The ODISHA CO-OPERATIVE SOCIETIES ACT, 1962

ODISHA ACT 2 OF 1963
*THE ODISHA
CO-OPERATIVE SOCIETIES ACT, 1962
Assented to by the President on the 3rd February 1963, first published in
an extraordinary issue of the Orissa Gazette, dated the 15th February 1963.
AN  ACT  TO  CONSOLIDATE  AND  AMEND  THE  LAW  RELATING  TO
CO-OPERATIVE SOCIETIES.
BE it enacted by the Legislature of the State of Orissa in the Thirteenth
Year of the Republic of India as follows :–
CHAPTER - I
PRELIMINARY
1. Short title, extent and commencement :– (1) This Act may be
called the Orissa Co-operative Societies Act, 1962.
(2) It extends to the whole of the State of Orissa.
(3) It shall come into force on such date as the State Government may,
by notification appoint.
Objects and Reasons :– The pr ovisions of the pr esent Orissa Co-
operative Societies Act, 1951 ar e not adequate to meet the pr esent da ys'
requirement and they are not suited for the repaid development of Co-operatives
in the State which is an essential need for the success of various development
programmes, particularly those which are meant to help the weaker sections
of the communi ty. The question of r evising the existing Act thor oughly has
been under consideration of the State Government for sometime past A model
Co-operative S ocieties B ill has been pr epared b y a commi ttee special ly
constituted by the Go vernment of I ndia for this purpose. Ac cordingly, after
taking this model Bill into consideration and in the light of the circumstances
prevailing in the State, the pr esent Bill has been dr afted to mak e the la w
simple, comprehensive and easily understandable and to specially provide for
development of Co-operatives in certain directions; such as Co-operative farms
and land mortgage banks, f or which adequate provisions do not exist under
the present Act. This Bill seeks to achieve the above purpose.
1. Published vide Orissa Gazette Ext. No. 99-D/15.02.1963, Notfn. No. 968 Legis.
dated 13.02.1963.
The Odisha   Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
Similarly, it is necessary that the Auditor-General of Co-operative Societies,
to whom all powers of Audit and Surcharge etc., have been transferred under
the amendments of 1991, is empower ed to have access to the r ecords and
property of the Society and exercises all ancillary powers and not the Registrar
any longer, as provided under Sub-Section (4) of Section 62 of the Act.
This Bill seeks to achieve inter alia, the above objectives.
Act 7 of 1996
The Bill presented for replacement of the Orissa Co-operative Societies
(Amendment) Ordinance, 1996 provides, inter alia, for immediate representation
of the weaker Sections in the Committees of management of al l Central and
Apex Societies in the State, dissolution of the exiting Committees of such Societies
with effect from the date of pr omulgation of the Or dinance, vesting of the
management of the said S ocieties in the R egistrar, upon such dissolution,
entrustment of such management of interim Committees to be nominated by
the Registrar giving representation therein to the tar get group of vulnerable
Sections, voluntary amendments of bye-laws and reconstitution of Committees
of the Societies concerned within the specified period of six months and
compulsory amendment of bye-laws and reconstitution of Committees of the
Societies concerned within the specified period of six months, and compulsory
amendment of bye-laws and constitution of such Committees by the Registrar
in the event of the Society failing to so amend and constitute, within the specified
period, deemed membership of the members of Primary Societies in the Central
and Apex Societies to which the Primary Societies are affiliated, revised definition
of Central and Apex Societies, enabling such Societies to also have individuals
as their members, reintroduction of the provision regarding suspension of erring
Committees of Societies, pending finalisation of suppression proceedings initiated
against them, and also reintroduction of a system of indirect election of Presidents
of Committees of mangement in or der to ha ve more cohesively functional
Committees.
The Bills seeks to achieve the above objectives.
Act 6 of 1998
The Orissa Co-operative Societies (Amendment) Bill, 1998 seeks to replace
the Orissa Co-operative Societies (Amendment) Ordinance, 1998.
In order to give reasonable time, so as to enable the Registrar to cause
amendment of the B ye-Laws of the Central and Apex Co-operative Societies
and to r econsti tute the Commi ttees of such S ocieties wi th adequate
representation of weaker Sections belongings to Scheduled Castes, Scheduled
Tribes, Other Backward Classes and women by holding election, which could
not be completed within the statutory period due to unexpected interruption
caused by the General Election to the Lok Sabha, as stated in the Statement
explaining the circumstances which had necessitated immediate legislation. It
is considered necessary and expedient to amend Section 28 (2) (g) (iv) of the
Orissa Co-operative Societies Act, 1962 by enhancing the period specified therein
from nineteen months to twenty-five months.
Society or class of registered societies, the accounts of which
are made up to any other date with the previous approval of
the Auditor-General, the year ending with such date;]
1[(d-2) "Co-operative Principles" means the principles specified in
Schedule II;
(d-3) "Family"  means an individual, his or her spouse, sons,
daughters and other near relatives dependent on, and jointly
residing with, him or her;]
2[(e) "Financing Bank" in relation to a S ociety means a S ociety
engaged in B anking business under the B anking Regulation
Act, 1949 or a Scheduled Bank as defined under the Reserve
Bank of I ndia Act, 1934 or the R eserve Bank of I ndia, the
National B ank f or Agricul ture and R ural Dev elopment, the
Industrial Development Bank of India Limited or any similar
Bank or any financial institutions regulated by the Reserve Bank
of India and includes such financing institutions like the National
Dairy Dev elopment B oar d and National Cooper ativ e
Development Corporation, to which the Society is indebted in
cash or in kind;'; and]
1[(e-1) "Joint Member" means a husband and wife team joining as
such in an appl ication for registration of a S ociety which is
subsequently registered, or admi tted as joint member after
the registration of a Society in accordance with the provisions
of this Act, R ules and B ye-laws of a S ociety and holding a
share or shares in the Society jointly;]
(f) "Member" means a person joining in the application for the
registration of a Society and a person admitted to membership
after such registration in accordance with this Act, the rules
and the bye-laws, and includes a 3[joint and nominal Member;]
4[(f-1) "Near relative" means father, mother, husband, wi fe, son,
daughter, undivided brother, unmarried sister and son's wife;]
5[(f-2) “Nominal member” means a person admitted as such to a
Society, after its registration in accordance with the bye-law;]
6[(f-3) "National Bank" means the National B ank for Agriculture
and Rural Dev elopment establ ished under section 3 of the
National Bank for Agriculture and Rural Development Act, 1981;]
1. Inserted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 11.09.1992.
2. Substituted by Orissa Act 1 of 2008, dated 20.03.2008, w.e.f. 29.09.2007.
3. Substituted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 11.09.1992.
4. Inserted by Orissa Act 21 of 1970, dated 26.10.1970.
5. Inserted by Orissa Act 19 of 1983, dated 11.10.1983.
6. Inserted by Orissa Act 1 of 2008, dated 20.03.2008, w.e.f. 29.09.2007.
(ii) to such amount as they ma y, in accordance with such
Bye-laws, respectively, undertake to contribute to the
assets of the Society ;
(m) “Society with unlimited liability” means a S ociety, the
members of which ar e, in the ev ent of i ts being wound up
jointly and severally liable for and in respect of all its obligations
to contribute to any deficit in the assets of the Society;
1[(m-1) “Standard acre” shall have the same meaning as assigned
to it under the Orissa Land Reforms Act, 1960 (Orissa Act 16 of
1960);]
(n) “State Co-operative Union” means the Society registered
under the Orissa Co-operative Societies Act, 1951 (Orissa Act
11 of 1952), b y the name of the ‘Orissa State Co-operative
Union Limited; and
2[(n-1) "State Co-operative Election Commission"  means the
Odisha State Co-operative Election Commission consisting of
a Odisha State Co-operative Election Commissioner appointed
by the Governor under Section 28-AA;]
3[(o) “Tribunal” means Co-oper ative Tribunal consti tuted under
Section 67-A.]
CHAPTER - II
REGISTRATION OF CO-OPERATIVE SOCIETIES
3. Registrar :– (1) The State Government may appoint a person to be
the Registrar of Co-oper ative Societies for the State and ma y appoint other
persons with prescribed designations to assist him.
(2) The State Government may, by general or special order, confer on
any person appointed to assist the R egistrar all or any of the powers of the
Registrar under this Act to be ex ercised within such local l imits as ma y be
assigned by the Registrar.
(3) The State Go vernment may also, by order, appoint any Society or
local authority to assist the Registrar who shall exercise in the prescribed manner
such powers of the Registrar, as may be specified in the said order.
(4) Every person appointed to assist the R egistrar shall exercise the
powers conferred on him under Sub- Section (2) or (3), as the case ma y be,
subject to the general superintendence and control of the Registrar.
4[3-A. Auditor-General :– (1) The State Government may appoint a
person to be the Auditor-General of Co-operative Societies for the State, and
1. Inserted by Orissa Act 21 of 1970, dated 26.10.1970.
2. Inserted by Orissa Act 1 of 2013, dated 30.01.2013.
3. Inserted by Orissa Act 19 of 1985, dated 11.10.1985.
4. Inserted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 01.05.1993.
case of a Society the object of which is housing where such
minimum number shall be fifteen, so however that, in either
case, such minimum number of individuals shall include three
members from the Scheduled Castes including one woman,
three from Scheduled Tribes including one woman, four from
Other Backward Classes including one woman and five from
other categories of members including two women :]
Provided that no such individual shall be a near relative of another :
Provided further that in the case of a S ociety organised exclusively for
the pr omotion of the economic inter est of an y particular pr ofessional or
occupational group of individuals, the individuals joining in the application for
registration shall be pursuing such profession or occupation:
1[Provided also that in the event of non-availability of the minimum number
of individuals from the Scheduled Castes, the Scheduled Tribes, Other Backward
Classes or women so required for registration, the Registrar may exempt the
proposed Society from the requirement of such category of individuals]
Explanation :– A husband and wife team of two individuals joining in
the application as a Joint Member shall be deemed to be one individual for the
purpose of this clause.
(ii) a Central Society including a Central Co-operative Bank, or
an Apex S ociety, the number of S ocieties joining in the
application shall not be less than five and ten, respectively.
(c) persons joining in the application for registration shall belong to
the area of oper ation of the pr oposed Society as defined in i ts
bye-laws;]
(d) the application shall be signed by every one of the applicants who
is an individual and in the case of applicants other than individuals
by a person duly authorised by such applicant in that behalf;
2[(e) the application shal l indicate the names and addr esses of the
applicants who shal l be the members and Pr esident of the
Preliminary Committee of the Society as referred to in Sub-Section
(1-c) of Section 28:
Provided that the number of appl icants to be so indicated shal l, in no
case, exceed the limit specified for that purpose in Sub-Section (2) of Section
28.]
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 pr oposed Society are in accordance with
Section 4;
1. Substituted by Orissa Act 10 of 2001, dated 29.08.2001, w.e.f. 03.07.2001.
2. Inserted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 01.05.1993.
opinion is received from the Society consulted within fifteen days from the date
of the reference to that ef fect, it shall be deemed that such S ociety has no
objection if the proposed Society is registered.]
8. Registration Certificate :– 1[A Certificate of r egistration issued
under Section 7 shall be conclusive evidence of the fact that the Co-operative
Society mentioned therein is a Society duly registered under this Act.]
9. Co-operative Societies to be bodies corporate :– A Co-operative
Society registered under this Act shall be a body corporate by the name under
which it is registered having perpetual succession and a common seal and with
power to 2[acquire and hold property and to dispose in the manner prescribed
of its property,] enter into contracts, institute and defend suits and other legal
proceedings and to do al l things necessary f or the purpose f or which it was
constituted.]
10. Change of name of a Society :– (1) A S ociety ma y, b y 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 former name and
shall amend the certificate of registration accordingly.
(3) The change of name of a S ociety shal l not af fect an y rights or
obligations of the Co-operative 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 ther eof in wri ting to al l its members and
creditors and notwi thstanding any bye-law or contr act to the contr ary, any
member or creditor shall, during a period of one month 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 ha ve assented to the
change.
(4) Any 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 obtained;
or
1. Inserted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 01.05.1993.
2. Substituted by Orissa Act 28 of 1991, dated 31.12.1991 (S. 9-force w.e.f. 10.06.1997,
S.8-force w.e.f. 01.05.1993.
the prescribed manner, call upon the Society to make such amendment within
such period as he may specify in that behalf.
(6) If the Society fails to make the amendment within the period aforesaid
the Registrar may, after giving the Society a reasonable opportunity of being
heard, register the amendment and shall forward to the Society a copy of the
registered amendment together wi th a certi ficate signed b y him and such
certificate shall be conclusiv e evidence that the amendment has been duly
registered.]
13. When amendments of bye-laws come into force :–  An
amendment of the bye-laws of 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.
1[Provided that an amendment made wi th the prior appr oval of the
Registrar shall come into oper ation with effect from the date on which the
resolution in respect thereof is passed at the general meeting of the Society.]
14. Amalgamation, transfer of assets and liabilities and division
of Societies :– (1) A S ociety may, 2[ x x x ] b y a r esolution passed b y a
majority of the members present and voting at a general meeting of the Society–
(a) transfer its assets and liabilities in whole or in part to an y other
Society which is prepared to accept them; or
(b) divide itself into two or more Societies.
(2) Any two or more Societies may, 2[ x x x] by a resolution passed by a
majority of the members present at an ordinary general meeting of each such
Society specially convened for the purpose of which at least seven days clear
notice has been given to each member and subject to the other condi tion of
this section amalgamate into a single Co-operative Society.
(3) 3[ x x x ]
(4) The resolution of a Society under Sub-Section (1) or Sub-Section (2)
3[ x x x ] shall contain all particulars of the transfer, division or amalgamation as
the case may be.
(5) When a Society has passed any such resolution under Sub-Section
(1) or Sub-Section (2) 3[ x x x ], the Society concerned shall give notice thereof
in wri ting in the pr escribed manner to al l i ts members and cr editors and,
notwithstanding any bye-laws or contract to the contrary, any member or creditor
shall, during the period of one month from the date of issue of the notice, have
the option of withdrawing his shares, deposits or loans, as the case may be.
(6) Any member or creditor who does not exercise his option within the
period specified in Sub-Section (5) shall be deemed to ha ve assented to the
proposals contained in the resolution 3[ x x x ].
1. Inserted by Orissa Act 5 of 1970, dated 05.03.1970.
2. Omitted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 01.05.1993.
3. Omitted by Orissa Act 19 of 1983, dated 11.10.1983.
(b) such incidental, consequential and supplemental matters as may,
in the opinion of the Registrar, be necessary to give effect to the
re-organisation or amalgamation of the Society or Societies.
(3) No order under Sub-Section (1) shall be made unless the Registrar–
(a) has given every Society concerned an opportuni ty of stating i ts
objections and suggestions on the or der proposed to be made;
and
(b) has considered the objections and suggestions so made by every
such Society, or its members, depositors, creditors, employees, or
any other persons concerned, within such period, not being less
than fifteen days from the date of receipt of the proposed order,
as the Registrar may fix in that behalf.
(4) An order issued under Sub-Section (1) shall, notwithstanding anything
contained in this Act, or in any other law or in any contract, award or instruments
for the time being in f orce, be binding on al l Societies and their members,
depositors, creditors, employees and other persons having any rights, assets
or liabilities in relation to all or any of the concerned Societies.
(5) On and from the date the re-organisation or the amalgamation takes
effect, the assets and liabilities referred to therein shall stand re-organised or
amalgamated, as the case may be, with the assets and liabilities of the resulting
Society or Societies formed out of such re-organisation or amalgamation and
the members, creditors and debtors of such Society or Societies shall be deemed
to be members, creditors and debtors, as the case may be, of such resulting
Society or Societies as ordered by the Registrar.
(6) In case of the S ociety or S ocieties directed to be r e-organised or
amalgamated, the registration of the re-organised or merged Society or societies,
as the case may be, shall be deemed to be cancelled from the date on which
the re-organisation or amalgamation takes effect.
(7) Notwithstanding anything contained in the Transfer of Property Act,
1882 (4 of 1882) or the Registration Act, 1908 (16 of 1908), an order issued
under this section shal l be suf ficient conveyance to tr ansfer the assets and
liabilities of the Society or Societies covered by any order passed under Sub-
Section (1).]
1[14-B. Special provision in respect of certain sick Societies :–
2[(1) (a) Subject to the provisions of Section 123, and notwithstanding anything
to the contrary contained in any other provisions of this Act and the Rules or
Bye-laws framed thereunder, or an y other la w, for the time being in f orce,
where the Registrar, for reasons to be recorded, is of the opinion that a Co-
operative Society in which majori ty of the shar es have been subscribed or
liabilities by way of guarantee for borrowing exceeding fifty percentum of the
working capital of the Society have been undertaken by the State Government;
1. Inserted by Orissa Act 1 of 1995, dated 11.01.1995.
2. Substituted by Orissa Act 7 of 1997, dated 23.07.1997.
on the date of the transfer, is increased and make payments due, if any, under
the settlement, to the Society or any such persons.]
(2) An order issued under Sub-Section (1) shall, notwithstanding any-
thing contained in this Act, the Rules or Bye-laws framed thereunder, or in any
other law or in any contract, award or instrument for the time being in force, be
binding on all members, depositors, creditors, employees of the Society and
other persons concerned having any right, assets or liabilities in relation to the
Society.
(3) The order under Sub-Section (1) may provide for :–
(a) reduction of the interest or right which the members, depositors,
creditors, employees and other persons concerned may have in or
against the Society, to such extent as the Registrar considers nec-
essary, having due regard to the proportion of the assets of the
Society to its liabilities; and
(b) such incidental, consequential and supplemental matters as may
in the opinion of the Registrar, be necessary to give effect to the
said transfer.
1[(4) For the purpose of this section, at any stage of proceeding thereun-
der, it shall be competent for the State Government to give such directions to
the Registrar, as it may deem proper in the facts and circumstances of every
case, and such directive shall be binding on the Registrar.]
2[(5) Notwithstanding anything contained in the T ransfer of Pr operty
Act, 1882 (4 of 1882) or the R egistration Act, 1908, (16 of 1908) an or der
issued under this Section shall be sufficient conveyance to transfer the assets
and liabilities of the Society.]
1[Explanation :– For the purposes of this section,–
(i) 'Company' shall mean a compan y as defined in the Companies
Act, 1956 (1 of 1956);
(ii) 'Sickness' in respect of a Society shall ordinarily mean non-viabil-
ity, and may bear such other meaning as assigned to it under Sick
Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) or
any other law in force; and
(iii) 'Transfer' shall include transfer by way of management contracts,
lease or any other mode.]
15. Cancellation of registration certificates of Societies in cer-
tain 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 it shall
be deemed to have been dissolved and shall cease to exist as a corporate body.
1. Substituted by Orissa Act 7 of 1997, dated 23.07.1997.
2. Added by Orissa Act 7 of 1997, dated 23.07.1997.
Provided that nothing in this clause shall debar a student, who is a mi-
nor, from becoming a member of a Society formed for the benefit of the stu-
dents of an Educational Institution, or a person who is not an individual, from
becoming a nominal member:
Provided further that not mor e than thr ee individuals f rom the same
family shall be admitted as members:
1[Provided also that nothing in this clause shall debar the Co-operative
Societies to admit Self-Help Groups as member;]
Explanation :– A Joint Member consisting of two individuals related to
each other as husband and wife shall be deemed to be one individual for the
purpose of this clause.
(b) a Society other than a Primary Society, except the following, namely:–
(i) any Society;
(ii) the State Government;
(iii) the Central Government; and
(iv) any other person as may be prescribed;
2[(v) a cooperative registered under the Orissa Self-Help Co-operatives
Act, 2001]
3[ x x x ]
4[(1-a) Notwithstanding anything to the contrary contained in any other
provisions of this Act, and the Rules or Bye-laws framed thereunder, the mem-
bers of the Committee including the co-opted members, if any, but excluding
the members nominated or appointed under Clause (ii) of Sub-Section (1-b) of
Section 28, Sub-Section (1) of Section 31 and Sub-Section (1) of Section 32, of
the Primary Societies affiliated to the Central Society or an Apex Society, shall
be deemed to be the members of their r espective Central Society or, as the
case may be, the Apex Society or both, with effect from the date of commence-
ment of the Orissa Co-operative Societies (Amendment) Act, 1997 so long as
they continue as member of the Committees of Primary Societies.
(1-b) (i) The members of the Primary Societies who were deemed to be
the members of their r espective Central Society or, as the case ma y be, the
Apex Society or both, prior to the date of the commencement of the Orissa Co-
operative Societies (Amendment) Act, 1997, shall be deemed to have ceased
to be members of such Societies with effect from the date of such commence-
ment.
(ii) Upon such cessation:–
1. Substituted by Orissa Act 1 of 2008, dated 20.03.2008, w.e.f. 29.09.2007.
2. Inserted by Orissa Act 1 of 2008, dated 20.03.2008, w.e.f. 29.09.2007.
3. Omitted by Orissa Act 7 of 1996, dated 22.04.1996.
4. Substituted by Orissa Act 4 of 1997, dated 23.05.1997.
(d) the business in milk and milk products carried on by a person shall
be deemed to be prejudicial to the business or interest of a Milk
Co-operative Society;
(e) the business in oi l-seeds and oi l-seed products carried on b y a
person shall be deemed to be prejudicial to the business or inter-
est of an Oil-seed Growers' Co-operative Society; and
(f) a family member of an individual shall, unless the contrary is proved,
be deemed to ha ve common economic inter est with such indi-
vidual.
(4) Any person continuing as a member of a Society in contravention of
the provisions of this section shall cease to be such member with effect from
the date of commencement of Section 12 of the Orissa Co-operative Societies
(Amendment) Act, 1991.]
1[(5) x x x ]
2[16-A. Admission and continuance as members :– (1) No person
shall be eligible for being admitted or for continuing as a member of a Society,
if he–
(a) does not satisfy the requirements of this Act, Rules and Bye-laws
made thereunder; or
3[(a-1) has not at tended thr ee consecutiv e general meetings of the
society and such absence has not been condoned by the members
in the general meeting ; or
(a-2) has not used f or two consecutive years the services, below the
minimum level specified in the bye-laws; or]
(b) has been sentenced for an offence involving moral turpitude; or
sentenced to fine or imprisonment or both for any other offence
by a Court in India, unless any such sentence is annul led or re-
versed or, in the latter cases until expiry of a period of five years
from the date the fine is paid if the sentence is for fine, or where
the sentence is for imprisonment or both fine and imprisonment,
from the date he is released from the imprisonment, as the case
may be; or
(c) is an applicant to be, adjudicated as a bankrupt or an insolvent or
is an undischarged bankrupt or insolvent; or
(d) is a paid employee of the Society or its Financing Bank :
Provided such an employee may be admitted or retained as a nominal
member; or
(e) has been expelled by the Society or any other Society, unless a
period of two years has expired from the date of such expulsion.
1. Omitted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 11.09.1992.
2. Inserted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 11.09.1992.
3. Inserted by Orissa Act 1 of 2013, dated 30.01.2013.
1. Substituted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 11.09.1992.
2. Renumbered by Orissa Act 1 of 2008, dated 20.03.2008, w.e.f. 29.09.2007.
3. Inserted by Orissa Act 1 of 2008, dated 20.03.2008, w.e.f. 29.09.2007.
4. Inserted by Orissa Act 4 of 1997, dated 19.05.1997.
5. Inserted by Orissa Act 1 of 2013, dated 30.01.2013.
6. Omitted by Orissa Act 7 of 1996. dated 22.04.1996.
19. 1[Exercise of membership rights :– 2[(1)] No member of a Society
shall be entitled to exercise his right as such unless he has made such payments
to the Society in respect of membership, acquired such interest in the Society
or fulfilled such obligation of members, as is required by this Act or as may be
provided in Rules and Bye-laws:]
3[(2) Sa ve as pr ovided in sub-section (1), a member of a Primary
Agricultural Credit Co-operative Society, Large-sized Adivasi Multipurpose Co-
operative Society, Service Co-operative Society and Farmers' Service Co-operative
Society shall not have the right to vote unless he has deposited such amount
for such period as may be specified by the Registrar from time to time.]
4[Provided that the pr ovisions of this S ection shal l not apply to the
members of the Committee of the Primary Societies who shall be deemed to be
members of the Centr al Society or as the case ma y be, the Apex S ociety in
accordance with the provisions of Sub-Section (1-a) of Section 16.]
5[(3) Every member of a Society shall have right to access to the books,
information and accounts of a Society kept in regular transaction of its business
during business hours.]
20. Vote of members :– Every member of a S ociety shall have one
vote in the affairs of the Society :
1[Provided that –
(a) 6[x x x]
(b) where two individuals, ha ve been admi tted as joint members,
they shall have one vote which may be exercised by any one of
them;
(c) where the State Go vernment or the Centr al Go vernment is a
member of the Society, each person nominated by or on behalf of
such Government on the Committee shall have one vote;
(d) where there is an equality of votes at a meeting on the affairs of
the Society other than election of its office-bearers or amendment
of its bye-laws, the person presiding over the meeting shall have
a second and deciding vote; and
(e) where a member of the S ociety is simul taneously electing the
President and the member of the Committee from his constituency,
he shall have one vote for electing the President and another for
the member.]
22. Restriction of holding of shares :– In any Society no member
belonging to the category mentioned in Clause (a) of Sub-Section (1) of Sec-
tion 16 shall–
(a) hold more than such portion of the total share capital of the Soci-
ety not exceeding one-tenth thereof as may be prescribed; or
(b) have or claim any interest in the shares of the Society exceeding
five thousand rupees:
Provided that the State Government may, by notification, specify in re-
spect of any class of Societies a higher maximum than one-tenth of the share
capital or a higher amount than five thousand rupees, as the case may be.
23. Restrictions on transfer of shares or interest :– (1) The trans-
fer of a share or interest of a member in the capital of a Society shall be subject
to such conditions and restrictions as to the maximum holdings as are specified
in Section 22.
(2) No transfer by a member of his share or interest in a Society shall be
valid unless–
(a) the member has held such share or interest for not less than one
year;
(b) the transfer is made to a member  of the Society; and
(c) the transfer is approved by the Committee of the Society.
(3) Where a member of a Co-operative Farming Society has pooled lands
in favour of the Society no such land shall be withdrawn from the Society within
such period as may be specified in the Bye-laws of such Society.
1[(4) Notwithstanding anything contained in the preceding Sub-Section
where a person ceases to be a member of any Society by reason of resignation
or expulsion or by reason of incurring any disqualification provided under this
Act or the Rules or under the Bye-laws of the Society, the Society may retire
the shares of or the interest in the share capital held by such person on pay-
ment of the face value of such share or in interest.]
24. Transfer of interest on death of member :– (1) On  the death
of a member, the Society shall transfer the share or interest of the deceased
member to the person or persons nominated in accordance with the Rules, or,
if no person has been so nominated, to such person as ma y appear to the
committee after such enquiry as he deems fit to be the heir or legal representative
of the deceased member:
Provided that such nominee, heir or legal r epresentative, as the case
may be, is admitted as a member of the Society:
Provided further that nothing in this Sub-Section shall prevent a minor or
a person of unsound mind or a person suffering from any other disqualification,
if any, under the bye-laws from acquiring by inheritance or otherwise the share
1. Substituted by Orissa Act 21 of 1970, dated 20.10.1970.
CHAPTER - IV
MANAGEMENT OF SOCIETIES
27. Final authority in a Society :– The final authori ty in a S ociety
shall vest in the general body of members:
1[Provided that wher e the ar ea of oper ation or the membership of a
Society exceeds such l imits as ma y be pr escribed, a r epresentative smaller
General Body shall be constituted in the manner prescribed which shall exer-
cise all the powers of the Gener al Body except the powers of electing of fice
bearers. 2[x x x]:
Provided further that nothing in this section shall affect any powers con-
ferred on a committee or any officer of a Society by the Rules or the Bye-laws.
28. Society to have a Committee :–  3[(1) The management of a
Society shall vest in a Committee constituted in accordance with this Act, Rules
and Bye-laws, and the Commi ttee so constituted shall exercise such powers
and perform such duties as may be necessary or expedient for the purpose of
carrying out its functions under this Act which shall include–
(a) the power to–
(i) admit members and dispose of applications for shares;
(ii) interpret the organisational objectives and set specific goals
to be achieved towards those objectives;
(iii) prepare annual and supplementary budgets and get ap-
proval of the General Body thereto;
(iv) raise and invest funds in accordance with the Bye-laws;
(v) sanction all expenditure above the prescribed level and the
plan of capital development for the coming year or years;
(vi) enforce any debt or demand of the S ociety and institute,
defend or compromise legal proceedings for or against the
Society;
(vii) assess the existing man-power r esources and f uture re-
quirements in the context of changes that might have taken
place and the measures to be taken to ensure availability of
the required resources, consider and remove constraints in
the process or progress of manpower planning atleast once
at the beginning of every year;
4[(viii)appoint officers or other staf f to conduct the business of
the Society and define interalia their duties,service condi-
1. Substituted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 14.11.1995.
2. Omitted by Orissa Act 7 of 1996. dated 22.04.1996.
3. Substituted by Orissa Act 28 of 1991, dated 31.12.1991, [(1(a) (xiii) w.e.f.
10.06.1997), w.e.f. 01.05.1993 excepting 1(a) (viii), & (xiii)].
4. Substituted by Orissa Act 11 of 2004, dated 27.12.2004.
(c) preparation of Annual returns prescribed by the Reg-
istrar and the Auditor-General;
(d) preparation of the statement of accounts required at
audit and placement of the same bef ore the audi-
tors;
(e) preparation of all other statements and returns and
submission of the same to the Registrar and the Au-
ditor-General in such forms as they may direct;
(f) maintenance of the accounts of the Society regularly
in proper Books;
(g) maintenance of the register of members up to date;
1[(ii-a) pr oviding co-oper ative education and tr aining to i ts
members;
(ii-b) save as pr ovided in sub-clause(i i), filing of r eturn of the
society every year within six months of the closure of the
financial year, to the Registrar or, as the case ma y be, to
the Financing Bank, which shall include–
(a) annual report of its activities ;
(b) its audited statement of accounts ;
(c) plan for surplus disposal as approved by the General
Body;
(d) list of amendments to its bye-laws, if any;
(e) declaration regarding date of holding its General Body
meeting and conduct of election when due; and
(f) any other information required by the Registrar or,
as the case may be, Financing Bank.];
(iii) formulating recommendation for appropriation of the net
profits declared as distributable under the provisions of this
Act and R ules, and submi tting the same to the Gener al
Body;
(iv) facilitating the inspections, inquiries and audits under this
Act and considering the Audit, Inspection and Inquiry Re-
ports received from the concerned authorities and furnish-
ing compliance there to in accordance with the provisions
of this Act and Rules;
(v) convening the meetings and special meetings of the Gen-
eral Body in time;
(vi) watching that the loans and adv ances are utilised for the
purposes for which they are meant and also that they are
repaid punctually;
1. Inserted by Orissa Act 1 of 2013, dated 30.01.2013.
in any manner specified in Sub-Section (1) of section 31, the State Government
or any person authorised by it may nominate the members and Pr esident of
the Preliminary Committee to manage the affairs of the Society, 1[and if neces-
sary, take all or any policy decision including admission of members in relation
to the Society] for a period not exceeding two years so, however, that not less
than half of the members ther eof shall be from among the members of the
Society.]
Modification by govt. order dt 08.10.2002 in respect of it's
application to the P.P.T Employees Co-operative credit
society ltd., paradeep
Section 28 (1-b)-
The expiratiori of the period of four years shall operate as a dissolution
of the Committee and thereupon;
(i) The members including the Pr esident and Vice-Pr esident of the
Committee shall be deemed to have vacated their officer;
(ii) if the election of a new commi ttee is not completed by the date of
such dissolution, the management of the Society shall vest with the chairman,
Paradeep Port Trust and upon such vesting the Chairman or any Officer of the
Paradeep Port Trust authorised by him in that behalf in writing shall manage
the affairs of the society and if necessary take all or any policy decision including
admission of members in relation to the society and constitute the Committee
in accordance with the provisions of this Act, Rules and the bye-laws within a
period of six months from the date of Such dissolution.
(2) 2[(a) Subject to the pr ovisions of this Act, the Commi ttee of a
Society, excluding the member under sub-section (3-b) and
co-opted members under section 31, shall consist of,–
(i) twenty-one members in the case of an Apex Society
including the President and the Vice-President; and
(ii) fifteen members in the case of Centr al Society, a
Primary S ociet y including Lar ge Siz ed Adiv asi
Multipurpose Co-oper ative S ociety, including the
President and the Vice-President of such Society.];
3[(b) In the case of a Lar ge-sized Adiv asi Mul tipurpose Co-
operative Society, in the total number of elected members
of the Committee, there shall be representation from among
the members belonging to the Scheduled Tribes, which shall
be proportional to the ratio between the members belonging
to the Scheduled Tribes and the total numbers of member
of the said Society, not less than two third, so however that
1. Inserted by Orissa Act 11 of 2002, dated 28.10.2002, w.e.f. 29.06.2002.
2. Inserted by Orissa Act 1 of 2013, dated 30.01.2013.
3. Inserted by Orissa Act 10 of 2011, dated 23.09.2011.
(e) In the case of an Apex Society, in the total number of elected
members of the Committee, there shall be representation
from among the members belonging to the S cheduled
Castes, the Scheduled Tribes, the other Backward Classes
including Socially and Educationally Backward Classes and
the Woman which shall be proportional to the ratio between
the members belonging to each said category and the total
number of members of the Electoral College referred to in
clause (ii-a) of sub-section (1) of section 28-A, so that among
each of the said S cheduled Castes, the Scheduled Tribes,
the Other B ackw ard Classes including S ocial ly and
Educationally Backward Classes of members, there shall be
representation of woman which shall be proportional to the
ratio between the woman members belonging to each said
category in the said Electoral College and the total number
of the members of the category in that Electoral College :
Provided that, sa ve as pr ovided in the af oresaid clauses ther e
shall be no bar for the members belonging to the said reserved categories
to contest the election against the r emaining seats in the Managing
Committee of the Primary, Central and Apex Societies.
1[Provided further that a Society shall provide reservation of one
seat for the Scheduled Castes or the Scheduled Tribes and two seats for
women to the Commi ttee consisting of individuals as members and
having members from such class or category of persons.]
(f) Notwithstanding anything contained in this sub-section,–
(i) In the event of the seats in the Committee reserved
for Women, Scheduled Castes, Scheduled Tribes and
Other B ackward Classes including S ocial ly and
Educationally Backward Classes remain unfilled in any
election of a Primary , Central or Apex S ociety, the
Committee of the Society shall co-opt. the required
number of such categories of members from among
the members of the Primary Society, or as the case
may be, from among the members of the Elector al
College of the Centr al or Apex S ociety, and for the
purpose of making such co-option the v acancies in
the unfilled seats r eserved for the said categories
shall not invalidate the constitution or functioning of
the Committee, if otherwise i t would be ha ving a
quorum;
(ii) the term of of fice of every such co-opted member
shall be co-terminus with the other members of the
Committee.
1. Substituted by Orissa Act 1 of 2013, dated 30.01.2013.
1[(2-a) (i) A Society, the Bye-laws and the Committee of which, are not in
conformity with the provisions of this Act as amended by the
Orissa Co-operative Societies (Amendment) Act, 1991 shal l
amend its Bye-laws and notwithstanding anything to the con-
trary in this Act, r econstitute in the manner pr ovided under
this Act, Rules and the Bye-laws its Committee within a period
of 2[eight months] f rom the date of commencement of the
said Amendment Act, so as to bring them in conf ormity with
the provisions as so amended.
(ii) In the event of a Society failing to so amend and reconstitute
within the period mentioned in Clause (i), the R egistrar shall
make such amendment and reconstitution within a period of
four months following the date of expiry of the period men-
tioned in the said Clause.]
1[(2-b) The provisions of Sub-Section (2-a) shall mutatis mutandis apply
to a Society, the Committee of which may be standing dissolved under Section
28 or superseded under Section 32 as on the date of commencement of the
Orissa Co-operative Societies (Amendment) Act, 1991.]
2[(3) No individual shall, whether by himself or as a representative of the
Society, be eligible for being chosen or f or continuing as a member or 3[the
President or as the Vice-President, if any,] of the Committee of a Society, if he,]
(a) is an appl icant to be adjudicated an insolv ent or an undis-
charged insolvent; or
(b) has been sentenced for an offence involving moral turpitude
such sentence not having been reversed; or
(c) is of unsound mind or is a deaf-mute or is suffering from lep-
rosy; or
1[(d) is a family member of any paid employee of the Society :]
Provided that nothing in this clause shall debar -
(i) any person specifically permitted by the Registrar in that behalf
from becoming the Secretary of the Society; or
(ii) the paid employee of societies from becoming members of the
Commi ttee of a societ y composed ex clusiv ely of such
employees; or
1[(e) has failed to pay any amount due, whether in cash or in kind,
to the S ociety, its Financing B ank, or an y other S ociety, on
account of any loan or otherwise within three months from the
date of notice by the Society or the Financing Bank concerned
for payment of such dues :
1. Substituted by Orissa Act 28 of 1991, dated 31.12.1991, w.e.f. 11.09.1992.
2. Substituted by Orissa Act 19 of 1983, dated 11.10.1983.
3. Substituted by Orissa Act 23 of 1994, dated 04.11.1994.
(

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