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The relevant application forms can
be obtained from the nearest Office of Registrar of Cooperatives |
Department of Agriculture & Co-operation
Cooperation Division
Multi-State Cooperative Societies Rules, 1985
under
Multi-State Cooperative
Societies Act,1984 (51 of 1985)
|
G.S.R.738(E)-In exercise of the powers
conferred by section 109 of the Multi-State Cooperative Societies Act 1984
(51 of 1984), the Central Government hereby make the following rules,
namely:- THE MULTI-STATE COOPERATIVE SOCIETIES RULES, 1985 CHAPTER 1 PRELIMINARY 1. Short title and commencement- (1) These rules may be called the
Multi-State Cooeprative Societies (Registration, Membership, Direction and
Management, Settlement of Disputes, Appeal and Revision)Rules, 1985 (2) Definitions- In
these rules, unless the context otherwise requires:- (i) "Act" means the Multi-State
Cooperative Societies Act, 1984 (51 of 1984). (ii) "Form" means a form appended
to these rules. (iii) "General meeting" means a
meeting of the general body including a representative general body referred
to in section 29. (iv) "Section" means a section of
the Act. (v) "Schedule" means Schedule
appended to these rules. (vi) Words and expressions defined in the
Act and used but not defined in these rules shall have the meanings
respectively assigned to them in the Act. CHAPTER II REGISTRATION 3. Application for registration- (1) An application for registration of a
multi-State cooperative society under sub-section(1) of section 6 shall be
made in Form 1 and shall, subject to the provisions of sub-section (2) of
section 6 and sub-rules (2)and (3) be signed by the applicant and be
accompanied by: (a) four copies of the proposed bye-laws of
the multi-State cooperative society, duly signed by each of the persons who
sign the application for registration; (b) a list of persons who have contributed
to the share capital, together with the amount contributed by each of them,
and the entrance fee paid by them; (c) a certificate from the bank or banks
stating the credit balance in favour of the proposed multi-State cooperative
society; (d) a scheme showing the details explaining
how the working of the multi-State cooperative society will be economically
sound; (e) certified copy of the resolution of the
promoters which shall specify the name and address of one of the applicants
to whom the Central Registrar may address
of one of the applicants to whom the Central Registrar may address
correspondence under the rules before registration and dispatch or hand over registration documents. (2) Where any member of a multi-State
cooperative society to be registered is a multi-State cooperative society or
a cooperative society, the Chairman or Chief Executive of such multi-State
cooperative society or cooperative society, as the case may be, shall be authorised
by that board by a resolution, to sign the application for registration and
bye-laws on its behalf, and a copy of such resolution shall be appended to
the application. (3) Where any member of multi-State
cooperative society to be registered is a Government company, a corporate
body or a society registered under the Societies Registration Act, 1860(21)
of 1860 such member shall duly authorise any person to sign the application
for registration and the bye-laws on its behalf and a copy of such resolution
giving such authority shall be appended to the application. (4) A copy of the resolution indicating the
name of one or more applicants, who are authorised to make alterations or
additions to the proposed bye-laws submitted with the application, as may be
suggested by the Central Registrar, shall be submitted. (5) The application shall either be sent by
registered post or delivered by hand to the Central Registrar. 4. Registration- (1) On receipt of an application under
rule3, the Central Registrar shall enter particulars of the application in
the register of applications to be maintained in Form II, give a serial
number to the application and issue a receipt in acknowledgement
thereof. (2) If the Central Registrar is satisfied
that the proposed multi-State cooperative society has complied with the
requirements of the Act and the rules he may register the society and its
bye-laws. (3) Where the Central Registrar registers a
multi-State cooperative society, he shall issue to the said society a
certificate of registration signed by him and bearing his official seal
containing registration number and date of registration of the said society,
The Central Registrar shall also issue, alongwith the certificate of
registration, a certified copy of the Bye-laws, as approved and registered by
him, which shall be the registered bye-laws of the said society for the time
being in force. 5. Extension of period of registration
of societies and bye-laws, etc.- The
Central Government may, on the report of the Central Registrar, allow such
further period not exceeding six months for registration of- (i) the multi-State cooperative society
under proviso to sub-section(3) of section7; (ii) the amendment of bye-laws of the
multi-State cooperative society under proviso to sub-section (2) of section
9; and (iii) the amend of bye-laws extending the
jurisdiction of the cooperative society under proviso to sub-section(2) of
section 18. 6. Refusal of registration- Where
the Central Registrar refuses to register a multi-State cooperative society
under sub-section(2) of section 7, he shall communicate the order of refusal
together with reasons therefor to the person authorised under clause(e) of
sub-rule (1) of rule 3 to the said society. 7. Subject matter of bye-laws- The
multi-State cooperative society may make bye-laws in respect of the following
matters- (i) the name and registered address of
the multi-State cooperative society and its branches; (ii) the area of operation; (iii) the objects for which the multi-State
cooperative society is established and the purpose for which its funds may be
applied; (iv) the privileges, rights, duties and
liabilities of members including nominal members: Provided that the nominal members shall not be entitled
to any share in any form whatsoever
in the assets or profits of the multi-State cooperative society and shall not
have a right to vote: (vi) the consequence of default in payment
of any sum due by members; (vii) the
procedure for withdrawal, removal or expulsion of members; (viii) the manner in which and the limits upto
which the funds of the society may be raised the maximum share capital which
any member may hold and the purpose to which the funds may be utilised; (ix) the mode of appointment and removal of
the directors and other officers of the multi-State cooperative society and
the duties and powers of the board; (x) the mode of convening and conducting
annual and special meetings of the general body and of the board, issue of
notices and the business which may be transacted thereat; (xi) the
disposal of net profits; (xii) the manner of making, altering and
abrogating bye-laws; (xiii) the powers, duties and functions of the
Chairman or President and his removal on his losing support of the
majority; (xiv) the powers and duties of the Chief
Executive in addition to those mentioned in section 45; (xv) the authorisation of an officer or
officers to sign documents and to institute and defend suits and other legal
proceedings on behalf of the multi-State cooperative society; (xvi) the mode of custody and investment of
funds; (xvii) the mode of keeping the accounts; (xviii) the
strength of the board; (xix) the manner in which penalty may be levied
on a member found guilty of breach of the bye-laws; (xx) the appointment of a provisional board,
wherever necessary; (xxi) the manner of sending notices; (xxii) the formation or use of reserve
fund; (xxiii) the purpose for which surplus if any shall
be utilised in the event of the winding-up of the multi-State cooperative
society; (xxiv) the conduct of elections to the board and
other bodies of a multi-State cooperative society including the number of
member to be elected by different constituencies and appointment of returning
officers; (xxv) the procedure to be followed in cases of
withdrawal, ineligibility and death of members; (xxvi) the condition, if any, under which the
transfer of share or interest of a member may be permitted; (xxvii) the method of appropriating payments made by
members from whom money are due; (xxviii) the constitution and maintenance of various
funds to be maintained under the provisions of the Act or rules; (xxix) the constitution of a representative
general body consisting of delegates or members of the multi-State
cooperative society and the method of election of such delegates to exercise
the powers of the general body; (xxx) the mode of conducting business such as
manufacture, purchase, stock taking and other allied matters; (xxxi) In the case of cooperative banks and
multi-State thrift and credit societies; (a) the maximum loan admissible per member; (b) the maximum rate of interest on loans
to members; (c) the
conditions on which loans may be granted to members; (d) the procedure for grant of loans and
advances and for the grant of extension of time and for repayment of such
loans, advances, etc; (e) the circumstances under which a loan
may be recalled. 8. Amendment of bye-laws- (1) the amendment to the bye-laws of a
multi-State cooperative society may be made by a resolution passed by a
two-third majority of the members present and voting at general meeting of
the society. (2) No such resolution shall be valid
unless notice of the proposed amendment has been given to the members of the
multi-State cooperative society in accordance with the bye-laws. (3) In every case in which a multi-State
cooperative society proposes to amend its bye-laws, an application shall be
made to the Central Registrar together with: (a) a
copy of the resolution referred to in sub-rule(1) (b) the particulars indicating the date of
the general meeting at which the amendments were made, the number of days
notice given to convene the general meeting, the total number of members on
the date of such meeting, the number forming the quorum, the number of
members present at the meeting, the number exercising the right of voting and
the number voting for the amendment; (c) a copy of the relevant bye-laws in
force with the amendment proposed to be made together with reasons justifying
such amendments (d) four copies of the text of the bye-laws
as they would stand after the amendment, signed by the officers duly
authorised in this behalf by the board of the multi-State cooperative
society; (e) a copy of the notice given to the
members of the multi-State cooperative society and the proposal to amend the
bye-laws; (f) a certificate signed by the presiding
authority of the general meeting that the procedure specified in sub-rule,(I)
and sub-rule(2)and in the bye-laws, has been followed; and (g) any other particulars that may be
required by the Central Registrar in this behalf. (4) Every such application shall be made
within sixty days from the date of the general meeting at which such amendment
was passed. (5) Where the Central Registrar refuses to
register an amendment of the bye-laws of a multi-State cooperative society he
shall pass an order of refusal together with the reasons there for and
communicate the same by registered post to the Chief Executive of the
multi-State cooperative society within seven days from the date of order of
refusal. (6) The procedure outlined above in this
rule shall apply to the amendment of the bye-laws of cooperative society
desiring to convert itself into a multi-State cooperative society as per
provisions of section 18. 9. Maintenance of registration file by
the society- (1) Every multi-State cooperative society
shall maintain at its registered address a registration file
containing: (a) the certificate of registration; (b) the registered bye-laws; (c) all registered amendments to the
bye-laws alongwith the certificates of registration of amendments; (d) a copy of the Act and the rules. (2) The registration file shall be kept
open for inspection at all times during working hours to the Central
Registrar or any other officer authorised by him or any member of the
multi-State cooperative society. 10. Change in name of multi-State
cooperative society- (1) The name of a multi-State cooperative society
may be changed under section 11 so, however,
that it does not refer to any caste of religious denomination and
is not inconsistent with the objects of the multi-State cooperative
society. (2) Every change in the name of the
multi-State cooperative society shall be made by an amendment of its
bye-laws.
(3) After the change in the name
is approved by the Central Registrar the multi-State cooperative society
shall send the original registration certificate for amendment to the Central
Registrar who shall return the same to the multi-State cooperative society
duly amended. CHAPTER III MEMBERS OF MULTI-STATE
COOPERATIVE SOCIETIESAND THEIR RIGHTS AND LIABILITIES 11. Conditions to be complied with for
admission for membership- (1) No person shall be admitted as a member
of a multi-State cooperative society unless: (a) he has applied in writing in the form,
if any, laid down by the multi-State cooperative society or in the form
specified by the Central Registrar, if any, for membership; (b) his application is approved by the
board of the multi-State cooperative society; (c) he has purchased the minimum number of
shares and paid the value thereof in full or in part in such calls as may be
laid down in the bye-laws of the multi-State cooperative society; (d) he has fulfilled all other conditions
laid down in the Act, the rules and the bye-laws; (e) in the case of a multi-State
cooperative society or a cooperative society or the national cooperative
society or any other corporation owned or controlled by the Government or any
Government or any Government company or body of persons whether incorporated
or not, the application for membership shall be accompanied by a resolution
authorising it to apply for such membership. (2) No person shall be eligible for
admission as a member of a multi-State cooperative society if he: (a) has not attained the age of 18
years; (b) has been adjudged by a competent court
to be an insolvent or an undischarged insolvent; (c)
has been sentenced for any offence, other then offence of a political
character or an offence not involving moral turpitude and dishonesty and a
period of five years has not elapsed from the date of expiry of the
sentence. (3) Notwithstanding
anything contained in these rules or the bye-laws of the multi-State
cooperative society, if a member becomes or has already become subject to any
disqualifications specified in sub-rule (2) he shall be deemed to have ceased
to be a member of the society from the date when the disqualification was
incurred. (4) No
individual being a member of a primary level multi-State cooperative society
or a multi-State credit society, or a multi-State urban cooperative bank,
shall be the member of any other multi-State cooperative society or
cooperative society of the same class without the general or special
permission of the Central Registrar and where an individual has become a
member of two such cooperative societies aforesaid, than either or both of
the societies shall be bound to remove him from membership on written
requisition from the Central Registrar to that effect. (5) No
multi-State cooperative society shall admit members within thirty days prior
to the date of the meeting of its general body. 12. Individual members in the National
Cooperative Union of India- The
ex-presidents of the National Cooperative Union of India Limited, New Delhi
who have served their full term of office and other individuals not exceeding
15 in number with the knowledge and experience in the field of cooperation
may be admitted as members of the National Cooperative Union of India
Limited, New Delhi, provided that: The
ex-President and other individuals admitted as members shall not be eligible
to vote or contest in any election in the National Cooperative Union of India
Limited. 13. Refund of shares- The
total refund of share capital of a multi-State cooperative society in any
cooperative year shall not exceed 10 per cent of the paid-up share capital of
the multi-State cooperative society on the last day of the cooperative year
immediately preceding. 14. Nomination of heir- (1) For the purpose of transfer of his
share or interest under sub-section (1) of section 27, a member of a
multi-State cooperative society may nominate a person to whom in the event of
his death, his share or interest shall be transferred. Such member may, from time to time, revoke
or vary such nomination. (2) A nomination made by a member shall not
be valid and shall not in the event of death of the member have effect
unless: (a) it is made in writing and is signed by
the member in the presence of two witnesses attesting the same; (b) it is recorded in the books of
multi-State cooperative society, kept for the purpose. 15. Procedure of ascertaining the value of
share or interest of a member- Where
the member of a multi-State cooperative society ceases to be a member
thereof, the sum representing the value of his share or interest in the
capital of the multi-State cooperative society to be paid to him or his nominee,
or heir or legal representative, as the case may be shall be ascertained in
the following manner, namely: (i) In the case of a multi-State
cooperative society with unlimited liability, it shall be the actual amount
received by the multi-State cooperative society in respect of such share or
interest; (ii) In the case of a multi-State
cooperative society with limited liability, it shall be the amount arrived at
by the valuation based on the financial position of such society as shown in
the last audited balance sheet preceding cessation of membership; Provided
that the amount so ascertained shall not exceed the actual amount received by
the multi-State cooperative society in respect of such share or interest. 16. Restriction on holding of shares- No member referred to in clauses
(a)and (b) of sub-section 1 of section 19 shall hold more than one-fifth of
the share capital of the multi-State cooperative society or have or claim any
interest in the shares of the multi-State cooperative society exceeding ten
thousand rupees, whichever is less. 17. Share not to be hypothecated- The shares of a
multi-State cooperative society shall not be hypothecated to that society or
any other multi-State cooperative society by the members as a security for a
loan. 18. Prohibition
on admission of members and transfer of shares on the eve of general
meeting- (1) No multi-State cooperative society
shall admit members or approve the transfer of shares within thirty days
prior to the date fixed for the general body meeting. (2) Any person addressed as member and any
person in whose favour the transfer of share have been approved in
contravention of this rule shall not have the right to vote at the said
general meeting. 19. Disqualification of a defaulting
member- A
member of a multi-State cooperative society or a representative of defaulting
member society shall not be eligible to seek election to any office in, or
continue, as a member of the board of such multi-State cooperative society if
he or the society of which he is the representative, commits default in the
payment of annual subscription or other sums due to such multi-State
cooperative society. A member, or a
representative of a defaulting member society, if holding any office in a
multi-State cooperative society, shall forfeit the right to hold such office
with effect from the date on which he, or the society of which he is the
representative, becomes defaulter as per bye-laws of the multi-State
cooperative society or as determined by the board of directors of the
multi-State cooperative society. CHAPTER IV DIRECTION AND MANAGEMENT OF MULTI-STATE COOPERATIVE SOCIETIES 20. Annual general meeting- Every
multi-State cooperative society shall hold the annual general meeting of its
members(referred to in section 30) within six months of the close of the
cooperative year. 21. Constitution of smaller general body- (1) Without prejudice to the provision of
sub-section (3) of section 29, a multi-State cooperative society with a
membership exceeding one thousand may provide in its bye-laws for the
constitution of a smaller body. The
smaller general body so constituted shall exercise such powers as may be
specified in the bye-laws of the multi-State cooperative society. (2) The bye-laws of such society may
specify the principle or the basis for constitution of a representative
general body and procedures thereto. 22. Interim board and general meeting for
first election- (1) The board of directors selected by the
applicants for the registration of the multi-State cooperative society shall
hold office till the directors are elected in the first general meeting of
the multi-State cooperative society. (2) The first general meeting for this
purpose shall be held with six months of the registration of the multi-State
cooperative society. 23. Notice for general meeting- Annual
general meeting of a multi-State cooperative society may be called by giving
not less than fourteen days notice in writing. (2) Special general meeting of a
multi-State cooperative society may be called by giving not less than seven
days notice in writing. (3) When a general meeting is called by the
Central Registrar under the second proviso to sub section (1) of section 30,
he may determine:- (i) the period of notice of such meeting
which shall not be less than seven days; (ii) the time and place of such meeting and (iii) the
subjects to be considered in such meeting. The
Central Registrar or any person authorised by him may preside over such
meeting. (4) The notice of general meeting shall be accompanied by a copy each
of the audited balance sheet, profit and loss account, together with the
auditor’s report thereon relating to the proceeding year and the report of
the board. 24. Quorum at a general meeting- (1) Unless otherwise provided in the
bye-laws, the quorum for a general meeting shall be one-fifth of the total
number of members of the multi-State cooperative society. (2) No business shall be transacted at any
general meeting unless there is a quorum at the time when the business of the
meeting is due to commence. (3) If within half-an hour from the time
appointed for the meeting a quorum is not present, the meeting shall stand
adjourned: Provided
that a meeting which has been called on requisition of the members shall not
be adjourned but dissolved. (4) If at any time during the meeting
sufficient number of members are not present to form the quorum the Chairman
or the member presiding over the meeting on his own, or on his attention
being drawn to this fact, shall adjourn the meeting and the business that
remains to be transacted at this meeting, if any, shall be disposed of in the
usual manner at the adjourned meeting. (5) Where a meeting is adjourned under
sub-rule (3) or sub-rule (4) the adjourned meeting shall be held either on
the same day or on such date, time and place as may be decided by the
Chairman or the member presiding over the meeting. (6) No business shall be transacted at any
adjourned meeting other than the business on the agenda of the adjourned
meeting. (7) No quorum shall be necessary in respect
of an adjourned general meeting. 25. Voting in general meeting- (1) All resolutions which are put to vote
at the general meeting shall be decided by a majority of the members present
and voting unless otherwise required under the Act, these rules or the
bye-laws of the multi-State cooperative society. Voting shall be by show of hands unless a
poll is demanded by atleast ten members present at the meeting. If no poll is demanded, a declaration by
the Chairman/President of such meeting that a resolution has been carried or
lost and an entry to that effect in the minutes of the proceedings shall be
conclusive proof of the fact that such resolution has been duly carried or
lost. (2) If a poll is demanded, the votes shall
be taken by ballot as may be decided by the Chairman of the meeting unless
otherwise specified in the bye-laws in this behalf, and the result of the
poll shall be deemed to be the decision of the general meeting regarding the
resolution over which the poll is demanded. (3) When a poll is taken, the number of
members voting for or against a resolution over which the poll is
demanded. (3) When a poll is taken, the number of
members voting for or against a resolution shall be recorded in the minutes
of the proceedings. (4) In the case of equality of votes
whether on a show of hands or on a poll, the Chairman of the meeting at which
show of hands takes place or the poll is taken, shall have a second or
casting vote. 26. Minutes of the general meeting- Minutes
of the proceedings of the general meeting shall be entered in a minutes book
kept for the purpose and shall be signed by the Chairman of the meeting. The minutes so signed, shall be an evidence
of the correct proceedings of that meeting. 27. Procedure for conduct of
elections- (1) Notwithstanding anything contained in
these rules and without prejudice to the generality of the powers of the
Central Government under sub-section (1)of section 35, the election of the
members of the board of directors of the national cooperative society
specified in the Second Schedule to the Act and such other multi-State
cooperative society or class of multi-State cooperative societies as the
Central Government may, by general or special order, notify, shall be
conducted by such returning officer or officers as may be appointed by the
Central Registrar in this behalf. The
election in such societies shall be conducted in the manner specified in the
Schedule. (2) Notwithstanding anything contained in
sub-rule(1) where a requisition to appoint a returning officer to conduct an
election is received from not less than 1/5 of the total number of members
eligible to vote in a multi-State cooperative society sixty days in advance
of the date for election, the Central Registrar shall appoint a returning
officer to conduct election in the manner specified in the Schedule. 28. Election of office bearers- As
soon as the members of the board have been elected the returning officer
referred to in sub-rule(1) of rule 27 or the person presiding over the
general meeting, as the case may be, shall, notwithstanding anything
contained in the bye-laws of the multi-State cooperative society specifying
the period of notice, convene a meeting of the newly elected members of the
board for the purpose of election of the President/Chairman,
Vice-President/Vice-Chairman or other elected office-bearers of the society,
by whatever name they are called. Such
a meeting of the board shall not be conducted unless a majority of the number
of members of the newly constituted board, as per bye-laws, are present. 29. Custody of record of election
conducted- After
declaration of the result of election, the returning officer, (referred to
under sub-rule(1) of rule 27 or the Chairman of the meeting, as the case may
be shall handover the ballot papers and records, if any, relating to the
election of the members of the board of directors and the office bearers to
the Chief Executive of the
multi-State cooperative society in sealed cover. They shall be preserved by the Chief
Executive of the society for a period of six months from the date of election
or till such time a dispute or an appeal thereof regarding elections, if any,
is disposed of, whichever is later, and shall thereafter be destroyed. 30. Restrictions and Conditions for payment
of honorarium to the Chairman and the President. A
multi-State cooperative society may provide in its bye-laws for the payment
of honorarium to the elected Chairman or President of the board of directors,
out of profits, in respect of specific services rendered by him, on such
scale as may be laid-down in the bye-laws of such a society, but in no case
exceeding the limit and terms and conditions hereunder referred to: (a) that the society’s financial position
is sound; (b) that for its recurring expenses it does
not depend on grants or subsidies from the Central Government or the State
Government; and (c) that the honorarium to be paid,
whether as a consolidated amount or in the shape of daily allowance in
respect of the days of halt at the headquarters, in addition to the sitting
fees in respect of board meeting as and when such meetings are held, is
limited to rupees twenty-five thousands per year. 31. Central Government or State Government
nominees on the board- (1) Where the Central Government or the
State Government has subscribed to the share capital of a multi-State
cooperative society, or has guaranteed the repayment of principal and payment
of interest on debentures issued by such society, or has guaranteed the
repayment of principal and payment of interest on loans and advances to such
society, or has provided grant or subsidy to such society, the Central
Government or the State government as the case may be, or any other person
authorised by the Central Government or the State Government, shall have the
right to nominate on the board such number of persons not exceeding 3 or
1/3rd of the total number of members thereof, whichever is less. (2) Notwithstanding
anything contained in these rules, the bye-laws of a multi-State cooperative
society may provide for the nomination by the Central or State Government of
persons in excess of the limits referred to in sub-rule (1). 32. Additional measures and acts to be
undertaken by the board- The
board may take any of the measures or do any of the acts mentioned below as
may be necessary or expedient for the purposes of carrying out its functions
under the Act and the rules made thereunder: (i) placing be fore the general body the
annual report and the audit report; (ii) Recommending the distribution of
profits to the general body; (iii) taking decisions on matters relating to
withdrawals, transfer, retirement, refund or forfeiture of shares; (iv) purchasing, selling, or otherwise
acquiring or disposing of moveable property of such value as may be specified
in the bye-laws; (v) Laying down criteria for determining
defaults by members; (vi) determining the terms and conditions of
collaboration with other cooperative societies and others; (vii) sanctioning of contracts of any values,
unless otherwise specified in the bye-laws of a multi-State cooperative
society; (viii) appointment of trustee or trustees,
attorney or attorneys, agent or agents for the business of the multi-State
cooperative society; (ix) acceptance or rejection of resignation
from the members of the board. 33. Meetings of the board- (1) The board shall meet at least once in
every quarter, provided that the total number of the meetings of the board
shall not ordinarily exceed six in a year. Provided
further that this provision will not apply to multi-State thrift and credit
societies. (2) The meeting of the board of the
multi-State cooperative society shall ordinarily be held at the registered
office of such society. 34. Committees of the board- (1) The board of a multi-State cooperative
society may constitute an Executive Committees and other committees or
sub-committee as may be considered necessary. (2) Besides
the Executive Committee, the number of other committees or sub-committees
referred to in subsection (1) of section 46 shall not exceed two: Provided
that the board may with the approval of the Central Registrar constitute more
than two committees. 35. Constitution of National Cooperative
Societies Selection Committee- (1) The Central Government shall constitute
a body to be called the National Cooperative Societies Selection Committee
(hereinafter referred to as the Selection Committee) consisting of the
following persons: (i) The Secretary to the
Government of India Department of
Agriculture and Cooperation Chairman (ii) The
Additional Secretary to the Government of India Department of
Agriculture and Cooperation dealing with cooperation Member (iii) Chairman
of two national cooperative societies to be nominated by the Central Government Member (iv) One
expert in the management to be nominated by
the Central Government Member (v) The
Managing Director National
Cooperative Development Corporation Member (vi) Central
Registrar of Cooperative Societies Member Secretary (2) The
Selection Committee shall prepare list of persons eligible for appointment to
the post of the Chief Executive and other managerial posts in the national
cooperative societies, the maximum pay scale of which exceeds rupees four
thousand per month in the manner hereinafter provided. (3) The
Central Registrar shall, on the requisition received from the national
cooperative society, convene the meeting of the Selection Committee for the
purpose of preparation of list for the appointments to the post or posts for
which the requisition has been received. (4) The
Selection Committee shall,- (a) take appropriate steps to advertise,
circulate or otherwise call for the names for the posts referred to in
sub-rule(2); (b) screen the names received and prepare
list of persons, after interview if necessary, suitable for appointment for
the said posts in order of merit and forward it to the Central Government for
its onward transmission to the concerned national cooperative society: Provided
that in the case of the existing Chief Executive or persons employed in other
managerial posts in the national cooperative society on the date of the coming
into force of these rules, who are in regular employment of the society, no
such reference to the Selection Committee will be necessary: Provided
further that in the case of the Chief Executives or persons employed in other
managerial post who are on deputation with the national cooperative society
on the date of the enforcement of these rules, a reference to the Selection
Committee shall be necessary on the expiry of the terms of deputation of such
Chief Executives or persons. (5) The national cooperative society shall
appoint the persons to the post of the Chief Executive and other managerial
posts mentioned in sub-rule (2) from the list of persons recommended by the
Selection Committee. (6) The Selection Committee may coopt two
experts at the time of selection of persons according to the requirements of
posts or category of posts for which the list of persons is to be
prepared. CHAPTER V SETTLEMENT OF
DISPUTES 36. Procedure in proceeding before Central
Registrar- (1) A reference to the Central Registrar of
any dispute under section 74 shall be in writing. Every such reference shall be accompanied
with a fee of rupees ten for the money claims not exceeding rupees fifty in
all other cases. (2) On
receipt of a reference under sub-rule(1) the Central Registrar may elect to
decide the dispute himself or refer it for disposal to any other person who
has been invested with powers of the Central Registrar under section 76 by
the Central Government. (3) The
Central Registrar or other person deciding the dispute shall record a brief
note of the evidence of the parties and witnesses who appear before him and
upon the evidence so recorded and after consideration of any documentary
evidence produced by the parties, a decision shall be given in accordance
with justice, equity and good conscience by the Central Registrar or other
person deciding the dispute. The
decision given shall be in writing. In
the absence of any party duly summoned to attend, the dispute may be decided
exparte. Exparte decision may, on
sufficient cause for non-attendance being shown, be set aside by the Central
Registrar or other person deciding the dispute, and the dispute ordered to be
retaken on the register of disputes and disposed of: Provided
that no application for setting aside an exparte decision shall lie unless
made within thirty days from the date of such decision and the party for
whose non-attendance such decision was made had been duly served with the
notice, or in other cases within thirty days from the date of knowledge of
such decision having been made. (4) The
decision shall be communicated to the parties by, (i) pronouncement of the decision;
or (ii) registered post to any party which may
be absent on the date the decision is given.
(5) The Central Registrar or the person
deciding the dispute, shall have power
to appoint or remove a guardian for the party to the dispute, if any such
party is a minor or a person with unsound mind or mental infirmity, and is
incapable of protecting his interest. (6) A duly certified copy of the decision
shall, on application, be given to the parties to the dispute by the Central
Registrar or the person deciding the dispute, on payment of copying charges
at the rate of rupees one per page. CHAPTER VI APPEALS AND REVISIONS 37. Appeals against order of Central
Registrar- For
the purpose of clause (a) of sub-section(2) of section 90 of the Act, an
appeal against any decision or order shall be made if the decision or order
was made by:- (a) the Central Registrar appointed under
sub-rule(1)of section 4 of the Act, to the Secretary to the Government of
India in the Department of Agriculture and Cooperation; (b) any officer of the Central Government
or any officer of the State Government of the rank of Registrar on whom
powers of the Central Registrar have been conferred under sub-section (2) of
section 4 of the Act, to the Additional Secretary to the Government of India
in the Department of Agriculture and Cooperation; (c) any other officer of the State
Government on whom powers of Central Registrar have been conferred under
sub-section(2) of section 4 of the Act, to the Chief Director (Cooperation)
in the Ministry of Agriculture and Cooperation.; 38. Procedure regarding appeals and
application for revision- (1) An appeal under subsection (2) of
section 90 or an application for revision under section 92 shall be either
presented in person or sent by registered post to the appellate or revising
authority. (2) The appeal or the application for
revision shall be in the form of a memorandum and shall be accompanied by the
original or certified copy of the order appealed from or sought to be
revised. (3) Every appeal or application for
revision shall:- (a) specify the name and address of the
appellant or applicant and also the name and address of the respondent, as
the case may be; (b) state by whom the order appealed from
or sought to be revised was made; (c) set forth concisely and under distinct
heads, the grounds of objection to the order appealed from or sought to be
revised together with a memorandum of evidence; (d) State precisely the relief which the
appellant or the applicant claims; and (e) give the date of order appealed from or
sought to be revised; (4) Where,- (a) an appeal under sub-section(2) of
section 90 is preferred after the expiry of sixty days specified in the said
sub-section; or (b) an application for revision under
sub-section(1) of section 92 is made after the expiry of ninety days from the
date on which the decision or order to which the application relates is communicated to the applicant; it shall
be accompanied by a petition supported by an affidavit setting forth the
facts on which the appellant or the applicant relies, to satisfy the
appellate or revising authority that he had sufficient cause for not
preferring the appeal of the application for revision within the period
mentioned in clauses (a)and (b) (5) On receipt of the appeal or the
application for revision, the appellate or revising authority shall as soon
as possible examine it and ensure that: (a) the person presenting the appeal or the
application has the locus standi to do so; (b) it is made within the prescribed time
limit; and (c) it conforms to all the provisions of
the Act and these Rules. (6) The
appellate or revising authority may call upon the appellant or the applicant
for revision to remedy the defects if any, or furnish such additional
information as may be necessary, within a period of fifteen days of the
receipt of the notice to do so. If the
appellant or the applicant for revision fails to remedy the defects or
furnish the additional information called for within the said period, the
appeal or the revision petition may be dismissed. (7) The
appellate or revising authority may, before passing orders under section 90
or under section 92 obtain from any subordinate officer such further
information in regard to the enquiry or the proceedings for the purpose of
verifying the regularity of such proceedings or the correctness, legality or
propriety of any decision passed or order made therein. The appellate or revising authority may
also call for and obtain from the parties connected with such enquiry or
proceedings such information as is necessary with reference to the
examination of the records of enquiry or proceedings and the information
obtained from the subordinate officer. (8) The
appellate or revising authority shall on the basis of the enquiry conducted
and with reference to the records examined, pass such order on the appeal or
on the application for revision as may seem just and reasonable. (9) Every
order of the appellate or revising authority under sub-section (2) of section
90 or 92 shall be in writing and it shall be communicated to the appellant or
applicant and to such other parties as in the opinion of that authority are
likely to be affected by the decision or order and to the officer concerned
against whose order the appeal of the application for revision was
made. 39. Application for review- (1) Every application under section 93
shall be in the form of a memorandum setting forth concisely and under
distinct heads the new and important facts which after the exercise of the
due diligence, were not then within the knowledge of the applicant or could
not be produced by him when the order was made or mistake or errors apparent
on the face of the record or order reasons on the basis of which review is
sought. It shall be accompanied by
a memorandum of evidence. (2) The
application shall be accompanied by the original or a certified copy of the
order to which the application relates. (3) No
application for review shall be entertained unless it is accompanied by such
additional number of copies as there are parties to the original order. (4) The
application shall, so far as it may be necessary, be disposed of by the
appellate authority in such manner as may be deemed fit, provided that no
order prejudicial to any person shall be passed unless such person has been
given an opportunity of making his representation. FORM 1 (See sub-rule (1) of rule3) Application for
registration of a multi-State cooperative society under the To, The
Central Registrar of Cooperative Societies Sir, We
submit herewith a proposal for registration of the following multi-State
cooperative society along with enclosures as indicated below: 2. We
also declare that the information given herewith including that in the
enclosures is correct to the best of our knowledge: (a) Name of the proposed multi-State
cooperative society; (b) Headquarters and address to be
registered; (c) Area of operation; (d) Main objectives; (e) Why is it absolutely necessary for the
society to be registered under the Multi-State Cooperative Societies Act, 1984; (f) Is there any multi-State society
having similar area to operations and identical objectives; (g) If all the members are individuals,
please indicate the number of persons from each State who have signed the
application: Name of the State Number of persons
who have signed
the application (h) Name and address of the applicant for
the purpose of further correspondence. 3. Following
documents are enclosed: (a) A certificate from the
...............................Bank stating credit balance therein favour of
the proposed multi-State cooperative society. (b) A scheme explaining how the proposed
multi-State cooperative society has reasonable prospects of becoming a viable
unit. We are sending herewith four
copies of the bye-laws duly signed. 4. Following
persons are authorised to sign the bye-laws and also to make necessary
alteration therein. 5. The
particulars of the applicants are given hereunder:
_____________________ FOR OFFICIAL USE Received by registered post on
+...................by +..............in the office of the Central Registrar
or by hand from Shri +......................Entered in the register of
application at S.No...................... Signature of officer receiving Received
registration proposal No.........................on...............for
registration of ......................society Ltd.,(Proposed)alongwith
the enclosures referred to
above from ...................by post/hand deliver. Place..................... Central
Registrar Date................... Signature
& Stamp * If representing a cooperative or any other cooperative
body enclose a copy of the Resolution
or authorisation of the competent authority, authorising the person to sign
the application for registration. + Blanks to be filled in. FORM II Register of applications for
registration of multi-State cooperative societies received by the Central
Registrar.
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Department of Agriculture & Co-operation
Cooperation Division
Multi-State Cooperative Societies Act,1984 (51 of 1985)
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SCHEDULE 1. Procedure regarding conduct of
elections to the board of multi-State cooperative societies- Notwithstanding
anything contained in the rules and without prejudice to the generality of
the powers of the Central Government in sub-section(1) of the section 35, the
election of the members of the board of directors of national cooperative
societies specified in the Second Schedule to the Act and such other
multi-State cooperative societies or class of multi-State cooperative
societies, as the Central Government may, by general or special order notify,
shall be conducted by such returning officers as may be appointed by the Central Registrar in
this behalf. The election in such
societies, shall be conducted in the manner hereinafter provided:
(a) The board of directors in office shall
meet sixty clear days in advance of the date of expiration of its term and by
resolution determine the date, time and place for convening a general body
meeting for the conduct of elections of its successor board. This provision will apply mutatis mutandis
to such multi-state cooperative societies as are under the charge of the
administrator appointed under sub-section (1) of section 48. (b) A copy of the decision referred to in
sub-paragraph(a) shall forthwith be sent to the Central Registrar. (c) On receipt of the decision referred to
in sub-paragraph (b), the Central Registrar shall appoint a returning officer
under sub-section (1) of section 35.
The returning officer shall shortly thereafter, send intimation by
local delivery or by registered post about the date, time and place of the
general meeting to each of the members of the multi-State cooperative
society. Where other cooperative
societies or multi-State cooperative society.
Where other cooperative societies or multi-State cooperative societies
are members, the returning officer shall call on such societies to send the
name of their Chairman or President or the Chief Executive as a
representative (hereinafter referred to as the delegate) in accordance with
the provisions contained in sub-section (3) of section 29 together with the
resolution of the board of the society and the specimen signature of the
Chairman, President or the Chief Executive duly attested and bearing the seal
of the society so as to reach him at least 21 clear days prior to the date
fixed for the general meeting that he shall represent such society in the
general meeting. Where no such
resolution or communication intimating the name of delegate is received by
the date fixed or where any intimation
changing the name of the delegate is received after such date, it shall not
be accepted for inclusion in the list of members/delegates of
member-societies. Fresh resolution
shall be required for every general meeting at which election shall be held.
(d) It shall be the duty of the board of
directors in office, or the administrator, as the case may be, to bring
up-to-date the register of members and such other registers, as the returning
officer may require and handover such records, register or registers to the
returning officer thirty days prior to the date fixed for the general meeting
for the purpose of election. (e) The election shall be held at a general
meeting of the society convened for the purpose of which not less than fourteen
days notice shall be given to the members.
Such elections shall take place after all other matters included in
the agenda have been considered. For
the conduct of elections, the returning officer shall preside over the
meeting. (f) The notice of the general meeting
shall be sent to the members by any of the following modes, namely:- (i) by local delivery; or (ii) by registered post (g) Notice of the general meeting shall
also be affixed on the notice board of the multi-State cooperative society
and its branches, if any. The notice
shall contain information regarding: (i) the number of vacancies to be filled
by election; (ii) the area of the constituency
(specified in the bye-laws)from which the members are to be elected; (iii) the qualifications, if any, specified
in the bye-laws for eligibility for membership on the board; (iv) the name of the returning officer,
date, place and the hours between which nomination paper shall be filled by
the members, such date being not less than one clear day before the date
fixed for election or if that happens to be a holiday the day preceding which
is not a public holiday. Explanation: For the purpose of the sub-paragraph the
term “public holiday” means any day which is declared as a public holiday
under section 25 of the Negotiable Instruments Act, 1881 (26 of 1881) or any
day which has been notified by the Central Government, or as the case may be
the State Government to be a public holiday for the offices of the Central
Government or the State Government: (v) the date on which and the time and
place at which the nomination papers will be taken up for scrutiny; (vi) the date and time of which, the place
at which and the hours between which polling will take place.
(a) The multi-State cooperative society
shall prepare a list of members eligible to vote as it stood on the date,
thirty days prior to the date fixed for the poll and publish copies of the
list by affixing them on the notice board at the head office of the society
and all its branches, if any, not less than fifteen days prior to the date
fixed for election. The list shall
specify:- (i) the admission number and name of the
member, the name of the father or husband, and the address of such member in
the case of an individual member, and (ii) the admission number, the name of the
society, name of the date proposed to represent the society, in the case of a
member society. (b) A copy of the list shall be supplied by
the society to any member on payment of such fee as may be specified by the
board. Where no fees has been
specified, the person authorised as per bye-laws of the society shall supply
such list on payment of an amount of rupees five. 4. Nomination of candidate- (a) Nomination of the candidate for
election shall be made in the Nomination Form attached to this Schedule which
on application shall be supplied by the returning officer or any other
officer authorised by him in this behalf, to any member free of cost. (b) Every nomination paper shall be signed
by two members whose names are included in the list of the
members/delegates. One of the members
shall sign the form as proposer and the other as seconder for the nomination. The nomination paper shall also contain a
declaration signed by the candidate, expressing his willingness to stand for
election. (c) Every nomination paper shall be
presented in person or sent by registered post as acknowledgement due, by the
candidate himself or his proposer or seconder to the returning officer or any
person authorised by him in this behalf, so as to reach him before the date
and hour specified in the notice of meeting as per paragaraph2(g). The returning officer or any officer
authorised by him who receives the nomination paper shall enter on the
nomination paper its serial number and certify the date and hour at which the
nomination paper is received by him and shall immediately give a written
acknowledgement for the receipt of the nomination papers if presented in
person, which shall also bear the seal of the society. The returning officer shall, at the close of the time
fixed for the receipt of nomination papers, prepare and display on the notice
board of the society, a list of nomination received by him. Any nomination papers, prepare and display
on the notice board of the society, a list of nomination received by
him. Any nomination paper which is not
delivered or received on or before the date and time fixed for its receipt,
shall be rejected. (d) No person shall be nominated as a
candidate for election to fill a seat on the board if he: (i) is ineligible to vote; (ii) is disqualified to be the
member/delegate under the provisions of the Act or a member of the board
under these rules; and (iii) does not possess the necessary
qualifications specified in the bye-laws of the society for election as
member of the board. 5. Scrutiny of nomination papers-
(a) (i) On
the day fixed for the receipt of nomination papers, the returning officer
shall, at the appointed hours, take up the scrutiny of nomination
papers. The candidate or the proposer
or seconder of each of the candidate may be present at the time and place
when nomination papers are scrutinised. (ii) The returning officer shall examine
the nomination papers and shall decide all objections which may be made by
any candidate or his proposer or seconder in respect of any nomination and may, either on such objection, or on his own motion and
after such summary enquiry, if any, as he thinks necessary, reject any
nomination. Provided
that the nomination of a candidate shall not be rejected namely on the ground
of an incorrect description of his name or the name of his proposer or
seconder or of any other particulars relating to the candidate or his
proposer or seconder, as entered in the list of members referred to in
paragraph3(a) if the identity of the candidate, proposer or seconder, as the
case may be, is established beyond reasonable doubt. (iii) The returning officer shall endorse on
each nomination paper his decision
accepting or rejecting the same as the case may be, and if the nomination
paper is rejected, he shall record in writing a brief statement of his
reasons for such rejection. (iv) The returning officer shall not allow
any adjournment of the proceedings
except when proceedings are interrupted or obstructed by riot or affray or by
causes beyond his control. (v) The list of valid nomination as
decided by the returning officer shall be published on the notice board of
the society containing the names in the alphabetical order in English and
address of the candidate as given in the nomination paper on the same day on
which the scrutiny of the nomination paper is completed. (b) Any candidate may withdraw his
candidature by notice in writing signed by him and delivered in person or by
his proposer or seconder at any time after the presentation of the nomination
papers but before the date and time specified in paragraph2(g)(vi) for such
withdrawal. A notice of withdrawal of
candidate once given shall be irrevocable. 6. Voting- (a) If for any area or constituency for
which election is to be held, the number of candidates whose nomination
papers have been declared valid, does not exceed the number of candidates to
be elected for that area or constituency, the returning officer shall at the
general meeting convened for the purpose of the election, declare them to
have been duly elected to the board.
If the number of candidate whose nominations are valid exceeds the
number to be elected for any area or constituency, the returning officer
shall arrange for conducting a poll on the date and time fixed for the
purpose. The returning officer may
appoint as many polling officers as may be necessary for conducting the poll.
(b) A candidate contesting the election
may, by a letter to the returning officer, appoint an agent to represent him
where polling is held, to identify the voters and to watch the recording of
votes. Such letter shall contain the
consent in writing of the agent concerned. (c) Canvassing of votes by any person at
the place where election are to be conducted shall be prohibited. (d) Immediately before the commencement of
the poll, the returning officer shall show the empty ballot box such persons
as may be present at the time and shall then lock it up and affix his seal in
such manner as to prevent its being opened without breaking the seal. The candidate or his agent may also affix
his own seal, if he so desires. (e) Every member delegate who desires to
exercise his right of vote shall be supplied with a ballot paper containing
the names of contesting candidates arranged in alphabetical order either
printed, typewritten or cyclostyled, according to convenience, on the ballot
paper. the ballot paper shall also
bear the seal of the society and also the initials of the returning officer
and further contain a column, for the voter to inscribe mark `X' against the
name or names of the persons to whom he wants to vote. (f) Each polling station and where there
is more than one polling booth at a station, each such booth shall contain a
separate compartment in which the members/delegates can record their votes in
secrecy. (g) Every member who desires to exercise
his votes shall enter the polling station with an identity card, if any,
given to him. The polling officer
shall identify the member by putting
questions to him with reference to the list of members/delegates eligible to vote in the
polling station, furnished to him. If
the polling officer is satisfied about the identity of the member and if
there is no objection from any candidate or his polling agent present at the
polling station, he shall issue a
ballot paper to him. On receipt of
such ballot paper, the member shall proceed to the polling compartment set
apart for the purpose and indicate the person or persons in whose favour he
exercises his vote by inscribing a mark `X' against the name of the candidate
or candidates, as the case may be, and put the ballot paper in the ballot box
kept for the purpose with utmost secrecy.
If owing to blindness or other
physical infirmity or illiteracy a member is unable to inscribe the mark on
the ballot paper the polling officer, and where no such polling officer is
appointed, the returning officer shall ascertain from him the candidate or
candidates, in whose favour he desires to vote, inscribe the mark`X' on his
behalf and put the ballot paper in the
ballot box. (h) (i) Every
member whose name is entered in the list of members/delegates eligible to
vote, furnished to the polling officer, is entitled to poll his vote, unless
there is a challenge by the candidate or his agent against his identity. If there is such a challenge about the
identity of a member or if the polling officer feels any reasonable doubt, he
shall then refer the matter to the returning officer who shall make a summary
inquiry and decide the question with reference to the books of the society.
(ii) The returning officer shall not
entertain any challenge by a candidate or his polling agent, of a member's
identity until the person who challenges pays a fee of Rs.5/-(Rupees five
only) for every such vote, in cash.
The returning officer shall thereafter entertain the challenge and ask
the member who has come to poll the vote to affix his thumb-impression or
signature, as the case may be on a declaration describing his identity. If he refuses to do so, the member shall
not be allowed to vote. If, on the
other hand, as a result of such summary enquiry the identity of the member is
established to the satisfaction of the returning officer, the polling officer shall issue ballot paper, and the
member shall then be allowed to vote.
In such cases the challenge fees paid shall be forfeited. At the end of the poll, the returning
officer, shall render an account of challenge fees collected, fees refunded
to the persons who challenged and the fees forfeited to the society together
with a brief note on the decision arrived at by him after the summary inquiry
in each case. (i) (A) If
at any stage of the polling, the proceedings are interrupted or obstructed by
any riot or affray or if at such election it is not possible to take poll for
any sufficient cause, the returning officer shall have power to stop the
polling after recording his reasons for such an action. (B) Where the poll is stopped under clause
(A) or where counting of votes is rendered impossible on account of
destruction or loss of ballot boxes or any other sufficient reason, the
returning officer shall stop the polling recording the reasons for such
action in the minute book of the society. (j) No voter shall be admitted after the
hour fixed for the polling; but a voter who enters the premises where ballot
papers are being issued before the close of the polling hour shall be issued
the ballot paper and allowed to vote. (k) The counting of votes shall take place
immediately after close of the poll.
If this is not possible for reasons beyond the control of the
returning officer, the ballot box shall be sealed with the seal of the returning
officer and of the contesting candidates or of their agents, if they so
desire, and deposited with the society for safer custody. The returning officer shall then announce
and also intimate in writing to the candidates or their agents present the time and place at which
the counting shall commence next day.
votes shall be counted by or under
the supervision of the returning officer. Each candidate and his authorised agent shall
have a right to be present at the time of counting. But the absence of any candidate or his
agent at the time of counting shall not vitiate counting or announcement of
results by the returning officer. 7. General-
(a)
A ballot paper shall be rejected by the returning officer, if: (i) it bears any mark or writing by which
the member who voted can be identified; or (ii) it does not bear the seal of the
society or the initiate of the returning officer; or (iii) the mark indicating the vote thereon is
placed in such manner as to make it doubtful to which candidate the vote has
been cast; or (iv) is so damaged or mutilated that its
identity as a genuine ballot paper cannot be established. (b) If after the counting of the votes is
completed, an equality of votes is found to exist between any candidates and
the addition of one vote will entail any of those candidates to be declared
elected, the returning officer shall forthwith decide between these
candidates by lot and proceed as if
the candidate on whom the lot falls had received an additional vote and
declare him elected. (c) After the returning officer has
completed the counting of votes, he shall prepare a return of the results of
the polling and shall forthwith declare the results. The returning officer, shall immediately
thereafter record the proceedings of the election in a comprehensive report
which shall form part of the records of the society and shall be binding on
all. A copy of such a report
together with a copy of the return of
the results of polling, shall be submitted by the returning officer to the
Central Registrar. 8. Mode of election of members of the
board of multi-State cooperative societies other than those referred in
paragraph 1- (1) The election of the members of the
board of a multi-State cooperative society not falling under paragraph I
shall be by show of hands. (2) The election shall be held at a general
meeting of the multi-State cooperative society convened for the purpose, of
which not less than 14 clear days notice shall be given to the members. The notice of the general meeting shall be
sent to the members by any of the modes specified in sub-paragraph(f) of
paragraph 2 and shall contain information regarding:- (a) the number of vacancies to be filled by
election; (b) the area or the constituency, if any,
from which members of the board are to be elected; and (c) the date on which, the place and the
hours at which elections will take place. (3) The board of directors or the
administrator or administrators appointed under sub-section (1) of section
48, as the case may be, shall prepare a list of individual members and
delegates of member-societies as it stood on the date, 30 days prior to date
on which elections are to take place and affix a copy thereof to the notice
board of the society not less than 15 days prior to the date fixed for the
election. A copy of the said list
shall be supplied by the society to any member on payment of such fees as may be specified by
the board, or the administrator, as the case may be. Where no fees has been specified, the
President/Chairman of the society, or the administrator shall supply such
list on payment of Rs.2/-. (4) Notwithstanding anything contained in
this Schedule, the President/Chairman or the Vice-President/Vice-Chairman if
they are not candidates seeking election to the board, shall preside over the
meeting. In case they are seeking
election to the board, as the Chairman of the meeting for the conduct of
election. Provided
that in respect of a society falling under this rule for which an
administrator has been appointed under sub-section (1) of section 48, the
administrator shall be the Chairman of the meeting. (5) The nominations of the candidates for
election shall be made at the meeting.
The Chairman of the meeting shall decide the objections, if any, which
may be made at the time to any nomination after making such summary enquiry
as he thinks necessary and announce the names of candidates as per valid
nominations. (6) If for any area or constituency for
which election is to be held the number of candidates in respect of whom
valid nominations have been announced
the candidates for whom valid nominations have been announced shall be
deemed to have been elected for that area or constituency, as the case may be
and the Chairman of the meeting shall make a declaration to that effect. If
the number of candidates in
respect of whom valid nominations have been announced for any area or
constituency exceeds the number of candidates to be elected, a poll shall be
taken and the Chairman shall then read
out the names of the contesting candidates.
He shall thereafter record the number of votes polled, for and against
each such candidate, ascertained either by show of hands or by ballot, as the
case may be, and record the same in the minute book of the society. The Chairman shall announce the number of
votes polled by each candidate and the result of the elections which shall also be recorded
in the minute book of the society and attested by him. (7) Where secret ballot is demanded by the
members of the general body, a formal resolution to this effect will be put
to vote and adopted. The meeting shall
adjourn for a brief period to enable the Chairman to make arrangements for
the secret ballot. (8) After counting, the general body shall
again assemble where the results of the poll shall be announced as in clause
(6) of paragraph 8. 9. Elections of the boards of societies
which have to be conducted by returning officer on requisition from the
members- Notwithstanding
anythings in sub-paragraph (1) of paragraph 8, where a requisition to appoint
a returning officer to conduct an election is received from not less than
one-fifth of the total number of members on the rolls and eligible to vote in
a multi-State Cooperative society, sixty days in advance, the Central
Registrar, shall appoint a returning officer to conduct election in the
manner specified in paragraphs 2 to 7. 10. Election of office bearers- (1) As soon as the members of the board
have been elected the returning officer referred to in paragraph 1, 2 and 9,
or the President/Chairman referred to in paragraph 8 shall, notwithstanding
anything in the bye-laws of the multi-State cooperative society specifying the
period of notice, convene a meeting of the newly constituted board for the
purpose of election of the President/Chairman, Vice-President/Vice-Chairman
or other elected office bearers of the society, by whatever name they are
called. Such a meeting of the board
shall not be conducted unless a majority of the number of members of newly
constituted board, as per bye-laws are present. (2) At the meeting so convened by the
President/Chairman referred to in paragraph 8 (under sub-paragraph (1) the
members of the newly constituted board of multi-State cooperative societies
shall from among themselves, elect a member who is not a candidate seeking
election to any office, as the Chairman of the meeting for conducting the
elections. the election of officer
bearers of such multi-State cooperative societies shall be by show of hands
unless a poll is demanded in which case, it shall be held by secret ballot.
(3) The election of office-bearers of the
societies referred to in paragraph 1 and 9 shall be conducted by the
returning officer appointed by the Central Registrar. The nomination of the candidates for
election in such cases shall be made at a meeting of the newly constituted
board of directors. the returning
officer shall decide the objections if any, which may be made at the time, to
any nomination and after making such summary inquiry, as he thinks necessary, announce the name of
valid nominations. (4) If for any office for which elections
are to be held, the number of candidates in respect of whom valid nominations
have been announced, does not exceed the number of candidates to be elected
for that office, the candidates for whom valid nominations have been
announced shall be deemed to have been elected for that office and the
returning officer shall make a declaration to that effect. If the number of candidates in respect of
whom valid nominations have been announced for any office exceeds the number
of candidates to be elected a poll shall be taken by the returning
officer. The returning officer shall,
thereafter, announce the number of
votes secured by each candidate and the result of election which shall also
be recorded by him. 11. Custody of record of elections
conducted-
After
declaration of the result of election, the returning officer referred to
under paragraph 1,9 and 10 or the Chairman of the meeting under paragraph 8,
as the case may be, shall handover the ballot papers and records, if any,
relating to the election of the members of the board of directors and the office
bearers to the chief executive of the
multi-State cooperative society in sealed covers. They shall safely, be preserved by the
chief executive of the society for a period of six months from the date of
election or till such time a dispute or an appeal thereof regarding
elections, if any, filed is disposed of, whichever is later, and shall
thereafter be destroyed. NOMINATION FORM (See paragraph 4 (a)) 1. Name
of the multi-State cooperative society and
address :
2. Name
of the candidate in case of an individual member/name
of the delegate and the member cooperative
society or multi-State cooperative society
which he is representing : 3. Serial
No. in the register of members : 4. Father's
or husband's name (in case of individual
member) :
5. Address :
6. Name
of the proposer in case the proposer is an
individual member and the name of the society
and the delegate in the case proposer is
a delegate of a society :
7. Serial
No. of the proposer in the register of members :
8. Signature
of the proposer :
9. Name
of the seconder when the seconder is an individual
member and name of the society and
the delegate in case the seconder is a delegate
of a society :
10. Serial
No. of the seconder in the register of members :
11. Signature
of the seconder :
CANDIDATE'S DECLARATION I
declare that I am willing to stand for election and that, to the best of my
knowledge and belief I have not incurred any disqualification for membership
of the board of .........................multi-State cooperative society in
terms of the Act, the Rules and the bye-laws f the multi-State cooperative
society. ( Signature of the candidate) Endorsement by the Returning Officer This
nomination paper was presented to me in person at ...................received
by registered post on .................at .....................hrs. Place: Date : Signature of Returning Officer or
person authorised by him |
Multi-State Cooperative Societies Act,1984 (51 of 1985)
|
THE MULTI-STATE COOPERATIVE SOCIETIES RULES, 1985 (Privileges, Properties and Funds, Accounts, Audit, Winding up and
Execution of Decrees, Orders and Decisions) Rules, 1985 GSR
812(E).- In exercise of the powers conferred by section 109 of the
Multi-State Cooperative Societies Act, 1984 (51 of 1984), the Central
Government hereby makes the following rules, namely: CHAPTER I PRELIMINARY 1. Short title and extent- (1) These rules may be called the
Multi-State Cooperative Societies (Privileges, Properties and funds,
Accounts, Audit, Winding up and Execution of Decrees, Orders and Decisions)
Rules, 1985. (2) They
shall come into force on the date of their publication in the Official
Gazette. 2. Definitions- In
these rules, unless the context
otherwise requires, (i) "Act" means the Multi-State
Cooperative Societies Act, 1984 (51 of 1984); (ii) "authorised officer" means
an officer authorised by the Central Government for the purpose of Section
95; (iii) "decree" means any
decree of a civil court and includes
any decision or order referred to in section 85; (iv) "decree holder" means any
person holding a decree as defined in clause (iii); (v) "defaulter" means any
multi-State cooperative society, any cooperative society, ember or any other
person committing default; (vi) "form" means a Form appended
to these rules; (vii) "general meeting" means a
meeting of the general body including a representative general body referred
to in section 29; (viii) "Judgement debtor" means any
multi-State cooperative society against which or any person against whom a
decree has been obtained; (ix) "recovery officer" means any
person authorised to exercise the powers of the Central Registrar under
section 85; (x) "sale officer" means a
person authorised by the Central Registrar, by general or special order, to
attach and sell the property of judgement-debtor or to execute any decree by
attachment and sale of property; (xi) "section" means a section of
the Act; (xii) words and expressions defined in the Act
and used but not defined in these rules shall have the meanings respectively
assigned to them in the Act. CHAPTER II PRIVILEGES, PROPERTIES
AND FUNDS OF MULTI-STATE COOPERATIVE SOCIETIES 3. Certifying copies of entries in
books-
(1) For the purpose specified in
sub-section (1) of section 56, a copy of any entry in a book of a multi-State
cooperative society regularly kept in the course of its business shall be
certified- (i) by the Chief Executive of the society
or any other member or employee authorised by the bye-laws of the society; (ii) where an order has been passed under
section 48 superseding the board and appointing an administrator or any other
officer authorised by him; and (iii) where an order has been passed under
sub-section (1) of section 80 appointing a liquidator of the multi-State
cooperative society, by the liquidator. (2) Every
certified copy shall bear the seal of the multi-State cooperative society.
4. Contribution towards Cooperative
Education Fund- (1) Every
multi-State cooperative society shall credit a sum calculated at one percent
of its net profits every year as contribution to the cooperative
education fund maintained by the
National Cooperative Union of India Limited, New Delhi. The cooperative education fund shall be
administered by a committee nominated for that purpose consisting of the
following members: (i) The President of the national
Cooperative Union of India Ltd. New Delhi Chairman
(ii) The
Central Registrar Member
(iii) The Financial adviser to the Department
of Agriculture & Cooperation in the Ministry of Agriculture Member (iv) Two representatives of the multi-State
cooperative societies to be nominated by the Central Government for every two
years Members (v) The Director General, National Council
for Cooperative Training, New Delhi Member (vi) The Director, Vaikunth Mehta national
Institute of Cooperative Management, Pune (2) The cooperative education fund shall be
utilised for the purposes connected with the education of members and human
resources development for cooperatives.
5. Disposal of net profits- The
net profits of every multi-State cooperative society shall be disbursed or
utilised subject to the following terms and conditions: (a) No
dividend shall be declared or paid except from out of the net profits and
shall be decided by the Board. (b) No
dividend shall be declared or paid while a claim due from the multi-State
cooperative society to a depositor or lender remains unsatisfied. (c) No
donation made by the multi-State cooperative society out of the net profits of any year shall
exceed rupees five lakhs. 6. Investment of funds- A
multi-State cooperative society may invest or deposit its funds in any one or
more of the following modes:- (i) any
mode provided in clauses (a) to (e)of section 62; (ii) any
post office saving bank; (iii) any savings scheme launched by the
Central or the State Government; (iv) the shares of a corporation or other
body corporate in which the Central or the State Government or both hold more
than fifty percent of the shares; and (v) the debentures floated by a
corporation or a body corporate if such debentures are guaranteed by the
Central or the State Government or by the Reserve Bank of India. 7. Objects and investment of reserve
fund- (1) Every multi-State Cooperative society
shall maintain a reserve fund to meet any one or more of the following
objects:- (i) unforeseen
losses; (ii) claim
of the creditors of the society which cannot be otherwise met;and (iii) such
other financial needs in times of special scarcity. (2) Every multi-State cooperative society
may with the permission of the Central Registrar invest or deposit its
reserve funds in:- (i) acquisition
or purpose of land and building and construction of building for: (a) its
office, staff and equipment (b) installation
or operation of its machinery or plant; (ii) purchase
of machinery or plant which is required for its main business; (iii) acquisition or purchase of land
building, and construction of buildings for the purposes mentioned in clause
(i)(a) and also for the benefit of its members in accordance with the
provisions of its bye-laws; and (iv) its
own business. (3) The
reserve fund of a multi-State cooperative society shall be indivisible and no
member shall have any claim or a share in it. (4) No
multi-State cooperative 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 Central Registrar previously obtained. (5) The
utilisation of the reserve fund for the objects mentioned in sub rule (1)
shall be subject to the condition that any amount drawn shall be reimbursed
from the profits accruing in subsequent cooperative year or years as directed
by the Central Registrar. The Central
Registrar may, however, having regard to the special circumstances of the
society, permit that the reserve fund drawn and untilised for the objects
mentioned under clauses (ii) and (iii)of sub-rule(1) may not be reimbursed
wholly or partially as he may direct. (6) (a) In the case of winding up of a
multi-State cooperative society, the reserve fund and the other funds of the
multi-State cooperative society shall be applied first in discharge of the
liabilities of the multi-State cooperative society in accordance with the
priority specified in items (i) to (vi) below:- (i) salary
and wages or other payments, if any, due to the employees of the multi-State
cooperative society; (ii) security
deposits of staff, if any; (iii) borrowings
held from Government or on the guarantee of Government, if any; (iv) deposits
of non-members, if any; (v) loans,
if any; and (vi) deposits
of members, if any. (b) The
balance, if any, after discharging the liabilities mentioned in clause (a)
shall be applied to the re-payment of the paid-up share capital and
thereafter to the payment of dividend where it has not been paid. (c) Notwithstanding
anything contained in clause (b), no dividend shall be paid if the bye-laws
of the multi-State cooperative society do not provide for payment of
dividend. (7) Any
surplus remaining after payments mentioned in sub-rule (6) shall be applied
by the liquidator, after consulting members, for contribution to National
Defence Fund or to Cooperative Education Fund referred to in rule 4 or to any
other charitable purpose or local objects of public utility subject to the
approval of the Central Registrar.
8. Writing off of bad debts and losses- All
loans including interest thereon and recovery charges in respect thereof
which are found irrecoverable and are certified as bad debts, by the auditor
appointed under section 67, shall first be written off against the Bad Debt
Fund and the balance, if any, may be written off against the Reserve fund and
the share capital of the multi-State Cooperative society. All
other dues and accumulated losses or any other loss sustained by the
multi-State cooperative society which cannot be recovered and have been
certified as irrecoverable by the auditor may be written off against the
Reserve fund of the multi-State cooperative society; Provided
that: (a) no
bad debts or losses shall be written off without the sanction of the general
body; (b) before
any such bad debts or losses are written off, the multi-State cooperative
society shall obtain the approval of the Central Registrar. Provided
further that the Central Registrar may, while giving the approval, impose
such conditions as to the recoupment of the Bad Debt Fund and restoration of
part or whole of the amount written off against the Reserve Fund, from out of
future profits as he deems fit. 9. Transactions with non-members- Save
as otherwise provided for in section 65 and except with the general or
special sanction of the Central Registrar, no multi-State cooperative society
shall enter into any credit transaction with a person other than a member,
unless the bye-laws of the multi-State cooperative society permit it to enter
into such transactions. 10. Application for loan - (1) An application for loan shall be in
such form as may be required by the board of the multi-State cooperative
society and shall state the purpose for which the loan is required in the
manner laid down in the bye-laws of the society. (2) For every loan, a member shall furnish
such security as may be required under the bye-laws of the multi-State
cooperative society. (3) The
period of repayment of the loan shall be as may be provided in the bye-laws,
but in no case exceed five years. (4) In
any multi-State cooperative society in which the liability of the members is
limited by shares, no loan shall be granted to a member exceeding ten times
the amount of share capital laid down
in the bye-laws. times the amount of share capital paid by him or as may be
laid down in the bye--laws. 11. Contributory Provident Fund- (1) Every
multi-State cooperative society which has in its service 5 or more regular
employees shall establish a Contributory Provident Fund referred to in
sub-section (1) of section 66. (2) The
multi-State co-operative society creating such a fund shall provide for the
following in its bye-laws:- (a) Authority
to administer the fund. (b) Amount
of contribution to be deducted from the employee’s salary. (c) Mode
of nomination for payment of the amount of the contributory provident fund in
case of employee's death. (d) Purpose
for which, the extent to which, and the period after which, advances may be
made against the security of such fund and the number of monthly instalments
in which advance is to be repaid. (e) Refund
of employees' contribution and contribution made by the society. (f) Maintenance
of accounts of such fund. (3) The
amount of contribution that can be deducted from the salary of an employees
of the multi-State cooperative society shall not be less than 8.33 per centum
of his basic salary. (4) The
multi-State cooperative society may make such contribution every year to the
employees' contributory provident fund as may be approved by the board. Such contribution shall not exceed 8.33 per
cent of the basic salary of the employee. Restriction on borrowings
of limited liability of multi-State cooperative society- No
multi-State cooperative society with limited liability shall accept deposits
or loans, or by any other way incur liability exceeding 10 times the sum of the paid-up share capital
plus accumulated reserves minus any losses. Provided
that the Central Registrar, for reasons to be recorded in writing, may permit
a multi-State cooperative society to incur liabilities exceeding the
aforesaid limit. 13. Maintenance of liquid resources and
distribution of assets- Every
multi-State cooperative society which obtains any portion of its working
capital by deposit, shall- (a) maintain
such liquid resources and in such form as may be specified by the Reserve
Bank of India in the case of those multi-State cooperative credit societies
which are coming under the purview of the Banking Regulation Act, 1949 (10 of
1949) and by the Central Registrar in
the case of other multi-State cooperative societies; and (b) utilise
only such portion of its working capital in lending business and distribute
its assets in accordance with such standards as may be specified from time to
time by the Central Registrar. 14. Share not to be hypothecated to the
multi-State cooperative society- The
share of a multi-State cooperative society shall not be hypothecated to the
society by its members as security for a loan. 15. Loan on security of non-members-
No
multi-State cooperative society shall make any loan to a member on a security
bond given by a non-member: Provided
that the Central Registrar may for reasons, to be recorded in writing, exempt
any multi-State cooperative society or class of multi-State cooperative
societies from the operation of this rule. CHAPTER III AUDIT AND ACCOUNTS 16. Books of accounts- Every
multi-State cooperative society shall keep books of account with respect to
:- (a) all
sums of money received and expended and the matters in respect of which the
receipt and expenditure take place; (b) all
sales and purchase of goods; (c) the
assets and liabilities; (d) in
the case of a multi-State cooperative society engaged in production,
processing and manufacturing, particulars relating to utilisation of
materials or labour or other items of costs as may be specified by the
Central Registrar. 17. Subject matter of audit- (1) The
audit of a multi-State cooperative society under sub-section(1) of section 67
shall include, in addition to the matters specified in sub-section(2) of that
section the following particulars: (a) Whether
the auditor has obtained all the information and explanations which, to the
best of his knowledge and belief are necessary for the purposes of his audit;
(b) whether
in his opinion proper books of accounts as specified in these rules and
bye-laws have been kept by the multi-State cooperative society so far as it
appears from the examination of those books and proper returns adequate for the purposes of
his audit have been received from the branches not visited by him; (c) Whether
the balance-sheet and profit & loss account exhibit a true & fair
view of the state of affairs of the multi-State Cooperative society according
to best of his information and explanation given to him and as shown by the
books of the multi-State cooperative society; and (d) Whether
there has been any material impropriety or irregularity in the expenditure or
in the realisation of money due to the multi-State cooperative society. (2) Where
in any of the matters referred to in sub-rule (1) the answer is in the
negative or in the affirmative with any remark, the auditor shall give
reasons for such answer with facts and figures in support of such
remarks. (3) The
audit report shall also contain schedules with particulars of:- (a) all
transactions which appear to be contrary to the provisions of the Act, the
rules or the bye-laws of the multi-State cooperative society; (b) Any
money belonging to the multi-State
cooperative society which appears to the auditor to be bad or doubtful of
recovery; (c) The
loans given by the multi-State cooperative society to the members of the
board; and (d) any
other matter as may be specified by the Central Registrar in this regard.
(4) The
auditor shall make his report to the multi-State cooperative society and also
send a copy of that report direct to the Central Registrar. The
Central Registrar may for reasons to be recorded in writing, direct that if
any portion of the audit report which appears to him of objectionable nature
or not justified, be expunged and the
portion so expunged shall not form part of the audit report. (5) The
audit report given by the auditors shall be considered by the board of a
multi-State cooperative society and placed before the general body with their
comments. (6) The
defects pointed out by the auditors in the working of the multi-State
Cooperative society shall be specifically considered by the board and a
compliance report explaining the measures taken to rectify the defects
be submitted to the Central Registrar
within three months of the receipt of the audit report. *Rule 18 *There is no rule under Serial No.18.
CHAPTER IV WINDING UP OF
MULTI-STATE COOPERATIVE SOCIETIES 19. Procedure to be adopted by liquidator- When
a liquidator has been appointed under sub-section (1) of section 80 the
following procedure shall be adopted: (a) The
appointment of the liquidator shall be notified by the Central Registrar in
the Official Gazette. (b) The
liquidator shall, as soon as the order of winding up of the multi-State
cooperative society takes effect, publish by such means as he may, think
proper, a notice, requiring all claims against the multi-State cooperative
society, the winding up of which has been ordered, to be submitted to him
within two months of the publication of the notice. All liabilities recorded in the account books
of a multi-State cooperative society shall be deemed ipso-facto to have been
duly submitted to him under this clause. (c) The
liquidator shall investigate all the claims against the multi-State
cooperative society and decide questions of priority arising between
claimants. (d) The
liquidator shall recover all sums and other properties to which the
multi-State cooperative society is entitled and may institute such suits for
that purpose or such suits incidental to liquidation proceedings as he may think
proper. (e) The
liquidator may empower any person, by general or special order in writing, to
make collections and to grant valid receipts on his behalf. (f) The
liquidator shall, after setting the assets and liabilities of multi-State
cooperative society as they stood on the date on which the order of winding
up is made, proceed next to determine from time to time the contribution
including debts due and costs of liquidation to be made or remaining 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 multi-State cooperative society, under
clause (b) of sub-section (2) of section 81.
Should necessity arise, he may also make a subsidiary order regarding
such contributions and such order shall be enforceable in the same manner as
the original order. (g) All
funds in the charge of the liquidator shall be deposited in the Post Officer
Savings Banks or in a cooperative bank or with such other banks as may be
approved by the Central Registrar and shall stand in his name. (h) The
Central Registrar shall fix the amount of remuneration, if any, to be paid to
the liquidator. The remuneration shall
be included in the cost of liquidation, which shall be payable out of the
assets of the multi-State cooperative society in priority of all other
claims. (i) The
liquidator may call for the meeting of the members of the multi-State
cooperative society under liquidation. (j) The
liguidator shall submit to the Central Registrar a quarterly report in such
form as the Central Registrar may, specify showing the progress made in
liquidation of the multi-State cooperative society. (k) The
liquidator shall keep such books and accounts as may from time to time be
specified by the Central Registrar who may at any time cause such books and
accounts to be audited. (l) At the conclusion of the liquidation,
the liquidator shall call for a general meeting of the members of the
dissolved society at which the liquidator or any other person authorised by
him, by special or general order in writing in this behalf, shall summarise,
the result of his proceedings and shall take a vote as to the disposal of any
surplus funds. The liquidator shall
submit his final report to the Central Registrar with a copy of the
proceedings of the general meeting referred to
above and make over to the Central Registrar all books and registers and
accounts etc., belonging to the multi-State cooperative society and all books
and accounts relating to the liquidation proceeding kept by him. (m) If
any liability cannot be discharged by the liquidator owing to the whereabouts
of the claimants not being known or for any other cause the amount covered by
such undischarged liability may be deposited in a Cooperative Bank and shall
be available for meeting the claims of the person or persons concerned.
(n) A
liquidator may, at any time, be removed by the Central Registrar and he shall on such removal be bound to
hand over all the property and documents relating to the society under
liquidation to such persons as the Central Registrar may direct. (0) All
the books and records of a multi-State Cooperative society whose registration
has been cancelled and the proceedings of liquidation of a multi-State Cooperative society ordered
to be wound up may be destroyed by the Central Registrar after the expiry of
three years from the date of the order cancelling the registration of the
multi-State Cooperative society. 20. Application of assets of the
multi-State Cooperative society- the
assets of the multi-State cooperative society shall be applied in order of
priority as given below for payment of the liabilities: (1) Pro-rata
payment of all outside liabilities. (2) Pro-rata
repayment of loans and deposits of members. (3) Pro-rata
refund of share capital. (4) Pro-rata payment of dividend on the
share at the rate not exceeding 6.25 per cent per annum for the period of
liquidation. 21. Disposal of surplus assets- for
the purpose of sub-section (b) of section 82 the surplus assets shall be
distributed among the members in proportion to the share capital held by the
members or in proportion to the business done by the members with the
multi-State Cooperative society as may be determined by the Central
Government before according sanction under sub-clause (b) of section 82. CHAPTER V EXECUTION OF DECREES,
ORDERS AND DECISIONS
22. Procedure in execution of decrees,
orders and decisions- (1) Any
decree-holder requiring the provisions of clause (c) of section 85 to be
applied, shall apply to the Recovery Officer
in whose jurisdiction the cause of action arose and shall deposit the
necessary costs as fixed by the Central Registrar. If the judgement-debtor resides or the
property to be proceeded against is situated outside the jurisdiction of such
Recovery Officer, the Recovery Officer shall transfer the application to the
Recovery Officer in whose jurisdiction the judgement-debtor resides or the
property is situated. (2) Every
such application shall be made in the form specified by the Central 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 Central Registrar and prepare a
demand notice in writing in duplicate in the form specified by the Central
Registrar, setting forth the name of the defaulter and the amount due and
forward it to the Sale Officer. (4) Unless
the decree-holder has expressed a desire that proceedings should be taken in
a particular order as laid down in sub-rule (2), execution shall ordinarily
be taken in the following manner: (i) 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; (ii) 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 rules shall be
observed: (a) the
Sale Officer, shall after giving previous notice to the decree-holder,
proceed to the village or place where the defaulter resides or the property
to be distrained is situated and serve a demand notice upon the defaulter if
he is present. If the amount due
together with the expenses be not at once paid, the Sale Officer shall make
the distress and shall immediately delivery 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 amount due are not previously discharged. If the defaulter is absent, the Sale
Officer shall serve the demand notice on some adult male member of his family, or on his authorised agent, or
when such service cannot be effected, 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
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. (b) 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 live-stock, the decree-holder shall be responsible for providing the necessary food therefor. The Sale Officer may, at the instance of
the defaulter or of any person claiming an interest in such property, leave
it in the village or place where it was attached, in the charge of such
defaulter or person, if he entered into a bond in the form specified by the
Central Registrar with one or more sufficient sureties for the production of
the property when called for. (c) The
distress shall be made after sunrise and before sunset and not at any other
time. (d) The
distress levied shall not be excessive, that is to say, the property
distrained shall be as nearly as possible proportionate to the sum due by the
defaulter together with interest and all expenses incidental to the
disgraint, detention and sale. (e) If
crops or ungathered 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 for gathered in due season and stored in proper
place until sold. In the latter case, the expense of reaping or gathering and
storing 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. (f) The
Sale Officer shall not work the bullocks or cattle, or make use of the goods or effect distrained, and he
shall provide the necessary food for the cattle or livestock, the expense
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.
(g) It
shall be lawful for the Sale Officer to force open any stable, cow house,
granary, godown, out-house or other building and he may also enter any
dwelling house, the outer door of which may be open and may break open the
door of any room in such dwelling house for the purpose of attaching property
belonging to a defaulter and lodged therein, provided always that it shall not be lawful for the officer to
break open or enter apartment in such dwelling house appropriate for the
zenana or residence of women except as hereinafter provided. (h) 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, 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 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 of
usage cannot appear in public, enter the zenana apartments for the purpose of
distraining the defaulter's property, if any, deposited therein, but such property,
if found, shall be immediately removed
from such property, if found, shall be immediately removed from such
apartments after which they shall be left free to the former occupants.
(i) 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 place in which the defaulter resides on two
consecutive days previous to the date of sale and on the day of sale prior to
the commencement of the sale and in such other place or places as the officer
may consider necessary to given due publicity to the sale. No sale shall take place until after the
expiration of the period of 15 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 exceed its value, the
Sale Officer may sell it at any time before the expiry of the said period of
15 days, unless the amount due is sooner paid. (j) 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,
further that the Sale Officer may, in his discretion, adjourn the sale to a
specified day and hour recording his reasons for such adjournment. Where a sale is so adjourned for a longer
period than 7 days, a fresh proclamation under clause (i) shall be made
unless the judgement debtor consents to waive it. (k) The
property shall be paid for in cash at the time of sale, 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 payment of purchase money, the property shall be resold. (l) Where
any property which has been attached under these rules has been forcibly or
clandestinely removed by any person, the Sale Officer may apply to a civil
court having jurisdiction for restoration of such property. Where the court is satisfied about the truth
of the facts, as alleged in the application, it may order forthwith such
property to be restored to the Sale Officer. (m) Where
prior to the day fixed for sale, the defaulter of 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. (n) The
movable property 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 servant or a servant of a local authority or a firm or a company, 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 the Code of
Civil Procedure, 1908 (5 of 1908) be with-held from such salary or allowances
or wages either in one payment or by monthly instalment as the Recovery
Officer may direct and upon receipt of the order, the officer of other person
whose duty it is to disburse such salary or allowance or wages shall withhold
and remit to the Sale Officer, the amount due under the order or the monthly
instalment, as the case may. (7) (i) where the property to be attached
consists 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. (ii) Where
the property to be attached is 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. (iii) 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. (8) (i) 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 if the decree sought to be attached was passed by the Central
Registrar or by any person to whom a dispute was transferred by the Central
Registrar under section 76, then by the order of the Central Registrar.
(ii) Where
the Central Registrar makes an order under clause (i) he shall on the application
of the decree-holder who has attached the decree, proceed to execute the attached decree and
apply the net proceeds in satisfaction of the decree sought to be executed.
(iii) The
holder of a decree sought to be executed by the attachment of another decree
of the nature specified in clause (i), shall be deemed to be the representative of the holder of the
attached decree and to be entitled to execute such attached decree in any
manner for the holder thereof. (iv) Where
the property to be attached in execution of a decree is a decree other than a
decree of the nature referred to in clause (i), the attachment shall be made
by the issue of a notice by the Recovery Officer to the holder of such decree
prohibiting him from transferring or charging the same in any way. (v0 The
holder of a decree attached under this sub-rule shall give the recovery
Officer executing the decree such information and aid as may reasonably be
required. (vi) 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 judgement-debtor bound by the decree attached;
and no payment or adjustment of the attached decree made by the
judgement-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 the attachment remains in force. (9) 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. (i) in
the case of a debt, the creditor from recovering the debt and the debtor from
making payment thereof; (ii) 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 (iii) in
the case of any other movable property, the person in possession of it from
giving it over to the defaulter. A
copy of such order shall be sent in the case of the debt to the debtor, in
the case of the share or deposit, to the proper officer of the corporation
and in the case of the other movable property 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) matures,
the Recovery Officer may direct the person concerned to pay the amount to
him. Where the share is not
withdrawable, the Recovery Officer shall arrange for its sale through a
broker. Where the share is
withdrawable, its value shall be paid to the Recovery Officer or to the party
referred to in clause (c). In the case
of other moveable property referred to in sub-clause (iii) of clause (c) the
person concerned shall place it in the
hands of the Recovery Officer when it becomes deliverable to the defaulter.
(10) 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. (11) In
the attachment and sale, or sale without attachment of immovable property,
the following rules shall be observed: (a) The
application presented under sub-rule (2) shall contain a description of the
immovable property to be proceeded against, sufficient for its identification
and in case such property can be identified by boundries or numbers in a
record of settlement or survey, the specification of such boundaries or
numbers and the specification of the defaulter's share or 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,
and the batta to be paid to the person who shall serve the demand notice, the
time allowed for payment and in case of non-payment, the particulars of the
properties to be attached and sold or
to be
sold without attachment, as the case may be. After receiving the demand notice, the Sale
Officer shall serve or cause to be served a copy of 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 proceeding against him is about to dispose of
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 attachment, as the case may be the immovable property noted in the
application for execution in the following manner. (d) Where
attachment is required before sale, the Sale Officer shall, if possible cause
a notice of attachment to 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 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 taluk office at least thirty day before the date fixed for
the sale and also by beat of drum in the village (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
fairly and accurately as possible: (i) the
property to be sold; (ii) any
encumbrances to which the property is liable; (iii) the
amount for the recovery of which sale is ordered; and (iv) 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 the 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(1), 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 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 adequate
reasons; Provided
further 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 7 days, a fresh proclamation under
clause(e) shall be made, unless the defaulter consents 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 the Recovery Officer. The time and place of sale shall be the
village where the property to be sold is situated or such adjoining prominent place of public resort as may be
fixed by the recovery officer: Provided
also that in cases where encumbrance certificate is not obtainable owing to
the destruction of the connected records an affidavit from the village
patwari or corresponding officer in regard to the encumbrances known to him
supported by a certificate from the
Registration Department that the encumbrances certificate cannot be
granted owing to the destruction of the connected records, shall be accepted
in 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 purchaser in the hands of the Sale Officer at the
time of the purchase and in default of such deposit, the property shall
forthwith be resold: Provided
that where the decree-holder is the purchaser and is entitle to set off the
purchase money under clause (k), the Sale Officer shall dispense with the
requirement of this clause. (h) The
remainder 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 stamps may, for good and
sufficient reasons, be extended at the discretion of the Recovery Officer up to 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 clause (h) the deposit may,
if the Recovery Officer thinks fit, after defraying the expenses of the sale,
be forfeited to the Central 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 satisfaction of the
decree in whole or in part accordingly. (12) Where
prior to the date fixed for a sale, the defaulter or any person acting on his
behalf or any person claiming an interest in the property sought to be sold
tenders payment of the full amount due together with interest, batta 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 after cancelling, where the
property has been attached, the order of attachment. (13)(i) Where immovable property has been sold by the Sale Officer, any
person either owning 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- (a) for
payment to the purchaser a sum equal to 5 per cent of the purchase money, and
(b) for
payment to the decree-holder, the amount of arrears specified in the
proclamation of sale as that for the recovery of which the sale was ordered
together with interest thereon and the expenses of attachment, if any, and
sale and sale and other costs due in respect of such amount, less amount
which may since the date of such proclamation have been received by the
decree-holder. (ii) If
such deposit and 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 purchase money so far as it has been deposited together
with 5 per cent deposited by the applicant: Provided
that if more persons than one have made deposit and application under this
sub-rule the application of the first depositor to the officer authorised to
set aside the sale, shall be accepted. (iii) If
a person applies 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. (14)(i) At any time within thirty days from the date of the sale of
immovable property, the decree-holder or any person entitled to share in a
rateable distribution of the assets or whose interests are effected by the
sale, may apply to the Recovery Officer to set aside the sale on the ground
of a material irregularity or mistake or fraud in publishing or conducting
it: Provided
that, no sale shall be set aside on the ground of irregularity or fraud
unless the Recovery Officer is satisfied that the applicant has sustained
substantial injury by reason of such irregularity, mistake or fraud. (ii) If
the application be allowed, the Recovery Officer, shall set aside the sale
and may direct a fresh one. (iii) 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 Recovery Officer shall make an order confirming the sale: Provided
that if he shall have reason to believe that the sale ought to be set aside
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. (iv) 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. (v) After
the confirmation of any such sale, the 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 shall have reason to doubt its genuineness. (vI0 An
order made under this sub-rule shall be final, and shall not be liable to be
questioned in any suit or other legal proceedings. (15) Where
any lawful purchaser of immovable property is resisted and prevented by any
person other then 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. (16) 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
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 of attachment, if any, and sale. (17) Persons
employed in serving notice or in other process under these rules shall be
entitled to batta at such rates as may from time to time be fixed by the
Recovery Officer. (18) Where
the cost and charges incurred in connection with attachment and sale of
movable property or the attachment and sale or sale without attachment of
immovable property under this rule, exceeds the amount of the cost deposited
from the sale proceeds of the property sold or the money paid by defaulter,
as the case may be and the balance shall be made available to the
decree-holder. (19) Every
person making a payment towards any money due for the recovery of which
application has been made under 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 behalf, such receipt shall state the name of the
person making the payment and the subject matter in respect of which the
payment is made. (20) (a) Where any claim is preferred to, or any
objection is made to 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 it of on the
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 the 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 to establish the right which the claim to the property
in dispute, but, subject to the result of such suit, if any, the order shall
be conclusive. (21) (i) Any deficiency of price which may
arise on a resale held under clause (j) of Sub-rule (11) by reason of the
purchaser's default and all expenses attending 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
cost, if any, incidental to such recovery shall be borne by the defaulting
purchaser. (ii) 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. (22) 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 proceeding to a future date. Upon the dismissal of such application, the
attachment shall cease. (23) Where
assets are held by the Sale Officer and before the receipt of such assets,
demand notices in pursuance of application 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 or realisation shall be rateably distributed by the Sale Officer
among all such decree--holders in the manner provided in section 73 of the
Code of Civil Procedure.1908 (5 of 1908). (24) Where
defaulter dies before the decree has been fully satisfied, an application
under sub-rule(1) 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.
23. Mode of making attachment before
judgement-
(1) Attachment of property under Section 87
shall be made in the manner provided in Rule 22. (2) where
a claim is preferred to property attached under Sub-rule(1) such claim shall be
investigated in the manner and by the authority specified in Rule22. (3) Where
a direction is made for the attachment of any property under sub-rule(1), the
Recovery Officer shall order the attachment to be withdrawn:- (a) when
the party concerned furnishes the security required, together with the
security for the costs of the attachment; or (b) when
the liquidator determines under clause (b) of sub-section (2) of section 81
that no contribution is payable by the party concerned; or (c) when
the Central Registrar passes an order under sub-section(1) of section 73 that
the party concerned need not repay or restore any money or property or
contribute any sum to the assets of the society by way of compensation; or (d) when
the dispute referred to in sub-section(1) of Section 76 has been decided
against the party at whose instance the attachment was made. (4) Attachment
made under Sub-rule (1) shall not affect the right existing prior to the
attachment of persons not parties to the proceedings in connection with which
the attachment was made, nor bar any person holding a decree against the
person whose property is attached from applying for the sale of the property
under attachment in execution of such decree. (5) Where
property is under attachment by virtue of the provisions of this rule and a
decree is subsequently passed against the person whose property is attached,
it shall not be necessary upon an application for execution of such decree to
apply for re-attachment of the property. 24. Mode of service of summon- (1) Every summon issued under the act or
these rules 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 a 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 or these rules on any person, may be effected
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 Central Registrar or other
authorised person by sending it to him by registered post acknowledgement
due; or (d) if
none of the means aforesaid is available, by affixing it in some conspicuous
part of his last known place of abode or business. (4) Where
the serving officer delivers or tenders a 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 as an acknowledgement of
service endorsed on the original summons. (5) The
serving officer shall in all cases in which the summons have 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 when 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 defendant to be summoned is a public officer or is a servant of a company
or a local authority, the officer issuing the summons may, if it appears that the summons may be
conveniently so served, send it by registered post acknowledgement due for
service on the party to be summoned, to the head of the office in which he is
employed to gether with a copy to be retained by the defendant. CHAPTER VI SOCIETIES WHICH BECOME
MULTI-STATE COOPERATIVE SOCIETIES CONSEQUENT ON REORGANISATION OF STATES 25. Preparation of a scheme for the
reconstitution or reorganisation of multi-State cooperative societies-
(1) The
Central Registrar or an authorised officer, shall prepare a scheme referred
to in sub-section(2) of section 95 for the reconstitution or reorganisation
of any multi-State cooperative society rendered as such, consequent on the
reorganisation of the states and referred to in sub-section (1)of section 95,
and forward a copy of the scheme to the President or the Chairman of the
multi-State cooperative society with the direction that the scheme be placed
before a meeting of the general body
of the multi-State cooperative society specially convened for the purpose.
(2) The
meeting referred to in sub-rule (1) shall be convened not less than 40 days
after the date of issue of the notice to the members and the creditors of the
multi-State cooperative society in the manner specified in sub-rule(3).
(3) A
written notice specifying the date, hour and place of meeting and the
business to be transacted there at shall be given to every member and shall
be accompanied by a copy of the scheme to be considered at the meeting. The notice to each member and creditor
shall:- (i) be
delivered or tendered to him in person; (ii) be
sent to him by registered post; or (iii) be
served on him in such other manner as may be specified in the bye-laws of the
society. (4) Notwithstanding
anything to the contrary contained in any rule of bye-law governing the
multi-State cooperative society, where the Central Registrar or the
authorised officer in this behalf is satisfied that the President or Chairman
of the society has failed to convene the special meeting as required under
sub-rule(1), the Central Registrar or the authorised officer, as the case may
be, shall convene a meeting of the general body of the multi-State
cooperative society by giving 14 days notice to all the members and creditors
of the multi-State cooperative society. CHAPTER VII MISCELLANEOUS 26. Address of a multi-State cooperative
society-
The
bye-laws of every multi-State cooperative society shall contain the address
of the society to which all notices and communications may be sent. The address of the multi-State cooperative
society shall include the name of the State, the district, post office and
the village or town. Any change in the
address of the multi-State cooperative society shall be communicated to the
Central Registrar within a month of such change. 27. Repeal and saving- (1) The Multi-Unit Cooperative Societies
Rule, 1958 are hereby repealed. (2) Notwithstanding
such repeal, anything done or any action taken under any of the rules so
repealed shall, unless such thing or action is inconsistent with the
provisions of these rules, be deemed to have been done or taken under the
corresponding provisions of these rule. (No.L-11012/1/84-L&M) K.N.
ARDHANAREESWARAN, Addl.Secy. |
THE MULTI-STATE COOPERATIVE
SOCIETIES ACT, 1984
NO.51 OF 1984
( 18th August, 1984)
An Act to consolidate and amend the
law relating to cooperative societies with objects not confined to one State
and serving the interests of members in more than one State.
Be it enacted by Parliament in the
Thirty-fifth Year of the Republic of India as follows:
CHAPTER 1
PRELIMINARY
1. Short title, extent and
commencement -
(1) This Act may be called the
Multi-State Cooperative Societies Act, 1984.
(2) It extends to the whole of
India.
(3) It shall come into force on such
date as the Central Government may, by notification in the Official Gazette,
appoint.
2. Application -
This Act shall apply to :
(a) All cooperative societies, with
objects not confined to one State, which were incorporated before the
commencement of this Act,
(i) under the Cooperative Societies
Act, 1912, or
(ii) under any other law relating to
cooperative societies in force in any State or in pursuance of the Multi-unit
Cooperative Societies Act, 1942, and the registration of which has not been
cancelled before such commencement; and
(b) all multi-State cooperative
societies.
3. Definitions-
In this Act, unless the context
otherwise requires:
(a) "board" means the
board of directors or the governing body of a multi-State cooperative society
by whatever name called, to which the direction and control of the management
of the affairs of the society is entrusted;
(b) "bye-laws" means the
bye-laws for the time being in force which have been duly registered under this
Act and includes amendments thereto which have been duly registered under this
Act;
(c) "Central Registrar"
means the Central Registrar of Cooperative Societies appointed under
sub-section (1) of section 4 and includes any officer empowered to exercise the
powers of the Central Registrar under sub-section (2) of that section;
(d) "Chief Executive" means
a Chief Executive of a multi-State cooperative society appointed under section
44;
(e) "cooperative bank"
means a multi-State cooperative society which undertakes banking business;
(f) "cooperative
principles" means the cooperative principles specified in the First
Schedule;
(g) "cooperative society"
means a society registered or deemed to be registered under any law relating to
cooperative societies for the time being in force in any State;
(h) "cooperative year", in
relation to any multi-State cooperative society or class of such societies,
means the year ending on the 30th day of June and where the accounts of such
society or class of such societies are, with the previous sanction of the
Central Registrar, balanced on any other day, the year ending on such day;
(i) "Deposit Insurance
Corporation" means the Deposit Insurance and Credit Guarantee Corporation
established under section 3 of the Deposit Insurance Corporation Act, 1961;
(j) "member" means a
person joining in the application for the registration of a multi-State
cooperative Society and includes a person admitted to membership after such
registration in accordance with the provisions of this Act, the rules and the
bye-laws;
(k) "multi-State cooperative
society" means a society registered or deemed to be registered under this
Act and includes a national cooperative society;
(l) "multi-State cooperative
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,
there-by undertake to contribute to the assets of the society, in the event of
its being wound up;
(m) "national cooperative
society" means a multi-State cooperative society specified in the Second
Schedule;
(n) "notification" means a
notification published in the Official Gazette;
(o) "officer" means a
president, vice-president, chairman, vice-chairman, managing director,
secretary, manager, member of a board, treasurer, liquidator, an administrator
appointed under section 48 and includes any other person empowered under this
Act or the rules or the bye-laws to give directions in regard to the business
of multi-state cooperative society;
(p) "Prescribed" means
prescribed by rules;
(q) "Reserve Bank" means
the Reserve Banks of India constituted under the Reserve Bank of India Act,
1934;
(r) "rules" means the
rules made under this Act,
CENTRAL REGISTRAR AND REGISTRATION
OF SOCIETIES
4. Central Registrar -
(1) The Central Government may
appoint a person to be the Central Registrar of Cooperative Societies and may
appoint such other persons as it may think fit to assist the Central Registrar.
(2) The Central Government may, by
notification, direct that any power exercisable by the Central Registrar under
this Act (other than the power of registration of a multi-State cooperative
society) shall in relation to such society, and such matters as may be
specified in the notification be exercisable also by any other officer of the
Central Government or of a State Government as may be authorised by the Central
Government subject to such conditions as may be specified there in;
Provided that no officer of a State
Government shall be empowered to exercise such power in relation to a national
cooperative society;
Provided further that no officer of
a State Government below the rank of the Registrar of Cooperative Societies
shall be empowered to exercise any power exercisable by the Central Registrar
under Section 87.
5. Multi-State Cooperative Societies
which may be registered -
(1) No multi-State cooperative
society shall be registered under this Act, unless the main objects of the
society are to serve the interests of members in more than one State.
(2) Subject to the provisions of
sub-section (1), a multi-State cooperative society, which has as its objects
the promotion of the economic and social betterment of its members through
mutual aid in accordance with the cooperative principles or a multi-State
cooperative society established with the object of facilitating the operations
of other such societies or of cooperative societies or of both may be
registered under this Act.
(3) The word "Limited" or
its equivalent in any Indian language shall be suffixed to the name of every
multi-state cooperative society registered under this Act with limited
liability.
6. Application for registration -
(1) For the purposes of registration
of a multi-state cooperative society under this Act, an application shall be
made to the Central Registrar in such form and with such particulars as may be
prescribed.
(2) The application shall be signed
-
(a) in the case of a multi-State
cooperative society of which all the members are individuals, by at least fifty
persons from each of the States concerned;
(b) in the case of a multi-State
cooperative society of which the members are cooperative societies, by duly
authorised representatives on behalf of at least two such societies as are not
registered in the same state; and
(c) in the case of a multi-State
cooperative society of which another multi-State cooperative society and other
cooperative societies are members, by duly authorised representatives of each
of such societies;
Provided that not less than two of
the cooperative societies referred to in clause (b) or clause (c) as the case
may be, shall be such as are not registered in the same State.
(3) The application shall be
accompanied by four copies of the proposed bye-laws of the multi-State
cooperative society and the persons by whom or on whose behalf such application
is made shall furnish such information in regard to the society as the Central
Registrar may require.
7. Registration -
(1) If the Central Registrar is
satisfied -
(a) that the application complies
with the provisions of this Act and the rules;
(b) that the proposed multi-State
cooperative society satisfies the basic criterion that its objects are to serve
the interests of members in more than one State;
(c) that there is no other
multi-State cooperative society having similar area of operation and identical
objects;
(d) that the proposed bye-laws are
not contrary to the provisions of this Act and the rules; and
(e) that the proposed multi-State
cooperative society has reasonable prospects of becoming a viable unit,
he may register the multi-State
cooperative society and its bye-laws.
(2) Where the Central Registrar
refuses to register a multi-State cooperative society, he shall communicate the
order of refusal together with the reasons therefor, to such number of the
applicants and in such manner as may be prescribed.
(3) The application for registration
shall be disposed of by the Central Registrar within a period of six months
from the date of receipt thereof by him:
Provided that if the Central
Registrar is unable to dispose of the application within the period aforesaid,
he shall make a report to the Central Government stating therein the reasons
for his inability to do so, and the Central Government may allow him such
further period or periods as is considered necessary to dispose of such
application.
8. Registration certificate -
Where a multi-State cooperative
society is registered under this Act, the Central Registrar shall issue a
certificate of registration signed by him, which shall be conclusive evidence
that the society therein mentioned is duly registered under this Act, unless it
is proved that the registration of the society has been cancelled.
9. Amendment of bye-laws of a
multi-State Cooperative Society -
(1) No amendment of any bye-laws of
a multi-State Cooperative society shall be valid, unless such amendment has
been registered under this Act.
(2) Every proposal for such
amendment shall be forwarded to the Central Registrar and if the Central
Registrar is satisfied that the proposed amendment -
(a) is not contrary to the
provisions of this Act or of the rules;
(b) does not conflict with
cooperative principles; and
(c) will promote the economic
interests of the members of the multi-State cooperative society,he may register
the amendment within a period of six months from the date of receipt thereof by
him.
Provided that if the Central
Registrar is unable to register the amendment within the period aforesaid he
shall make a report to the Central Government stating therein the reasons for
his inability to do so, and the Central Government may allow him such further
period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall
forward to the multi-State cooperative society a copy of the registered
amendment together with a certificate signed by him and such certificate shall
be conclusive evidence that the amendment has been duly registered.
(4) Where the Central Registrar
refuses to register an amendment of the bye-laws of a multi-State cooperative
society, he shall communicate the order of refusal together with the reasons
therefor to the Chief Executive of the society in the manner prescribed within
seven days from the date of such refusal.
10. When amendment of bye-laws comes
into force -
An amendment of the bye-laws of a
multi-State Cooperative society shall, unless it is expressed to come into
operation on a particular day, come into force on the day on which it is
registered.
11. Change of name -
(1) A multi-State cooperative
society may, by an amendment of its bye-laws, change its name but such change
shall not affect any right or obligaton of the multi-State cooperative society
or of any of its members or past members, and any legal proceedings which might
have been continued or commenced by or against the multi-State cooperative
society by its former name may be continued or commenced by or against its new
name.
(2) Where a multi-State cooperative
society changes its name, the Central Registrar shall enter the new name on the
register of multi-State cooperative societies in place of the former name and
shall amend the certificate of registration accordingly.
12. Change of address-
Every multi-State cooperative
society shall have a principal place of business and an address registered in
the manner prescribed to which all notices and communications may be sent and
any change in the principal place of business of a multi-State cooperative
society shall be made with the previous approval of the Central Registrar.
13. Liability-
(1) No multi-State cooperative
society with unlimited liability shall be registered after the commencement of
this Act:
Provided that where a multi-unit
cooperative society with unlimited liability was functioning before the
commencement of this Act, such a society shall exercise the option within a
period of one year from such commencement either to continue to function as
such or to convert itself into a multi-State cooperative society with limited
liability by following the procedure specified in sub-sections (2) to (4).
(2) Subject to the provisions of this
Act and the rules, a multi-unit cooperative society may, by an amendment of its
bye-laws, change the extent of its liability.
(3) When a multi-unit cooperative
society has passed a resolution to change the extent of its liability, it shall
give notice thereof in writing to all its members and creditors, and,
notwithstanding anything contained in the bye-laws or contract to the contrary,
any member or creditor shall, during the period of one month from the date of
service of the notice upon him, have the option of withdrawing his shares,
deposits or loans, as the case may be.
(4) Any member or creditor who does
not exercise his option within the period specified in sub-section (3) shall be
deemed to have assented to the change.
(5) An amendment of a bye-law of a
multi-unit cooperative society changing the extent of its liability shall not
be registered or shall not take effect until either-
(a) the assent thereto of all
members and creditors has been obtained: or
(b) all claims of members and
creditors who exercise the option referred to in sub-section (3) within the
period specified therein have been met in full or otherwise satisfied.
14. Amalgamation or transfer of
assets and liabilities or division of multi-State Cooperative Societies--
(1) A multi-State cooperative
society may, with the prior consultation of the Central Registrar and by a
resolution passed by a majority of not less than two-thirds of the members
present and voting at a general meeting of the society held for the purpose,-
(a) transfer its assets and
liabilities in whole or in part to any other multi-State cooperative society or
cooperative society;
(b) divide itself into two or more
multi-State cooperative societies;
(c) divide itself into two or more
cooperative societies.
(2) Any two or more multi-State
cooperative societies may, with the prior consultation of the Central Registrar
and by a resolution passed by a majority of not less than two-thirds of the
members present and voting at a general meeting of each such society, amalgamate
themselves and form a new multi-State cooperative society.
(3) The resolution of a multi-State
cooperative society under sub-section (1) or sub-section (2) shall contain all
particulars of the transfer or division or amalgamation, as the case may be:
Provided that in the case of a
cooperative bank, the Central Registrar shall not accord approval to any such
resolution without the previous sanction in writing of the Reserve Bank.
(4) When a multi-State cooperative
society has passed a resolution under sub-section (1) or sub-section (2), it
shall give notice thereof in writing to all the members and creditors and,
notwithstanding anything contained in the bye-laws or contract to the contrary,
any member or creditor, shall, during the period of one month of the date of
service of the notice upon him, have the option of withdrawing his shares,
deposits or loans, as the case may be.
(5) Any member or creditor who does
not exercise his option within the period specified in sub-section (4) shall be
deemed to have assented to the proposals contained in the resolution.
(6) (a) A resolution passed by a
multi-State cooperative society under this section shall not take effect until
the assent thereto of all the members and creditors has been obtained.
(b) The multi-State cooperative
society shall make arrangements for meeting in full or otherwise satisfying all
claims of the members and creditor who exercise the option within the period
specified in sub-section (4).
(7) On receipt of an application for
the registration of new societies formed by division in accordance with the
resolution passed under sub-section (1) or of a new society formed by
amalgamation in accordance with the resolution passed under sub-section (2),
the Central Registrar, on being satisfied that the resolution has become
effective under sub-section (6) shall, unless for reasons to be recorded in
writing he thinks fit to refuse so to do, register the new societies or
society, as the case may be, and the bye-laws thereof.
(8) On the issue of an order under
sub-section (7), the provisions of section 17 shall; so far as may be, apply to
the multi-State cooperative society so divided or the multi-State cooperative
societies so amalgamated.
(9) Where a resolution passed by a
multi-State Cooperative Society under this section involves the transfer of any
assets and liabilities, the resolution shall, notwithstanding anything
contained in any other law for the time being in force, be a sufficient
conveyance to vest the assets and liabilities in the transferee without any
further assurance.
15. Central Registrar to prepare
scheme of amalgamation or reorganisation of cooperative bank in certain cases -
When an order of moratorium has been
made by the Central Government under sub-section (2) of section 45 of the Banking
Regulation Act, 1949 in respect of a cooperative bank, the Central Registrar,
with the previous approval of the Reserve Bank in writing, may, during the
period of moratorium, prepare a scheme -
(a) for the amalgamation of the
cooperative bank with any other cooperative bank; or
(b) for the reorganisation of the
cooperative bank.
16. Liability of a cooperative bank
to the Deposit Insurance and Credit Guarantee Corporation -
Notwithstanding anything contained
in section 14 or any other provision of this Act, were a cooperative bank,
being an insured bank within the meaning of the Deposit Insurance and Credit
Guarantee Corporation Act, 1961, is amalgamated or reorganised 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 the Act, the bank with which such
insured bank is amalgamated, or the new cooperative bank found 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 and Credit Guarantee Corporation Act, 1961.
17. Cancellation of registration
certificate of multi-State cooperative societies in certain cases -
(1) Where the whole of the assets
and liabilities of a multi-state cooperative society are transferred to another
multi-State cooperative society or to a cooperative society in accordance with
the provisions of section 14, the registration of the first mentioned
multi-State cooperative society shall stand cancelled and the society shall be
deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more multi-State
cooperative societies are amalgamated into a new multi-State cooperative
society in accordance with the provisions of section 14, the registration of
each of the amalgamating societies shall stand cancelled on the registration of
the new society, and each of the amalgamating societies shall be deemed to have
been dissolved and shall cease to exist as a corporate body.
(3) Where a multi-State cooperative
society divides itself into two or more multi-State cooperative societies or
two or more cooperative societies in accordance with the provisions of section
14, registration of that society shall stand cancelled on the registration of
the new societies, and that society shall be deemed to have been dissolved and
shall cease to exist as a corporate body.
(4) The amalgamation or division of
multi-State cooperative societies shall not in any manner whatsoever effect any
right or obligation of the resulting multi-State cooperative society or
societies or render defective any legal proceedings by or against the
multi-State cooperative society or societies, and any legal proceedings that
might have been continued or commenced by or against the multi-State
cooperative society or societies, as the case may be, before the amalgamation
or division may be continued or commenced by or against the resulting
multi-State cooperative society or societies.
18. Conversion of cooperative
society into multi-State Cooperative Society-
(1) A cooperative society may, by an
amendment of its bye-laws, extend its jurisdiction and convert itself into a
multi-State cooperative society:
Provided that no such amendment of
bye-laws of a cooperative society shall be valid unless it has been registered
by the Central Registrar.
(2) (a) Every proposal for such
amendment shall be forwarded to the Central Registrar.
(b) If the Central Registrar, after
consulting the Registrars of Cooperative Societies of the States concerned, has
satisfied himself that such amendment fulfils the requirement of sub-section
(2) of section 9, he may register the amendment within a period of six months
from the date of receipt thereof by him:
Provided that if the Central
Registrar is unable to register the amendment within the period aforesaid, he
shall make a report to the Central Government stating therein the reasons for
his inability to do so, and the Central Government may allow him such further
period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall
forward to the cooperative society a copy of the registered amendment together
with a certificate signed by him and such certificate shall be conclusive
evidence that the amendment has been registered.
(4) Where the Central Registrar
refuses to register an amendment of the bye-laws of a cooperative society, he
shall communicate the order of refusal together with the reasons therefor to
the society in the manner prescribed within seven days from the date of
refusal.
(5) (a) Once the amendment of
bye-laws has been registered by the Central Registrar, the cooperative society
shall, as from the date of registration of amendment, become a multi-State
cooperative society.
(b) The Central Registrar shall
forward to the cooperative society a certificate signed by him to the effect
that such society has been registered as a multi-State cooperative society
under this Act and also forward a copy of the same to the Registrar of
Cooperative Societies of the State concerned.
(c) The Registrar of Cooperative
Societies referred to in clause (b) shall thereupon make an order directing
that the society had, as from the date of registration by the Central
Registrar, ceased to be a society under the law relating to cooperative
societies in force in that State.
CHAPTER III
MEMBERS OF MULTI-STATE COOPERATIVE SOCIETIES
AND THEIR RIGHTS AND LIABILITIES
19. Persons who may become members -
(1) No person shall be admitted as
member of a multi-State cooperative society except the following, namely :-
(a) an individual competent to
contract under section 11 of the Indian Contract Act, 1872;
(b) any multi-State cooperative
society or any cooperative society;
(c) the Central Government;
(d) a State Government;
(e) the National Cooperative
Development Corporation established under the National Cooperative Development
Corporation Act, 1962;
(f) any other corporation owned or
controlled by Government;
(g) any Government company as
defined in section 617 of the Companies Act, 1956;
(h) such class or classes of persons
or association of persons as may be permitted by the Central Registrar having
regard to the nature and activities of a multi-State cooperative society;
(2) Such number of individuals
possessing such qualifications as may be prescribed may be admitted as members
of the National Cooperative Union of India Limited, New Delhi.
(3) Save as otherwise provided in sub-section
(2) and notwithstanding anything contained in sub-section (1) no individual
shall be eligible for admission as a member of a national cooperative society.
(4) Any person eligible for
membership of a multi-State cooperative society may, on his application, be
admitted as a member by such society.
(5) Every application for admission
as a member of a multi-State cooperative society shall be disposed of by such
society within a period of four months from the date of receipt of the
application, and the decision of such society on the application shall be
communicated to the applicant within fifteen days from the date of such
decision:
Provided that if the application is
not disposed of within the period aforesaid, or the decision is not
communicated within a period of fifteen days of the expiry of the aforesaid
period of four months, the multi-state cooperative society shall be deemed to
have made a decision, on the date of expiry of such period, refusing admission
to the applicant.
(6) Notwithstanding anything
contained in this section, the Central Government may, having regard to the
fact that the interest of any person or class of persons conflicts or is likely
to conflict with the objects of any multi-State cooperative society or class of
multi-State cooperative societies, by general or special order published in the
Official Gazette, declare that any person or class of persons engaged in or
carrying on any profession, business or employment shall be disqualified from
being admitted, or for continuing, as members or shall be eligible for
membership only to a limited extent of any specified multi-State cooperative
society or class of multi-State cooperative societies, so long as such person
or persons is or are engaged in or carrying on that profession, business or
employment, as the case may be.
20. Members not to exercise rights
till due payment made -
No member of a multi-State
cooperative society shall exercise the rights of a member, unless he has made
such payments to the society in respect of membership, or has acquired such
interest in the society, as may be specified in the bye-laws.
21. Expulsion of members -
(1) A multi-State cooperative
society may, by resolution passed by a majority of not less than two thirds of
the members present and voting at a general meeting of members held for the
purpose, expel a member for acts which are detrimental to the proper working of
the society;
Provided that the member concerned
shall not be expelled unless he has been given a reasonable opportunity of
making representation in the matter.
(2) No member of the multi-State
cooperative society who has been expelled under sub-section(1) shall be
eligible for readmission as a member of that society, for a period of three
years from the date of such expulsion:
Provided that the Central Registrar
may, on application of the multi-State cooperative society and if satisfied
that in the special circumstances of the case, it is necessary so to do in the
interests of the multi-State cooperative society, sanction the re-admission or
admission within the said period, of any such members as a member of the said
society.
22. Votes of members -
Every member of a multi-State
Cooperative society, including a member who is an employee of such society,
shall have one vote in the affairs of the society
Provided that -
(a) a member who is an employee of
such society shall not be entitled to vote -
(i) at an election of a member of
the board of such society.
(ii) in any general meeting convened
for framing the bye-laws of such society or any amendments thereto:
(b) in the case of an equality of
votes, the Chairman shall have a second or casting vote;
(c) where any of the authorities
referred to in clauses (c) to (g) of sub-section (1) of section 19 is a member
of a Multi-State cooperative society, each person nominated by such authority,
on the board, in accordance with the provisions contained in this Act and the
rules, shall have one vote;
(d) a multi-State cooperative
society, the members of which include cooperative societies or other
multi-State cooperative societies, may provide for an equitable system of
voting having regard to the membership of, and the extent of business carried
on by such cooperative societies, or multi-State cooperative societies and
other relevant circumstances.
23. Manner of exercising vote -
Every member of a multi-State
cooperative society shall exercise his vote in person and no member shall be
permitted to vote by proxy:
Provided that a multi-State
cooperative society or a cooperative society which is a member of another
multi-State cooperative society, may, subject to the provisions of sub-section
(3) of section 29 and the rules, appoint its representative to vote on its
behalf in the affairs of that other society.
24. Restrictions on holding of
shares -
No member, other than any of the
authorities referred to in clauses (c) to (g) of sub-section (1) of section 19
or a multi-State cooperative society or a cooperative society, shall hold more
than such portion of of the total share capital of the society (in no case
exceeding one-fifth thereof) as may be prescribed;
Provided that the Central Government
may, by notification, specify in respect of any class of societies a higher or
lower maximum than one-fifth of the share capital.
25. Restrictions on transfer of
shares or interest -
The transfer of the share or
interest of a member in the capital of a multi-State cooperative society shall
be subject to such conditions as to maximum holding as are specified in section
24.
26. Redemption of share -
Shares held in a multi-State
Cooperative society by any of the authorities referred to in clauses (c) to (g)
of sub-section(1) of section 19 shall be redeemable in accordance with the
bye-laws of such multi-State cooperative society and in a case where the
bye-laws do not contain any provision in this regard, in such manner as may be
agreed upon between the multi-State cooperative society and such authority.
27. Transfer of interest on death of
members -
(1) On the death of a member of
multi-State cooperative 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 board 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 members share or interest as ascertained in
accordance with the rules;
Provided that no such transfer or
payment shall be made except with the consent of the nominee, heir or legal
representative, as the case may be;
(2) A multi-State cooperative
society shall, unless within six months of the death of the member prevented by
an order of a competent court, pay to such nominee, heir or legal
representative, as the case may be, all other moneys due to the deceased member
from the society.
(3) All transfer and payments made
by a multi-State cooperative 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.
28. Liability of past member and
estate of deceased member -
(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 multi-State cooperative society for the debts of the society as
they existed; -
(a) in the case of a past member, on
the date on which he ceased to be a member,
(b) in the case of a deceased
member, on the date of his death, shall continue for a period of two years from
such date.
(2) Notwithstanding anything
contained in sub-section(1), where a multi-State cooperative society is ordered
to be wound up under section 77, the liability of a past member who ceased to
be a member or of the estate of a deceased member who died within two years
immediately preceding the date of the order of 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 existed on the date of
cessation of membership or death, as the case may be.
CHAPTER IV
DIRECTION AND MANAGEMENT OF MULTI-STATE
COOPERATIVE SOCIETIES
29. General body, its constitution,
powers and functions -
(1) The general body of a
multi-State cooperative society shall consist of all the members of such
society;
Provided that where the bye-laws of
a multi-State cooperative society provide for the constitution of a smaller
body consisting of delegates of members of the society elected or selected in
accordance with such byelaws, that smaller body shall exercise such powers of
the general body as may be prescribed or as may be specified in the bye-laws of
the society.
(2) Subject to the provisions of
this Act, the rules and the bye-laws, the ultimate authority of a multi-State
cooperative society shall vest in the general body of its members:
Provided that nothing contained in
this sub-section shall affect the exercise by the board or any officer of a
multi-State cooperative society of any power conferred on such board or such
officer by this Act or the rules or the bye-laws.
(3) Where in any meeting of the
general body or the board of a multi-State cooperative society, a cooperative
society or another multi-State cooperative society is to be represented, such
cooperative society or other multi-State cooperative society shall be
represented in such meeting only through the Chairman or the Chief Executive of
such cooperative society or other multi-State cooperative society, as the case
may be, and where there is no board or such cooperative society or other
multi-State cooperative society, for whatever reasons, through the
administrator, by whatever name called, of such cooperative society or other
multi-State cooperative society.
30. Annual general meeting of the
general body -
(1) Every multi-State cooperative
society shall, within such period as may be prescribed, after the close of the
year, call a general meeting of its members in the manner prescribed for the
purpose of -
(a) consideration of the audit
report and annual report;
(b) disposal of net profits;
(c) approval of the programme of
activities for the ensuing year;
(d) amendment of bye-laws;
(e) election, if any, of the members
of the board, other than nominated members, subject to the provisions of
section 35;
Provided that the Central Registrar
may by general and special order, extend the period for holding such meeting
for a further period not exceeding three months.
Provided further that if in the
opinion of the Central Registrar no such extension is necessary or such meeting
is not called by the multi-State cooperative society within the extended
period, if any, granted by him, the Central Registrar or any person authorised
by him in this behalf may call such meeting in the manner prescribed, and that
meeting shall be deemed to be a general meeting duly called by the society and
the Central Registrar may order that expenditure incurred in calling such a
meeting shall be paid out of the funds of the society or by such person or
persons who, in the opinion of the Central Registrar, was or were responsible
for the refusal or failure to convene the general meeting.
(2) At every annual general meeting
of a multi-State cooperative society the board shall lay before the society a
statement showing the details of the loans or goods on credit, if any, given to
any of the members of the board or to the spouse or a son or daughter of a
member of the board during the preceding year or outstanding against him or
against such spouse or son or daughter of the member of the board.
31. Special general meeting of the
general body -
(1) The Chief Executive may, at any
time, on the direction of the board, 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 Central Registrar or from such member or
members or a proportion of the total number of members, as may be provided in
the bye-laws.
(2) If a special general meeting of
a multi-State cooperative society is not called in accordance with the requisition
referred to in sub-section (1), the Central Registrar or any person authorised
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 Chief Executive in
accordance with the provisions of that sub-section and the Central Registrar
may order that the expenditure incurred in calling such meeting shall be paid
out of the funds of the society or by such person or persons who, in the
opinion of the Central Registrar, was or were responsible for the refusal or
failure to convene the special general meeting.
32. Board of directors -
Subject to the provisions of this
Act and the rules, there shall be a board of directors for every multi-State
cooperative society consisting of such number of members as may be provided for
under the bye-laws.
33. Association of employees in the
management decision making process
Every multi-State cooperative
society shall devise such procedure, as may be specified in the bye-laws or in
the administrative instructions, for association of the representatives of
employees of such multi-State cooperative societies at such level or bodies as
may be specified in the bye-laws or the instructions issued in this regard, in
the management decision making process.
34. Disqualification for a member of
a board -
No member of any multi-state
cooperative society or nominee of a member-society on a national cooperative
society shall be eligible for being chosen as, or for being, a member of the
board of such multi-State cooperative society or national cooperative society
or of any other cooperative society to which the multi-State cooperative
society is affiliated. if such member -
(a) has been adjudged by a competent
court to be insolvent or of unsound mind;
(b) is concerned or participates in
the profits of any contract with the society;
(c) has been convicted for an
offence involving moral turpitude;
(d) holds any office or place of
profit under the society;
Provided that the Chief Executive or
such full-time employee of the society as may be notified by the Central
Government from time to time or a person elected by the employees of such
society to represent them on the Board of such society shall be eligible for
being chosen as, or for being, a member of such board;
(e) has been a member of the society
for less than twelve months immediately preceding the date of such election or
appointment;
(f) has interest in any business of
the kind carried on by the society of which he is a member;
(g) has taken loan or goods on credit
from the society of which he is a member, or is otherwise indebted to such
society and after the receipt of a notice of default issued to him by such
society, has defaulted -
(i) in repayment of such loan or
debt or in payment of the price of the good taken on credit, as the case may
be, within the date fixed for such repayment or payment or where such date is
extended, which in no case shall exceed six months, within the date so
extended, or
(ii) when such loan or debt or the
price of goods taken on credit is to be paid in instalments, in payment of any
instalment, and the amount in default or any part there of has remained unpaid
on the expiry of six months from the date of such default;
Provided that a member of the board
who had ceased to hold office as such under this clause shall not be eligible,
for a period of one year, from the date on which he ceased to hold office, for
reelection as a member of the board of the multi-State cooperative society of
which he was a member or for election to the board of any other multi-State
cooperative society;
(h) is a person against whom any
amount due under a degree, decision or order is pending recovery under this
Act;
(i) is retained or employed as a
legal practitioner on behalf of or against the multi-State cooperative society,
or on behalf of or against any other multi-State cooperative society which is a
member of the former society.
Explanation -
For the purposes of this clause
"legal practitioner" has the same meaning as in clause (i) of
sub-section (1) of Section 2 of the Advocates Act, 1961;
(j) has been convicted for any
offence under this Act.
35. Election of members of board -
(1) The superintendence, direction
and control of the preparation of the electoral rolls for, and the conduct of,
elections of the members of the board of such multi-State cooperative societies
or class of multi-State cooperative societies as the Central Government may, by
general or special order, notify, shall be vested in such returning officers as
may be appointed by the Central Registrar in this behalf.
(2) The vote at such elections shall
be by secret ballot.
(3) The term of office of the
elected members of the board shall be such, not exceeding three years from the
date of election, as may be specified in the bye-laws of a multi-State
cooperative society:
Provided that the elected members
shall continue to hold office till their successors are elected or nominated
under the provisions of this Act or the rules or the bye-laws and assume the
charge of their office.
(4) No person shall be eligible to
be elected as a member of the board of a multi-State cooperative society unless
he is a member of the general body of that society.
(5) The Central Government may make
rules generally to provide for or to regulate matters in respect of elections
of members of the board.
36. Holding of office in cooperative
society -
Notwithstanding any thing contained
in this Act, no person shall be eligible to hold, at the same time, office of a
president or chairman or vice-president or vice-chairman on the board of more
than one multi-State cooperative society:
Provided that any person holding, at
the commencement of this Act, the office of a president or chairman or
vice-president or vice-chairman in more than one multi-State cooperative
society shall, within three months from such commencement by notice in writing
signed by him, intimate the name of the multi-State cooperative society in
which he wishes to serve and thereupon his office in the other multi-State
cooperative society in which he does not wish to serve shall become vacant:
Provided further that in default of
such intimation within the period referred to in the preceding proviso, his
offices in all the multi-State cooperative societies shall, at the expiration
of the period aforesaid, become vacant.
37. Restrictions on holding of
office -
No person shall be eligible to hold
the office of a president or chairman or vice-president or vice-chairman on the
board of a multi-State cooperative society, after he has held the office as
aforesaid during two consecutive terms, whether full or part:
Provided that a person who has
ceased to hold the office of a president or chairman continuously, for one full
term of three years shall again be eligible for election to the offices
aforesaid.
Explanation -
Where any person holding the office
of the president or vice-president or chairman or vice-chairman at the
commencement of this Act is again elected to that office after such
commencement, he shall for the purpose of this section, be deemed to have held
office for one term before such election.
38. Payment of honorarium -
Honorarium may be paid to the
elected chairman or president of the board out of the profits of the
multi-State cooperative society in respect of specific services rendered by
him, subject to such restrictions and conditions as may be prescribed.
39. Removal of elected members by
general body -
An elected member of a board who has
acted adversely to the interests of multi-State cooperative society may, on the
basis of a report from the Central Registrar or otherwise, be removed from the
board upon a resolution of the general body passed at its meeting by a majority
of not less than two thirds of the members present and voting at the meeting.
Provided that the member concerned
shall not be removed unless he has been given a reasonable opportunity of
making representation in the matter.
40. Removal of member by Central
Registrar -
If in spite of cessation of office
under circumstances mentioned in Section 34, Section 36, Section 37 or Section
39 a member of the board refuses to vacate his office, the Central Registrar
shall, by order in writing, remove him from such office.
41. Nominee of Central Government or
State Government on the board -
(1) Where the Central Government or
a State Government has subscribed to the share capital of a multi - state
cooperative society or has guaranteed the repayment of principal and payment of
interest on debentures issued by a multi-State cooperative society or has
guaranteed the repayment of principal and payment of interest on loans and
advances to a multi-State cooperative society, the Central Government or the
State Government in this behalf, as the case may be, or any person authorised
by the Central Government or the State Government, shall have the right to
nominate on the board such number of persons as may be prescribed;
(2) The bye-laws of a multi-State
cooperative society may provide for the nomination of persons in excess of the
limits prescribed under sub-section(1).
(3) A person nominated under this
section shall hold office during the pleasure of the Government by which he has
been so nominated.
42. Powers and functions of the
board--
(1) The board may exercise all such
powers as may be necessary or expedient for the purpose of carrying out its functions
under this Act.
(2) Without prejudice to the
generality of the foregoing power, such power shall include the power --
(a) to admit members;
(b) to interpret the organisational
objectives and set up specific goals to be achieved towards these objectives;
(c) to make periodic appraisal of
operations;
(d) to appoint a Chief Executive and
such other employees of the society (out of the list of persons referred to in
section 50) as are not required to be appointed by the Chief Executive;
(e) to make provisions for
regulating the appointment of employees of the multi-State cooperative society
and the scales of pay, allowances and other conditions of service of, including
disciplinary action against, such employees;
(f) to approve annual and
supplementary budget;
(g) to acquire or dispose of
immovable property;
(h) to raise funds;
(i) to sanction loans to the
members; and
(j) to take such other measures or
to do such other acts as may be prescribed or required under this Act.
43. Meetings of the board--
(1) The Chief Executive shall
convene the meetings of the board at the instance of the chairman or president
of the multi-State cooperative society.
(2) The total number of meetings of
the board in a year and the venue of meetings may be such as may be prescribed:
Provided that the board shall meet
at least once in every quarter.
44. Chief Executive--
(1) There shall be Chief Executive,
by whatever designation called, of every multi-State cooperative society, to be
appointed by the board and he shall be a full-time employee of such multi-State
cooperative society.
(2) The Chief Executive shall be
member of the board and of the Executive Committee and such other committees or
sub-committees as may be constituted under sub-section (1) of section 46.
(3) The functional directors in
national cooperative societies shall also be members of the board.
(4) Where the Central Government has
subscribed to the extent of more than one-half of the share capital of a
national co-operative society, it shall be obligatory on such a society to seek
prior approval of the Central Government to the appointment of Chief Executive
and the functional directors.
45. Powers and functions of Chief
Executive--
The Chief Executive shall exercise
the powers and discharge the functions, specified below, namely:-
(a) day to day management of the
business of the multi-State Cooperative society;
(b) operating the accounts of the
multi-State cooperative society and be responsible for making arrangements for
safe custody of cash;
(c) signing of the documents for and
on behalf of the multi-State cooperative society;
(d) making arrangements for the
proper maintenance of various books and records of the multi-State cooperative
society and for the correct preparation, timely submission of periodical statements
and returns in accordance with the provisions of this Act, the rules and the
bye-laws;
(e) convening meetings of the
general body of the multi-State cooperative society, the board and the
Executive Committee and other committees or sub-committees constituted under
sub-section (1) of Section 46 and maintaining proper records for such meetings;
(f) making appointments to posts in
the multi-State cooperative society in accordance with the rules made under
clause (e) of Sub-section (2) of section 42 except the posts in relation to
which the power of appointment vests in the board under Clause (d) of that
sub-section;
(g) assisting the board in the
formulation of policies and objectives and planning;
(h) furnishing to the board
periodical information necessary for appraising the operations and functions of
the multi-State cooperative society;
(i) performing such other duties,
and exercising such other powers, as may be prescribed or as may be specified
in the bye-laws of the multi-State cooperative society.
46. Committees of the board -
(1) The board may, subject to such
conditions as may be prescribed, constitute an Executive Committee and other
committees or sub-committees, as may be considered necessary.
(2) The Executive Committee or other
committee or sub-committee referred to in sub-section (1) shall perform such
functions as are assigned to it in accordance with the bye-laws of the
multi-State cooperative society.
47. Central Government's power to
give directions in public interest -
If the Central Government is
satisfied that in the public interest or for the purposes of securing proper
implementation of cooperative production and other developmental programmes
approved or undertaken by the Central Government or to secure proper management
of business of the multi-State cooperative societies generally or for
preventing the affairs of the multi-State cooperative societies being conducted
in a manner detrimental to the interests of the members, any depositors or
creditors thereof, it is necessary to issue directions to any class of
multi-State cooperative societies generally or to any multi-State cooperative
society or societies in particular, the Central Government may issue directions
to them or to it, from time to time and all such multi-State cooperative
societies or the society concerned, as the case may be, shall be bound to
comply with such directions.
48. Supersession of board -
(1) If in the opinion of the Central
Registrar the board of any multi-State cooperative society is persistently
making default or is negligent in the performance of the duties imposed on it
by this Act or the rules or the bye-laws or has committed any act which is
prejudicial to the interests of the society or its members or has omitted or
failed to comply with any directions given to its under section 47 or that
there is a stalemate in the constitution or functions of the board, the Central
Registrar may after giving the board an opportunity to state its objections, if
any, and considering the objections, if received, by order in writing, remove
the board and appoint one or more administrators, who need not be members of
the society to manage the affairs of the society for such period not exceeding
one year; as may be specified in the order, which period may, at the discretion
of the Central Registrar, be extended from time to time; so, however, that the
aggregate period does not exceed two years.
(2) The Central Registrar may fix
such remuneration for the administrators as he may think fit and the
remuneration shall be paid out of the funds of the multi-State cooperative
society.
(3) The administrator shall subject
to the control of the Central Registrar and to such instructions as he may from
time to time give, have power to exercise all or any of the functions of the
board or of any officer of the multi-State cooperative society and take all
such actions as may be required in the interests of the society.
(4) Save as otherwise provided in
sub-section (5), the administrator shall, before the expiry of his term of
office, arrange for the constitution of a new board, in accordance with the
bye-laws of the multi-State cooperative society.
(5) If at any time during the period
of administrator is in office the Central Registrar considers it necessary or
expedient so to do, he may, by order in writing giving reasons therefor, direct
the administrator to arrange for the constitution of a new board for such
multi-State cooperative society in accordance with the bye-laws of such society
and immediately on the constitution of such board, the administrators shall
hand over the management of such society to such newly constituted board and
cease to function.
(6) Where a multi-State cooperative
society is indebted to any financial institution the Central Registrar shall,
before taking any action, under sub-section (1) in respect of that society,
consult the financial institution.
(7) Notwithstanding anything
contained in this Act, the Central Registrar shall, in the case of a
cooperative bank, if so required in writing by the Reserve Bank in the public
interests or for preventing the affairs of the cooperative bank being conducted
in a manner detrimental to the interests of the depositors or for securing the
proper management of a cooperative bank, pass an order for the supersession of
the board of that cooperative bank and for the appointment of an administrator
therefor for such periods not exceeding five years in the aggregate as may from
time to time be specified by the Reserve Bank.
49. Securing possession of records,
etc. -
(1) If -
(a) the records (including registers
and books of accounts) of a multi-State cooperative society are likely to be
tampered with or destroyed or the funds or other property of such society are
likely to be misappropriated or misapplied; or
(b) the board of a multi-State
cooperative society is reconstituted at a general meeting of the society; or
(c) the board of a multi-State
cooperative society is removed by the Central Registrar under sub-section (1)
of section 48; or
(d) a multi - State cooperative
society is ordered to be wound up under section 77 and the outgoing members of
the board refuse to hand over charge of the records and property of the society
to those having, or entitled to receive such charge, the Central Registrar may
apply to the magistrate within whose jurisdiction the multi-State cooperative
society functions for securing the records and property of the society.
(2) On receipt of an application
under sub-section (1), the magistrate may, by a warrant authorise any police
officer not below the rank of a sub-inspector to enter and search any place
where such records and property are kept or are believed to be kept and to
seize such records and property; and the records and property so seized shall
be handed over to the new board or administrator of the multi-State cooperative
society or the liquidator, as the case may be.
(3) Every such search and seizure
shall be made in accordance with the provisions of the Code of Criminal
Procedure, 1973.
50. Constitution of body of persons
for preparation of list, etc.-
The Central Government shall -
(a) constitute a body of persons in
the manner prescribed for the preparation of a list of persons eligible for
appointment to the posts of Chief Executive and other managerial posts in
national cooperative societies, the maximum pay-scale of which exceeds such
amount as may be prescribed;
(b) make rules for regulating the
recruitment, remuneration, allowances and other conditions of service of
officers and other employees of national cooperative societies.
51. Acts of multi-State cooperative
societies not to be invalidated by certain defects -
No act of a multi-State cooperative
society or of any board or of any committee or of any officers of the society
shall be deemed to be invalid by reason only of the existence of any defect in
the procedure or in the constitution of the society or of the board of the
committee thereof or in the appointment or election of an officer or on the
ground that such officer was disqualified to hold office.
CHAPTER V
PRIVILEGES OF MULTI-STATE COOPERATIVE SOCIETIES
52. Multi-State Cooperative Society
to be body corporate -
The registration of a multi-State
cooperative 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 contract, institute and defend suits and other legal
proceedings and to do all things necessary for the purposes for which it is
constituted.
53. Charge and set off, in respect
of share or contribution or interest of member -
A multi-State cooperative society
shall have a charge on the share or contribution or interest in the capital and
on the deposits of a member or past or deceased member and on any dividend,
bonus or profits payable to a member or past member or the estate of a deceased
member in respect of any debt due from such member or past member of the estate
of such deceased member to the society and may set off any sum credited or
payable to a member or past member or the estate of deceased member in or
towards payment of any such debt.
54. Share or contribution or
interest not liable to attachment -
(1) Subject to the provisions of
section 53, the share or contribution or interest of a member or past or
deceased member in the capital of a multi-State cooperative society shall not
be liable to attachment or sale under any decree or order of any court in
respect of any debt or liability incurred by such member and an official
assignee or a receiver under any law relating to insolvency shall not be
entitled to or have any claim on such share of contribution or interest.
(2) The reserve fund, or the bad
debt reserves, or the provident fund of the employees of a multi-State
cooperative society invested by such society in accordance with the provisions
of this Act and the rules shall not be liable to attachment under any decree or
order of a court in respect of any debt or liability incurred by the society.
55. Register of member -
Any register or list of members or
shares kept by any multi-State cooperative society shall be prima facie
evidence of any of the following particulars entered therein, namely -
(a) the date on which any person
entered in such register or list became a member;
(b) the date on which any such
person ceased to be a member.
56. Admissibility of copy of entry
as evidence -
(1) A copy of any entry in a book of
a multi-State cooperative society regularly kept in the course of its business
shall, if certifies in such manner as may be prescribed, be received in any
suit or legal proceedings as prima facie evidence of the existence of such
entry and shall be admitted as evidence of the matters, transactions and accounts
therein every case where and to the same extent as, the original entry itself
is admissible.
(2) No officer of a multi-State
cooperative society and no officer in whose office the books of a multi-State
cooperative 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 an order of a court or
an arbitrator made for a special cause.
57. Exemption from compulsory
registration of instruments -
Nothing in clauses (b) and (c) of
sub-section (1) of section 17 of the Registration Act, 1908, shall apply to -
(a) any instrument relating to
shares in a multi-State cooperative society notwithstanding that the assets of
the society consist in whole or in part of immovable property; or
(b) any debenture issued by any such
society and not creating, declaring, assigning, limiting or extinguishing any
right, title or interest to or in immovable property, except in so far as it
entitles the holder thereof to the security afforded by a registered instrument
whereby the society has mortgaged, conveyed or otherwise transferred the whole
or part of its immovable property or any interest therein to trustees upon
trust for the benefit of the holders of such debentures; or
(c) an endorsement upon or transfer
of any debenture issued by any such society.
58. Deduction from salary to meet
multi-State Cooperative Society's claim in certain cases -
(1) Notwithstanding anything
contained in any law for the time being in force, a member of a multi-State
cooperative society may execute an agreement in favour of that society
providing that his employer disbursing his salary or wages shall be competent
to deduct every month from the salary or wages payable to him, such amount as
may be specified in the agreement and pay the amount so deducted to the society
in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such
agreement the employer disbursing the salary or wages of the members shall, if
so required by the multi-State cooperative society by a requisition in writing
and so long as the society does not intimate that the whole of such debt or
other demand has been paid, make the deduction in accordance with the agreement
and pay the amount so deducted to the society within a period of fourteen days
of the date on which deduction has been made, as if it were a part of the
salary or wages payable on the day as required under the Payment of Wages Act,
1936, and such payment shall be valid discharge of the employer for his
liability to pay the amount deducted.
(3) If after the receipt of a
requisition made under sub-section (2) the employer disbursing the salary or
wages of the member at any time fails to deduct the amount specified in the
requisition from the salary or wages payable to the member concerned or makes
default in remitting the amount deducted to the multi-State cooperative
society, the society shall be entitled to recover any such amount from such
employer as arrears of land revenue and the amount so due from such employer
shall rank in priority in respect of the liability of such employer equal to
that of the salary or wages in arrears.
59. Government aid to multi-State
Cooperative Societies -
Notwithstanding anything contained
in any law for the time being in force, the Central Government or a State
Government may, with a view to promoting cooperative movement -
(a) subscribe to the share capital
of a multi-State cooperative society;
(b) give loans or make advances to a
multi-State cooperative society;
(c) guarantee the repayment of principal
and payment of interest on debentures issued by a multi-State cooperative
society;
(d) guarantee the repayment of share
capital of a multi-State cooperative society and dividends thereon at such
rates as may be specified by the Central Government or the State Government;
(e) guarantee the repayment of
principal and payment of interest on loans advances to a multi-State
cooperative society;
(f) give financial assistance in any
other form, including subsides, to any multi-State cooperative society.
CHAPTER VI
PROPERTIES AND FUNDS OF MULTI-STATE COOPERATIVE SOCIETIES
60. Funds not to be divided by way
of profit -
(1) No part of the funds, other than
net profits, of a multi-State cooperative society shall be divided by way of
bonus or dividend or otherwise distributed among its members.
(2) The net profits of a multi-State
cooperative society referred to in sub-section (1) in respect of a society
earning profit shall be calculated by deducting from the gross profits for the
year, all interest accrued and accruing in relation to amounts which are
overdue, establishment charges, interest payable on loans and deposits, audit
fees, working expenses including repairs, rent, taxes and depreciation, bonus
payable to employees under the law relating to payment of bonus for the tem
being in force, and equilisation fund for such bonus, provision for payment of
income-tax and making approved donations under the Income-tax Act, 1961,
development rebate, provision for development fund, bad debt fund, price
fluctuation fund, dividend equalisation fund, share capital, redemption fund,
investment fluctuation fund, provision for retirement benefits to employees,
and after providing for or writing off bad debt and losses not adjusted against
any funds created out of profit.
Provided further that in case of
such multi-State cooperative societies as do not have share capital, the
surplus of income over expenditure shall not be treated as net profits and such
surplus shall be dealt with in accordance with the bye-laws.
61. Disposal of net profits -
(1) A multi-State cooperative
society shall out of its net profits in any year -
(a) transfer an amount not less than
twenty-five per cent to the reserve fund, and
(b) credit such portion, as may be
prescribed, to the cooperative education fund maintained by the National
Cooperative Union of India Limited, New Delhi.
(2) Subject to such conditions as
may be prescribed, the balance of the net profits may be utilized for all or
any of the following purposes, namely;
(a) payment of dividend to members
on their paid-up share capital at a rate not exceeding the prescribed limit;
(b) constitution of, or contribution
to, such special funds including education funds, as may be specified in the
bye-laws;
(c) donation of amount not exceeding
five per cent of the net profits for any purpose as defined in section 2 of the
Charitable Endowments Act, 1890;
(d) payment of ex gratia amount to
employees of the multi-State cooperative society to the extent and in the
manner specified in the bye-laws.
(3) The funds of a multi-State
cooperative society shall not be utilised for any political purpose.
62. Investment of funds -
A multi-State cooperative society
may invest or deposit its funds -
(a) in a cooperative bank, State
cooperative bank, cooperative land mortgage bank, cooperative land development
bank or Central cooperative bank; or
(b) in any of the securities
specified in section 20 of the Indian Trusts Act, 1882; or
(c) in the shares or securities of
any other multi-State cooperative society or any cooperative society; or
(d) in the shares, securities or
assets of any other institution, with the previous approval of the Central
Registrar; or
(e) with any bank; or
(f) in such other mode as may be
prescribed.
Explanation -
In clause (e), "bank"
means any banking company as defined in clause (e) of section 5 of the Banking
Regulation Act 1949, and includes -
(i) the State Bank of India
constituted under the State Bank of India Act, 1955;
(ii) a subsidiary bank as defined in
clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act,
1959;
(iii) a corresponding new bank
constituted under section 3 of the Banking Companies (Acquisition and Transfer
of Under-takings) Act, 1970 or a corresponding new bank constituted under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1980.
63. Restrictions on loans -
(1) A multi-State Cooperative
society, other than a cooperative bank, shall not make a loan -
(a) to a member on the security or
his share or on the security of a non-member; or
(b) to a non-member;
Provided that with the general or
special sanction of the Central Registrar, a multi-State cooperative society
may make loans to another multi-State cooperative society.
(2) Notwithstanding anything
contained in sub-section (1), a multi-State cooperative society may make a loan
to a depositor on the security of his deposit.
64. Restrictions on borrowing -
A multi-State cooperative society
shall receive deposits and loans only to such extent and under such conditions
as may be specified in the bye-laws;
Provided that a cooperative bank
shall be governed by the provisions of the Banking Regulation Act, 1949.
65. Restrictions on other
transactions with non-members -
Save as provided in section 63 and
64, the transaction of a multi-State cooperative society with any person other
than a member shall be subject to such prohibitions and restrictions, if any,
as may be prescribed.
66. Contributory Provident Fund -
(1) A multi-State cooperative
society having such number or class of employees as may be prescribed may
establish a contributory provident fund for the benefit of such 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) Monies standing to the credit of
any contributory provident fund established by a multi-State cooperative
society under sub-section (1) shall not -
(a) be used in the business of the
society;
(b) form part of the assets of the
society;
(c) be liable to attachment or be
subject to any other process or any court or other authority.
(3) Notwithstanding anything
contained in this section, a provident fund established by a multi-State
cooperative society to which the provisions of the Employees' Provident Funds
and Miscellaneous Provisions Act, 1952, apply, shall be governed by that Act.
FORM 1
(See sub-rule (1) of rule3)
Application for registration of a multi-State cooperative society under the
Multi-State Cooperative Societies Act, 1984
To,
The Central Registrar of Cooperative
Societies
Sir,
We submit herewith a proposal for
registration of the following multi-State cooperative society along with
enclosures as indicated below:
2. We also declare that the
information given herewith including that in the enclosures is correct to the
best of our knowledge:
(a) Name of the proposed multi-State
cooperative society;
(b) Headquarters and address to be
registered;
(c) Area of operation;
(d) Main objectives;
(e) Why is it absolutely necessary
for the society to be registered under the Multi-State Cooperative Societies
Act, 1984;
(f) Is there any multi-State society
having similar area to operations and identical objectives;
(g) If all the members are
individuals, please indicate the number of persons from each State who have signed
the application:
Name of the State Number of persons
who have
signed the application
(h) Name and address of the
applicant for the purpose of further correspondence.
3. Following documents are enclosed:
(a) A certificate from the
...............................Bank stating credit balance therein favour of
the proposed multi-State cooperative society.
(b) A scheme explaining how the
proposed multi-State cooperative society has reasonable prospects of becoming a
viable unit. We are sending herewith four copies of the bye-laws duly signed.
4. Following persons are authorised
to sign the bye-laws and also to make necessary alteration therein.
5. The particulars of the applicants
are given hereunder:
_____________________________________________________________Sl.
Name If representing a if the applicant
corporate body, is an individual
name of the institution*
_____________________________________________________________
1 2 3 4
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
Age Nationality Profession Name of
the state
_____________________________________________________________
4A 4B 4C 5
_____________________________________________________________
_____________________________________________________________Address
Amount subscribed In the case of representative Signature
to share capital of society or a
multi-State
cooperative society, whether
he is Chairman/President or
Chief Executive of that society
_____________________________________________________________
6 7 8 9
_____________________________________________________________
_____________________________________________________________
FOR OFFICIAL USE
Received by registered post on
+...................by +..............in the office of the Central Registrar or
by hand from Shri +......................Entered in the register of application
at S.No......................
Signature of officer receiving
Received registration proposal
No.........................on...............for registration of
......................society Ltd.,(Proposed)alongwith the enclosures referred
to above from ...................by post/hand deliver.
Place..................... Central
Registrar
Date................... Signature
& Stamp
* If representing a cooperative or
any other cooperative body enclose a copy of the Resolution or authorisation of
the competent authority, authorising the person to sign the application for
registration.
+ Blanks to be filled in.
FORM II
(See sub-rule (1) of rule4)
Register of applications for
registration of multi-State cooperative societies received by the Central
Registrar.
_____________________________________________________________Sl.
Name of the proposed Complete Date of Date and
No. multi-State cooperative address
receipt and reference
society and the chief how received
number of
promoter acknowled-
gement
_____________________________________________________________
1 2 3 4 5
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________No.and
date on which Prescribed date by Date on which
additional information which
information additional information
is called is called received
_____________________________________________________________
6 7 8
_____________________________________________________________
_____________________________________________________________
No.and date of No.and date of
order of Initial Remarks
the report, if any,
sent to the Central Registration
Refusal
government, if the
society is not
registered within
6 months
_____________________________________________________________9
10 11 12 13
_____________________________________________________________
_____________________________________________________________
SCHEDULE
1. Procedure regarding conduct of
elections to the board of multi-State cooperative societies-
Notwithstanding anything contained
in the rules and without prejudice to the generality of the powers of the
Central Government in sub-section(1) of the section 35, the election of the
members of the board of directors of national cooperative societies specified
in the Second Schedule to the Act and such other multi-State cooperative
societies or class of multi-State cooperative societies, as the Central
Government may, by general or special order notify, shall be conducted by such
returning officers as may be
appointed by the Central Registrar
in this behalf. The election in such societies, shall be conducted in the
manner hereinafter provided:
2. Election programme-
(a) The board of directors in office
shall meet sixty clear days in advance of the date of expiration of its term
and by resolution determine the date, time and place for convening a general
body meeting for the conduct of elections of its successor board. This
provision will apply mutatis mutandis to such multi-state cooperative societies
as are under the charge of the administrator appointed under sub-section (1) of
section 48.
(b) A copy of the decision referred
to in sub-paragraph(a) shall forthwith be sent to the Central Registrar.
(c) On receipt of the decision
referred to in sub-paragraph (b), the Central Registrar shall appoint a
returning officer under sub-section (1) of section 35. The returning officer
shall shortly thereafter, send intimation by local delivery or by registered
post about the date, time and place of the general meeting to each of the
members of the multi-State cooperative society. Where other cooperative
societies or multi-State cooperative society. Where other cooperative societies
or multi-State cooperative societies are members, the returning officer shall
call on such societies to send the name of their Chairman or President or the
Chief Executive as a representative (hereinafter referred to as the delegate)
in accordance with the provisions contained in sub-section (3) of section 29
together with the resolution of the board of the society and the specimen
signature of the Chairman, President or the Chief Executive duly attested and
bearing the seal of the society so as to reach him at least 21 clear days prior
to the date fixed for the general meeting that he shall represent such society
in the general meeting. Where no such resolution or communication intimating
the name of delegate is received by the date fixed or where any intimation
changing the name of the delegate is received after such date, it shall not be
accepted for inclusion in the list of members/delegates of member-societies.
Fresh resolution shall be required for every general meeting at which election
shall be held.
(d) It shall be the duty of the
board of directors in office, or the administrator, as the case may be, to
bring up-to-date the register of members and such other registers, as the
returning officer may require and handover such records, register or registers
to the returning officer thirty days prior to the date fixed for the general
meeting for the purpose of election.
(e) The election shall be held at a
general meeting of the society convened for the purpose of which not less than
fourteen days notice shall be given to the members. Such elections shall take
place after all other matters included in the agenda have been considered. For
the conduct of elections, the returning officer shall preside over the meeting.
(f) The notice of the general
meeting shall be sent to the members by any of the following modes, namely:-
(i) by local delivery; or
(ii) by registered post
(g) Notice of the general meeting
shall also be affixed on the notice board of the multi-State cooperative
society and its branches, if any. The notice shall contain information regarding:
(i) the number of vacancies to be
filled by election;
(ii) the area of the constituency
(specified in the bye-laws)from which the members are to be elected;
(iii) the qualifications, if any,
specified in the bye-laws for eligibility for membership on the board;
(iv) the name of the returning
officer, date, place and the hours between which nomination paper shall be
filled by the members, such date being not less than one clear day before the
date fixed for election or if that happens to be a holiday the day preceding
which is not a public holiday.
Explanation: For the purpose of the sub-paragraph the term "public
holiday" means any day which is declared as a public holiday under section
25 of the Negotiable Instruments Act, 1881 (26 of 1881) or any day which has
been notified by the Central Government, or as the case may be the State
Government to be a public holiday for the offices of the Central Government or
the State Government:
(v) the date on which and the time
and place at which the nomination papers will be taken up for scrutiny;
(vi) the date and time of which, the
place at which and the hours between which polling will take place.
3. Preparation of list of
members/delegates-
(a) The multi-State cooperative
society shall prepare a list of members eligible to vote as it stood on the
date, thirty days prior to the date fixed for the poll and publish copies of
the list by affixing them on the notice board at the head office of the society
and all its branches, if any, not less than fifteen days prior to the date
fixed for election. The list shall specify:-
(i) the admission number and name of
the member, the name of the father or husband, and the address of such member
in the case of an individual member, and
(ii) the admission number, the name of
the society, name of the date proposed to represent the society, in the case of
a member society.
(b) A copy of the list shall be
supplied by the society to any member on payment of such fee as may be
specified by the board. Where no fees has been specified, the person authorised
as per bye-laws of the society shall supply such list on payment of an amount
of rupees five.
4. Nomination of candidate-
(a) Nomination of the candidate for
election shall be made in the Nomination Form attached to this Schedule which
on application shall be supplied by the returning officer or any other officer
authorised by him in this behalf, to any member free of cost.
(b) Every nomination paper shall be
signed by two members whose names are included in the list of the members/delegates.
One of the members shall sign the form as proposer and the other as seconder
for the nomination. The nomination paper shall also contain a declaration
signed by the candidate, expressing his willingness to stand for election.
(c) Every nomination paper shall be
presented in person or sent by registered post as acknowledgement due, by the
candidate himself or his proposer or seconder to the returning officer or any
person authorised by him in this behalf, so as to reach him before the date and
hour specified in the notice of meeting as per paragaraph2(g). The returning
officer or any officer authorised by him who receives the nomination paper
shall enter on the nomination paper its serial number and certify the date and
hour at which the nomination paper is received by him and shall immediately
give a written acknowledgement for the receipt of the nomination papers if
presented in person, which shall also bear the seal of the society. The
returning officer shall, at the close of the time fixed for the receipt of
nomination papers, prepare and display on the notice board of the society, a
list of nomination received by him. Any nomination papers, prepare and display
on the notice board of the society, a list of nomination received by him. Any
nomination paper which is not delivered or received on or before the date and
time fixed for its receipt, shall be rejected.
(d) No person shall be nominated as
a candidate for election to fill a seat on the board if he:
(i) is ineligible to vote;
(ii) is disqualified to be the
member/delegate under the provisions of the Act or a member of the board under
these rules; and
(iii) does not possess the necessary
qualifications specified in the bye-laws of the society for election as member
of the board.
5. Scrutiny of nomination papers-
(a) (i) On the day fixed for the
receipt of nomination papers, the returning officer shall, at the appointed
hours, take up the scrutiny of nomination papers. The candidate or the proposer
or seconder of each of the candidate may be present at the time and place when
nomination papers are scrutinised.
(ii) The returning officer shall
examine the nomination papers and shall decide all objections which may be made
by any candidate or his proposer or seconder in respect of any nomination and
may, either on such objection, or on his own motion and after such summary
enquiry, if any, as he thinks necessary, reject any nomination.
Provided that the nomination of a
candidate shall not be rejected namely on the ground of an incorrect description
of his name or the name of his proposer or seconder or of any other particulars
relating to the candidate or his proposer or seconder, as entered in the list
of members referred to in paragraph3(a) if the identity of the candidate,
proposer
or seconder, as the case may be, is
established beyond reasonable doubt.
(iii) The returning officer shall
endorse on each nomination paper his decision accepting or rejecting the same
as the case may be, and if the nomination paper is rejected, he shall record in
writing a brief statement of his reasons for such rejection.
(iv) The returning officer shall not
allow any adjournment of the proceedings except when proceedings are
interrupted or obstructed by riot or affray or by causes beyond his control.
(v) The list of valid nomination as
decided by the returning officer shall be published on the notice board of the
society containing the names in the alphabetical order in English and address
of the candidate as given in the nomination paper on the same day on which the
scrutiny of the nomination paper is completed.
(b) Any candidate may withdraw his
candidature by notice in writing signed by him and delivered in person or by
his proposer or seconder at any time after the presentation of the nomination
papers but before the date and time specified in paragraph2(g)(vi) for such
withdrawal. A notice of withdrawal of candidate once given shall be
irrevocable.
6. Voting-
(a) If for any area or constituency
for which election is to be held, the number of candidates whose nomination
papers have been declared valid, does not exceed the number of candidates to be
elected for that area or constituency, the returning officer shall at the
general meeting convened for the purpose of the election, declare them to have
been duly elected to the board. If the number of candidate whose nominations
are valid exceeds the number to be elected for any area or constituency, the
returning officer shall arrange for conducting a poll on the date and time
fixed for the purpose. The returning officer may appoint as many polling
officers as may be necessary for conducting the poll.
(b) A candidate contesting the
election may, by a letter to the returning officer, appoint an agent to
represent him where polling is held, to identify the voters and to watch the
recording of votes. Such letter shall contain the consent in writing of the
agent concerned.
(c) Canvassing of votes by any
person at the place where election are to be conducted shall be prohibited.
(d) Immediately before the
commencement of the poll, the returning officer shall show the empty ballot box
such persons as may be present at the time and shall then lock it up and affix
his seal in such manner as to prevent its being opened without breaking the
seal. The candidate or his agent may also affix his own seal, if he so desires.
(e) Every member delegate who
desires to exercise his right of vote shall be supplied with a ballot paper
containing the names of contesting candidates arranged in alphabetical order
either printed, typewritten or cyclostyled, according to convenience, on the
ballot paper. the ballot paper shall also bear the seal of the society and also
the initials of the returning officer and further contain a column, for the
voter to inscribe mark `X' against the name or names of the persons to whom he
wants to vote.
(f) Each polling station and where
there is more than one polling booth at a station, each such booth shall
contain a separate compartment in which the members/delegates can record their
votes in secrecy.
(g) Every member who desires to
exercise his votes shall enter the polling station with an identity card, if
any, given to him. The polling officer shall identify the member by putting
questions to him with reference to the list of members/delegates eligible to
vote in the polling station, furnished to him. If the polling officer is
satisfied about the identity of the member and if there is no objection from
any candidate or his polling agent present at the polling station, he shall
issue a ballot paper to him. On receipt of such ballot paper, the member shall
proceed to the polling compartment set apart for the purpose and indicate the
person or persons in whose favour he exercises his vote by inscribing a mark
`X' against the name of the candidate or candidates, as the case may be, and
put the ballot paper in the ballot box
kept for the purpose with utmost
secrecy. If owing to blindness or other physical infirmity or illiteracy a
member is unable to inscribe the mark on the ballot paper the polling officer,
and where no such polling officer is appointed, the returning officer shall
ascertain from him the candidate or candidates, in whose favour he desires to
vote, inscribe the mark`X' on his behalf and put the ballot paper in the ballot
box.
(h) (i) Every member whose name is
entered in the list of members/delegates eligible to vote, furnished to the
polling officer, is entitled to poll his vote, unless there is a challenge by
the candidate or his agent against his identity. If there is such a challenge
about the identity of a member or if the polling officer feels any reasonable
doubt, he shall then refer the matter to the returning officer who shall make a
summary inquiry and decide the question with reference to the books of the
society.
(ii) The returning officer shall not
entertain any challenge by a candidate or his polling agent, of a member's
identity until the person who challenges pays a fee of Rs.5/-(Rupees five only)
for every such vote, in cash. The returning officer shall thereafter entertain
the challenge and ask the member who has come to poll the vote to affix his
thumb-impression or signature, as the case may be on a declaration describing
his identity. If he refuses to do so, the member shall not be allowed to vote.
If, on the other hand, as a result of such summary enquiry the identity of the
member is established to the satisfaction of the returning officer, the polling
officer shall issue ballot paper, and the member shall then be allowed to vote.
In such cases the challenge fees paid shall be forfeited. At the end of the
poll, the returning officer, shall render an account of challenge fees
collected, fees refunded to the persons who challenged and the fees forfeited
to the society together with a brief note on the decision arrived at by him
after the summary inquiry in each case.
(i) (A) If at any stage of the
polling, the proceedings are interrupted or obstructed by any riot or affray or
if at such election it is not possible to take poll for any sufficient cause,
the returning officer shall have power to stop the polling after recording his
reasons for such an action.
(B) Where the poll is stopped under
clause (A) or where counting of votes is rendered impossible on account of
destruction or loss of ballot boxes or any other sufficient reason, the returning
officer shall stop the polling recording the reasons for such action in the
minute book of the society.
(j) No voter shall be admitted after
the hour fixed for the polling; but a voter who enters the premises where
ballot papers are being issued before the close of the polling hour shall be
issued the ballot paper and allowed to vote.
(k) The counting of votes shall take
place immediately after close of the poll. If this is not possible for reasons
beyond the control of the returning officer, the ballot box shall be sealed
with the seal of the returning officer and of the contesting candidates or of
their agents, if they so desire, and deposited with the society for safer
custody. The returning officer shall then announce and also intimate in writing
to the candidates or their agents present the time and place at which the
counting shall commence next day. votes shall be counted by or under the
supervision of the returning officer. Each candidate and his authorised agent
shall have a right to be present at the time of counting. But the absence of
any candidate or his agent at the time of counting shall not vitiate counting
or announcement of results by the returning officer.
7. General-
(a) A ballot paper shall be rejected
by the returning officer, if:
(i) it bears any mark or writing by
which the member who voted can be identified; or
(ii) it does not bear the seal of
the society or the initiate of the returning officer; or
(iii) the mark indicating the vote
thereon is placed in such manner as to make it doubtful to which candidate the
vote has been cast; or
(iv) is so damaged or mutilated that
its identity as a genuine ballot paper cannot be established.
(b) If after the counting of the
votes is completed, an equality of votes is found to exist between any
candidates and the addition of one vote will entail any of those candidates to
be declared elected, the returning officer shall forthwith decide between these
candidates by lot and proceed as if the candidate on whom the lot falls had
received an additional vote and declare him elected.
(c) After the returning officer has
completed the counting of votes, he shall prepare a return of the results of
the polling and shall forthwith declare the results. The returning officer,
shall immediately thereafter record the proceedings of the election in a
comprehensive report which shall form part of the records of the society and
shall be binding on all. A copy of such a report together with a copy of the
return of the results of polling, shall be submitted by the returning officer
to the Central Registrar.
8. Mode of election of members of
the board of multi-State cooperative societies other than those referred in
paragraph 1-
(1) The election of the members of
the board of a multi-State cooperative society not falling under paragraph I
shall be by show of hands.
(2) The election shall be held at a
general meeting of the multi-State cooperative society convened for the
purpose, of which not less than 14 clear days notice shall be given to the
members. The notice of the general meeting shall be sent to the members by any
of the modes specified in sub-paragraph(f) of paragraph 2 and shall contain
information regarding:-
(a) the number of vacancies to be
filled by election;
(b) the area or the constituency, if
any, from which members of the board are to be elected; and
(c) the date on which, the place and
the hours at which elections will take place.
(3) The board of directors or the
administrator or administrators appointed under sub-section (1) of section 48,
as the case may be, shall prepare a list of individual members and delegates of
member-societies as it stood on the date, 30 days prior to date on which
elections are to take place and affix a copy thereof to the notice board of the
society not less than 15 days prior to the date fixed for the election. A copy
of the said list shall be supplied by the society to any member on payment of
such fees as may be specified by the board, or the administrator, as the case
may be. Where no fees has been specified, the President/Chairman of the
society, or the administrator shall supply such list on payment of Rs.2/-.
(4) Notwithstanding anything
contained in this Schedule, the President/Chairman or the
Vice-President/Vice-Chairman if they are not candidates seeking election to the
board, shall preside over the meeting. In case they are seeking election to the
board, as the Chairman of the meeting for the conduct of election.
Provided that in respect of a
society falling under this rule for which an administrator has been appointed
under sub-section (1) of section 48, the administrator shall be the Chairman of
the meeting.
(5) The nominations of the
candidates for election shall be made at the meeting. The Chairman of the
meeting shall decide the objections, if any, which may be made at the time to
any nomination after making such summary enquiry as he thinks necessary and
announce the names of candidates as per valid nominations.
(6) If for any area or constituency
for which election is to be held the number of candidates in respect of whom
valid nominations have been announced the candidates for whom valid nominations
have been announced shall be deemed to have been elected for that area or
constituency, as the case may be and the Chairman of the meeting shall make a
declaration to that effect. If the number of candidates in respect of whom
valid nominations have been announced for any area or constituency exceeds the
number of candidates to be elected, a poll shall be taken and the Chairman
shall then read out the names of the contesting candidates. He shall thereafter
record the number of votes polled, for and against each such candidate,
ascertained either by show of hands or by ballot, as the case may be, and
record the same in the minute book of the society. The Chairman shall announce
the number of votes polled by each candidate and the result of the elections
which shall also be recorded in the minute book of the society and attested by
him.
(7) Where secret ballot is demanded
by the members of the general body, a formal resolution to this effect will be
put to vote and adopted. The meeting shall adjourn for a brief period to enable
the Chairman to make arrangements for the secret ballot.
(8) After counting, the general body
shall again assemble where the results of the poll shall be announced as in
clause (6) of paragraph 8.
9. Elections of the boards of
societies which have to be conducted by returning officer on requisition from
the members-
Notwithstanding anythings in
sub-paragraph (1) of paragraph 8, where a requisition to appoint a returning
officer to conduct an election is received from not less than one-fifth of the
total number of members on the rolls and eligible to vote in a multi-State
Cooperative society, sixty days in advance, the Central Registrar, shall
appoint a returning officer to conduct election in the manner specified in
paragraphs 2 to 7.
10. Election of office bearers-
(1) As soon as the members of the
board have been elected the returning officer referred to in paragraph 1, 2 and
9, or the President/Chairman referred to in paragraph 8 shall, notwithstanding
anything in the bye-laws of the multi-State
cooperative society specifying the
period of notice, convene a meeting of the newly constituted board for the
purpose of election of the President/Chairman, Vice-President/Vice-Chairman or
other elected office bearers of the society, by whatever name they are called.
Such a meeting of the board shall not be conducted unless a majority of the
number of members of newly constituted board, as per bye-laws are present.
(2) At the meeting so convened by
the President/Chairman referred to in paragraph 8 (under sub-paragraph (1) the
members of the newly constituted board of multi-State cooperative societies
shall from among themselves, elect a member who is not a candidate seeking
election to any office, as the Chairman of the meeting for conducting the
elections. the election of officer bearers of such multi-State cooperative
societies shall be by show of hands unless a poll is demanded in which case, it
shall be held by secret ballot.
(3) The election of office-bearers
of the societies referred to in paragraph 1 and 9 shall be conducted by the
returning officer appointed by the Central Registrar. The nomination of the candidates
for election in such cases shall be made at a meeting of the newly constituted
board of directors. the returning officer shall decide the objections if any,
which may be made at the time, to any nomination and after making such summary
inquiry, as he thinks necessary, announce the name of valid nominations.
(4) If for any office for which
elections are to be held, the number of candidates in respect of whom valid
nominations have been announced, does not exceed the number of candidates to be
elected for that office, the candidates for whom valid nominations have been
announced shall be deemed to have been elected for that office and the
returning officer shall make a declaration to that effect. If the number of
candidates in respect of whom valid nominations have been announced for any
office exceeds the number of candidates to be elected a poll shall be taken by
the returning officer. The returning officer shall, thereafter, announce the
number of votes secured by each candidate and the result of election which
shall also be recorded by him.
11. Custody of record of elections
conducted-
After declaration of the result of
election, the returning officer referred to under paragraph 1,9 and 10 or the
Chairman of the meeting under paragraph 8, as the case may be, shall handover
the ballot papers and records, if any, relating to the election of the members
of the board of directors and the office bearers to the chief executive of the
multi-State cooperative society in sealed covers. They shall safely, be preserved
by the chief executive of the society for a period of six months from the date
of election or till such time a dispute or an appeal thereof regarding
elections, if any, filed is disposed of, whichever is later, and shall
thereafter be destroyed.
NOMINATION FORM
(See paragraph 4 (a))
1. Name of the multi-State
cooperative society
and address :
2. Name of the candidate in case of
an individual
member/name of the delegate and the
member
cooperative society or multi-State
cooperative
society which he is representing :
3. Serial No. in the register of
members :
4. Father's or husband's name (in
case of
individual member) :
5. Address :
6. Name of the proposer in case the
proposer is
an individual member and the name of
the
society and the delegate in the case
proposer
is a delegate of a society :
7. Serial No. of the proposer in the
register of
members :
8. Signature of the proposer :
9. Name of the seconder when the
seconder is an
individual member and name of the
society
and the delegate in case the
seconder is a
delegate of a society :
10. Serial No. of the seconder in
the register of
members :
11. Signature of the seconder :
CANDIDATE'S DECLARATION
I declare that I am willing to stand
for election and that, to the best of my knowledge and belief I have not
incurred any disqualification for membership of the board of
.........................multi-State cooperative society in terms of the Act,
the Rules and the bye-laws f the multi-State cooperative society.
( Signature of the candidate)
Endorsement by the Returning Officer
This nomination paper was presented
to me in person at ...................received by registered post on
.................at .....................hrs.
Place:
Date :
Signature of Returning Officer
or person authorised by him
Frequently Asked Questions on
Cooperation / Cooperative Societies
Q. What is 'Cooperation' ?
A. According to
economic historian, Charles Guide "Cooperation is self-help and each for
all (mutual-aid)". Self-help means the pride of supplying one's own needs
by one's own resources, of being one's own merchant banker, money lender and
employer. "Each for all" means to seek liberation, not only for
oneself but for and through others”
The International Cooperative Alliance (ICA), at its Manchester Congress held
in September, 1995 adopted a Statement on Cooperative Identity. The Statement
included the definition of Cooperatives, a list of "Cooperative Values and
a set of "Cooperative Principles”.
According to ICA, "a cooperative is an autonomous association of persons
united voluntarily to meet their common, economic, social and cultural/needs
and aspirations through a jointly owned and democratically -controlled
enterprise" Cooperative - Values
Self-help
Self-responsibility
Democracy
Equality
Equity and solidarity
Q. What are the
principles of cooperation?
A. Cooperative
Principles are guidelines by which cooperatives put their values into practice.
The Cooperative principles are:
(1) Voluntary and open membership
(2) Democratic member Control
(3) Member economic participation
(4) Autonomy and Independence
(5) Education, Training and Information
(6) Cooperation among Cooperatives
(7) Concern for community
Q. What are the
origins of cooperative movement in India?
A. During the British
Rule in India, Nicholson a British Officer in India suggested `Find Raiffersen
in India', i.e. introduce Raiffersen model of German agricultural credit
Cooperatives in India. As a follow-up of that recommendation, the first
Cooperative Society Act of 1904 was enacted to enable formation of
"agricultural credit cooperatives" in villages in India under
Government sponsorship. With the enactment of 1904 Act, Cooperatives were to
get a direct legal identity as every agricultural Cooperative was to be
registered under that Act only. The 1904 Cooperative Societies Act, was
repealed by 1912 Cooperative Societies Act which provided for formation of
Cooperative societies other than credit. Under 1919 Administrative Reforms,
Cooperatives was made a provincial subject making each province responsible for
Cooperative development.
In 1942, the Government of India enacted the Multi-Unit Cooperative Societies
Act, 1942 with an object to cover societies whose operations are extended to
more than one state. Armed with an experience of 42 years in the working of
Multi Unit Cooperative Societies and the Multi-Unit Cooperative Societies Act,
1942, the Central Government enacted a comprehensive Act known as Multi State
Cooperative Societies Act, 1984, repealing the Act of 1942.
Based on the recommendation of the Mirdha Committee and the "Model
Cooperative Societies Act" this Government of India enacted the Multi
State Cooperative Societies Act, 2002 which provided for democratic and
autonomous working of the Cooperatives. The Multi State Cooperative Societies
Act, 2002 came into force with effect from August 19, 2002.
Q. Which are the
institutions working for the development of cooperative movement in India?
A. National
Cooperative Union of India (NCUI) and National Cooperative Development
Corporation (NCDC) are the important agencies working for promotion of
cooperative movement in India.
Q. Who can become
members of a cooperative society in India?
A. Persons who may
become members of a Cooperative society at State level (as per the State Act)
(a) an individual competent to Contract, attained majority and is of sound mind
and belongs to a class of persons if any for whom the society is formed as per
its bye-laws;
(b) a society registered or deemed to be registered under the Cooperative
Societies Act;
(c) the Government;
No individual shall be eligible for admission as a member of a federal society
Persons who may become members of a Multi-State Cooperative Society: (As
per Multi-State /cooperative Societies Act, 2002).
(a) an individual, competent to contract under section 11 of the Indian
contract Act, 1972.
(b) any multi-state Cooperative society or any Cooperative society.
(c) the Central Government
(d) a State Government
(e) National Cooperative Development Corporation (NCDC)
(f) any other Corporation armed or controlled by the Government.
No individual person shall be eligible for admission as a member of a national
Cooperative society or a federal Cooperative
For details on the procedures for forming a cooperative society, see the
section on “What are the steps / check list for forming a cooperative society?”
Q. What are the steps
/ check list for forming a cooperative society?
A. Steps involved for
forming a Cooperative Society under a state act:
(i) Prescribed application duly filled in shall be made to the Registrar of
Cooperative societies;
(ii) the application shall be accompanied by four copies of the proposed
Bye-laws of the society;
(iii) Where all the applicants are individuals, the number of applicants shall
not be less than ten;
iv) the application shall be signed by every one of such applicants if the
applicants are individuals;
(v) if the applicant is a society, by a member duly authorised by such society;
To form a Multi-State Cooperative society,
(i) An application for registration of a Multi-State Cooperative society shall
be made in the prescribed form;
(ii) the application shall be signed by;
(a) In the case of a multi-state Cooperative society of which all the members
are individuals, by at least fifty persons from each of the states concerned.
(b) In case the members are Cooperative Societies, by duly authorised
representatives on behalf of at least five such societies as are not registered
in the same state;
(c) In case the members are other Multi-State Cooperative Societies and other
Cooperative Societies, by duly authorised representatives of each of such
societies;
(d) If the members are cooperative societies or multi-state Cooperative
societies and individuals, by at least (i) fifty persons, being individuals
from each of the two states or more and; (ii) one Cooperative society each from
two states or more or one Multi-state Cooperative society.
(e) The application shall be accompanied by four copies of the proposed
Bye-laws.
(f) (i) Name of the proposed multi-state cooperative society;
(ii) Head Quarters and address to be registered;
(iii) Area of operation;
(iv) Main objectives
(v) a certificate
from the Bank
(vi) Stating credit
balance there in favour of the proposed Multi-State Cooperative Society.
The relevant application forms can be obtained from the Office of Registrar
of Cooperatives nearest to you.
Q. Which are the laws
that regulate cooperative societies in India?
A. Laws regulating
Cooperative Societies in India are:
(a) State Cooperative Societies Acts of individual states
(b) Multi-State Cooperative Societies Act, 2002 for the multi-state Cooperative
societies with Area of operation in more than one State.
Q. What is 'Multi-state
Cooperative Act'?
A. A multi-state
Cooperative Society means a society registered or deemed to be registered under
the Multi-State Cooperative Societies Act, 2002 and includes a national
Cooperative society or a Federal Cooperative.
Q. How does a
multi-state cooperative society differ from a company?
A. Broad differences
between a cooperative and a company
|
S. No |
Item |
Cooperative Society |
Company |
|
1 |
Object |
Interest of members
and community |
Self interest
either of management or the share holders |
|
2 |
Number of members |
Minimum number of
members should be 50 for a multi state cooperative society from each state in
case of individual membership |
In a public limited
company, minimum number of members should be 7 and in a private limited
company minimum number of members should be 2 |
|
3 |
Management |
Chairperson is
elected by the Board of Directors from among themselves. The Managing
Director / Chief executive is appointed by the Board of Directors |
Usually,
Chairperson / Managing Director are persons with maximum number of shares in
the company |
|
4 |
Share Capital |
The shares of
cooperative society are not issued to general public by advertisement and can
be issued any time. Shares can be withdrawn member / society as prescribed by
rules in their byelaws. |
Shares are issued
to general public or by invitation. In a company shares cannot be withdrawn
by a share holder. |
|
5 |
Types of shares |
Only equity shares
are available |
Equity and
preferential shares may be issued |
|
6 |
Voting Power |
Member of a
cooperative society have right of only one vote, irrespective of the number
of shares held of any denomination |
Voting rights
depend directly on the holding of shares |
|
7 |
Distribution of
Profits |
Minimum 25% of net
profits should be transferred to the General reserve and the maximum dividend
cannot exceed 20% |
No restrictions on
a company |
|
8 |
Taxes |
Cooperatives are
exempt from few taxes in some states like stamp duty. Tax rates also vary |
No exemptions
provided |
|
9 |
Workers
participation |
Provision for
workers participation in the management through a representative exists |
No such provision
for workers |
|
10 |
MRTP Act |
Not applicable to
Multi State Societies |
Applicable |
|
11 |
Control |
The Central
registrar of Cooperatives advises in the affairs of a multi state society |
Companies are
governed by the Company Registrar of the states where its registered office
is located |
Q. Who can become a
member cooperative society of IFFCO?
A. As per the bye
laws of IFFCO, no individual shall be eligible for membership of IFFCO. The
membership of IFFCO will be open to the following :
i. National
Cooperative Federations of agricultural credit/marketing/processing/supply and
other agricultural Cooperative Societies;
ii. State level
Cooperative Federations of agricultural credit/marketing/processing/supply and
other agricultural Cooperative Societies;
iii. District,
Regional and Primary Cooperative credit/marketing/processing/supply and other
agricultural Cooperative Societies including Cane Unions;
iv. Primary
Agricultural Cooperative credit, service, multi-purpose, cane, irrigation,
farming societies and other village agricultural societies;
v. National
Cooperative Development Corporation;
vi. Govt. of India,
to the extent that the Board/General Body of IFFCO require and request;
Public Financing Institutions to the extent required /requested by the Board
/General Body of IFFCO;
vii. Any cooperative
society activities of which are augmentative to the activities and conducive to
overall growth of IFFCO
Q. What are the steps
/ check list for becoming a member of IFFCO?
A. 1. The application
form for new admission must be filled in English in capital letters
2. Resolution of the
Managing Committee for IFFCO membership should be attached with the application
form
3. The application
form should be recommended by the concerned Assistant / Deputy Registrar of
Cooperative Societies
4. The credential and
existence of the society should be certified by the State Marketing Manager and
the application form should be routed through concerned IFFCO’s state office.
5. The Clause of
IFFCO’s Byelaws under which the applicant society is entitled for membership
should be clearly indicated by the concerned IFFCO’s SMM’s office
6. The Demand Draft
for the exact amount for share capital and admission fee in favour of IFFCO
payable at New Delhi should be enclosed with the application form. Admission
fee for village level societies is Rs 25 and for others Rs 100.
a.
National/state/regional federations and large processing cooperatives such as cooperative
sugar mills, cooperative cane unions are eligible for Rs one lakh share
category
b. District and
primary marketing/processing/supply and other cooperative societies including
cane unions are eligible for Rs ten thousand share category
c. Primary
cooperatives at village level are eligible for Rs one thousand category
The relevant
application forms can be obtained from nearest Area Office / State Office of
IFFCO
Q. Does IFFCO supply
fertiliser products only to member societies?
A. IFFCO’s fertiliser
supply is not restricted to only member cooperatives. Fertiliser supply is also
made to non-member societies. Any agricultural co-operative society permitted
by Registrar of Co-operative Societies and/or Director of Agriculture of the
State (depending on concerned state governments requirements) with a license to
sell fertilisers can sell IFFCO’s fertiliser. Other cooperatives, such as
commodity cooperatives, require approval from competent authority in IFFCO.
While fertiliser supply is made to both member and non-cooperative members, as
a cooperative society working for rural India, societies are encouraged to
become members of IFFCO.
Q. What are the
general terms and conditions of fertiliser supply by IFFCO?
A. IFFCO supplies
Urea and DAP/NPK to the Federation/Societies at the issue prices notified by
Government of India. In addition, credit period not exceeding 30 days is given
on Urea, NPK and DAP or cash discount in lieu of credit period. In some States,
Credit period or Cash discount is not given on DAP/NPK. Sometimes supplies are
also made to a Federation against tender terms.
Q. What are the
benefits of becoming a member society of IFFCO?
A.The member society
can send their nominee as Direct Delegate on Representative General Body by
contributing Rs. 10 Lakh and above in the Share Capital of IFFCO subject to the
provisions of bye laws of IFFCO. In case contribution to the share capital is
less than Rs 10 lakh, they can be a delegate of the General Body through the
election process as per IFFCO Bye-laws. These direct delegates and elected
delegates are entitled to participate in the Annual General Meetings / General
Body Meetings and in election of 8 Directors who will represent on the Board of
Directors of IFFCO. In addition, the Members are entitled to get dividend on
the equity held by them. In 2001-02, dividend @ 20% was given to the Members.
In addition, the RGB members also eligible to participate in plant visit
programmes, state / zonal advisory committee meetings, local extension programmes,
etc.
Q. How do member
cooperatives participate in the management of IFFCO?
A. Member
cooperatives of IFFCO, elect a Representative General Body (RGB) as per the
provisions of IFFCO’s bye laws. The RGB is the supreme policy making body of
IFFCO which is responsible for guiding IFFCO in achieving its objectives. The
RGB elects eight Directors on the Board of IFFCO who participate in managing
its affairs.
Q. What is
Representative General Body (RGB) of IFFCO?
A.The Representative
General Body (RGB) consists of members representing entire spectrum of members
of IFFCO. The RGB guides IFFCO in charting out a path to realise the objectives
as enshrined in bye laws of IFFCO. The following are some of the duties
performed by the RGB. The list is not exhaustive.
1. Election and
removal of the members of the Board of Directors;
2. Amendment or
repeal of any existing Bye-laws or the enactment of any new Bye-laws in
accordance with the procedure prescribed in the Act and the Rules;
3. Consideration and
adoption of Annual Report and Statement of Accounts, review of activities of
current year and approval of Programme of Activities of ensuing year presented
by the Board of Directors; Approval of Annual Budget;
4. Distribution of
net profits including dividend;
5. Creation of
specific reserves and other funds; Review of actual utilization of reserve and
other funds.
For registration of a Multi-state
Cooperative Society, whose area of operation is more than one State or States,
the individual concerned should contact the following for detailed information
and necessary action:
The Director (Cooperation)/Central
Registrar Office,
Deptt. of Agriculture and Cooperation, Ministry of
Agriculture, GOI,
Room No. 385, Krishi Bhawan, New Delhi -1.
Tele : Office: 011-23381809
The complete set of registration
papers; application along with schemes are initially received from the chief
promoters and are scrutinizes by the Zonal Assistance registrar of the
Department to ensure
(a) viability of a society;
(b) its conformity with the Cooperative Societies Act and Rules.
The required documents are as follows:
- Model Bye Laws (four copies)
- Intensive inquiry Performa
- list of Promoter members
- Copy of promotional meetings resolution, wherein
resolving name of the Society, value of share money, admission fees,
liabilities, total number of members of managing committee, annual
submission fees etc.
Enrollment
of a new member in a cooperative society
A resident of Delhi can become member of the society if he fulfills the
conditions laid down in registered bye laws of different types of societies.
The person can become member in an industrial, or a transport society if he is
actual worker of the type of the society. He is also to ensure that he is not a
member of other society of similar type. In case of housing societies an
applicant for membership should not have any plot/flat in his name or in the
name of any dependent member of his family and should also be resident of Delhi
for a minimum period of 3 years on the date of application.
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