LexThe UTTAR PRADESH CO-OPERATIVE SOCIETIES ACT, 1965
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THE UTTAR PRADESH CO-OPERATIVE SOCIETIES
ACT, 19651
(U. P. Act No. XI of 1966)
Amended by
U. P. Act No. 1 of 1972
U. P. Act No. 12 of 1976
U. P. Act No. 40 of 1976
U. P. Act No. 17 of 1977
U. P. Act No. 26 of 1978
U. P. Act No. 5 of 1983
U. P. Act No. 19 of 1983
U. P. Act No. 17 of 1984
U. P. Act No. 8 of 1985
U. P. Act No. 2 of 1986
U. P. Act No. 17 of 1986
U. P. Act No. 5 of 1987
U. P. Act No. 8 of 1987
U. P. Act No. 3 of 1988
U. P. Act No. 13 of 1988
U. P. Act No. 4 of 1989
U. P. Act No. 19 of 1989
U. P. Act No. 2 of 1990
U. P. Act No. 12 of 1990
U. P. Act No. 14 of 1991
U. P. Act No. 23 of 1991
U. P. Act No. 7 of 1994
U. P. Act No. 17 of 1994
U. P. Act No. 25 of 1994
U. P. Act No. 17 of 1995
U. P. Act No. 1 of 1997
U. P. Act No. 2 of 1998
U. P. Act No. 18 of 1998
U. P. Act No. 19 of 1998
U. P. Act No. 6 of 1999
U. P. Act No. 14 of 2000
U. P. Act No. 30 of 2000
U. P. Act No. 12 of 2002
U. P. Act No. 8 of 2003
U. P. Act No. 10 of 2003
U. P. Act No. 30 of 2006
——————————————————————————————————————————
1. For Statement of Objects and Reasons, please see Uttar Pradesh Gazette, (Extraordinary), dated August 21,
1964 (Hindi) dated August 25, 1964 (English).
[The Uttar Pradesh Co-operative Societies Act, 1965]
170
U. P. Act No. 29 of 2007
U. P. Act No. 46 of 2007
U. P. Act No. 47 of 2007
U. P. Act No. 3 of 2008
U. P. Act No. 1 of 2010
U. P. Act No. 9 of 2011
U. P. Act No. 21 of 2011
U. P. Act No. 13 of 2013
U. P. Act No. 20 of 2018
[Passed in Hindi by the Uttar Pradesh Legislative Assembly on
September 1, 1965 and by the Uttar Pradesh Legislative Council on
September 10, 1965.
Received the assent of the President on March 24 1966, under
Article 201 of the Constitution of India and was published in the Uttar
Pradesh Gazette. Extraordinary, dated, April 5, 1966.]
AN
ACT
to consolidate and amend the law relating to co-operative
societies in Uttar Pradesh
IT IS HEREBY enacted in the Sixteenth Year of the Repu blic of
India as follows :—
CHAPTER-I
PRELIMINARY
Short title
extent and
commencement
1. (1) This Act may be called the Uttar Pradesh Co -operative
Societies Act, 1965.
(2) It extends to the whole of the State of Uttar Pradesh.
(3) It shall come into force from such date as the State
Government may, by notification 1 in the Gazette, appoint in this
behalf.
Provided that while appointing such date, the State
Government may declare t hat any provisions to be specified in the
declaration shall not come into force from the date so appointed and
in that case such provisions shall come into force from such date or
dates as the State Government may similarly appoint in that behalf.
Definitions 2. In this Act, unless the context otherwise requires—
(a) “Arbitrator” means a person appointed under this Act to
decide disputes referred to him by the Registrar ;
2 [(a-1) ‘agricultural credit society ’ means a credit society
majority of the ordina ry members whereof are primarily engaged in
agricultural occupation ;
——————————————————————————————————————————
1. The Act came in to force on January 26, 1968 vide notification no. 9171C/12CA-1098/62 dated December
30, 1967.
2. Ins. by sec. 2 (i) of U. P. Act 12, of 1976.
[The Uttar Pradesh Co-operative Societies Act, 1965]
172
1[(a-2) ‘agricultural occupation’ shall include—
(i) production, processing or marketing of agricultural crops;
(ii) horticulture, sericulture or anima l husbandry which
includes piggery, pisciculture, poultry farming and dairying ;
(a-3) ‘agricultural society’ means a co -operative society the
majority of the ordinary members whereof are primarily engaged
in agricultural occupation.
(a-4) ‘apex society’, ‘apex level society’ or ‘state level co -
operative society means—
(1) U. P. State Co -operative Land Development Bank Ltd,
Lucknow ;
(2) U. P. Co-operative Bank Ltd, Lucknow ;
(3) U. P. Co-operative Federation Ltd, Lucknow ;
(4) Pradeshik Co-operative Dairy Federation Ltd, Lucknow ;
(5) U. P. Co-operative Union Ltd, Lucknow ;
(6) U. P. Upbhokta Sahkari Sangh Ltd, Lucknow ;
(7) U. P. Co-operative Sugar Factories Federation Ltd ;
(8) U. P. Cane Union Federation Ltd, Lucknow ;
(9) U. P. Industrial Co-operative Association Ltd, Kanpur ; or
(10) any other central co -operative society fulfilling the
following conditions :—
(i) it includes in its membership at least one other central
co-operative society in the same line of business or trade ; and
(ii) its area of operation covers the whole of Uttar Pradesh ;
and
(iii) its primary object is to facilitate the operation of the co -
operative societies affiliated to it as ordinary members :]1
(b) “Board of Arbitrators” means a body appointed under
this Act to decide disputes referred to it by the Registrar ;
(c) “Bye-laws” means the registered bye -laws of a co -
operative society for the time being in force ;
(d) “Central G overnment” means the Government of the
Indian Union ;
2[(d-1) “Central Society” or “central co -operative society” means a
co-operative society, which has any other co -operative society as
its ordinary member and is not a primary co-operative society ;]
(e) “Committee of management” means the committee of a
co-operative society, by whatever name called, to which the
management of the affairs of the society is entrusted under
section 29 ;
——————————————————————————————————————————
1. Ins. by sec. 2(1) of U.P. Act no. 12 of 1976.
2. Ins. by sec. 2 (ii) ibid.
[The Uttar Pradesh Co-operative Societies Act, 1965]
174
(f) “Co-operative Society” means a society registered for
deemed to be registered under this Act ;
(g) “Co-operative Society with limited liability ” means a co -
operative 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, they may respectively undertake to
contribute to the assets of the society ;
(h) “Co-operative Society with unlimited liability” means a
co-operative society the members of which are, in the event of its
being wound up, jointly and severally li able for and in respect of all
its obligations and to contribute to any deficit in the assets of the
society ;
(i) “Co-operative Year” means the year commencing on the
first day of 1[April] and ending on the 1[thirty-first] day of 1[March]
next following year ;
2[(i-1) “credit society” means a society which has as its
primary object the raising of funds to be lent to its members ;]
(j) “Dividend ” means the interest paid (to a member) on the
shares held by the member in the share capital of a co -operative
society out of its profits and includes bonus, provided it is paid on
the share capital ;
[(j-1) “Federal Structure” means a group of apex , central
and primary co -operative societies of similar nature and pursuing
similar business and work;
(j-2) “Federal tier” means any one of the three levels of
societies of a particular federal structure i.e. apex or central or
primary.] 3
4[(jj) “Election Commission” means the Uttar Pradesh State
Co-operative Societies Election Commission consti tuted by the
State Government ;]
(k) “Financing Bank” or “Central Bank” means a co -
operative society the man object of which is to lend money to co -
operative societies which are its ordinary members ;
(l) “Liquidator” means a person appointed by the Registrar
under this Act to wind up the affairs of a co-operative society ;
(m) “maximum liability” means the maximum amount that
can be borrowed by a co-operative society. It does not include share
capital ;
(n) “Member” means a person who joined in the applicati on for
registration of a society or person admitted to membership after such
registration in accordance with the provisions of this Act, the rules and
the bye-laws for the time being in force but a reference to ‘members’
——————————————————————————————————————————
1. Subs. by sec. 2 of U.P. Act no. 4 of 1989.
2. Ins. by sec. 2 (iii) of U. P. Act no. 12 of 1976.
3. Ins. by sec. 2 (a) of U. P. Act no. 47 of 2007.
4. Ins. by sec. 2 of U. P. Act no. 13 of 2013.
[The Uttar Pradesh Co-operative Societies Act, 1965]
176
anywhere in this Act in connection with the possession or exercise
of any right or power or the existence or discharge of any liability or
duty shall not include reference to any class of members who by
reason of the provisions of this Act do not possess such righty or
power or have no such liability or duty ;
1[(n-1) “National Bank” means the National Bank for Agri -
culture and Rural Development established under the National
Bank for Agriculture and Rural Development Act, 1961.]
(o) “Officer of a co -operative society” means the president,
vice-president, chairman, vice -chairman, secretary, member of
committee of management, treasurer, liquidator, administrator or
any other person employed by a co -operative society whether with
or without remuneration to carry on the business of the society or to
supervise its affairs;
(p) “Ordinary member” means a member of a co -operative
society other than a sympathizer -member having a right to vote in
the affairs of the society in accordance with the provisions of this
Act, the rules and the bye-laws ;
(q) “Prescribed” means prescribed by rules ;
2 [(q-1) “primary society” means a co -operative society
ordinary membership whereof is not open to any other co -operative
society ;
Provided that—
(i) a co -operative ma rketing society , the area of operation
whereof is only a part of a district or part of more than one district
shall be deemed to be a primary society whether or not any other
co-operative society is its ordinary members ;
(ii) a primary co -operative soc iety any share whereof has
been purchased under Chapter VI, by a central or apex society
shall continue to be a primary society notwithstanding the
purchase of such shares ;
(iii) a co -operative society, the area of operation whereof is
only a part of a district and the primary object whereof is to arrange
for the storage and distribution of seeds, fertilizers, pesticides,
agricultural appliances of consumers goods to its ordinary
members and the membership whereof includes any other co -
operative society as its ordinary member, shall be deemed to be
primary society notwithstanding the membership of other co -
operative society in it.]
3[(q-2) “Reserve Bank” means the Reserve Bank of India
established under section 3 of the Reserve Bank of India Act, 1934.]
(r) “Registrar” means the person for the time being
appointed as Registrar of Co -operative Societies under sub -section
(1) of section 3 and includes any person appointed under sub -
section (2) of that section when exercising all or any of the powers
of the Registrar ;
——————————————————————————————————————————
1. Ins. by sec. 2 (b) of U. P. Act no. 47 of 2007.
2. Ins. by sec. 2 (iv) of U. P. Act no. 12 of 1976.
3. Ins. by sec. 2 (c) of U. P. Act no. 47 of 2007.
[The Uttar Pradesh Co-operative Societies Act, 1965]
178
(s) “Rules” means rules made under this Act ;
(t) “State Government” means the Government of Uttar
Pradesh ;
(u) “Tribunal” means a co -operative tribunal constituted
under this Act ;
(v) “Land Development Bank” means a bank defined in sub -
clause (c) of section 2 of the Uttar Pradesh Co -operative Land
Development Banks Act, 1964.
CHAPTER-II
Registration of Co-operative Societies
Registrar 3. (1) The State Government may appoint a person to be the
Registrar of Co-operative Societies for the State.
(2) The State Government may, for the purposes of this Act, also
appoint other persons to assist the Registrar and by general or special
order, confer on any such pers on all or any of the powers of the
Registrar.
1[(3) Where any order has been made under sub -section (2)
conferring on any person all or any of the powers of the Registrar under
any provision of this Act, such order shall be deemed to confer on him
all the powers under t hat provision as may be amended from time to
time.]
Societies
which may be
registered
4. Subject to the provisions of this Act, a society which has as
its object the promotion of the economic interest of its members in
accordance with co-operative principles or a society established with the
object of facilitating the operations of such a society may be registered
under this Act.
Explanation— Co-operative principles shall include—
(a) advancement of economic interest of the members in
accordance with public morals, decency and the relevant directive
principles of State Policy enunciated in the Constitution of India ;
(b) regulation and restriction on profit motive ;
(c) promotion of thrift, mutual aid and self-help ;
(d) voluntary membership ; and
(e) democratic constitution of the society.
Registration
with limited
or unlimited
liability
5. (1) A society may be registered as a co -operative society with
limited or unlimited liability ;
Provided that a society having another co -operative society as its
ordinary member shall be registered only with limited liability.
(2) The word
or its equivalent in English “Limited” shall be
the last word in the name of a society registered under this Act with
limited liability.
——————————————————————————————————————————
1. Ins. by sec. 3 of U.P. Act no. 12 of 1976.
[The Uttar Pradesh Co-operative Societies Act, 1965]
180
Application
for
registration
6. (1) An application for the registration of a society shall be
made in the manner prescribed to the Registrar in such form as the
Registrar may from time to time specify; and the applicants shall furnish
to him all such information about the society as he may require.
(2) Every such application shall conform to the following
requirements, namely—
(a) that it is accompanied by three copies of the proposed
bye-laws of the society ;
(b) that the applicants are eligible f or membership under
section 17 ;
(c) that the application is duly signed by every applicant
himself, if he is an individual, and by a duly authorized person if
the applicant is any of the persons mentioned in an y of the clauses
(b) to (f) of section 17;
(d) that the number of applicants, who are to be ordinary
members of the society, is not less than ten, if all the applicants are
individuals, and is not less than five in all other cases ;
(e) that where the objects of the society include the creation
of funds to be lent to its members, all the applicants who are to be
the ordinary members of the society, if individuals reside in the
same town or village or a group of contiguous villages, or belong to
the same class.
Explanation—For the purposes of this clause, any two or more
persons shall be deemed to belong to the same class, if they pursue the
same occupation or are under a common employer.
Registration 7. (1) If the Registrar is satisfied–
(a) That the application complies with the provisions of this
Act and the rules;
(b) That the objects of the proposed society are in accordance
with section 4;
(c) That the proposed bye -laws are not inconsistent with the
provisions of this Act and the rules; and
(d) That the proposed society complies with the requirements
of rules in regard to the existence of any conditions in general or
for the class of societies to which the particular society belongs
and with the requirements of sound business and has
reasonable chances of success;
the Registrar shall register the society and its bye-law :
Provided that where the bye -laws accompanying the application
for registration are such as have, after the enforcement of this Act,
already been approved by the Registrar or the type or class of co -
operative societies to which the proposed society belongs, the Registrar
shall pass final orders thereon either registering the society or refusing
its registration within three months from the date of t he receipt of the
application by him and if he fails to do so the applicants may make a
representation to the authority competent to hear under section 98
appeals against Registrar’s order of refusal to register a society and if
such authority, after calling for a report from the Registrar, p asses an
order for registration of society, the society, shall be deemed to have
been duly registered from the date of communication of such order to
the Registrar.
[The Uttar Pradesh Co-operative Societies Act, 1965]
182
(2) Where the Registrar refuses to register a society, he shall
communicate the order of refusal together with the reasons therefor to
such applicant as has been name d in the application for this purpose
and in default of such naming to any one of the applicants.
Registration
certificate
8. (1) Where society is registered under this Act or deemed to be
registered under the proviso to sub-section (1) of section 7, the Registrar
shall issue a certificate of registration signed by him which, unless the
registration is proved to have been cancelled, shall be conclusive
evidence that the society therein mentioned is a co -operative society
duly registered under this Act.
(2) No person or society shall commence business in the name of
or professing to be, a co -operative society unless a certificate of
registration has been obtained under sub -section (1) for such society
and every person or member of society carrying on busin ess in
contravention of this sub -section, shall be personally liable for all
liabilities incurred in such business.
Co-operative
societies to
be bodies
corporate
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, and with power to hold property, enter into
contracts, institute and defend suits and other legal proceedings and to
do all things necessary for the purpose for which it was constituted.
Change of
name of
co-operative
society
10. (1) A co -operative society may, by amending its bye -laws,
change its name.
(2) Where a co -operative society changes its name the Registrar
shall enter the new name on the register of co -operative societies in
place of the former name and shall amend the certificate of registration
accordingly.
(3) The change of name of a co -operative society shall not affect
any rights or obligations of the society or of any of its mambers, past
members, officers, past officers, or the heirs of anyh of them, if
deceased, or render defective any legal proceeding by or against the co -
operative society, 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.
Change of
liabilities
11. (1) Subject to the provisions of this Act and the rules, a co -
operative society, may by an amendment of its bye -laws, change the
form or extent of its liability.
(2) When a co -operative society has passed a resolution to
change the form or extent of its liability, it shall give notice thereof in
writing to all its members and creditors and notwithstanding any bye -
law or contract to the contrary, any member or creditor shall, during a
period of three months from the date of service of the notice upon him,
have the option of withdrawing, subject to the provisions of section 41,
his shares, deposits or loans, as the case may be.
[The Uttar Pradesh Co-operative Societies Act, 1965]
184
(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 co -operative society
changing the form or extent of its liability shall not be registered
until, either—
(a) it has been assented to or deemed to have been
assented to by all the members and creditors ; or
(b) all claims of members and creditors who exercise the
option referred to in sub -section (2) within the period specified
therein have been met in full.
Amendment of
bye-laws of
co-operative
society
12. (1) A co -operative society m ay, subject to the provisions
of this Act and rules, amend its bye-laws in the manner prescribed ;
Provided that no such amendment shall be valid and
operative unless it has been registered under this Act.
1[(2) The proposal for an amendment of the bye -laws shall be
forwarded to the Registrar and if the Registrar is satisfied that the
proposed amendment—
(i) is not contrary to the objects specified in section 4 of the
Act ; and
[(ii) is not contrary to the other provisions of the Act or
the rules, he shall register the amendment within one month
from the date of receipt of such proposal. If the Registrar
does not register the amendment within one month then it
will be deemed that he has refused to register the
amendment and in this case it will be obligatory for the
Registrar to intimate the society within next one month, the
reasons for not registering the amendment.]
(3) [ * * * * * ] 2
When amendment
of bye-laws come
into force
13. An amendment of the bye -laws of a co -operative society
shall, of it is expressed to come int o operation on a particular day
after registration come into force on that day, but in all other cases
on the day on which it is registered.
Power to direct
amendments in
bye-laws
14. (1) Where the registrar is of the opinion, whether on the
representation of a member of a co -operative society, or otherwise,
that an amendment in the bye -laws of a co -operative society is
necessary or desirabl e in the interests of such society, or in public
interest, he may, under such circumstances as may be prescribed,
by order in writing issued to the society by registered post, require
the society to make the amendment within such time as he may
specify in the order.
(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, [ X X X ]3 register such amendment and issue to the
——————————————————————————————————————————
1. Subs. by sec 3(a) of U. P. Act no. 47 of 2007.
2. Omit. by sec. 3 (b) of U. P. Act No. 47 of 2007.
3. Omit. by sec. 2 of U. P. Act No. 1 of 1972.
[The Uttar Pradesh Co-operative Societies Act, 1965]
186
society by registered post a copy of the amendment certified by him as a
copy and such copy shall be conclusive evidenc e that the amendment
has been duly made and registered.
Amalgamation
and merger of
co-operative
societies
15. (1) Any two or more co -operative societies may, after duly
informing the Registrar, at their respective ordinary general meetings,
called for the purpose, of which at least fifteen clear days’ notice shall be
given to their respective members, resolve, by a majority of at least two -
thirds of the members present, to amalgamate into some society or to
merge into any of them. The resolution (hereina fter called preliminary
resolution) shall contain all particulars of amalgamation or merger, as
the case may be, including the transfer of assets and liabilities to the
new society in case of amalgamation and to the continuing society in
case of merger and also the bye-laws of such a society.
1[(2) Notwithstanding any other provision of this Act or of any
bye-law of any society, notices of any meeting referred to in sub -section
(1) or sub -section (4) shall be given to the members of the societies
concerned, and copies of the preliminary resolution shall be served on
the members and creditors of such societies in any one or more of the
following manners, namely :—
(a) by delivery in person under acknowledgement in writing, or
(b) except in respect of any person who has acknowledged receipt
in writing under clause (a), by post under certificate of posting at the
address of each such person as noted in the society’s records, and also
by publication in a newspaper having circulation in the area of operation
of the society.]
(3) (i) Any member of any such society may, notwithstanding any
bye-law to the contrary, by notice to the society of which he is a member
2[within a period of thirty days from the date of receipt of the copy of the
preliminary resolution under clause (a) of sub -section (2) or, as the case
may be, from the date of its publication in a newspaper under clause (b)
of that sub -section]2 intimate his intention not to become a member of
the new society in case of amalgamation, or to be a member of the
continuing society in case of merger.
(ii) Any creditor of any such society may, notwithstanding any
agreement to the contrary, by notice given to the society of which he is a
creditor within the said period, intimate his intention to demand a
return of the amount outstanding to his credit.
(4) After the expiry of 3[the period referred to in clause (i) of sub -
section (3)] a joint meeting of the members of such societies of which at
least fifteen clear days’ notice shall be given to them, shall b e convened
for considering the preliminary resolution. If, at such meeting, the
——————————————————————————————————————————
1. Subs. by sec. 4 (i) of U. P. Act No. 12 of 1976.
2. Subs. by sec. 4 (ii) ibid.
3. Subs. by sec. 4 (iii) of U. P. Act No. 12 of 1976.
[The Uttar Pradesh Co-operative Societies Act, 1965]
188
preliminary resolution is confirmed by a r esolution passed by a
majority of not less than two -thirds of the members present,
either without changes as in the opinion of the Registrar, which
shall be final, are not material, he may —
(i) in the case of amalgamation, subject to the provisions of
sub-sections (5) and (6) and section 7, register the new society
and the bye-laws thereof ; and
(ii) in the case of merger, give subject to the provisions of
sub-sections (5) and (6), his sanction thereto.
Explanation—For the purposes of this sub -section, the term
“members” shall include any delegates of members selected for the
purpose in accordance with rules, made in this behalf.
(5) While confirming the preliminary resolution under sub -
section (4), provision shall be made by another resolution for —
(i) the repayment, subject to the provision of section 41, of
the share capital of all the members who have given notice
under clause (i) of sub-section (3), and
(ii) the satisfaction of the claims of all the creditors who
have given notice under clause (ii) of sub-section (3).
(6) If within such time as the Registrar considers reasonable, the
share capital of the members referred to in sub -section (5) is not repaid
or the claims of the creditors referred to in that sub -section are not
satisfied, the R egistrar may refuse to register the new society or to
sanction the merger, as the case may be.
(7) The registration of a new society or the sanction of merger
under sub-section (4) shall be a sufficient conveyance to vest in the new
society in the case of amalgamation and in the continuing society in the
case of merger, all the assets and liabilities of the amalgamated
societies or merged society or societies, as the case may be anything
contained in any other law for the time being in force to the cont rary
notwithstanding; and on such registration of a new society or sanction
of merger, as the case may be, the registration of the amalgamated
societies or of the society or societies which has or have merged into
another society, shall be deemed to have b een cancelled.
Division of
co-operative
society
16. (1) Any co -operative society may, after duly informing the
Registrar, at a general meeting called for the purpose of which at least
fifteen clear days’ notice shall be given to its members resolve to di vide
itself into two or more societies. The resolution (hereinafter in this
section referred to as the preliminary resolution) shall contain proposals
for the division of the assets and liabilities of the society among the new
societies into which it is pr oposed to divide it and may prescribe the
area of operation of and specify the members who will constitute each of
the new societies.
[The Uttar Pradesh Co-operative Societies Act, 1965]
190
1[(2) Notwithstanding any other provision of this Act or of any
bye-law of such society, notices of any meeting referred to in this section
shall be given to the members of the society and a copy of the
preliminary resolution shall be served on the mem bers and credito rs of
the society in any one or more of the manners specified in sub -section
(2) of section 15 which shall mutatis mutandis apply.]
(3) (i) Any member of the society may, notwithstanding any bye -
law to the contrary, by notice given to the society 2[within a period of
thirty days from the date of receipt of a copy of the preliminary
resolution under clause (a) of sub -section (2) of section 15 as applicable
by virtue of sub -section (2) of this section, or, as the case may be, from
the date of its publication in a newspaper under clause (b) thereof]
intimate his intention not to become a m ember of any of the new
societies.
(ii) Any creditor of the society may, notwithstanding any
agreement to the contrary, by notice given to the society within the said
period, intimate his intention to demand a return of the amount
outstanding to his credit.
(4) After expiry of 3[the period referred to in clause (i) of sub -
section (3)] a general meeting of which at least fifteen clear days’ notice
shall be given to its members, shall be convened for considering the
preliminary resolution. If at such meeting the preliminary resolution is
confirmed by a resolution passed by a majority of not less than two -
thirds of the members present either wi thout changes or with such
changes as in the opinion of the Registrar, which shall be final, are not
material, he may, subject to the provisions of sub-section (5) and (6) and
section 7, register the new societies and the bye -laws thereof. On such
registration, the registration of the old society shall be deemed such
registration, the registration of the old societ y shall be deemed to have
been cancelled.
(5) While confirming the preliminary resolution under sub -
section (4), provision shall be made by another resolution for—
(i) the repayment, subject to the provisions of section 41, of
the share capital of all the members who have given notice under
clause (i) of sub-section (3); and
(ii) the satisfaction of the claims of all the creditors who
have given notice under clause (ii) of sub-section (3).
(6) If, within such time as the Registrar considers reasonabl e, the
share capital of the members referred to in sub -section (5) is not repaid
or the claims of the creditors referred to in that sub -section are not
satisfied, the Registrar may refuse to register the new societies.
——————————————————————————————————————————
1. Subs. by sec. 5 (i) of U. P. Act No. 12 of 1976.
2. Subs. by sec. 5 (ii) ibid.
3. Subs. by sec. 5 (iii) ibid.
[The Uttar Pradesh Co-operative Societies Act, 1965]
192
(7) Notwithstanding anything in any other law for the time being
in force, the registration of the new societies shall be a sufficient
conveyance to vest the assets and liabilities of the original society in the
new societies in the manner specified in the preliminary resolution as
confirmed under sub-section (4).
CHAPTER –III
Members of Co-operative Societies and Their Right And Liabilities
Persons who
may be
members of a
co-operative
society
17. (1) No person shall be a member of a co -operative society
except the following, namely—
(a) an individual who except as provided in sub -section (4)
of section 18, section 80 and sub -section (2) of section 81, is of
the age of majority according to the law to which he is subject
and who is of sound mind and is not disqualified from
contracting by any law to which he is subject ;
(b) any other co-operative society ;
(c) the State Government ;
(d) the Central Government ;
(e) the State Warehousing Corporation established or
deemed to be established under the Warehousing Corporations
Act, 1962.
1[(ee) a firm registered under the Indian Partnership Act,
1932.]
(f) a body corporate not covered by any other clause and
approved by the Registrar, for ordinary or nominal membership
of co-operative societies in general or any particular co -operative
society or class of co -operative societies on the ground of its
being useful in the development of such societies, society or class
of societies.
2[(g) any association or body of persons whether incorporated
or not ;
Provided that a student, who has not attained the age of maj ority
according to the law to which he is subject, shall be eligible for the
membership of a co -operative society formed in an educational
institution to which he belongs. ]
(2) Notwithstanding anything contained in sub -section (1) a joint
stock company or an individual shall not be admitted as an ordinary
member in such co -operative society or societies or class of co -operative
society as may be prescribed.
Classes of
members
18. (1) A co -operative society may, in addition to ordinary
members, have the following kinds of members—
(a) sympathizer members ;
(b) nominal members ;
——————————————————————————————————————————
1. Ins. by sec. 2 of U.P. Act no. 5 of 1987.
2. Ins. by sec. 2 of U. P. Act no. 30 of 2000.
[The Uttar Pradesh Co-operative Societies Act, 1965]
194
(c) associate members.
(2) (a) A person may be admitted as a sympa thizer member if he
is genuinely interested in the promotion of the object of the society or in
the welfare of the member workers.
(b) The number of sympathizer members in a society shall at no
time exceed five percent of the total number of ordinary me mbers and
the number of sympathizer members on the committee of management
shall neither exceed two nor ten percent of their total membership in the
society nor even one -fifth of the total number of members on the
committee of management.
(3) (a) A pers on with whom the co -operative society has or
proposes to have business dealings may be admitted as a nominal member.
(b) A nominal member shall have no right to share in the profits
of the society nor shall be eligible for the membership of the committee
of management.
(4) (a) Any individual including a minor who is a seasonal or
temporary worker or apprentice in the business of the society or who is
otherwise interested in such business may be admitted as an associate
member.
(b) An associate member shall not be eligible for the membership
of the committee of management nor have a right to share in the profits
otherwise than as wages and bonus.
(5) Save as provided in this section or elsewhere in this Act, a
nominal or associate or sympathizer m ember shall have such privileges
and rights of a member and be subject to such liabilities of a member,
as may be specified in the bye-laws of the society, or the rules.
Member not
to exercise
right till due
payment
made
19. No member of a co-operative society shall exercise the rights
of a member unless he has made such payment to the society in respect
of membership or has acquired such interest in the society as may be
specified in the rules or the bye-laws of the society.
Vote of
members
20. A mem ber of a co -operative society shall, notwithstanding
the quantum of his interest in the capital of the society, have one vote in
the affairs of the society.
Provided that—
(a) no nominal or associate member shall have the right of vote ;
1[(aa) a member shall have no right of vote if—
(i) he is defaulter and has been a defaulter for a period of not less
than six months ; or
(ii) he is a delegate of a society which is such defaulter as is
referred to in sub-section (i).
(iii) 2[ * * * * * ]
——————————————————————————————————————————
1. Ins. by sec. 6 of U. P. Act no. 12 of 1976.
2. Omit. by sec. 2 (a) of U. P. Act No. 3 of 2008. (Inserted by sec. 4 of U.P. Act No. 47 of 2007)
[The Uttar Pradesh Co-operative Societies Act, 1965]
196
Explanation 1 I—For the purpose of this clause, the word
“defaulter” means :—
(i) a member (whether individual or bod y corporate) who has
failed to pay any dues of the society concerned on the due date ; or
(ii) a member co -operative society which has failed to pay
not less than 75 percent of the total dues on the due date. ]
2[Explanation II— In the case of a transaction between a society
and its members where there is no document evidencing the transaction
in which the due date is specified the expression due date, for the
purposes of the proceeding explanation shall mean the date of
expiration of sex months from the date of transaction.
Explanation III — A member shall cease to be treated as de
faulter if the pays the sum for non -payment of which such member
became defaulter—
(i) in the case of an election, in or before the date fixed under the
rules for deciding objections against the provisional voters list ;
(ii) in any other case, before the commencement of the meeting ;]
3[ (aaa) A person who becomes member of a Primary Co -operative
Credit Society for making deposit only and has not done any credit
business wi th the society, he shall have right to vote if he has
maintained a deposit of at least rupees one thousand in the society for a
period of two years preceding the date fixed for publication of the
provisional voter list. ]
(b) where a co -operative societ y, the State Warehousing
Corporation or a body corporate is a member of such society, each
delegate of such co -operative society, State Warehousing Corporation or
body corporate, appointed 4[in the prescribed manner] to the general
body of such society shall have one vote ;
(c) where the State Government or the Central Government is a
member of such society, each person nominated according to the bye -
laws by the State Government or the Central Government on the
committee of management or the general body of the co-operative society
shall have one vote ; and
(d) the rules or the bye -laws may provide for a group of members
or any class of members partaking in the affairs of the society through a
delegate or delegates, each delegate having one vote.
Manner of
exercising
vote
21. Every individual member, every delegate and every nominee
shall exercise his vote in the affairs of a co-operative society in person and
no member, delegate or nominee shall be permitted to vote by proxy.
——————————————————————————————————————————
1. Renumbered by Sec. 2 of U. P. Act No. 17 of 1977.
2. Ins. by sec. 2 of U. P. Act no. 17 of 1977.
3. Ins. by sec. 2 (b) of U. P. Act no. 3 of 2008.
4. Subs. by sec. 2 ibid.
[The Uttar Pradesh Co-operative Societies Act, 1965]
198
Restriction
on holding of
shares
22. A member who is an individual shall —
(a) neither hold more th an such portion of the total share capi tal
of the society nor exceeding one-fifth thereof, as may be prescribed,
Restrictions
on transfers
of shares of
interest
(b) nor have or claim any interest in the shares o f the society
exceeding 1[such amount as may be prescribed] in nominal value.
23. (1) The transfer of a share or interest of a member in the
capital of a co -operative society shall he subject ot scuh conditions and
restrictions as to the maximum holding as are specified in section 22.
(2) No transfer by a member of his share or interest in the capital
of a co-operative society shall be valid unless—
(a) the membr has held such share or interest for not less than
one year ;
(b) the transfer is made to the soc iety or a member of the society ;
or
(c) the transfer is approved by the committee of management of
the society ;
(3) Notwithstanding anything contained in sub -section (2) a co -
operative society may, subject to such condit ions as may be prescribed
permit the transfer of, acquire or retain the share or interest of any
member in the capital of the society.
Transfer of
interest on
death of
members
24. (1) On the death of a member of a co -operative society, the
society shall transfer the share or interest of the deceased member to
the person or persons nominated in the manner prescribed, or if no
person has been so nominated, to such person as may appear to the
committee of management to be the heir or legal representative of the
deceased member ;
Provided that no such transfer shall be m ade unless such
nominee, heir or legal representative, as the case may be, is admitted as
a member of the society ;
Provided further that if any dispute arises whether any person is
the heir or legal representative of the deceased member, it shall be
referred to the Regist rar who shall thereupon refer it for arbitration
under section 71 and such society shall treat for the purposes of this
section the person so determined in the arbitration p roceedings as the
heir or legal representative of the deceased member.
(2) Notwithstanding anything contained in sub -section (1), any
such nominee, heir or legal representative, as the case may be, may
require the society to pay to him the value of the share or interest of the
member ascertained in the manner prescribed and the society deceased
shall pay the amount due within three months from the expiry of the
period provided in section 25 for the continuance of liability.
——————————————————————————————————————————
1. Subs. by sec. 3 of U. P. Act No. 1 of 1972.
[The Uttar Pradesh Co-operative Societies Act, 1965]
200
(3) A co-operative society shall pay all other money which may
be found due to the deceased member from the society to such
nominee, heir or legal representative, as the case may be.
(4) All transfers and payments made by a co -operative society
in accordance wi th the provisions of this section shall be valid and
effectual against any demand made upon the society by any other
person ;
Provided that nothing herein shall affect the right of the
rightful heir or legal representative to make any claim against the
persons to whom any t ransfer or payment has been made under this
section.
(5) Nothing contained in sub -section (2) and (3) shall prejudice
the right of society under this Act to realize its outstanding claims
against the deceased member out of the value of share or interest of,
or other moneys due to, the deceased member.
Liability of past
member and
estate of
deceased
member
25. (1) Subject to the provisions of sub -section (2) the liability
of a past member or of the estate of a deceased member of a
co-operative society for the debts of the society as they existed—
(a) in the case of a past member, on the date on which he
ceased to be a member ; and
(b) in the case of a deceased member, on the date of his death
shall continue for a period of two years from such date.
(2) Where a co -operative society is ordered to be wound up
under section 72 the liability of a past member or of the estate of a
deceased member who ceased to be a member or died within two years
immediately preceding the date of the o rder of winding up, shall
continue until the entire winding up proceedings are completed, but
such liability shall extend only to the debts of the society as they
existed on the date of his ceasing to be a member or death, as the case
may be.
Admission to
and withdrawal
from
membership
26. (1) A person may be admitted as a member of co -operative
society subject to the provisions of this Act, the rules and the bye -
laws.
(2) Where a person may be admitted as a member of co -
operative society, the decision r efusing admission shall be
communicated by the society to that person within seven days of the
date of the decision.
(3) A member of a co -operative society, if he is not in debt to
the society or is not a surety for any unpaid debt, may withdraw from
the membership of the society after giving at least one month’s notice
to the society provided that he has put in such minimum period of
membership, if any, as may be laid down in theExcerpt shown. Open the full act in Lexace.