LexThe Telangana Co-operative Societies Act, 1964.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA CO-OPERATIVE SOCIETIES ACT, 1964.
(ACT NO.7 OF 1964.)
ARRANGEMENT OF SECTIONS
Sections
CHAPTER I.
PRELIMINARY.
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II.
REGISTRATION OF SOCIETIES.
3. Appointment of Registrar and other persons for
the purpose of this Act.
4. Society which may be registered.
5. Registration with limited or unlimited liability.
6. Registration of a society.
7. Omitted.
8. Registration certificate.
8-A. Renewal of Registration.
9. Society to be a body corporate.
9-A. Restriction and creation of any charge.
9-B. De-Registration of a society.
9-C. Appointment and Powers of the Official
Assignee.
10. Change of name of society.
11. Change of liability.
12. Transfer of assets and liabilities, division,
amalgamation and conversion of society.
2 [Act No. 7 of 1964]
12-A. Special provisions in respect of certain
Societies.
13. Exercise of option by members and creditors.
14. Effect of transfer, division and amalgamation.
15. Omitted.
15-A. Identification of viability of societies and
consequences thereof.
16. Amendment of bye-laws of a society.
17. Partnership of societies.
18. Classification.
CHAPTER III.
MEMBERS AND THEIR RIGHTS AND
LIABILITIES.
19. Eligibility for membership.
20. Associate Member.
20A. Validation.
21. Disqualification for membership of society.
21-A. Disqualification for membership of committee.
21-AA. Cessation of Membership of Committee.
21-B. Cessation of Membership and reinstatement.
21-C. Omitted.
22. Right of members to services by society and
application for redress.
23. Expulsion of members.
24. Member not to exercise rights till payments are
made.
25. Vote and manner of its exercise.
[Act No. 7 of 1964] 3
26. Restriction on holding of shares.
27. Restrictions on transfer of shares or interest.
28. Transfer of interest on death of member.
29. Liability of past member and estate of deceased
member.
CHAPTER IV.
MANAGEMENT OF SOCIETIES.
30. Ultimate authority of a society.
30-A. Constitution of supervisory council.
31. Constitution of Committee.
31-A. Powers and functions of the committee.
31-B. …
32. General meetings and committee meetings.
32-A. Omitted.
32-B. Devolution of the powers and functions of the
President or Vice-president.
33. Nominee of the Government on the committee.
34. Supersession of the committee.
34-A. Motion of no-confidence in the President and
Vice-President of Committee.
CHAPTER V.
RIGHTS AND PRIVILEGES OF SOCIETIES.
35. First charge of a society on certain movable
assets of a member for the amount due by him.
36. Charge on the immovable property of a member
for the loans borrowed.
37. Deduction from salary or wages.
4 [Act No. 7 of 1964]
38. Charge and set off in respect of shares or
interest of members in the capital, etc., of a
society.
39. Share or interest, etc., not liable to attachment.
40. Right to set of where a registered society
purchases immovable property at a sale under
the Telangana Revenue Recovery Act, 1864 for
any amount due to it.
41. Exemption from certain taxes, duties and fees.
42. Exemption from compulsory registration of
instruments.
CHAPTER VI.
PROPERTIES AND FUNDS OF SOCIETIES.
43. State aid to societies.
43A. Conversion into a Society or Company.
44. Funds other than net profits not to be divided
among members.
44-A. Constitution and utilization of Cooperative
Education Fund.
45. Allocation of funds/disposal of profits.
46. Investment of funds.
47. Restrictions on borrowings and loans.
48. Transactions with non-members.
49. Provident Fund.
CHAPTER VII.
AUDIT, INQUIRY, INSPECTION AND
SURCHARGE
50. Audit.
51. Inquiry.
[Act No. 7 of 1964] 5
52. Inspection.
53. Inspection of books by financing bank or federal
society.
54. Rectification of defects in audit, inquiry or
inspection.
55. Power to summon and examine documents and
persons, etc.
55-A. Maintenance of such accounts and books.
56. Costs of inquiry and inspection.
57. Society to pay certain expenses.
58. Payment of fees to the Government for services
rendered to a person or society.
59. Suspension of officer or servant of society.
60. Surcharge.
CHAPTER VIII.
SETTLEMENT OF DISPUTES.
61. Disputes which may be referred to the Registrar.
62. Action to be taken by the Registrar on such
reference.
63. Powers of financing bank to proceed against
members of a society for recovery of moneys
due to it from such society.
CHAPTER IX.
WINDING UP AND CANCELLATION OF
REGISTRATION OF SOCIETIES.
64. Winding up of societies.
65. Appointment of Liquidator.
66. Power of the Liquidator.
6 [Act No. 7 of 1964]
67. Restriction on alienation of property by a
member of a society under winding up.
68. Cancellation of registration of a society.
69. Restoration of a society wound up.
69A. Termination of liquidation proceedings.
69B. Disposal of surplus assets.
CHAPTER X.
EXECUTION OF DECISIONS, DECREES AND
ORDERS.
70. Power of the Registrar to recover certain amount
by attachment and sale of property and
execution orders.
70A. Execution of non-monetary orders etc.
71. Recovery of debts.
72. Registrar or person authorized by him to be a
Civil Court for certain purposes.
73. Attachment of property before decision or order.
74. Recovery of amounts due to Government.
CHAPTER XI.
APPEALS, REVISION AND REVIEW.
75. Constitution of Co-operative Tribunal.
76. Appeal.
77. Revision.
78. Review.
[Act No. 7 of 1964] 7
CHAPTER XII.
OFFENCES AND PENALTIES.
79. Punishment for furnishing false return or
information, failure to furnish information or
failure to comply with directions/ orders.
79A. Punishment for corrupt practices.
80. Prohibition of the use of the word ‘co-operative’
or its equivalent.
81. Punishment for failure to give effect to decision
or order.
82. Punishment for offences not otherwise provided
for.
83. Cognizance of offences.
83A. Omitted.
83B. Presumption as to commission of offences in
certain cases.
83C. Presumption as to statement.
CHAPTER XIII.
AGRICULTURAL DEVELOPMENT BANKS.
84. Definitions.
85. Application of Chapter to Agricultural
Development Banks.
86. Appointment of trustee and his powers and
functions.
87. Trustee to be a corporation sole.
88. Issue of debentures by the Board.
89. Charge of debenture holders on certain
properties.
8 [Act No. 7 of 1964]
90. Guarantee by Government of principal of and
interest on, debentures.
91. Other guarantee by Government.
92. Priority mortgage over certain claims.
93. Right of an Agricultural Development Bank or of
the Central Agricultural Development Bank to
purchase mortgaged property.
94. Mortgages created in favour of an Agricultural
Development Bank to stand vested in Central
Agricultural Development Banks.
95. Power of an Agricultural Development Bank to
receive moneys and grant discharges.
96. Right of an Agricultural Development Bank to
pay prior debts of mortgagor.
97. Powers of an Agricultural Development Bank to
advance loans and to hold lands.
98. Mode of dealing with applications for loans.
99. Order granting loan conclusive of certain
matters.
100. Recovery of loans by Agricultural Development
Bank.
101. Recovery of loans on certificate by Registrar.
102. Collector to make recoveries during a certain
period.
103. Distraint and sale.
104. Power of sale when to be exercised.
105. Powers of Agricultural Development Bank where
mortgaged property is destroyed or security
becomes insufficient.
[Act No. 7 of 1964] 9
106. Power of Board or Trustee to distrain and sell all
property, etc.
107. Title of purchaser not to be questioned on
ground of irregularity, etc.
108. Mortgage not to be questioned on insolvency of
mortgagor.
109. Appointment of Receiver and his powers.
110. Mortgagors powers to lease.
111. Registration of documents executed on behalf of
an Agricultural Development Bank or of the
Central Agricultural Development Bank.
112. Delegation of certain powers by Board.
113. Sections 102, 103 and 104 of the Transfer of
Property Act, 1882, to apply to notices under this
Chapter.
114. Mortgages created by managers of Joint Hindu
family.
114-A. Omitted.
114-B. Omitted.
115. Power of the Board to supervise and make
regulations.
CHAPTER XIII-A.
Eligible Co-operative Banks.
115-A. Definitions.
115-B. Special provisions applicable to eligible Co-
operative Banks.
10 [Act No. 7 of 1964]
CHAPTER XIII-B
SPECIAL PROVSIONS APPLICABLE TO CO-
OPERATIVE CREDIT SOCIEITIES IDENTIFIED
UNDER REVIVAL PACKAGE.
115-C. Definitions.
115-D. Special provisions applicable to Co-operative
Credit Societies.
CHAPTER XIV.
MISCELLANEOUS.
116. Powers of Registrar to appoint supervisory staff.
116-A. Constitution of common cadre of employer for
certain societies.
116-AA. Omitted.
116-B. Power of Government to give directions to
societies, etc.
116-C. Staffing pattern.
117. Delivery of possession of records and properties
of the society.
118. Address of a Society.
119. Copy of Act, Rules, Bye-laws etc., to be open to
inspection.
120. Powers to summon witnesses and requisition
documents.
121. Bar of jurisdiction of Court.
122. Power to exempt societies from condition of
registration.
123. Power to exempt class of societies.
124. Register of members.
125. Proof of entries in society’s books.
[Act No. 7 of 1964] 11
126. Notice necessary in suits.
127. Acts of societies not to be invalidated by certain
defects.
128. Protection of acts done in good faith.
129. Certain Acts not to apply.
129A. Officers and employees to be public servants.
130. Power to make rules.
131. Power of Government to give directions.
131-A. Omitted.
132. Repeal and savings.
133. Act to override other laws.
134. Power to remove difficulties.
THE TELANGANA CO-OPERATIVE SOCIETIES ACT, 1964.1
ACT No.7 OF 1964.
CHAPTER I
PRELIMINARY.
1. (1) This Act may be called the 2Telangana Co-operative
Societies Act, 1964.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall come into force on such date 3 as the
Government may by notification in the Telangana Gazette,
appoint.
2. In this Act, unless the context otherwise requires,-
2[(a) (i) ‗authorised person‘ means a person referred to
as such in section 79 of this Act;
(ii) ‗bye-laws‘ means the registered bye -laws for the
time being in force;
(b) ‗committee‘ means the g overning body of a
Cooperative Society by whatever name called, to which the
1. The Andhra Pradesh Co -operative Societies Act, 1964 received the
assent of the President on the 24 th February, 1964. The said Act in force
in the combined State, as on 02.06.2014, has been adapted to the State
of Telangana, under section 101 of the Andhra Pradesh Reorganisation
Act, 2014 (Central Act 6 of 2014) vide. the Andhra Pradesh Co -operative
Societies Act, 1964 (Telangana Adaptation) Order, 2016, issued in
G.O.Ms.No.53, Agriculture & Co -operation (Coop.II) Department, dated
20.05.2016.
2. Substituted by G.O.Ms.No.53, Agriculture & Co -operation (Coop.II)
Department, dated 20.05.2016.
3. Came into force on 1st August, 1964.
Definitions.
Short title, extent
and
commencement.
2 [Act No.7 of 1964]
direction and control of the management of the affairs of a
Society is entrusted to;
(c) ‗Co-operative year / Financial Year ‘ means, the
period commencing on the 1st day of April of every year and
ending with the 31st day of March of the succeeding year;]
(d) ‗dividend‘ means a share of the profits of a society
divided among its members in proportion to the share
capital held by each of them;
(e) ‗federal society ‘ means a society to which similar
class of societies are affiliated;
4[(e-i) ‗multi-state cooperative society ‘ means a society
with objects not confined to one State and registered or
deemed to be registered under any law for the time being in
force relating to such Co-operatives;]
5[(f) ‗financing bank‘ means a society, the main object of
which is to assist any affiliated or other society by giving
loans or advancing moneys; and includes any scheduled
bank as defined in the Reserve Bank of India Act, 1934 and
such other body corporate or financial institution as may be
notified by the Government, from time to time, which gives
financial or other aid to a society;]
(g) ‗general body ‘ in relation to any society means all
the members of the society;
(h) ‗general meeting ‘ means a meeting of the general
body of a society;
(i) ‗Government‘ means the State Government;
4. Inserted by G.O.Ms.No.53, Agriculture & Co-operation (Coop.II)
Department, dated. 20.05.2016.
5. Substituted by Act No.19 of 1976.
Central Act 2 of 1934.
[Act No.7 of 1964] 3
6[(i-a) ‗gram panchayat ‘ means a gram panchayat
constituted under section 4 of the 7Telangana Panchayat Raj
Act 1994;]
8[(j) ‗member‘ means a member of a society, and
includes an associate member;]
6[(j-i) ‗9Mandal Praja Parishad‘ means a 9Mandal Praja
Parishad constituted under section 148 of the 7Telangana
Panchayat Raj Act, 1994;
(j-ii) ‗Municipal Corporation ‘ means a Municipal
Corporation constituted under the relevant law for the time
being in for ce relating to the Municipal Corporations in the
State;
(j-iii) ‗Municipal Council ‘ means a Municipal Council
constituted under section 5 of the 10Telangana Municipalities
Act, 1965;]
11[(j-iv) ‗near relative ‘ means father, mother, brother,
sister, husband, wife, son, son -in-law, daughter, daughter -
in-law, father -in-law, mother -in-law, brother -in-law, si ster-in-
law, nephew and niece;]
(k) ‗officer‘ includes a person elected or appointed by a
society to any office of such society according to its bye-
laws and a president, vice -president, chairman, vice-
chairman, secretary, assistant secretary, treasurer,
manager, member of committee, liquidator or an y other
6. Inserted by Act No.4 of 1995.
7. Also see for relevant provision in Act No.5 of 2018.
8. Substituted by Act No.6 of 2005.
9. Substituted by Act No.41 of 2006.
10. Adapted by G.O.Ms.No.142, Municipal Administration & Urban
Development (A2) Department, dated 29.10.2015.
11. Added by Act No.6 of 2005.
Act 13 of 1994.
Act VI of 1965.
Act 13 of 1994.
4 [Act No.7 of 1964]
person elected or appointed under this Act, the rules or the
bye-laws, to give directions in regard to the business of the
society;
12[(k-i) ‗office bearer ‘ means a President / Chairperson ,
Vice-President / Vice-Chairperson, Secretary or Treasurer of
a Co-operative society and includes any other person to be
elected by the Board of any Co-operative society;]
(l) ‗prescribed‘ means prescribed by rules made under
this Act;
(m) ‗rebate‘ means a share of the profits of a society
divided among its members in proportion to the volume of
business done by each of them with the society;
13[(n) ‗Registrar‘ means the Central Registrar appointed
by the Central Government in relation to the multi -State
co-operative societies, the Registrar of Co -operative
societies appointed under section 3 [1] in relation to this Act
as the case may be and includes any other person on whom
all or any of the powers of the Registrar under this Act are
conferred;]
(o) ‗rules‘ means the rules made under this Act;
13[(p) ‗society‘ means a co-operative society registered /
deemed to have been registered under this Act / Societies
registered under 14Telangana Mutually Aided Cooperative
Societies Act and received land from Government either free
12. Inserted by G.O.Ms.No.53, Agriculture & Co -operation (Coop.II)
Department, dated. 20.05.2016.
13. Substituted by G.O.M s.No.53, Agriculture & Co -operation (Coop.II)
Department, dated. 20.05.2016.
14. Adapted by G.O.Ms.No.28, Agriculture & Co -operation (Coop.II)
Department, dated. 19.04.2016.
[Act No.7 of 1964] 5
of cost or at subsidized price or at market rate and thus
deemed to have been registered under this Act;]
(q) ‗Society with limited liabilit y‘ means a society in
which the liability of its members for the debts of the society,
in the event of its being wound up, is limited by its bye-laws-
(i) to the amount, if any, unpaid on the shares held by
each of them; or
(ii) to such amount as they may undertake to
contribute to the assets of the society;
(r) ‗society with unlimited liability ‘ means a society, the
members of which are in the event of its being wound up,
jointly and severally liable for and in respect of, all its
obligations and to contribute to any defic it in the assets of
the society;
(s) ‗State‘ means the State of 15Telangana;
16[(s-i) ‗State Act ‘ means any law made by the
Legislature of a State;
(s-ii) ‗State level co -operative society ‘ means a co -
operative societ y having its area of operation extending to
the whole of the State]
(t) ‗Tribunal‘ means a Tribunal constituted under section
75 and having jurisdiction;
15. Substituted by G.O.Ms.No.53, Agriculture & Co -operation (Coop.II)
Department, dated. 20.05.2016.
16. Inserted by G.O.Ms.No.53, Agriculture & Co -operation (Coop.II)
Department, dated. 20.05.2016.
6 [Act No.7 of 1964]
17[(u) ‗18Zilla Praja Parishad‘ means a 18Zilla Praja
Parishad constituted under section 177 of the 19Telangana
Panchayat Raj Act, 1994.]
20[(2-A) The Government, may, from time to time, take
necessary steps for making provisions with respect to the
incorporation, regulation and winding up of co -operative
societies based on the principle of voluntary formation,
democratic member control, member economic
participation and autonomous functioning as deemed
necessary.]
CHAPTER II.
REGISTRATION OF SOCIETIES.
3. (1) There shall be appointed a Registrar of Co -operative
Societies for the State and as many other persons as the
Government think fit for the purposes of this Act.
(2) Every other person appointed under sub-section (1)
shall exercise under the general superintendence of the
Registrar, such powers of the Registrar under this Act as the
Government may, from time to time, confer on him.
4. 21[(1)] A society which has, as its main object, the
promotion of the economic interests of its members in
accordance with the co -operative principles , 22[as may be
prescribed] or a society established with the object of
facilitating the operation of such a society, may be
registered under this Act.
17. Inserted by Act No.4 of 1995.
18. Substituted by Act No.41 of 2006.
19. Also see for relevant provision in Act No.5 of 2018.
20. Inserted by G .O.Ms.No.53, Agriculture & Co -operation (Coop.II)
Department, dated. 20.05.2016.
21. Section 4 numbered as 4 (1) by Act No.21 of 1985.
22. Inserted by Act No.22 of 2001.
Act 13 of 1994.
Appointment of
Registrar and
other persons for
the purpose of
this Act.
Society which
may be
registered.
[Act No.7 of 1964] 7
23[(2) Every society registered or deemed to be
registered under this Act shall function subject to such
directions as m ay be issued by the Registrar, from time to
time, in the interests of the co -operative movement or the
public interest or in order to prevent the affairs of the society
from being conducted in a manner detrimental to the
interests of the members or of the depositors or creditors
thereof, and the society shall comply with such directions.]
5. (1) A society may be registered with limited or unlimited
liability, but the liability of a society of which any member is
a society shall be limited:
Provided that where a financing bank becomes a
member of a society with unlimited liability, the liability of
that society may continue to be unlimited.
(2) The liability of the Government, a financing bank or a
federal society having shares in a society, whether with
limited or unlimited liability shall be limited to the share
capital subscribed by the Government, such financing bank
or federal society, as the case may be.
(3) The name of every society shall contain the
expression ―Co-operative‖ or its equivalent in any Indian
language and in the case of every society with limited
liability, the name of the society shall also have its suffix the
expression ―Limited‖ or its e quivalent in any Indian
language.
6. (1) 24[An application for the registration of a society]
shall be made to the Registrar in such form and with such
particulars as may, from time to time, be specified by the
Registrar.
23. Inserted by Act No.21 of 1985.
24. Substituted by Act No.22 of 2001.
#. Omitted by Act No.22 of 2001.
Registration with
limited or
unlimited liability.
#[xxx] registration
of a society.
8 [Act No.7 of 1964]
(2) Every such application shall conform to the following
requirements, namely:-
25[(a) the application shall be accompanied by:-
26[(i) The original and one copy of the proposed
bye-laws of the society as adopted by the applicants along
with a proof of identity and proof of residence and any other
proof of all the applicants as prescribed by the Registrar;]
(ii) a true copy of the minutes of the meeting at
which the bye -laws were adopted duly signed by the
applicants;
(iii) a sworn statement from each applicant that he
is a member of a different family and particulars furnished in
the application from prescribed are true to the best of his
knowledge and belief;]
(b) where all the applicants are individuals, the
number of applicants shall not be less than 27[twenty one],
each being a member of a different family, and everyone of
them shall possess eligibility to become a member as
required under sub-section (1) of section 19;
Explanation:-For the purposes of this clause, the
expression ―member of a family ‖ means a wife, husband,
father, mother, grand-father grand-mother, step-father, step-
mother, son, daughter, step -son, step-daughter, grand-son,
grand-daughter, brother, sister, half -brother, half-sister, and
wife of brother or half-brother;
25. Substituted by Act No.22 of 2001.
26. (2)(a)(i) substituted by G.O.Ms.No.53, Agriculture & Co -operation
(Coop.II) Department, dated. 20.05.2016.
27. For ―ten‖, substituted ―twenty one‖ by G.O.Ms.No.53, Agriculture &
Co-operation (Coop.II) Department, dated. 20.05.2016.
[Act No.7 of 1964] 9
(c) where th e objects of the society include the
raising of funds to be lent to its members and where all the
applicants are individuals, the applicants shall reside or own
immovable property in the same town, village or group of
villages or belong to the same class o r pursue the same
occupation:
Provided that in the case of a society with unlimited
liability, the members thereof shall reside in the same town,
village or group of villages;
28[(cc) where the objects of the Society include
production and sales activity by supplying raw -material to
members for production of finished products and where all
applicants are individuals such applicants shall reside in the
area of operations proposed for the society and belong to
the same class or pursue the same occup ation; and it shall
also be competent for the Government to specify by order
such other class of societies the applicants of which shall
reside in the area of operations as aforesaid and belong to
the same class or pursue the same occupation;]
(d) the application shall be signed-
(i) if the applicants are individuals, by every one of
such applicants; and
(ii) if the applicant is a society, by a member duly
authorised in this behalf by such society.
(3) Where any question arises under clause (c) of sub-
section (2) as to the residence, ownership, group of villages,
class or occupation, such question shall be decided by the
Registrar, whose decision thereon shall, subject to the
provisions of section 76, be final.
28. Inserted by Act No.28 of 1988.
10 [Act No.7 of 1964]
29[(4) Where the Registrar is satisfied,-
(a) that the application conforms to the requirements
laid down by this Act and the rules made there under;
(b) that the objects of the Society seeking registration
are in accordance with section 4;
(c) that such Society is likely to b e economically
sound and that its registration may not have an adverse
effect on the development of the Co-operative movement;
(d) that the proposed bye-laws are not contrary to the
provisions of this Act and the rules made there under; and
(e) that the applicants are aware of the objects of the
society as specified in section 4 of the Act and contents of
the proposed bye -laws, he may register the Society and its
bye-laws within such time as may be prescribed.
(5) Where the Registrar is not so sati sfied, he shall
communicate by registered post the order of refusal
together with the reasons thereof to the applicants within
such time as may be prescribed.]
30[7. [xxx]]
8. Where a society is registered, the Registrar shall issue a
certificate of registration signed and sealed by him which
shall be conclusive evidence that the society mentioned
therein, is a society duly registered under this Act, unless it
is proved that the registration of the society has been
cancelled.
29. Added by Act No.22 of 2001.
30. Omitted by Act No.22 of 2001.
Registration
certificate.
[Act No.7 of 1964] 11
31[8-A. Every society which has been issued a certificate of
registration under section 8 of this Act and it shall be
renewed for every 5 years. The renewal by Registrar is
subject to the satisfaction that,-
(a) the s ociety updated its accounts and got them
audited as per the provisions of this Act;
(b) the society conducted e lections as per the
provisions of this Act;
(c) the society not violated any pr ovisions of Act, Rules,
Bye-laws;
(d) a ll members underwent member education
programme and certified as such by the Telangana State
Co-operative Union:
Provided that if the society fails to renew its registration
under this section, the Registrar may on his own initiate
necessary action for compliance. In case of non
compliance, Registrar may cancel the certificate of
registration issued to the society U/s. 8 of this Act and
initiate winding up proceedings U/s.64(2) of this Act:]
32[Provided further that provisions of this section are not
applicable to the elig ible Coop. Banks as defined in s ection
115-A of this Act and Coop. Credit Society as defined under
section 115-C.]
9. The registration of a society shall render it a body
corporate by the name under which it is registered having
perpetual succession and a common seal. The society is
31. Section 8 -A with marginal heading inserted by G.O.Ms.No.53,
Agriculture and Cooperation (Coop-II) Department, dated 20.05.2016.
32. Added by G.O.Ms.No.56, Agriculture and Cooperation (Coop -II)
Department, dated 28.05.2016.
Renewal of
Registration.
Society to be a
body corporate.
12 [Act No.7 of 1964]
entitled to acquire, hold and dispose property to enter into
contracts on its behalf, to i nstitute and defend suits and
other legal proceedings and to do all other things necessary
for the purposes for which it was constituted.
33[9-A. Where the Government extends State aid as specified
under section 43 of the Act, such society shall not dispose
of or create any charge over its property without the prior
approval of the Registrar and the consent of the federal
society or financing bank concerned as the case may be.
9-B. (1) The Registrar shall, at any time, of his own motion
and after giving the society an opportunity of making its
representation, if any, by order, de -register a society which
is in existence for a period not exceeding four years from the
date of its registration,-
(i) where the membership of the society falls short of
the minimum number prescribed for registration of such
society; or
(ii) where the society has not commenced working
within the prescribed period or has ceased to work; or
(iii) where in the opinion of the Registrar, the society
is conducting its affairs in contravention of the cooperative
principles or in violation of the provisions of the Act, rules
and bye-laws made there under or in a manner detrimental
to the interest of its members or the promotion of the object
for which it has been registered; or
(iv) where the society has been registered by fraud or
misrepresentation of facts.
33. 9 -A, 9 -B and 9 -C with marginal heading inserted by Act No.22 of
2001.
Restriction and
creation of any
charge.
De-Registration of
a society.
[Act No.7 of 1964] 13
(2) A society, de -registered under sub -section (1), shall
cease to conduct its business fort hwith from the date of
such order.
9-C. (1) Where a society is de -registered under section 9 -B,
the Registrar shall, appoint an official assignee for winding
up of the affairs of the society and fix his remuneration in the
manner prescribed.
(2) On the appointment of an official assignee, the
property, assets, effects and actionable claims or liabilities
of the society as on the date of appointment shall vest in or
devolve on the official assignee. He s hall take such steps as
he may deem necessary or expedient to prevent loss or
deterioration of, or damage to, such property, assets, effects
and actionable claims.
(3) Subject to the control of the Registrar, the official
assignee shall have the power,-
(a) to institute and defend suits and other legal
proceedings on behalf of the society by the name of his
office;
(b) to realise the assets of the society, by sale or
otherwise;
(c) to determine, from time to time, the contribution to
be made or remaining to be made and the debts due by the
members or past members or by the estates or nominees,
heirs or legal representatives of deceased members or by
any officers or former officers to the society;
(d) to investigate all claims against the society, and
subject to the provisions of this Act, to decide questions of
priority arising between claimants;
Appointment and
Powers of the
Official Assignee.
14 [Act No.7 of 1964]
(e) to pay claims against the society including interest
upto the date of winding up according to their respective
priorities, if any, in full or rateably, as the assets of the
society may permit, the surplus, if any, remaining after
payment of the claims, being applied in payment of interest
from the date of such order of winding up at a rate fixed by
him but not exceeding the contractual rate in any case;
(f) to determine by what persons and in what
proportion the costs of liquidation are to be borne;
(g) to determine whether any person is a member,
past member or nominee of deceased member;
(h) to give such directions in regard to the collection
and distribution of the assets of the society as may appear
to him to be necessary for winding up the affairs of the
society;
(i) with the previous approval of the prescribed
authority, to make any compromise or arrangement with
creditors or persons claiming to be creditors or having or
alleging to have any claim present or future, whereby the
society may be rendered liable; and
(j) with the previous approval of the prescribed
authority, to compromise all calls or liabilities to any calls
and debts and liabilities capable of resulting in debts and all
claims present or future, certain or contingent, subsisting or
alleged to subsist between the society and a contributory or
alleged contributory or other debtor or person
apprehending liability to the society and all questions in any
way relating to or affecting the assets or the winding up of
the society on such terms as may be agreed and take any
security for the discharge of any such call, liability, debt or
claim and give a complete discharge in respect thereof.
[Act No.7 of 1964] 15
(4) Any sum ordered under this section to be recovered
as a contribution to the assets of a society or as costs of
liquidation may be recovered, on a requisition being made
in this behalf by the Registrar to the Collector in the sa me
manner as arrears of land revenue.
(5) Save as provided in sub -section (4), orders made
under this section shall, on application, be enforced by any
Civil Court having local jurisdiction in the same manner as a
decree of such Court.
(6) The official assignee shall continue to exercise his
powers until the affairs of the society are completely wound
up when he shall make a report to the Registrar and deposit
the records of the society in such place as the Registrar may
direct.
(7) The winding up pro ceedings under this section shall
be closed within a period of one year from the date of the
order of de-registration of a society, and the said period
may, at the discretion of the Registrar, be extended from
time to time, so however, that the total perio d does not
exceed two years in the aggregate, and after the expiry of
the said period, it shall be deemed that the winding up
proceedings have been terminated and the Registrar shall
pass an order terminating the winding up proceedings. On
the termination of the winding up proceedings, the official
assignee shall make a report to the Registrar.
(8) Where the affairs of a society have been completely
wound up, after considering the report of the official
assignee under sub -section (6) or sub -section (7), t he
Registrar shall by order in writing cancel the registration of
the society. The society shall cease to exist as a corporate
body from the date of such order.]
16 [Act No.7 of 1964]
10. (1) A society may, by an amendment of its bye-laws,
change its name.
(2) The change of name of a society shall not affect any
rights or obligations of the society, or render defective any
legal proceedings by or against it; and any legal
proceedings which might have been continued or
commenced by or against the society by its former name
may be continued or commenced by its new name.
11. Subject to the provisions of this Act and the rules, a
society may, by a resolution, decide to amend its bye -laws
to change the form or extent of its liability.
12. (1) A society may, 34[xxx] by a resolution decide to-
(a) transfer its assets and liabilities in whole or in part
to any other society which agrees to suc h transfer by a
resolution; or
(b) divide itself into two or more societies; or
(c) convert itself into a society of a class different from
the one to which it belongs.
(2) Any two or more societies may, 34[xxx] by a
resolution, decide to amalgamate themselves and form a
new society:
35[Provided that where a society under sub-section (1) is
a member or two or more societies under sub -section (2)
are members of a federal society or in receipt of assistance
from a financing bank, such societ y or societies shall obtain
prior consent of the federal society or financing bank for any
34. Omitted by Act No.22 of 2001.
35. Added by Act No.22 of 2001.
Change of name
of society.
Change of liability.
Transfer of assets
and liabilities,
division,
amalgamation
and conversion of
society.
[Act No.7 of 1964] 17
resolution under sub -section (1) or sub -section (2) as the
case may be.]
36[(3) Every resolution of a society under sub-section (1)
or sub-section (2) shall be passed at the general meeting by
37[a majority of not less than two -thirds of members present
and voting], and such resolution shall contain all particulars
of the transfer, division, amalgamation or conversi on as the
case may be.]
38[12-A. (1) Notwithstanding anything contained in this Act
or the rules made thereunder or the bye -laws of the
societies concerned or in any other law for the time being in
force, where, in the opinion of the Registrar, a society,-
(a) in which majority of the shares are held, or
(b) to which loan exceeding fifty percent of the total
loan borrowed is advanced, or
(c) in which liabilities by way of guarantee for
borrowing in cluding working capital borrowing exceeding
fifty percent of the total borrowings are undertaken, by the
Government or one or more Government Companies or one
or more corporations owned or controlled by the
Government, or a society in which majority of sha res are
held by one or more of the aforesaid persons or any
combination thereof,-
(i) has become a sick co -operative society and
there is no possibility to rehabilitate it; or
36. Substituted by Act No.22 of 2001.
37. Substituted by Act No.6 of 2005.
38. Section 12 -A with marginal heading substituted by Act No.16 of
2003.
Special provisions
in respect of
certain Societies.
18 [Act No.7 of 1964]
(ii) being in processing, manufacturing or other
industrial sector, has its unit or units lying incomplete or idle
or under utilised for want of funds or for any other reason, or
ceased to undertake its operations, or cannot undertake its
operations in a viable manner; or
(iii) being in marketing, trading, commercial or an y
other sector has ceased to undertake its operations, or
cannot undertake its operations in a viable manner;
and it is necessary in public interest to transfer its assets or
assets and liabilities, in whole or in part, to any other
person, he may make an order to that effect.
(2) (i) The Registrar shall, before forming the opinion
and making the order under sub -section (1), give an
opportunity to the society by calling upon it by notice in
writing in such manner as may be prescribed to state its
objections or make its representations, if any, and consider
the objections or representations, if any, so stated or made.
(ii) It shall be the responsibility of the society to place
the notice received from the Registrar before the general
body convened for the purpose and communicate its
objections or representations, if any, to the Registrar within a
period of four weeks from the date of receipt of the notice
from him:
Provided that the Registrar may receive the
objections or representations, if any, from the society after
the said period of four weeks but not later than five weeks
from the date aforesaid, if he is satisfied that the society was
prevented by sufficient cause from stating its objections or
making its representations, if any, in time.
[Act No.7 of 1964] 19
(3) Where the Registrar has made an order under sub -
section (1), he may appoint the Implementation Secretariat
or any other committee, consultant or adviser having the
requisite expertise or experience to assist and advise him for
the purpose of,-
(i) assessing the value of the assets or the assets and
liabilities, in whole or in part, of the society;
(ii) formulating terms and conditions for transfer of
assets or assets and liabilities, in whole or in part, of the
society;
(iii) calling for tende rs or offers for the assets or
assets and liabilities, in whole or in part, to obtain the best
possible offer;
(iv) evaluating the offers received and identifying the
best offer;
(v) finalizing sale agreement and other documents
relating to the transfer;
(vi) receiving the proceeds from the sale;
(vii) applying the proceeds towards discharge of the
liabilities of the society as per the priorities set out in sub -
section (9);
(viii) providing such other service or assistance as the
Registrar may think it necessary; and
(ix) advising and assisting generally on matters
relating to employees, creditors and other matters
connected with the sale.
20 [Act No.7 of 1964]
(4) Where the best offer for t he assets or assets and
liabilities, in whole or in part, of the society concerned is
identified in the manner prescribed, the Registrar shall,
before approving the best offer and the terms and
conditions of transfer thereof, consult the Government and
the financing bank, if any, to which such society is indebted.
(5) Where the best offer is approved, the Registrar may
make an order directing that the Committee of the society
concerned shall stand dissolved from the date specified in
the order and that the assets or assets and liabilities, in
whole or in part, of the society shall be transferred to the
person submitting the best offer on fulfilment of such terms
and conditions including payment of the purchase price as
may be specified in the order in the manner prescribed.
(6) (i) The Registrar shall, before making the order under
sub-section (5), give an opportunity to the society by calling
upon it by notice in writing in such manner as may be
prescribed to state its objections or make its
representations, if any, and consider the objections or
representations, if any, so stated or made.
(ii) It shall be the responsibility of the society to place
the notice received from the Registrar before the general
body convened for the purpose and communicate its
objections or representations, if any, to the Registrar within a
period of four weeks from the date of receipt of the notice
from him:
Provided that the Registrar may receive the objections
or representations, if any, from the society after the said
period of four weeks but not later than five weeks from the
date aforesaid, if he is satisfied that the society was
prevented by sufficient cause from stating its objections or
making its representations, if any, in time.
[Act No.7 of 1964] 21
(7) On the Registrar making an order under sub-section
(5) and on such order being notified in the 39Telangana
Gazette, the Committee of the society shall stand dissolved
and all members of the Committee including the President
and the Vice President, if any, shall vacate their respectiv e
office from the date specified in the order. The Registrar
shall simultaneously appoint a person or persons, wherever
necessary, to manage the affairs of such society till it is
dissolved.
(8) The person or persons appointed by the Registrar
under sub-section (7) shall transfer the assets or assets and
liabilities, in whole or in part, of the society concerned to the
person submitting the best offer in the manner specified in
the order.
(9) The proceeds realised from the transfer of assets or
assets and liabilities, in whole or in part, of the society
concerned, shall be applied in discharge of the liabilities of
such society in the following order of priority, namely:-
(i) all expenses incurred for preservation and
protection of the assets;
(ii) (a) dues payable to workmen and employees;
(b) debts payable to secured creditors according to
their rights and priorities interse;
(c) dues payable to provident fund or other
authorities which are protected under a statue by a charge
on the assets;
(iii) debts payable to ordinary creditors;
39. Substituted by G.O.Ms.No.53, Agriculture & Co -operation (Coop.II)
Department, dated 20.05.2016.
22 [Act No.7 of 1964]
(iv) share capital contributed by the members of the
society:
Provided that the cases covered under Category (i)
shall have precedence over all other Categories, Category
(ii) shall have precedence over Category (iii) and (iv) and
Category (iii) shall have precedence over Category (iv):
Provided further that the debts specified in each of
the Categories shall rank equally and be paid in full, but in
the event of the amount being insufficient to meet such
debts, they shall abate in equal prop ortions and be paid
accordingly:
Provided also that the question of discharging any
liability with regard to a debt specified in a lower Category
shall arise only if a surplus fund is left after meeting alExcerpt shown. Open the full act in Lexace.