The Andhra Pradesh State Handloom Weavers' Co-operative Society (Formation) Act, 1976.
**THE ANDHRA PRADESH STATE HANDLOOM WEAVERS’ CO-OPERATIVE**
**SOCIETY (FORMATION) ACT, 1976**

**Act No. 54 of 1976**

**ARRANGEMENT OF SECTIONS**
**SECTIONS**

1. Short title, extent and commencement

2. Definitions

3. Formation of the Andhra Pradesh State Handloom Weavers'
Cooperative Society, Ltd.

4. General effect of amalgamation

5. Ultimate authority of the new society to vest in its general body

6. Management of the affairs of the new society

7. Transfer of services of officers and other employees of the
amalgamated societies

8. Over-riding effect of the Act

9. Power to make rules

10. Power to remove difficulties

11. Repeal of Ordinance 14 of 1976


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**THE ANDHRA PRADESH STATE HANDLOOM WEAVERS’ CO-OPERATIVE**
**SOCIETY (FORMATION) ACT, 1976**

**Act No. 54 of 1976**

[18[th] August, 1976]

**AN ACT TO PROVIDE FOR THE FORMATION OF ANDHRA PRADESH**
**STATE HANDLOOM WEAVERS’ CO-OPERATIVE SOCIETY LIMITED,**
**BY AMALGAMATION OF THE ANDHRA HANDLOOM WEAVERS’ CO-**
**OPERATIVE SOCIETY LIMITED, THE HYDERABAD HANDLOOM**
**WEAVERS’ CENTRAL CO-OPERATIVE ASSOCIATION LIMITED, AND**
**THE RAYALASEEMA APEX WEAVERS’ CO-OPERATIVE SOCIETY**
**LIMITED AND FOR MATTERS CONNECTED THEREWITH AND**
**INDICENTAL THERETO.**

BE it enacted by the Legislature of the State of Andhra Pradesh in the Twentyseventh Year of the Republic of India as follows:
**1. Short title, extent and commencement - (1) This Act may be called the**
Andhra Pradesh State Handloom Weavers' Co-operative Society (Formation)
Act, 1976.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall be deemed to have come into force on the 6[th] July, 1976.

**2. Definitions - In this Act, unless the context otherwise requires,-**

(a) "amalgamation" means the amalgamation of the Andhra
Handloom Weavers' Co-operative Society, the Hyderabad
Handloom Weavers' Central Co-operative Association and the
Rayalaseema Apex Weavers' Co-operative Society, under section 3,
for the purpose of formation of a new Society called "the Andhra
Pradesh State Handloom Weavers' Co-operative Society Limited",
and the expression, "amalgamated societies" shall be construed to
refer to the aforesaid three societies so amalgamated;

(b) "Andhra Handloom Weavers' Co-operative Society" means the
Andhra Handloom Weavers' Co-operative Society Limited,
Vijayawada, registered or deemed to be registered under the
Co-operative Societies Act;

(c) "appointed day" means the date appointed for the formation of
the Andhra Pradesh State Handloom Weavers' Cooperative Society
Limited, by the Government under sub-section (1) of section 3;

(d) "Co-operative Societies Act" means the Andhra Pradesh
Co-operative Societies Act, 1964 (Act 7 of 1964);

(e) "Government" means the State Government;

(f) "Hyderabad Handloom Weavers' Central Co-operative
Association" means the Hyderabad Handloom Weavers' Central Cooperative Association Limited, Hyderabad, registered or deemed to
be registered under the Co-operative Societies Act;

(g) "new Society" means the Andhra Pradesh State Handloom
Weavers' Co-operative Society limited, formed under

sub-section (1) of section 3;

(h) "notification" means a notification published in the Andhra
Pradesh Gazette;

(i) "Rayalaseema Apex Weavers' Co-operative Society" means the
Rayalaseema Handloom Weavers' Co-operative Society Limited,
Kurnool registered under the Co-operative Societies Act;


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(j) "Registrar" means the Registrar of the Co-operative Societies,
Andhra Pradesh and includes any other person on whom all or any
of the powers of the Registrar under this Act are conferred by the
Government;

(k) all words and expressions used in this Act and not defined but
defined in the Andhra Pradesh Co-operative Societies Act, 1964,
shall have the meanings respectively assigned to them in that Act.

**3. Formation of the Andhra Pradesh State Handloom Weavers' Cooperative**
**Society, Ltd. - (1) Notwithstanding anything in the Co-operative Societies Act,**
or the rules made thereunder or the bye-laws for the time being in force, with
effect on and from such date as the Government may, by notification, appoint
in this behalf, the Andhra Handloom Weavers' Co-operative Society, the
Hyderabad Handloom Weavers' Central Co-operative Association and the
Rayalaseema Apex Weavers' Co-operative Society, shall stand /amalgamated
and shall be formed into a single new Society, called the Andhra Pradesh State
Handloom Weavers' Co-operative Society Limited having as the area of its
operation, the entire territory comprised in the State.

(2) On and from the appointed day
(a) the registration of each of the amalgamated societies shall stand
cancelled and the said amalgamated societies shall be deemed to
have been dissolved and shall cease to exist as corporate bodies;

(b) the new Society and the bye-laws as framed by the Government
or any officer authorised by them in this behalf shall be deemed to
have been registered under the provisions of the Co-operative
Societies Act and the Registrar shall issue the necessary Certificate
of registration to the said new society.

**4. General effect of amalgamation - (1) On the amalgamation with effect on**
and from the appointed day,
(i) save as otherwise expressly provided in this Act, the
provisions of the Co-operative Societies Act shall apply to the
new society;

(ii) the assets and liabilities of every description of the
amalgamated societies shall stand transferred to the new
society:

Provided that no such transfer shall prejudicially affect
or render ineffective any suit, appeal or legal proceedings of
whatever nature pending by or against the amalgamated
societies, but such suit, appeal or legal proceedings may be
continued, prosecuted and enforced by or against the new
society:

Provided further that the liabilities of the amalgamated
societies shall continue to be governed by such guarantee of
the Government as subsisted with regard to them on the
appointed day, as if such guarantee were given in respect of
the liabilities so transferred, immediately after the appointed
day;

(iii) the Government and the primary and other Co-operative
Societies which are members of, or affiliated to the
amalgamated societies shall be deemed to be the member of,
and affiliated to, the new society;

(iv) all contracts, deeds, bonds, agreements and other
instruments of whatever nature subsisting and relating to
the assets and liabilities transferred to the new society, from
the amalgamated societies which have been parties thereto
shall have full force in favour of or against the new society,


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and may be enforced as if the said new society has been a
party thereto.

(2) The Government may, by notification, make such supplemental,
incidental and consequential provisions (including the provision as to
committees, authorities, properties, rights and interests, liabilities, duties and
obligations of the amalgamated societies or new society) as they may deem
necessary to give effect to the provisions of this Act.

**5. Ultimate authority of the new society to vest in its general body -**
Subject to the provisions of this Act, the Co-operative Societies Act, the rules
and the bye-laws, the ultimate authority of the new society shall vest in the
general body consisting of such members of the general bodies of the
amalgamated societies as may be specified by the Government by notification.

**6. Management of the affairs of the new society –** [1][(1) Notwithstanding
anything in this Act, the Co-operative Societies Act, or the rules made
thereunder or the bye-laws for the time being in force, the management of the
affairs of the new society shall vest in the Committee consisting of the following
members, namely:
2[(i) one representative of the Primary handloom weavers co-operative
societies (other than Primary Wool Weavers Co-operative Societies) in each
District to be elected from among themselves by the delegate of such societies;]

Explanation:- For the purpose of this sub-section the expression:
(a) “Coastal Andhra Area” means, the area comprising the districts
of Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari,
Krishan, Guntur, Prakasam and Nellore.

(b) “Rayalaseema Area” means the area comprising of the districts
of Kurnool, Cuddapah, Anatapur and Chittoor; and

(c) ‘Telangana Area’ means the territories specified in sub-section
(1) of section 3 of the States Re-organisation Act,1956(Central Act 37 of 1956).

(ii) one representative of the primary handloom wool weavers cooperative societies to be elected from among themselves by the delegates of
such class of societies in the State;

(iii) three nominees of the Government consisting of
(a) Director of Handlooms and Textiles;

(b) Joint Secretary to Government or Deputy Secretary to
Government in the Industries and Commerce Department dealing with the
Handloom Industry;

(c) one expert in Handlooms and Textiles technology;
(iv) Managing Director, Andhra Pradesh State Co-operative Bank;

(v) Deputy General Manager, Regional Office of the National Bank for
Agricultural and Rural Development, Hyderabad.

(vi) Regional Director, National Co-operative Development
Corporation, Poona;

(vii) Managing Director, Andhra Pradesh State Handloom Weavers Cooperative Society Limited.

(2) The elected members of the Committee shall elect from among
themselves a Chairman”.]

1. substituted by the Act No. 14 of 1983, Section 11.
2 . The clause substituted by the Act No. 14 of 1988, Section 2.


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**7. Transfer of services of officers and other employees of the**
**amalgamated societies - (1) The services of Officers and other employees of**
the amalgamated societies shall stand transferred to the new society.

(2) Every person who has been, immediately before the appointed day, in
the employment of the amalgamated societies shall, in so far as such person is
employed in connection with the amalgamated societies, become as from the
appointed day, an employee of the new society and shall hold his office or
service therein by the same tenure, at the same remuneration and upon the
same terms and conditions and with the same rights and privileges as to
pension and gratuity and other matters as he would have held the same under
the amalgamated societies prior to their amalgamation and shall continue to do
so unless and until his employment in the new society is duly terminated or
until his terms and conditions of employment are duly altered by the new
society.

(3) The transfer of the services of any officer or other employee of the
amalgamated societies to the new society shall not entitle such officer or other
employee to any compensation under this Act or other law for the time being in
force and no such claim shall be entertained by any court, tribunal or other
authority.

**8. Over-riding effect of the Act - The provisions of this Act shall have effect**
notwithstanding anything inconsistent therewith contained in the Co-operative
Societies Act.

**9. Power to make rules - (1) The Government may, by notification, make rules**
to carry out all or any of the purposes of this Act.

(2) Every rule made under this Act shall immediately after it is made, be
laid before each House of the State Legislature if it is in session and if it is not
in session, in the session immediately following for a total period of fourteen
days which may be comprised in one session or in two successive sessions, and
if, before the expiration of the session in which it is so laid or the session
immediately following, both Houses agree in making any modification in the
rule or in the annulment of the rule, the rule shall, from the date on which the
modification or annulment is notified, have effect only in such modified form or
shall stand annulled, as the case may be, so however that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.

**10. Power to remove difficulties - If any difficulty arises in giving effect to the**
provisions of this Act the Government may make such orders not inconsistent
with the purpose of this Act as appear to them to be necessary or expedient for
the purpose of removing the difficulty.

**11. Repeal of Ordinance 14 of 1976 - The Andhra Pradesh State Handloom**
Weavers Co-operative Society (Formation) Ordinance, 1976 is hereby repealed.


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