LexThe punjab co-operative societies act 1961
Punjab · state statute
Open in Lexace · Ask the AI about this act1THE Punsas Co-operative Societies Act, 1961
(Puwas Act 25 or 1961)
[Received the assent of the President of India on the 22nd
June, 1961 and first published for general information in the
Punjab Government Gazette (Extraordinary), Legislative
Supplement, dated the 8th July, 1961.]
1 2 3 4
Year | No. Short title Whether repealed or otherwise
affected by Legislation
1961 | 25 The Punjab | ? Amended by Punjab Act 25 of 1964
Co-operative | > Amended by Punjab Act 4 of 1965
Societies 4 Amended by Punjab Act 26 of 1969 with
Act, 1961. effect from 10th September, 1969
Amended by the Adaptation of Punjab
Laws Order 1970
5Amended by Punjab Act No. 6 of 1974
SAmended by Punjab Act No. 11 of 1975
7Amended by Punjab Act No. 13 of 1977
Samended by Punjab Act No. 3 of 1978
’Amended by Punjab Act No. 8 of 1978
'©amended by Punjab Act No. 15 of 1978
"Amended by Punjab Act No.12 of 1981
'2amended by Punjab Act No.26 of 1981
'3amended by Punjab Act No.19 of 1993
“4Amended by Punjab Act No.15 of 1994
'SAmended by Punjab Act No.01 of 2014
'Samended by Punjab Act No. 14 of 2014
'7Amended by Punjab Act No. 25 of 2014
'’amended by Punjab Act No. 11 of 2017
'Samended by Punjab Act No. 27 of 2017
0Amended by Punjab Act No. 20 of 2021
An Act to consolidate and amend the law relating to co-operative
societies in the State of Punjab.
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See Punjab Government Gazette
(Extraordinary), 1960 page 2040.
See Punjab Government
Gazette (Extraordinary), 1964 pages 935-37.
See Punjab Government
Gazette (Extraordinary), 1965 pages 355-56.
See Punjab Government
Gazette (Extraordinary), 1969 pages 1032-33.
See Punjab Government Gazette
(Extraordinary), 1974 page 449.
See Punjab Government Gazette
(Extraordinary), 1975 page 282.
See Punjab Government Gazette
(Extraordinary), 1977 page 1290.
See Punjab Government Gazette
(Extraordinary), 1978 page 37.
See Punjab Government Gazette
(Extraordinary), 1978 page 386.
See Punjab Government Gazette
(Extraordinary), 1978 page 1370.
See Punjab Government Gazette
(Extraordinary), dated 13th February,
1981, page 249.
See Punjab Government Gazette
(Extraordinary), dated 31st August, 1981,
page 1016.
See Punjab Government Gazette
(Extraordinary), dated 5th March, 1993,
page 621.
See Punjab Government Gazette
(Extraordinary), dated 7th March,1994,
page 304.
See Punjab Government Gazette
(Extraordinary), dated 3rd January, 2014
See Punjab Government Gazette
(Extraordinary), dated 28 July, 2014
See Punjab Government Gazette
(Extraordinary), dated 17 September, 2014
See Punjab Government Gazette
(Extraordinary), dated 21 July, 2017
See Punjab Government Gazette
(Extraordinary), dated 29 December, 2017
See Punjab Government Gazette
(Extraordinary), dated 26 April, 2021
IMPORTANT
ALL AMENDMENTS UPTO 26.04.2021 INCORPORATED IN THE ACT AT APPROPRIATE PLACES
THE PUNJAB COOPERATIVE SOCIETIES ACT 1961
AS AMENDED UPTO 26.04.2021
by PUNJAB GOVT. by Punjab Act No. 20 of 2021
Be it enacted by the Legislature of the State of Punjab in the Seventy Second Year of the
Republic of India as follows :-
CHAPTER 1
PRELIMINARY
SECTION-1
1, Short title, extent and commencement:- (1) This Act
may be called the Punjab Co-operative Societies Act,
1961.
2. It extends to the whole of the State of Punjab.
3. It shall come into force on such date as the Government
may, by notification, appoint.
SECTION-2
2. Definitions:- In this Act, unless the context otherwise
requires, -
11 (a) “associate member” means a member who holds jointly
a share of a co-operative society with others but whose
name does not stand first in the share certificate;]
? [(aa)] “bye-laws” means the registered bye-law for time being
in force;
3[(aaa)] “Chairman” means the Chairman of the Committee;,
(b) "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;
(c) "co-operative society" means a society registered or
deemed to be registered under this Act;
(d) "co-operative society with limited liability” means a
co-operative society, the liability of whose members is
limited by its bye-laws to the amount, if any, unpaid on
the shares individually held by them or to such
1, Inserted by Punjab Act 26 of 1969 ma
2. Re-numbered by the Act ibid 3. Inserted by Act No. 14 of 2014
amount as they may individually undertake to
contribute to the assets of the society, in the event of
its being wound up;
(e) “co-operative society with unlimited liability” means
a co-operative society the liability of whose members
is unlimited for the purpose of contributing jointly and
severally to any deficiency in the assets of the society
in the event of its being wound up;
(f) “Government” means Government of the State of
Punjab;
(g) “member” means a person joining in the application
for the registration of a cooperative society and a
person admitted to membership after such registration
in accordance with the Act, the rules and the bye-laws,
and includes a nominal and an associate member and
the Government when it subscribes to the share-capital
of a society;
[(gg) “net profits” means profits after deduction of
establishment charges, contingent charges, interest
payable on loans and deposits, audit fee and such
other sums as may be prescribed;]
(ggg) “nominal member” means a person admitted to
membership as such after registration in accordance
with the bye-laws;]
(h) “officer” means the president, vice-president,
chairman, vice-chairman, managing director, secretary,
manager, member of committee, treasurer, liquidator,
administrator and includes any other person
empowered under the rules or the bye-laws to give
directions in regard to the business of a cooperative
society ;
1 Inserted by Punjab Act 26 of 1969 a
(i) “prescribed” means prescribed by rules;
(j) “Registrar” means a person appointed to perform the
functions of the Registrar of Co-operative Societies under
this Act *[* * * *];
(k) “producers society” means a society formed with the
object of producing and disposing of goods and
commodities 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 ; 7(****)
(I) "rules" means the rules made under (this Act ; and)
‘I(m) "Public Sector Undertaking" means an organization owned
by the Government or in which the Government has
pervasive control or created by an Act of the Government. ]
5[(m) "Vice Chairman" means the Vice Chairman of the
Committee.]
CHAPTER II
REGISTRATION Or Co-opeRATIVE SOCIETIES
SECTION-3
[3 Registrar and other officers and their powers :-
(1) The Government may appoint a person to be the
Registrar of Co-operative Societies for the State.
(2) To assist the Registrar in his functions under this Act
the Government may appoint such number of Additional
Registrars, Joint Registrars, Deputy Registrars,
Assistant Registrars and other persons with such
designations as it may think fit.
(3) The Government may, by general or special order,
confer on any person appointed under sub-section (2),
all or any of the powers of the Registrar under this
Act.
(1) Omitted by Punjab Act 6 of 1974 (2) Omitted by Punjab Act No. 14 of 2014 I 5
(3) Substituted by Punjab Act No. 25 of 2014 (4) Added by Punjab Act No. 25 of 2014
(5) Added by Act No. 14 of 2014 (6) Substituted by Punjab Act No. 26 of 1969
(4) Every person appointed under sub-section (2) shall
exercise his powers subject to the general
superintendence and control of the Registrar.].
1[(5) Notwithstanding anything contained in this Act, where
any power of the Registrar is exercised by any person
by virtue of the order issued by the Government under
sub-section (3), the order passed or decision made by
such person shall, for the ?[purposes of appeal and
revision], be deemed to be the order or decision of
that person and not of the Registrar]
4. Societies which may be registered:- (1) Subject to
the provisions hereinafter contained, a society which
has its object the promotion of the economic interest
of its members 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 with or without limited
liability.
Provided that, unless Government by general or special
order otherwise directs, the liability of the society of
which a member is a co-operative society, shall be
limited.
(2) The word “limited” or its equivalent in any Indian
language shall be the last word in the name of every
society registered under this Act with limited liability.
SECTION - 5
5. Restrictions on registration :- No society, other than
a society of which a member is a co-operative society,
shall be registered under this Act, unless it consists of
at least ten individuals above the age of eighteen
years.
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1. Added by Punjab Act No. 6 of 1974
2. Substituted by Punjab Act No. 20 of 2021
SECTION - 6
16. Restrictions on holding of shares:- No member other
than the Government, A public sector undertaking or a
co-operative society shall, hold more than such portion
of the share capital of a co-operative society, as may be
prescribed, which in no case shall exceed one-tenth of
the share capital:
[Provided that in case of Urban Co-operative
Bank (UCB), shareholding of an individual member, in
no case, shall exceed five percent of the share capital:;
and]
3[Provided further that] in the case of milk
producers co-operative society engaged in the marketing
of such other perishable commodity, as may be notified
by the Government, from time to time, in this behalf
(hereinafter referred to as 'society dealing in notified
commodity’) registered after the commencement of the
Punjab Co-operative Societies (Amendment) Act, 1978,
no members shall have or claim any interest in the shares
of such society exceeding one thousand rupees.]
SECTION - 7
7. Application for registration :-
T(1) For purposes of registration,an application shall be made
to the Registrar alongwith the Registration Fees, as may
be prescribed, by the Registrar from time to time.]
(2) The application shall be signed,-
(a) in the case of a society of which no member is a
co-operative society, by at least ten persons qualified in
accordance with the requirements of section 5; and
(b) in the case of a society of which a member is a
co-operative society, by a duly authorised person on
behalf of every such society and where all the members
of the society are not co-operative societies by ten other
members, or when there are less than ten other
members, by all of them.
(1) Substituted by Punjab Act No. 25 of 2014 (2) Inserted by Punjab Act No. 20 of 2021 <a
(3) Substituted by Punjab Act No. 20 of 2021 (4) Substituted by Punjab Act No. 20 of 2021
SECTION - 8
(8) 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 proposed bye-laws are not contrary to the
provisions of this Act and the rules; and
(d) that the proposed society has reasonable chances of
success, the Registrar may register the society and its
bye-laws.
(2) When the Registrar refuses to register a society, he
shall communicate the order of refusal, together with
the reasons therefore, to such of the applicants as may
be prescribed.
(3) The application for registration shall be disposed of
by the Registrar within a period of two months from
the date of receipt thereof by him.
SECTION -9
9. Registration certificate :-
Where a society is registered under this Act, the
Registrar shall issue a certificate of registration signed
by him, which shall be conclusive evidence that the
co-operative society therein mentioned is duly
registered under this Act.
SECTION - 10
10. Amendment of bye-laws of a co-operative society :-
(1) No Amendment of any bye-laws of a co-operative
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society shall be valid unless such amendment has been
registered under this Act.
(2) Every proposal for such amendment shall be forwarded
to the Registrar and if the Registrar is satisfied that
the proposed amendment -
(i) is not contrary to the provisions of this Act and the
rules;
(ii) does not conflict with co-operative principles; and
(iii) will promote the economic interests of the members
of the society, he may register the amendment.
(3) The Registrar shall forward to the society, a copy of
the registered amendments together with a certificate
signed 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 co-operative society, he shall
communicate the order of refusal together with
reasons therefore, to the society in the manner
prescribed *[:]
[Provided that no order refusing to register
the amendment shall be passed without giving the
co-operative society an opportunity of being heard:
Provided further that the proposal for
registration of the amendment shall be disposed of by
the Registrar within a period of sixty days from the
date of receipt thereof by him.]
3[10.A. Power to direct amendment of bye-laws of
co-operative society:-
(1) If in the opinion of the Registrar, an amendment of the
(1) Substituted by Punjab Act No. 14 of 2014 (2) Added by Punjab Act No. 14 of 2014 a
(3) Inserted by Punjab Act No. 26 of 1969
bye-laws of a co-operative society is necessary or
desirable in the interest of such a society or of the
co-operative movement, or to bring such bye-laws in
conformity with any provision of the Act or rules made
thereunder, he may by notice in writing, call upon the
society to make such amendment within a period of
three months of the date of service of the notice.
(2) If, within the period specified in sub-section (1), the
co-operative society fails to make such an amendment
the Registrar may after giving the society an
opportunity of making its representation, register the
amendment and issue to the society, a copy of the
amendment together with a certificate signed by him.
(3) The certificate issued under sub-section (2) shall be
conclusive evidence that amendment has been duly
registered and such amendment shall have the same
effect as an amendment registered under section 10.]
SECTION -11
11. Change of name. -(1) A co-operative 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,
and any legal proceedings pending may be continued
by or against the society under its new name.
(2) Where a co-operative society changes its name, the
Registrar shall enter the new name on the register of
co-operative societies in place of the former name and
shall amend the certificate of registration accordingly.
SECTION -12
Change of liability. -(1) Subject to the provisions of
this Act and the rules, a co-operative society may, by
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an amendment of its bye-laws, change the form or
extent of its liability.
(2) When a co-operative 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 any bye-law or contract
to the contrary, 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 have assented to the change.
(4) Any amendment of a bye-law of a co-operative 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
(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.
SECTION -13
13. Amalgamation, transfer of assets and liabilities and
division of co-operative societies : -
(1) Aco-operative society may with the previous approval
of the Registrar and by a resolution passed by a
‘[majority of the members present and voting at the
general meeting at which not less than two third of
members for the time being are present]
2 [(a) transfer its assets and liabilities in whole or in part to
(1) Substituted by Punjab Act No. 14 of 2014 (2) Substituted by Punjab Act 19 of 1993 om
another co-operative society provided the co-operative
society to which the assets and liabilities are to be
transferred also passes a resolution in the aforesaid
manner to accept such assets and liabilities in whole
or in part, as the case may be;]
(b) divide itself into two or more co-operative societies.
(2) Any two or more co-operative societies, may, with the
previous approval of the Registrar and by a resolution
passed by a two-thirds majority of the members,
present and voting at a general meeting of each such
society, amalgamate themselves and form a new
co-operative society.
(3) The resolution of a co-operative 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 co-operative society has passed any such
resolution, it shall give notice thereof in writing to all
its members and creditors and, notwithstanding any
bye-laws or contract to the contrary, any member or
creditor shall, during the period of one month of 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 assented to the proposals
contained in the resolution.
(6) A resolution passed by a co-operative society under
this section shall not take effect until, either-
(a) the assent thereto of all the members and creditors
has been obtained; or
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(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 co-operative 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.
1 1(8) Where the Registrar is satisfied that it is necessary in
the interest of the co-operative society or co-operative
societies that -
(i) any co-operative society be divided to form two or more
co-operative societies; or
(ii) one or more co-operative societies be amalgamated
with any other co-operative society; or
(iii) two or more co-operative societies be amalgamated
to form a new co-operative society, then,
notwithstanding anything hereinbefore contained, the
Registrar may, after consulting the financing
institution, if any, provide for -
(a) the division of that co-operative society into two or
more co-operative societies; or
(b) = the amalgamation of the society or societies -
(i) with any other co-operative society; or
(ii) | to form anew co-operative society;
with such constitution including representation on the
committee, property rights, interests, liabilities, duties
and obligations, as may be specified in the order.
1. Inserted by PunjabAct No. 8 of 1978 fs
(9) No order shall be made under sub-section (8),
unless :-
(a) a copy of the proposed order has been sent under
certificate of posting to the society or societies
concerned and the creditors; and
(b) the Registrar has considered the objections received
from the society or societies concerned or from any
member or creditor of such society or societies within
such period, being not less than fifteen days from the
date of posting of the proposed order, as may be
specified by the Registrar, in this behalf, in the
proposed order.
(10) The Registrar may, after considering the objections
referred to in sub-section (9), make such modification
in the proposed order as he may deem fit and the order
may contain such incidental, consequential and
supplemental provisions as the Registrar may deem
necessary to give effect to the same.
11(11) In case a member or a creditor who had objected to
the proposed order under sub-section (9) remains
aggrieved with the orders of the Registrar, may make
second reference to the Government within thirty days
of passing of such order. The Government shall, after
affording due opportunity of hearing to the members
and creditors who have made second reference to the
Government, annul, modify or uphold the order of the
Registrar passed under sub-section (9). The decision
of the Government in this regard shall be final.]
2 [(12) The order passed by the Registrar under sub-section
(9) or by the Government under sub-section (11), as
the case may be, shall be final and where such an
order involves the transfer of any assets and liabilities,
the same shall, notwithstanding anything contained
1, Substituted by Punjab Act No. 27 of 2017 ra
2. Substituted by Punjab Act No. 27 of 2017
in any law for the time being in force, be a sufficient
conveyance to vest the assets and liabilities in the
society in which these are vested under that order
without any further assurance. ]
SECTION - 14
14. Cancellation of registration certificates of
co-operative societies in certain cases :-
(1) Where the whole of the assets and liabilities of a
co-operative society are transferred to another
co-operative society in accordance with the provisions
of section 13, the registration of the first mentioned
co-operative society shall stand cancelled and the
society shall be deemed to have been dissolved and
shall cease to exist as a corporate body.
1[(1-A) Where one or more co-operative societies are
amalgamated with any other co-operative society by
an order under sub-section (8) of section 13, the
registration of the co-operative society or co-operative
societies, as the case may be, so amalgamated shall
stand cancelled and the society or societies whose
registration stands so cancelled shall be deemed to
have been dissolved and shall cease to exist as a
corporate body on the date of the aforesaid order and
the members thereof shall become the members of
the other co-operative society. ]
(2) Where two or more co-operative societies are
amalgamated into a new co-operative society in
accordance with provisions of section 13, the
registration of each of the amalgamating societies
shall stand cancelled on the registration of the new
society, and each society shall be deemed to have been
dissolved and shall cease to exist as a corporate body.
1. Inserted by Punjab Act 8 of 1978 Ce
(3) Where a co-operative society divides itself into two or
more co-operative societies in accordance with the
provisions of section 13, 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 exit as a corporate
body.
(4) The amalgamation and splitting of co-operative
societies shall not, in any manner whatsoever, affect
any right or obligation of the resulting co-operative
society or societies or render defective any legal
proceedings by or against the co-operative society or
societies and any legal proceedings that might have
been continued or commenced by or against the
co-operative society or the societies, as the case may
be, before the amalgamation or splitting, may be
continued or commenced by or against the resulting
co-operative society or societies.
CHAPTER III
Memeers oF Co-operative SOCIETIES AND THEIR
RIGHTS AND LIABILITIES
SECTION - 15
715. Persons who may become members:- No person
shall be admitted as member of a co-operative society
except the following, namely :-
(a) an individual competent to contract under section 11
of the Indian Contract Act, 1872 (9 of 1872);
(b) any other co-operative society;
(c) the Government;
(d) A Public Sector Undertaking; and
(1) Substituted by Punjab Act No. 25 of 2014 [tel
(e) such class or classes of persons or associations of
persons as may be notified by the Government.]
1715 A. Restrictions on individuals in becoming members
of certain co-operative societies.
(1) No individual shall be admitted as member of a central
or apex society unless such a society has been
exempted by the Registrar in this behalf, by a general
or special order.
(2) The Central and apex societies having individuals as
members on the date of commencement of the Punjab
Co-operative Societies (Amendment) Act, 1969, shall
retire the shares of such individuals within a period of
three years of such commencement in the prescribed
manner.
EXPLANATION - For the purpose of this section, section 26, section
26-B and section 84-A. -
(a) “primary society” means a co-operative society whose
membership consists exclusively of individuals ;
(b) “central society” means a co-operative society whose
membership includes primary societies;
(c) “apex society” means a co-operative society whose
membership includes central societies.]
2[115-B. Provision for admission as member in the case of
certain societies.
(1) Notwithstanding anything to the contrary contained
in this Act :-
(i) every person eligible for admission as a member of a
co-operative society shall be deemed to have been
admitted as a member of the society from the date of
receipt of his application for such admission in the
office of that society;
(1) Inserted by Punjab Act No. 26 of 1969 (2) Inserted by Punjab Act No. 8 of 1978 it
(ii) | the Registrar may, of his own motion or on a complaint
made by the committee of the society or any aggrieved
person, by an order determine that such a person is
not eligible to be a member of the society and on such
determination that person will cease to be a
member:
Provided that no such order shall be made
unless the person already admitted as a member is
given an opportunity of being heard and where an order
is to be made on the basis of a complaint it shall be
made within a period of thirty days of the receipt
thereof.
(2) The provisions of this section shall apply only to a
Primary Land Mortgage Bank and to a co-operative
society having one of its objects advancing of loans
for the purpose of raising of crops or seasonal
agricultural operations.]
SECTION - 16
16. Nominal or associate members :-
(1) Notwithstanding anything contained in clause (d) of
section 15, a co-operative society may admit any
person as a nominal or associate member in
accordance with its bye-laws.
(2) A nominal or associate member shall not be entitled
to any share in any form whatsoever, in the assets or
profit of the co-operative society.
(3) Save as provided in this section, a nominal or associate
member shall have such privileges and rights of a
member and be subject to such liabilities of a member,
as may be specified in the bye-laws of the society.
EL ETO EL — _——
SECTION - 17
17. Member not to exercise rights till due payment
made :- No member of a co-operative society shall
exercise the rights of a member unless he has made
such payments to the society in respect of membership
or has acquired such interest in the society as may be
specified in the bye-laws.
SECTION - 18
(18. Votes of members :- Every member of the co-operative
society shall have one vote in the affairs of the society:
Provided that -
(a) a member who has attended less than two general
meetings out of the last five general meetings; or
(b) a member who has failed to utilize such minimum
services, as may be specified in the bye-laws;or
(c) aperson who has been a member of the cooperative
society for a period of less than nine months,
shall not be eligible to participate in the general
meeting of the co-operative society for election to the
committee of the co-operative society:
Provided further that -
(a) in the case of an equality of votes, the chairman shall
have a second or casting vote;
(b) anominal or associate member shall not have the right
of vote; and
(c) where the Governmentis a member of the co-operative
society, each person nominated by the Government
on the committee shall have one vote.]
SECTION - 19
19. Manner of exercising vote :-
(1) Every member of a co-operative society shall exercise
(1) Substituted by Punjab Act No. 14 of 2014 fs)
his vote in person and no member shall be permitted
to vote by proxy.
1[(2) Notwithstanding anything contained in sub-section (1),
a co-operative society which is a member of another
co-operative society, may, subject to the rules, appoint
one of the members who is eligible to vote on its behalf
in the affairs of that other society.
Explanation :- In case the member appointed by a society, to
vote on its behalf in the affairs of another
society of which such society is a member, gets
elected to the committee of that society, his
term of office shall be co-terminus with the
term of committee of that society.]
SECTION - 20
20. Restriction on transfer of shares or interest :-
The transfer of the share or interest of a member in
the capital of a co-operative society shall be subject
to such conditions as to maximum holding as are
specified in section 6.
SECTION - 21
21. Transfer of interest on death of members:-
(1) On the death of a member, a co-operative society may
transfer the share or interest of the deceased member
to the person nominated, in accordance with the rules,
made in this behalf, or, if there is no person so
nominated, to such person as may appear to the
committee to be the heir or legal representative of
the deceased member, or pay to such nominee, heir or
(1) Substituted by Punjab Act No. 27 of 2017 [20]
legal representative, as the case may be, a sum
representing the value of such member’s share or
interest as ascertained in accordance with the rules
or bye-laws :
Provided that -
(i) In the case of a co-operative society with unlimited
liability, such nominee, heir or legal representative,
as the case may be, may require payment by the
society of the value of the share or interest of the
deceased member ascertained as aforesaid;
(ii) in the case of a co-operative society with limited
liability, the society shall transfer the share or interest
of the deceased member to such nominee, heir or
legal representative, as the case may be, being
qualified in accordance with the rules and bye-laws
for membership of the society, or on his application,
within one month of the death of the deceased member
to any person specified in the application who is so
qualified; and
(iii) | nosuch transfer or payment shall be made except with
the consent of the nominee, heir or legal
representative, as the case may be.
(2) A co-operative society shall, subject to the provisions
of section 31 and unless within six months of the death
of member prevented by an order of competent court,
pay to such nominee, heir or legal representative, as
the case may be, all other moneys due to the deceased
member from the society.
(3) All transfers and payments made by a co-operative
society in accordance with the provisions of this
section shall be valid and effectual against any
demand made upon the society by any other person.
EEO tet
SECTION - 22
22. Liability of past members and estate of deceased
member :- (1) Subject to the provisions of sub-section
(2), the liability of a past member or the estate of a
deceased member of a co-operative society for the
debts of the society as they existed ;-
(a) in the case of a past member, on the date on which he
ceased to be a member ; and
(b) in the case of deceased member, on the date of his
death; shall continue for a period of *[three years]
from such date.
(2) Where a co-operative society is ordered to be wound
up under section 57, the liability of a past member or
of the estate of a deceased member who ceased to be
member or died within two years immediately
preceding the date of the order of winding up, shall
continue until the entire liquidation proceedings are
completed, but such liability shall extend only to the
debts of the society as they existed on the date of his
ceasing to be a member or death, as the case may be.
CHAPTER IV
MANAGEMENT OF CO-OPERATIVE SOCIETIES
SECTION - 23
23. Final authority in a co-operative society :-
(1) The final authority in a co-operative society shall vest
in the general body of members;
2[* * * & ]
3[(1-A) Notwithstanding anything in sub-section (1), where a
co-operative society consists of not less than one
thousand or such greater number of members as may
(1) Substituted by Punjab Act No. 20 of 2021 (2) Proviso Omitted by Punjab Act 26 of 1969 [22]
(3) Substituted by Punjab Act No. 14 of 2014
be prescribed, the society may provide in its bye-laws
for the constitution of a smaller general body
designated as the representative general body, to be
elected in the prescribed manner for a term of not more
than five years, consisting of such number of members
of the society and to exercise all or such of the powers
of the general body as may be specified in the
bye-laws and thereupon any reference in this Act to
the general body or meeting thereof shall be construed
as a reference to the representative general body or
its meetings :
Provided that the representative general body
shall not alter any provision in the bye-laws relating
to its constitution or powers:
Provided further that not less than twenty
percent of the total members of the co-operative
society may requisition a meeting of the general body
for re-constitution of the smaller general body. On
receipt of such requisition, the committee shall call a
meeting of the general body not later than one month
from the date of receipt of such requisition. If in such
a meeting of the general body, it is decided by a
majority of members present and voting to reconstitute
the smaller general body, then the election to such
smaller general body shall be held within forty five
days thereof.]
(2) Notwithstanding anything contained in sub-section
(2) of section 19, each delegate shall have one vote in
the affairs of the society.
Section - 24
124. Annual general meeting :-
Annual general meeting of a co-operative society shall
(1) Substituted by Punjab Act 14 of 2014 ies
be called by the Chairman or in his absence by the
Vice Chairman within a period of six months of close
of the financial year every year for the purpose of -
(a) approval of the programme of the activities of the
society prepared by the committee for the ensuing
year;
(b) election, if any, of the members of the committee other
than nominated members ;
(c) consideration of the audit report and the annual report;
(d) disposal of the net profits ;
(e) appointment of auditor or auditing firm;
(f) information regarding admission and termination of
members;
(g) information regarding amendment of bye-laws
registered in the previous year;
(h) consideration of any inspection report under section
49 of this Act and any inquiry report under section 50
of this Act and action taken thereon by the concerned
authority;
(i) information regarding instructions issued by the
Registrar under rule 45 of the Punjab State Co-operative
Societies Rules, 1963;
(j) information regarding transfer or lease or mortgage
of immovable assets of the co-operative society;
(k) consideration of the loans and advances made to the
members of the committee and their relatives, the
defaults, if any, and the action taken for recovery
thereof; and
(I) consideration of any other matter which may be brought
forward in accordance with the bye-laws :
Provided that if the Chairman or the Vice
Chairman, as the case may be, fails to hold an annual
general meeting within the specified period, he shall,
after affording an opportunity of being heard, be liable
to be removed from the office after the expiry of the
specified period:
Provided further that in such a case the
Registrar shall hold such meeting either by himself or
through an officer authorized by him and such meeting
shall have the same effect as if it was convened by
the Chairman or Vice Chairman himself:
Provided further that where the committee of
any co-operative society has divided the area of
operation of the society into zones in the manner laid
down in sub-section (1-A) of section 26, election of
the members of the committee may not be held in
general meeting.]
SECTION - 25
25. Special general meetings :-
(1) The committee of a co-operative society may, at any
time call a special general meeting of the society and
shall call such meeting within one month after the
receipt of a requisition in writing from the Registrar or
from such number of members or a proportion of the
total number of members, as may be provided in the
bye-laws.
(2) If a special general meeting of a co-operative society
is not called in accordance with the requisition referred
to in sub-section (1), the Registrar or any person
authorised by him in this behalf shall have the power
to call such meeting and that meeting shall be deemed
to be a meeting called by the committee.
SECTION - 26
Election and nomination of members of committees :-
(1) The members of the committee of a co-operative
society shall be elected in the manner prescribed and
no person shall be so elected unless he is a share
holder of the society:
Provided that the maximum number of
members of the committee of a co-operative society
shall not exceed twenty-one:
Provided further that there shall be reservation
of one seat for the scheduled castes and two seats for
(1) Substituted by Punjab Act 14 of 2014 Ee
women on the committee of every co-operative society
consisting of individuals as members and having
members from such class or category of persons.]
1[(1-A) The committee of any co-operative society may subject
to the approval of the Registrar, divide the area of
operation of the society into zones for the purpose of
election of members of the committee.]
?[(1-B) The term of office of elected members of the committee
and its office bearers shall be five years from the date
of election and the term of office bearers and shall be
co-terminous with the term of the committee:
Provided that the committee may fill a casual
vacancy on the committee by nomination out of the
same class of members in respect of which the casual
vacancy has arisen, if the term of office of the
committee is less than half of its original term:
Provided further that such casual vacancy shall
be filled in a meeting of the committee held in the
presence of a nominee of the Registrar.]
3[(1-C) Each committee shall, ninety days before the expiry
of its term, make arrangements for the constitution of
anew committee in accordance with the provisions of
this Act and rules and bye-laws made thereunder.]
4[(1-D) | Where any committee has ceased to hold office and
no committee has been constituted in accordance with
the provisions of this Act and rules and bye-laws made
Substituted by Punjab Act 6 of 1974, section-4.
Section 5 of Punjab Act No. 6 of 1974 reads as under :-
validation "Nothwithstanding any judgment, decree or order of any court or other
authority, any appointment, reappointment or continuance of an Administrator
beyond a period of six months ordered at any time after 1st January, 1973, and
before the commencement of the Punjab Co-operative Societies (Amendment)
Ordinance, 1973, shall be deemed to be as valid and effective as if the same
had been made under the provisions of sub-section (1-D) of section 26 as
substituted by the Punjab Co-operative Societies (Amendment) Act, 1974 and
accordingly no act done or order passed by such Administrator shall be
called in question merely on the ground that his appointment, reappointment
or continuance was not made in accordance with law."
(1) Inserted by Punjab Act 26 of 1969 w.e.f. 10.9.1969 fee
(2) Substituted by Punjab Act 14 of 2014 (3) Inserted by Punjab Act 26 of 1969 w.e-f. 10.9.1969
(4) Inserted by Punjab Act 6 of 1974
thereunder, the Registrar may, by an order in writing
appoint a Government employee as an Administrator
for such period as may, from time to time, be specified
in the order and the Administrator shall, before the
expiry of the period of his appointment, arrange for
the constitution of new committee in accordance with
the provisions of this Act and rules and bye-laws made
thereunder ;]
1[Provided that the period for which an
Administrator may be appointed, shall not in case of a
co-operative society carrying on the business of
banking exceed one year and shall not exceed six
months in case of other co-operative society.]
[Explanation : The delay caused in constitution of an elected
committee due to judicial proceedings in civil
courts in this regard, shall be excluded at the
time of computing the period for which an
Administrator is appointed.]
3[(1-E) The provisions of sub-section (3) and sub-section (4)
of section 27 shall apply to the Administrator appointed
under sub-section (1-D) as if the Administrator had
been appointed under that section.]
4[(1-F) Notwithstanding anything contained in this section,
where the bye-laws, of a society so provide, the first
committee may be nominated by the Registrar for a
period of six months extendable upto one year in the
case of a primary society, and for a period of one year
extendable upto three years in case of a central society
or an apex society:
Provided that the Registrar, may make such
changes in the membership of a nominated committee
at the time of each extension, as he may consider
appropriate, subject, however, to the condition that
no mid-term change shall be made during any of the
extended periods.]
(1) Substituted by Punjab Act 14 of 2014 (2) Added by Punjab Act No. 27 of 2017 7
(3) Inserted by Punjab Act 26 of 1969 (4) Substituted by Punjab Act No. 19 of 1993
(2) Notwithstanding anything contained in sub-section (1)
‘[but subject to a ceiling of twenty one members of
the committee]
7[(a) where the Government have subscribed to the share
capital of a co-operative society or has guaranteed
the repayment of the principal of and payment of
interest on debentures issued for loans raised by a
co-operative society, the Government or any person
authorised by it in this behalf shall have the right to
nominate on the committee such number of persons
not exceeding three or one-third of the total number
of members thereof, whichever is less, as the
Government may determine:
Provided that where the Government has
subscribed to the share capital of a co-operative
society to the extent of twenty lacs of rupees or more,
the Government may, notwithstanding anything
contained in the bye-laws of the society °[:]
“(Provided further that the condition of share
capital of twenty lacs of rupees or more mentioned in
the first proviso to clause (a) of sub-section (2) of
section 26 of the Punjab Cooperative Societies Act,
1961, shall not apply in the case of any Central
Co-operative Bank, which has been provided finance
by the Government, the Government of India, the
National Bank for Agriculture and Rural Development
or the Reserve Bank of India and the Government may
appoint aExcerpt shown. Open the full act in Lexace.