The West Bengal Co-operative Societies Act, 1973

West Bengal Act XXXVIII of 1973 
THE WEST BENGAL CO-OPERATIVE 
SOCIETIES ACT, 1973. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta 
Gazette, Extraordinary, of the 25th September, 1973.] 
[25th September, 1973.] 
An Act to consolidate and amend the law relating to co-operative 
societies in West Bengal. 
WHEREAS it is necessary and expedient to make further provisions 
to give a healthy impetus and a sense of purpose to the co-operative 
movement in the State, to promote thrift, self-help and mutual aid amongst 
people with needs and interests in common, to provide for clean, devoted 
and efficient management of, and infuse a new life into, the co-operative 
societies in the State, to diversify their activities and put them on sound 
financial footing, to generate employment, to increase production in all 
sectors of life including agriculture and industry, and above all, to bring 
about economic and social regeneration including better and happier 
conditions of living for the weaker sections of the community, and for 
that purpose, to consolidate and amend the law relating to co-operative 
societies in West Bengal; 
It is hereby enacted in the Twenty-fourth Year of the Republic of 
India, by the Legislature of West Bengal, as follows:— 
CHAPTER I 
PRELIMINARY 
1. (1) This Act may be called the West Bengal Co-operative 
Societies Act, 1973. 
(2) It extends to the whole of West Bengal. 
(3) It shall come into force on such date as the State Government 
may, by notification in the Official Gazette, appoint: 
Short title, 
extent and 
commence-
ment. 
155 
The West Bengal Co-operative Societies Act, 1973. 
[West Ben. Act 
(Chapter 1.—Preliminary.--Section 2.) 
Provided that while appointing such date the State Government may 
declare that any provision to be specified in the declaration shall not 
come into force from the date so appointed, and in that case such 
provision shall come into force from such date or dates as the State 
Government may specifically appoint in that behalf. 
Definitions. 	 2. In this Act, unless there is anything repugnant in the subject or 
context,— 
(a) "administrator"means a person appointed by the State 
Government or the Registrar under section 26 to manage the 
affairs of a co-operative society; 
(b) "apex society" means a co-operative society whose area of 
operation extends to the whole of the State and the primary 
object of which is the promotion of the objects, and the 
provision of facilities for the operation, of other co-operative 
societies which are its members; 
(c) "arbitrator" means a person appointed under clause (c) of 
sub-section (1) of section 87 to decide any dispute referred 
to him; 
(d) "audit officer" means a person authorised under section 79 
by general or special order to audit the accounts of a co-
operative society; 
(e) "by-laws" means the by-laws registered or deemed to have 
been registered under this Act, and includes a registered 
amendment of the by-laws; 
(f) "central co-operative bank" has the same meaning as in the 
Reserve Bank of India Act, 1934; 	 2 of 1934. 
(g) "central co-operative land development bank" means a co-
operative society, the objects of which include the creation 
of funds out of which money is to be lent to co-operative 
land development banks and to persons admitted to 
membership of the central co-operative land development 
bank in accordance with its by-laws; 
(h) "central society" means a co-operative society the primary 
object of which is to facilitate the working of other co-
operative societies which are its members; 
156 
The West Bengal Co-operative Societies Act, 1973. 
XXXVIII of 1973.] 
(Chapter 1.—Preliminary.—Section 2.) 
(i) "consumers' co-operative society" means a co-operative 
society, the primary object of which is to supply consumer 
goods and to render such other services to its members as 
may be required in respect of supplying and production of 
consumer goods, and includes a federation of such societies; 
(j) "co-operative farming society" means a co-operative society, 
which has, as its principal object, the organised cultivation 
of the lands held by the society or its members, jointly by 
the members or otherwise, with a view to increasing 
agricultural production and employment by proper utilisation 
• of land, labour and other resources; 
(k) "co-operative land development bank" means a co-operative 
society, the objects of which include the creation of funds 
out of which money is to be lent to members on long term 
upon mortgage of the immovable property for improvement 
of agricultural land and for other productive purposes; 
Explanation.—In this clause,— 
(1) "long term" means a period above five years, 
(2) "productive purpose" means any effort, activity or 
construction to increase the productivity of agricultral 
land and includes— 
(i) construction or repair of wells, tubewells, tanks and 
other works (including subsequent addition or alteration 
thereto) for storage, supply or distrubution of water for 
the purpose of agriculture including irrigation or for 
the use of men and cattle employed in agriculture, 
( ) preparation of agricultural or waste land to make it 
accessible to irrigation facilities, 
(iii) construction or repair of drainage, reclamation of 
agricultural lands from rivers or tanks, or otherwise, 
steps for protection of agricultural lands from floods, 
erosion or damage, 
(iv) promotion of horticulture, 
(v) purchase of oil engines, pumping sets, electrical 
motors, tractors or any kind of agricultural machinery 
for agricultural or irrigation purposes, 
157 
The West Bengal Co-operative Societies Act, 1973. 
[West Ben. Act 
(Chapter 1.—Preliminary.--Section 2.) 
(vi) construction of permanent farm-houses, cattle sheds or 
sheds for storing or processing agricultural produce at 
any satge, 
(vii) purchase of machinery for crushing sugarcane, or for 
manufacturing gur, khandsari or sugar, 
(viii) purchase of agricultural land for the purpose of 
consolidation of existing agricultural holdings, 
(ix) such other purposes, as the State Government may, 
from time to time, by notification in the Official Gazette, 
declare to be productive purposes; 
(1) "co-operative society" menans a co-operative society 
registered or deemed to be registered under this Act; 
(m) "co-operative society with limited liability" means a co-
operative society having the liability of its members limited 
by its by-laws to the amount, if any, unpaid on the shares 
respectively held by them or to such amount as they may 
respectively thereby undertake to contribute to the assets 
of the society in the event of its being wound up; 
(n) "co-operative society with unlimited liability" means a co-
operative society having, subject to its by-laws, an unlimited 
liability of its members to contribute jointly and severally 
in any deficiency in the assets of the society; 
(o) "co-operative year" means such period of twelve months as 
may be prescribed for keeping the accounts of a co-operative 
society; 
(P) "co-operative credit societies" 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 and includes credit union; 
(q) "dispute" means any matter capable of being the subject of 
civil litigation, and includes a claim in respect of any sum 
payable to or by a co-operative society, whether such claim 
be admitted or not; 
(r) "District Co-operative Union" means a co-operative society 
registered under this Act, having its area of operation 
extending to the whole of a district or a co-operative range, 
its primary object being to assist the State Co-operative 
Union in implementing its objects in the respective district 
or co-operative range; 
158 
The West Bengal Co-operative Societies Act, 1973. 
XXXVIII of 1973.] 
(Chapter 1.—Preliminary.—Section 2.) 
(s) "engineers' co-operative" means a co-operative society 
formed of unemployed— 
(i) degree holders in any branch of engineering, 
technology, science, commerce, arts or agriculture, 
(ii) diploma holders in any branch of engineering, 
technology or agriculture, 
(iii) certificate holders in any industrial trades, 
for their exclusive benefits, the percentage of degree and diploma 
holders in any branch of engineering or technology in the 
membership ofthe co-operative society, being not less than sixty 
per cent.: 
(t) "financing bank" means a co-operative society, the objects 
of which include the creation of funds out of which money 
is to be lent to other co-operative societies; 
(u) "industrial co-operative 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; 
(v) "Inspector of Co-operative Societies" means a person 
appointed by that designation by the Registrar; 
(w) "liquidator" means a person appointed under section 90 to 
wind up the affairs of a co-operative society; 
(x) "managing committee" means the committee of management 
of a co-operative society constituted under section 23; 
(y) "member" means a person joining in an application for 
registration of a society which is subsequently registered or 
a person admitted to membership of a society after its 
registration in accordance with this Act, the rules and the by-
laws, and includes, subject to the provisions of section 59, 
a nominal and an associate member; 
(z) "net profit" means profits after deduction of establishment 
charges, contingent charges, interest payable on loans and 
deposits, audit fees and such other sums as may be prescribed; 
(z 1) "officer" includes a president, vice-president, chairman, vice-
chairman, secretary, joint secretary, assistant secretary, 
managing director, manager, deputy manager, assistant 
159 
The West Bengal Co-operative Societies Act, 1973. 
[West Ben. Act 
(Chapter 1.—Preliminary.—Section 2.) 
manager, treassurer, member of a managing committee, 
auditor elected from among the members and any other 
person empowered under the rules or by-laws to give 
directions in regard to the business of a co-operative society; 
and also includes any officer of the Government deputed by 
the State Government or the Registrar under section 24 or 
any person appointed by the State Government or the 
Registrar under section 26 to manage the affairs of a 
co-operative society; 
(z2) "prescribed" means prescribed by rules made under this Act; 
(z3) "primary co-operative bank" has the same meaning as in the 
Reserve Bank of India Act 1934; 	 2 of 1934. 
(z4) "primary co-operative credit society" means a co-operative 
society the primary object of which is to create funds to be 
,lent to its members; 
(z5) "primary society" means a co-operative society, the object 
of which is to promote the common interests of its members 
in accordance with the provisions of this Act, the rules and 
the by-laws; 
(z6) "Registrar" means a person appointed to perform the duties 
of Registrar of Co-operative Societies under this Act and 
includes any person appointed to assist the Registrar on 
whom all or any of the powers or duties of the Registrar 
referred to in section 10 have been or has been conferred or 
imposed under clause (a) of that section; 
(z7) "Reserve Bank" means the Reserve Bank of India established 
under the Reserve Bank of India Act, 1934; 
(z8) "rules" means rules for the time being in force made under 
this Act; 
(z9) "State co-operative bank" has the same meaning as in the 
Reserve Bank of India Act, 1934; 
(z10) "State Co-operative Union" means a co-operative society 
registered under this Act, having its area of operation 
extending to the whole of the State, and its primary objects 
being— 
(a) to spread education on co-operative principles and 
practices, 
160 
The West Bengal Co-operative Societies Act ,1973. 
XXXVIII of 1973.] 
(Chapter 1.—Preliminary.—Section 3.) 
(b) to organise and promote new co-operative societies 
and to develop the existing co-operative societies in 
the State, 
(c) to propagate and publicise co-operative principles and 
ideas, and 
(d) to carry out other functions as may be prescribed; 
(z 1 1 ) "Tribunal" means the Co-operative Tribunal costituted under 
section 133; 
(z12) "Trustee" means the person appointed to be a Trustee under 
sub-section (1) of section 34. 
3. (1) The Bengal Co-operative Societies Act, 1940, is hereby 
repealed. 
(2) Notwithstanding such repeal, anything done or suffered or any 
action taken (including any rule made, any transaction entered into, 
notification and notice issued with prospective and retrospective effect, 
order passed, appointment and registration made, suit and proceeding 
commenced, dispute decided or referred to arbitration, right or title 
accrued, or liability or obligation or penalty incurred) under the 
2 of 1912. 	 Co-operative Societies Act, 1912 or under the Bengal Co-operative 
Societies Act, 1940, shall, in so far as they are consistent with this Act, 
be deemed to have been done or taken under this Act, as if the provisions 
of this Act were in force at all material times when such thing was done 
or suffered or such action was taken. 
(3) Every society existing at the commecement of this Act which 
has been registered or deemed to have been registered under the Co-
operative Societies Act, 1912 or under the Bengal Co-operative Societies 
Act, 1940, shall be deemed to be registered under this Act; and its by-
laws shall in so far as they are not inconsistent with the provisions of 
this Act, continue in force until altered or rescinded and shall to such 
extent be deemed to be registered under this Act. 
4. All references to the Co-operative Societies Act, 1912, or to the 
Bengal Co-operative Societies Act, 1940, occurring in any enactment for 
the time being in force in West Bengal shall, in the application of any 
such enactment thereto, be construed as references to this Act; and 
anything done or any proceedings commenced in pursuance of any such 
enactment on or after the commencement of this Act shall be deemed 
to have been done or to have been commenced and to have had effect 
as if the reference in such enactment to the Co-operative Societies Act, 
Ben. Act 
XXI of 
1940. 
Repeal and 
savings. 
Construction 
of references 
to Act 2 of 
1912 and 
Ben. Act 
XXI of 1940. 
161 
The West Bengal Co-operative Societies Act, 1973. 
[West Ben. Act 
(Chapter 1.—Preliminary.--Sections 5-8. 
—Chapter II Registration.—Section 9.) 
1912, or to the Bengal Co-operative Societies Act, 1940, had been a 
reference to this Act, and no such thing or proceeding shall be deemed 
to have been invalid on the ground that such enactment did not refer to 
this Act. 
Ben. Act 
XXI of 
1940. 
Act 1 of 
1956 not to 
apply. 
Prohibition 
of the use 
of the word 
"co-
operative". 
Power to 
exempt co-
operative 
societies 
from the 
provisions of 
the Act. 
Officers of 
co-operative 
societies to 
be public 
servants. 
5. The provisions of the Companies Act, 1956, shall not apply to 
co-operative societies. 
6. No person other than a co-operative society shall trade or carry 
on business under any name or title of which the word "co-operative" 
or its equivalent in any language is part: 
Provided that nothing in this section shall apply to the use by any 
person or by his successor-in-interest of any name or title under which 
he lawfully traded or carried on business at the commencement of this 
Act. 
7. The State Government may, if it is satisfied that it is necessary 
so to do in the public interest, by notification for reasons to be recorded— 
(a) exempt any co-operative society or class of such societies 
from the application of any of the provisions of this Act or 
of any rules made thereunder, or 
(b) direct that any of such provisions shall apply to such society 
or class of societies to such extent as may be specified in 
the notification: 
Provided that no order to the prejudice of any society shall 
be made without an opportunity being given to such society 
to represent its case. 
8. The officers of the co-operative societies shall be deemed to be 
public servants within the meaning of section 21 of the Indian Penal 45 of 1860. 
Code. 
CHAP IhR II 
REGISTRATION 
Appointment 
of Registrar 
and of 
persons to 
assist him. 
9. The State Government may appoint a person to be Registrar of 
Co-operative Societies for West Bengal and may appoint persons to 
assist him. 
162 
The West Bengal Co-operative Societies Act, 1973. 
XXXVIII of 1973.1 
(Chapter II 	 Registration.—Sections 10-12.) 
10. Subject to the rules, the State Government may, by general or 
special order in this behalf, confer all or any of the powers, or impose 
all or any of the duties, entrusted to the Registrar by or under this Act, 
other than those specified in the First Schedule,— 
(a) upon any person appointed under section 9 to assist the 
Registrar; and 
(b) upon any co-operative society in respect of any other co-
operative society which is a member of the co-operative 
society first mentioned. 
11. (1) Subject to the provisions of this Act and of any rules, a 
society which has as its object the promotion of the common interests 
of its members in accordance with co-operative principles, or a society 
established with the object of facilitating the operation of such a society, 
including a society formed by the division of an existing co-operative 
society or amalgamation of existing co-operative societies, may be 
registered under this Act with or without limited liability. 
(2) The word "limited" shall be the last word in the name of a society 
registered under this Act with limited liability. 
Conferment 
of powers of 
Registrar. 
Societies 
which may 
be registered. 
12. (1) No society shall be registered, if the by-laws of such society Bar to 
permit admission, as member thereof, of a person carrying on transaction registration 
of some 
or business of the same kind or nature as carried on by such society. societies. 
(2) In particular and without prejudice to the generality of the 
provisions of sub-section (1),— 
(a) no credit society shall be registered, if the by-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 by-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 by-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. 
(3) No society formed by a particular community, class or group of 
people for the promotion of the economic interests of such community, 
class or group of people exclusively, through specified activity or activities, 
shall be registered where its by-laws permit more than ten per centum 
of its members to be persons not to be directly benefited by such activity 
or activities. 
163 
The West Bengal Co-operative Societies Act ,1973. 
[West Ben. Act 
(Chapter II.— Registration.—Sections 13-15.) 
Application 
for 
registration. 
Registrar to 
decide 
certain 
questions. 
Registration. 
13. (1) An application for registration of a society shall be made to 
the Registrar in the prescribed manner and shall be accompanied by two 
copies of the proposed by-laws; and the 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. 
(2) Where all the applicants are individuals, the number of applicants 
shall not be less than fifteen, at least twelve of whom must be persons 
belonging to twelve different families: 
Provided that such restrictions shall not apply to engineers' 
co-operatives: 
Provided further that for special reasons, the State Government may, 
on receipt of application for the purpose, permit registration of societies 
with lesser number of persons. 
Explanation.—For the purpose of sub-section (2), "family" shall be 
deemed to consist of husband, wife, minor sons and unmarried daughters, 
dependent wife of predeceased son, if any, together with her minor sons 
and unmarried daughters, if any and husband's dependent parents. 
(3) The State Government may, by rules, prescribe the extent to 
which a co-operative society may limit the number of its members. 
(4) An application for registration of a society shall be disposed of 
by the Registrar within a period of three months from the date of receipt 
of such application by him. 
(5) An application, which remains undisposed of after the expiry of 
the aforesaid period of three months, shall be deemed to have been 
refused by the Registrar. 
14. The Registrar shall decide all questions as to whether the 
application complies with the provisions of this Act and the rules, and 
whether the objects of the society are in accordance with the provisions 
of sub-section (1) of section 11. 
15. (1) If the Registrar is satisfied that the application complies with 
the provisions of this Act and the rules and that the proposed by-laws 
are not contrary thereto, he shall, unless for reasons to be recorded in 
writing he thinks fit to refuse, register the society and its by-laws. 
(2) Where the Registrar refuses to register a society, he shall 
communicate the order of refusal together with the reasons therefor, 
within fifteen days of the date of such order, to such of the applicants 
for registration as may be prescribed. 
164 
The West Bengal Co-operative Societies Act, 1973. 
XXXVIII of 1973.] 
(Chapter II .— Registration.—Sections 16-18.) 
16. A certificate of registration signed by the Registrar shall be 
issued to the society and shall be conclusive evidence that the co-
operative society therein mentioned is a co-operative society duly 
registered under this Act and that its by-laws are as attached to the 
certificate, unless it is proved that the registration of the society has been 
cancelled or that the by-laws have been amended in accordance with 
section 17 or section 18. 
17. (1) No amendment of any by-law of a co-operative society, 
whether by way of addition, cancellation or alteration, shall be valid until 
such amendment has been registered under this Act. 
(2) Every proposal for such amendment, framed in accordance with 
the rules, shall be forwarded to the Registrar, and if the Registrar is 
satisfied that the proposed amendment is not contrary to the provisions 
of this Act or the rules, he shall, unless for reasons to be recorded in 
writing he sees fit to refuse, register the amendment within a period of 
three months from the date of receipt of such proposal by him: 
Provided that no order refusing to register the proposed amendment 
of the by-laws shall be made except after giving the co-operative society 
an opportunity of making its representations in the prescribed manner. 
(3) The Registrar shall forward to the society a copy of the amendment 
thus registered, together with a certificate signed by him, and such 
certificate shall be conclusive evidence that the amendment has been 
duly registered. 
(4) If the Registrar refuses to register the proposed amendment of 
any by-law of a co-operative society, he shall, within fifteen days of the 
date of order of refusal, communicate to the society, by registered post, 
the order of refusal with the reasons therefor. 
18. (1) If it appears to the Registrar that an amendment of the by-
laws of a co-operative society is necessary or desirable in the interests 
of such society, the Registrar or any person authorised by him in writing 
may, of his own motion or on the application of a financing bank of 
which the society is a member and a debtor, call a special general 
meeting of the society in the prescribed manner to make the amendment 
within such time as he may specify. 
(2) If the society fails to make the amendment within the time 
specified in sub-section (1), the Registrar may, after giving the society 
an opportunity of being heard and after consulting the financing bank, 
if any, of which the society is a member and a debtor, register the 
amendment and forward to the society a copy thereof, together with a 
certificate signed by him which shall be conclusive evidence that the 
amendment has been registered, and subject to appeal, if any, such 
amendment shall be binding upon the society and its members. 
Evidence of 
registration. 
Amendment 
of by-laws 
of a co-
operative 
society. 
Power of the 
Registrar to 
direct 
amendment 
of the by-
laws. 
165 
The West Bengal Co-operative Societies Act 1973. 
[West Ben. Act 
(Chapter 111.—Status and management of co-operative 
societies.—Sections 19-21.) 
CHAPTER III 
STATUS AND MANAGEMENT OP CO-OPERATIVE SOCIEIIES 
Co-operative 
societies to 
be bodies 
corporate. 
19. The registration of a co-operative society shall render it a body 
corporate by the name under which it is registered, with perpetual 
succession and a common seal, and with power to acquire, hold and 
dispose of property, to enter into contracts, to institute and defend suits 
and other legal proceedings and to do all things necessary for the purposes 
for which it was constituted. 
Final 	 20. (1) The final authority of every co-operative society shall vest 
authority of in the general body of members in general meeting: c- 
operative 	 Provided that in such circumstances as may be prescribed, the final society. authority may vest in the delegates of such members, elected in the 
prescribed manner and assembled in general meeting. 
(2) The general meeting shall be summoned and shall exercise its 
authority in such manner as may be prescribed. 
General 
meeting. 21. (1) The general meeting of every co-operative society shall be 
held once at least in every co-operative year for the purpose of— 
(a) electing members of the managing committee, other than 
members nominated under section 28, and such other officers 
as may be provided in the by-laws; 
(b) approving the budget and the programme of activities of 
the society for the ensuing year prepared by the managing 
committee; 
(c) considering the audit report referred to in section 80, if 
received; 
(d) considering the report of inspection or of inquiry, if any, 
made under section 82 or section 84, as the case may be, 
and the annual statement of accounts in the prescribed 
form; 
(e) considering the cases of loans made to the members of the 
managing committee and their relatives, if any, and the 
cases of defaults, if any, in respect of such loans; and 
(f) considering any other matter which may be brought forward 
in accordance with the by-laws. 
(2) Such meeting shall be held not more than fifteen months after 
the date of the last preceding meeting held under sub-section (1). 
166 
The West Bengal Co-operative Societies Act, 1973. 
XXXVIII of 1973.] 
(Chapter 111.—Status and management of co-operative 
societies.—Section 22.) 
(3) On the failure of the managing committee of the society to call 
the general meeting within the aforesaid period of fifteen months, the 
Registrar shall call, or authorise any of his officers to call, a general 
meeting within a period of three months from the date of expiry of the 
aforesaid fifteen months, without prejudice to the penal measures, that 
may be taken under this Act against the members of the managing 
committee for not holding the general meeting within such period as 
required under sub-section (1) and sub-section (2). 
(4) Notwithstanding anything contained in sub-section (1), sub-
section (2) and sub-section (3), the State Government may, in special 
circumstances, permit the Registrar to call the general meeting even after 
the expiry of 18 months, from the date of the last preceding meeting held 
under sub-section (1). 
(5) The managing committee of the co-operative society shall place 
before each general meeting, for the information of the general body of 
members, a statement disclosing therein— 
(a) loans, if any, sanctioned to members of such committee and 
their relatives during the preceding year, 
(b) up to date total amount of pending loans, if any, payable 
by the members of such committee and their relatives to 
such society, and 
(c) details of defaults in payment, if any, made by such members 
and relatives in respect of the loans referred to in clause 
(b), 
and the members present at such general meeting may direct such 
action, as may be deemed necessary in the interest of such society, for 
recovery of the aforesaid loans, if any, from such members and relatives. 
(6) If the audit report referred to in clause (c) of sub-section (1) is 
not received before the general meeting, the same may be considered 
at a special general meeting to be held within three months from the date 
of receipt of the audit report. 
22. (1) A special general meeting may be called at any time by a 
majority of the members of the managing committee and shall be called— 
(a) on the requisition in writing of one-third of the members 
of any co-operative society having not more than five 
hundred members or of one-fifth of the members of any 
other society; or 
(b) at the instance of the Registrar: 
Provided that, in the case of any society having more 
than one thousand five hundred members, a requisition 
under clause (a) may be presented by delegates elected in 
the prescribed manner: 
Special 
general 
meeting. 
167 
The West Bengal Co-operative Societies Act, 1973. 
[West Ben. Act 
(Chapter 111—Status and management of co-operative 
societies.—Section 23.) 
Provided further that the agenda of a special general 
meeting, referred to in this sub-section, shall not include 
any of the matters mentioned in clauses (a), (b) and (d) to 
(f) of sub-section (1) of section 21. 
(2) The Registrar, or any person authorised by him in this behalf by 
special order in writing, may call a special general meeting of a co-
operative society at any time, and shall call such a meeting upon failure 
of the managing committee of the society to call a meeting on a requisition 
by the members or at the instance of the Registrar under sub-section (1). 
(3) Notwithstanding any rule or by-law prescribing the period of 
notice for, and the method of summoning, a special general meeting, the 
Registrar, in the case of a meeting called at his instance under sub-section 
(1), or the person calling the meeting in the case of a meeting called 
under sub-section (2), may specify the time and place for such meeting, 
the manner in which it shall be summoned and the matter which shall 
be discussed thereat. 
Management 
of 
co-operative 
society. 
23. (1) The management of every co-operative society shall vest 
in a managing committee constituted in accordance with the rules and 
by-laws, which shall exercise such powers and perform such duties as 
may be conferred or imposed, respectively, by this Act, the rules and 
the by-laws. 
(2) No person, who has been, or but for voluntary resignation could 
have been, a member of a managing committee of a co-operative society 
for consecutive three terms or three years, whichever is less, shall be 
eligible for being a member of the managing committee of the said 
society through re-election or by appointment or co-option within a 
period of two years from the date of his retirement or voluntary resignation, 
as the case may be: 
Provided that nothing in this sub-section shall apply in the case of 
a nominee of the State Government or an additional director appointed 
by the Registrar, on the managing committee of a co-operative society. 
(3) No member of the managing committee of a co-operative society 
shall receive any emoluments or allowances or honoraria without specific 
sanction of the Registrar and the general body of members given at a 
general meeting: 
Provided that in any industrial co-operative society composed mainly 
of artisans or workmen, or in any transport co-operative society composed 
mainly of workers employed in any transport undertaking, industry or 
business, or in any labour co-operative society composed mainly of 
persons who live on manual labour, or in any engineers' co-operative society, 
168 
The West Bengal Co-operative Societies Act, 1973. 
XXXVIII of 1973.] 
(Chapter 111.—Status and management of co-operative 
societies.—Section 23.) 
a member in receipt of salary or wages from the society, may, with the 
approval of the Registrar, be a member of the managing committee of 
such society, and such member of the managing committee may continue 
to receive such salary or wages. 
(4) No member of any co-operative society shall be eligible for 
being chosen as, or for being, a member of the managing committee of 
such society or of any other society to which such society is affiliated, 
if such member— 
(a) has been adjudged by a competent court to be insolvent or 
of unsound mind; 
(b) is concerned or participates in the profits of any contract 
with the society; 
(c) has been punished with imprisonment for an offence 
involving moral turpitude; 
(d) holds any office or place of profit under the society: 
Provided that in an industrial co-operative society 
composed mainly of artisans, or workmen, or in a transport 
co-operative society composed mainly of workers employed 
in any transport undertaking, industry or business or in any 
labour co-operative society composed mainly of persons 
who live on manual labour, or in any engineers' co-operative 
society, a member in receipt of salary or wages from the 
society, may, with the approval of the Registrar, be a 
member of the managing committee; 
(e) has been a member of the society for less than twelve 
months immediately preceding the date of such election or 
appointment: 
Provided that nothing in this clause shall apply in the 
case of a member of a labour co-operative society composed 
mainly of persons who live on manual labour; 
(f) has interest in any business of the kind carried on by the 
society of which he is a member; 
(g) who has taken loan or goods on credit from the society of 
which he is a member, or is otherwise indebted to such 
society, has defaulted— 
(i) in repayment of such loan or debt or in payment of 
the price of the goods taken on credit, as the case may 
be, within the date fixed for such repayment or payment 
or where such date is extended, within the extended 
date (such extension not to exceed ninety days), or 
169 
The West Bengal Co-operative Societies Act, 1973. 
[West Ben. Act 
(Chapter 111.—Status and management of co-operative 
societies.—Section 23.) 
(ii) where such loan or debt or the price of the goods taken 
on credit is to be paid in instalments, in payment of 
any instalment, 
and the amount in default or any part thereof has remained unpaid on 
the expiry of ninety days on and from the date of such default: 
Provided that the aforesaid bar on the ground of default 
shall cease to exist, immediately after the amount in default 
is paid in full. 
(5) A member shall not be eligible for being chosen a member of 
the managing committee of— 
(a) an apex society or a central society, if he is a member of 
the managing committee of two other such societies, or 
(b) any other co-operative society, if he is a member of the 
managing committee of five other co-operative societies. 
(6) A member of the managing committee of a co-operative society 
shall cease to hold office if he becomes subject to any of the 
disqualifications mentioned in sub-section (4) and sub-section (5), and 
if in spite of such cessation of membership, any person refuses to vacate 
his office, the Registrar shall, by an order in writing, remove him from 
such office, and any such refusal shall be deemed to be a contravention 
of the provisions of this Act. 
(7) The chairman or the secretary or any member of the managing 
committee of a co-operative society, who has taken loan or goods on 
credit from such society or is otherwise indebted to such society, shall, 
on his making default— 
(a) in repayment of such loan or debt or in payment of the price 
of the goods taken on credit, as the case may be, within 
the fixed date of repayment or payment, or where such date 
is extended, within the extended date (such extension not 
to exceed ninety days), or 
(b) where the loan or debt or the price of the goods taken on 
credit is to be paid in instalments, in payment of any 
instalment, 
and on such amount in default or any part thereof remaining unpaid on 
the expiry of ninety days on and from the date of such default—
(i) cease to be the chairman, secretary or member, as the case 
may be, and shall be deemed to have vacated his 
office, and on and from the date of such cessation 
shall not attend any meeting of such managing 
committee or otherwise participate in the management 
of the affairs of such society, and 
170 
The West Bengal Co-operative Societies Act, 1973. 
XXXVIII of 1973.] 
(Chapter 111.—Status and management of co-operative 
societies.—Section 23.) 
(ii) be disqualified for being member of the managing 
committee of any other co-operative society through 
election or by appointment or co-option till the amount 
in default is paid in full. 
(8) If in spite of cessation of office under circumstances mentioned 
in sub-section (7), the chairman, the secretary or a member of the 
managing committee of a co-operative society refuses to vacate his 
office, the Registrar shall, by an order in writing, remove him from such 
office and any such refusal shall be deemed to be a contravention of the 
provisions of this Act. 
(9) (a) Where a primary society which has taken loan or goods on 
credit from a central society or is otherwise indebted to a central society, 
defaults— 
(i) in repayment of such loan or debt or in payment of the price 
of the goods taken on credit, as the case may be, within 
the date fixed for such repayment or payment, or where 
such date is extended, within the extended date (such 
extension not to exceed ninety days), or 
(ii) where such loan or debt or the price of the goods taken on 
credit is to be paid in instalments, in payment of any 
instalment, 
and the amount in default or any part thereof remains unpaid on the 
expiry of ninety days on and from the date of such default, the member 
or members of the managing committee of such central society 
representing such defaulting primary society, if any, shall immediately 
cease to be member or members of the managing committee of such 
central society and shall be deemed to have vacated his or their office, 
and on and from the date of such cessation shall not attend any meeting 
of such managing committee or otherwise participate in the management 
of the affairs of such central society. 
(b) All members of such defaulting primary society referred 
to in clause (a) shall be disqualified for being members, through election, 
or by appointment or co-option, of the managing committee of any 
central society as representatives of such defaulting primary society, till 
the amount in default referred to in clause (a) is paid in full. 
(10) If in spite of the cessation of office under circumstances mentioned 
in clause (a) of sub-section (9), the member or members of the managing 
comm;ttee of such central society representing such defaulting primary 
society refuses or refuse to vacate his or their office, the Registrar shall, 
by an order in writing remove him or them from such office, and any 
such refusal shall be deemed to be a contravention of the provisions of 
this Act. 
171 
The West Bengal Co-operative Societies Act, 1973. 
[West Ben. Act 
Power to 
depute 
Government 
officers to 
manage 
affairs of a 
co-operative 
society. 
Dissolu-
tion and 
reconstitu-
tion of 
managing 
committee. 
(Chapter III—Status and management of co-operative 
societies.—Sections 24, 25.) 
(11) Any order of removal made by the Registrar under sub-section 
(6), sub-section (8), or sub-section (10) is not liable to be called in 
question in any court of law. 
(12) Where, under any of the circumstances referred to in 
sub-section (6), sub-section (7), or sub-section (9), any casual vacancy 
occurs in the membership of the managing committee of a co-operative 
society, such vacancy shall be filled up in such manner, within such time 
and for such period as may be prescribed. 
24. The State Government may, on the application of a co-operative 
society supported by a resolution of the managing comit,ee or the 
general body of members of the society or on the recommendation of 
the Registrar and on such conditions as may be prescribed, depute a 
Government officer to the service of the society for the purpose of 
managing its affairs, and the officer of the Government so deputed shall 
exercise such powers and perform such duties as may be prescribed: 
Provided that the Registrar may, on the application of a co-operative 
society supported by a resolution of the managing committee or the 
general body of members of the society or of his own motion, depute 
a Government officer, in respect of whom he is the appointing authority, 
to the service of the society for the aforesaid purposes, and the officer 
of the Government so deputed shall exercise such powers and perform 
such duties as may be prescribed. 
25. (1) If the Registrar is satisfied, for reasons to be recorded by 
him in writing, that the managing committee of a co-operative society 
is mismanaging its affairs, he may, under clause (b) of sub-section (1) 
of section 22, direct that, within such time as he may determine, a special 
general meeting of the society shall be held to dissolve and reconstitute 
the managing committee. 
Explanation.—In this sub-section, the expression "mismanaging its 
affairs" includes wilfully disobeying or wilfully failing to comply with 
any lawful order or direction issued by the State Government or the 
Registrar. 
(2) In any direction given under sub-section (1), the Registrar may, 
for reasons to be recorded by him in writing, order that all or any of 
the members of the outgoing managing committee shall, for such period 
not exceeding three years as he may determine, be disqualified for 
election or appointment as an officer of the society. 
(3) If the managing committee is not dissolved and reconstituted 
within the time determined, and in such manner as may be directed by 
the Registrar under sub-section (1), the Registrar may, by order, dissolve 
172 
The West Bengal Co-operative Societies Act, 1973. 
XXXVIll of 1973.] 
(Chapter 111—Status and management of co-operative 
societies.—Section 26.) 
the managing committee, and members thereof shall forthwith vacate 
their offices, and the Registrar shall thereupon appoint a managing 
committee with the nominees, if any, of the State Government on the 
managing committee which has been dissolved and with such members 
of the co-operative society as he thinks fit, to manage the affairs of the 
co-operative society for such period not exceeding one year, and to 
arrange for the constitution of a new managing committee by such date 
as the Registrar may determine. 
(4) An order under sub-section (3) shall be in writing, shall set forth 
the reasons for which they are made, and shall be made only after an 
opportunity has been given to the defaulting managing committee to 
state its objections, if any, thereto. 
26. (1) If, in the opinion of the Registrar,— 
(a) the managing committee of any co-operative society— 
(i) has persistently made defaults, or has been grossly 
negligent, in the performance of the duties imposed 
on it by this Act or the rules or by-laws, or 
(ii) has committed any act which is prejudicial to the 
interest of such society or other co-operative societies, 
Or 
(iii) has wilfully disobeyed or wilfully failed to comply 
with any lawful order or direction issued by the State 
Government or the Registrar; or 
(b) the affairs and business of a co-operative society have, due 
to persistent default or negligence in the performance of 
duties on the part of the members of the managing committee 
or a section thereof, or otherwise, come to a standstill, 
the Registrar may, after service of a notice upon such committee and 
giving such committee an opportunity of being heard, by an order in 
writing stating reasons therefor, dissolve such committee, the members 
of which shall forthwith vacate their offices and the Registrar shall 
appoint one or more administrators to manage the affairs of such society 
for such period not exceeding two years at a time as may be specified 
in the order and may also by an order in writing extend 

Excerpt shown. Open the full act in Lexace.

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