document privileged under sections 123, 124, 128 and 131 of the Indian Evidence
Act, 1972) filed in the office of the Registrar, Co- operative Societies, and
in particular the following documents namely :? (1) The
registration register. (2) The
registration certificate of a Co-operative Society, (3) The
registered bye-laws of a Co-op. Society and amendments effected in such
bye-laws. (4) An order
canceling the registration of a Co-operative Society. (5) An order
directing the liquidation of a registered Co-operative Society. (6) The
annual accounts of the Co-operative Society. (7) Any
decision of the Registrar or award of an Arbitrator. The fees prescribed for certified
copies of any public documents, which any person has under the preceding rule a
right of inspection, are as follows :? (1) For
registration certificate. Rs. 3-00 (2) In the
case of other documents, sum calculated at the following rates:- (a) First two
hundred words or under 0-75 (b) Every
additional hundred words or fraction thereof 0-37 [53]Rule - [79. Form of order. [Section 85 (1)].-- The orders of the liquidator
under clauses (b) and (e) of sub-section (2) of section 59 shall be in the form
given in Appendix G. The Form of certificate to be
issued under sub-section (2) of section 67-A shall be in the form given in
appendix 'H'. (1)??? [55]Notwithstanding
anything contained in these rules, the procedure contained in this rule shall
apply to a co-operative society whose working capital exceeds Rs. 50,000. (1) [56]At least
fifteen days' clear notice, specifying the date, place, time and agenda for a
meeting of a general body/committee and at least seven days' clear notice for a
meeting of any smaller body set up by either of them, whether convened by the
Registrar, the President or otherwise, shall be given to all the members of the
general body/committee or smaller body, as the case may be: Provided that a shorter notice
may be given to all the members of the general body/committee or smaller body,
as the case may be, with the permission of the Registrar or under his
direction. (2) The
Registrar may, of his own motion or on a reference made to him, de-care the
proceedings of the meeting referred to in clause (i) as invalid, if he is
satisfied that the meeting was held without proper notice or without all the
members having received the notice for the meeting or if the meeting was not
conducted at the appropriate place and time; and (3) No matter
shall [57] except with the
permission or directions of the Registrar, be considered either in a meeting of
a general body/committee or in a meeting of any smaller body, set up by either
of them, unless that matter is specifically included in the agenda which is
circulated to all members at least fifteen clear days or seven days in advance,
respectively, (4) Should a
difference of opinion in respect of any matter arise between a nominated member
of the committee and other members thereof the opinion of the nominated member
shall be recorded in the minutes of the proceedings of the meeting in the words
of the nominated member and the proceedings shall also be got signed from the
nominated member. As required by sub-section (4) of section 26 the chairman
shall, as soon as possible, make a reference to the Government and if no
reference is made within seven days of the date of the meeting, the Registrar
may, on receipt of a report from a nominated member, make a reference to the
Government for getting its decision, [58] (2)?? ................. Bar on voting by Government
nominated Members on certain matters. The members nominated by the Government
to the committee of a Co-operative Society under clause (a) of sub-section (2)
of Section 26 shall not vote in the election of office-bearers of that
Co-operative Society. 80-B. The Managing Director of a
Co-operative Society shall be its Principal Executive Officer and the employees
of the Co-operative Society shall exercise their powers and perform their
duties under his superintendence and control. The Managing Director shall
exercise his powers and perform his duties under the overall supervision and
control of the Committee. Notwithstanding anything
contained in rule 80-B, when a Chairman has been appointed in pursuance of
provisory) to clause (a) of sub-section (2) of section 26 of the Act and when
such a Chairman is a member of the Indian Administrative Service, or a Joint
Registrar, or an Additional Registrar, Co-operative Societies, 2, 3 and is also
work? The Punjab Co-operative Societies
Rules, 1956, are hereby repealed: Provided that any action taken,
order issued, bye-law made under the provisions of the rules hereby repealed
shall in so far as it is not inconsistent with the provisions of these rules,
be deemed to. have been taken, issued or made under the provisions of these rules. [1] Substituted by Leg.
Sup. Part III dated 3.6.1988 for the words "30th day of June". [2] Proviso added by Pb.
Govt. Gaz. Notification dated Sept. 23, 1965, (section 2) [3] Words substituted by
Pb. Govt. Gaz. Notification dated 18-12-86 (Section 3) [4] Rule added by the Pb.
Govt. Gaz. Notification dated Oct. 14, 1969 (Section 3) [5]? Rule numbered by Pb. Govt. Gaz. Notification
dated Oct. 14, 1974 (Section 2) [6] Word substituted by
the Pb. Govt. Gaz. Notification dated Oct. 14, 1974 (Section 3) [7] Word substituted by
the Pb. Govt. Gaz. Notification dated Oct. 14, 1974 (Section 3) [8] Clause substituted by
the Pb. Govt. Gaz. Notification dated Sept. 3, 1965 (Section 2) [9] Clause (b) 1 of rule
22 omitted by Pb. Govt. Gaz. Notification dated Oct. 14, 1969 (Section 5) [10] Rule added by Pb.
Govt. Gaz. Notification dated March 4, 1971 (Section 2) [11] Words substituted by
Pb. Govt. Gaz. Notification dated 18.2.86 (Section 5 (1). [12] Clause substituted by
Pb. Govt. Gaz Notification dated Sept. 3, 1965 (Section 3) [13] Words omitted by Pb.
Govt. Gaz Notification dated Dec. 8, 1982 [(Section 2(1). [14] Words omitted by Pb.
Govt. Gaz Notification dated Dec. 8, 1982 [(Section 2(1). [15] Proviso added by Pb.
Govt. Gaz. Notification dated Feb. 20, 1986 (Section 2) [16] Words omitted by Pb.
Govt. Gaz Notification dated Dec. 8, 1982 [(Section 2(1). [17] Words substituted by
Pb. Govt. Gaz. Notification dated Feb. 18, 1986 (Section 5 (ii) [18] Rule substituted by
the Punjab Government Gazettee Notification dated Oct. 14, 1969 (Section 6) [19] Rule substituted by
Punjab Government Gazettee Notification dated October, 14, 1969 (Section 7) [20] Proviso substituted
by Pb. Govt. Gaz. Notification dated 18.2.86 (Section 6) [21] Words substituted by
Pb. Govt. Gaz Notification dated 18.2.86 (Section 7) [22] Sub rule (1) omitted
by Pb. Govt. Gaz. Notification dated Jan. 12, 1983 (Section 2) [23] Proviso to sub-rule
substituted by Pb. Govt. Gaz. Notification dated Oct. 14, 1974 (Section 4) [24]? Substituted for 10% vide Punjab Notification
dated 26.2.1993. [25]? Rule added by Pb. Govt. Gaz. Notification
dated Oct. 14, 1969 (Section 8). [26] Words substituted by
Pb. Govt. Gaz. Notification dated 18.2.86 (Section 8). [27] Words substituted by
Pb. Govt. Gaz. Notification dated Oct. l4, 1974 (Section 5) [28] Rule substituted by
Pb. Govt. Gaz. Notification dated Oct. 14, 1974 (Section 6) [29] Brackets, letters and
words substituted by Pb. Govt. Gaz. Notification dated 18.2.86 (Section 9) [30] Rule substituted by
the Pb. Govt. Gaz Notification dated 18.12.82 (section 3) [31] Words substituted by
the Pb. Govt. Gaz Notification dated 18.2.86 (section 10(i)) [32] Words substituted by
the Pb. Govt. Gaz Notification dated 18.2.86 (section 10(ii)) [33] Words substituted by
the Pb. Govt. Gaz. Notification dated 18.2.86 [(Section 11 (i) [34]? Words substituted by the Pb. Govt. Gaz.
Notification dated 18.2.86 [(Section 11 (ii) [35]? Words substituted by the Pb. Govt. Gaz.
Notification dated 18.2.86 [(Section 11 (iii) [36] Sub-rule substituted
by Pb. Govt. Gaz. Notification dated 18.216 (Section 12) [37]? Word substituted by Pb. Govt. Gaz.
Notification dated 18.2.86 (Section 13) [38]? Words substituted by Pb. Govt. Gaz.
Notification dated 18.2.86 (Section 14). [39] Word substituted by
the Pb. Govt. Gaz. Notification dated 18.2.86 [(Section 15 (a)(i)] [40] Word substituted by
Pb. Govt. Gaz. Notification dated 18.2.86 (Section 15 (a)(ii) [41] Words inserted by the
Pb. Govt. Gaz. Notification dated 14.10.74 [(Section 7)] [42] Word substituted by
Pb. Govt. Gaz. Notification dated 18:2.86 [(Section 15 (b)(i)] [43] Words inserted by the
Pb. Govt. Gaz. Notification dated 14.10.74 [(Section 7)] [44] Words substituted by
Pb. Govt. Gaz. Notification dated 18.2.86 [(Section 15 (b)(ii)] [45] Word substituted by
the Pb. Govt. Gaz. Notification dated 18.2.86 [(Section 15 (a)(i)] [46] Words substituted by
Pb. Govt. Gaz. Notification di 18.2.86 (Section 15 (c) [47] Words omitted by Pb.
Govt. Gaz. Notification dated 18.2.86 (Section 15 (d)(i) [48] Words omitted by Pb.
Govt. Gaz. Notification dated 18.2.86 [(Section 15 (d)(ii)] [49] Words substituted by
Pb. Govt. Gaz. Notification 18.2.86 [(Section 15 (d)(ii)] [50] Clause substituted by
Pb. Govt. Gaz. Notification dated 18.2.86 (Section 15 (e)(i) [51]? Words substituted by Pb. Govt. Gaz.
Notification dated 18.2.86 ((Section 15 (0] [52] Words substituted by
Pb. Govt. Gaz. Notification dated 18.2.86 [(Section 15 (h)] [53] Rules substituted by
the Punjab Govt. Gaz. Notification dated Dec 8, 1982 [(Section 4] [54]? Rules inserted by the Punjab Govt. Gaz.
Notification dated March 21, 1978 [(Section 2)] [55] Operational part of
sub-rule (1) substituted by Pb. Govt. Gaz. Not. dated March 4, 1971 (Section
3(1) [56] Clause substituted by
Pb. Govt. Gaz. Notification dated Sept. 3, 1965 [(Section 4(1)] [57] Clause substituted by
Pb. Govt. Gaz Notification dated Sept. 3, 1965 (Section 4 (2) [58] Sub-rule deleted by
the Pb. Govt. Gaz. Notification dated March 4, 1971 (Section 3(2) [59] Rule added by Pb.
Govt. Gaz. Notification dated March 4, 1971 [(Section 4)] [60] Rule added by the Pb.
Govt. Gaz. notification dated July 28, 1972 [(Section 2)]THE PUNJAB CO-OPERATIVE
SOCIETIES RULES, 1963
PREAMBLE
Rule 23-B. Election of the first committee
after Registration of the Co-operative Society. [Sections 26 (I-F) and 85
(1)].--