The Assam Co-operative Societies Act, 1949

269
ASSAM ACT 1  OF 1950
*THE ASSAM CO-OPERATIVE SOCIETIES ACT, 1949
(Received the asses! c ! the Governoir-GewerHl on the 25th January, 1950.)
[Published. In the Assam (Jajtfie  of the 8th February 1950 ]
An
Act to Lsdlitak- C he form itoii ss.d working of Cooperative Societies 
...id to eonsoiidaie and r.meiid ike Saw relating to 
Co-operative Societies m the Province of Assam
Preamble.-—Whereas it •  expedient further to facilitate the formation and 
working of Co-operative Societies for the purpose of thrift, self-help, mutual aid 
and creating the quality of creait worthinc .s among agriculturists, artisans and 
other persons with commoi economic needs so as to bring about a higher standard 
of living, better busim better memo;.;  of production, equitable distribution and 
exchange and for that purpose to consolidate and amend the law relating to 
Co-operative Societies in the Province of Assam, it is hereby enacted as follows—
CHAPTER I
I'rdtimBsry
1. Short title, exteot and cosamencement—(1) this Act may be called the 
Assam Co-operative Societies Act, 1949.
(2) it extends to the whole of the [Siate] 1 of Assaiu.
(3) It shali a x e  into lOtcc on such oa* •  as the [State]-' Government may 
appoint.
2. Dekmtiu..".- ..,w wet, unless, owre is anything repugnant in the subject 
or context :—
(a) “Administrative Council” rne<.ns a body' intermediary between a 
Managing Body and the General Assem iy -f reg hered society.
(b) “Affi.Y-.big Socle., .r g if a ^  s olely of which a particular
registered society is a meml .  ■  .  .  . ■  .. .. neans the particular society
which is a member of the affiliating society ,
(c) “Arbitrator” m .  ms ■  p w !  appointed under the provisions of this
Act to deci '  .  .  disput him ;
(d) -  . .. tdet the provisions of
this Act io audit t; . tT a regi...creel society ;
(e) “Bye-law ’  .  t.-.s -o th -., registered bvc-laws for the time being in force 
and includes a registered amendment of bye-laws
(f) “Co-operative Year” menus the period beginning and ending on such 
dates as may be ir-;..d I  .  th. Registrar for the purpose of drawing up the balance 
sheets of registered societ: ;
(g) “Co-operative Demand Certificate'’  means a certificate as defined in 
section 83 ; _
(h) “fcmpluyce” ...cans a person, not being an o. lice-bcarer, employed by 
a registered society on a salary or similar form of remuneration other than advance 
patronage dividend or payment for goods sold to or through such society ;
(i) “General Assembly” means itw , supreme body of a registered society 
as defined in section 31 ;
♦For statement of Objects and Reasons see “Assam Gazette”, 1949, Part V, 
page 107.
'Substituted by the A.O., 1950 for ' Province ’.
Substituted by the A.O., 1950 for “Provincial”.

270
(j) “Managing Body” means the body to which the management of 
affairs of a registered society is directly entrusted and does not include .  
Administrative Council;
(k) “Member” means a person admitted to membership after registrat 
in accordance with the bye-laws and rules of the society and includes a promot
(l) “Office-Bearer” means a member duly elected by the appropriate hi,
of a registered society, according to its bye-laws, to any office of su 
society, including the office of President, Chairman, Vice-Presid|L 
Vice-Chairman, Secretary, Managing Director and Treasurer ; provided that an; 
officer appointed by Government to hold charge of any office of a registered 
society shall be deemed to be an office-bearer unless specifically stated to the 
contrary; ,;a
(m) “Prescribed” means prescribed by rules ;
(n) “Promoter” means any eligible person or registered society signing th 
application for registration of a society ;
(o) “Registered Society” means a Co-operative Society registered or deem  
ed to have been registered under tins Act and includes a society formed after am aj 
gamation of such two or more societies or by division of such an existing society
(p) “Registrar” means a person appointed to perform the duties of 
Registrar of Co-operative Societies under this A c t;
(q) “Rules” means rules made under this A c t; and
(r) “Signature” includes the thumb-impression of an illiterate person,
maj
CHAPTER II
Registration of Societies
3. The Registrar.—(1) The [State] 1 Government may appoint a person t <  
be Registrar of Co-operative Societies for lhe [State] 2 or any portion of it fo j 
the registration, supervision, assistance, counsel and control of registered societies 
and for the development of the co-operative movement and control over 
co-operative education and with such other powers and responsibilities as 
be provided under this Act or rules or bye-laws framed thereunder.
(2) The [State] 1 Government may also appoint persons to assist
Registrar and may by general or special order, in writing, delegate to any 
persons or to any other Government Officer all pr any of the powers of 
Registrar under this Act. *
(3) The [State] 1 Government may- also appoint non-official helpers
the 
such 
the
(3) lh e [State] 1 Government may- also appoint non-olhcial helpers w fffl 
such designations and functions as prescribed to aid in the organisation of Co­
operative Societies.4. " ................................................... - -  . -  - .......................... iSocieties which may be registered.— Subject to the provisions hereinafter 
contained a society which has as its chief object the promotion of the economic 
interests and general welfare of its members in accordance with co-operative; 
principles, or a society established with the object of facilitating the operations; 
pf such a society including a society formed by the division of an existing registered 
society or amalgamation of existing two or more societies, may be registered 
under this Act with or without limited liability :
Provided that unless the [State] 1 Government by general pr special order 
otherwise directs:—
(1) The liability of a society of which a member is a registered society; 
shall be limited.
(2) The liability of a society of which the primary object is the creation 
of funds to be lent to its members, and of which the majority of the members are 
agriculturists or artisans, and of which no member is a registered society, shall
'Substituted by the A.O., 1950 for “Provincial”. I
Substituted by the A.O., 1950 for “Province”.

be unlimited and the members of such a society shall on its liquidation, be jointly 
and severally liable for and in respect of, all obligations of such a society :
Provided further that no society shall be registered if in the opinion of the 
•Registrar, its declared objects are unlikely to be achieved or if it is economically 
'unsound or if it may have an adverse effect upon any registered society or the 
co-operative movement as a whole.
5. Age qualification of a member.— No person may be an individual 
•member of a registered society unless he is above eighteen years of age; provided 
that the bye-laws of a society may prescribe a higher minimum age.
|  6. Conditions of registration.— (1) No society, other than a society of which
a member is a registered society shall be registered under this Act which does 
not consist of at least ten eligible persons and, in cases where the primary object 
of the society is the creation of funds to be lent to its members, unless such 
^persons reside in the same town, village or in the same Panchayat Area ;
(2) The word “Limited” shall be the last word in the name of every society 
With limited liability registered under this Act.
7. Restrictions on acquisition of shares in a society.— (1) No member of a 
registered society shall hold more than such portion of the share capital of 
the society as may be prescribed by the rules, or the bye-laws of the society.
(2) No member shall be allowed to acquire an additional share until he has 
.paid in full the value of the whole or that portion of his share-holding which he 
is required to pay in accordance with the bye-laws of his society.
8. Power of Registrar to decide certain questions.—All disputes regarding 
membership for the purpose of the formation, registration or continuance of a 
Society under this Act ‘shall be decided by the Registrar.
9. Change of liability.— (1) Subject to the proviso to section 4 and to any  
•fiiles made in this behalf, a registered society may, with the previous sanction of 
the Registrar, change its liability from limited to unlimited or from unlimited to 
'limited :—
|. Provided that—
(i) The society sfrall give notice in writing of its intention to change its 
.liability to all its members and creditors.
(ii) Any member or creditor shall, notwithstanding any bye-law or con­
ta c t to the contrary, have the option of withdrawing bis shares, deposits or loans, 
fas the case,may be, within three months of the service of such notice on him 
'and the change shall not take effect until all such claims have been satisfied ;  
‘ ■ w id
(iii) Any member or creditor, who docs not exercise his option within the 
jperiod aforesaid, shall be deemed to have assented to the change.
(2) Nothwithstanding anything contained in the proviso to sub-section (1) 
K e change shall take effect at once if all the members and creditors assent 
thereto.
(3) The Registrar shall register the amendment of the bye-laws consequent 
on the change of liability; provided that no person who ceases to be a member 
■ ip f  the society before such amendment is registered shall be adversely affected by 
Hhe change of liability.
10. Application for registration.— (1) An application for registration shall be 
■made to the Registrar in the prescribed Form.
(2) The application shall be signed —
|  (a) in the case of a society of which no promoter is a registered society, by
bat least ten eligible persons; and
(b) in the case of a society of which at least one promoter is a registered 
^Society, by a duly authorised person on behalf of such registered society and at 
Peast one other individual promoter or one other duly authorised person on behalf 
of another registered society.
 
 
 
money which they have undertaken to subscribe with effect from the date of regis-,,:
11.
(3) The application shall be accompanied by four copies of the proposed; 
bye-laws of the society signed on behalf of the promoters by the president of the ; 
inaugural general meeting. Promoters by whom or on whose behalf such appli-d 
cation is made shall furnish such, information in regard to the society as thy 
Registrar may require and they shall be liable to the full extent of the share^ 
i  . ' ’ ' . ' ............................... . ■  <  ■
tration of the society. j
Registration.— (1) The Registrar shall decide all questions as to whethet^ 
the application complies with the provisions of this Act and rules thereunder and.j 
whether the objects of the society are in accordance with section 4.
(2) When he is satisfied that the application is in order under sub-section (1)] 
and the proposed bye-laws are not contrary thereto, he may register the socie™ 
and its bye-laws ; provided that the Registrar shall have powers to register th e -.] 
bye-laws with such modifications as he thinks are necessary to bring about unifora 
mity in the main with the provisions of the bye-laws of societies which haye~i 
similar objects or functions.
(3) The Registrar shall endorse the bye-laws in token of registration. Eachj 
society shall have a copy of its bye-laws so endorsed.
(4) If the Registrar refuses to register a society or an amendment of th e 1  
bye-laws of a registered society he shall record his reasons in writing and commu® 
nicate these reasons and his decision to the promoters or the Secretary of a  |  
registered society by a registered letter to their office, he Registrar may at any 1  
time review his orders in this respect.
12. Evidence of registration.—A certificate of registration signed by tlieJ
Registrar shall be issued to the society and shall be conclusive evidence that the I  
Co-operative Society therein mentioned is a Co-operative Society duly registered J  
under this Act and that its bye-laws are as attached to the certificate, unless it is  3  
proved that the registration of the society has been cancelled or that amended! 
bye-laws have been registered or that the society’s copy of the certificate or bye-jpa; 
laws has been tampered with. Jo
13. Amendment of the bye-laws of a registered society.—(1) No amendment w  
of the bye-laws of a registered society, whether by way of addition, al ternation,wliK 
omission, rescission or change of name shall be valid until such amendment has^B 
been registered under this Act.
(2) Every proposal for such amendment shall have to be approved by a d *  
resolution at a meeting of the General Assembly in accordance with the bye-lawsa® 
of the society and be forwarded within a month from the date of the resolution® 
to the Registrar; and if the Registrar is satisfied that the proposed amendment® 
is not contrary to the provisions of this Act or rules, he shall, unless for reasons.® 
to be recorded in writing he considers fit to refuse, register the amendment. B
(3) When the Registrar registers an amendment of the bye-laws of a t
registered society, he shall issue to the society a copy' of the amendment certified B  
by him, which shall be conclusive evidence that the same has been duly registered, B  
unless it is proved that the registration of the society has been cancelled or that 1 
further amendments have been registered or that the society’s copy of the amend-® 
ments have been tampered with. The amendment shall be binding upon the® 
society with effect from the date of registration. ,®
14. Power of Registrar or affiliating society to direct amendment of bye-®  
laws or adoption of nd.es of procedure.— (1) (i) When it appears to the Registrar® 
that an amendment of the bye-laws or a registered society is necessary in the 1  
interests of such society or of the co-operative movement as a whole or for the® 
purpose of bringing about uniformity in the main with the provisions of the 1  
bye-laws of societies which have similar objects or functions, he may, by an order! 
in writing, direct the society to amend its bye-laws in accordance with the amend- J 
ment drafted and forwarded to the society by him within such time as he may j 
specify in the order.
K  R 
a s e , i 
le u  f 
in i w
 
 
 
273
(ii) If the society fails to make such amendment within the time specified, 
■he Registrar shall, alter giving the society an opportunity of representing its 
Base, make such amendment himself and register the same. The Registrar shall 
■ th e n  forward a copy thereof to the society together with a certificate signed by 
liiin which shall be effective as prescribed in section 13(3).
(iii) The Registrar shall not register any amendment of the bye-laws of 
1  society, whether under this section or section 13 of this Act, without the consent 
Id the [State] 1 Government, if the effect of such amendment is to lessen the 
liegree of control of the Government or of the Registrar as already provided 
■or in the bye-laws.
(iv) The Registrar may require any registered society to frame rules of 
Procedure under its bye-laws to govern any part of its business and to send such 
■ ru les to him for prior approval.
(2) (i) When it appears to an affiliating society that an amendment of the 
liye-laws of a registered society which is a member and debtor of such society, 
1 b necessary in the interests of such society it may suggest to the affiliated society 
■bat it makes the amendment within such time as it may specify. The affiliating 
■ so c ie ty  shall forward to the affiliated society a draft of the suggested amendment 
Itf the bye-laws.
(ii) If the society fails to implement the suggestion within the time specified, 
|ie  affiliating society may forward to the Registrar the amendment which it consi­
s t s  necessary, and the Registrar, if satisfied that the amendment is necessary 
■ a n d  not contrary to the provisions of this Act or the rules, may thereupon register 
lie amendment and forward to the society a copy thereof together with a certifi- 
late signed by him. The certificate shall be conclusive evidence that the amend- 
luent has been registered and such amendment shall thereupon be binding upon 
■ th e  society and its members.
15. Division and amalgamation of societies.— (1) (i) Any registered society 
■ m a y , at a meeting of its General Assembly specially called for the purpose, resolve 
|U ) divide into two or more societies. At least fifteen clear days’  notice of such 
■ m eeting with the agenda shall be given to its members together with a copy of 
llhe proposed resolution.
(ii) Such a resolution shall contain the proposal as to how to divide the 
■ a s s e ts  and liabilities of the society among the newly proposed societies, their 
■teas of operation and the members who will constitute each of the newly proposed 
.societies with draft new bye-laws.
(iii) A cop 1; of the resolution shall be sent to the Registrar within thirty 
■ d a y s  of its adoption and subject to the Registrar’ s non-intorference within thirty 
flays of the despatch to him of the resolution, the resolution shall be circulated 
lunong the members and creditors of the society.
(iv) Notwithstanding any bye-laws to the contrary, any member of the 
Inciety, and notwithstanding any agreement to the contrary, any creditor of the 
■ so ciety , may by notice given to the society within thirty days of the receipt of the 
■resolution intimate in case of a member his intention not to become a member 
If any of the societies, and in case of a creditor his intention to demand a return 
lif the amount due to him.
(v) After the expiry of ninety days from the passing of the aforesaid reso­
lution a meeting of the General Assembly shall be convened for finally deciding 
lihe resolution. At least fifteen clear days’ notice with the agenda of the meeting
■  ■ s h a ll be given to all members of the society.
.  I  (vi) If the General Assembly decides by a three-fourth majority finally to
:  liivide the society and if the Registrar approves of the decision, the members, 
r  |'«ho will constitute each of the newly proposed societies subscribing to the new:
'Substituted by the A.O., 1950 for “Provincial”.

CHAPTER III
convcyan
draft bye-laws shall apply to the Registrar under section 10 for registration of the 
new societies and the Registrar shall register the societies under section 11
(vii) The Registrar shall not register the new societies if the application 
for registration is not accompanied by a certificate of repayment of share capital 
to members and certificate of satisfaction of claims to creditors referred to in 
clause (iv).
(viii) From the date on which the new societies are registered und 
clause (vi) the registration pf the old society shall be deemed to have been can: 
celled.
(ix) The registration of the new societies shall be a sufficient conveyane 
to vest the assets and liabilities of the original society according to the aforesaij 
resolution in the new societies.
(2) (i) Two or more registered societies may, at a meeting of their respect! 
General Assemblies specially convened for the purpose, by giving at least fifte 
clear days’  notice to the respective members of the societies, resolve to amalg 
mate into one society by adopting common bye-laws.
(ii) A copy of such resolution of each society shall be circulated forthwith 
among all members and creditors thereof.
(iii) Notwithstanding any bye-laws to the contrary, any member of an 
such societies and, notwithstanding any agreement to the contrary, any credit 
of any such societies, may within a period of thirty days from the receipt of t 
aforesaid resolution, intimate his intention not to become a member of the net 
society, in the case of a member, and to demand a return of the amount due. 
him, in. the case of a creditor.
(iv) After the expiry of ninety days from the date of the aforesaid res®  
lution, a joint meeting of the members of such societies shall be convened t«  
decide finally the aforesaid resolution.
(v) At least fifteen clear days’  notice shall be given to all the members 
the societies. If at such meeting the aforesaid resolution is confirmed by a maj# 
rity of three-fourths of the members of each society present and the common by 
laws are accepted with or without any alterations, the Registrar shall be move 
by an application under section 10 for registration and he shall register the n e! 
society under section 11 if he approves.
(vi) The Registrar shall not register the new society if the application fc  
registration is not accompanied by a certificate of repayment of share capital to  
members and a certificate of satisfaction of claims of creditors referred to is 
clause (iii).
(vii) From the date on which the new society is registered the registratic 
of the old societies shall be deemed to have been cancelled.
(viii) The registration of the new society shall be a sufficient 
to vest in it all the assets and the liabilities of the original societies.
Rights and Liabilities of members of Registered Societies
conditio)
of a m
16. Member not to exercise rights till due payment made and  
fulfilled.—No member of a registered society shall exercise the rights 
ber unless or until he has made such payment to the society in respect of membi 
ship or acquired such interest in the society, as may be prescribed by the rules 
bye-laws.
17. Votes of members.— (1) Irrespective of the shares he holds in 
society and subject to any temporary disqualifications from voting which may 
prescribed in bye-laws and to the provisions of section 31(2)(b) relating to vofii
 
 
275
it:
If
i e
Eby representatives, a member of a registered society shall have one vote only in 
■the allairs of the society:
Provided that in the case of an equality of votes the Chairman at any meeting 
■shall have a second or casting vote :
I  Provided further that the bye-laws of a society may provide for more than one 
■vote in the case of an affiliated society.
(2) A registered society which is a member of another registered society 
■may appoint one of its members qualified under any rule or bye-laws to vote in 
■the affairs of such other society as its representative.
(3) Voting by proxy shall not be allowed except as prescribed in a registered 
■society’ s bye-laws ; Provided that in registering the bye-laws of a society the 
■Registrar shall not permit voting by proxy except in cases, such as those involving 
■ a wide area of operation, where it would be difficult for members to exercise their 
.■right to vote if voting by proxy were not permitted.
18. Member of unlimited society to furnish information as to his financial  
■position.— (1) A full, true and accurate statement of his assets including his immo- 
■vable property and liabilities shall be furnished —
(a) by an applicant for membership of a registered society with unlimited 
■liability, together with his application,
(b) by a member of a registered society with unlimited liability when 
■required to do so by the Registrar or any person authorised by him in this behalf 
■or by the affiliating society.
■  (2) No member of a registered society with unlimited liability shall be a 
■member of more than one such society.
■  (3) A member of a registered society with unlimited liability shall furnish to 
■the society full, true and accurate information regarding his intention to transfer 
■his immovable property, in whole or in part by way of sale, mortgage or gift at least 
■fifteen days before completion of each such transaction.
19. Loan to be utilised for the purpose for which advanced.— The loan
■  advanced by a registered society to a member thereof shall be utilised by him for 
1  th e purpose for which it was advanced and for no other purpose. The society 
j shall have power to recover the advance as prescribed if the member does not so 
|  utilise it.
20. Restrictions on transfer of share or interest.— (1) The transfer or charge 
•  o f the share or interest of a member in the capital of a registered society, shall be 
j subject to such conditions as to maximum holding as may be prescribed by this
A ct or by the rules.
(2) Except as otherwise provided in this Act no transfer or charge of his 
share or interest by a member of a society with unlimited liability shall be valid 
unless :—
(a) he has held such share or interest for not less than one year ; and
(b) the transferee or mortgagee is cither a member of such society or a 
person whose application for membership hag been accepted.
21. Liability of past member and his estate.— (1) The liability of a past 
' member and of the estate of a deceased member for the debts of a registered
society as they existed at the date of his ceasing to be a member or of his death, 
a s  the case may be, shall continue for a period of four- years from the said 
date.
(2) No past member of a registered society with unlimited liability shall be 
eligible for membership of another such society with unlimited liability except with 
th e  special permission of the Registrar.
22. Share or interest not liable to attachment.— Notwithstanding anything 
contained in any law for the time being in force but subject to the provision of 
section 44 of this Act, the share or interest of a member in the capital of a registered 
society or in any fund under section 53 shall not be liable to attachment or sale
I
 
 
under any decree or order of a court in respect of any debt or liability incurred 
such member nor be subject to any claim by a receiver under the Provincial Ins 
vency Act, 1920 (V of 1920).
23. Nomination of transferee.— If the bye-laws of a registered society 
permit, any member of the society may, in accordance therewith nominate a persi 
or persons in whose favour the society shall dispose of the shares or interests 
such member on his death.
24. Transfer of interest on death of member.— When a member of a registe 
society dies his shares and interest in the society shall, subject to the provisions 
this Act, be transferred—
(a) to the person, if any, nominated in accordance with the provision 
section 23 ; or
(b) if there be no such nominee or if the nominee is not available o r: 
difficult to be ascertained by the managing body, or if for any other cause sa 
transfer cannot be made without unreasonable delay or difficulty, to the persons 
may appear to the managing body to be the heir or legal representative of ti 
deceased member; provided that ninety days have elapsed from the date of 
member’s death. No new claim shall be entertained after the said period of nine 
days.
25. Disposal of shares or interest of ceased members.— When a member oh 
registered society is expelled or withdraws or otherwise ceases to be a meml 
under this Act, rules or bye-laws his share or interest shall be transferred 1  
another eligible person, and the value thereof, determined in accordance with ti 
rules, shall be paid to such ceased member if his share or interest is not f <  
under the provisions of this Act, rules or bye-laws or if he is insane, to any , 
appointed to manage his properties under the Indian Lunacy Act, 1912 (IV 
1912) ; provided that if there is no eligible transferee and if die bye-laws of t 
society so provide the value of his share or interest determined in accordance w i 
the bye-laws shall be paid to him or, if he is insane, to any person appointed i 
manage his properties under the Indian Lunacy Act, 1912.
26. Liability of members on winding up of society.— The members of a re g i 
tered society shall in the winding up of the society, be jointly and severally liable 
contribute towards any deficiency in the assets of the society —
(a) in the case of a society with unlimited liability without lim it; and
(b) in the case of a society with limited liability, subject to such limitati 
of amount as may be provided in the bye-laws.
27. Restriction on transfer of possession of land held under a society!  
Notwithstanding anything in any law for the time being in force—
(1) a member of a registered society, the object of which is to develop 
operative or Collective farming, shall not be entitled to transfer his possession $  
interest in any land held by him under the society, except to the society or with th e  
previous approval of the managing body and in accordance with its bye-laws, to "  
member thereof or to a person who will be admitted as a member of the societi
(2) on the death of such a member, his possession of and interest in, a n j 
such land held by him under the society shall come to his nominee in accordai 
with the provisions of section 23 or in the first eligible heir according to seniojj 
in age willing to become a member of the society ;
(3) if no nominee or heir becomes a member the possession of and intercs 
in, such land of the deceased, shall vest in the society, which shall pay to the r 
nee or the heir, a sum equivalent to the value of the share and interest of 
deceased member and any other sum due from the society as determined in accord 
ance with this Act or rules framed thereunder after deducting all dues which t i 
deceased member owned to the society ;

277
(4) if there is no person qualified to succeed to the share or interest of the 
deceased member the society shall pay to his heir, executor or the legal representa­
tive as the case may be, a sum equivalent to the value of the share and interest 
of the deceased member as determined in accordance with the rules after deduct­
ing the dues of the deceased to the society ;
(5) when in any other case a member ceases to be a member of such 
a society under this Act, rules or bye-laws, his possession of and interest in, any 
such land held by him under the society shall come to the society. If the bye­
laws allow and if the share and interest of the member is not forfeited under this 
Act or rules framed thereunder, the society shall pay to the ceased member a sum 
equivalent to the value of the share and interest of such member and any other 
sum due to him from the society after deducting his debts to the society, if any ;
(6) no land held under a registered society specified in sub-section (1) by 
a member thereof, or vested under sub-section (2) in the heir or nominee of such 
member, shall be attachable in any suit or proceeding for the recovery of any 
debt other than a debt due to the society or to a member thereof ;
(7) no land shall vest in such a society by reason of the provisions of this 
section unless it is owned by the society or has been leased to the society and, 
if the society holds the land by lease or contract, the land shall vest in the society 
only during the pendency of the lease or contract.
28. Right of a registered society to pay prior debts of a mortgagor.—
(1) Where a mortgage is executed in favour of a registered society for payment 
of prior debts or part thereof, of the mortgagor secured on the mortgaged pro­
perty, the registered society may, notwithstanding the provisions of sections 83 
and 84 of the Transfer of Property Act, 1882 (IV of 1882), by notice in writing 
and served by registered post with acknowledgment due, require any person to 
whom any such debt is due to receive payment of such debt or part thereof from 
the society at its registered office within such period as may be specified in the 
notice.
(2) The person on whom such notice is served shall be bound to receive 
payment of the amount offered by the society, but where there is disagreement 
or dispute between the mortgagor and such person as regards the amount of the 
debt, or where the society tenders less than the agreed amount of debt, the receipt 
of the sum offered by the society shall not debar such person from enforcing 
his right to recover the balance claimed by him.
(3) If any such person refused to receive such notice or such payment, such 
debt or part thereof as the case may be, shall cease to carry interest from the 
expiration of the period specified in the notice and the property mortgaged under 
sub-section (1) shall be deemed to have been freed from the encumbrance of 
such prior mortgage.
(4) No society shall advance a loan on a mortgage without taking a declara­
tion from the prospective mortgagor as to the names of prior mortgagees of the 
property in question, if any.
29. Restrictions on mortgaged property,— Where land is mortgaged to a
registered society—(1) the mortgagor shall not be entitled without the approval
of the society to transfer or mortgage his equity of redemption or to create a
charge upon or lease out such property for a period exceeding three years.
(2) If the mortgaged property at any time is wholly or partially destroyed
or the security is rendered insufficient due to fall in value or for any other reason
and the mortgagor having been given a reasonable opportunity by the society 
of providing for further security sufficient to cover the loan or of repaying the 
loan with interest or such portion of the loan as may be determined by the super­
visory, managing or controlling body and the mortgagor having failed to provide 
such security or repay such portion of the loan, the whole of the loan or such 
uncovered portion shall be deemed to fall due at once and recoverable through 
a co-operative demand certificate.

(3) Notwithstanding anything contained in the Transfer of Property Act, 
1882 (IV of 1882), the mortgaged property, in case of default of payment of mort­
gage money or any part thereof, may be sold by the society as prescribed by rules 
in addition to any other remedy available to it, without the intervention of th? 
court, if a power of sale without the intervention of court is expressly conferred! 
by the mortgage deed, provided the society serves a notice in writing by registered 
post demanding payment of the mortgage money with interest, or part thereof* 
upon the mortgagor or, any person having an interest in or charge upon the 
mortgaged property or the equity of redemption who has previously notified th e! 
society of such interest or charge in writing or any surety, and if default has 
been made in payment of the loan or part thereof for three months after such 
service of notice. Provided that any party aggrieved by an action taken by a  
registered society under this section may prefer an appeal to the Registrar- 
within thirty days from the date of the sale. His decision shall be final.
30. Bar to certain claim.— All payments and transfer made by a registered 
society under this chapter, shall be valid and effectual against any demand made 
upon the society by any other person.
CHAPTER IV
Management
31. General Assembly.— (1) The General Assembly of a registered society 
shall consist of all those who are eligible to vote at general meetings of the 
society. '
(2) (a) Every member of a registered society and every ex-officio member of 
the Administrative Council or managing body of such society, unless under some) 
temporary disqualification, shall have the right to attend any general meeting o f 
the society and to exercise his vote at such meeting. Provided that the bye-laws 
of a registered society may prescribe—
(i) that a registered society affiliated to such society may have more than 
one representative entitled to vote at general meetings of the society ; and
(ii) that only one-third of the members of the General Assembly, excluding 
ex-officio members, may be individual members, the other two-third being 
representatives of affiliated registered societies.
(b) When the bye-laws of a registered society contain the provision of sub­
section (2) (a) (ii), if the number of individual members exceed one-third of the 
total membership of the society, the individual members shall elect at a special 
meeting, to be called by the Secretary of the society not more than one month 
before the annual general meeting in the manner prescribed in the bye-laws for 
annual general meetings, those individual members who, as the representatives 
of the body of individual members, shall form the one-third membership! 
of the General Assembly for the purpose of voting at the annual and 
other meetings of the General Assembly during the ensuing year, only such elected 
representatives having the right to attend and vote at such general meetings.
(3) The supreme authority of a registered society shall be vested in the Gene­
ral Assembly. Provided that during the pendency of any loan or service from the 
Government, or any other creditor secured at the instance of the Government, the 
supreme authority in respect of any matter adversely affecting the interests of the 
Government or the said creditor touching such loan or service shall be vested in 
the *[State] Government or the Registrar, as may be provided in the bye-laws, or 
any person authorised by them in writing, and may extend to the appointment of 
officers to hold any of the offices of the society or any persons to be ex-officio:
♦Substituted by A.O., 1950 for “Provincial”.

279
' pinembers of the Administrative Council, managing body or any- committee of the 
i j.«ociety even if not members of the society. This supreme authority of the Govern­
m ent or Registrar may also be cxcercised in the absence of any loan or service 
i  ‘when the Government or Registrar, as the case may be, deem their intervention 
to be necessary in the interests of the members of the society or of the Co-operative 
|  movement in general. The Government or the Registrar as the case may be, may 
a  :  fix the salary of any such appointed officer and declare it to be a charge on the 
|  society. They may cancel any such appointments made by them.
(4) An annual or special meeting of the General Assembly shall be sum­
moned and shall exercise its authority and perform its functions in such manner 
as may be prescribed in the bye-laws of the society.
32. Annual Meeting of General Assembly.—(1) A general meeting to be 
•termed the annual general meeting of the General Assembly of a registered society 
shall be held at least once in every Co-operative year for the purpose of —
(a) electing members to the Administrative Council, managing body and 
other committees of the society, the Chairman, Vice-Chairman, and other office­
bearers, as may be provided in the bye-laws, and fixing such fees, salaries or other
-remuneration as prescribed in the bye-laws ; provided that the Government may 
mrescribe by rules the qualifications necessary for office-bearers and employees;
(b) electing an internal auditor or auditors, who shall not be members 
the Administrative Council or governing body, and fixing the remuneration;
(c) considering the annual report of the Administrative Council or, if there 
no Administrative Council, of the managing body, audit report and audited
|  ^annual accounts and balance sheets and reviewing the working of the society 
I during the preceding Co-operative year ;
(d) deciding how profits are to be distributed in accordance with the bye- 
s :  laws ;
(e) passing the annual budget and approving the programme of work for 
I  Bhe ensuing year ;
(f) fixing the maximum amount of liability to be incurred during the 
•ensuing year and the maximum rate of interest payable on deposits ; and
(g) considering such other business as may be placed before the meeting 
|  Jn accordance with the bye-laws.
(2) Such meeting shall be held not more than fifteen months after the date 
a  sof the last preceding meeting held under sub-section (1) and unless the Regis- 
■ trar on special grounds extend the period, within three months of the receipt of 
the statutory annual audit report.
33. Special meeting of General Assembly.— (1) A Special Meeting of the 
| ’General Assembly shall be called —
at the instance of the Administrative Council or if there be no Admi- 
Council of the managing body ;
at
on
or 
at
of
33. Special meeting of General Assembly.— (1) A Special Meeting of the
(a)
?nistrative
(b) 
R (c) 
Assembly
(d) -
(2) The Registrar himself or any person authorised by him in this behalf, 
in writing, may, by special order call a special meeting of the General Assembly 
at any time and shall call such a meeting upon the failure of the society to call 
a.meeting on the requisition by the members or at the instance of the Registrar
ir sub-section (1).
(3) Notwithstanding any rule or bye-law prescribing the method of sum- 
jnoning or period of notice for a General Assembly, the Registrar or any person 
authorised by him in this behalf, may specify the time, place; business for the 
meeting and manner of convening it.
the request of the Chairman of the society;
a requisition signed by one-tenth of the members of the General 
twenty members, whichever is less ; or
the instance of the Registrar.
Registrar himself or any person authorised by him in this behalf.
 
280
34. Administrative Council.— The management of every registered society; 
shall vest in the managing body of the society, except in the case of a society, 
which for administrative convenience necessitated by reasons such as wide area 
of operation, that responsibility shall vest in an Administrative Council. The 
Administrative Council, the managing body and committees of a society shall 
be constituted in accordance with the bye-laws of the society which shall specify 
the composition of such bodies, their powers, functions, duties, method of sum­
moning meetings and procedure.
35. Power to depute Government servant to manage the affairs of a society.—  
The *[State] Government may, on the application of a registered society and on 
such conditions as may be determined, depute Government officials to the service 
of the society for the purpose of managing its affairs and the official shall exercise 
such powers and perform such duties as may be determined.
36. Dissolution or reconstruction of the Administrative Council, managing  
body or any committee of a society.— (1) When the Registrar is satisfied, after an 
inspection or enquiry under section 60 or 61 for reasons to be recorded in writing, 
that the Administrative Council, managing body or any committee of a registered, 
society is not functioning properly or according to this Act, rules or bye-laws, 
he may, after giving the offending body an opportunity to state its case, direct 
under clause (d) of sub-section (1) of section 33, that a special general meeting 
of the General Assembly be called within a time to be specified to dissolve 
the Administrative Council, managing body or committee concerned and to elect 
a new one. Provided that, if in the opinion of the Registrar it is necessary as.' 
an emergent measure to suspend the offending body forthwith, he may do so 
and shall appoint a person or persons, on such conditions as prescribed by him, 
to be in full control of the suspended body until a new body has been elected or 
action has been taken in accordance with section 37.
(2) The Registrar may, for reasons to be recorded, specify in the direction! 
made under sub-section (1) that all or any of the outgoing members of the •  
dissolved body shall be disqualified for such period not exceeding three years 
as he may determine, for election or appointment as an officer of the society or 
for service on any of its bodies.
(3) An appeal shall lie to the *[State] Government against an order of 
the Registrar disqualifying a member of a society for election or appointment 
within two months from the receipt of the order.
37. Dissolution of Administrative Council, managing body or any com­
mittee and appointment of persons to manage the affairs of a Society.— If the 
Administrative Council, managing body or any committee as the case may be, |  
of a society is not dissolved and reconstituted within the time specified by the 
Registrar under section 36, he may by order in writing dissolve such body and 
shall thereupon appoint a person or persons, on such conditions as prescribed t 
by him, to manage the affairs of the society for such period not exceeding one 
year when he shall arrange for the constitution of a new body to take the 1  
place of the dissolved body. The Registrar may extend this period from time 
to time as he may deem fit; provided that the aggregate of such periods shall 
not exceed three years.
38. Tenure of office of the person appointed under section 37.— The person 
appointed under section 37 shall hold office until the Administrative Council, 
managing body or committee, as the case may be, is reconstituted or his appoint­
ment is cancelled by the Registrar.
♦Substituted by A.O., 1950 for “Provincial”.
 
 
281
39. Powers of person appointed under section 37.— During the tenure of 
office of a person appointed under section 37 such person shall, subject to the 
control of the Registrar, exercise all the powers and perform all the functions and 
duties which may be exercised or performed by

Excerpt shown. Open the full act in Lexace.

‹ Prev All Assam acts Next ›