LexThe Kerala Co-operative Societies Act 1969
Kerala · state statute
Open in Lexace · Ask the AI about this actTHE KERALA CO-OPERATIVE SOCIETIES ACT,
1969
(Act 21 of 1969)
An Act to consolidate, amend and unify the laws relating to
Co-operative Societies in the State of Kerala.
1[Preamble.-WHEREAS with a view to provide for the orderly
development of the Co-operative sector in the State, 2[it is essential to
organize the Co-operative Societies in accordance with Co-operative
principles as self governing] democratic institutions, to achieve the
objects of equity, social justice and economic development, as
envisaged in the directive principles of State Policy of the
Constitution of India, 2a[and to promote scientific and technological
development, health care, market intervention and management
excellence in the Co-operative Sector] it is expedient to consolidate,
amend and unify the law relating to Co-operative societies in the
State;]
BE it enacted in the Nineteenth Year of the Republic of
India as follows:-
1 Substituted by Act 1 of 2000
2 substituted & 2a inserted by Act 7 of 2010
CHAPTER I
Preliminary
1.Short title, extent and commencement.-
(1)This Act may
be called the Kerala Co-operative Societies Act, 1969.
(2)It extends to the whole of the State of Kerala.
(3)It shall come into force on such date as the Government
may, by notification in the Gazette, appoint:
Provided that different dates may be appointed for different provisions of
this Act and any reference in any such provision to the commencement of this
Act shall be construed as a reference to the coming into force of that provision.
2. Definitions.- In this Act, unless the context otherwise requires—
(a) “apex society” means a society having the whole of the State as its
area of operation and having as its members only other societies with similar
objects and declared as such by the Registrar;
4[(aa)“assisted society ” means a co-operative society which has
received the Government assistance in the form of share capital, loan, grant or
any other financial assistance or any guarantee by the Government or from
Boards constituted by the Government for repayment of loan, interest or
deposits;]
4a [(ab)“auditing of accounts of Co-operative Societies ” means a close
examination of financial transactions, overdue debts, if any, maintenance of
books of accounts, documents and other records of a business, preparation of
audit report and includes an inquiry into the affairs of the society and
subsidiary institutions in order to ascertain the correctness of accounts and the
extent to which its activities were useful in promoting the economic welfare of
the members in accordance with the co-operative principles;]
(b) “bye-laws” means the registered bye-laws of a co-operative
society for the time being in force;
(c) “ circle co-operative union ” means a circle co-operative union
constituted under section 88;
12[(d) “central society” means a society having jurisdiction over one or
more Revenue Districts but not the whole of the State as its area of operation,
and having as its members only other societies and declared as such by
the Registrar or the Government;]
4b[(da) “chief executive” means any employee of a co-operative
society by whatever designation called and includes an officer of the State
Government or an employee of any other institution or co-operative society,
who discharges the functions of a chief executive under the Act, the Rules or
the Bye-laws;]
(e)“ committee” means the governing body of a co-operative society
by whatever name called, to which the management of the affairs of the society
is entrusted;
9[(ea) “ Co-operative Arbitration Court” means a court
constituted under section 70A ;]
9[(eb) “Consortium Lending Scheme” means the Consortium
Lending Scheme framed under section 57C;]
9[(ec) “Co-operative Development and Welfare Fund” means the
Co- operative Development and Welfare Fund established under section 57A;]
6[(ecc) “Co-operative Ombudsman” means the person or persons
appointed under sub-section (2) of section 69 A;]
4c[(eccc) “co-operative principles” means the co-operative principles
listed in Schedule II appended to this Act;]
9[(ed) “Co-operative Service Examination Board” means the Co-
operative Service Examination Board constituted under section 80B;]
(f)“ co-operative society” or “society” means a co-operative society
registered or deemed to be registered under this Act;
(g)“ co-operative society with limited liability ” means a society in
which the liability of its members for the debts of the society in the event of its
being wound up is limited by its bye-laws-
(i)to the amount, if any, unpaid on the shares respectively held
by them; or
(ii)to such amount as they may, respectively, undertake to
contribute to the assets of the society;
(h)“co-operative society with unlimited liability ” means a society, the
members of which are, in the event of its being wound up, jointly and severally
liable for and in respect of all its obligations and to contribute to any deficit in
the assets of the society;
9a[(ha) “Deposit Guarantee Scheme ” means the Deposit Guarantee
Scheme framed under section 57 B;]
6a[9a[(hb) “Director of Co-operative Audit” means the Director of Co-
operative Audit appointed under sub-section (1) of section 63 and any officer
to whom all or any of the powers of the Director of Co-operative Audit may be
delegated by the Government by general or special order under sub-section (3)
of section 63 ;]]
(i)“dispute” means any matter touching the business, constitution,
establishments or management of a society capable of being the subject of
litigation and includes a claim in respect of any sum payable to or by a society,
whether such claim be admitted or not;
13b[3[3a[5[7[8[9b[10[“ (ia) District Co-operative Bank ” means a Central
Society having jurisdiction over one revenue district and having as its members
Primary Agricultural Credit Societies, Urban Co-operative Banks and the
principal object of which is to raise funds to be lent to its members, including
nominal or associate members, which existed under this Act, immediately
before the commencement of the Kerala Co-operative Societies (Amendment)
Act, 2019 and which has ceased to exist after the commencement of the said
Amendment Act.”]]]]]]]
9b[(ib) “Federal Co-operative Society” means a society having more
than one district as its area of operation and having 6b[the Government,]
individuals and other co-operative societies as its members;]
(j)“financing bank ” means a co-operative society having as its
members only other co-operative societies and the main object of which is to
raise money and lend the same to its members;
(k)“general body meeting” means a meeting of the members who are
entitled to vote in the affairs of the society;
13b[ (ka) “Kerala State Co-operative Bank “ means an apex society
having Primary Agricultural Credit Societies and Urban Co-operative Banks as
its members including nominal or associate members of the District Co-
operative Banks who shall continue as nominal or associate members of the
Kerala State Co-operative Bank.”]
(l)“member” means a person joining in the application for the
registration of a co-operative society or a person admitted to membership after
such registration in accordance with this Act, the rules and the bye-laws, and
includes a nominal or associate member;
4d [6c[(la)“miscellaneous societies ” means such societies, as may be
prescribed, and which accept deposits from their members only and no
deposits shall be accepted from nominal or associate members, and shall
undertake business activities for the welfare of its members as per the bye-
laws and shall issue loans only to members:
Provided that no agricultural loans or schematic loans shall be
issued to the members except the loans for welfare activities;]]
(m)“nominal or associate member” means a member who possesses
only such privileges and rights of a member and who is subject only to such
liabilities of a member as may be specified in the bye-laws;
(n)“officer” means the president, vice-president, chairman, vice
chairman, secretary, manager, member of committee or treasurer and includes a
liquidator, administrator and any other person empowered under the rules or the
bye-laws to give directions in regard to the business of a co- operative society;
(o)“prescribed” means prescribed by rules made under this Act;
4e[(oa) “prescribed period” means the period of limitation specified in
Schedule III appended to this Act;]
4f[6d[9c[13[(oaa) “Primary Agricultural Credit Society” means a Service Co-
operative Society, a Service Co-operative Bank, a Farmers’ Service Co-
operative Bank and a Rural Bank the principal object of which is to undertake
agricultural credit activities and to provide loans and advances for agricultural
purposes, the rate of interest on such loans and advances shall be the rate fixed
by the Registrar and having its area of operation confined to a Village,
Panchayat or a Municipality:
Provided that the restriction regarding the area of operation shall not
apply to societies or banks in existence at the commencement of the Kerala Co-
operative Societies(Amendment) Act, 1999(1 of 2000):
Provided further that if the above principal object is not fulfilled, such
societies shall lose all characteristic of a Primary Agricultural Credit Society as
specified in the Act, Rules and Bye-laws except the existing staff strength;]]]]
10a[13[(ob) “primary credit society ” means a society other than an
apex or central society which has as its principal object the raising of funds to
be lent to its members;]]
9d[(oc) “Primary Co-operative Agricultural and Rural Development
Bank” means a society having its area of operation confined to a taluk and the
principal object of which is to provide for long term credit for agricultural and
rural development activities:
5b [Provided that no Primary Co-operative Agricultural and Rural
Development Bank shall be registered without the bifurcation of assets and
liabilities of the existing societies having the area of operation in more than
one taluk and the societies shall restrict their operation in the area of the
respective society on such bifurcation;]]
7a[(od) “Primary Co-operative Society” means a society having jurisdiction
over a revenue district as a whole or over any specified area within such
revenue district and having individual or individuals and other Co-operative
Societies as its members;]
7c[(oe) “Primary Tourism Co-operative Society” means a society having its
area of operation confined to a taluk and the principal object of which is to
promote, organize and assist tourism activities:
Provided that those societies in existence on the 5 th day of July,
2018 having more than one taluk as its area of operation shall restrict such
area of operation to the taluk where the headquarters of the society is
situated, within a period of one year from that date.”
(p)“Registrar” means the Registrar of Co-operative Societies appointed
under sub-section (1) of section 3 and includes any person on whom all or any
of the powers of the Registrar under this Act are conferred;
(q)“rules” means the rules made under this Act;
13a[(qa)“Scheduled Castes” means the Scheduled Castes in relation to
the State of Kerala as specified in the Constitution (Scheduled Castes) Order,
1950;
(qb) “Scheduled Tribes” means the Scheduled Tribes in relation to the
State of Kerala as specified in the Constitution (Scheduled Tribes) Order, 1950;]
5a[(qc) “Special Officer” means an officer, not below the rank of an
Assistant Registrar, appointed by the Registrar to take into custody the assets
and liabilities of the society which secured registration without bifurcating the
area of operation of an existing society and to register new societies and to
constitute committees as provided in section 28 of the Act;]
(r) “State” means the State of Kerala;
9e[(ra) “State Co-operative Agricultural and Rural Development Bank”
means an apex society having only Primary Co- operative Agricultural and
Rural Development Banks as its members and functioning in accordance with
the provisions contained in the Kerala State Co-operative Agricultural and Rural
Development Banks Act, 1984 (20 of 1984);
13b[(rb)]
(rc) “State Co-operative Election Commission ” means the State Co-
operative Election Commission constituted under section 28B;]
(s) “State Co-operative Union ” means the State Co-operative Union
established under section 89;
13b[(sa) “Transferee Bank” the Kerala State Co-operative Bank;
(sb) ‘Transferor Bank’ means the District Co-operative Bank as defined
under clause (ia) of the Section;]
(t)“Tribunal” means the Tribunal constituted under section 81;
7b[9f[10b[(ta) “Urban Co-operative Bank” means a society registered under
this Act having its area of operation in the Urban areas and which undertakes
banking business with the license obtained from Reserve Bank of India;]]]
6e[(taa) “Urban Co-operative Societies” means a co-operative society the
principal object of which is to undertake non-agricultural credit activities and to
raise funds to be lent to its members with its area of operation confined to a
municipality or a corporation:
Provided that the restriction regarding the area of operation shall not be
applicable to the existing urban co-operative societies;]
9f[(tb)“Vigilance Officer” means the Vigilance Officer appointed under
section 68A;]
(u)“ year” means the period commencing on the 11[first day of April of
any year and ending with 31 st of March] of the succeeding year or in the case of
any registered society or class of registered societies, the accounts of which are
made up to any other date with the previous sanction of the Registrar, the year
ending with such date.
3 substituted by Act 14 of 2017
3a substituted by Act 24 of 2014
4, 4a, 4b , 4c , 4e inserted, 4d substituted & 4f Clause ‘oa’ renumbered as ‘oaa’ by Act 8 of 2013
5, 5b substituted & 5a inserted by Act 13 of 2012
6, 6b, 6c, 6e inserted, 6a substituted & 6d substituted as ‘oa’ by Act 7 of 2010
7, 7b substituted & 7a inserted by Act 9 of 2009
7c inserted by Act 39 of 2018
8 substituted by Act 3 of 2002
9 clause ‘ee’ inserted by Act 15 of 1997 was relettered as clause ‘ea’ and clause ‘eb’, ‘ec’ and ‘ed’ inserted by Act 1 of
2000
9a clause ‘ha’ and ‘hb’ inserted by Act 1 of 2000
9b clause (ii) re lettered as (ia) and after clause (ia) so re lettered ‘ib’ is inserted by Act 1 of 2000
9c substituted as ‘oa’ by Act 1 of 2000
9d, 9e inserted by Act 1 of 2000
9f for clause ‘tt’, clause ‘ta’ and ‘tb’ are substituted by Act 1 of 2000
10 inserted as ‘ii’ by Act 15 of 1997
10a clause ‘oa’ re lettered as ‘ob’ and a clause ‘oa’ inserted by Act 15 of 1997
10b clause ‘tt’ inserted by Act 15 of 1997
11 substituted by Act 9 of 1997
12 substituted by Act 19 of 1987
13 inserted as ‘oa’ & 13a inserted by Act 29 of 1986
13b ‘ia’ substituted, clause ‘ka’, ‘sa’, ‘sb’ inserted by Act 1 of 2019
13b. clause ‘rb’ omitted inserted by Act 1 of 2000 and omitted by Act 1 of 2019. (rb) “State Co-
operative Banks” means an apex society having only District Co-operative Banks as its members;
3. Registrar.- (1)The Government may appoint a
person to be the Registrar of Co-operative Societies for the
State.
(2)The Government may by general or special order confer on
any person all or any of the powers of the Registrar under this Act.
4.Societies which may be registered.- Subject
to the provisions of this Act, a co-operative society which has
as its object the promotion of the economic interests of its
members or of the interests of the public in accordance with
co-operative principles, or a society established with the object
of facilitating the operations of such a society, may be
registered under this Act:
14[Provided that no co-operative society shall be registered if it is
likely to be economically unsound, or the registration of which have an adverse
effect on development of co-operative movement.]
5.Registration with limited liability only.-(1)A
co-operative society shall be registered only with limited
liability:
Provided that this sub-section will not affect the rights
and liabilities of societies with unlimited liability which are in
existence at the time of commencement of this Act.
(2)The word ‘limited’ or its equivalent in any Indian language shall
be the last word in the name of a society registered under this Act with limited
liability.
14. inserted by Act 8 of 2013
6. Application for registration of co-
operative societies.- (1)An application for the
registration of a co-operative society shall be made to the
Registrar in such form as may be prescribed and the applicant
shall furnish to him such information about the society as he
may require.
(2)Every such application shall conform to the
following requirements, namely:-
(a) the application shall be accompanied by three
copies of the proposed bye-laws of the society;
(b) where all the applicants are individuals, the
number of applicants shall not be less than
twenty-five, each of such persons being a
member of a different family.
Explanation.-For the purposes of this clause, the expression “member of
a family” means wife, husband, father, mother, grand- father, grand-
mother, 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;
(c) the application shall be signed by every one of the
applicants who is an individual 15 [as specified under clause
(a) of sub-section (1) of section 16] and by a person duly
authorized on behalf of the Government or any society or
other body of persons which is an applicant.
15. inserted by Act 7 of 2010
7.Registration.- (1)If the Registrar is satisfied—
(a)that the application complies with the provisions
of this Act and the rules;
(b)that the objects of the proposed society are in accordance with
section 4;
(c)that the area of operation of the proposed society and the area of
operation of another society of similar type do not overlap;
(d)that the proposed bye-laws are not contrary to the provisions of this
Act and the rules; and
(e)that the proposed society complies with the requirements of sound
business,
he may register the society and its bye-laws 16[within a period of ninety days
from the date of receipt of the application.]
(2)Where the Registrar refuses to register a society, he shall
communicate the order of refusal together with the reasons therefore within
seven days of such order to such of the applicants as may be prescribed.
(3)An application for registration of a society shall be disposed of by
the Registrar 16a[within ninety days] from the date of receipt of the application.
16b [(4)Where an application for registration of a society is not
disposed of within the time specified in sub-section (3), the applicant may make
a representation,--
(a)before the Registrar, if the application for registration is
made to a person on whom the powers of the Registrar is conferred under sub-
section (2) of section 3; or
(b)before the Government, if the application for
registration is made before Registrar, and the Registrar or the Government, as
the case may be, shall, within sixty days from the date of receipt of such
representation, issue directions to the authority concerned to take appropriate
decision on the application for registration and the authority concerned shall
comply with such directions.]
16, 16b inserted & 16a Substituted by Act 1 of 2000
8.Registration certificate.- 17[(1)Where a co-
operative society is registered under this Act, the Registrar
shall issue a certificate of registration signed and sealed by
him, which shall be conclusive evidence that the said society is
duly registered under this Act.]
17[(2)Notwithstanding anything contained in sub-section (1), where
the Registrar is satisfied that the original registration certificate is
irrecoverably lost and a duplicate certificate could not be issued as the files or
records regarding the registration of the co-operative society was lost, after
registration, the Registrar shall issue a certificate stating the registration number
and date of registration of a co-operative society, on the basis of the details
available in the audit certificate and the records available with the Registrar,
signed and sealed by him, which shall be conclusive proof that the said
society is duly registered and it shall be treated as a certificate of registration.]
17 Section 8 is numbered as sub section (1) of that section and new sub section (2) is inserted after sub section (1) by Act
8 of 2013
18[8A. Affiliation to apex Society.-(1) Every
Primary Co-operative Society or Central Co-operative Society
may, within such time and in such manner, as may be
prescribed, apply for affiliation to the concerned apex society
or Central Society, as the case may be.
(2)Where the apex society or central society does not, within sixty
days from the date of receipt of the application for affiliation, determine whether
such affiliation should be given or not, such affiliation shall be deemed to have
been given to the applicant society from the date on which the said period of
sixty days expires.
(3)When the apex or central society, as the case may be, rejects an
application for affiliation under sub-section (1), the aggrieved society may file
an appeal before the Registrar against such rejection within thirty days from
the date of receipt of the order of rejection and the Registrar shall dispose of the
appeal within sixty days from the date of appeal.]
18 inserted by Act 1 of 2000
9.Co-operative societies to be bodies
corporate.- The registration of a society shall render it a
body corporate by the name under which it is registered,
having perpetual succession and a common seal, and with
power to hold property, enter into contracts, institute and
defend suits and other legal proceedings and to do all things
necessary for the purposes for which it was constituted:
19a[Provided that the Government and the Registrar shall have
power to regulate 19[xxx] the working of a society for the economic and social
betterment of its members and the general public.]
20[9A. Publication of name by a co-operative society.-
Every co-operative society,-
(a) shall paint or affix its name, register number and the address of
its registered office and keep the same painted or affixed in
conspicuous position, in letters easily legible to members in
vernacular language and in English language, on the outside of
every office or place in which its business is carried on;
(b) shall have its name engraved in legible characters on its seal
with common emblem; and
(c) shall have its name and address of its registered office,
mentioned in legible characters in all its business letters in all its
bill heads and letter paper, and in all its notices and other
official publications, and also have its name so mentioned in all
bills of exchange, hundis, promissory notes, endorsements,
cheques and orders for money or goods purporting to be signed
by or on behalf of the co-operative society, and in all bills of
parcels, invoices, receipts and letters of credit of the co-
operative society.]
19 Omitted & 20 inserted by Act 8 of 2013
19a inserted by Act 7 of 2010
10.Change of name of society.- (1)A
society may, by an amendment of its bye-laws, change its
name.
(2)Where a society changes its name, the Registrar shall enter the
new name in the register of co-operative societies in the place of the former
name and shall amend the certificate of registration accordingly.
(3)The change of name of a society shall not affect any rights or
obligations of the society 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 society by its former name may be continued or
commenced by its new name.
11.Change of liability.-(1)Subject to the provisions of
this Act and the rules, a society may, by an amendment of its
bye-laws, change the form or extent of its liability.
(2)When a society has passed a resolution to change the form or
extent of its liability, it shall give notice thereof in writing to all its members and
creditors and notwithstanding the provisions of section 24 or any bye-law or
contract to the contrary, any member or creditor shall, during a period of two
months from the date of service of the notice upon him, have the option of
withdrawing his shares, deposits or loans, as the case may be.
(3)Any member or creditor who does not exercise his option
within the period specified in sub-section (2) shall be deemed to have given his
assent 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)the assent thereto of all members and creditors has
been given or deemed to have been given; or
(b)all claims of members and creditors who exercise the
option referred to in sub-section (2) within the period specified therein have
been met in full.
12.Amendment of bye-law of society.-(1)No
amendment of any bye-law of a society shall be valid unless
such amendment has been registered under this Act.
(2)The provisions of section 7 specifying the conditions to be
satisfied before registration of the bye-laws of a society by the Registrar shall
mutatis mutandis, apply also to the registration of amendments to bye-laws:
Provided that the Registrar shall before registering an
amendment of any bye-law consult-
(a)the State Co-operative Union if the bye-laws to be
amended are that of an apex society or a central society; or
(b)the circle co-operative union if the bye-laws that are
to be amended are that of any other society; and
(c)the financing bank if the society is indebted to the
financing bank.
(3)The Registrar shall forward to the society a copy of the
registered amendment together with a certificate of registration signed and
sealed by him, and such certificate shall be conclusive evidence that the
amendment has been duly registered.
(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
the reasons thereof, within seven days of the order to the society.
21a[ (4A) An application to register an amendment of the
bye-laws of a society shall be disposed of by the Registrar within ninety days
from the date of receipt of the same.
(4B) Where an application to register an amendment of the
bye-laws of a society is not disposed of within the time specified in sub-section
(4A), the society may make a representation,-
(a)before the Registrar of Co-operative Societies,
if the application to register the amendment of the bye-laws is made to a person
on whom the powers of the Registrar is conferred under sub-section (2) of
section 3; or
(b)before the Government if the application for
registration of the amendment of the bye-laws is made before the Registrar, and
the Registrar or the Government, as the case may be, shall within sixty days
from the date of receipt of such representation, issue directions to the authority
concerned, to dispose of the same.]
21[(5)xxxx
(6)xxxx
(7)xxxx]
21 Omitted by Act 8 of 2013
21a inserted by Act 1 of 2000
13.When amendments of bye-laws come
into force.-An amendment of the bye-laws of a society
shall, unless it is expressed to come into operation on a
particular day, come into force on the day on which it is
registered.
22[13A. Subject matter of Bye-laws.- Every co-operative society
shall make its bye-laws consistent with the provisions of this Act and rules and
no provision in the bye-laws of a co-operative society shall be contrary to the
provisions of the Act and the Rules.]
22 inserted by Act 8 of 2013
14.Amalgamation, transfer of assets and
liabilities and division of societies.-(1)A society
may, 23[xxx] by a resolution passed by a two-third majority of
the members present and voting at a general body meeting of
the society,-
(a)transfer its assets and liabilities in whole or in part to
any other society;
(b)divide itself into two or more societies
(2)Any two or more societies may, 23a[xxx] by a resolution passed by
a two third majority of the members present and voting at a general body
meeting of each such society, amalgamate themselves and form a new society.
(3)The resolution of a society under sub-section (1) or sub-section
(2) shall contain all particulars of the transfer, division or amalgamation, as the
case may be.
(4)When a society has passed any such resolution, it shall give notice
thereof in writing to all its members and creditors and, notwithstanding the
provisions of section 24 or any bye-law or contract to the contrary, any member
or creditor shall, within a period of two months from the date of service of the
notice upon him, have the option of withdrawing his shares, deposits or loans,
as the case may be.
(5)Any member or creditor who does not exercise his option within
the period specified in sub-section (4) shall be deemed to have given his assent
to the proposals contained in the resolution.
(6)A resolution passed by a society under this section shall not take
effect until either—
(a)the assent thereto of all the members and creditors has
been given or deemed to have been given; or
(b)all claims of members and creditors who exercise the
option referred to in sub-section (4) within the period specified therein, have
been met in full.
(7)Where a resolution passed by a society under this section
involves the transfer of any assets and liabilities, the resolution shall,
notwithstanding anything contained in any law for the time being in force, be a
sufficient conveyance to vest the assets and liabilities in the transferee without
any further assurance.
23b[(8)xxx
(9)xxx]
23, 23a, 23b omitted by Act 8 of 2013
24a[14A.Provisions regarding transfer of assets and
liabilities of District Co-operative Banks to the Kerala
State Co-operative Bank. – (1) Notwithstanding anything contained in
this Act or in any other law for time being in force, the District Co-operative
Banks may by a resolution passed by a simple majority of the members present
and voting at the special general body meeting of the members, transfer its
assets and liabilities in whole to the Kerala State Co-operative Bank and such
transfer shall take effect from the date on which the Registrar approves the
resolution.
(2) The resolution shall contain particulars of the assets and liabilities to be
transferred.
(3) When a District Co-operative Bank has passed any such resolution, under
sub-section (1), it shall give notice thereof in a writing in all its members within
7 days from the date of resolution, notwithstanding anything contained in the
provisions of section 24 or any Rules or any byelaws and sub-rules or any
contract to the contrary, any member shall, within a period of 30 days from the
date of issuance of the said notice, have the option of withdrawing his shares,
deposits or closing loans, as the case may be:
Provided that any other debtor or creditor shall be informed of such a
resolution through publication of notice in two leading daily newspapers in
vernacular language within 7 days from the date of resolution that they have the
option to withdraw deposit, loans, as the case may be, within a period of thirty
days from the date of publication of notice.
(4) Any member or creditor or debtor who does not exercise his option within
the period specified in sub-section (3) shall be deemed to have given his assent
to the proposals contained in the resolution.
(5) On and from the date of approval of transfer of assets and liabilities of each
District Co-operative Bank by the Registrar, all the assets and liabilities as it
stood immediately before the transfer shall without any further Act, instrument
or deed, stand transferred to and vested in the Kerala State Co-operative Bank.
(6) On and from the date of approval of transfer of assets and liabilities of each
of the District Co-operative Bank by the Registrar, all pending suits or legal
proceedings by or against such Banks shall be continued by the Kerala State
Co-operative Bank.
24a[24[14AA.Promotion of subsidiary institutions for the
economic welfare of members.- (1)A co-operative society may by a
resolution passed at general body meeting by a majority of members present and
voting, promote one or more subsidiary institutions, which may be registered
under any law for the time being in force, for the furtherance of its stated
objects with the prior approval of Registrar.
(2)Any subsidiary institution promoted under sub-section (1) shall
exist only as long as the general body of the co-operative society deems its
existence necessary:
Provided that a co-operative society, while promoting such a
subsidiary institution shall not transfer or assign its substantive part of business
or activities undertaken in furtherance of its stated objects to such subsidiary
institutions.
Explanation: For the purpose of this section,-
(a)An institution shall be deemed to be a subsidiary institution
where the co-operative society,-
(i)controls the management or board of directors or members of
governing body of such institutions; or
(ii)holds more than half in nominal value of equity shares of such
institutions.
(b)a subsidiary institution shall not include a partnership firm.
(3)The annual reports and audited accounts of any such subsidiary
institution shall be placed each year before general body meeting of the
promoting co-operative society.
14B. Partnership of Co-operative Societies.-
(1)Any two or more Co-operative Societies with prior permission of the
Registrar, may by resolution passed by the majority of the members present and
voting at a general body meeting of each of such co-operative societies, may
enter into partnership to carry out any one or more specific business. Written
notice of the general body meeting shall be given to each member before fifteen
clear days of such meeting.
(2)The partnership shall be in the interest of the members of the co-
operative society or the co-operative societies or shall be in the public interest
or shall be in the interest of the co-operative movement in general and it does
not mean to be a partnership firm registered under Indian Partnership Act, 1932
(Central Act 9 of 1932)]
24 inserted by Act 8 of 2013
24a existing Section ‘14A’ renumbered as ‘14AA’ and new section ‘14A’ inserted by Act 1 of 2019
15.Cancellation of registration certificates
of societies in certain cases.- (1)Where the whole
of the assets and liabilities of a society are transferred to
another society in accordance with the provisions of section 14,
the registration of the first mentioned society shall stand
cancelled and that society shall be deemed to have been
dissolved and shall cease to exist as a corporate body.
(2)Where two or more societies are amalgamated into a new society
in accordance with the provisions of section 14 the registration of each of the
amalgamating societies shall stand cancelled on the registration of the new
society and each amalgamating society shall be deemed to have been dissolved
and shall cease to exist as a corporate body.
(3)Where a society is divided into two or more societies in
accordance with the provisions of section 14, the registration of that society
shall stand cancelled on the registration of the new societies and that society
shall be deemed to have been dissolved and shall cease to exist as a corporate
body.
16.Persons who may become members .-(1)No
person shall be admitted as a member of a society except the
following, namely:-
(a)an individual—
(i)who has attained the age of eighteen years:
Provided that this sub-clause shall not apply in the case
of a society formed exclusively for the benefit of the students of any school or
college;
(ii)who is not of unsound mind;
(iii)who is a resident within, or is in occupation of land in,
the area of operation of the society;
(b)any other society;
25[(ba) a local self government;]
(c)the Government; and
(d)any body of persons, whether incorporated or not and whether
or not established by or under any law, if such body is approved by the
Government in this behalf by general or special order:
Provided that in a society formed for the promotion of the
economic interests of members through a specified activity no person other than
one who is likely to be benefited directly by such activity may be admitted as a
member of such society unless such admission is permitted specifically by
rules:
Provided further that where a society is formed exclusively for the
benefit of persons engaged in any particular industry, no person who is not an
actual worker in the industry shall be admitted in excess of such percentage of
the total membership of the society as may be prescribed:
Provided also that the Coffee Board, the Rubber Board and any other
statutory or non-statutory Board, Committee or Corporation constituted for the
purpose of the development of an industry, may be admitted as a member of a
society engaged in marketing and processing of the products of the industry
concerned and formed for the workers and growers of such industry, so however
that no such Board, Committee or Corporation shall be admitted as a member of
a co-operative credit society.
25a [ Provided also that in the case of hospital co-operative societies,
industrial and commercial establishments and other organizations registered
under any other law may be admitted as members.
Explanation :-For the purpose of this sub-section ‘hospital co-
operative society’ means a society, the main object of which is to run a hospital
or to conduct medical or paramedical courses or to run medical shops;]
(2)Membership in any society other than a society formed for the
benefit of the Scheduled Castes or the Scheduled Tribes shall not be refused
merely on the ground that a person belongs or does not belong to a
particular religion, race, community, caste, sect or denomination. A decision on
an application for membership shall be taken within two months from the date
of receipt of the application.
25b[(2A)Where an application for membership in a society is not
disposed of within the time specified in sub-section (2), the Registrar shall be
bound, on the written request of the applicant, to determine whether such
membership shall be given or not;
(2B) Where the Registrar does not, within one month of the date of
receipt of such written request, determine whether such membership should be
given or not, the applicant may make a representation,-
(a)before the Registrar if the request referred to in sub-section
(2A) is made to a person on whom, the powers of the Registrar is conferred
under sub-section (2) of section 3; or
(b)before the Government, if the request referred to in sub-
section (2A) is made to the Registrar,
and the Registrar or the Government, as the case may be, shall, within thirty
days from the date of receipt of such representation determine whether such
membership should be given or not.]
(3) Where a person is refused admission as a member in a society,
the decision refusing admission together with the reasons therefor shall be
communicated by the society to that person within a period of fifteen days from
the date of the decision.
27[26[16A. xxx]
25, 25a, 25b inserted by Act 1 of 2000
26 inserted by Act 8 of 2013
27 omitted by Act 14 of 2017
17.Expulsion of members.- (1)Any member of a
society, who has acted adversely to the interests of the
society,28[or has failed to comply with the provisions of the bye-
laws] may be expelled upon a resolution of the general body
passed at a special meeting convened for the purpose by the
votes of not less than two-thirds of the total number of
members present and voting at the meeting.
(2)No member shall be expelled under sub-section (1) without being
given an opportunity of making his representation.
(3)A copy of the resolution expelling a member shall be
communicated to the member within a period of fifteen days from the date of
passing of the resolution.
28 [(4)The expulsion from membership may involve forfeiture of shares
held by the member.
(5)No member of the society who has been expelled under sub-section
(1) shall be eligible for re-admission as a member of that society, for a period of
one year from the date of such expulsion.]
28 inserted by Act 8 of 2013
18.Nominal or associate members.-(1)A society
may admit any individual as a nominal or associate member:
29d[29c[29b[29[xxx]]]]
29d[29c[29b[29[xxx]]]]
29a[Provided 29c[29b[also]] that a Hospital Co-operative Society may admit
any other society as nominal or associate member.
Explanation.-The term ‘hospital co-operative society’ shall have
the same meaning as in the Explanation to the fourth proviso to sub-section (1)
of section 16.]
29g[xxx]
29g[xxx]
(2)A nomiExcerpt shown. Open the full act in Lexace.