The CHHATTISGARH COOPERATIVE SOCIETIES (RECOVERY OF LOSSES) ACT, 2007

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CHHA ITISG,'\RH ACT 
(No. l of 2008) 
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CHHA TIISGARH COOPERATIVE SOCIETIES (RECOVERY OF LOSSES) 
ACT, 2007 
·INDEX 
Section:-
I . Short· title, extent and commencement. 
2. Definitions. 
3. Act not in derogation of any other law. 
4. Procedure for making good, losses cause to un-aided Co-operative Society. 
5. Recovery of money. 
6. . Restoration of Possession. 
7. Service of Notice. 
8. Registrar and other officers etc. to be public servants. 
9. Indemnity for acts done in good faith. 
· lO. Powers of civil courts. 
I I. Power to make Rules. 
12. Repeal. 
,I 
,, 
--• 
Short title, extent 
and commence­
ment. 
Definitions. 
~ct not in deroga­
tion of any other 
law. 
Procedure for 
making good, lo~ 
cause to on-aided 
Co-operative Soci­
ety. 
CHHA TI1SGARH ACT 
(No. I of 2008) 
.. 
28 (5) 
CHUA TTISGARH COOPERATIVE SOCIETIES (RECOVERY OF LOSSES) 
ACT, 2007 
An Act to make provisions for the recovery of losses caused to on-aided coopera­
tive societies and matters ancilliary thereto. 
Be it enacted by ·the Chhattisgarh State Legislature in the Fifty-Eighth year of the 
Republic of ~ndia. 
1. 
2. 
3. 
4. 
(I) This Act may be called the Chhattisgarh Co-operative Societies ( Recovery of 
Losses) Act, 2007. 
(2) It shall be deemed to have come into force retrospectively with effect from 
1st November, 2000. · 
(3) It extends. to the whole of the State of Chhattisgarh. 
(I) In this Act, unless the context otherwise requircs,-
(a) "Aid"_means and ·includes loans, financial aid, guaranttee of re­
payment, debentures, advances, grant in any fonn or any kind of 
financial support ; 
(b) "State" means the State of Chhattisgarh ; 
(c) "State Government" means the State Government of Chhattisgarh ; 
(d) "Un-aided Co-operative Society" means the co-operative society not 
receiving any aids from the Government. 
(2) Words and expressions used in this Act but not defined shall have the same 
meaning assigned to them in the Act time being inforce with the object to 
organise and develop co-operatives as democratic instrument~ and people· s 
institutions based ori self help, and mutual aid, and for curbi_ng exploitation 
and ensuring socio-economic development of people with particular 
emphasis on weaker sections of society. 
The provisions of this Act shall be in addition to, and not in derogation of, any other 
law fo! the time .being inforce. 
(I) Notwithstanding anything contained in any law for the time in force, if in the • 
course an audit, inspection or supervision or otherwise of un-aided coopera­
tive society, it is found that any person, who is or was entrusted with 
organisation or management of such society or any deceased, past or present 
-chairman, secretary, member of Board of Directors, officer or employee of the 
society has made any payment contrary to the provisioris of the Acts or 
acquired property by misappropriating the fund of the society or roles or bye 
laws made thereunder for time ~ing in force with objects to organise object to 
organise and develop cooperatives as democratic instruments and people· s 
institutions based on self help, and mutual aid, and for curbing exploitation 
and ensuring , socio-economic development of people with particular 
emphasis on weaker sections of society or has caused any deficiency or loss 
by gross negligence or misconduct .or has misappropriated or fraudulently 
retained any money or other property or acquired any property in his own 
name or others name out of the misappropriated fond belonging to such 
society. the Registrar may on his own motion or on the application of the 
28 (-6) 
5. 
,,,. 
6. 
(2) 
i!iffl\M~ ~. ~ 21 ~.2008 
Board of Directors, liquidator or any creditor make an order requiring such 
person or in the case of a dece~ person, his legal representative who 
inherits his estate, to repay or restore the money or property or any part 
thereof, with interest at such rate or to pay contribution and cdsts or 
compensation to such extent ··as . the Registrar may consider just and 
equitable: 
Provided that no order under this sub-section shall be made unless 
the person concerned is given a reasonable opportunity of being heard in the 
matters: 
Provided further that the liability of a legal representative of the 
deceased, shall be to the extent of the property of the deceased which has 
come to the hands of such legal representative. 
Any person aggrieved by the order made under sub-section (1) may within 
thirty days from the date of communication of the order to him, appeal to the 
State Government. 
Any order passed under sub-section (I) or (2) of section 4 for recovery of money if 
such money is not deposited within 30 days from the date of order shall be recovered 
in the following manner :-
(a) 
(b) 
(c) 
on a·certificatc signed by the Registrar or any person authorised by him in 
this behalf be deemed to be decree of a Civil Court and shall he executed in 
the same manner as a decree of such Court; or 
be executed according to the law for tbe time being in force for the recovery 
of arrears of land revenue ; or 
be executed by the Registrar or any other person empowered hy the Registrar 
in this behalf, by the- attachment and transfer in the manner as may be 
prescribed or sale or sale without attachment of any property of the person 
or a society against whom the order, decision or award has been obtained or 
passed: 
Provided that any appli,-,ation for the recovery under clause (b) shall 
be made to the Collector and shall be accotnpanieµ by a certificate signed by 
the Registrar or by any person authorised in this behalf. 
An order of delivery of possession of immovable property against any person passed 
under this Act shall be executed by the Registrar in the following manner, namely ;- · 
(a) . by serving a notice-on the.-person or persons in·possession requiring him/ 
them within such time as may appear reasonable after the receipt of the said 
notice, to vacate the same; and 
(b) if such notice is not obeyed, by removing or deputing a subordinate to 
~move any person·who may refuse to vacate the same; and 
(c) if the officerremoving any such person is resisted or obstructed by-any 
person, appoint any officer, who shall hold a sµmmaty inquiry into the facts 
of the case, and if satisfied tlfat the resistance or obst111ction was without 
any just cause, and that such resistance or obstfudion still continues may, 
without prejudicetoany proceeding to whith'·sucti person may be liable 
under any _ law for the time being in force for the punishment of such 
· ·resistance or obstruction~ take or cause; to be taken such steps and use or 
cause to be osect: such force as 1t1ay, in the opinion of such officer, he 
reasonably necessary for securing compliance with the order. 
Recovery or money. -W · 
R,:~toration of Pos­
.-,~;-.sion. ~-
1 
._ 
28 (7) · @'Cih-1•1~ ,i:1-;;itnr, ~ 21 ~ 2008 
'================================================== 
Service of Notice. 
Registrar and other 
officers etc. to be 
public servants. 
.- _Iridemnity for acts 
... ·· done in good faith. 
Powers of civil 
courts. 
1(_-
Power to make 
Rules. 
Repeal. 
7. 
8. 
9 . 
JO. 
11. 
17. 
(I) Every notice or order issued or made under this Act or, the rules may be 
served in person or on by properly addressing it to the last known place of 
residence or business of such person by registered post with acknowledg­
ment due letter containing the notice or order. 
(2) An acknowledgment purporting to be signed by such person or an 
endorsement by a postal employee that the person refused to take delivery 
may be deemed to be prima facie proof of service : 
· Provided that if service of the notice cannot be effected by any 
manner provided under this Act, or rules made thereunder, a copy thereof. 
shall be affixed at the notice board of the Registrar or Officer whom power 
has been delegated and last known place of residence of the person noticed . 
or at sorpe place of public resort in such place. • 
Every officer or person as well as employee exercising or authorised to exercise the 
powers under this Act or the Rules made thereunder shall be deemed to be a pub I ic 
servant within the meaning of section 21 of the Indian Penal Code. 1860 (XIV of 
1860). 
No suit, prosecution or other legal proceedings shall lie against the Registrar .or any 
. person subordinate to him or acting under his authority, in respect of anything done or 
purporting to have been done by him in good faith under this Act. 
(I) In exercising the powers conferred on him by or under this Act. the Registrar 
or other persons empowered by the Registrar shall have all the powers of a 
civil court while trying a suit, under the Code of Civil Procedure, 1908 
(V of 1908), in respect of the following matters, namely :-. 
(a) summoning and enforcing the attendance of any per-;on and 
examining him on oitth ; 
(b) requiring the discovery and production of any document ; 
(c) proof of facts by affidavits; and 
(d) issuing commissions for examination of witnesses. 
(2) In the case of any affidavit,· any officer appointed by the Registrar, his 
nominee or board of nominees or the liq1,1idator. as the case may be, may 
administer oath to the deponent. 
(I) State Government may make rules for carrying out the purposes of this Act. 
(2) All Rules made under this Act shall be laid before Legislative Assembly as 
sooa as possible. 
Chhattisgarh Co-operative Societies (Recovery of Losses) Ordinance, 2007 (No. 7 of 
2007) is hereby repeali;xt. 

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