LexThe MADHYA PRADESH CO-OPERATIVE SOCIETIES ACT, 1960
Madhya Pradesh · state statute
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MADHYA PRADESH/CHHATTISGARH CO-OPERATIVE
SOCIETIES ACT, 1960
(No. 17 of 1961)
C O N T E N T S
P g . N o .
List of amending Acts 20
Sections -
C H A P T E R I - Preliminary
P r e a m b l e 2 4
1. Short title, extent and commencement. 24
2. Definitions. 24
CHAPTER II - Registration
3. Registrar and other officers. 36
4. Societies which may be registered. 38
5. Registration of societies with limited or 38
unlimited liability.
6. Conditions of registration. 38
7. Application for registration. 40
8. Power of Registrar to decide certain questions. 40
9. Registration. 40
10. Classification of societies. 42
11. Amendment of byelaws of a society. 44
12. Power to direct amendment of byelaws. 44
13. Change of name. 46
14. Certain certificates to be conclusive evidence. 46
15. Change of liability of society from limited to 46
unlimited or vice-versa.
16. Reorganization of societies. 48
16-A. Collaboration by Societies. 54
16-B. Partnership of societies. 54
16-C. Government's power to make scheme of 56
reorganization in the public interest
(for Chhattisgarh only)
17. Compromise or arrangement for repayment 56
of liabilities and reconstruction of societies.
17-A. Action and liability of Banks under 58
moratorium.
17-B. Liability of new Bank to repay to the Deposit 60
Insurance Corporation.
18. Cancellation of registration. 60
18-A. De-registration of Societies. 60
CHAPTER III
Members, their rights, liabilities and privileges
19. Persons who may become members. 62
19-A. Disqualification of member. 66
19-AA.Disqualification for membership of committee 68
19-B. Effect of subsequent disabilities. 68
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19-C. Expulsion of members. 68
20. Nominal members. 70
21. No rights of membership to be exercised till 72
due payments are made.
22. Votes of members. 72
23. Manner of exercising vote. 74
24. Restrictions on holding of share capital by a 74
member.
25. Restrictions on transfer of shares or interest. 76
26. Transfer of interest on death of member. 76
27. Share or deposit or interest not liable to 76
attachment.
28. Rights of members to see books, etc. 78
29. Liability of a past member or the estate of a 78
deceased member.
30. Insolvency of members. 78
CHAPTER IV
Duties, Privileges, Property and Funds of Societies
31. Societies to be bodies corporate. 80
32. Address of society and display of name. 80
33. Register of members. 80
34. Proof of entries in society's books. 82
34-A. Societies to give pass books to member. 82
35. Exemption from compulsory registration 84
of instruments.
36. Borrowings. 84
37. Restrictions on loans. 86
37-A. Society not to recover or receive interest 86
greater than the principal from members
belonging to Scheduled Caste and Scheduled
Tribes. (for M.P. only)
37-A. Society not to recover or receive interest 88
greater than the principal. (for Chhattisgarh only)
38. Restrictions on other transactions with 88
non-members.
39. Charge and set-off in respect of share or 88
interest of members.
40. Prior claim of society on certain assets. 90
41. First charge of co-operative societies on 92
certain assets.
41-A. Right of society to acquire and dispose of 94
immovable property.
42. Deduction from salary to meet society's 96
claim in certain cases.
43. Funds and profits. 96
43-A. Appropriation of profits. 98
43-B. Liability for deficit. 100
44. Investment of funds. 100
45. Grant of State aid to societies. 102
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46. Employees' Provident Fund. 102
47. Power to direct affiliation to Federal Society. 104
47-A. Apex Society. 104
CHAPTER V - Management of Societies
48. Final authority in society. 106
48-A. Disqualifications for holding specified office. 112
48-B. Representatives and Delegates. 114
48-C. Powers of committee. 114
49. Annual General Meeting. 116
49-A. Omitted.
49-B. Annulment of proceedings of society by 122
successor committee.
49-C. Government's powers to give directions in 122
public interest, etc.
49-D. Registrar's power to give directions to make 124
regulations.
49-E. Appointment of Managing Director and Chief 126
Executive Officer in certain circumstances.
50. Special General Meeting. 128
50-A. Disqualification for being candidate on voter 128
for election to committee or representative
or delegate of society.
50-AA.Omitted.
51. Validation of acts. 130
52. Power to appoint Government nominees. 130
52-A. Omitted.
52-B. Representation of women members on committee. 132
53. Supersession of committee. 132
53-A. Taking over of charge. 140
53-B. Power of Registrar to remove an Officer of a 142
society in certain circumstances.
54. Appointment of Managers, Secretaries and 142
other officers.
55. Registrar's power to determine conditions of 144
employment in societies.
56. Registrar's power to enforce performance of 144
obligation.
57. Registrar's power to seize records, etc. 146
57-A. Taking possession of record and property. 146
CHAPTER VI
Audit, Inquiry, Inspection and Supervision
58. Audit and Audit fee. 148
58-A. Audit Board. 150
58-B. Procedure for making good losses caused to 150
a society.
59. Inquiry. 152
59-A. Duty of certain persons to assist enquiry. 154
60. Inspection of books of society. 154
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61. Rectification of defects. 156
62. Costs of inquiry. 156
63. Omitted.
63-A. Expenditure on proceedings, etc. 158
CHAPTER VII - Disputes and Arbitration
64. Disputes. 158
65. Limitation. 160
66. Settlement of dispute. 162
67. Procedure for settlement of disputes and power 162
of Registrar, his nominee or board of nominee.
68. Attachment before award. 164
CHAPTER VIII - Liquidation
69. Winding up of Societies. 164
69-A. Winding up of Co-operative Bank. 166
69-B. Reimbursement of Deposit Insurance 166
Corporation in case of Insured Bank.
70. Appointment of Liquidator. 168
70-A. Control of liquidator. 168
71. Powers of Liquidator. 168
72. Disposal of surplus assets of liquidated 172
societies.
CHAPTER VIII - A (Applicable to M.P. only)
Special Provisions for Co-operative Housing Societies
72-A. Application of Chapter. 172
72-B. Member's entitlement for plot, house and 172
amenities and the liability of the cost.
72-C. Restriction on membership of housing society. 176
72-D. Offences. 176
72-E. Penalties for offences. 176
CHAPTER IX
Offences and Penalties
73. Prohibition of use of work 'Co-operative'. 178
74. Offences. 178
75. Penalties for offences. 180
76. Cognizance of offences. 182
CHAPTER X (Applicable to M.P. only)
Constitution of Tribunal
77. Madhya Pradesh State Co-operative Tribunal. 182
77-A. Review. 186
77-B. Tribunal to exercise powers of a civil Court. 188
78. Appeals before the Registrar and Tribunal. 188
78-A. Extension of period of limitation by appellate 190
authority in certain cases.
79. No appeal or revision in certain cases. 190
80. Transfer or withdrawal of cases. 190
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80-A. Power of Registrar to call for proceedings of 192
subordinate Officers and committee of a
society and to pass orders thereon.
80-B. Transfer of pending cases. 192
CHAPTER X (Applicable to Chhattisgarh only)
77. Appeal. 192
78. Revision. 194
79. No appeal or revision in certain cases. 196
80. Review. 196
80-A. Extension of period of limitation by appellate 196
authority in certain cases.
80-B. Transfer or withdrawal of cases. 196
80-C. Power to make interlocutory orders. 198
80-D. Stay of execution of orders. 198
80-E. Transfer of pending cases. 198
80-F. 198
CHAPTER XI
Miscellaneous
81. Recovery of sums due to Government. 198
81-A. Power of financing Bank to proceed against 200
defaulting members of co-operative society.
82. Bar of jurisdiction of Courts. 200
83. Recovery of costs. 202
84. Enforcement of charge. 202
84-A. Recovery of sums due to housing society. 204
85. Execution of orders, etc. 204
85-A. Manner of executing order to deliver 204
possession of immovable property.
86. Service of notice. 206
87. Registrar and other officers etc. to be public 208
servants.
88. Indemnity for acts done in good faith. 208
89. Powers of civil Courts. 208
90. Registrar or person empowered by him to be 208
a civil Court for certain purposes.
91. Omitted.
92. Companies Act not to apply. 208
93. Certain other Acts not to apply to Co-op. 210
Societies.
94. Notice necessary in suits. 210
95. Power to make rules. 210
96. Repeal and savings. 218
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MADHYA PRADESH/CHHATTISGARH
CO-OPERATIVE SOCIETIES ACT, 1960
(M.P. Act No.17 of 1961)
LIST OF AMENDING ACTS
As amended subsequently by -
1. M.P. Act No. 1 of 1968, w.e.f. 5.2.1968;
2. M.P. Act No. 8 of 1970, w.e.f. 12.2.1970 but some provisions came into
effect on 15.12.1969 vide M.P.Ord.25 of 1969;
3. M.P. Act No.4 of 1971, w.e.f.21.11.1970 and 22.11.1970 vide M.P.
Ordinances 11 and 12 of 1970;
4. M.P. Act No.14 of 1976, w.e.f. 12.3.1976 but certain provisions came
into effect on 5.12.1975 as per notifi cation issued under M.P. Ordinance
22 of 1975. Amendments relating to Chapter X came into force on 1-5-
1999.
5. M.P. Act 53 of 1976, w.e.f. 7.10.1976;
6. M.P. Act 5 of 1978 - Amendments came into effect on 24.11.1977 vide
M.P. Ordinance 11 of 1977 except amendment relating to S.53 which
came into force on 4.4.1978;
7. M.P. Act 7 of 1979, w.e.f. 12.4.1979;
8. M.P. Act 29 of 1979, w.e.f. 11.9.1979;
9. M.P. Act 5 of 1980, w.e.f. 12.4.1979;
10. M.P. Act 9 of 1981, w.e.f. 12.4.1979;
11. M.P. Act 3 of 1982, w.e.f. 13.1.1982;
12. M.P. Act 28 of 1982, w.e.f.29.10.1982, except amendment relating to
S.49 (7-B) which became operative on 18.6.1982, vide M.P. Ordinance
No.6 of 1982;
13. M.P. Act 10 of 1984, Amendments came into effect on 2.12.1983, vide
M.P. Ordinance 10 of 1983;
14. M.P. Act3 of 1985, w.e.f. 15.2.1985, but amendments made in S.49(7-
B) with effect from 31.12.1984, vide M.P. Ord. 27 of 1984;
15. M.P. Act 23 of 1986, w.e.f. 21.7.1986;
16. M.P. Act 4 of 1987, w.e.f. 14.7.1986 vide M.P. Ord. 2 of 1986;
17. M.P. Act 3 of 1988, w.e.f. 6.10.1987 vide M.P. Ord. 4 of 1987;
18. M.P. Act 25 of 1988, w.e.f. 28.6.1988 vide M.P. Ord. 3 of 1988;
19. M.P. Act 14 of 1990, w.e.f. 31.7.1990 but some provisions came into
effect on 26.4.1990 by virtue of M.P. Ord.2 pf 1990;
20. M.P. Act 13 of 1991, w.e.f. 26.4.1991 vide M.P. Ord. 3 of 1991;
21. M.P. Act 12 of 1994, w.e.f. 8.5.1994;
22. M.P. Act 30 of 1994, w.e.f. 2.12.1994;
23. M.P. Act 22 of 1995, w.e.f. 22.6.1995;
24. M.P. Act 7 of 1997, w.e.f. 6.2.1997;
25. M.P. Act 33 of 1998, w.e.f. 3.11.1998;
26. M.P. Act 20 of 1999, w.e.f. 7.8.1999;
27. M.P. Act 17 of 2000, w.e.f. 13.6.2000;
28. M.P. Act 2 of 2001, w.e.f. 17.1.2001 (Applicable in Madhya Pradesh
only);
29. C.G. Act 11 of 2001, w.e.f. 14.9.2001 (Applicable in Chhattisgarh
only);
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30. M.P. Act 1 of 2002, w.e.f. 5.1.2002 (Applicable in Madhya Pradesh
only);
31. C.G. Act 33 of 2002, w.e.f. 1.3.2002 (Applicable in Chhattisgarh only);
32. C.G. Ordinance 4 of 2003, w.e.f. 1.3.2003 (Applicable in Chhattisgarh
only);
33. C.G. Act 20 of 2003, w.e.f. 9.9.2003 (Applicable in Chhattisgarh only);
and
34. M.P. Act 34 of 2003, shall come into force on such date as the State
Govt. may, by notification, appoint.(Applicable in Madhya Pradesh
only).
35. MP. Bill No.10 of 2005 published in the Madhya Pradesh gazette dated
5th May 2005.
36. M.P. Act 23 of 2005 published in the Madhya Pradesh gazette dated 2nd
Sept.2005.
37 Madhya Pradesh Ordinance No.6 of 2007 published in MP Gazette on 5th
October having been assented by the Governor on 4th October.
THE MADHYA PRADESH/CHHATTISGARH
CO-OPERATIVE SOCIETIES ACT, 1960
(No.17 of 1961)
(Received the assent of the President on 28-4-1961, the assent first
published in M.P. Gaz. on 12-5-1961)
(An Act to organize and develop co-operatives as democratic
instruments and people's institutions based on self help, and mutual aid, and for
curbing exploitation and ensuring socio- economic development of people with
particular emphasis on weaker sections of society.)
Be it enacted by the Madhya Pradesh Legislature in the Eleventh Year
of the Republic of India as follows:-
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.-(1) This Act may be called the
Madhya Pradesh Co-operative Societies Act, 1960.
(2) It extends to the whole of Madhya Pradesh.
(3) It shall come into force on such date as the State Government may, by
notification, appoint.
2. Definitions .-In this Act, unless the context otherwise requires,-
(a) "Additional Registrar" means an Additional Registrar of Co-
operative Societies appointed under section 3;
(a-i) 'Apex Society' means a soci ety whose principal object is to
provide facilities for the operation of othe r societies affiliated to it and whose
are of operation extends to the whole State of Madhya Pradesh;
(b) "Assistant Registrar" means an Assistant Registrar of Co-
operative Societies appointed under section 3;
(b-i) "Area of operation" means the area from which the membership
is drawn or as specified in the byelaws of the society;
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(c) "bye-laws" means the bye-laws registered or deemed to have
been registered under this Act and for the time being in force, and includes a
registered amendment of the bye-laws;
Clause (c-i) - as applicable to M.P. only
(c-i) "Central Society" means a Co-operative Land Development
Bank or any other society whose area of ope ration is confined to a part of the
State and which has as its principal object the promotion of the principal
objects and the provision of facilities for the operation of same type of societies
and for other societies affiliated to it a nd not less than five members of which
are societies;
Clause (c-i) - as applicable to Chhattisgarh only
(c-i) "Central Society" means a District Co-operative Agriculture and
Rural Development Bank or any other society, whose area of operation is
confined to a part of the State and whic h has as its object the promotion of the
objects of the member societies, and which has at least five societies as its
members;
(c-ii) "Central Co-operative Bank" means a resource society
registered or deemed to be registered under this Act, which is either licensed
under the Banking Regulation Act, 1949 (10 of 1949) or permitted by the
Reserve Bank of India to do banking business till so licensed, and
(i) has area of operation confined to part of the State; and
(ii) has as its principal object , the creation of funds and the
obtaining credit, goods or services for and providing credit, goods or services
as loan to Co-operative Societies affilia ted to it for agriculture, industrial and
other allied purposes;
(c-iii) 'Company' means a Company as defined in section 3 of the Com
panies Act, 1956 (1 of 1956);
(c-iv) "Co-operative Union" means a registered society which has as
its principal object the undertaking of co-operative education, propaganda,
training and extension of co-operative services;
(d) "Committee" means the Boar d of a management by whatever
name called constituted under section 48;
(d-i) "Co-operative Bank" means a State Co-operative Bank, a
Central Co-operative Bank, and a Primar y Co-operative Bank, registered or
deemed to be registered under this Act;
(d-ii) "Co-operative credit structure" means the Madhya Pradesh State
Co-operative Bank or Central Co-operative Bank or Primary Agriculture Credit
Co-operative Society;
(e) "Co-operative Society with limited liability" means a society
having the liability of its members limited by its bye-laws to the amount, if any,
unpaid on the shares respectively held by them or to such amount as they may,
respectively, undertake to contribute to the assets of the society in the event of
its being wound up;
(e-i) "Chief executive Officer" m eans an individual appointed under
section 49-E and who subject to superint endence, control and direction of the
Board of Directors, has been entrusted by the Board of Directors with the
management of the affairs of the society”;
(g) "Consumers' Society" means a society formed with the object of
obtaining or producing and processing and distributing goods to or performing
other services for its members, as we ll as for other customers and dividing
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among its members and customers in a proportion as may be laid down in the
bye-laws of such society, the profits accruing from such supply, production,
processing and distribution;
(g-i) "delegate" means a person elected by a group of individual
members to represent them in the general body of the society in accordance
with the bye-laws of the society;
(g-ii) "Deposit Insurance and Credit Guarantee Corporation" means
the Deposit Insurance and Credit Guarantee Corporation established under the
Deposit Insurance and Credit Guarantee Corporation Act, 1961 (No.47 of
1961);
(h) "Deputy Registrar" means a Deputy Registrar of Co-operative
Societies appointed under section 3;
Clause (hh) - as applicable to Madhya Pradesh only
(hh) "Development Bank" means a Co-operative Land Development
Bank registered or deemed to be registered under this Act;
Clause (hh) - as applicable to Chhattisgarh only
(hh) "Development Bank" means a District Co-operative Agricultural
and Rural Development Bank or the Chhattisgarh State Co-operative
Agriculture and Rural Development Bank registered or deemed to be registered
under this Act;
(i) "Family" means a person, his spouse, his children, dependent on
him and his other relations dependent on him and jointly residing with him;
(j) "Farming Society" means a so ciety formed with the object of
promoting development of land and bette r methods of cultivation, and includes
a better farming society, tenant farmi ng society, collective farming society,
joint farming society, irrigation society and a crop protection society;
(k) "Federal Society" means a so ciety of which not less than fifty
per cent of the share capital, excluding Government share capital is held by
Societies;
(l) "Financing Bank" means a society, the objects of which is the
creation of funds to be lent to other societies or its individual members, and
includes State Co-operative Bank, Co-operative Agriculture and Rural
Development Bank, Central Co-operativ e Bank, Primary Urban Co-operative
Bank and District Co-operative Agriculture and Rural Development Bank;
(l-i) “Financing Institution” means a National or State level Co-
operative Institution or organization, which provides financial assistance or
advance or loan to a Co-operative Society or an individual;”;
(m) "General Society" means a society not falling under any of the
heads (i) to (ix) specified in sub-section (1) of section 10;
Clause (n) as applicable to Madhya Pradesh only
"(n)"Housing Society" means a so ciety formed with the object of
providing its members with residential accommodation;"
(n-i) 'Industrial Society' means a Society formed with the objects of
promoting development of weavers, carpenters, metal workers, shoe makers or
any other Society which aims at producing finished goods from raw materials
of any kind.
(o) "Joint Registrar" means a Joint Registrar of Co-operative Societies
appointed under section 3:
(p) "Liquidator" means a person appointed under section-70;
10
(q) "Marketing Society" means a society formed for the purpose of
marketing agricultural or other produ ce and including among its objects, the
supply of the requisites of such production;
(r) "Member" means a person joining in the application for the
registration of a society or a person ad mitted to membership after registration
in accordance with this Act, the rules and the bye-laws applicable to such
society and includes the State Government when it subscribes to the share
capital of a society;
(s) "Multi-purpose Society" means a society which includes amongst its
objects any of the primary objects specified in any two or more of the clauses
(g), (n), (v) and (y);
(s-i) "National Bank" means the National Bank for Agriculture and
Rural Development established under section 3 of the National Bank for
Agricultural and Rural Development Act, 1981(No.61 of 1981);
(t) "Nominal Member" means a pe rson admitted to membership of a
society under section 20;
(t-i) "Officer" means a person el ected or appointed by a society
according to its bye-laws to any offi ce of such society 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 ru les or the bye-laws to give directions
in regard to the business of such society;
(u) "other backward classes" m eans category of persons belonging to
backward classes as notified by the State Government;
(u-i) "Primary Society" means a society which is neither an Apex
Society nor a Central Society;
(u-ii) "Primary Agriculture Credit Cooperative Society" means a society
organized with the main objective of making credit available for agriculture
production and includes a Primary, Serv ice Cooperative Society and Adimjati
Sewa Sahakari Samiti.
(u-iii) 'Primary Co-operative Bank' means a resource society other than
a village or urban resource society not registered as bank, the objects of which
include creation of funds to be lent to, and obtaining credit to be extended to its
Regulation Act, 1949 (10 of 1949) or permitted by the Reserve Bank of India to
do banking business till so licensed;
(v) "Producers' Society" means a society formed with the object of
producing and disposing of goods as a collective property of its members and
includes a society formed with the object of the collective disposal of the
labour of its members;
(w) "Processing Society" means a society formed with the object of
producing goods by mechanical or manual process and includes an industrial
society and a society for the processing of agricultural commodities;
(x) "Registrar" means the Registrar of Co-operative Societies appointed
under section 3;
(x-i) "Representative" means a memb er of the society to represent the
society in other societies;
(x-ii) "Reserve Bank" means the Reserve Bank of India established
under the Reserve Bank of India Act, 1934 (No.2 of 1934);
11
(y) "Resource Society" means a so ciety formed with the object of
obtaining for its members the credit, goods or services required by them and
includes a service society and a primary credit society;
(y-i) "Returning Officer" means a person appointed or approved by the
Registrar by general or special order fo r performing the duties of a Returning
Officer under this Act or the rules ma de thereunder and includes an officer
subordinate to the Returning Officer nominated in writing by him to perform
the duties of Returning Officer and to assist him;”;
(y-ii) "Scheduled area" means th e area which has been declared under
the Scheduled Area (State of Bihar, Gujarat, Madhya Pradesh and Orissa)
Order, 1977.
(z) "Society" means a co-operative so ciety registered or deemed to be
registered under this Act;
(z-i) "Specified office" means the office of the President or Chairman
and the Vice-President or Vice-Chairman;”;
(aa) "State Co-operative Bank" means the Madhya Pradesh State Co-
operative Bank, Limited;
(bb) "Student" means a person studyi ng in any educational, vocational
or training institution;
Clause (cc) - as applicable to M.P. only
(cc) "Tribunal" means the Madhya Pradesh State Co-operative Tribunal
constituted under section 77.
Clause (cc) - Omitted in Chhattisgarh only
(cc) (xxx)
CHAPTER II
REGISTRATION
3. Registrar and other officers .-(1) The State Government shall appoint
a person to be the Registrar of Co-operative Societies for the State and may
appoint one or more officers of the following categories to assist him, namely:
(a) Additional Registrar of Co-operative Societies;
(b) Joint Registrar of Co-operative Societies;
(c) Deputy Registrar of Co-operative Societies;
(d) Assistant Registrar of Co-operative Societies;
(e) such other categories of officers as may be prescribed.
(2) The officers appointed to assist the Registrar shall, within such areas as
the State Government may specify, exer cise such powers and perform such
duties conferred and imposed on the Regist rar by or under this Act as the State
Government may, by special or general order, direct:
Provided that no officer other than the Additional Registrar or the Joint
Registrar shall be directed to exercise the powers to hear appeals under section
78.
(3) The officers appointed to assist the Registrar shall be subordinate to him
and shall work under his general guidance, supervision and control.
4. Societies which may be registered .- Subject to the provisions of this
Act, a society which has as its objects the promotion of the economic interest of
its members or their general welfare in accordance with co-operative principles
12
or a society established with the object of facilitating the operations of such a
society, may be registered under this Act.
5. Registration of societies with limited or unlimited liability .- A
society may be registered with limited or unlimited liability:
Provided that unless the State Govern ment by a general or special order
otherwise directs, the liability of a so ciety of which another society is a
member shall be limited.
6. Conditions of registration .- (1) No society, other than a society of
which another society is a member, shall be registered under this Act unless it
consists of at least (twenty) persons competent to contract under section 11 of
the Indian Contract Act, 1872 (IX of 1873) and belonging to (twenty) different
families, not being near relations and, where the objects of the society include
the creation of funds to be lent to its members, unless such persons, save where
the Registrar by general or special order otherwise directs, reside in the same
town or village or in a compact group of villages:
Provided that a society formed exclusively for the benefit of students
may be registered, notwithstanding that the members of such society may not
have attained the age of majority according to the law to which they are
subject:
Provided further that the Registrar may relax the condition of minimum
membership to that society which is organized for the welfare of the employees
of any organization/establishment.
Provided also that in case of a prim ary society, there shall be at least 33
per cent. women members at the time of registration:
Provided also that the Registrar may, for sufficient reasons, relax the
conditions of the prescribed percentage of women members.
(2) The word "limited" or its equivalent in any Indian language shall be the
last word in the name of every soci ety registered with limited liability under
this Act.
7. Application and fee for registration.-(1) For purposes of registration,
an application to register a society shall be made to the Registrar in the
prescribed form and shall be accompanie d 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 such information in regard to the society, as the Registrar may require.
(2) The application shall be signed-
(a) in the case of a societ y of which no other society is a
member, by at least ten persons qualified in accordance
with the requirements of section 6; and
(b) in the case of a society of which a member is a registered
society, by a duly authorized person on beha lf of every such registered society
and where all the members of the societ y are not registered societies, by ten
other members, or when there are less than ten other members, by all of them.
(3) A society shall be registered on the payment of such fee and in
such manner as may be prescribed.
8. Power of Registrar to decide certain questions .-Where in connection
with the formation, registration or continuance of a society or the admission of
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a person as a member of a society any question arises whether a person is an
agriculturist or not or whether any person resides in a particular area or not or
whether any person belongs to any particul ar class or occupation or not or such
other question pertaining to the eligibility of any person to become a member
of a society, such question shall be d ecided by the Registrar and his decision
shall be final.
9. Registration.-(1)If the Registrar is satisfied that a society has complied
with the provisions of this Act and the rules and that its proposed bye-laws are
not contrary to this Act or the rules, he may register the society and its bye-
laws with such modifications as he may consider necessary:
Provided that no society shall be re gistered, if in the opinion of the
Registrar, it is likely to be economically unsound or is likely to have an adverse
effect upon any other society.
(2) Where the Registrar refuses to register a society or its bye-laws
he shall communicate the order of refusal together with reasons therefor to the
first signatory to the application.
(3) The Registrar shall take a decision within ninety days from the
date of receipt of an application for registration of a society:
Provided that where there is a failu re on the part of the Registrar to
dispose of such application within th e period aforesaid the Registrar shall
within the period of fifteen days from the date of expiration of that period, refer
the application to the next higher officer and where the Registrar himself is the
registering officer to the State Governme nt, who or which, as the case may be,
shall dispose of the application within tw o months from the date of its receipt
and on the failure of such higher officer or State Government, as the case may
be, to dispose of the application within that period, the society and its byelaws
shall be deemed to have been registered.
(4) The Registrar shall maintain register of societies registered or
deemed to be registered under this Act.
9-A. Conversion of co-operative into co-operative society .- Where a co-
operative registered under the Madhya Pradesh Swayatta Sahakarita
Adhiniyam, 1999 (No.2 of 2000) intends to convert itself into society under
this Act, it may apply for conversion to the Registrar, and if the Registrar is
satisfied that the co-operative has complie d with the provisions of this Act and
rules made thereunder, and that its byelaws are not contrary to this Act and
rules made thereunder, he may convert and register the co-operative society in
accordance with the provisions of this Act.
10. Classification of Societies. (1) The Registrar shall classify all societies
under one or more of the following heads, namely:-
(i) Consumer's society;
(ii) Farming society;
(iii) Federal Society;
(iv) Central Society;
(v) Housing Society;
(vi) Marketing Society;
(vii) Multipurpose Society;
(viii) Producers Society;
(ix) Processing Society;
(x) Resource Society;
(xi) General Society;
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(xii) Industrial Society.
Provided that a society formed with the object of facilitating the
operations of any particular class of socie ties shall be classified as a society of
that class.
(1-a) The Registrar may further cl assify the societies falling under any
of the heads specified in sub-section (1) under the following heads, namely:
(a) Apex Society;
(b) Central Society;
(c) Primary Society.
(2) The Registrar for reasons to be recorded in writing may alter the
classification of any society from one head to another.
(3) The decision of the Registrar in re spect of classification of societies
shall be final.
11. Amendment of bye-laws of society .-(1) No amendment of the bye-
laws of a society shall be valid until th e same has been registered under this
Act, for which purpose four copies of the proposed amendment shall be
forwarded in the prescribed manner to the Registrar.
(2) If the Registrar is satisfied that the proposed amendment is not
contrary to this Act or the rules and is not against the aims and objects of the
Society or any of its existing bye-laws he may register the amendment within
thirty days of receipt of the proposed amendment.
(3) The Registrar shall not refuse to register an amendment of the
byelaws without giving an opportunity to the applicant society, for being heard.
If he decides to refuse to register an amendment, he shall communicate the
order of refusal together with reasons ther efor to the society within thirty days
from the date of receipt of the proposal:
Provided that, where there is a failure on the part of the Registrar to
dispose of such application within th e period aforesaid, the Registrar shall,
within a period of fifteen days from the date of expiration of that period, refer
the application to the next higher officer and where the Registrar himself is the
registering officer, to the State Government, who or which, as the case may be,
shall dispose of the application within tw o months from the date of its receipt
and on the failure of such higher officer or the State Government, as the case
may be, to dispose of the application within that period, the amendment of the
byelaws shall be deemed to have been registered:
Provided further that in the case of co-operative credit structure the
provisions of the aforesaid proviso shall not be applicable.
12. Power to direct amendment of bye-laws .- (1) Notwithstanding
anything contained in this Act, or the rules or byelaws, on the request of more
than fifty per cent of the members of the society or if the Registrar considers
that an amendment of the byelaws of so ciety is necessary or desirable in the
interest of such society, he may, by an order in writing to be served on the
society in the prescribed manner, requi re the society to make the amendment
within sixty days.
(2) If the society fails to ma ke the amendment within the time
specified by the Registrar, the Regist rar may after giving the society an
opportunity of being heard and after soliciting the opinion of such Apex
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Federal society, as may be notified by the State Government, register such
amendment and issue a certified copy there of to such society:
13. Change of name .- A society may, by an amendment of its bye-laws,
change its name, but such change shall not affect any right or obligation of the
society, or of any of its members, or past members, or deceased members, or
render defective any legal proceedings by or against the society, and any legal
proceedings which might have been continued or commenced by or against the
society by its new name.
14. Certain certificates to be conclusive evidence.- (1) Where a society is
registered or deemed to be registered under this Act, the Registrar shall issue a
certificate or registration signed by him a nd such certificate shall be conclusive
evidence that the society therein mentioned has been duly registered unless it is
proved that the registration of the society has been subsequently cancelled:
Provided that where a society is deem ed to be registered under this Act,
the Registrar shall issue a certificate of registration within sixty days from the
date on which it was deemed to be registered.
(2) No society shall commence business unless it has obtained a
certificate of registration under sub-section (1) and every member of such
society carrying on business in contrave ntion of this sub-section shall be
severally liable for all liabilities incurred in such business.
(3) When the Registrar registers an amendment of the bye-laws of a
society under section 11 or section 12 he sh all issue to the society a copy of the
amendment registered by him, which shall be conclusive evidence that the
same is duly registered.
(4) Where a society changes its name under section 13, the Registrar
shall amend the certificate of registration accordingly which shall be conclusive
evidence that the change of name is duly registered.
15. Change of liability of society from limited to unlimited or vice-
versa .- (1) Subject to the provisions of section 11, a society may by an
amendment of its bye-laws change its liability from limited to unlimited or
from unlimited to limited.
(2) No such amendment shall be regi stered by the Registrar unless he is
satisfied that-
(i) twenty-one day's notice has b een given to every member of the
society and to any person or class of persons whose interest may, in the opinion
of the Registrar, be affected by the change; and
(ii) with respect to every su ch member or person who, in the
opinion of the Registrar, is entitled to notice-
(a) either his assent has been obtained to the change or is
deemed to have been obtained by virtue of his failure to object within twenty
one days from the date of the notice,
(b) if he objects-
(i) he is allowed to w ithdraw his share if he is a
member, or
(ii) that his debt or claim has been discharged or has
been determined or has been secured to the
satisfaction of the Registrar within three months
from the date of receipt of objection if he is a
c r e d i t o r :
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Provided that the Registrar may in the case of any person or class of
persons, for special reasons, to be recorded, dispense with the notice required
by this sub-section.
16. Reorganization of Societies .-(1) In this section-
(a) "affected society" means a society which decides to reorganize
itself in any of the manners specified in sub-section (2); and
(b) "resulting society" means a society-
(i) which is formed as a result of amalgamation under
clause (a) of sub-section (2); or
(ii) to which the assets and liabilities of the affected societies
are transferred in whole or in part under clause (b) sub-
section(2); or
(iii) which is formed as a result of division under clause (c)
of sub-section (2); or
(iv) which is the result of change of class as provided in
clause (d) of sub-section (2).
(2) A society may, by resolution passe d by two-thirds majority of the
members present and voting at a special general meeting held for the purpose
decide to reorganize itself by-
(a) amalgamating itself with another society; or
(b) transferring its assets and liabilities in whole or in part to
any other society; or
(c) dividing itself into two or more societies; or
(d) converting itself into a class of society, the object of
which is materially different from that under which it has
been classified under this Act:
Provided that no such decisions sha ll take effect unless it is approved by
the Registrar:
Provided further than in case of a Co-operative Bank, the Registrar shall
not give his approval save with the previous sanction in writing of the Reserve
Bank;
(3) Notwithstanding anything contained in sub-section (2) where the
Registrar is satisfied that it is essential in the public interest or in the interest of
the members of the affected societie s or necessary to secure the proper
management of any society, he may direct that any society or societies shall
reorganize itself or themselves in any one or more of the modes indicated in
sub-section (2):
Provided that, in the case of a Co -operative Bank, the Registrar shall
not issue any direction save with th e previous sanction in writing of the
Reserve Bank:
Provided further that before a final order under this sub-section is
passed by the Registrar every society c oncerned shall be given an opportunity
of expressing its opinion on the reorganization proposals.
(4) The procedure for reorganizati on of a society in accordance with
the decision under sub-section (2) or th e direction of the Registrar under sub-
section (3), as the case may be, shall be such as may be prescribed.
(5) If any such reorganization under sub-section (2) or (3) is likely
to affect in any manner the interest of any person, notice thereof shall be given
to all such persons and every such person shall be given an option, to be
exercised within a month from the date of the issue of such notice, of either
17
becoming a member of the resulting soci ety or societies or of demanding the
payment of the share or interest or dues in respect of the affected society, as the
case may be.
(6) No reorganization shall be final until the assent of every such
person whose interest is likely to be a ffected, has been obtained or deemed to
have been obtained by virtue of his failure to exercise the option given to him,
and further, unless all the claims of pe rsons who have exercised the option of
demanding the payment of their shares or interests or dues under sub-section
(5) have been met in full.
(7) Every resulting society under this section shall have such
constitution, property, powers, rights, interests, authorities, duties and
obligations as may be specified in the scheme of reorganization and every such
scheme of reorganization may contain such consequential, incidental and
supplemental provisions as may, in the opinion of the Registrar, be necessary to
give effect to such scheme.
(8) Notwithstanding anything contained in the Transfer of Property
Act, 1882 (IV of 1882) or the Indian Registration Act, 1908 (XVI of 1908), a
resolution of a society approved by the Re gistrar under sub-section (3) shall be
sufficient conveyance to vest the assets and liabilities of each affected society
in the resulting society or societies concerned, such vesting being subject only
to the provisions of the scheme of reorganization.
(9) The reorganization of societies shall not in any manner,
whatsoever affect any right or obligation of the resulting society or societies or
render defective any legal proceedings by or against the society or societies and
any legal proceedings that might have been continued or commenced by or
against the society or the societies, as the case may be, before the
reorganization may be continued or commenced by or against the resulting
society or societies.
(10) Where any two or more societies have been amalgamated or a
society has been divided or converted, the registration of such society or
societies shall be deemed to have been cancelled on the date of registration of
the amalgamated society or of the converted society or of the new societies into
which the society may have been divided.
(11) Where a land mortgage bank has been reorganized by
amalgamation with a central bank, the amal gamated bank shall in respect of all
transactions relating to the land mortgage bank business made on and after such
amalgamation be deemed to be a land mortgage bank within the meaning of the
law relating to Land Mortgage Banks for the time being in force.
Explanation.- For the purposes of this s ection "Central Bank" means a
society with the words "Central Bank” or "District Bank" as part of its name
and whose main object is to finance so cieties which are members of it and lie
within a specified area.
(12) Every scheme of such reor ganization shall be published in the
official Gazette for general information.
16-A. Collaboration by Societies .- Any society may, enter into the
collaboration with any Government U ndertaking or any undertaking approved
by the State Government for carryi ng on any specific business including
industrial investment, financial aid or marketing and management expertise.
16-B. Partnership of Societies .-Any two or more societies may by resolution
passed at general meeting by a majority of members present and voting in each
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such society enter into a contract of a partnership for carrying out any specific
business permissible under the byelaws on such terms and conditions as may be
mutually agreed upon. Where such pa rtnership requires creation of a new
organization, the participating society shall be its members.
(Section 16-C - Applicable in Chhattisgarh only)
16-C.Excerpt shown. Open the full act in Lexace.