The Telangana State Co-operative Societies (Reconstitution) Act, 1956.

THE TELANGANA STATE CO-OPERATIVE SOCIETIES 
(RECONSTITUTION) ACT, 1956. 
ACT NO. XLII OF 1956. 
ARRANGEMENT OF SECTIONS 
Sections 
1. Short title, extent and commencement. 
2. Reconstitution of certain existing Co-operative 
Societies. 
3. Proposals of Regisitrar and Confirmation by general 
body of each of the existing societies. 
4. Procedure if Registrar's proposals are not 
confirmed. 
5. Allocation of liabilities not to affect guarantee of the 
State Government. 
6. Adaptation and modifications to certain Acts. 
7. Acts to over-ride certain enactments. 
8. Power to make rules. 
 
THE TELANGANA STATE CO-OPERATIVE SOCIETIES 
(RECONSTITUTION) ACT, 1956.1 
 
ACT No. XLII OF 1956. 
 
1. (1) This Act may be called 2[the Telangana State  
Co-operative Societies (Reconstitution) Act, 1956]. 
 
 (2) It extends to the whole of the 2State of Telangana. 
 
 (3) It shall come into force at once. 
 
2. (1) Each of the following societies, that is to say, the 
Hyderabad State Co -operative Bank Limited, and the 
Hyderabad Central Co -operative Land Mortgage Bank 
Limited (hereinafter in this Act referred to as “the existing 
societies”), shall be reconstituted in the manner hereinafter 
appearing. 
 
 (2) From the areas of operations of each of the existing 
societies, the following territories shall be excluded, namely:- 
 
  (a) the territories comprised in the talukas of Bidar, 
Humnabad, Bhalki and Santpur of Bidar  district, the talukas 
of Raichur, Manvi, Sindhnur, Gangawathi , Kopbal, Yelbarga, 
Kushtagi, Lingsugur and Devdurg of Raichur district, and the 
talukas of Gulbarga, Chi tapur, Yadgir, Shahpur, Shorapur 
Jiwargi, Afzalpur, Aland Chinchol i and Sedam of Gulbarga  
                                                           
1. The Andhra Pradesh  (Telangana Area)  State Co -operative Societies 
(Reconstitution) Act, 1956 received the assent of the President on the 
21st September, 1956. The said Act in force in the combined State of the 
Andhra Pradesh, 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 Telangana Adaptation of Laws 
(No.2) Order, 2016, issued in G.O.Ms.No.46, Law (F) Department, dated 
01.06.2016. 
2. Substituted by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016. 
 Short title, extent 
and 
commencement. 
Reconstitution of 
certain existing 
Co-operative 
Societies. 
2  [Act No. XLII of 1956] 
district (hereinafter in this Act referred to as the Karnataka 
area); 
 
  (b) the territories comprised in the districts of 
Aurangabd, Parbhan i, Nanded, excluding Kuber, Mudhol  
and Bhainsa revenue circles of  Mudhol taluka and Jukkal 
and Bichkonda revenue circles of Deglur taluka of Nanded 
district, Osmanabad and Bhir and the talukas of Nilanga, 
Ahmedpur and Udgir of Bidar district, Islapur revenue circle 
of Boath taluka and Kinwat and Rajura talukas of Adilabad 
district (hereinafter referred to as the Marathwada area). 
 
 (3) The proposals for the reconstitut ion of the existing 
societies under section 3 shall, inter alia, provide- 
 
  (a) In relation to the Karnataka area- 
 
   (i) for the disaffiliation from the existing societies of 
the member-societies within that area; 
 
   (ii) for the affiliation of the said member societies to 
the corresponding societies of the Mysore State, that is to  
say, the Mysore State Co -operative Bank Limited or, as the 
case may be, the Mysore Central Co -operative Land 
Mortgage Bank Limited, registered u nder the Mysore  
Co-operative Societies Act; and 
 
   (iii) for the transfer of the relative portion of the 
assets and liabilities of the existing societies to the said 
corresponding Mysore societies; 
 
  (b) In relation to the Marathwada area- 
 
   (i) for the disaffiliation from the existing societies of 
the member-societies within that area; 
 
[Act No. XLII of 1956]  3 
   (ii) either for the affiliation of the the member -
societies to the corresponding societies of Co -Bombay 
State, that is to say, the Bombay State Co-operative Bank 
Limited, or as the case may be, the Bombay State  
Co-operative Land Mortgage Bank Lmited, regi stered under 
the Bombay Co -operative Societies Act, or for the formation 
and registration of a corresponding new society or societies 
for that area with the societies disaffiliated under sub -clause 
(i) as its or their members, as the Government may, by 
notification in the Official Gazette, direct; and 
 
   (iii) for the transfer of the relative portion of the 
assets and liabilities from the existing societies to the said 
corresponding Bombay societies or, as the case may be, the 
corresponding new society or societies. 
 
3. (1) The Registrar of Co -operative Societies of the 3State 
of Telangana (hereinafter  in this Act referred to as The 
Registrar) shall, subject to the provisions of section 2, place 
before a meeting of the general body of each of the existing 
societies, held in such manner as may be prescribed by 
rules made under this Act, proposals for the  reconstitution of 
the existing societies. 
 
 (2) Without prejudice to the generality of the foregoing 
power, such proposals may provide for- 
 
  (a) the allocation of the assets and liabilities of the 
existing societies among the reconstituted societies, the 
corresponding Mysore societies mentioned in section 2 (3) 
(a) (ii) and the corresponding Bombay societies or the 
corresponding new society or societies, as the case may be, 
mentioned in section 2(3) (b)(ii); 
 
                                                           
3. Substituted for t he words “Telangana Area of the State of Andhra 
Pradesh” by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016. 
Reconstitution of 
certain existing 
Co-operative 
Societies. 
Proposals of 
Registrar and 
Confirmation by 
general body of 
each of the 
existing societies. 
4  [Act No. XLII of 1956] 
  (b) the membership and management of the 
reconstituted societies and the corresponding new society 
or societies mentioned in section 2 (3) (b) (ii) in case such 
new society or societies are formed; 
 
  (c) the allocation of the establishments of the existing 
societies among the societies mentioned in clause (a) and 
the transfer of service of the officers and employees of such 
establishment; and 
 
  (d) all other matters which are necessary for or 
incidental to the aforesaid matters. 
 
 (3) Where such proposals provide for the allocation of 
the establishment or the transfer of service of officers or 
employees such allocation or transfer shall not entitle any 
such officer or employee to any compensation under the 
Industrial Disputes Act, 1947 (Central Act 14 of 19 47) or any 
other law for the time being in force and no claim in respect 
thereof shall be entertained by any court, tribunal or other 
authority. 
 
 (4) If the proposals of the Registrar under  sub-section 
(1) are confirmed by a resolution passed by a majorit y of the 
members present at the meeting either without modifications 
or with modifications to which the Registrar agrees, the 
Registrar shall certify the proposals and upon such 
certification the proposal shall, notwithstanding anything to 
the contrary con tained in any law, rules, regulations or  
bye-laws for the time being in force, be binding on the 
existing societies and the societies mentioned in section 2 
(3) (a) (ii) and section 2 (3) (b) (ii) and their shareholders and 
creditors. 
 
4. If the proposals of the Registrar are not confirmed either 
without modifications or with modifications agreed to by the 
Registrar, the State Government  shall refer the proposals to 
Procedure if 
Registrar’s 
proposals not 
confirmed. 
[Act No. XLII of 1956]  5 
a Judge of the High C ourt, Hydera bad, nominated by the 
Chief Justice, Hyderabad, in this behalf, and the decision of 
such Judge shall be final for all purposes and shall be 
binding in the same manner as if the propos als have been 
certified under sub-section (4) of section 3. 
 
5. The allocation of the liabilities of each of the  existing 
societies shall not affect the guarantee, if any, of t he State 
Government for the due repayment of any debt owing by the 
existing societies. 
 
6. The State Government may, by order, make such 
adaptations and modifications in 4the Hyderabad  
Co-operative Societies Act, 1952 (XVI of 1952) and 5the 
Hyderabad Land Mortgage Bank Act, 1349 Fasli (II of 1349 
Fasli), as are consequential on or necessary to give full 
effect to the reconstitution of the existing societies and the 
formation and registration of the new societies. 
 
7. The provisions of this Act shall have effect 
notwithstanding anything to the contrary contained in 4the 
Hyderabad Co-operative Societies Act, 1952 (XVI of 1952) 
and 5the Hyderabad Co -operative Land Mortgage Bank Act, 
1349 Fasli (II of 1349 Fasli). 
 
8. The State Government may, by notification in the 
6Telangana Gazette, make rules to carr y out the purposes of 
this Act. 
 
* * * 
                                                           
4. Repealed by Andhra Pradesh Act 7 of 1964. 
5. Repealed by Andhra Pradesh Act 44 of 1961. 
6. Substituted by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016. 
Allocation of 
liabilities not to 
affect guarantee 
of the State 
Government. 
Adaptations and 
modifications to 
certain Acts. 
Act to override  
certain 
enactments. 
Power to make 
rules. 

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