LexThe Gujarat Cooperative societies Act-1961
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GOVERNMENT OF GUJARAT
LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT
GUJARAT ACT NO. X OF 1962
The Gujarat Co-operative Societies Act, 1961
(As modified upto the 31st May, 2012)
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
THE GUJARAT CO-OPERATIVE SOCIETIES ACT, 1961
...........................
CONTENTS.
PREAMBLE.
SECTIONS.
CHAPTER I.
PRELIMINARY.
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II.
REGISTRAR AND REGISTRATION.
3. Registrar and other officers and their powers.
4. Societies which may be registered.
5. Registration with limited or unlimited liability.
6. Conditions of Registration.
7. Power to exempt societies from conditions as to registration.
8. Application for Registration.
9. Registration and provisional registration, certificate of registration.
10. Register of societies.
11. Power of Registrar to decide certain questions.
12. Classification of societies.
13. Amendment of by-laws of society.
14. Power to direct amendment of by-laws.
15. Change of name.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
16. Change of liability.
17. Amalgamation, transfer, division or conversion of societies.
17A. Powers to direct amalgamation and re-organisation of
societies in public interest, etc.
18. Cancellation of registration of amalgamated, divided or converted societies.
19. Reconstruction of societies.
20. Cancellation of registration.
21. Partnership of societies.
CHAPTER III.
MEMBERS AND THEIR RIGHTS AND LIABILITIES.
22. Person who may become member.
23. Removal from membership in certain circumstances.
24. Open membership.
25. Nominal associate and sympathiser member.
26. Cessation of membership.
27. No rights of membership to be exercised till due payments are made
28. Voting powers of members.
29. Restrictions on holding of shares.
30. Restrictions on transfer of share or interest.
31. Transfer of interest on death of member.
32. Share or interest not liable to attachment
33. Right of members to see books, etc.
34. Liability of person who has ceased to be member.
35. Insolvency of members.
36. Expulsion of members.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
CHAPTER IV
INCORPORATION, DUTIES AND PRIVILEGES OF SOCIETIES.
37. Societies to be bodies corporate.
38. Address of societies.
39. Register of members.
40. Copy of Act, etc., to be open to inspection.
41. Admissibility of copy of entry as evidence.
42. Exemption from compulsory registration of instruments relating to shares and
debentures of society.
43. Power to exempt from taxation.
44. Restriction on borrowings.
44A. Power of Committee of co-operative credit structure.
45. Restrictions on making loans.
46. Restrictions on other transactions with non-members.
47. Change and set-off in respect of share or interest of member on immovable
property of members borrowing from certain societies.
48. Prior claim of society.
49. Charge on immovable property of members borrowing from certain societies.
50. Deduction from salary to meet society’s claim in certain cases.
CHAPTER V.
STATE AID TO SOCIETIES.
51. Direct partnership of State Government in societies.
52. Indirect partnership of State Government in societies.
53. Principal State Partnership Fund.
54. Subsidiary State Partnership Fund.
55. Approval of State Government for purchase of shares.
56. Liability to be limited in respect of certain shares.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
57. Restriction on amount of dividend.
58. Indemnity of Apex and Central Societies.
59. Disposal of share capital and dividend, etc.
60. Disposal of Principal or Subsidiary State Partnership Fund on winding up of
Apex or Central Society.
61. Principal of Subsidiary State Partnership Fund not to form part of assets.
62. Agreement by State Government and Apex societies.
63. Other forms of State aid to societies.
64. Provisions of this Chapter to override other laws.
CHAPTER VI.
PROPERTY AND FUNDS OF SOCIETIES.
65. Fund not to be dividend.
66. Appropriation of profits.
67. Reserve Fund.
67A Bad Debt Reserve Fund.
68. Restriction on dividend.
69. Contribution to Education Fund of Gujarat State Co-operative Union.
70. Contribution to public purposes.
71. Investment of Funds.
72. Employees provident fund.
CHAPTER VII.
MANAGEMENT OF SOCIETIES.
73. Final authority of society.
73A. Freedom for affiliation or disaffiliation with a federal society of choice.
74. Committee, its powers and functions.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
74A. Disqualification for being designated officer simultaneously of certain specified
societies or for being designated officer of the same society for more than six
years.
74B. Reservation of seats on committees of certain societies for Scheduled Castes
and Tribes and small and marginal farmers.
74C. Provision for conduct of elections committees and officers of certain societies
and term of office of members of such committees.
74D. Appointment of custodian in certain circumstances.
75. Handing over records and property to new Chairman on election.
75A. Restriction on rates of sitting foes and travelling and daily allowances of
members of committees.
76. Appointment of officers and employees and their conditions of service.
76A. Appointment or removal of Managing Director or Chief Executive Officer to be
approved.
76B. Removal of officer.
77. Annual general meeting.
78. Special general meeting.
79. Acts of societies, etc., not to be invalidated by certain defects.
80. Power to appoint Government nominee.
80A. Extension of term of nominated committee or appointment of custodian.
81. Super session of committee.
81A. Super session of Committee of Primary Agricultural Credit Co -operative
Society.
82. Register’s power to enforce performance of obligations.
83. Register’s power to seize records, etc.
CHAPTER VIII.
AUDIT, INQUIRY, INSPECTION AND SUPERVISION.
84. Auditor.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
85. Rectification of defects in accounts.
86. Inquiry by Registrar.
87. Inspection of books of indebted society.
88. Inspection of books by Registrar or Financing Bank or federal society.
89. Suspension of officer or servant of Society.
90. Costs of inquiry and inspection.
91. Mode of recovery of sums imposed as penalty or awarded as costs.
92. Registrar to bring defects disclosed in inquiry or inspection to notice of society.
93. Power of Registrar to assess damages against delinquent promoters, etc.
94. Power to enforce attendance, etc.
95. Constitution or recognition of federal society to supervise working of societies.
CHAPTER IX.
PROCEDURE FOR DECIDING DISPUTERS.
96. Disputes.
97. Limitation.
98. Settlement of disputes.
99. Procedure for settlement of disputes and power of Registrar, his nominee or
board of nominees.
100. Attachment before award.
101. Decision of Registrar or his nominee, or board of nominees.
102. Appeal against decision of Registrar or his nominee or board of nominees.
103. Money how recovered.
104. Private transfer of property made after issue of certificate void against society.
105. Transfer of property which cannot be sold.
106. Recovery of crop loans.
CHAPTER X.
LIQUIDATION.
107. Winding up.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
108. Appointment of liquidator.
109. Appeal against order of winding up.
110. Power of Liquidator.
111. Effect of order of winding up.
112. Bar of suit in winding up and dissolution matters.
113. Audit of Liquidator’s accounts.
114. Termination of liquidation proceedings.
115. Disposal of surplus assets.
CHAPTER XA.
INSURED-CO-OPERATIVE BANKS.
115. A Order foe winding up, reconstruction, super session of committee, etc. of
insured Co-operative Bank not to be made without sanction or Requisition of
Reserve bank of India.
CHAPTER XB.
CERTAIN OTHER PROVISIONS RELATING TO URBAN
CO-OPERATIVE BANKS
115B. Definitions.
115C. Qualifications and disqualifications for being committee member.
115D. Right to vote.
115E. Term of officers.
115F. Ensurance of certain things by Committee.
115G. Urban Bank credit Equalization Fund.
115H. Officers and theirs punishment and Cognizance
115I. Application of the provisions of section 84 to specified bank.
115J. Chapter to override other provisions of Act.
115K. Savings.
115L. transitory provisions.
CHAPTER XI
LAND DEVELOPMENT BANKS.
116. Application of Chapter to certain Land Development Bank.
117. Definitions
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
118. Appointment, powers and functions of Trustee.
119. Issue of debentures.
120. Guarantee by State Government.
121. Vesting of property in trustee and debenture holder’s charge on assets.
122. Priority of mortgage.
123. Order granting loans conclusive of certain matters.
124. Mortgages executed in favour of Primary Land Development Banks to stand
vested in State Land Development Banks.
125. Registration of Mortgages in favour of Land Development Banks.
126. Mortgages not to be questioned on insolvency of mortgagor.
127. Right of land development bank to pay prior debts of mortgagor.
128. Mortgages executed by managers of joint Hindu families.
129. Restrictions on lease.
130. Section 8 of Act XXXII of 1956 to apply to mortgages to Land development
Bank, subject to certain modifications.
131. Power of Primary Land Development Bank to receive money and give
discharge.
132 Powers of land development bank where mortgaged property is destroyed or
security becomes insufficient.
133 Power to distrain.
134 Sale of mortgaged property.
135 Right of mortgage bank to buy mortgaged property.
136 Confirmation of sale.
137 Disposal of sale proceeds.
138 Certificate to purchaser, delivery of property and title of purchaser.
139 Recovery of loans on certificate by Registrar.
140 Collector to make recoveries during certain period.
141 Provision for guarantee funds to meet certain losses.
142 Agreements executed by members for loans advanced by Land Development
Banks to be conclusive evidence
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
143. Exemption of officer of Land Development Banks from personal appearance
before registering officers.
143A Transfer of rights and liabilities of Government in respect of schemes
sanctioned under Bom. XXVIII of 1942.
144. Service of notice.
145. Officers of banks not to bid at sales.
CHAPTER XI A.
ELECTIONS OF COMMITTES AND OFFICERS OF CERTAIN SOCIETIES
145A. Application.
145B. Definitions.
145C. Time when election to be held.
145D. Conduct of elections.
145E. Cost of conducting elections.
145F. Disqualification for membership.
145G. [Deleted.]
145H. [Deleted.]
145I. Removal or reduction of period of disqualification.
145J. corrupt practices.
145K. Maintenance of secrecy of voting.
145L. Officers etc. at election not to act for candidates or to influence voting.
145M. prohibition of canvassing in or near polling station.
145N. Penalty for disorderly conduct at the polling station.
145O. Penalty for mis conduct at the polling station.
145P. Penalty for illegal hiring or procuring of conveyances at elections.
145Q. Breaches of a official duty in connection with election.
145R. Removal of a ballot papers from polling station to be offence.
145S. other offences and penalties therefore.
145T. Application of section 149 to offences under this Chapter subject to certain
modifications.
145U. Disputes relating to elections to be submitted to the Tribunal.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
145V. Deposit towards cost for hearing and power to award cost.
145W. Contents of petition.
145X. Relief that may be claimed by the petitioner.
145Y. Powers to make rules for purposes of this Chapter.
145Z. Special provision for election of officers of specified societies.
CHAPTER XII.
OFFENCES AND PENALTIES.
146. Prohibition of use of the word “Co-operative”.
147. Offences.
148 Punishments for offences under section 147.
149. Cognizance of offences.
CHAPTER XIII.
APPEALS, REVIEW AND REVISION.
150. Gujarat State Co-operative Tribunal.
151. Review of orders of Tribunal.
152. Tribunal to have power of Civil Court.
153. Appeals.
154. Extension of period limitation of appellate authority in certain cases.
155. Power of State Government and Registrar to call for proceedings of
subordinate officers to pass orders thereon.
CHAPTER XIV.
MISCELLANEOUS.
156. Constitution of State Co-operative Council, its functions, etc.
157. Recovery of sums due to Government.
158. Competency of a member to transfer land or interest therein to society.
159. Registrar’s powers to recover certain sums by attachment and sale of property.
160. Registrar’s powers to give direction.
161. Power to exempt societies from provisions of Act.
162. Delegation of powers of State Government and of Registrar.
163. Branches etc. of societies outside the State.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
164. Registrar and other officers to be public servants.
165. Indemnity for acts done in good faith.
166. Bar of Jurisdiction of Courts.
167. Notice necessary in suits.
168. Rules.
169. Repeal saving and construction.
170. Companies Act no to apply.
SCHEDULE.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
GUJARAT ACT NO. X OF 19621*
[THE GUJARAT CO-OPERATIVE SOCIETIES ACT, 1961]
[1ST MARCH, 1962.]
Ahmedabad by Guj. 24 of 1964.$ Ahmedabad by Guj. 1 of 2008.
Ahmedabad by Guj. 31 of 1964. Ahmedabad by Guj. 9 of 2011.
Ahmedabad by Guj. 21 of 1969.
Ahmedabad by Guj. 8 of 1978.
Ahmedabad by Guj. 6 of 1981.**
Ahmedabad by Guj. 23 of 1982.@
Ahmedabad by Guj. 14 of 1983.
Ahmedabad by Guj. 17 of 1994.
Ahmedabad by Guj. 4 of 1997.
Ahmedabad by Guj. 13 of 2002.
An Act to consolidate and amend the Law relating to co-operative
societies in the State of Gujarat.
It is hereby enacted in the Twelfth Year of the Republic of India as
follows:-
CHAPTER I.
PRELIMINARY
1. (1) This Act may be called the Gujarat Co-operative Societies Act, 1961.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on such date as the State Government may, by
notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise requires,-
(1) “auditor” means a certified auditors appointed either by the Regi strar
or by a society to audit the accounts of the society ;
(2) “bye-laws” means bye-laws registered under this Act and for the time
being in force, and include registered amendments of such bye-laws;
Short title. extent
and
commencement.
Definitions.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
(3) “Central Bank” means a co -operative bank, the ob jects of which
include the creation of funds to be loaned to other societies ;
(4) “Certified auditor” means a person who possesses the prescribed
qualifications and is authorized of the affairs by the Registrar as an
auditor under section 84;
(5) “committee” means the committee of management, or other directing
body, to which the management of the affairs of a society is entrusted;
(6) “company” means a company as defined in the Companies Act, 1956,
and includes a Banking Company and also board, corporation or other
corporate body, constituted or established by any Central, State or
Provincial Act for the purpose of the development of any industry;
(7) “co-operative bank” means a society registered under this Act and
doing the b usiness of banking, as defined in clause (b) of sub -section
(1) of section 5 of the Banking Companies Act, 1949:
1a[(7A) "co-operative credit structure" means (i) the Primary Agricultural
Credit Co-operative Societies: (ii) the Central Co -operative Banks; and
(iii) the State Co-operative Bank;]
(8) “dividend” means the amount paid, out of the profit of a society, to a
member in proportion to the shares held by him ;
(9) “federal society” means society, not less than five members of which
are themselves societies ;
(10) “firm” means a firm registered under the Indian Partnership Act, 1932 ;
(11) “Land Revenue Code” means the Bombay Land revenue Code, 1879 as
in force in the Bombay and Saurashtra areas of the St ate of Gujarat or
as the case may be, that Code as in force in the Kutch area of the State
of Gujarat ;
(12) “Liquidator” means a person appointed a liquidator under this Act ;
I of 1956.
X of 1949.
IX of 1932.
Bom. V of 1879.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
(13) “ member” means a person joining an application for the registration
of a co-operative society which is subsequently registered, or a person,
duly admitted to membership of a society after registration, and
includes a nominal, associate or sympathiser member ;
1b[(13A) "National Bank" means the National Bank for Agriculture and
Rural Development established under section 3 of the National Bank
for Agriculture and Rural Development Act, 1981;]
(14) “officer” means a person elected or appointed by a society to any
office of such society according to it s bye -laws ; and includes a
chairman, vice-chairman, president, vice-president, managing director,
manager, secretary, treasurer, member of the committee, and any
other person elected or appointed under this Act, the rules of the bye -
laws, to give directions in regard to the business of such society ;
(15) “prescribed” means prescribed by rules ;
(16) “rebate” means any payment made in cash or kind out of the profits of
a society, to a member or any other person, on the basis of his
contribution to the business of the society ;
(17) “Registrar: means a person appointed to be the Registrar of Co -
operative Societies under this Act: and includes to the extent of the
powers of the Registrar conferred on any other person under this Act,
such person and includes an Additional or Joint Registrar ;
(18) “rules” means rules made under this Act ;
(19) “Society” means a co -operative society registered, or deemed to be
registered, under this Act;
(20) “society with limited liability” means a society having the liability of its
members limited by its bye-laws ;
(21) “society with unlimited liability” means a society, the members of
which are, in the events of its being wound up, jointly and severally
liable for and in respect of its obligations and to contribute to any
deficiency in the assets of the society ;
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
(22) “the state co -operative council” means the council constituted under
section 156 of this Act ;
(23) “tribunal” means the Gujarat State Co -operative Tribunal constituted
under this Act ;
(24) “working capital” means funds at the disposal of a society inclusive of
paid-up share capital, funds built out of profits, and money raised by
borrowing and by other means.
CHAPTER II.
REGISTRAR AND REGISTRATION.
3. (1) For carrying out the purposes of this Act, the State Government shall
appoint a person to be the Registrar of Co -operative Societies for the
State.
(2) To assist the Registrar in his functions under this Act, the State
Government may appoint such number of Additional Registrars, Joint
Registrars, Deputy Registrars, Assistant Registrars and other person
with such designations as it may think fit.
(3) The State Government may, by general or special order, confer on a
person or persons appointed under sub -section (2) all or any of the
power of the Registrar under this Act.
(4) Every person appointed under sub -section (2) shall work under the
general guidance, and the superintendence and control of the
Registrar.
4. A society, which has as its object the promotion of the economic interests or
general welfare of its members, or of the public, in accordance with co -
operative principles, or a society established with the object of facilitating the
operations of any such society, may be registered under this Act :
Provided that it shall not be registered if, in the opinion of the Registrar, it is
economically unsound, or its registration may have an adverse effect upon any other
society, or it is opposed to, or its working i s likely to be in contravention of public
policy.
5. A society may be registered with limited or unlimited liability.
Registrar and
officers and their
powers.
Societies which
may be registered.
Registration with
limited or
unlimited liability.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
6. (1) No society other than a federal society shall be regi stered under this
Act unless it consists of at least ten person (each of such persons being
a member of different family), who are qualified to be members under
this Act and who reside in the area of operation of the society.
1c[(1A) In case of the society in co -operative credit structure registered under
sub-section (1), the society shall have power to decide their respective
area of operation without any restrictions,]
(2) No society with unlimited liability shall be registered, unless all persons
forming the society reside in the same town or village, or in the same
group of villages.
(3) No Federal society shall be registered, unless it has at least five
societies as its members.
(4) Nothing in this Act shall be deemed to effect the regi stration of any
society made before the commencement of this Act.
(5) The word “limited” or “unlimited” shall be the last word in the name of
every society with limited or unlimited liability, as the case may be,
which is registered or deemed to be registered under this Act.
Explanation.—For the purposes of this section the expression “member of a
family” means a wife, husband, father, mother, grandmother, step -father, step -
mother, son, daughter, step -son, step -daughter, grand-son, grand -daughter, brother,
sister, half-brother, half-sister and wife of brother or half-brother.
7. Notwithstanding anything contained in this Act, the State Government may, by
special order in each case, exempt subject to such conditions, if any, as it may
impose, any society from any of the requirements of this Act as to registration.
8. (1) For the purposes of registration, an application shall be made to the
Registrar in the prescribed f orm, and shall be accompanied by four
copies of the proposed in the prescribed form, and shall be
accompanied by four copies of the proposed bye -laws of the society.
The person by whom, or on whose behalf, such application is made,
shall furnish such information in regard to the society, as the Registrar
may require.
(2) The application shall be signed–
Conditions of
registration.
Power to exempt
societies from
conditions as to
registration.
Application for
registration.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
(a) in the case of a society other than a federal society, by at least
ten persons (each of such persons being a member of a
different family) who are qualified under this Act, and
(b) in the case of a federal society, by at least five societies.
(3) No signature to an application on behalf a society shall be valid unless
the person signing is member of the committee of such society, and is
authorized by the committee by resolutions to sign on its behalf the
application for registration of the society and its bye -laws; and a copy
of such resolution is appended to the application.
9. (1) On receipt of an application for registration form a society—
(a) if the Register is satisfied that the society has complied with the
provisions of this Act and the rule as to registration and that its
bye-laws are not contrary to this Act the rul es, he shall register
the society and bye-laws; and
(b) if the Registrar is opinion that the application complies with the
requirements of section 8 but that its bye -laws are not in
conformity with the provisions of this Act and the rules, he may
provisionally register the society and by an order in writing
permit the society to perform such functions subject to such
conditions as he may specify in the order and may also by an
order in writing direct the society to amend within the period
prescribed in th is behalf its bye -laws so as to bring them in
conformity with this Act and the rules.
(2) When a society has been provisionally registered the Registrar shall, on
its compliance with the order made under clause (b) of sub -section (1)
finally register it and its bye-laws; and on its failure to comply with the
order shall cancel its provisional registration.
(3) A provisionally registered society shall not be deemed to be a society
registered under this Act.
(4) On the registration of a society, the Regist rar shall issue to it a
certificate of registration signed by him.
(5) A certificate of registration issued under sub -section (4) shall be
conclusive evidence that the society therein mentioned is duly
registered, unless it is proved that the registration has been cancelled.
Registration and
provisional
registration,
Certificates of
registration.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
(6) If the Registrar refuses to register the society, he shall forthwith
communicate his decision with reasons therefore, to the person who
has signed first on the application.
10. The Registrar shall maintain a register in the prescribed form of all societies
registered or deemed to be registered under this Act.
11. When, any question arises whether for the purpose of the formation, or
registration or continuance o f a society or the admission of a person as
member, of a society under this Act person is an agriculturist or a non -
agriculturist, or whether any person is a resident in a town or village or group
of villages, or whether two or more villages shall be consi dered to form a
group, or whether any person belongs to any particular tribe, class or
occupation, the question shall be decided by the Registrar.
12. The Registrar may classify all societies in such manner, and into such classes, as
he thinks fit; and the classification of a society under any head of classification
by the Registrar shall be final.
13. (1) No amendment of the bye -laws of a society shall be valid until
registered under this Ac t. For the purpose of registration of an
amendment of the bye -laws, a copy of the amendment passed, in the
manner prescribed, at a general meeting of the society, shall be
forwarded to the Registrar.
(2) If the Registrar is satisfied that the amendment so forwarded is no
contrary to this Act or the rules, he may register the amendment:
Provided that no order refusing an amendment shall be passed except after giving
the society an opportunity of being heard.
1d[Provided further that the application for registration of amendment of bye-laws
of a society shall be disposed of within sixty days from the date of its receipt.]
(3) When the Registrar registers an amendment of the bye -laws of a
society, he shall issue to the society copy of the amendment certif ied
by him, which shall be conclusive evidence of its registration.
(4) Where the Registrar refuses to register an amendment of the bye -laws
of a society, he shall communicate the order of refusal, together with
his reasons therefore, to the society.
Registra of
societies.
Power of Registrar
to decide certain
questions.
Classification of
societies.
Amendments
of bye-laws of
societies.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
14. (1) If it appears to the Registrar that an amendment of the bye -laws
except in respect of the name of objects of a society is necessary or
desirable in the interest of such society, he may call upon the society,
in the prescribe manner, to make the amendment with in such time as
he may specify.
(2) If the society fails to make the amendment within the time so
specified, the Registrar after giving the society an opportunity of being
heard and with the prior approval of the State Co -operative council,
may register the amendment, and shall thereupon issue to the society
a copy thereof certified by him. With effect from the date of the
registration of the amendment in the manner aforesaid, the bye -laws
shall be deemed to have been duly amended accordingly; and the bye -
laws as amended shall be binding on the society and its members.
15. (1) Subject to the provisions of the rules a society may, by resolution
passed at a general meeting, and with the approv al of the Register,
change its name but such change shall not affect any right or
obligation of the society, or of any of its members, or of any of the
persons who have ceased to be members; and any legal proceedings
pending before any person, authority or court may be continued by or
against the society, under its new name.
(2) When a society changes its name, the Registrar shall enter the new
name in its place in the register of societies, and shall also amend the
certificate of registration accordingly.
16. (1) Subject to the provisions of this Act and the rules, a society may by
passing a resolution and by amending its bye -laws, change the form or
extent of its liability.
(2) When a society has passed a resolution to change the fo rm or extent
of its liability, it shall give notice thereof in writing to all its members
and creditors and, notwithstanding anything in any bye -laws or
contract to the contrary, any member or creditor shall, during a period
of one month form the date of s ervice of such notice upon him, have
the option of withdrawing his investment in its shares, and his deposits
and loans, and demanding the payment of his other dues, if any.
Power to irect
amendment of bye-
laws.
Change of name
Changes of
Liability.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
(3) Any member or creditor who does not exercise his option within the
period specified in sub -section (2), shall be deemed to have assented
to the change.
(4) An amendment of the bye -laws of a society, changing the form or
extent of its liability, shall not be registered or take effect until, either-
(a) all members and creditors h ave assented, or deemed to have
assented, thereto as aforesaid; or
(b) all claims of members and creditors exercising the option,
under sub section (2) have been met in full.
17. (1) Subject to the provisions of the rules and the previous sanction of the
Register a society may, by resolution passed by two -thirds majority of
the members present and voting at a special general meeting held for
the purpose, decide—
(a) to amalgamate with another society;
(b) to transfer its assets and liabilities, in whole or in part, to any
other society;
(c) to divide itself into two or more societies;
(d) to convert itself into another class of society; or
(e) to change its object.
(2) Where the amalgam ation, transfer, division or conversion referred to
in sub-section (1) involves a transfer of the liabilities of society to any
other society, the Registrar shall not sanction the resolution of the
society unless he is satisfied that—
(i) the society, af ter passing such resolution, has given notice
thereof in writing to all its members, creditors and other
persons whose interests are likely to be affected (hereinafter, in
this section referred to as “other interested persons”), giving
the option, to be ex ercised within one month from the date of
the receipt of such notice, of becoming members of any of the
new societies, or continuing their membership in the
Amalgamation
transfer, division of
conversion of
societies.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
amalgamated or converted society, or of withdrawing their
investments in its shares, their deposits and loans and
demanding payment of their other dues, if any,
(ii) all the members and creditors and other interested persons,
have assented to the decision, or are deemed to have assented
thereto by having failed to exercise the option within the period
specified, have been met in full.
(iii) All claims of members and creditors and other interested
persons, who exercise the option within the period specified,
have been met in full.
(3) Notwithstanding anything contained in the Transfer of Property Act,
1882, or the Indian Registration Act, 1908, in the event of division or
conversion, the registration of the new societies or, as the case may
be, of the converted society, and in the event of amalgamation, on the
amalgamation the resolution of the societies concerned with
amalgamation, shall in each case be sufficient conveyance to vest the
assets and liabilities of the original society or amalgamating societies in
the new societies or converted or amalgamated society, as the c ase
may be.
(4) The amalgamation, transfer, division or conversion made under this
section shall not affect any right or obligation of the societies so
amalgamated, or of the society so divided or converted, or of the
transferee, or render defective any legal proceedings which might have
been continued or commenced by or against the societies which have
been amalgamated, or dividend or converted; and accordingly such
legal proceedings may be continued or commenced by or against the
amalgamated society, the converted society, the new societies or the
transferee, as the case may be.
2[17. (1) Where the Register is satisfied that it is essential in the public interest
or in the interest of co -operative movement, or for the purpose of
securing proper management of any society that two or more societies
should be amalgamated or that any society should be re -organized,
then, notwithstanding anything contained in section 17 but subject to
the provisions of this section, the Registrar may, after consulting such
federal society as may be notified in this behalf by the State
Government by order published in the Official Gazette, provide for the
IV of 1882. XVI
of 1908.
Power to direct
amalgamation and
reorganization of
societies in public
interest, etc.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
amalgamation of these societies into a single society or, as the case
may be, for the re -organization of that society, with such constitution,
property rights, interests and authorities, and such liabilities, duties
and obligations as may be specified in the order. Such order may also
provide for the constitution of the committee of management or any
other committees of the new amalgamated, or re -organized society,
the persons who shall be, or continue to be, the officers of such society
and the period after which such committee or committees m ay be re-
constituted.
(2) No order shall be made under this section unless,—
(a) a copy of the draft of the proposed order has been sent to the
society or each of the societies concerned;
(b) the Register has considered suggestions and objections if any
received either form the society or from any member or class of
members thereof or form any creditor or class of creditors
within such period (not being less then one month from the
date on whic h the copy of the order as aforesaid was received
by the society) as the Registrar may fix in that behalf, and has, if
necessary, modified the same in the light of such suggestions
and objections.
(3) The order referred in sub -section (1) may contain such incidental,
consequential and supplemental provisions as may, in the opinion of
the Registrar, be necessary to give effect to the amalgamation or re -
organization.
(4) Every member of each of the societies so amalgamated, shall be
deemed to be a member of the new amalgamated society, and every
member of the society so re -organized shall be deemed to be a
member of the new re -organized society and all such members shall
have all tights, privileges and liabilities of the members of the
concerned new societies:
Provided that any member of the new society so amalgamated, or re -organized
may, within such period and in such manner as may be prescribed, resign his
membership of the new society and on such resignation he shall be entitled to
withdraw his share and any other dues and interest in the society.
(5) (a) On the issue of an order under sub -section (1) in respect of any
societies or society, notwithstanding anything contained in any
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
law for the time being in force, all the assets, rights and
liabilities of the amalgamating societies, or, as the case may be,
the original society which is re-organized shall stand transferred
to, and vest in, the new amalgamated society, or, as the case
may be, the new re-organized society;
(b) the provisions of sub -section (3) and (4) of section 17 and the
provisions of section 18 shall apply in relation to the
amalgamation or re -organization of the societies under this
section as if —
(i) the order of amalgamation were a resolution of societies
concerned with amalgamation, and
(ii) the original society was re-organized under section 17.]
18. Where two or more societies have been amalgamated, or a society has been
divided or converted, the registration of such societies or society, as the case
may be, shall be cancelled on the date of registration of the new society or
societies so formed.
19. Where a compromise or arrangement is proposed—
(a) between a society and its creditors, or
(b) between a society and its members
the Registrar may, in the application of the society or of any member or of any
creditors of the society, or in the case of a society which is being wound up, of the
liquidator, order reconstruction in the prescribed manner, of the society.
20. (1) The Registrar shall make an order canceling the registration of a
society if it transfers the whole of its assets and liabilities to another
society, or amalgamates with another society, or divides itself into two
or more societies, or if its affairs are wound up or it has not
commenced business within a reasonable time its registration or has
ceased to function.
Cancellation of
registration of
amalgamated
divided or
converted societies.
Reconstruction of
societies.
Cancellation of
registration.
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
(2) An order made under sub -section (1) shall be published in the Official
Gazette.
(3) The society shall, form the date of such order of cancellation, be
deemed to be dissolved and shall cease to exist as a corporate body.
21. (1) Any two or more societies may, with the prior approval of the
Registrar, be resolution passed by three -fourths majority of the
members present and voting at a general meeting of each such society,
enter into partnerships for carrying out any specific business or
businesses, provided that each member of each so ciety has had clear
ten days written notice of the resolution, and the date of the meeting.
(2) Nothing in the Indian Partnership Act, 1932 and the Indian Companies
Act, 1956 shall apply to such partnership.
CHAPTER III.
MEMBERS AND THEIR RIGHTS AND LIABILITIES.
22. (1) Subject to the provisions of section 25, no person shall be admitted as
member of a society except the following, that is to say—
(a) an individual, who is competent to contract under the Indian
Contract Act, 1872;
(b) a firm, company, 3[or any other body corporate constituted
under any law for the time being in force] or a society
registered, under the societies Registration Act, 1860,
(c) a society registered, or deemed to be registered, under this Act;
(d) the State Government;
4[(e) a local authority;
(f) a public trust registered or deemed to have been registered
under Bombay Public Trusts Act, 1950;]
4a[(g) a group of the individuals eligible under clause (a), whether
incorporated or not and whether established or not by or under
any law:]
Partnership of
societies.
XI of 1932.
I of 1956.
Person who may
become member.
IX of 1872.
XXI of 1860.
Bom. XXIX of 1950.
[1962: Guj. X Gujarat Co-operative Societies Act, 1961
Provided that, the provisions of clause (a) shall not apply to an individ ual seeking
admission to a society exclusively formed for the benefit of students of a school or
college:
Provided further that subject to such terms and conditions as may be laid down by
general or special order 5[a firm or a company or other body corpora te constituted
under any law for the time being in force] may be admitted as member only of su ch
society as may be prescribe
6[6a[(2) Every person seeking admission as a member of a society, if duly qualified for
membership of such society under the provisions of this Act, the rules and the
bye-laws of the society, may make an application to the society for
membership. The society shall take decision on the application and shall
communicate the decision within a period of three months from the dale of
the receipt of the application.]
(3) Notwithstanding anything contained in sub -section (1), the State Government,
may, having regard to the fact that the interest of any person or class of
persons engaged in or carrying on any profession, business or empl oyment
conflicts or is likely to conflict with the objects of any society or class of
societies by general or special order published in the Official Gazette, declare
that person or such class of persons shall be disqualified from being admitted,
or for co ntinuing, as member or members or shall be eligible for membership
only to a limited extent, of any society or class of societies, so long as such
person or persons are engaged in or carry on that profession, business, or
employment as the case may be.]
6b[(4) All the depositors having deposits of rupees ten thousand or above for a
minimum period of one -year and the borrowers shall be compulsorily made
members in the Primary Agricultural Credit Co-operative Societies:
Provided that the dep ositors having deposits less than rupees ten
thousand shall be made nominal members.
(5) The State Government may> by notification in the Official Gazette, alter the
limit of rupees ten thousand specified by sub section (4) and also specify such
amount of deposit as it deems necessary for a class of society and different
amount may be
1962: Guj. X] Gujarat Co-operative Societies Act, 1961
specified for different classes of societies. In the case of borrowing members,
the society shall prescribe in its bye-laws, linking shares subject to mini muni of
two and half per cent, of the loan taken by the borrowers.]
23. (1) Where a person becomes a member of any society on his making a
declaration as required by the bye-laws of the society or otherwise and
such declaration as found to be false, then such person shall be
disqualified to continue as a member of the society.
(2) Where a person continues as a member of any society notwithstanding
the disqualification incurred by him 7[under sub-section (3) of sectio n
22 or under sub -section (1)] he shall be removed from the society by
the Registrar:
Provided that the Registrar shall, before making an order of removal give the
person an opportunity of being heard.
8[24. (1) No society shall, without sufficient cause, refuse admission to
membership to any person duly qualified therefore under the
provisions of this Act, the rules and bye-laws of such society.
(2) Where the society does not comExcerpt shown. Open the full act in Lexace.