The West Bengal Co-operative Societies Act, 2006

Registered No. WB/SC-247 	 No. WB(Part-M)/2010/SAR-13 
Frye 
ItoMatti aptte 
*islAcf q11.  
Extraordinary 
Published by Authority 
JYAISTHA 4] 	 TUESDAY, MAY 25, 2010 	 [SAKA 1932 
PART III—Acts of the West Bengal Legislature. 
GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
NOTIFICATION 
No. 712-L.-25th May, 2010.—The following Act of the West Bengal Legislature, haVing been assented to by 
the President of India, is hereby published for general information:— 
West Bengal Act XL of 2006 
THE WEST BENGAL CO-OPERATIVE SOCIETIES 
ACT, 2006. 
[Passed by the West Bengal Legislature.] 
[Assent of the President of India was first published in the Kolkata Gazette, 
Extraordinary, of the 25th May, 2010.] 
CONTENTS 
CHAPTER I 
Preliminary 
Section 
1. Short title, extent and commencement. 
2. State policy on Co-operative societies. 
3. Co-operative principles. 
2 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 [PART III 
The West Bengal Co-operative Societies Act, 2006. 
Section 
4. Definitions. 
5. Interpretation of words and expression used in the Act. 
6. Repeal and savings. 
7. Construction of reference to Act of 1912, Ben. Act XXVI of 1940 , West Ben. 
Act XXXVIII of 1973 and West Ben. Act XLV of 1983. 
8. The Companies Act, 1956, not to apply. 
9. The prohibition of the use of the word "Co-operative". 
10. Officers of Co-operative societies to be public servants. 
11. Exemption of Co-operative societies from the provisions of the Act. 
CHAPTER II 
Registration 
12. Appointment of Registrar and Director of Co-operative Audit and other persons 
to assist them. 
13. Conferment of powers and duties of Registrar and Director of Co-operative 
Audit on other persons. 
14. Co-operative society which may be registered. 
15. Bar to registration. 
16. Application for registration. 
17. Co-operative society to be body corporate. 
18. Display of name. 
19. Amendment of by-laws. 
20. Bye-Laws. 
CHAPTER III 
Change of liabilities, transfer of assets and division and 
amalgamation of Co-operative societies. 
21. Transfer of assets and liabilities and division and amalgamation of Co-operative 
societies. 
22. Powers of Registrar to order division, reorganisation or amalgamation of Co-
operative societies. 
23. Amalgamation of any Central Co-operative Bank with any other Central Co-
operative Bank or with the State Co-operative Bank. 
24. Change of name and its effect. 
25. Promotion of subsidiary organisation. 
26. Partnership of Co-operative societies. 
PART HI] 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 3 
The West Bengal Co-operative Societies Act, 2006. 
CHAFFER IV 
Status and management of Co-operative society 
Section 
27. General body of a Co-operative society. 
28. Final authority of a Co-operative society. 
29. Annual general meeting. 
30. Half-yearly general meeting. 
31. Special general meeting. 
32. Management of Co-operative societies. 
33. Deputation of Government officers to manage the affairs of Co-operative 
society. 
34. Dissolution and reconstitution of board. 
35. Dissolution of board and appointment of administrator. 
36. Dissolution of the board in certain cases and appointment of special officer. 
37. Summoning of meeting of Co-operative society and rescinding or suspending 
resolution thereof. 
38. Reservation of seats on board. 
CHAPTER V 
Duties and obligations of Co-operative societies 
39. Address of Co-operative society. 
40. Change of name and its effect. 
41. Books and documents to be open to inspection by members. 
42. Affiliation to State and Regional Co-operative Union. 
43. Appointment of persons in the service of a Co-operative society. 
44. Restrictions on borrowings. 
45. Issue of debentures. 
46. Vesting of assets of Co-operative society in the Trustees upon issue of 
debenture. 
47. Issue of bonds. 
48. Issue of preference shares. 
49. Application for loan. 
50. Loans and advances to members and non-members. 
51. Power of State Government to give financial assistance. 
52. Limitation. 
53. Debts due to Co-operative societies to be first charge. 
54. Charge on immovable property of members borrowing from certain Co- 
operative societies. 
55. Loan by Gehan. 
56. Appointment of sale officer. 
57. Utilisation of the sale proceeds. 
58. Charge and set off of shares and interests. 
59. Deduction of dues to Co-operative societies from members and sureties. 
60. Exemption from compulsory registration of instruments relating to shares and 
debentures of Co-operative and mortgage deeds executed in favour of Co-
operative agriculture and rural development bank or primary Co-operative 
society. 
61. Power to remit duties, fees, etc. and to prevent preference and exemption. 
62. Compromise or arrangement between Co-operative society and its creditor. 
4 	
THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 [PART III 
The West Bengal Co-operative Societies Act, 2006. 
CHAPTER VI 
Member of Co-operative and their duties, rights, accountability 
privileges and liabilities. 
Section 
63. Eligibility for membership of Co-operative society. 
64. Admission as member. 
65. Votes of members. 
66. Utilisation of loans. 
67. Share or interest not liable to attachment. 
68. Liability of members. 
69. Liability of past member or estate of deceased member. 
70. Disposal of deceased member's share or interest. 
71. Disposal of share or interest of member on expulsion or resignation or on 
becoming insane. 
72. Restriction on transfer or possession of and interest in land held under 
Co-operative society. 
73. Disposal of share of interest of member of dissolved Co-operative society. 
74. Disposal of moneys of the deceased, expelled, resigned or insane member. 
75. Restrictions on holding of shares. 
76. Nomination by member. 
77. Restriction on transfer of shares and interest. 
78. Redemption of shares. 
CHAFFER VII 
Properties and funds of Co-operative societies 
79. Investment of funds. 
80. Co-operative Education Fund. 
81. Bad Debt Fund. 
82. Reserve Fund. 
83. Employees' Provident Fund. 
84. Retirement Benefit Fund. 
85. Creation and maintenance of special funds. 
86. Distribution of profit. 
CHAPTER VIII 
Special provisions for housing Co-operative societies 
87. Eligibility for membership of a housing Co-operative society. 
88. Type of housing Co-operative societies to be registered. 
89. First general meeting of a housing Co-operative society. 
90. Annual general meeting of housing Co-operative society. 
91. Unit of assessment. 
92. Rights of members. 
93. Restrictions on letting out of house or flat by a member in housing Ca 
operative society. 
PART III) 	 THE KOLKATA GAZE11E, EXTRAORDINARY, MAY 25, 2010 	 5 
The West Bengal Co-operative Societies Act, 2006. 
CHAPTER IX 
Co-operative Service Commission, Co-operative Registration 
Council and Co-operative Election Commission. 
Section 
94. Co-operative Service Commission. 
95. Co-operative Registration Council. 
96. Co-operative Election Commission. 
CHAPTER X 
Audit, inspection and inquiry 
97. Audit of accounts of Co-operative society. 
98. Audit report. 
99. Inspection by Registrar or financing bank or apex Co-.operative society or 
Central Co-operative society. 
100. Inquiry by Registrar. 
101. Cost of inspection or inquiry. 
CHAPTER XI 
Settlement of disputes 
102. Dispute to be filed before Registrar. 
103. Settlement of disputes. 
104. Appointment of forum of arbitrators. 
105. Force and effect of certain award. 
CHAPTER XII 
Dissolution of Co-operative society 
106. Dissolution of Co-operative society by the Registrar on basis of report of 
inspection, inquiry etc. 
107. Dissolution of Co-operative society .by Registrar at instance of board or its 
members. 
108. Dissolution of Co-operative society by Registrar of his own motion. 
109. Order of dissolution to be published and communicated. 
110. Appointment or removal of liquidator. 
111. Powers and obligation of liquidator. 
112. Priority of contribution assessed by liquidator. 
113. Cancellation of order of dissolution. 
6 	
THE KOLKATA GAZE11E, EXTRAORDINARY, MAY 25, 2010 	 [PART III 
The West Bengal Co-operative Societies Act, 2006. 
CHAPTER XIII 
Special provisions for State Co-operative Bank, Co-operative Agriculture 
and Rural Development Bank, Central Co-operative Bank, Primary 
Co-operative Credit Society, Apex Housing Co-operative Society 
and Urban Co-operative Bank. 
Section 
114. Payment of prior debt of mortgagor. 
115. Procedure for dealing with applications for loan: 
116. Restriction on transfer of, or charge on, equity of redemption. 
117. Mortgage not to be questioned on insolvency of mortgagor. 
118. Priority of mortgage over certain loans. 
119. Constructive borrowings. 
120. Power to distrain and sale. 
121. Application of the proceeds of distrain and sale. 
122. Power to bring mortgaged property to sale and delivery possession in respect 
of property sold without intervention of court. 
123. Right to purchase and sell under this Chapter. 
124. Title of purchaser not to be questioned. 
125. Appointment of Receiver. 
126. Power of Co-operative bank or Co-operative societies etc. if mortgaged 
property is destroyed or security becomes insufficient. 
127. Power of trustee or West Bengal State Co-operative and rural development 
bank to direct or to take certain action. 
128. Officers of agriculture and rural development bank etc. not to bid on personal 
account at sales. 
129. Exemption from personal attendance. 
130. Power to Co-operative agriculture and rural development bank etc. to receive 
money notwithstanding transfer of mortgage deed to West Bengal State Co-
operative agriculture and rural development bank etc. 
131. Mortgage executed by members of joint Hindu family. 
132. Special provisions for Co-operative agriculture and rural development bank to 
apply to branches of West Bengal State Co-operative agriculture and rural 
development bank. 
133. Provision of sections 123, 124 and 127 to apply to loans issued against Gehan. 
134. Certain other provisions relating to urban co-operative banks. 
CHAPTER XIV 
Enforcement of obligation and recovery of sums due 
135. Access to documents etc. 
136. Power to enforce attendance of witness and production of documents. 
137. Delivery of possession of books, accounts etc. of Co-operative society. 
138. Power to direct conditional attachment. 
139. Power to direct payment of dues. 
140. Charge and surcharge. 
141. Penalty for certain misdemeanours. 
142. Registrar's power to enforce performance of obligations. 
143. Recovery or sums due. 
144. Acts of Co-operative society not to be invalidated by certain defects. 
PART 	 THE KOLKATA GAZFTTE, EXTRAORDINARY, MAY 25, 2010 	 7 
The West Bengal Co-operative Societies Act, 2006. 
CHAPTER XV 
Jurisdiction, Appeal and Review 
Section 
145. Indemnity and bar to jurisdiction of Courts. 
146. Tribunal. 
147. Appellable orders, appellate authority and period of limitation. 
148. Review and revision. 
CHAFFER XVI 
Offences, penalties and procedures 
149. Offences and penalties. 
150. Cognizance of offence. 
151. Presumption raised by entry in register of members. 
152. Proof of entry in book of Co-operative society. 
153. Punishment for corrupt practices. 
CHAPTER XVII 
Miscellaneous 
154. Overriding effect of the Act. 
155. Co-operative bank to get insured. 
156. Power to add to the Fifth Schedule. 
157. Power to make rules. 
SCHEDULES 
— Power exclusively exercisable by the 
Registrar. 
— Recovery of sums due 
— Appeals 
— Offences and penalties 
— Co-operative societies 
— Power exercisable by the Director of 
Co-operative Audit. 
FIRST SCHEDULE 
SECOND SCHEDULE 
THIRD SCHEDULE 
FOURTH SCHEDULE 
FIFTH SCHEDULE 
SIXTH SCHEDULE 
8 	
THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 [PART III 
THE WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 2006 
(Chapter L—Preliminary.--Sections 1-3.) 
An Act to consolidate and amend the law relating to Co-operative societies in West 
Bengal. 
WHEREAS in order to infuse a new life into the Co-operative movement of 
West Bengal on the face of the new challenge of globalisation and liberalization of 
Indian Economy, it is necessary and expedient to make provisions to give healthy 
impetus and a sense of purpose for the Co-operative movement in West Bengal, to 
facilitate the voluntary formation and democratic functioning of the Co-operative 
societies in the State, to ensure members' involvement in making decisions, to 
make the Co-operative societies self-reliant and vibrant by changing the vision and 
mission of the institutions as required to face a new competitive economic scenario 
to promote thrift, self-help and mutual aid amongst the people with needs and interest 
in common, to provide for transparent, devoted and efficient management and services 
relevant to the needs of the Co-operatives, to diversify their activities, to put them 
on sound financial footing and 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 and poorer section 
of the community including womenfolk and to bring them within the fold of 
Co-operative movement and for that purpose to consolidate and amend the law relating 
to the Co-operative societies in West Bengal. 
It is hereby enacted in the Fifty-seventh Year of the Republic of India, by the 
Legislature of West Bengal, as follows:— 
CHAPTER I 
Preliminary 
Short title, extent 
and commence-
ment. 
State policy on 
Co-operative 
societies. 
Co-operative 
principles. 
1. (1) This Act may be called the West Bengal Co-operative Societies Act, 
2006. 
(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, and diferent dates may be appointed for 
different provisions of this Act. 
2. (1) It shall be the policy of the State to promote Co-operative societies, which 
are instruments of equity, social justice and economic development in fulfilment 
of the Directive Principles of the State Policy as enshrined in the Constitution of 
India. 
(2) Save as otherwise expressly'provided in this Act, the State shall not interfere 
in the management and operation of the Co-operative societies and shall recognise 
Co-operative societies as democratic institutions owned, managed and controlled by 
members for their economic and social betterment, operating their business based on 
mutual aid and Co-operative principles. 
3. The following shall constitute the Co-operative principles:— 
(i) membership in Co-operative societies shall be voluntary and available 
irrespective of caste, creed, race and religion to all persons who can 
make use of its services and are willing to accept the responsibilities 
of membership; 
PART III] 
	 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 9 
The West Bengal Co-operative Societies Act, 2006. 
_(Chapter L—Preliminary.—Section 4.) 
(ii) Co-operative societies are democratic organisations controlled by their 
members who actively participate in setting their policies and making 
decisions. Their affairs shall be managed and administered by persons 
elected or appointed in the manner agreed by the members and 
accountable to them. Every member of a Co-operative society, other 
than a nominal member, shall have equal right of voting in accordance 
with the principle of "one member, one vote"; 
(iii) member holding share capital shall only receive a strictly limited 
compensation, by way of dividend, if any; 
(iv) the economic results, arising out of the operations of a Co-operative 
society belonging to the members of that Co-operative society shall 
be distributed in such a manner as to avoid one Member gaining at the 
expenses of other. 
This may be done by decision of the members as follows:— 
(a) by provision for development of the business of the Co-operative 
societies; 
(b) by provision of common services; and 
(c) by distribution among the members in proportion to their transactions 
with the Co-operative societies; 
(v) as autonomous, self-help organisations, controlled by their members, 
Co-operative societies, if they enter into agreements with other 
organisations, including Governments or raise capital from external 
sources, they can do so on terms that ensure democratic control by their 
members and maintain their Co-operative autonomy; 
(vi) all Co-operative societies shall make provision for the education of 
their members, officers and employees and of the general public, in 
the principles and techniques of co-operation, both economic and 
democratic; 
(vii) all Co-operative societies, in order to serve better the interest of their 
members and their communities, shall actively co-operate in every 
practical way with other Co-operative societies at a local, national and 
international levels having as their aim the achievement of unity of 
action by co-operators throughout the world; and 
(viii) all Co-operatives shall have concern for the communities and shall 
work for the sustainable development of their communities through 
policies approved by their members. 
Definitions. 4. In this Act, unless there is anything repugnant in the subject or context,-- 
(1) "administrator" means an administrator appointed under section 35; 
(2) "apex Co-operative society" means a Co-operative society whose area 
of membership 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 West Bengal State Co-operative Bank Limited and West Bengal 
State Co-operative Agriculture and Rural Development Bank Limited; 
(3) "arbitrator" means an arbitrator appointed under section 103 and 
includes a board of arbitrators and a forum of arbitrators; 
(4) "area of membership" means the area as specified in the by-laws of a 
Co-operative society from which the membership is drawn; 
I0 	 THE KOLKATA GAZET'T'E, EXTRAORDINARY, MAY 25, 2010 	 [PART HI 
The West Bengal Co-operative Societies Act, 2006. 
(Chapter L—Preliminary.—Section 4.) 
(5) "auditor" means a person appointed or authorised to act as an auditor 
under section 97; 
(6) "audit range" means an area over which an audit officer not below the 
rank of an Assistant Director of Co-operative Audit exercises his 
jurisdiction; 
(7) "block-level mahila self-help group Co-operative societies" means a 
credit Co-operative society formed by the self-help groups consisting 
of women members only within the administrative jurisdiction of a 
community development block; 
(8) "board" means a board of directors, the governing body of a Co-operative 
society constituted under section 32; 
(9) "borrowed capital" means the total of loans, deposits and such other 
borrowings as the Board of a Co-operative Society may decide; 
(10) "by-law" means a by-law registered under this Act and includes an 
amendment thereof; 
(11) "Central Co-operative bank" has the same meaning as in the National 
Bank for Agriculture and Rural Development Act, 1981; 	 61 of 1981. 
(12) "State Co-operative agriculture and rural development bank" means a Co-
operative, the primary object of which include the creation of funds for 
lending money to its members and to the Co-operative agriculture and 
rural development banks; 
(13) "Central Co-operative 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 within an area as may be prescribed and includes 
a Central Co-operative Bank Ltd.; 
(14) "consumer 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 and other consumers as may be required in the 
matter of supply and production of consumer goods and includes a 
federation of such Co-operative societies; 
(15) "Co-operative society" means a Co-operative society registered under 
this Act and includes all Co-operative societies registered under the 
previous Acts; 
(16) "Co-operative agriculture and rural development bank" means a primary 
Co-operative society, the object of which include the creation of funds 
for lending money to its members on long-term basis and also to the 
beneficiaries of long-term loan on short-term basis for improvement 
of agricultural land and for other productive purposes and for construction 
of house and higher education of members or their wards. 
Explanation.—In this clause— 
(i) "long-term" shall mean a term exceeding five years; 
(ii) "productive purposes" shall mean such effort, activity or 
construction as may be provided in the by-laws; 
(17) "Co-operative farming" means a Co-operative society, the principal 
object of which is to organise 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; 
PART 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 11 
The West Bengal Co-operative Societies Act, 2006. 
(Chapter 1.—Preliminary.—Section 4.) 
(18) "Co-operative society with limited liability" means a Co-operative 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 have respectively thereby undertaken to contribute to the assets of 
the Co-operative in the event of its being wound up; 
(19) "Co-operative society with unlimited liability" means a Co-operative 
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; 
(20) "Co-operative Credit Society" means a Co-operative society, the 
primary object of which is to create funds for lending money to its 
members; 
(21) "Co-operative range" means such area over which an officer not below 
the rank of an Assistant Registrar of Co-operative societies exercises his 
jurisdiction; 
(22) "chief executive" means a person, by whatever designation he may be 
called, who being appointed by the board, manages the affairs of the 
Co-operative, subject to the superintendence, control and direction of 
the board and includes Chief Executive Officer appointed by the 
State Government or the Registrar of Co-operative societies under 
section 33; 
(23) "Co-operative year" means the year commencing on the 1st day of 
April; 
(24) "Director of Co-operative audit" means the person appointed under section 
12 and includes Additional Director of Co-operative Audit, Deputy Director 
of Co-operative Audit, Assistant Director of Co-operative Audit or any 
other officer who are appointed under that section to assist him and on 
whom all or any of the powers of the Director under this Act are conferred; 
(25) "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; 
(26) "district Co-operative union" means a Co-operative society which has 
an area of membership 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; 
(27) "distrainer" means a person who is empowered by a Registrar to distrain 
and sell the produce of mortgaged land including the standing crops 
thereon, in accordance with the provisions of section 120; 
(28) "electric Co-operative society" means a Co-operative society, the primary 
object of which is to provide electricity through generation, distribution 
or otherwise to its members and also to others if approved by the Board; 
(29) "engineers' Co-operative society" 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, 
agriculture; or 
(iii) certificate holders in any industrial trade. 
12 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 [PART III 
The West Bengal Co-operative Societies Act, 2006. 
(Chapter L—Preliminary.—Section 4.) 
The percentage of degree, diploma or certificate holders in any branch 
of engineering, technology or industrial trade in the membership of the 
Co-operative society shall not be less than sixty per cent. 
Explanation.—"unemployed" includes any person who is not in full 
time employment; 
(30) "equity share capital" means and include share capital raised from members 
by a Co-operative society which shall be eligible to receive dividend in 
terms of section 86 of this Act, if and when declared subject to prior 
approval of the Reserve Bank of India; 
(31) "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, 
agricultural labourers including bargadars and pattaholders; 
(32) "federal Co-operative society" means a Co-operative society whose 
membership is available only to Co-operative societies and not to 
individuals but includes apex and central Co-operative society; 
(33) "financing bank" include State Co-operative Bank, a central Co-operative 
Bank, State Co-operative agricultural and rural development bank, a 
primary Co-operative Bank, State Bank of India, a nationalised Bank, a 
regional rural Bank or National Bank for Agriculture and Rural 
Development, the object of which is to create funds for lending money 
to the Co-operative societies or other institutions or both; 
(34) "general body" in relation to a primary Co-operative society means all 
the members of that Co-operative society either by convoking delegates 
or by direct participation and in relation to apex or central society, as the 
case may be, means all the delegates or the representatives of the member 
Co-operative societies; 
(35) "general meeting" means a meeting of the general body of the Co-
operative society; 
(36) "housing Co-operative society" means a Co-operative society, the primary 
object of which is to provide to its members with dwelling houses, flats 
or lands for construction of dwelling houses or flats or with finance for 
purchase of land for construction of dwelling houses and maintenance of 
common services in connection therewith, and includes a federation of 
such Co-operative societies; 
(37) "industrial Co-operative society" means a Co-operative society, the primary 
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 
Co-operative society; 
(38) "inspector of Co-operative societies" means a person appointed as such 
by the Registrar; 
(39) "labour Co-operative society" means a primary Co-operative society 
composed of persons who live on manual labour, skilled or unskilled; 
(40) "liquidator" means a liquidator of a Co-operative society appointed under 
section 110; 
PART 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 13 
The West Bengal Co-operative Societies Act, 2006. 
(Chapter 1.—Preliminary.—Section 4.) 
(41) "member" means a person joining in an application for registration of a 
Co-operative society or a person admitted to the membership of a Co-
operative society after registration in accordance with the provisions of 
this Act and the rules and the by-laws made thereunder, and includes a 
joint member, or a self-help group and, subject to the provision of sub-
section (3) of section 63, a nominal member. 
Explanation.—For the purpose of this clause— 
(a) "joint member" shall mean any one or two persons admitted 
jointly to the membership of a Co-operative society under sub-
section (4) of section 63 and shall include either of the following 
persons so admitted— 
(i) husband and wife; 
(ii) father and son or daughter; and 
(iii) mother and son or daughter; 
(b) "nominal member" shall mean any person admitted to the 
membership of a Co-operative society as a nominal member under 
sub-section (3) of section 63; 
(42) "multipurpose Co-operative society" means a primary Co-operative society, 
the object of which is to provide various services including credit, business, 
industry consumer to its members; 
(43) "National Bank for Agricultural and Rural Development" means the 
National Bank for Agricultural and Rural Development established under 
section 3 of the National Bank for Agricultural and Rural Development 61 of 1981. 
Act, 1981; 
(44) "net profit" means profit after deduction of establishment charges, 
contingent charges, interest payable on loans and deposits, audit fees and 
such other sums as may be provided in the by-laws; 
(45) "notification" means a notification published in the Official Gazette; 
(46) "office-bearer" shall mean the chairman, vice-chairman, secretary, assistant 
secretary or treasurer of the Co-operative society; 
(47) "officer" includes a chairman, vice-chairman, secretary, joint secretary, 
assistant secretary, treasurer, director of a board and managing director, 
general manager, deputy general manager, assistant general manager, 
development officer, chief executive, deputy manager, assistant 
manager, field executive officer, and any other person appointed and 
authorised by the board to give direction relating to the affairs of the Co-
operative society and also includes a Government Officer appointed 
under section 33 and Special Officer appointed under section 36 or an 
administrator appointed by the State Government or the Registrar under 
section 34 to manage the affairs of the Co-operative society; 
(48) "owned capital" means the total paid up share capital and accumulated 
reserve fund and other funds created out of profits of a Co-operative 
society or otherwise; 
(49) "patronage refund" means annual refund to members in proportion to 
their transactions with the Co-operative societies during the year; 
(50) "preference share capital" means and includes share capital raised by the 
State Co-operative Banks and the Central Co-operative Banks from persons 
friendly supporting the cause of Co-operative movement who shall be 
eligible to receive dividend at a rate fixed by such Banks subject to prior 
approval of the Reserve Bank of India and shall be entitled to such rights 
as provided in this Act; 
(51) "prescribed" means prescribed by rules made under this Act; 
(52) "primary Co-operative society" means a Co-operative society whose 
membership is available only to individuals and self-help groups; 
(53) "primary Co-operative bank" has the same meaning as in the Reserve 
Bank of India Act, 1934; 	 2 of 1934. 
14 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 [PART III 
The West Bengal Co-operative Societies Act, 2006. 
(Chapter L—Preliminary.—Section 4.) 
(54) "primary Co-operative credit society" means a Co-operative society, the 
primary object of which is to create fund for lending money to its member 
and which undertakes such other credit and non-credit activities 
commensurate with the primary object; 
(55) "primary agricultural credit Co-operative society" means a Co-operative 
society, the primary object of which is to create fund for granting short-
term crop loan, medium and long-term loan for supplying agricultural 
inputs to its members and selling of outputs of its members and to 
undertake rural non-farm sector activities including cottage and small 
scale industries, allied farm activities including aquaculture, animal 
husbandry, horticulture, sericulture and such other business, services and 
activities for development of the rural areas as specified in the by-laws. 
Explanation.— 
(a) "short-term" shall mean a term not exceeding one year; 
(b) "medium-term" shall mean a term more than one year and less 
than five years; and 
(c) "long-term" shall mean a term exceeding five years; 
(56) "Registrar" means the Registrar of Co-operative societies appointed under 
section 12 and includes Additional Registrar, Joint Registrar, Deputy 
Registrar, Assistant Registrar of Co-operative society and any other officer 
who is appointed under that section to assist the Registrar and on whom 
all or any of powers of the Registrar under this Act are conferred; 
(57) "relative" has the same meaning as in the Companies Act, 1956; 	 1 of 1956. 
(38) "Reserve Bank of India" means the Reserve Bank of India constituted 
under the Reserve Bank of India Act, 1934; 	 2 of 1934. 
(59) "rules" means the rules made by the State Government under this Act; 
(60) "self-help group" means a group of persons, men or women of five to 
twenty in number coming from different families and belonging to 
economically weaker section of the society and having their residential 
address within a contiguous place for effective implementation of viable 
economic activities; 
(61) "service Co-operative society" means a Co-operative society formed 
primarily with unemployed persons for rendering services such as 
security service and education, allied supply of food and consumers' 
goods, healthcare including nursing and aya services, domestic help, car 
parking facility or any other services as may be prescribed including 
providing services for agricultural, veterinary, fishery and other allied 
farm sector including agricultural clinics and service centres to Government 
authorities institutions and individuals; 
(62) "State Co-operative Bank" has the same meaning as in the National Bank 
for Agricultural and Rural Development, 1981; 	 61 of 1981. 
(63) "State Co-operative Union" means a Co-operative society registered under 
this Act having its area of membership extending to the whole of West 
Bengal, and the primary object and functions of which is— 
(a) to spread education on Co-operative principles and practices; 
(b) to arrange for training of the members and the employees of 
Co-operative societies and of the employees deputed by the State 
Government on Co-operative principles and practices; 
PART III] 	 THE KOLKATA GAZEIth, EXTRAORDINARY, MAY 25, 2010 	 15 
The West Bengal Co-operative Societies Act, 2006. 
(Chapter 1.—Preliminary.—Sections 5, 6.) 
(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; 
(64) "secretary" means a person who subject to the control of board, is 
entrusted with the management of the affairs of Co-operative society 
and includes any person by whatsoever name called discharging the 
duties of a secretary; 
(65) "State" means the State of West Bengal; 
(66) "transport Co-operative society" means a Co-operative society composed 
of transport operators including driver, conductor, cleaner, mechanic and 
other persons engaged in transport business; 
(67) "Tribunal" means the Co-operative Tribunal constituted under 
section 146; 
(68) "Trustee" means a trustee appointed under section 45; 
(69) "working capital" means the total capital of a Co-operative consisting of 
borrowed capital and owned capital. 
Interpretation of 
certain words and 
expression used in 
the Act. 
Repeal and 
savings. 
5. Unless otherwise specified in this Act— 
(a) expressions referring to writing include printing, typing, lithography, 
photography, photocopy, emails, fax and other method of representing 
or reproducing words in a visible form; and 
(b) with reference to a person who is unable to write his name, the words 
"signature" shall include his thumb impression or other mark duly 
attested to signify his signature. 
6. (1) The West Bengal Co-operative Societies Act, 1983 is hereby 
repealed. 
(2) Notwithstanding such repeal anything done or suffered or any action 
taken including any rule made, and 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, 194.0 or the West Bengal Co-operative Societies Act, 1973 
or the West Bengal Co-operative Societies Act, 1983 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 Society Act, 1940 or the 
West Bengal Co-operative Act, 1973 or the West Bengal Co-operative Act, 1983 
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. 
West Ben. Act 
XLV of 1983. 
2 of 1912. 
Ben. Act XXI of 
1940. 
West Ben. Act 
XXXVIII of 1973. 
West Ben. Act 
XLV of 1983. 
16 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 [PART III 
The West Bengal Co-operative Societies Act, 2006. 
(Chapter 1.—Preliminary.—Sections 7-11.) 
4. 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, 1860. 
5. (1) The State Government may, by notification, for such reasons as may be 
prescribed, to be recorded in writing, exempt any Co-operative society or class of Co-
operative societies or any other institution under this Act from the operation of any 
of the provisions of this Act, considered unsuited thereto and thereupon the said 
provisions shall not apply to such Co-operative society or class of Co-operative 
Societies or any other institutions under this Act until such provisions are applied 
thereto by notification: 
Provided that no notification to the prejudice of any Co-operative society or 
class of Co-operative societies or any other institution under this Act shall be 
issued without an opportunity being given to it to represent its case. Such 
opportunity or hearing has to be notified inviting objection, if any from interested 
persons: 
Provided further that exemption under this sub-section cannot be accorded in case 
of extension of the tenure of the Board of Directors of any Co-operative society or 
class of Co-operative societies, as the case may be, appointment of employees or 
officers of the Co-operative society holding Annual General meeting, Special Annual 
General meeting and reconstitution of the Board of Directors of any Co-operative 
society. 
(2) While the exemption, as aforesaid, remains in force, the State Government 
may make rules consistent with the provisions of this Act in respect of any matter 
within the purview of such provisions of this Act from the operation of which the 
Co-operative society or class of Co-operative societies or any other institutions under 
this Act as aforesaid are exempted. 
Construction of 
reference to Act 2 
of 1912, Ben. Act 
XXVI of 1940, 
West Ben. Act 
XXXVIII of 1973 
and West Ben. 
Act XLV of 1983. 
The Companies 
Act 1956 not to 
apply. 
Prohibition of the 
use of word "Co-
operative". 
Officers of Co-
operative societies 
to be public 
servants. 
Exemption of Co-
operative societies 
from provisions of 
this Act. 
7. All reference to the Co-operative Societies Act, 1912 or to the Bengal 
Co-operative Societies Act, 1973 or to the West Bengal Co-operative Societies Act, 
1983 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 reference 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, 1940 or to the West Bengal 
Co-operative Societies Act, 1983 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. 
8. The provision of the Companies Act, 1956 shall not apply to Co-operative 1 of 1956.  
societies. 
9. (1) 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 a part. 
(2) Any violation of the provision of sub-section (1) shall constitute an offence 
punishable with imprisonment for a term which may extend to two years or with fine 
which may extend to five thousand rupees or both. 
45 of 1860. 
PART III] 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 	 17 
The West Bengal Co-operative Societies Act, 2006. 
(Chapter II.—Registration.—Sections 12-15.) 
CHAPTER II 
Registration 
Appointment of 
Registrar and 
Director of Co-
operative Audit 
and other persons 
to assist them. 
Conferment of 
powers and duties 
of Registrar and 
Director of Co-
operative Audit on 
other persons. 
Co-operative 
society which may 
he registered. 
Bar to registra-
tion. 
12. (1) 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. 
(2) The State Government may appoint a person to be the Director of Co-operative 
Audit for West Bengal and such number of other persons to assist him as it may 
deem fit. 
13. (1) 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, or 
the Registrar under this Act. other than those specified in the First Schedule, on any 
person appointed under sub-section (1) of section 12 to assist the Registrar. 
(2) 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 Director of Co-operative Audit under this Act, other than those specified in the 
Sixth Schedule, on any person appointed under sub-section (2) of section 12 to assist 
the Director of Co-operative Audit. 
14. (1) Suject to the provisions of this Act and rules, a Co-operative society 
established with the object of social and economic betterment of its members in their 
common interest through self-help and mutual aid in accordance with the 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 or reorganisanon of two or more Co-operative societies with the approval 
of their members may be iecistered under this 	 with limited liability. 
(2) A Co-operative sop.: 	 shall be registered with limited liability: 
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-operative see ety with limited liability if the members of such Co-
operative society want: 
Provided further that a Co-operative society registered under this Act stay, subject 
to the provision of this Act, by amendment of its by-laws change the form or the extent 
of its liability. 
(3) The word "Limited" shall be the last word in the name of a Co-operative 
society registered under this Act. 
15. (1) No Co-operative. society, the by-laws of which permit admission as its 
member of a person carrying an transaction or business of the same kind or nature 
as carried cc,  by its, shall be registered under this Act or violate the provisions of 
existing lay..s of the land. 
(2) in particular and wit: ut prejudice to the generality of the provisions of sub-
section (1): 
(a) no Co-operative credit society shall ire registered if the by-laws thereof 
do no specifically debar admission as its member of a person who is a 
money lender by profession; 
(b) no consumers' f...."e-operative society Thali be registered if the by-laws 
thereof do not siteially debar admission as its member of a pe

Excerpt shown. Open the full act in Lexace.

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