The JAMMU AND KASHMIR SELF-RELIANT COOPERATIVES ACT, 1999

SELF-RELIANT COOPERATIVES
ACT, 1999
(Act No. X of 1999)

THE JAMMU AND KASHMIR SELF-RELIANT
COOPERATIVES ACT, 1999
(Act No. X of 1999)
CONTENTS
Preamble.
SECTION.
CHAPTER I
Preliminary
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
Incorporation
3. Registration of a new cooperative.
4. Conversion of a cooperative society into a cooperative under this Act.
5. Cooperative to be body corporate.
6. Articles of association.
7. Amendment of articles of association.
8. Name of a cooperative.
9. Location of head office.
10. Transfer of assets and liabilities.
11. Division.
12. Amalgamation.
13. Merger.
14. Registration offices.
15. Fee for services.
SELF-RELIANT COOPERATIVES ACT, 1999487
488 SELF-RELIANT COOPERATIVES ACT, 1999
SECTION.
CHAPTER III
Membership
16. Eligibility for membership in a cooperative.
17. Member admission.
18. Member withdrawal.
19. Cessation of membership.
20. Termination of membership.
21. Register of members.
22. Cooperative education.
23. Services primarily for members.
24. Exercise of rights.
25. V oting rights of members.
26. Members’ liability.
27. General body.
28. Functions, responsibilities and powers of general body.
29. General meetings.
30. Minutes of general meetings.
CHAPTER IV
Management
31. Board of directors.
32. Functions, responsibilities and powers of board.
33. Eligibility for directorship in a cooperative.
34. Elections.
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SECTION.
35. Tenure of directors.
36. Board meetings.
37. Minutes of board meetings.
38. Staff.
CHAPTER V
Finance
39. Mobilization of funds.
40. Deployment of funds.
41. Disposal of surplus.
42. Management of deficit.
43. Operation of special funds.
CHAPTER VI
Accountability
44. Accounts, records and documents to be maintained.
45. Audit.
46. Returns to be filed with the Registrar.
47. Inquiry.
CHAPTER VII
Offences
48. Offences.
CHAPTER VIII
Disputes
49. Disputes.
SECTION.
50. Arbitral tribunal.
CHAPTER IX
Dissolution
51. Dissolution by members.
52. Dissolution by Registrar.
53. Omitted.
54. Appointment of liquidator.
55. Duties of liquidator.
56. Powers of liquidator.
57. Final accounts.
CHAPTER X
Miscellaneous
58. Exemption from certain taxes, duties and fees.
59. Exemption from compulsory registration of Instruments.
Schedule A
Statement of Cooperative Identity
1. Definition.
2. Values.
3. Principles.
Schedule B
Subject matter for specific consideration when framing articles of
association of a cooperative
THE JAMMU AND KASHMIR SELF-RELIANT
COOPERATIVES ACT, 1999
(Act No. X of 1999)
[Received the assent of the Governor on 11th May, 1999 and  published
in the Government Gazette dated 14th May, 1999].
An Act to provide for the formation and transformation of
Cooperatives as self-reliant, self-help, mutual-aid, autonomous, voluntary,
democratic, business enterprises, owned, managed and controlled by
members for their economic and social betterment, through the financially
gainful provision of core services which fulfil a common need felt by
them and for the matters connected therewith or incidental thereto.
Be it enacted by the Jammu and Kashmir State Legislature in the
Fiftieth Year of the Republic of India as follows :––
CHAPTER I
Preliminary
1. Short title, extent and commencement.––(1) This Act may be
called the Jammu and Kashmir Self-Reliant Cooperatives Act, 1999.
(2) It extends to the whole of the 1[State of Jammu and Kashmir].
2[(3) It shall come into force on such date as the Government may,
by notification in the 3[Government Gazette], appoint.]
2. Definitions.— In this Act, unless the context otherwise
requires,––
4[(1) “arbitral tribunal” means an arbitral tribunal to be heded by an
officer of the cooperative not below the rank of Deputy Registrar of the
concerned District and consisting of four members, elected by the general
body of the cooperative from among its members or others, for settlement
of disputes under the provisions of this Act ;]
1. Now Union territory of Jammu and Kashmir.
2. Enforced w.e.f. 15-11-1999 vide SRO-497 dated 15-11-1999.
3. Now Official Gazette.
4. Clause (1) substituted by S.O. 3466(E) dated 05.10.2020.
SELF-RELIANT COOPERATIVES ACT, 1999491
492 SELF-RELIANT COOPERATIVES ACT, 1999
(2) “articles of association” means the regulations of a cooperative
as originally framed or as amended from time to time ;
(3) “board” means the governing body of a cooperative by whatever
name called, to which the direction of the affairs of the cooperative is
entrusted by the articles of association of the cooperatives ;
(4) “chief executive” means that individual, in paid or honorary
capacity, nominated or elected or appointed by the board of a cooperative
from among members, directors or others, in accordance with the articles of
association, who shall sue or be sued on behalf of the cooperative, and shall
perform such functions, and have such responsibilities and powers as are
also specified in the articles of association, and assigned by the board ;
(5) “common need” means that economic need which is common to
all those who wish to form a cooperative, or have taken membership in a
cooperative, and which the cooperative is expected to fulfil through the
provision of core services.
1[Explanation.— The expression “economic need which is common to all”
shall not mean banking services like accepting of deposits, opening savings, recurring
and fixed deposit accounts and providing loans under short term, medium term or
long term but includes thrift and credit business ;]
(6) “cooperative” where used as a noun, means an autonomous
association of persons united voluntarily to meet their common economic
need through a jointly owned and democratically controlled enterprise
registered under this  Act ;
(7) “Cooperatives Act” means the Jammu and Kashmir Self-Reliant
Cooperatives Act, 2[1999] ;
(8) “cooperative society” means a cooperative association registered
under the Jammu and Kashmir Cooperative Societies Act, 1960 ;
(9) “Cooperative Societies Act” means the Jammu and Kashmir
Cooperative Societies Act, 1960 ; and includes the Jammu and Kashmir
Cooperative Societies Act, 1989 ;
(10) “cooperative business” means a business which is committed
to functioning in accordance with the principles of cooperation, and
1.Explanation inserted by S.O. 3466(E) dated 05.10.2020.
2. Pl. see “Errata” issued on 8-3-2000.
SELF-RELIANT COOPERATIVES ACT, 1999493
includes all cooperatives registered under this Act, and all cooperative
societies registered under the Jammu and Kashmir Cooperative Societies
Act, 1960 ;
(11) “cooperative identity” means the statement of Cooperative
Identity specified in Schedule “A” of this Act ;
(12) “Cooperative with limited liability” means a Cooperative in
which the liability of its members for the debts is limited by its articles
of association to such form and extent as they may undertake to contribute
to any deficit in the assets of the Cooperative in the event of its being
wound up ;
(13) “Cooperative with unlimited liability” means a cooperative in
which its members are jointly and severally liable for the debts of
cooperative and to contribute to any deficit in the assets of Co-operative
in the event of its being wound up ;
(14) “core services” means those central services provided to
members, through which a cooperative intends to meet that economic need
common to all members for the fulfilment of which the cooperative was
formed, and the fulfilment of which is expected to result in the economic
and social betterment of members, and includes value adding services ;
(15) “court” means the principal Civil Court of original jurisdiction
in a district, and includes the High Court in exercise of its ordinary
original civil jurisdiction ;
(16) “deficit” means the excess of expenditure over income, arrived
at, the end of a financial year, after the payment  of interests if any, on
share capital ;
(17) “deficit charge” means the amount collected from/debited to the
accounts of members, in proportion to the use and/or non-use of the
services of the cooperative, in accordance with the articles of association
and resolutions of the general body, to meet deficit, if any, in whole or
part ;
(18) “delegate” means a member nominated for the time being by a
cooperative to represent its interests at the time of promotion of a
secondary cooperative, and/or at meetings of a secondary cooperative to
which the cooperative is affiliated ;
494 SELF-RELIANT COOPERATIVES ACT, 1999
(19) “financial year” means the twelve months accounting period as
provided for in the articles of association of a cooperative, for which the
annual statements of accounts are prepared for placement at the annual
general meeting of that cooperative ;
(20) “general body” in relation to a cooperative, means all its
members ;
(21) “general meeting” means a meeting of the general body called
and conducted in accordance with the provisions of this Act and the
articles of association of the cooperative ;
(22) “Government” means the Government of Jammu and  Kashmir ;
(23) “member” means 1[any person] who is in need of and is able to
use the core services of a cooperative and who is admitted as a member
of the cooperative, in accordance with the provisions of this Act and the
articles of association, and includes a “member-cooperative” ;
(24) “member-cooperative” means a primary or secondary cooperative
which is in need of and is able to use the core services of a secondary
cooperative, and which is admitted as a member of that secondary
cooperative, in accordance with the provisions of this Act and the articles
of association ;
(25) “office-bearer” means an individual elected by the board of a
cooperative to any office of such cooperative in accordance with its
articles of association ;
(26) “ordinary resolution” means a resolution of the general body
which has the approval of the majority of members with the right of vote,
present and voting at the general meeting ;
(27) “person” means 2[any person] competent to contract, or a
cooperative ;
(28) “potential member” means a person who does need the core
services being offered by a cooperative, may be accessing them, and is
eligible to be a member of that cooperative, but who has not yet applied
for membership and/or been admitted as a member ;
1. Substituted for certain words by S.O. 3466(E) dated 05.10.2020.
2. Substituted ibid for “permanent resident of the State”.
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(29) “president” means an elected director who is further elected by
the board to preside over its meetings and the meetings of the general
body, and to perform such other functions and have such other powers and
responsibilities as are specified in the articles of association and assigned
by the board ;
(30) “primary cooperative” means a cooperative 1[x x x x] ;
(31) “Registrar” means an individual appointed under this Act, and
includes any individual empowered to exercise the powers of the Registrar
under this Act ;
(32) “Registrar of Cooperative Societies” means the individual
appointed as such under the Cooperative Societies Act, and includes any
Individual empowered to exercise the powers of that Registrar of
Cooperative Societies under that Act ;
(33) “representative” means a person elected by a section of
members, in accordance with the articles of association, to participate on
their behalf at the representative general body meeting ;
(34) “representative general body” in relation to a cooperative
means all its representatives ;
(35) “representative general body meeting” means a meeting of the
representatives, called and conducted in accordance with the provisions of
this Act and the articles of association of the cooperative ;
(36) “secondary cooperative” means  a cooperatives whose members
are cooperatives ;
(37) “special resolution” means a resolution of the general body
which has the approval of at least 51% of all the members with right of
vote at the time of the general meeting ;
(38) “service” means such facilities as are organized primarily for
being provided to members to meet the objective of the cooperative ;
(39) “surplus” means the excess of income over expenditure, arrived
at, at the end of the financial year, after the payment of interest, if any,
on share capital, and before the payment of surplus refund, and allocation
of reserves and other funds ;
1.Words omitted by S.O. 3466(E) dated 05.10.2020.
496 SELF-RELIANT COOPERATIVES ACT, 1999
(40) “surplus refund” means the refund from the surplus given/
credited to the accounts of members, in proportion to their use of the
services of the cooperative in accordance with the articles of association
and resolutions of the general  body ;
(41) “this Act” means the Jammu and Kashmir Self-Reliant
Cooperatives Act, 11999.
2[(42)“thrift and credit cooperative” means coming together of a group of
people with common interest who have agreed to pool their resources together
from which loan facilities are made available to the members.]
CHAPTER II
Incorporation
3. Registration of a new cooperative. ––(1) Notwithstanding anything
contained in any Law for the time being in force all new Cooperatives
shall 3[x x x x] be registered under this Act :
4[Provided that the promoters of a Co-operative for promotion of
poultry, hatchery or dairy in the 5[Union territory of Jammu and Kashmir]
may, notwithstanding anything contained in sub-section (1), apply for
registration of such a cooperative under the Jammu and Kashmir Co-
operative Societies Act, 1989 and thereafter such a Co-operative shall be
registered under the said Act on fulfillment of the conditions laid down
thereunder for such registration, including powers of inspection, audit and
supervision by the Government :
Provided further that the Government may provide any assistance or
aid to any Co-operative on such terms and conditions and after execution
of a memorandum of understanding in such forms, as may be prescribed].
(2) An application for registration may be submitted to the Registrar
by hand or by registered post, signed by the individuals who wish to form
a primary cooperative or by the delegates of cooperatives which wish to
form a secondary cooperative.
1. Pl. see “Errata” issued on 8-3-2000.
2. Clause (42) inserted by S.O. 3466(E) dated 05.10.2020.
3. Words “comprise of permanent residents of the State and” omitted ibid.
4. Added by Act XV of 2005, s. 2.
5. Substituted for “State” by S.O. 3466(E) dated 05.10.2020.
SELF-RELIANT COOPERATIVES ACT, 1999497
(3) Every such application shall be accompanied by :––
(a) the original of a declaration signed by the applicants expressing
commitment to the principles of cooperation as provided for in
Schedule A ;
(b) the original and one copy of the articles of association of the
proposed cooperative as adopted by the applicants ;
(c) a true copy of the resolution passed at a meeting by the
applicants adopting the articles of association; and
(d) a list of names of the applicants with their complete addresses.
(4) The Registrar shall register the cooperative and also take on
record its articles of association and communicate by registered post a
certificate of registration and the original of the registered articles of
association signed and sealed by him/her, within sixty days from the date of
submission of application, to such person as specified in the application :
Provided that :
(a) the application is in conformity with the requirements laid
down by this Act ; and
(b) the proposed articles of association are not contrary to the
provisions of this Act.
(5) If the conditions laid down in sub-sections (3) and (4) are not
fulfilled, the Registrar shall communicate by registered post the order of
refusal together with the specific reasons therefor, within sixty days from
the date of submission of application, to such person as specified in the
application :
Provided that no order of refusal shall be passed except after giving
an opportunity of making representation on behalf of the applicants by
such person as specified in the application.
(6) Where a cooperative is registered, the certificate of registration
signed and sealed by the Registrar shall be conclusive evidence that the
association mentioned therein is a cooperative duly registered under this
Act, unless it is proven that the registration of the cooperative has been
cancelled.
498 SELF-RELIANT COOPERATIVES ACT, 1999
(7) Where within seventy five days of submission of the application
for registration, the person specified in the application receives neither
the certificate of registration nor the order of refusal 1[the Registrar shall
assign the reasons for non-registration of the cooperative].
4. Conversion of a cooperative society into a cooperative under this
Act. —(1) Notwithstanding anything in the Cooperative Societies Act,
from the date of notification of this Act, any cooperative society
registered and functioning under that Act, which is not in receipt of any
share capital from the Government, at the time of seeking registration
under this Act, may apply for registration under this Act :
Provided that where the Government does have share capital in a
cooperative society desiring to convert itself into a cooperative under this
Act, the cooperative society may, before applying for registration under
this Act, return such share capital to the Government, and the Government
shall accept such returned share capital.
(2) An application for registration may be submitted to the Registrar
by hand or by registered post by the board of such cooperative society as
wishes to convert itself into a cooperative under this Act. On the basis of
a decision of a majority of members present at a meeting of the general
body of the cooperative society, called with at least twenty days notice,
and attended by at least twenty-five per cent of total members or five
hundred members, whichever is less.
(3) Every such application shall be accompanied by––
(a) a true copy of the resolution of the general body expressing
commitment to the principles of cooperation as provided for in
Schedule A ;
(b) the original and one copy of the articles of association of the
proposed cooperative as adopted by the general body ;
(c) a true copy of the resolution of the general body adopting the
articles of association:
(d) a true copy of the declaration of the general body stating that
the cooperative is not in receipt of any share capital from the
1. Substituted for “that person may move the court for redressal” by S.O. 3466(E) dated
05.10.2020.
SELF-RELIANT COOPERATIVES ACT, 1999499
Government or any other external source, and does not intend
ever to raise share capital from the Government or any source
other than members ;
(e) a true copy of  the latest annual report and audited statement
of accounts ;
(f) a true copy of the resolution of the general body along  with
particulars regarding the wiping off of accumulated losses,  if
any, from various reserves and/or by debiting to the accounts
of members as decided at the meeting ;
(g) a statement of the total number of members of the cooperative
society as on the day of the meeting, the members who
attended the meeting and the number who voted for the
resolution.
(4) The Registrar shall register the cooperative and also take on
record its articles of association and communicate by registered post a
certificate of registration and the original of the registered articles of
association signed and sealed by him/her within sixty days from the date of
submission of application, to such person as specified in the application :
Provided that––
(a) the application is in conformity with the requirements laid
down by this Act ; and
(b) the proposed articles of association are not contrary, to the
provisions of this Act.
(5) If the conditions laid down in sub-sections (3) and (4) are not
fulfilled, the Registrar shall communicate by registered post the order of
refusal together with the specific reasons therefor, within sixty days from
the date of submission of application to such person as specified in the
application :
Provided that no order of refusal shall be passed except after giving
an opportunity of making representation on behalf of the applicants by
such person as specified in the application.
500 SELF-RELIANT COOPERATIVES ACT, 1999
(6) Where a cooperative is registered, under sub-section (4), the
certificate of registration signed and sealed by the Registrar shall be
conclusive evidence that the association mentioned therein is a cooperative
duly registered under this Act, unless it is proven that the duly registration
of the cooperative has been cancelled.
(7) Where within seventy five days of submission of the application
for registration, the person specified in the application receives neither
the certificate of registration nor the order of refusal, that person may
move the Court for redressal.
(8) Where a cooperative is registered under sub-section (4), its
earlier registration as a cooperative society under the Cooperative
Societies Act shall stand cancelled and it shall send within seven days of
receipt of the registration certificate, by registered post, to the Registrar
of Cooperative Societies a copy of the registration of the registration
certificate under the Cooperative Societies Act, and a copy of the
registration certificate under this Act, and the Registrar of Cooperative
Societies shall, within seven days of receipt of such information, delete
the name of such cooperative society from the register.
(9) Where a cooperative is registered under sub-section (4), the
assets and liabilities, the rights and obligations, and the members of the
applicant cooperative society shall become the assets and liabilities, the
rights and obligations, and the members of the cooperative registered
under this Act, and all transactions of the applicant cooperative society
shall be deemed to have been the transactions of the cooperative
registered under this Act.
(10) Where a cooperative society is in receipt of loan or guarantee
from the Government at the time of applying for registration as a
cooperative under this Act, it shall apply within a month of registration
under this Act, to the Government for entering into a memorandum of
understanding with the Government for the loan and/or guarantee made
available by the Government, failing which it shall repay the entire
amount due as loan to the Government or other source for which
guarantee was made available by the Government, within six months from
the date of registration.
(11) Where, in accordance with sub-section (10), a memorandum of
understanding  is not entered into with the Government, for whatsoever
reason, and a cooperative does not repay to the Government or other
source such amounts as are due by it, it shall be competent for the
SELF-RELIANT COOPERATIVES ACT, 1999501
Government to recover from the cooperative the amounts due to it or to
any other source for which the Government stood guarantee in the same
manner as arrears in land revenue.
(12) Where a cooperative society which is a member of secondary
cooperative society is registered as a cooperative under this Act, the
cooperative may continue to receive services from the secondary
cooperative society and to participate in its affairs  for a period of one
year from the date of its registration under this Act, at the end of  which
period,  its membership in that secondary cooperative society shall cease,
unless, by then, the secondary cooperative society, too is registered under
this Act :
Provided that in all matters governing the internal functioning of the
cooperative, this Act shall prevail, whereas in matters governing relationship
of the cooperative with the secondary cooperative society to which it is
affiliated, the Cooperative societies Act shall prevail.
(13) Where a secondary cooperative society which has other
cooperative societies as its members is registered as a secondary
cooperative under this Act, it may continue to serve and have its affairs
managed by its member cooperative societies, for  a period of one year
from the date of its registration under this Act, at the end of which period
may have as its members only such cooperatives as are registered under
this Act :
Provided that in all matters governing the relationship between the
secondary cooperative and its member cooperative societies, the provisions
of this Act shall prevail.
5. Cooperative to be body corporate.–– The registration of an
association as a cooperative shall render it a body  corporate by the name
under which it is registered having perpetual succession and a common
seal. The cooperative entitled to acquire, hold and dispose of property, to
enter in contracts to institute and defend suits and other legal proceedings
and to do all other things necessary for purpose for which it was
constituted.
6. Articles of association. —(1) The members constituting
cooperative, shall have a set of articles of association formulated and
amended from time to time, in accordance with the provisions of this Act,
and the affairs of the cooperative shall be managed in accordance with the
conditions and procedures specified in the articles of association.
502 SELF-RELIANT COOPERATIVES ACT, 1999
(2) Except on such specific matters which the Act has provided for
and which the articles of association may further regulate on but not
contravene the functioning of every cooperative shall be regulated by its
articles of association.
(3) The articles of association may contain such matters as decided
by the members and shall be specific on all  matters listed in Schedule B
of this Act.
7. Amendment of articles of association. ––(1) A Cooperative may
decide, by a special resolution to amend the provisions of its articles of
association :
Provided that the text of  such proposed amendment with reasons
therefor shall be sent to each member, along with the notice of the general
meeting at which the proposed amendment is to be discussed.
(2) A copy of any amendment shall be forwarded by the cooperative
by registered post to the Registrar within a period of thirty days from the
date of the general meeting at which the resolution was passed.
(3) Every such information forwarded to the Registrar shall be
signed by the President and two Directors and shall be accompanied by
the following particulars :—
(a) a copy of the resolution agreeing to the amendment ;
(b) the date of the general meeting at which the amendment was
approved ;
(c) the date on which the amendment comes into force.
1[(4) The Registrar on being satisfied that the amendment is not in
contravention of the provisions of this Act, shall register the amendment and shall
provide a copy of registered amendment to the cooperative :
Provided that such action shall not preclude the Registrar from challenging
the legal validity of the amendment before the Court, after giving the cooperative a
fair opportunity to reconsider the amendment.]
8. Name of a cooperative.––(1) A Cooperative may not be registered
with the same name as another cooperative business already registered
under this Act or the Cooperative Societies Act :
1. Sub-section (4) substituted by S.O. 3466(E) dated 05.10.2020.
SELF-RELIANT COOPERATIVES ACT, 1999503
Provided that where the articles of association of a secondary
cooperative require all its members which are cooperatives to use a
common name, the name of each such member cooperative shall have its
location or other distinguishing feature included in the name at the
beginning or end of the common name.
(2) Every cooperative shall display its full name in legible characters
in a conspicuous position––
(a) at every office or place at which it carries on business ;
(b) in all notices and other official publications ;
(c) on all its contracts, business letters, orders for goods, invoices,
statements of account, receipts and letters of credit ; and
(d) on all  bills of exchange, promissory notes, endorsement,
cheques and orders for money it signs or that are signed on its
behalf.
(3) Every cooperative shall display its full name in legible characters
on its common seal.
(4) A cooperative with limited liability shall have as a suffix to, or
as part of its name, the expression “limited” or its equivalent in any
Indian language.
(5) Nothing in sub-section (2) shall prevent a cooperative displaying
more conspicuously than the full name, any shorter name by which it is
popularly known and which, too, is included in the articles of association.
(6) A cooperative may, by an amendment to its articles of association,
change its name :
Provided, however, that before changing its name it shall send notice
of its intention to change its name to the Registrar, along with  the
proposed name/s, and the Registrar shall, within fifteen days of receiving
such notice inform the cooperative if such name is already in use by
another cooperative.
(7) Where a cooperative changes its name, the Registrar shall enter
the new name of the cooperative on the register of cooperatives in place
of the former and issue a certificate to this effect.
504 SELF-RELIANT COOPERATIVES ACT, 1999
(8) The change of name of a cooperative shall not affect any rights or
obligations of the cooperative or only of its members or post members or
render defective any legal proceedings by or against it ; and any legal
proceedings which might have been continued or commenced by or against
the cooperative by its former name may be continued or commenced by its
new name.
(9) A cooperative which changes its name shall publicize such change
in name in a popular newspaper in the district in which its head office is
located.
9. Location of head office. ––(1) Every cooperative shall notify to the
Registrar the full address of its head office, within ninety days of being
registered as a cooperative.
(2) Every cooperative shall display in full the address of its head office
in legible characters in a conspicuous position,––
(a) at every office or place at which it carries on business ;
(b) in all notices and other official publications ;
(c) on all its contracts, business letters, orders for goods, involves,
statements of account, receipts and letters of credit ; and
(d) on all bills of exchange, promissory notes, endorsements, cheques
and orders for money it signs or that are signed on its behalf.
(3) A cooperative may, by a resolution of the board of directors, change
the address of its head office :
Provided, however, that it shall give notice of such change to its
members, creditors, the Registrar and to any secondary cooperative/s to which
it may be affiliated, within fifteen days of the board resolution.
(4) The Registrar shall, within fifteen days of receiving information
from a  cooperative, take on record in the register of cooperatives, the full
address of the head office of a cooperative and any changes thereof.
10. Transfer of assets and liabilities. ––(1) A cooperative may by a
special resolution, decide to transfer its assets and liabilities, in whole or in
part, to any other cooperative which agrees, by a special resolution to receive
such assets and liabilities.
SELF-RELIANT COOPERATIVES ACT, 1999505
(2) Where special resolutions are passed under sub-section (1), each
cooperative shall give notice thereof together with a copy of the resolution
passed by it to all its members and creditors, and notwithstanding any
provision in the articles of association or contract to the contrary, any member
other than those who voted  in favour of the proposed transfer of assets and
liabilities and any creditor shall, during a period of fifteen days from the
date of service of the notice upon him/her, have the option of withdrawing
the shares, deposits or loans from the cooperative, as the case may be, subject
to discharge of his/her obligations to the cooperative.
(3) Any member or creditor who does not exercise his/her option within
the period specified in sub-section (2) shall be deemed to have assented to
the resolution.
(4) The special resolutions passed under sub-section (1) shall not take
effect until,––
(a) all claims of the members and creditors of each cooperative who
have exercised the option  under sub-section (2) have been met
in full or otherwise satisfied ; and
(b) information about the transfer of assets  and  liabilities has been
sent by the cooperatives concerned to the Registrar and his/her
acknowledgment of receipt of the information  received.
(5) When special resolutions passed under sub-section (1) take
effect, the resolutions shall be sufficient conveyance to vest the assets and
labilities in the transferee without any further assurance.
(6) When a cooperative transfers the whole of its assets and liabilities
to any other co-operative under this section, the registration of the
Cooperative shall stand cancelled and shall  be deemed to have been dissolved
and shall cease to exist as a corporate body and the Registrar shall delete
the name of the cooperative from the register of cooperatives.
11. Division. ––(1) A cooperative may, by a special resolution, decide
to divide itself into two or more cooperatives.
(2) Where a special resolution is passed under sub-section (1), the
cooperative shall  give notice thereof together with a copy of the resolution
to all its members and creditors and, notwithstanding any provision in the
articles of association or contract to the contrary, any member other than
506 SELF-RELIANT COOPERATIVES ACT, 1999
those who voted in favour of the proposed transfer of assets and liabilities
and any creditor shall, during a period of fifteen days from the date of service
of the notice upon him/her, have the option of withdrawing his/her shares,
deposits or loans from the cooperative, as the case may be, subject to
discharge of his/her obligations to the cooperative..
(3) Any member or creditor who does not exercise his/her option within
the period specified in sub-section (2) shall be deemed to have assented to
the resolution.
(4) A special  resolutions passed under sub-section (1) shall not take
effect until :––
(a) all claims of the members and  creditors of the cooperative who
have exercised the option under sub-section (2) have been met in
full or otherwise satisfied ;
(b) information of the intended division and settlement of
claims of members and creditors is sent to the Registrar and his/
her acknowledgment of  receipt of the information is obtained ;
and
(c) the certificates of registration and the copies of the registered
articles of association  of the resultant cooperatives, signed  and
sealed by the Registrar, are issued in accordance with section 4.
(5) When a cooperative divide itself into two or more cooperatives
under this section the registration of the cooperative shall stand cancelled
and  it shall be deemed to have been dissolved and shall cease to exist as a
corporate  body and the Registrar shall delete the name of the cooperative
from the register of cooperatives.
(6) When a cooperative divides itself into two or more cooperatives,
each member who has assented to the division shall be deemed to have
become a member of that newly formed cooperative to which his/her interests
were transferred, in accordance with the scheme of division approved by
the general body.
(7) When a special resolution passed under sub-section (1) takes
effect, the resolution shall be sufficient conveyance to vest the assets and
liabilities to the  transferees without any further assurance.
SELF-RELIANT COOPERATIVES ACT, 1999507
12. Amalgamation. ––(1) Any two or more cooperatives may, by special
resolutions, decide to amalgamate themselves and form a new cooperative.
(2) Where special resolutions are passed under sub-section (1), each
cooperative shall give notice thereof together with a copy of the resolution
passed by it to all its members and creditors, and notwithstanding any
provision in the articles of association or contract to the contrary, any member
other than those who voted in favour of the proposed merger, or creditor
shall, during a period of fifteen days from the date of service of the notice
upon his/her, have the option of withdrawing his/her shares, deposits or loans
from the cooperative, as the case may be, subject to the discharge of  his/her
obligations to the cooperative.
(3) Any  member or creditor who does not exercise his/her option within
the period specified in sub-section (2) shall be deemed to have assented to
the resolution.
(4) The special resolutions passed under sub-section (1) shall not take
effect until :––
(a) all claims of the members and creditors of each cooperative
who have exercised the option under sub-section (2) have been
met in full or otherwise satisfied ; and
(b) information of the intended amalgamation and settlement of
claims of members and creditors is sent to the Registrar and
his/her acknowledgment of receipt of the information is
obtained and
(c) the certificate of registration and a copy of the articles of
association of the resultant cooperative, signed and sealed by
the registrar, is issued in accordance with section 4.
(5) When two or more cooperatives amalgamate themselves into a
new cooperative under this section, the registration of the cooperatives so
amalgamated shall stand cancelled and they shall be deemed to have been
dissolved and shall cease to exist as corporate bodies, and the Registrar
shall delete the names of the cooperatives from the register of cooperatives.
(6) When two or more cooperatives amalgamate themselves into a
new cooperative under this section, all the members of the cooperatives
who have assented or are deemed to have assented to the amalgamation
shall be deemed to have become members of the new cooperative.
508 SELF-RELIANT COOPERATIVES ACT, 1999
(7) When special resolutions passed under sub-section (1) take effect,
the resolutions shall be sufficient conveyance to vest  the assets and labilities
in the transferee without any further assurance.
13. Merger. ––(1) A cooperative may, by a special resolution, decide
to merge itself into any other cooperative which agree by a special resolution,
to such merger.
(2) Where special resolutions are passed under sub-section (1), each
cooperative shall give notice thereof together with a copy of the resolution
passed by it to all its members and creditors, and notwithstanding any
provision in the articles of association or contract to the contrary, any member
other than those who voted in favour of the proposed merger, or creditor
shall, during a period of fifteen days from the date of service of the notice
upon him/her, have the option of withdrawing his/her shares, deposits or
loans from the cooperative, as the case may be, subject to the discharge of
his/her obligations to the cooperative.
(3) Any  member or creditor who does not exercise his/her option within
the period specified in sub-section (2) shall be deemed to have assented to
the resolution.
(4) The special resolutions passed under sub-section (1) shall not take
effect until,––
(a) all claims of the members and creditors of each cooperative
who have exercised the option under sub-section (2) have been
met in full or otherwise satisfied ; and
(b) information of the intended merger and settlement of claims of
members and creditors is sent to the Registrar and his/her
acknowledgment of receipt of the information is obtained.
(5) When a cooperative merges itself  into any other cooperative under
this section, the registration of the cooperative shall stand cancelled and it
shall be deemed to have been dissolved and shall cease to exist as a corporate
body, and the Registrar shall delete the name of the cooperative from the
register of cooperatives.
(6) When a cooperative merges itself into any other cooperative under
this section, the members of the first cooperative who assented to the merge,
shall be deemed to have become the members of the second cooperative.
SELF-RELIANT COOPERATIVES ACT, 1999509
(7) When special resolutions passed under sub-section (1) take effect,
the resolutions shall be sufficient conveyance to vest  the assets and liabilities
in the transferee without any futher assurance.
14. Registration offices. ––(1) For the purpose of registration  of
cooperatives under this Act there shall be offices at such places as the
Government thinks fit.
(2) The Government shall appoint a Registrar of Cooperatives and
such other individuals as it thinks necessary to carry out the duties, to perform
the functions, and to exercise the powers of the Registrar in pursuance of
this Act.
(3) No individual appointed under this section shall, either during the
course of his/her service with the Government or for a period of three years
thereafter serve in any capacity as an employee or as a director with any
cooperative :
Provided that this restriction shall not apply where the individual
appointed under this section is a member of a cooperative.
15. Fee for service. ––(1) Every application for registration under this
Act shall be accompained by a registration fee amounting to one per cent of
the authorised equity capital of the proposed cooperative, such however,
that the fee shall be not less than rupees one hundred and not more than
rupees five thousand :
Provided that the fee shall be rupees two hundred in the case of such
cooperatives as do not intend to have any equity capital.
(2) The Registrar may declare a reasonable scale of fee to be paid by
cooperatives and others for various services rendered by him/her under this
Act.
CHAPTER III
Membership
16. Eligibility for membership in a cooperative.–– No person shall be
admitted as member of a cooperative except the following namely :—
(a) the person who needs the services of co-operative, expresses
willingness to accept the responsibility of membership and
510 SELF-RELIANT COOPERATIVES ACT, 1999
meets  such other conditions as may be specified in the articles
of association of the Cooperative and is in a position to use the
services, provided he is :––
(i) competent to 1contract under section 11 of 2[the Indian
Contract Act, 1872 (9 of 1872)] ;
3[x x x x] :
Provided that the cooperative is in a position to extend its
services to the applicant ;
(b) any other Cooperative registered under this Act ;
(c) a firm, company or any other body corporate under any Law
for the time being in force or any society registered under 4[the
Societies Registration Act, 1860 (21 of 1860)] :
Provided that every Partner, Director or member as the case
may be of such firm, Company, corporate body or society is a
permanent resident of the State.
(2) Every applicant for membership, and every member of a
cooperative must keep each cooperative of which the person is a  member,
informed of membership in other cooperatives and it shall be available to a
cooperative to refuse admission or remove from membership on grounds,
among others, of dual or conflicting membership.
17. Member admission. ––(1) Admission to membership shall be made,
in accordance with the procedure specified in the articles of association,
only by an elected board.
(2) Where admission is refused, the decision with the reasons thereof
shall be communicated by registered post to such applicant within fifteen
days  of the date of the decision, or within sixty days from the date of
application for membership, whichever is earlier.
(3) Where an applicant has been refused  admission by the  board, or
has had no response from the board, the applicant may request the board to
1. Pl. see “Errata” issued on 8-3-2000.
2. Substituted for “the Jammu and Kashmir Contract Act, Samvat 1977” by S.O. 3466(E) dated
05.10.2020.
3. Sub-clause (ii) omitted ibid.
4. Substituted ibid for “the Jammu and Kashmir Societies Registration Act, Samvat 1998”.
SELF-RELIANT COOPERATIVES ACT, 1999511
place the matter for review by the general body. The board shall place the
matter before the general body at its next general meeting and the decision
of the general body shall be final :
Provided that the applicant shall be given an opportunity to be heard
by the general body.
18. Member withdrawal. —(1) a member may at any time withdraw
from membership in a cooperative in accordance with the procedure specified
in the articles of association of that cooperative.
(2) Withdrawal from membership will nonetheless require the person
to fulfill such obligations as  were undertaken/assumed as a member, under
the provisions of this Act, the articles of association or other agreements.
19. Cessation of membership. —(1) A person shall cease to be a member
on death or on incurring such disqualification as may be specified in the
articles of association.
(2) Every cooperative shall inform, in the event of the death of the
member, the nominee of the member, and in every other instance, the member,
about the cessation of membership for the statement of accounts.
20. Termination of membership. —(1) The board of a cooperative may
terminate the membership of a person who has acted adversely to the objects
and int

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