The West Bengal Co-operative Societies Act, 1983

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XLV of 1983 
THE WEST BENGAL CO-OPERATIVE 
SOCIETIES ACT, 1983. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta Gazette, 
Extraordinary, of the 23rd May, 1984.] 
[23rd May, 1984.] 
An Act to consolidate and amend the law relating to co-operative societies 
in West Bengal. 
WHEREAS it is necessary and expedient to make provisions to give a 
healthy impetus and a sense of purpose for the co-operative movement in 
West Bengal, to promote thrift, self-help and mutual aid amongst people 
with needs and interests in common, to provide for clean, devoted and 
efficient management relevant to the needs of, and infuse a new life into, 
the co-operative societies in West Bengal, to diversify their activities, put 
them on sound financial footing, and ensure democratic functioning, 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 to bring them within the fold of co-
operative movement, and for that purpose, to consolidate and amend the 
law relating to co-operative societies in West Bengal; 
It is hereby enacted in the Thirty-forth 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, 1983. 
(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 appoint, and different dates may be appointed for different 
provisions of this Act. 
Short title, 
extent and 
commence-
ment. 
309 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
Definitions. 
(Chapter I.—Preliminary.—Section 2.) 
2. In this Act, unless there is anything repugnant in the subject or 
context,— 
(1) "administrator" means an administrator appointed under 
section 30; 
(2) "apex society" means a co-operative society whose area of 
operation extends to the whole of West Bengal and the 
primary object of which is to promote the objects, and to 
provide facilities for the operation of other co-operative 
societies which are its members, and includes a State Co-
operative Bank; 
(3) "arbitrator" means an arbitrator appointed under section 96 
or section 97, and includes a Chief Arbitrator; 
(4) "audit officer" means a person appointed or authorised as 
such under section 90; 
(5) "board" means a board of directors for a co-operative society 
constituted under section 27; 
(6) "by-law" means a by-law registered under this Act, and 
includes an amendment thereof; 
(7) "central co-operative bank" has the same meaning as in the 
Reserve Bank of India Act, 1934; 	 2 of 1934. 
(8) "central co-operative land development bank" means a co-
operative society, the objects of which include the creation of 
funds for lending money to its members and to co-operative 
land development banks; 
(9) "central society" means a co-operative society having such 
area of operation within a district as may be prescribed, and 
includes a Central Co-operative Bank; 
(10) " '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 the matter of supply and production of 
consumer goods, and includes a federation of such co-
operative societies; 
(11) "co-operative farming society" means a co-operative society 
which has as its principal object the organising cultivation of 
lands held by it or by its members jointly or otherwise with a 
view to increasing agricultural production and employment 
by proper utilisation of land, labour and other resources; 
310 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 1983.] 
(Chapter l.—Preliminary.—Section 2.) 
(12) "co-operative land development bank" means a co-operative 
society, the objects of which include the creation of funds for 
lending money to its members on long-term for improvement 
of agricultural land and for other productive purposes. 
Explanation.—In this clause,— 
(i) "long-term" shall mean a term exceeding three years; 
(ii) "productive purpose" shall mean such effort, activity or 
constructions as may be prescribed. 
(13) "co-operative society" means a co-operative society registered 
or deemed to be registered under this Act; 
(14) "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 co-operative society in the event of its being wound up; 
(15) "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 co-operative society; 
(16) "co-operative year" means the year commencing on the first 
day of July; 
(17) "co-operative credit society" means a co-operative society, 
the primary object of which is to create funds for lending 
money to its members, and includes a credit union; 
(18) "co-operative housing society" means a co-operative society, 
the object of which is to provide its members with dwelling 
houses, apartments, or lands for construction of dwelling 
houses or apartments, and maintenance of common services 
in connection therewith, and includes a federation of such 
societies; 
(19) "co-operative range" means such area within the jurisdiction 
of an officer not below the rank of an Assistant Registrar of 
Co-operative Societies as may be prescribed; 
(20) "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; 
311 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
(Chapter 1.—Preliminary.—Section 2.) 
(21) "district co-operative union" means a co-operative society 
registered under this Act having its area of operation 
extending to the whole of a co-operative range and the 
primary object of which is to assist the State Co-operative 
Union in implementing its object and includes a central 
society; 
(22) " '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, or 
(ii) diploma holders in any branch of engineering, technology 
or agriculture, or 
(iii) certificate holders in any industrial trade, for their 
exclusive benefit, the percentage of degree or diploma 
holders in any branch of engineering or technology in 
the membership of the co-operative society being not 
less than sixty per cent.; 
(23) " 'farmers' service co-operative society" means an agricultural 
co-operative society, the primary object of which is to render 
assistance, financial or otherwise, to farmers (particularly 
small and marginal farmers), rural artisans and agricultural 
labourers; 
(24) "financing bank" includes a central co-operative bank, a 
State co-operative bank, a central co-operative land 
development bank, a primary co-operative bank, State Bank 
of India, or a nationalised bank or a regional rural bank, the 
object of which is to create funds for lending money to the co-
operative societies or other institutions or both, declared as 
such by the State Government; 
(25) "industrial co-operative society" means a co-operative society, 
the object of which includes manufacture and marketing of 
goods by or with the help of its members and providing 
supplies and services to them and to small producers and 
entrepreneurs, and includes a co-operative society established 
with the object of facilitating the operation of such society; 
(26) "Inspector of Co-operative Societies" means a person 
appointed as such by the Registrar; 
(27) "liquidator" means a liquidator appointed under section 100; 
312 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 1983.] 
(Chapter 1.—Preliminary.—Section 2.) 
(28) "member" means a person joining in an application for 
registration of a co-operative society which is subsequently 
registered or a person admitted to the membership of a co-
operative society after its registration under this Act, and 
includes a joint member. 
Explanation.—For the purpose of this clause 'joint 
member' shall mean any one of the persons (including 
husband and wife and father and son or unmarried daughter) 
jointly admittted to the membership of a co-operative 
society; 
(29) "net profit" means profit after deduction of establish-
ment charges, contingent charges, interest payable on loans 
and deposits, audit fees and such other sums as may be 
prescribed; 
(30) "notification" means a notification published in the Official 
Gazette; 
(31) "officer" includes a Chairman, Vice-Chairman, secretary, 
joint secretary, assistant secretary, managing director, 
manager, deputy manager, assistant manager, treasurer, 
director of a board, auditor elected, if any, from amongst 
members and any other person empowered under the rules or 
the by-laws to give direction relating to the affairs of a co-
operative society, and also includes a Government officer 
deputed by the State Government or the Registrar under 
section 28 or an administrator appointed by the State 
Government or the Registrar under section 30 to manage the 
affairs of a co-operative society; 
(32) "prescribed" means prescribed by rules made under this 
Act; 
(33) "primary co-operative bank" has the same meaning as in the 
2 of 1934. 	 Reserve Bank of India Act, 1934; 
(34) "primary co-operative credit society" means a co-operative 
society, the primary object of which is to create fund for 
lending money to its members; 
(35) "primary co-operative agricultural credit society" means a 
co-operative society, the primary object of which is to create 
fund for lending short-term crop loan and other agricultural 
inputs to its members. 
Explanation.—In this clause, "short-term" shall mean a 
term not exceeding one year; 
313 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
(Chapter l.—Preliminary.—Section 3.) 
(36) "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 ofthe rules or the 
by-laws; 
(37) "Registrar" means a Registrar appointed under section 9, and 
includes any other person appointed under that section to 
assist the Registrar; 
(38) "relative" has the same meaning as in the Companies Act, 1 of 1956. 
1956; 
(39) "Reserve Bank of India" means the Reserve Bank of India 
constituted under the Reserve Bank of India Act, 1934; 	 2 of 1934. 
(40) "rules" means the rules made by the State Government under 
this Act; 
(41) "State Co-operative Bank" has the same meaning as in the 
Reserve Bank of India Act, 1934; 
(42) "State Co-operative Union" means a co-operative society 
registered under this Act, having its area of operation extend-
ing to the whole of West Bengal, and the primary object of 
which is— 
(a) to spread education on co-operative principles and 
practices, 
(b) to arrange for training of the employees of co-operative 
societies, and of the employees deputed by the State 
Government, on co-operative principles and practices, 
(c) to deal with and solve the problems of co-operative 
societies which are its members, 
(d) to develop the existing co-operative societies, 
(e) to organise and promote new co-operative societies, 
(f) to propagate and publicise co-operative principles and 
ideas, and 
(g) to perform such other functions as may be prescribed; 
(43) "Tribunal" means the Co-operative Tribunal constituted under 
section 135; 
(44) "Trustee" means a trustee appointed under section 44. 
Repeal and 
savings. 
3. (1) The West Bengal Co-operative Societies Act, 1973, is 
hereby repealed. 
West Ben. 
Act 
XXXVIII of 
1973. 
314 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 1983.] 
2 of 1912. 
Ben. Act 
XXI of 
1940. 
West Ben. 
Act 
XXXVIII of 
1973. 
(Chapter 1.—Preliminary.—Sections 4-6.) 
(2) Notwithstanding such repeal, anything done or suffered or any 
action taken (including any rule made, any transaction entered into, any 
notification or notice issued with prospective or retrospective effect, any 
order passed, any appointment or registration made, any suit or proceeding 
commenced, any dispute decided or referred to arbitration, any right or 
title accrued, or any liability or obligation or penalty incurred) under the 
Co-operative Societies Act, 1912 or the Bengal Co-operative Societies 
Act, 1940 or the West Bengal Co-operative Societies Act, 1973 shall be 
deemed to have been done or suffered 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 co-operative society existing at the commencement of this 
Act which has been registered or deemed to have been registered under the 
Co-operative Societies Act, 1912 or the Bengal Co-operative Societies 
Act, 1940 or the West Bengal Co-operative Societies Act, 1973 shall be 
deemed to have been 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 or to the West Bengal Co-
operative Societies Act, 1973 occurrilg 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 
proceeding commenced in pursuance of any such enactment on or after the 
commencement of this Act shall be deemed to have been done or 
commenced and to have had effect as if any reference in such enactment 
to the Co-operative Societies Act, 1912 or to the Bengal Co-operative 
Societies Act, 1940 or to the West Bengal Co-operative Societies Act, 
1973 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. 
Construction 
of references 
to Act 2 of 
1912, Ben. 
Act XXI of 
1940 and 
West Ben. 
Act 
XXXVIII of 
1973. 
1 of 1956. 5. The provisions of the Companies Act, 1956 shall not apply to The 
Co-operative Societies. 	 Companies  
Act, 1956 
not to apply. 
6. No person other than a Co-operative Society shall trade or carry Prohibition 
on business under any name or title of which the word "Co-operative" of the use of 
or its equivalent in any language is a part: 	 the word 
Provided that nothing in this section shall apply to the use by any operative". 
 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. 
315 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
(Chapter I.—Preliminary.—Sections 7, 8.—Chapter IL— 
Registration.—Sections 9-11.) 
Exemption 
of co-
operative 
societies 
from the 
provisions of 
the Act. 
Officers of 
co-operative 
societies to 
be public 
servants. 
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 co-operative 
societies from the application of any of the provisions of this 
Act or the rules, or 
(b) direct that any of the provisions of this Act or the rules shall 
apply to any co-operative society or class of co-operative 
societies to such extent as may be specified in the notification: 
Provided that no notification to the prejudice of any co-
operative society or class of co-operative societies shall be 
issued without an opportunity being given to it to represent its 
case. 
8. Every officer of a co-operative society shall be deemed to be a 
public servant within the meaning of section 21 of the Indian Penal Code. 45 of 1860. 
CHAPTER II 
Regieration 
9. The State Government may appoint a person to be the Registrar of 
Co-operative Societies for West Bengal and such number of other persons 
to assist him as it may deem fit. 
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, of the Registrar under this Act, other than those 
specified in the First Schedule, on any person appointed under section 9 
to assist the Registrar. 
11. (1) Subject to the provisions of this Act and the rules, a co-
operative society established with the object of promoting the common 
interests of its members in accordance with co-operative principles and 
facilitating the operation of such co-operative society (including a co-
operative society formed by division of an existing co-operative society or 
by amalgamation of two or more existing co-operative societies) may be 
registered under this Act with limited liability: 
Appoint-
ment of 
Registrar 
and of 
persons to 
assist him. 
Conferment 
of powers 
and duties of 
Registrar on 
other 
persons. 
Co-operative 
societies 
which may 
be 
registered. 
316 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 1983.] 
(Chapter IL—Registration.--Section 12.) 
Provided that a co-operative society with unlimited liability functioning 
immediately before the commencement of this Act may continue to 
function as such or may convert itself into a co-opeMtive society with 
limited liability within such time and in such manner as may be prescribed: 
Provided further that a co-operative society registered under this Act 
may, subject to the provisions of this Act and the rules, by amendment of 
its by-laws, change the form, or the extent, of its liability. 
(2) The word "Limited" shall be the last word in the name of a co-
operative society registered under this Act. 
12. (1) No co-operative society, the by-laws of which permit admission Bar to 
as its member of a person carrying on transaction or business of the same registration.  
kind or nature as carried on by it shall be registered under this Act. 
(2) In particular and without prejudice to the generality of the provisions 
of sub-section (1),— 
(a) no co-operative credit society shall be registered if the by-
laws thereof do not specifically debar admission as its member 
of a person who is a money-lender by profession, 
(b) no consumers' co-operative society shall be registered if the 
by-laws thereof do not specifically debar admission as its 
member of a person who is a grocer by profession, and 
(c) no industrial co-operative society shall be registered if the by-
laws thereof do not specifically debar admission as its member 
of a person who is carrying on, on his own account, or has any 
interest in, any business of the kind carried on by it: 
Provided that the registration of an industrial co-operative 
society shall not be refused merely on the ground that its by-
laws provide for admission as its member of a person who is 
an ordinary artisan or a small entrepreneur carrying on 
business of the same kind carried on by it. 
(3) No co-operative society established or organised for the promotion 
of the economic interests of any particular community, class or group of 
people exclusively through any specific activity shall be registered if the 
by-laws thereof permit admission as its members of person other than 
those to be directly benefited by such activity. 
(4) No co-operative society established by tribals or farmers or 
females exclusively for their benefit shall admit as its member a person 
who is not a tribal or farmer or female, as the case may be. 
317 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
(Chapter 11.—Registration.—Section 13.) 
Application 
for 
registration. 
13. (1) An application for registration of a co-operative society 
and its by-laws shall be made to the Registrar in the prescribed manner 
with one copy to the District Co-operative Union in the case of a 
co-operative society within a district and to the State Co-operative 
Union in the case of a State level society. The application shall be 
accompanied by two copies of the proposed by-laws of the co-operative 
society. The persons by whom or on whose behalf the application is 
made shall furnish such information in regard to the co-operative society 
as the Registrar may require. 
(2) Where an application for registration of a co-operative society and 
its by-laws is made by individuals, the number of applicants shall not be 
less than ten, each of whom shall belong to a different family. 
Explanation.—For the purpose of this sub-section, a family shall be 
deemed to consist of husband, wife, minor sons and daughters, dependent 
widow of a predeceased son, minor sons and daughters of a dependent 
widow of a predeceased son and husband's dependent parents. 
(3) The State Government may prescribe the extent to which a 
co-operative society shall limit the number of its members. 
(4) (a) The Registrar shall dispose of an application for registration 
of a co-operative society (other than a co-operative housing society or an 
industrial co-operative society not entirely composed of rural artisans) and 
its by-laws within three months from the date of its receipt by him. 
(b) An application for registration of a co-operative housing society 
or an industrial co-operative society not entirely composed of rural artisans 
and its by-laws shall be disposed of by the Registrar within four months 
from the date of its receipt by him. 
(5) If the registration of a co-operative society and its by-laws is 
refused or the application for such registration is not disposed of by the 
Registrar within the period mentioned in clause (a) or clause (b), as the case 
may be, of sub-section (4), the Registrar shall transfer the application to the 
Co-operative Registration Council referred to in sub-section (7) with his 
comments, and shall inform, in writing, the applicant or the chief promoter 
of the application of such transfer, within one month of expiry of the 
aforesaid period. The Registration Council shall decide the matter within 
two months from the date of receipt of the application. 
(6) If the applicant or the chief promoter of the application does not 
receive any information from the Registrar under sub-section (5) within 
the period mentioned in that sub-section, he shall have the right to appeal 
to the Co-operative Registration Council within one month from the date 
of expiry of the said period. 
318 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 1983.] 
(Chapter 11.—Registration.—Sections 14-16.) 
(7) (a) The State Government shall constitute a council to be called 
the Co-operative Registration Council consisting of a Chairman and two 
other members. The member of the principal co-operative tribunal referred 
to in section 135 shall be the Chairman of the Co-operative Registration 
Council. Of the two other members, one shall be nominated by the State 
Government and the other shall be nominated by the State Co-operative 
Union. 
(b) The Co-operative Registration Council shall have jurisdiction 
throughout West Bengal and shall function in such manner as may be 
prescribed. 
14. (1) The Registrar shall decide all questions as to whether an 
application made under sub-section (1) of section 13 complies with the 
provisions of this Act and the rules and whether the co-operative society 
is eligible to be registered under sub-section (1) of section 11. 
(2) If the Registrar requires any particulars or papers for deciding the 
questions referred to in sub-section (1), he shall forthwith call for such 
particulars or papers from the applicant or the chief promoter of the 
application. 
Registrar to 
decide 
certain 
questions. 
15. (1) If the Registrar is satisfied that an application for registra- Registration. 
tion of a co-operative society and its by-laws is in accordance with 
the provisions of this Act and the rules, he shall, unless for reasons to 
be recorded in writing he thinks fit to refuse, register the co-operative 
society and its by-laws within the period mentioned in sub-section (4) of 
section 13. 
(2) If the Registrar fails to dispose of the application for registration 
of a co-operative society and its by-laws or if registration thereof is refused 
by him, he shall transfer the application to the Registration Council as 
required under sub-section (5) of section 13. 
16. When a co-operative society and its by-laws have been registered 
under sub-section (1) of section 15, the Registrar shall issue to the co-
operative society a certificate, attaching thereto a copy of the by-laws, in 
the prescribed form, and such certificate shall be the conclusive evidence 
that the co-operative society and its by-laws have been duly registered 
under this Act, unless it is proved that the registration of the co-operative 
society has been cancelled or its by-laws amended in accordance with the 
provisions of section 17 or section 18. 
Evidence of 
registration. 
319 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
(Chapter II.—Registration.—Sections 17, 18.) 
Amendment 
of by-laws. 
Power of 
Registrar to 
direct 
amendment 
of by-laws. 
17. (1) A co-operative society may make by-laws for carrying out its 
functions under this Act or the rules and such by-laws shall not be valid 
unless they have been registered under sub-section (1) of section 15. 
(2) A co-operative society may amend its by-laws from time to time 
but no such amendment shall be valid unless it is registered under sub-
section (3) of this section. 
(3) Every proposal for amendment of by-laws of a co-operative 
society shall be forwarded to the Registrar. If the Registrar is satisfied that 
the proposed amendment is not inconsistent with the provisions of this Act 
or the rules, he shall, unless for reasons to be recorded in writing he thinks 
fit to refuse, register the amendment within three months or, if it relates to 
a co-operative housing society or an industrial co-operative society not 
entirely composed of rural artisans, within four months from the date of its 
receipt and forward a copy thereof together with a certificate in the 
prescribed form, and such certificate shall be the conclusive evidence that 
the amendment has been duly registered under this Act: 
Provided that the Registrar shall not refuse to register any amendment 
of by-laws without giving the co-operative society an opportunity of 
making representation in the prescribed manner. 
(4) If the Registrar refuses to register any amendment of by-laws, he 
shall communicate the order of refusal with reasons therefor within three 
months or, in the case of a co-operative housing society or an industrial 
co-operative society not entirely composed of rural artisans, within four 
months from the date of receipt of the amendment to the co-operative 
society in the prescribed manner. 
(5) If any amendment of by-laws proposed by a co-operative society 
is refused by the Registrar under sub-section (4), the co-operative society 
may make an appeal against the decision of the Registrar to the Co-
operative Registration Council, within one month from the date of receipt 
of the decision of the Registrar. The decision of the Registration Council 
concerned shall be final in this regard. 
18. (1) If, of his own motion or on the application of the financing 
bank concerned, it appears to the Registrar that any amendment of the 
by-laws of a co-operative society is necessary or desirable in the interest 
of such co-operative society, the Registrar or any person authorised by him 
in this behalf may by order direct the co-operative society to call a special 
general meeting in the prescribed manner to make the amendment and 
apply for registration thereof within such time as he may specify in the 
order. If the co-operative society fails to make the amendment and apply 
for registration thereof within the time specified in the order, the Registrar 
320 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 19831 
(Chapter 111.—Transfer of assets and liabilities, and division and 
amalgamation of co-operative societies.—Section 19.) 
shall call a special general meeting at the cost of the co-operative society 
for consideration of his proposal for amendment of its by-laws. 
(2) If the co-operative society fails to make the amendment and apply 
for registration thereof within the specified time, the Registrar shall, 
after consulting the financing bank of which the co-operative society is 
a member or a debtor, as the case may be, make and register the amend-
ment and forward a copy thereof to the co-operative society together 
with a certificate which shall be the conclusive evidence that the 
amendment has been registered and, subject to the decision of appeal, if 
any, such amendment shall be binding upon the co-operative society and 
its members. 
CHAPTER III 
Transfer of assets and liabilities, and division and 
amalgamation of co-operative societies 
19. (1) Any co-operative society may, by a resolution passed by a 
majority of not less than two-thirds of the members thereof present and 
voting at a general or special general meeting,— 
(a) transfer, wholly or in part, its assets and liabilities to any other 
co-operative society, or 
(b) divide itself to form two or more new co-operative societies. 
(2) Any two or more co-operative societies may, by resolution passed 
by not less than two-thirds of the members present and voting at a general 
or special general meeting of each such co-operative society, amalgamate 
themselves and form a new co-operative society together with the assets 
and liabilities of the co-operative societies forming such new co-operative 
society. 
(3) A resolution passed under sub-section (1) or sub-section (2) shall 
contain all particulars relating to the registration, transfer of assets and 
liabilities, and division or amalgamation, as the case may be, of the 
concerned co-operative societies. 
(4) When a resolution has been passed under sub-section (1) or 
sub-section (2), the co-operative society or the co-operative societies 
concerned shall give notice thereof in writing to all its or their members 
and creditors, within thirty days from the date of the general or special 
general meeting, as the case may be, at which the resolution is passed 
and notwithstanding anything contained in any by -law or contract, any 
member of any such co-operative society shall have option to withdraw 
Transfer of 
assets and 
liabilities, 
and division 
and 
amalgama-
tion of co-
operative 
societies. 
321 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
(Chapter III.—Transfer of assets and liabilities, and division and 
amalgamation of co-operative societies.—Section 19.) 
his share or deposit or any creditor of any such co-operative society shall 
have option to demand repayment of his loan by such co-operative society 
within one month from the date of service of such notice. Such resolu-
tion shall not take effect until all the claims of the members and the 
creditors of any such co-operative society who exercise option under this 
sub-section have been met in full. 
(5) On receipt of an application for registration of a new co-operative 
society formed under sub-section (1) or sub-section (2), the Registrar shall 
satisfy himself that the resolution is effective under sub-section (4) and the 
application and the by-laws of the co-operative society are in accordance 
with the provisions of this Act,and the rules, and shall, unless for reasons 
to be recorded in writing he thinks fit to refuse, register the new co-
operative society and the by-laws under sub-section (1) of section 15 and 
issue a certificate under section 16. 
(6) After a new co-operative society formed by amalgamation of two 
or more co-operative societies or by division of a co-operative society has 
been registered, the registration of the co-operative societies which are 
amalgamated or the co-operative society which is divided shall stand 
cancelled and such co-operative societies shall be deemed to have been 
dissolved and shall cease to exist. 
(7) When the assets and liabilities of a co-operative society are 
transferred to any other co-operative society or societies the transferor 
society shall be deemed to have been dissolved and shall cease to 
exist. 
(8) Notwithstanding anything to the contrary contained in any other 
law for the time being in force,— 
(a) the registration of new co-operative societies formed by 
division of a co-operative society shall be a sufficient con-
veyance to vest the assets and liabilities of the co-operative 
society, which is divided, in such new co-operative societies 
in accordance with the resolution passed under sub-
section (1); 
(b) when a resolution is passed by a co-operative society 
under sub-section (2), the resolution shall, if accepted by the 
transferee society by a resolution passed by a majority of not 
less than two-thirds of the members present and voting at a 
general or special general meeting of such society, be a 
sufficient conveyance to vest the assets and liabilities of the 
transferor societies in the transferee society. Copies of such 
resolutions of the transferor societies and the transferee 
society shall be sent to the Registrar for record; and 
322 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 1983.] 
(Chapter 11L—Transfer of assets and liabilities, and division and 
amalgamation of co-operative societies.—Section 20.) 
(c) the registration of a new co-operative society formed by 
amalgamation shall be a sufficient conveyance to vest the 
assets and liabilities of the co-operative societies, which are 
amalgamated, in the new co-operative society in accordance 
with the resolution passed under sub-section (2). 
20. (1) If the Registrar is satisfied after due consultation with the 
respective apex society in the manner prescribed that it is essential in the 
public interest or in the interest of co-operative movement or for the 
purpose of securing the proper management of any co-operative society 
that any two or more co-operative societies should be amalgamated or 
reorganised, then notwithstanding anything contained in section 19, the 
Registrar may by a notice direct the said co-operative societies, stating 
reasons therefor, to cause such amalgamation or reorganisation, as the 
case may be, with such constitution, property, rights, interest, authority, 
liabilities, duties and obligations as may be specified in the notice within 
three months of the date of the notice. If the direction is not acted upon or 
complied with within the said period, the Registrar shall cause amalgamation 
or reorganisation, as the case may be, of the concerned co-operative 
societies by an order in writing and communicate the order to all concerned 
and shall issue registration certificate or certificates under section 16 in 
respect of the co-operative society or societies formed by amalgamation or 
reorganisation, as the case may be, and the by-laws thereof framed by him: 
Provided that notwithstanding anything to the contrary contained in 
any other law in force for the time being, no order for amalgamation or 
reorganisation of any co-operative bank shall be made without prior 
consultation with the Reserve Bank of India: 
Provided further that the Registrar shall not order amalgamation of a 
co-operative society which has a total accumulated loss exceeding its 
assets with any other co-operative society earning profit. 
(2) No order shall be made under sub-section (1) unless— 
(a) a draft of the order has been sent to each of the co-operative 
societies in the prescribed manner inviting suggestions or 
objections, if any, within such period, not being less than 
three months, as the Registrar may fix in this behalf; and 
(b) the Registrar has considered the suggestions or objections, if 
any, received from the co-operative societies or from any 
member, class of members, creditors or class of creditors 
thereof, and made such modification in the draft as he may 
deem fit. 
Powers of 
Registrar to 
order 
amalgama-
tion or 
reorganisation 
of co-
operative 
societies. 
323 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
(Chapter 111.—Transfer of assets and liabilities, and division and 
amalgamation of co-operative societies.—Section 21.) 
(3) An order made under sub-section ( 1) may contain such incidental, 
consequential or supplemental provisions as may, in the opinion of the 
Registrar, be necessary for the purpose of the amalgamation or 
reorganisation, as the case may be. 
(4) Every member or creditor of any of the co-operative societies to 
be amalgamated or reorganised, who has filed objections under clause (a) 
of sub-section (2), shall be entitled to receive after the order has been made 
under sub-section (1) his share or deposit, if he is a member, or the amount 
in satisfaction of his claim, if he is a creditor. 
(5) An order made under sub-section (1) shall take effect,— 
(a) when no appeal from such order is preferred under section 
136, on the expiry of the time allowed for preferring an 
appeal, or 
(b) where an appeal from such order is preferred under section 
136, upon rejection of the appeal by the appellate authority. 
(6) Notwithstanding anything to the contrary contained in any other 
law for the time being in force, an order made under sub-section (1) for 
amalgamation or reorganisation shall, upon taking effect under sub-
section (5), be a sufficient conveyance to vest the assets and liabilities as 
per schedule of assets and liabilities specified in the order and the co-
operative societies which are amalgamated or reorganised shall be deemed 
to have been dissolved and shall cease to exist. 
Amalgam-
ation of any 
central co-
operative 
bank with 
any other 
central co-
operative 
bank or with 
the State Co-
operative 
Bank. 
21. (1) If the State Govenment is of opinion that— 
(a) in the public interest, or 
(b) in the interest of the depositors, or 
in order to secure proper management of any central co-
operative bank, or 
(d) in the interest of the co-operative movement in the State as a 
whole, or 
(e) in the interest of the co-operative banking system in the State 
as a whole, or 
(f) to make co-operative credit adequately available to the primary 
co-operative credit societies of any particular area in the State 
from the State Co-operative Bank, 
it is necessary so to do, the State Government may, by an order published 
in the Official Gazette stating reasons therefor, make a scheme for the 
amalgamation of any central co-operative bank (in this section hereinafter 
(c) 
324 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 1983.] 
(Chapter 111.—Transfer of assets and liabilities, and division and 
amalgamation of co-operative societies.—Section 21.) 
referred to as the transferor bank) with any other central co-operative bank 
or the State Co-operative Bank (in this section hereinafter referred to as the 
transferee bank). 
(2) A scheme referred to in sub-section (1) may provide for all or any 
of the following matters, namely:--- 
(a) the transfer of the business, properties (movable and 
immovable), assets (including cash balances and reserve 
funds), rights, privileges, liabilities, debts and obligations of 
the. transferor bank to the transferee bank, on such terms and 
conditions as may be specified in the said scheme; 
(b) the reduction of the interest or rights, which the members, 
depositors and other creditors have in or against the transferor 
bank before its amalgamation, to such extent as the State 
Government considers necessary in the public interest or in 
the interest of the members, depositors and other creditors of 
the transferor bank or for the maintenance of the business of 
such bank, having due regard to the proportion of the assets 
of the transferor bank to its liabilities; 
(c) the payment in cash or otherwise to the depositors and other 
creditors in full satisfaction of their claims— 
(i) in respect of their interest or rights in or against the 
transferor bank before or after its amalgamation, or 
(ii) where the interest or rights as aforesaid in or against the 
transferor bank has or have been reduced under clause 
(b), in respect of such interest or rights as so reduced; 
(d) (i) the allotment of shares in the transferee bank to the 
members of the transferor bank against the shares held 
by them in the transferor bank before the amalgamation, 
whether their interest in such shares has been reduced 
under clause (b) or not, or 
(ii) where the members of the transferor bank elect to 
receive payment in cash and not in shares of the transferee 
bank, or where it is not possible to allot shares in the 
transferee bank to such members against the shares held 
by them in the transferor bank, the payment to such 
members in cash in full satisfaction of their claims in 
respect of their interest in the shares of the transferor 
bank or, where such interest has been reduced under 
clause (b), in respect of their interest in the shares as so 
reduced: 
325 
The West Bengal Co-operative Societies Act, 1983. 
[West Ben. Act 
(Chapter 111—Transfer of assets and liabilities, and division and 
amalgamation of co-operative societies.—Section 21.) 
Provided that the aforesaid scheme shall secure— 
(i) that allotment of shares or payment in cash in 
favour of the members of the transferor bank under 
clause (d) shall not be made until all the depositors 
and creditors of the transferor bank have been paid 
under sub-clause (i), or, as the case may be, under 
sub-clause (ii), of clause (c), and 
(ii) that such allotment of share or payment in cash in 
favour of the members of the transferor bank shall 
be made only out of the surplus of the assets of the 
transferor bank, if any, that may be left after payment 
to the depositors and creditors as indicated in sub-
clause (i); 
the continuance of the services of the employees of the 
transferor bank in the transferee bank on terms and conditions 
of service not being less advantageous than those to which 
they were entitled immediately before the amalgamation: 
Provided that the transferee bank may not by an order in 
writing allow any employee of the transferor bank to continue 
in the services of the bank if, in the opinion of the transferee 
bank, the continuance of such employee in its service would 
be detrimental to its interest, and thereupon the services of 
such employee shall stand terminated on and from the date of 
such order, and the transferee bank shall, within three months 
of the date of the aforesaid order, make payment to such 
employee such compensation as such employee may be 
entitled under any law relating to the industrial disputes in 
force in the State and such pension, gratuity, provident fund 
and other retirement benefits as are ordinarily admissible to 
him under the rules of the transferor bank in force imme-
diately before the amalgamation. 
(3) (a) An order under sub-section (1) shall not be made unless a 
copy of the proposed order including the scheme is sent to the transferor 
bank and the transferee bank calling upon such banks to invite objections 
or suggestions from the members, creditors and depositors thereof and to 
submit such objections and suggestions together with their own suggestions 
and objections, if any, to the State Government within six weeks from the 
date of receipt of the copy of the proposed order by such banks. 
(e) 
326 
The West Bengal Co-operative Societies Act, 1983. 
XLV of 1983.] 
(Chapter 111—Transfer of assets and liabilities, and division and 
amalgamation of co-operative societies.—Section 22.) 
(b) The State Government shall consider the suggestions and objections 
which may be received under clause (a), make such modifications in the 
proposed order including the scheme as it thinks just and fit and finalise the 
proposed order including the scheme in consultation with the Reserve 
Bank of India. 
(4) An order under sub-section (1) may contain such incidental, 
consequential or supplemental provisions as the State Government may 
consider necessary to give effect to the proposed amalgamation 

Excerpt shown. Open the full act in Lexace.

‹ Prev All West Bengal acts Next ›