LexThe Tripura Co-operative Societies Act 1974
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Tripura Act No. 8 of 1974
THE TRIPURA CO-OPERATIVE SOCIETIES
ACT, 1974
Published in the
EXTRAORDINARY ISSUE OF TRIPURA GAZETTE
Agartala, Thursday, October 10, 1974 A.D.
Asvina 18, 1896 S.E.
Government of Tripura
Law Department.
No. F. 2(9)-Law/Leg/73 Dated, Agartala, the 3rd September, 1974.
The following Act of the Tripura Legislative Assembly received assent of the
President on the 9th August, 1974 and is hereby published for general information.
Tripura Act, No. 8 of 1974.
THE TRIPURA CO-OPERATIVE SOCIETIES ACT, 1974
ARRANGEMENT OF SECTIONS
CHAPTER- I
Preliminary
Sections Pages
1. Short title, extent and commencement 6
2. Definitions 6
CHAPTER- II
Registration
3. Registrar 10
4. Societies which may be registered 10
5. Registration with limited or unlimited liability 10
6. Conditions of registration 11
7. Power to exempt societies from conditions as to registration 11
8. Application for registration 11
9. Registration 12
10. Evidence of registration 12
11. Power of Registrar to decide certain questions 12
12. Classification of societies 13
13. Amendment of bye-laws of society 13
14. Power to direct amendment of bye-laws 13
15. Change of name 13
16. Change of liability 14
17. Amalgamation, transfer, division or conversion of Societies 14
18. Power to direct amalgamation, division and reorganisation in
public interest, etc. 15
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19. Reconstruction of societies 16
20. Partnership of societies 16
21. Cancellation of registration 17
CHAPTER- III
Members and their rights and liabilities.
22. Persons who may become member 18
23. Open membership 19
24. Nominal and sympathiser member 20
25. Cessation of membership 20
26. No rights of membership to be exercised till due payments are made 20
27. Voting powers of members 21
28. Restrictions on holding of shares. 22
29. Restrictions on transfer or charge on share or interest 22
30. Transfer of interest on death of member. 22
31. Share on interest not liable to attachment 23
32. Rights of members to see books etc. 23
33. Liability of past member and estate of deceased member 23
34. Insolvency of members 23
35 Expulsion of members 24
36. Disqualification for membership 24
37. Liability of members 24
CHAPTER- IV
Incorporation, duties and privileges of societies.
38. Societies to be bodies corporate 25
39. Address of societies 25
40. Register of members 25
41. Copy of Act, etc. to be open to inspection 25
42. Admissibility of copy of entry as evidence. 25
43. Exemption from compulsory registration of instruments relating to shares and
debentures of society 25
44. Power of exempt from taxation 26
45. Restriction on borrowings 26
46. Regulation of loan making policy 27
47. Restrictions on other transactions with non-members 27
48. Charge and set-off in respect of share or interest of member 27
49. Prior claim of society 28
50. Charge on immovable property of members borrowings from certain societies 29
51. Deduction from salary to meet society’s claim in certain case 30
CHAPTER- V
Government aid to Societies.
52. Partnership of Government in societies 30
3
53. Liability to be limited in respect of shares purchased by Government 31
54. Other forms of Government aid to societies 31
55. Provisions of this chapter to override other laws 31
CHAPTER- VI
Property and funds of Societies.
56. Funds not to be divided among members 31
57. Appropriation of Profits. 31
58. Reserve fund 32
59. Restrictions on dividend
60 Contributions to educational fund to the federal society notified by the
Government 32
61. Contribution to public purposes. 33
62. Investment of funds 33
63. Employees’ provident fund 34
CHAPTER- VII
Management of Societies.
64. Final authority of society 34
65. Committee, its powers and functions 34
66. Disqualification for membership of committees 35
67. Term of office of the members of the committee 37
68. Restrictions on holding office simultaneously in a number of institutions 37
69. Appointment of manager, secretary and other officers 38
70. Power to depute Government servant in the service of a Society 38 71. Annual General Meeting 29
71. Annual General Meeting 38
72. Special General Meeting 39
73. Acts of societies, etc, not to be invalidated by certain defects 40
74. Power of removal of committee or member thereof 41
75. Registrar’s power to enforce performance of obligations 43
76. Registrar’s power to seize records, etc. 44
77. Securing possession of records etc. 44
78. Power to appoint Government nominee 44
CHAPTER- VIII
Audit, inquiry, inspection and suspension
79. Audit 45
80. Rectification of defects in accounts 47
81. Inquiry by Registrar 48
82. Inspection of books of indebted society 48
83. Costs of inquiry and inspection 48
84. Recovery of costs 49
85. Registrar to bring defects disclosed in inquiry or inspection to the notice of
society 49
86. Inspection of societies by Registrar at his own motion 49
87. Inspection of indebted society by the financing bank 50
88. Power of Registrar to assess damages against delinquent promoters etc. 50
89. Power to enforce attendance, etc 51
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90. Recognition of financing bank or federal societies to supervise the working of
societies 51.
91. Suspension of paid officer or servant of a society 51
CHAPTER- IX
Procedure for deciding disputes.
92. Dispute 52
93. Powers of financing bank to proceed against members of a society for
Recovery of moneys due to it from such society 53
94. Limitation 53
95. Settlement of disputes 54
96. Procedure for settlement of disputes and power of Registrar, his nominee or
board of nominees 54
97. Attachment before award and interlocutory orders 55
98. Decision of Registrar or his nominee or board of nominees 56
99. Finality of order 56
100. Appeal against decision of Registrar of his nominee or board of nominees 56
101. Money how recovered 56
102. Private transfer of property made after issue of certificate void against society 57
103. Transfer of property which cannot be sold 57
104. Recovery of crop loan 57
CHAPTER- X
Liquidation
105. Winding up 57
106. Appointment of Liquidator 58
107. Appeal; against order of winding up 59
108. Powers and duties of Liquidator 59 107. Appeal against order of winding up 49 108. Powers and duties of liquidator 49
109. Effect of order of winding up 60
110. Bar of suit in winding up and dissolution matters 60
111. Audit of liquidator’s accounts 61
112. Termination of liquidation proceedings 61
113. Disposal of surplus assets 62
CHAPTER- XI
Insured Co-operative Banks
114. Insured Co-operative Banks 62
CHAPTER- XII
Co-operative Land Development Banks
115. Application of Chapter to Co-operative Land Development Banks 63
116. Co-operative Land Development Banks and its branches 64
117. Appointment, powers and functions of trustee 64
118. Issue of debentures 64
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119. Guarantee by Government 65
120. Vesting of property in trustee and debenture holders’ charge on assests 65
121. Powers of Co-operative land development bank to advance loans and to hold
lands 65
122. Mode of dealing with applications for loans 66
123. Registration of mortgage or lease in favour of development bank 66
124. Mortgages not to be questions on insolvency of mortgages 66
125. Right of Co-operative land development bank to pay prior debts of
mortgager 67
126. Mortgages executed by managers of joint Hindu families 67
127. Section 8 of Act, 32 of 1956 to apply to mortgages to Co-operative Land
Development Bank subject to certain modifications. 67
128. Restriction on lease 67
129. Powers of Co-operative land development bank where mortgaged property
is destroyed or security become insufficient 68
130. Right of Co-operative land development bank to buy mortgaged property 68
131. Recovery of loans by Co-operative land development bank 68
132. Power of distain. 68
133. Sale of mortgaged property 68
134. Confirmation of sale 69
135. Disposal of sale proceeds 69
136. Certificates to purchaser, delivery of property and title of purchaser 70
137. Recovery of loans on certificate by Registrar 70
138. Mode of recovery by Collector. 71
139. Officers of banks not to bid at sales 71
140. Provision for guarantee funds to meet certain losses 71
141. Register’s power to permit any Co-operative Bank to function as a Co-
operative Land Development Bank 71
142. Service of notice 71
CHAPTER- XIII
Offences and penalties
143. Prohibition of use of the ‘Co-operative” 72
144. Offences 72
145. Punishments for offences under section 73
146. Punishments for offences not otherwise provided for 74
147. Cognizance of offences. 74
CHAPTER- XIV
Appeals, review and revision
148. Tripura Co-operative Tribunal 75
149. Review of orders of Tribunal. 75
150. Tribunal to have power of civil court 76
151. Appeals 76
152. Extension of period of limitation by appellate authority in certain cases 76
153. Power of Government and Registrar to call for proceedings of subordinate
Officers and to pass orders thereon 76
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CHAPTER- XV
Miscellaneous
154. Recovery of sums due to Government 77
155. Registrar’s power to recover certain sums by attachment and sale of
Property 77
156. Power to exempt societies from provisions of Act. 78
157. Delegation of power of Registrar to federal societies 78
158. Branches etc. of societies outside the state of Tripura 78
159. Competency of a member to transfer land or interest therein to society. 79
160. Registrar’s power to enforce performance of obligations. 79
161. Registrar and other officers to be public servant 79
162. Indemnity for acts done in good faith 79
163. Bar of jurisdiction of courts 79
164. Notice necessary of suits 80
165. Power to make rules 80
166. Repeal saving and construction 85
167. Companies Act not to apply 86
Tripura Act No. 8 of 1974
The Tripura Co-operative Societies Act. 1974 An Act.
to consolidate and amend the law relating to co-operative societies in the
State of Tripura. BE it enacted by the Legislative Assembly of Tripura in
The Twenty-fifth year of the Republic of India as follows:
CHAPTER - I
PRELIMINARY
1. (1) This Act may be called the Tripura Co-operative Societies Act. 1974.
(2) It extends to the whole of Tripura.
(3) It shall come into force at once.
2. In this Act unless the context otherwise requires--
(1) “agricultural marketing society” means a society---
(a) the object of which is the marketing of agricultural produce and
the supply of implements and other requisites for agricultural
production and agriculturists, or societies formed by agriculturists;
Note: In this sub-section, “agriculturist” means a person employed in agricultural
work whether owning any lands or not and includes a bargadar.
(2) “auditor” includes a person appointed by the Registrar to audit the accounts of a
society;
(3) “bonus” means payment made in cash or kind out of the profits of a society to a
Member, on to a person who is not a member, on the basis of his contribution
Short title, extant and
commencement
Definitions.
7
(Including any contribution in the form of labour or service) to the business of the
society, and in the case of farming society, on the basis both of such
Contribution and also the value or income or, as the case may be, the area of the
Lands of the members brought together for joint cultivation as may be decided by
the society ;
(4) “bye-laws” mean bye-laws registered under this Act and for the time being in force,
and include registered amendments of such bye- laws ;
(5) “Committee” means the committee of management, or other governing body by,
Whatever name called, to which the management of the affairs of a society is
entrusted:
(6) “company” means a company as defined in the Companies Act. 1956 and includes a
Banking Company and also any board, corporation or other corporate body,
constituted or established by any Central, State or Provincial Act for the purpose
of the development of any industry;
(7) “consumers society” means a society the object of which is--
(a) the procurement, production of processing and distribution of
goods to, or the performance of other service for its members as
also other customers, and
(b) the distribution among its members and customers, in the
proportion prescribed by rules or by the bye-laws of the society,
of the profits accruing from such procurement, production or
processing, and distribution;
(8) “Credit Society” means a Co-operative Society the primary object of which is to create
funds out of which money is to be lent to its members an credit structure society including the State
Co-operative Bank, the Co -operative land development bank and a primary agricultural credit
society.”2*
(9) “State Co-operative Bank means an Apex Co -operative Society doing the business of banking as
defined in clause (b) of Section 5 of the Banking Regulation Act, 1949 and having jurisdiction over whole
of Tripura State and declared as such by the State Government under clause (u) of Section 2 of the
National Bank for Agriculture and Rural Development Act, 1981 (Central Act No. 61 of 1981).”3*
(10) “Co-operative Land Development Bank” means a society which is functioning or is to
function as a land development bank under Chapter XII :
(11) “dividend” means the amount paid, out of the profits of a society to a member in
proportion to the shares held by him ;
(12) “financing bank” means a co-operative bank, or a corresponding new bank
Constituted under the Banking Companies (Acquisition and Transfer of
( Undertakings) Act, 1970, the objects of which include the creation of funds to
be loaned to other societies ;
1 of 1956.
10 of 1949
5 of 1970
8
(13) “framing society” means a society in which, with the object of increasing
agricultural production, employment and income and better utilisation of
resources, lands are brought together and jointly cultivated by all the
members, such lands--
(a) being owned by or leased to the members (or some of them),or
(b) coming in possession of the society, in any other manner whatsoever;
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2* Sub Section (8) substituted by TCS (Second Amendment) Act 2009.
3* Sub Section (9) substituted by TCS (Second Amendment) Act 2009.
(14) “Federal Society” means a society--
(a) not less than five members of which are themselves societies, and
(b) in which the voting rights are so regulated that the members which are
societies have not less than four -fifths of the total number of votes in the general
meeting of such society”;
(15) “firm” means a firm registered under the Indian Partnership Act, 1932 ;
(16) “general society” means a society not falling in any of the classes of societies
defined by the other clauses of this section ;
(17) “housing society” means a society the object of which is providing its members
belonging to low income group with an income of not more than rupees five
hundred per month with dwelling houses ;
(18) “industrial society” means a co-operative society, the objects of which include the
manufacture of goods by or with the help of its members and the provision of
supplies and services to them and also to small producers and entrepreneurs,
and includes a co-operative society established with the object of facilitating the
operation of such a society;
(19) “Liquidator” means a person appointed as liquidator under this Act ;
(20) “Local Authority” includes a school board and an agricultural produce market
committee constituted by or under any law for the time being in force ;
(21) (a) “member” means a person joining in an application for the registration of a
co-operative society which is subsequently registered, or a person duly admitted
to membership of a society after registration, and includes a nominal or
sympathiser member ;
(b) “nominal member” means a person admitted to membership as
such after registration in accordance with the bye-laws ;
(c) “sympathiser member” means a person who sympathises with
the aims and objects of the society and who is admitted by the
society as such member ;
(22) “Official Gazette” means the Tripura Gazette ;
(23) “officer’ means a person elected or appointed by a society to any office of such
society according to its bye-laws ; and includes a chairman, vice-chairman,
9 of 1932
9
president, vice - president, managing director, manager, secretary, treasurer,
member of the committee, and any other person elected or appointed under this
Act, the rules or the bye-laws, to give directions in regard to the business of
such society ;
(24) “prescribed” means prescribed by rules ;
(25) “processing society” means an agricultural society the object of which
is the processing of goods ;
(26) “producers society” means a society the object of which is the production and
disposal of goods or the collective disposal of the labour of the member thereof :
(27) “Registrar” means a person appointed to be the Registrar of Co-operative
Societies under sections 3 of this Act ;
(28) “resource society” means a society the object of which is the obtaining for its
members the credit, goods, or services required by them ;
(29) “rules” means the rules made under this Act ;
(30) “society” means a co-operative society registered, or deemed to be registered
under this Act ;
(31) “society with limited liability” 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 respectively held by
them, or
(ii) to such amount as they may respectively undertake to contribute
to the assets of the society ;
(32) “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 its
obligations and to contribute to any deficit in the assets of the society ;
(33) “Tribunal” means the Tripura Co-operative Tribunal constituted under this Act ;
(34) “working capital” means funds at the disposal of a society inclusive of paid up
share capital, funds built out of profits, and money raised by borrowings and
by other means.
(35) “primary agriculture credit society means a Co-operative Society as defined under clause (cciv) of
Section 5 of Banking Regulation Act, 1949 (Central Act 10 of 1949) and include multipurpose Co -
operative Society.”1*
(36) “ primary society means a Co -operative Society whose membershi p consists exclusively of
individuals and self-help groups”.2*
10
(37) “ Multipurpose Co -operative Society means a primary Society the object of which is to provide
various services including services related to credit, business, industry, consumer durables to its
members.3*
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1*, 2* and 3* Sub section (35), (36), (37) are inserted by TCS (Second Amendment) Act
2009.
(38) “ National Bank means the National Bank for Agriculture and Rural Development established
under Section 3 of the National Bank for Agriculture and Rural Development Act, 1981 (Central Act No.
61 of 1981).”1*
(39) “Reserve Bank means the Reserve Bank of India established under section 3 of the Reserve Bank of
India Act, 1934 (Central Act 2 of 1934).”2*
*(40) “ Chartered Accountant means a member of the Instituted of Chartered Accountants of India
within the meaning of the Chartered Accountants Act. 1949 (XXXVII of 1949).”3*
*(41) ‘Apex Co-operative Society’ means a Co-operative Society whose membership includes societies ”
4*
* (42) “family” means husband, wife and also includes their unmarried sons & daughters. 5*
CHAPTER- II
REGISTRATION
Societies which may be registered
3. The Government may appoint a person to be the Registrar of Co -operative
Societies for the State of Tripura and may appoint one or more persons to assist such
Registrar, and may, by general or special order, confer on any such person or persons
all or any of the powers of the Registrar under this Act. The person or persons so appointed
to assist the Registrar and on whom any powers of the Registrar are conferred, shall work
under the general guidance superintendence and control of the Registrar.
4. A society, which has its objects the promotion of the economic interests or
general welfare of its members, or of the public, in accordance with co -operative
principles, or a society established with the object of facilitati ng the operations of any
such society, may be registered under this Act :
Provided that no society shall be registered if it is likely to b e economically unsound, or
the registration of which may have an adverse effect on the development of the co -operative
movement:
Provided further that the Registrar may lay down conditions towards formation of
economic unit societies.
5. A society may be registered with limited or unlimited liability.
1*, 2 *, 3* and 4* Subsection (38),(39),(40) and (41) are inserted by TCS (Second
Amendment) Act 2009.
*5 Sub-Section (42) is inserted by TCS (third amendment) Act, 2016.
Registrar
Societies which
may be registered
11
6. (1) No society, other than a federal society, shall be registered under this Act, unless it
consists of at least “fourteen persons” (there shall not be more than two persons from one family of
which at least one should be woman. There will be no bar if two members are women )*1, who are
qualified to be members under this Act, and who reside in the area of operation of the
society.
(2) No society with unlimited liability shall be registered, unless all persons
forming the society reside in the same town or village, or in the same group of villages.
(3) No federal society shall be registered, unless it has at least five societies as its
members.
(4) No society shall be registered it the bye-laws of such society permit
admission, as member thereof, of a person carrying on tr ansaction or business of the same
kind or nature as carried on by such society.
(5) In particular and without prejudice to the generality of the provisions of sub -
section (4)
(a) no credit society shall be registered if th e bye-laws of such society permit
admission, as member thereof, of a person who is a money-lender by profession;
(b) no consumers society shall be registered if the bye-laws of such
society permit admission, as member thereof, of a person who is a
grocer by profession and
(c) no industrial society shall be registered if the bye-laws of such
society permit admission, as member thereof of a person who is
carrying on his own account or has interest in, any business of the kind
carried on by such society.
(6) No society formed by particular community, class or group of people for the
promotion of economic interests of such community, class or group of people exclusively
through specified activity or activities shall be registered where its bye -laws permit more
than ten per centum of its members to be persons not to be directly benefitted by such
activity or activities.
(7) Nothing in this Act shall be deemed to affect the registration of any society made
before the commencement of this Act.
(8) The word “limited” or “unlimited” shall be the last word in the name of every
society with limited or unlimited liability, as the case may be, which is registered or
deemed to be registered under this Act.
Explanation: - For the purposes of this section and section 8, the expression “member of
a family” means a wife, husband, father, mother, son or unmarried daughter.
7. Not withstanding anything contained in this Act, the Government may, by special
order in each case, exempt subject to such conditions (if any) as it may impose, any society
from any of the requirements of this Act as to registration.
8. (1) For the purposes of registration, an application shall be made to the Registrar
in the prescribed form, and shall be accompanied by four copies of the proposed bye-laws of
the society. Th e persons by whom, or on whose behalf, such application is made, shall
furnish such information in regard to the society, as the Registrar may require.--------------------
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*1 These words are substituted by TCS (Third Amendment) Act, 2016
Conditions of
registration
Power of exempt
societies from
conditions as to
registration
Application for
registration
12
(2) The application shall be signed -
(a) in the case of a society other than a federal society, by at least
ten persons (each of such persons being a member of different
family), who are qualified under this Act; and
(b) in the case of a federal society, by at least five societies.
(3) No signature to an application on behalf of society shall be valid, unless the
person signing is a member of the committee of such society, and is authorised by the
committee by resolution to sign on its behalf the application for registration of the society and
its bye-laws and a copy of such resolution is appended to the application.
9. (1) If the Registrar is satisfied that a proposed society has complied with the
provisions of this Act and the rules, and that its proposed bye-laws are not contrary to this
Act or to the rules, he may, within ”one month ”1* from the date of receipt of the
application, register the society and its bye-laws.
(2) If the Registrar is unable to dispose of an application for registration within
the period mentioned in the foregoing sub -section he shall make a report to the
Government stating therein the reasons therefore ; and he shall thereafter act in
accordance with such directions as may be issued to him by the Government.
(3) “Where the Registrar refuses to register a proposed society, he shall forthwith
communicate his decision, with the reasons therefore, to the person who has signed first on th e
application within one month from the date of receipt of the application for the registration of the
society”.2*
(4) The Registrar shall maintain a register of all societies registered, or deemed to
be registered under this Act.
10. A certificate of registration signed by the Registrar shall be conclusive evidence
that the society therein mentioned is duly registered, unless it is pr oved that the registration
of the society has been cancelled .
10 A . “A cooperative credit structure society may affiliate or disaffiliate w ith an apex
cooperative society at its choice keeping in view the financial position of the Apex Coop. Society
Provided that before disaffiliation, the society shall discharge its financial liability,
if any, to the society from whom it is disaffiliating.”3*
11. When, for the purpose of the formation, or registration or cancelled_
Continuance of a society, any quest ion arises whether a person is an agriculturist or not, or
whether any person resides in the area of operation of the society or not, such question
shall be decided by the Registrar.
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1* The words one month substituted by TCS (Second Amendment) Act 2009.
2* Subsection (3) substituted by TCS (Second Amendment) Act 2009.
3* Section 10A inserted by TCS (Second Amendment) Act 2009
12. (1) The Registrar shall classify all societies into one or other of the classes of societies
defined in section 2. and also into such sub -classes thereof as may be prescribed by
rules.
Registration
Evidence of
registration
Power of Registrar
to decide certain
questions.
Classification
of Societies
13
(2) The Registrar may, for reasons to be recorded in writing, after the
classification of a societ y from one class of society to another, or from one sub -class
thereof to another ; and may, in the public interest and subject to such terms and
conditions as he may think fit to impose, allow any society so classified to undertake the
activities of a society belonging to another class.
(3) A list of all societies so classified shall be published by the Registrar every three
years in such manner as the Government may, from time to time, direct.
13. (1) No amendment of the bye-laws of a society shall be valid until registered under
this Act. For the purpose of registration of an amendment of the bye-laws, a copy of the
amendment passed, in the manner prescribed, at a general meeting of the society, shall be
forwarded to the Registrar.
(2) When the Registrar registers an amendment of the bye -laws of a society, he
shall issue to the society a co py of the amendment certified by him which shall be
conclusive evidence that the same is duly registered.
(3) Where the Registrar refuses to register an amendment of the bye -laws of
society, he shall communicate the order of refusal, together with his reasons therefore, to the
society.
“(4) The Registrar shall dispose of the proposal for amendment of bye -laws within one month
from the date of receipt of the proposal.”*1
14. (1 ) If it appears to the Registrar that an amendment of the bye -laws of a society is
necessary or desirable in the interest of such society, he may call upon the society in the
manner prescribed, to make the amendment within such time as he may specify.
(2) If the society fails to make the amendment within the time specified, the
Registrar may, after giving the society an opportunity of being heard and after consulting
the financing bank to which the society is affiliated, register such amendment, and issue
to the society a copy of such amendment certified by him. With effect from the date of
registration of the amendment in the manner aforesaid, the bye -laws shall he deemed to
have been duly amended accordingly ; and the bye -laws as amended shal l be binding on
the society and its members.
“3) The provisions of this section shall not apply to a cooperative credit structure society.*2
15. (1) A society may, be resolution passed at a general meeting and with the approval of
the Registrar, change its name ; but such change shall not affect any right or obligation of
the society, or of any of its members, or past members, or deceased members ; and any
legal proceedings pending before any person, authority or court may be continued by
or against the society, under its new name.
(2) Where a society changes its name, the Registrar shall enter the new name in its
place in the register of societies, and shall also amend the certificate of registration
accordingly.
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*1 Sub section (4) section 13 is inserted by TCS (Second Amendment) Act 2009.
*2 Sub Section (3) section 14 is inserted by TCS (Second Amendment) Act 2009.
16. (1) Subject to the provisions of this Act and the rules, a society may, by amendment of
its bye-laws, change the form or extent of its liability.
(2) When a society has passed a resolution to change the form of extent of its
liability, it shall give notice thereof in writing to all its members and creditors, and not
Amendment of
by-laws of
society
Power to direct
amendment of
by-laws
Change of name
Change of Liability
14
withstanding anything in any bye -law or contract to the contrary, any member or c reditor
shall, during a period of one month from the date of service of such notice upon him have
the option of withdrawing his shares, deposits or loans.
(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) An amendment of the bye-laws of a society, changing the form or extend of its
liability, shall not be registered or take effect until, either--
(a) all members and creditors have assented, or deemed to have
assented, thereto as aforesaid; or
(b) all claims of members and creditors who exercise the option, given
by the sub-section (2), within the period specified therein, have been
met in full or otherwise satisfied.
17. (1) A society may, with the previous approval of the Registrar by resolution
passed by two -thirds majority of the members present and voting of a special general
meeting held for the purpose, decide--
(a) to amalgamate with another society ;
(b) to transfer its assets and liabilities, in whole or in the part, to any others
society ;
(c) to divide itself into two or more societies ; or
(d) to convert itself into another class of society.
Provided that when such am algamation, transfer, division or conversion aforesaid ,
involves a transfer of the liabilities of a society to any other society, no order on the resolution
shall be passed by the Registrar, unless he is satisfied that-
(i) the society, after passing such resolution has given notice thereof in
such manner as may be prescribed to all its members, creditors and
other persons whose interests are likely to be affected ( hereinafter, in
this section referred to as “other interested persons”), giving them the
option, to be exercised within one month from the date of such notice, of
becoming members of any of the new societies, or continuing their
membership in the amalgamated or converted society, or demanding
payment of their share or interest or dues, as the case be;
(ii) all the members and creditors and other interested persons have
assented to the decision, or deemed to have assented thereto by virtue
of any member or creditors of any other interested person failing to
exercise his option within the period specified in clause (i) aforesaid ;
and
(iii) all claims of members and creditors and other interested persons,
who exercise the option within the period specified, have been met in full
or otherwise satisfied.
(2) Not withstanding anything contained in the Transfer of Property Act. 1882, or the
Registration Act, 1908 in the event of division or conversion, the registration of the new
societies or, as the case may be, of the converted society, and in the event of
Amalgamation
transfer, division
or conversion of
societies.
15
amalgamation, the resolution of the societies concerned with amalgamation, shall in each
case be sufficient conveyance to vest the assets and liabilities of the original society or
amalgamating societies in the new societies or converted or amalgamated society as the
case may be.
(3) The amalgamation of societies, or division or conversion of a society shall not affect
any right or obligation of the societies so amalgamated, or society so divided or converted,
or render defective any legal proceedings which might h ave been continued or commenced
by or against the societies which have been amalgamated, or divided or converted ; and
accordingly, such legal proceedings may be continued or commenced by or against the
amalgamated society or, as the case may be, the converted society, or the new societies.
4. Where two or more societies have been amalgamated, or a society has been
divided or converted, the registration of such societies or society shall be cancelled on the
date of registration of the amalgamated society, or the converted society, or the new societies
between which the society may have been divided.
18. (1) Where the Registrar is satisfied that it is essent ial in the public interest, or in the
interest of the co -operative movement, or for the purpose of securing the proper
management of any society, that two or more societies should amalgamate or any society
should be divided to form two or more societ ies or should be reorganised, than
notwithstanding anything contained in the last preceding section but subject to the
provisions of this section, the Registrar may, after consulting the financing bank to which
the society is affiliated, by order notifi ed in the Official Gazette, provide for the
amalgamation, division or reorganization of those societies into a single society or into
societies with such constitution, property, rights, interests and authorities, and such
liabilities, duties and obligations, as may be specified in the order.
(2) No order shall be made under this section unless
(a) a copy of the proposed order has been sent in draft to the society or
each of the societies concerned;
(b) the Registrar has considered and made such modifications in the draft order
as may seem to him desirable in the l ight of any suggestions and objections which may be
received by him within such period (not being less than *fifteen days from the date on which the
copy of the order as aforesaid was received by the society )1* as the Registrar may fix in that
behalf, either from the society or from any member or class of members thereof, or from any
creditor or class of creditors; and
(c) the prior approval of the State Government has been obtained for such
reorganisation, amalgamation, or division.
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1* TCS Amendment Act, 1980 the word “fifteen days” substituted for” two months”
(3) The order referred to in sub -section (I) may contain such incidental,
consequential and supplemental provisions as may, in the opinion of the Registrar, be
necessary to give effect to the amalgamation, division or reorganisation.
Power to direct
amalgation, division
and reorganization in
public interest, etc.
16
(4) Every member or creditor of each of the societies to be amalgamated, divided or
reorganise, who has objected to the scheme of amalgamation, division or reorganisation
within the period specified, shall be entitled to receive, on the issue of the order of
amalgamation, division or reorganisation his share or interest if he be a member, and the
amount in satisfaction of his dues if he be a creditor.
(5) On the issue of an order under sub -section (1), the provisions in sub -sections (2),
(3) and (4) of section 17 shall apply to the societies so amalgamated, divided or
recognized as if they were amalgamated divided or reorganized under that section, and to
the society amalgamation divided or reorganized.
19. Where a proposal for compromise or arrangement-
(a) between a society and its creditors, or
(b) between a society and its members, is approved at a spec ial g eneral
meeting called for the purpose, the Registrar may, on the application of the society or
of any member or of any creditor of the society or in the case of a society which is
being wound up, of the Liquidator or der reconstruction in the prescribed manner of the
society.
20. (1) Any two or more societies may by resolution passed by three -fourths majority of
the members present and voting at a general meeting of each such society, enter into a
partnership for carrying o ut any specific business or businesses provided that each
member has had clear ten days written notice of the resolution and the date of the
meeting.
(2) Nothing in the Indian Partnership Act, 1932 shall apply to such partnership.
20A “ Notwithstanding anything contained in this Act, rules or bye-laws made there-under or any other
law for the time being in force, a cooperative credit structure society shall have autonomy in all
financial and internal administrative matters including the following areas :-
(a) Interest rate on deposit and loans,
Provided that in case of the State Cooperative Bank, t he interest rates shall be in conformity
with the guidelines issued by the Reserve Bank;
(b) Borrowing and investments;
(c) Loan policies and individual loan decisions;
(d) Personnel policy, staffing, recruitment, posting and compensation to staff;
(e) Internal control systems, appointment of auditors and compensation for the audit”1*
1* Section 20A inserted by TCS (Second Amendment) Act 2009.
21. (1) The Registrar shall make an order cancelling the registration of a society, if it
transfers the whole of its assets and liabilities to another society, or if its affairs are
wound up, or the winding up proceedings in respect of the society are closed or terminated
Reconstruction of
societies
Partnerahip of
societies.
9 of 1932
Cancellation of
Registration
17
under section 112, or it has not commenced business, within one year of its registration, or
has ceased to function, or if he is satisfied, after making such inquiry as he thinks fit, that the
society no longer has genuinely as its Objects one or more of the objects specified in section
4 and its registration ought to, in the interests of the general public, be cancelled. The
society shall, from the date of s uch order of cancellation, be deemed to be dissolved,
and shall cease to exist as a corporate body,
“(2) No primary agricultural credit society or its federation or association (except those which are
permitted to act as a bank under Banking Regulation A ct, 1949 [Central Act NExcerpt shown. Open the full act in Lexace.