The Assam Co-operative Societies Act, 1949
**269**

ASSAM ACT 1 OF 1950

*THE ASSAM CO-OPERATIVE SOCIETIES ACT, 1949

**(Received** the asses! c ! the Governoir-GewerHl on the **25th** **January, 1950.)**

[Published. In the _Assam (Jajtfie of the 8th February 1950 ]_

An

Act to Lsdlitak- Che form itoii ss.d working of Cooperative Societies

...id to eonsoiidaie and r.meiid ike Saw relating to

Co-operative Societies m the Province of Assam

Preamble.-—Whereas it • expedient further to facilitate the formation and

working of Co-operative Societies for the purpose of thrift, self-help, mutual aid
and creating the quality of creait worthinc .s among agriculturists, artisans and
other persons with commoi economic needs so as to bring about a higher standard
of living, better busim better memo;.; of production, equitable distribution and

exchange and for that purpose to consolidate and amend the law relating to
Co-operative Societies in the Province of Assam, it is hereby enacted as follows—

CHAPTER I

I'rdtimBsry

1. Short title, exteot and cosamencement—(1) this Act may be called the

Assam Co-operative Societies Act, 1949.

(2) it extends to the whole of the [Siate][1] of Assaiu.

(3) It shali a x e into lOtcc on such oa*      - as the [State]-' Government may

appoint.

2. Dekmtiu..".- ..,w wet, unless, owre is anything repugnant in the subject

or context:—

(a) “Administrative Council” rne<.ns a body' intermediary between a

Managing Body and the General Assem iy -f reg hered society.

(b) “Affi.Y-.big Socle., .rg ifa ^ s olely of which a particular

registered society is _a meml ._   - . . .■ .. .. neans the particular society

which is a member of the affiliating society ,

(c) “Arbitrator” m . ms ■ p w ! appointed under the provisions of this

Act to deci ' . . disput him;

(d)       - . .. tdet the provisions of

this Act io audit t; . tT a regi...creel society ;

(e) “Bye-law ’ . t.-.s -o th-., registered bvc-laws for the time being in force

and includes a registered amendment of bye-laws

(f) “Co-operative Year” menus the period beginning and ending on such

dates as may be ir-;..d I . th. Registrar for the purpose of drawing up the balance

sheets of registered societ: ;

(g) “Co-operative Demand Certificate'’ means a certificate as defined in

section 83 ; _

(h) “fcmpluyce” ...cans a person, not being an o. lice-bcarer, employed by

a registered society on a salary or similar form of remuneration other than advance
patronage dividend or payment for goods sold to or through such society ;

(i) “General Assembly” means itw, supreme body of a registered society

as defined in section 31 ;

♦For statement of Objects and Reasons _see “Assam Gazette”,_ 1949, Part V,

page 107.

'Substituted by the A.O., 1950 for ' Province ’.
Substituted by the A.O., 1950 for “Provincial”.


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270

(j) “Managing Body” means the body to which the management of

affairs of a registered society is directly entrusted and does not include .

Administrative Council;

(k) “Member” means a person admitted to membership after registrat

in accordance with the bye-laws and rules of the society and includes a promot

(l) “Office-Bearer” means a member duly elected by the appropriate hi,

of a registered society, according to its bye-laws, to any office of su
society, including the office of President, Chairman, Vice-Presid|L

Vice-Chairman, Secretary, Managing Director and Treasurer ; provided that an;
officer appointed by Government to hold charge of any office of a registered
society shall be deemed to be an office-bearer unless specifically stated to the
contrary; ,;a

(m) “Prescribed” means prescribed by rules ;
(n) “Promoter” means any eligible person or registered society signing th

application for registration of a society ;

(o) “Registered Society” means a Co-operative Society registered or deem

ed to have been registered under tins Act and includes a society formed after amaj

gamation of such two or more societies or by division of such an existing society

(p) “Registrar” means a person appointed to perform the duties of

Registrar of Co-operative Societies under this A ct;

(q) “Rules” means rules made under this A ct; and
(r) “Signature” includes the thumb-impression of an illiterate person,

CHAPTER II

**Registration of Societies**

3. The Registrar.—(1) The [State][1] Government may appoint a person t<

be Registrar of Co-operative Societies for lhe [State][2] or any portion of it foj
the registration, supervision, assistance, counsel and control of registered societies
and for the development of the co-operative movement and control over

co-operative education and with such other powers and responsibilities as maj
be provided under this Act or rules or bye-laws framed thereunder.

(2) The [State][1] Government may also appoint persons to assist the

Registrar and may by general or special order, in writing, delegate to any such
persons or to any other Government Officer all pr any of the powers of the

Registrar under this Act.         -

(3) The [State](3) lhe [State][1][1] Government may- also appoint non-official Government may- also appoint non-olhcial helpershelpers wfffl

such designations and functions as prescribed to aid in the organisation of Co­
operative Societies.
4. " ................................................... -                - . -                - ..........................i
**Societies which may be registered.—Subject to the provisions hereinafter**

contained a society which has as its chief object the promotion of the economic
interests and general welfare of its members in accordance with co-operative;

principles, or a society established with the object of facilitating the operations;
pf such a society including a society formed by the division of an existing registered
society or amalgamation of existing two or more societies, may be registered
under this Act with or without limited liability :

Provided that unless the [State][1] Government by general pr special order

otherwise directs:—

(1) The liability of a society of which a member is a registered society;

shall be limited.

**(2)** The liability of a society of which the primary object is the creation

**of** funds to be lent to its members, and of which the majority of the members are

agriculturists or artisans, and of which no member is a registered society, shall

'Substituted by the A.O., 1950 for “Provincial”. I

Substituted by the A.O., 1950 for “Province”.


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be unlimited and the members of such a society shall on its liquidation, be jointly
and severally liable for and in respect of, all obligations of such a society :

Provided further that no society shall be registered if in the opinion of the

  - egistrar, its declared objects are unlikely to be achieved or if it is economically
'unsound or if it may have an adverse effect upon any registered society or the

co-operative movement as a whole.

5. **Age qualification of a member.—No person may** be an individual

  - ember of a registered society unless he is above eighteen years of age; provided

that the bye-laws of a society may prescribe a higher minimum age.

| 6. **Conditions of registration.—(1) No society, other than a society of which**

a member is a registered society shall be registered under this Act which does
not consist of at least ten eligible persons and, in cases where the primary object
of the society is the creation of funds to be lent to its members, unless such

^persons reside in the same town, village or in the same Panchayat Area ;

(2) The word “Limited” shall be the last word in the name of every society

With limited liability registered under this Act.

7. **Restrictions on acquisition of shares in a society.—(1) No member of** **a**

registered society shall hold more than such portion of the share capital of

the society as may be prescribed by the rules, or the bye-laws of the society.

(2) No member shall be allowed to acquire an additional share until he has

.paid in full the value of the whole or that portion of his share-holding which he

is required to pay in accordance with the bye-laws of his society.

8. **Power** of Registrar to decide certain questions.—All disputes regarding

membership for the purpose of the formation, registration or continuance of **a**
Society under this Act ‘shall be decided by the Registrar.

**9.** **Change of liability.—(1) Subject to the proviso to section** **4** and **to any**

  - iiles made in this behalf, a registered society may, with the previous sanction of

the Registrar, change its liability from limited to unlimited or from unlimited to

'limited :—
|. Provided that—

(i) The society sfrall give notice in writing of its intention to change its

.liability to all its members and creditors.

(ii) Any member or creditor shall, notwithstanding any bye-law or con­

ta c t to the contrary, have the option of withdrawing bis shares, deposits or loans,
fas the case,may be, within three months of the service of such notice on him
'and the change shall not take effect until all such claims have been satisfied ;
‘■wid

(iii) Any member or creditor, who docs not exercise his option within the

jperiod aforesaid, shall be deemed to have assented to the change.

(2) Nothwithstanding anything contained in the proviso to sub-section (1)

Ke change shall take effect at once if all the members and creditors assent
thereto.

(3) The Registrar shall register the amendment of the bye-laws consequent

on the change of liability; provided that no person who ceases to be a member

  - pf the society before such amendment is registered shall be adversely affected by

Hhe change of liability.

10. **Application for registration.—** (1) An application for registration shall be

  - ade to the Registrar in the prescribed Form.

(2) The application shall be signed—

| (a) in the case of a society of which no promoter is a registered society, by

bat least ten eligible persons; and

(b) in the case of a society of which at least one promoter is a registered

^Society, by a duly authorised person on behalf of such registered society and at
Peast one other individual promoter or one other duly authorised person on behalf

of another registered society.


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(3) The application shall be accompanied by four copies of the proposed;

bye-laws of the society signed on behalf of the promoters by the president of the; K R
inaugural general meeting. Promoters by whom or on whose behalf such appli-d ase, i
cation is made shall furnish such, information in regard to the society as thy leu f

Registrar may require and they shall be liable to the full extent of the share^ ini w

money which they have undertaken to subscribe with effect from the date of regis-,,:i . ' ’ ' . ' ............................... .         - <         -

tration of the society. j

11. **Registration.—** (1) The Registrar shall decide all questions as to whethet^

the application complies with the provisions of this Act and rules thereunder and.j
whether the objects of the society are in accordance with section 4.

(2) When he is satisfied that the application is in order under sub-section (1)]

and the proposed bye-laws are not contrary thereto, he may register the socie™
and its bye-laws ; provided that the Registrar shall have powers to register the-.]

bye-laws with such modifications as he thinks are necessary to bring about unifora
mity in the main with the provisions of the bye-laws of societies which haye~i
similar objects or functions.

(3) The Registrar shall endorse the bye-laws in token of registration. Eachj

society shall have a copy of its bye-laws so endorsed.

(4) If the Registrar refuses to register a society or an amendment of the 1

bye-laws of a registered society he shall record his reasons in writing and commu®
nicate these reasons and his decision to the promoters or the Secretary of a |

registered society by a registered letter to their office, he Registrar may at any 1

time review his orders in this respect.

12. **Evidence of registration.—A** certificate of registration signed by tlieJ

Registrar shall be issued to the society and shall be conclusive evidence that the I

Co-operative Society therein mentioned is a Co-operative Society duly registered J
under this Act and that its bye-laws are as attached to the certificate, unless it is 3

proved that the registration of the society has been cancelled or that amended!
bye-laws have been registered or that the society’s copy of the certificate or bye-jpa;
laws has been tampered with. Jo

13. Amendment of the bye-laws of **_a registered society.—(1) No amendment w_**

of the bye-laws of a registered society, whether by way of addition, al ternation,wliK
omission, rescission or change of name shall be valid until such amendment has^B
been registered under this Act.

(2) Every proposal for such amendment shall have to be approved by ad*

resolution at a meeting of the General Assembly in accordance with the bye-lawsa®
of the society and be forwarded within a month from the date of the resolution®
to the Registrar; and if the Registrar is satisfied that the proposed amendment®
is not contrary to the provisions of this Act or rules, he shall, unless for reasons.®
to be recorded in writing he considers fit to refuse, register the amendment. B

(3) When the Registrar registers an amendment of the bye-laws of a t

registered society, he shall issue to the society a copy' of the amendment certified B
by him, which shall be conclusive evidence that the same has been duly registered, B
unless it is proved that the registration of the society has been cancelled or that 1

further amendments have been registered or that the society’s copy of the amend-®
ments have been tampered with. The amendment shall be binding upon the®

society with effect from the date of registration. ,®

**14. Power of Registrar or affiliating society to direct amendment of bye-®**

**laws or adoption of** nd.es **of procedure.—(1) (i) When it appears to the Registrar®**
that an amendment of the bye-laws or a registered society is necessary in the 1

interests of such society or of the co-operative movement as a whole or for the®
purpose of bringing about uniformity in the main with the provisions of the 1
bye-laws of societies which have similar objects or functions, he may, by an order!
in writing, direct the society to amend its bye-laws in accordance with the amend- J
ment drafted and forwarded to the society by him within such time as he may j
specify in the order.


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**273**

(ii) If the society fails to make such amendment within the time specified,

 - e Registrar shall, alter giving the society an opportunity of representing its
Base, make such amendment himself and register the same. The Registrar shall

 - hen forward a copy thereof to the society together with a certificate signed by

liiin which shall be effective as prescribed in section 13(3).

(iii) The Registrar shall not register any amendment of the bye-laws of

1 society, whether under this section or section 13 of this Act, without the consent

**Id** the [State][1] Government, if the effect of such amendment is to lessen the

liegree of control of the Government or of the Registrar as already provided

 - r in the bye-laws.

(iv) The Registrar may require any registered society to frame rules of

Procedure under its bye-laws to govern any part of its business and to send such

 - ules to him for prior approval.

(2) (i) When it appears to an affiliating society that an amendment of the

liye-laws of a registered society which is a member and debtor of such society,
1 b necessary in the interests of such society it may suggest to the affiliated society

 - at it makes the amendment within such time as it may specify. The affiliating

 - ociety shall forward to the affiliated society a draft of the suggested amendment

**Itf the bye-laws.**

(ii) If the society fails to implement the suggestion within the time specified,

|ie affiliating society may forward to the Registrar the amendment which it consi­
**s ts** necessary, and the Registrar, if satisfied that the amendment is necessary

 - nd not contrary to the provisions of this Act or the rules, may thereupon register

lie amendment and forward to the society a copy thereof together with a certifi-
late signed by him. The certificate shall be conclusive evidence that the amend-

luent has been registered and such amendment shall thereupon be binding upon

 - he society and its members.

15. **Division and amalgamation of societies.—(1) (i) Any registered society**

 - ay, at a meeting of its General Assembly specially called for the purpose, resolve

|U) divide into two or more societies. At least fifteen clear days’ notice of such

 - eeting with the agenda shall be given to its members together with a copy of

llhe proposed resolution.

(ii) Such a resolution shall contain the proposal as to how to divide the

 - ssets and liabilities of the society among the newly proposed societies, their

 - eas of operation and the members who will constitute each of the newly proposed
.societies with draft new bye-laws.

(iii) A cop[1]; of the resolution shall be sent to the Registrar within thirty

  - ays of its adoption and subject to the Registrar’s non-intorference within thirty

flays of the despatch to him of the resolution, the resolution shall be circulated
lunong the members and creditors of the society.

(iv) Notwithstanding any bye-laws to the contrary, any member of the

Inciety, and notwithstanding any agreement to the contrary, any creditor of the

  - ociety, may by notice given to the society within thirty days of the receipt of the

  - esolution intimate in case of a member his intention not to become _a member_

**If any of the societies, and in case of a creditor his intention to demand a return**
lif the amount due to him.

(v) After the expiry of ninety days from the passing of the aforesaid reso­

lution a meeting of the General Assembly shall be convened for finally deciding
lihe resolution. At least fifteen clear days’ notice with the agenda of the meeting

 - - hall be given to all members of the society.

. I (vi) If the General Assembly decides by a three-fourth majority finally to

: liivide the society and if the Registrar approves of the decision, the members,

r |'«ho will constitute each of the newly proposed societies subscribing to the new:

'Substituted by the A.O., 1950 for “Provincial”.


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draft bye-laws shall apply to the Registrar under section 10 for registration of the
new societies and the Registrar shall register the societies under section 11

(vii) The Registrar shall not register the new societies if the application

for registration is not accompanied by a certificate of repayment of share capital
to members and certificate of satisfaction of claims to creditors referred to in
clause (iv).

(viii) From the date on which the new societies are registered und

clause (vi) the registration pf the old society shall be deemed to have been can:
celled.

(ix) The registration of the new societies shall be a sufficient conveyane

to vest the assets and liabilities of the original society according to the aforesaij
resolution in the new societies.

(2) (i) Two or more registered societies may, at a meeting of their respect!

General Assemblies specially convened for the purpose, by giving at least fifte
clear days’ notice to the respective members of the societies, resolve to amalg
mate into one society by adopting common bye-laws.

(ii) A copy of such resolution of each society shall be circulated forthwith

among all members and creditors thereof.

(iii) Notwithstanding any bye-laws to the contrary, any member of an

such societies and, notwithstanding any agreement to the contrary, any credit
of any such societies, may within a period of thirty days from the receipt of t
aforesaid resolution, intimate his intention not to become a member of the net
society, in the case of a member, and to demand a return of the amount due.
him, in. the case of a creditor.

(iv) After the expiry of ninety days from the date of the aforesaid res®

lution, a joint meeting of the members of such societies shall be convened t«

decide finally the aforesaid resolution.

(v) At least fifteen clear days’ notice shall be given to all the members

the societies. If at such meeting the aforesaid resolution is confirmed by a maj#

rity of three-fourths of the members of each society present and the common by
laws are accepted with or without any alterations, the Registrar shall be move
by an application under section 10 for registration and he shall register the ne!
society under section 11 if he approves.

(vi) The Registrar shall not register the new society if the application fc

registration is not accompanied by a certificate of repayment of share capital to

members and a certificate of satisfaction of claims of creditors referred to **is**
clause (iii).

(vii) From the date on which the new society is registered the registratic

of the old societies shall be deemed to have been cancelled.

(viii) The registration of the new society shall be a sufficient convcyan

to vest in it all the assets and the liabilities of the original societies.

CHAPTER III

**Rights and Liabilities of members of Registered Societies**

16. **Member not to exercise rights till due payment made and** **conditio)**

**fulfilled.—No member of a registered society shall exercise the rights** of a m
ber unless or until he has made such payment to the society in respect of membi
ship or acquired such interest in the society, as may be prescribed by the rules
bye-laws.

17. **Votes of members.—(1) Irrespective of the shares he** holds in

society and subject to any temporary disqualifications from voting which may
prescribed in bye-laws and to the provisions of section 31(2)(b) relating to vofii


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275

Eby representatives, a member of a registered society shall have one vote only in

               - he allairs of the society:

Provided that in the case of an equality of votes the Chairman at any meeting

               - hall have a second or casting vote :
**I** Provided further that the bye-laws of a society may provide for more than one

                - ote in the case of an affiliated society.

(2) A registered society which is a member of another registered society

              - ay appoint one of its members qualified under any rule or bye-laws to vote in

                - he affairs of such other society as its representative.

(3) Voting by proxy shall not be allowed except as prescribed in a registered

               - ociety’s bye-laws ; Provided that in registering the bye-laws of a society the

               - egistrar shall not permit voting by proxy except in cases, such as those involving

**■a wide area of operation, where it would be difficult for members to exercise their**
.■right to vote if voting by proxy were not permitted.

18. **Member of unlimited society to furnish information as to his financial**

**■position.—** (1) A full, true and accurate statement of his assets including his immo-

               - able property and liabilities shall be furnished—

(a) by an applicant for membership of a registered society with unlimited

                - iability, together with his application,

(b) by a member of a registered society with unlimited liability when

              - equired to do so by the Registrar or any person authorised by him in this behalf

               - r by the affiliating society.

           - (2) No member of a registered society with unlimited liability shall be a

             - ember of more than one such society.

           - (3) A member of a registered society with unlimited liability shall furnish to

               - he society full, true and accurate information regarding his intention to transfer

               - is immovable property, in whole or in part by way of sale, mortgage or gift at least

               - ifteen days before completion of each such transaction.

19. **Loan to be utilised for the purpose for** **which** **advanced.—The loan**

               - advanced by a registered society to a member thereof shall be utilised by him for

1 the purpose for which it was advanced and for no other purpose. The society

j shall have power to recover the advance as prescribed if the member does not so

| utilise it.

20. **Restrictions on transfer of share or interest.—** (1) The transfer or charge

               - of the share or interest of a member in the capital of a registered society, shall be

j subject to such conditions as to maximum holding as may be prescribed by this

Act or by the rules.

(2) Except as otherwise provided in this Act no transfer or charge of his

share or interest by a member of a society with unlimited liability shall be valid

it: unless :—

(a) he has held such share or interest for not less than one year ; and
(b) the transferee or mortgagee is cither a member of such society or a

person whose application for membership hag been accepted.

21. **Liability of past member and his estate.—(1) The liability of** a past

I

' member and of the estate of a deceased member for the debts of a registered

society as they existed at the date of his ceasing to be a member or of his death,
as the case may be, shall continue for a period of four- years from the said

date.

(2) No past member of a registered society with unlimited liability shall **be**

eligible for membership of another such society with unlimited liability except with
the special permission of the Registrar.

If 22. **Share or interest not liable to attachment.—Notwithstanding** anything

contained in any law for the time being in force but subject to the provision of
section 44 of this Act, the share or interest of a member in the capital of a registered

## ie society or in any fund under section 53 shall not be liable to attachment or sale


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under any decree or order of a court in respect of any debt or liability incurred
such member nor be subject to any claim by a receiver under the Provincial Ins
vency Act, 1920 (V of 1920).

23. **Nomination of transferee.—If the bye-laws of a registered society**

permit, any member of the society may, in accordance therewith nominate a persi
or persons in whose favour the society shall dispose of the shares or interests
such member on his death.

24. **Transfer of interest on death of member.—When a member of a registe**

society dies his shares and interest in the society shall, subject to the provisions
this Act, be transferred—

(a) to the person, if any, nominated in accordance with the provision

section 23 ; or

(b) if there be no such nominee or if the nominee is not available or:

difficult to be ascertained by the managing body, or if for any other cause sa
transfer cannot be made without unreasonable delay or difficulty, to the persons
may appear to the managing body to be the heir or legal representative of ti
deceased member; provided that ninety days have elapsed from the date of
member’s death. No new claim shall be entertained after the said period of nine
days.

25. **Disposal of shares or interest of ceased members.—When a member oh**

registered society is expelled or withdraws or otherwise ceases to be a meml
under this Act, rules or bye-laws his share or interest shall be transferred 1

another eligible person, and the value thereof, determined in accordance with ti
rules, shall be paid to such ceased member if his share or interest is not f<

under the provisions of this Act, rules or bye-laws or if he is insane, to any ,
appointed to manage his properties under the Indian Lunacy Act, 1912 (IV

1912) ; provided that if there is no eligible transferee and if die bye-laws of t

society so provide the value of his share or interest determined in accordance wi

the bye-laws shall be paid to him or, if he is insane, to any person appointed i
manage his properties under the Indian Lunacy Act, 1912.

26. **Liability of members on winding up of society.—The members of a regi**

tered society shall in the winding up of the society, be jointly and severally liable
contribute towards any deficiency in the assets of the society—

(a) in the case of a society with unlimited liability without lim it; and
(b) in the case of a society with limited liability, subject to such limitati

of amount as may be provided in the bye-laws.

27. **Restriction on transfer of possession of land held under** **a** **society!**

Notwithstanding anything in any law for the time being in force—

(1) a member of a registered society, the object of which is to develop

operative or Collective farming, shall not be entitled to transfer his possession $
interest in any land held by him under the society, except to the society or with the

previous approval of the managing body and in accordance with its bye-laws, to"

member thereof or to a person who will be admitted as a member of the societi

(2) on the death of such a member, his possession of and interest in, anj

such land held by him under the society shall come to his nominee in accordai
with the provisions of section 23 or in the first eligible heir according to seniojj
in age willing to become a member of the society ;

(3) if no nominee or heir becomes a member the possession of and intercs

in, such land of the deceased, shall vest in the society, which shall pay to the r

nee or the heir, a sum equivalent to the value of the share and interest of
deceased member and any other sum due from the society as determined in accord
ance with this Act or rules framed thereunder after deducting all dues which ti
deceased member owned to the society ;


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277

(4) if there is no person qualified to succeed to the share or interest of the

deceased member the society shall pay to his heir, executor or the legal representa­
tive as the case may be, a sum equivalent to the value of the share and interest
of the deceased member as determined in accordance with the rules after deduct­
ing the dues of the deceased to the society ;

(5) when in any other case a member ceases to be a member of such

a society under this Act, rules or bye-laws, his possession of and interest in, any
such land held by him under the society shall come to the society. If the bye­

laws allow and if the share and interest of the member is not forfeited under this
Act or rules framed thereunder, the society shall pay to the ceased member a sum
equivalent to the value of the share and interest of such member and any other
sum due to him from the society after deducting his debts to the society, if any ;

(6) no land held under a registered society specified in sub-section (1) by

a member thereof, or vested under sub-section (2) in the heir or nominee of such
member, shall be attachable in any suit or proceeding for the recovery of any
debt other than a debt due to the society or to a member thereof ;

(7) no land shall vest in such a society by reason of the provisions of this

section unless it is owned by the society or has been leased to the society and,
if the society holds the land by lease or contract, the land shall vest in the society
only during the pendency of the lease or contract.

28. **Right of a registered society to pay prior debts of a mortgagor.—**

(1) Where a mortgage is executed in favour of a registered society for payment
of prior debts or part thereof, of the mortgagor secured on the mortgaged pro­
perty, the registered society may, notwithstanding the provisions of sections 83
and 84 of the Transfer of Property Act, 1882 (IV of 1882), by notice in writing
and served by registered post with acknowledgment due, require any person to
whom any such debt is due to receive payment of such debt or part thereof from
the society at its registered office within such period as may be specified in the
notice.

(2) The person on whom such notice is served shall be bound to receive

payment of the amount offered by the society, but where there is disagreement
or dispute between the mortgagor and such person as regards the amount of the
debt, or where the society tenders less than the agreed amount of debt, the receipt
of the sum offered by the society shall not debar such person from enforcing
his right to recover the balance claimed by him.

(3) If any such person refused to receive such notice or such payment, such

debt or part thereof as the case may be, shall cease to carry interest from the
expiration of the period specified in the notice and the property mortgaged under
sub-section (1) shall be deemed to have been freed from the encumbrance of
such prior mortgage.

(4) No society shall advance a loan on a mortgage without taking a declara­

tion from the prospective mortgagor as to the names of prior mortgagees of the
property in question, if any.

29. **Restrictions on mortgaged property,—Where land is mortgaged to** **a**

registered society—(1) the mortgagor shall not be entitled without the approval
of the society to transfer or mortgage his equity of redemption or to create a

charge upon or lease out such property for a period exceeding three years.

(2) If the mortgaged property at any time is wholly or partially destroyed

or the security is rendered insufficient due to fall in value or for any other reason

and the mortgagor having been given a reasonable opportunity by the society
of providing for further security sufficient to cover the loan or of repaying the
loan with interest or such portion of the loan as may be determined by the super­
visory, managing or controlling body and the mortgagor having failed to provide
such security or repay such portion of the loan, the whole of the loan or such
uncovered portion shall be deemed to fall due at once and recoverable through
a co-operative demand certificate.


-----

(3) Notwithstanding anything contained in the Transfer of Property Act,

1882 (IV of 1882), the mortgaged property, in case of default of payment of mort­

gage money or any part thereof, may be sold by the society as prescribed by rules
in addition to any other remedy available to it, without the intervention of th?
court, if a power of sale without the intervention of court is expressly conferred!
by the mortgage deed, provided the society serves a notice in writing by registered
post demanding payment of the mortgage money with interest, or part thereof*
upon the mortgagor or, any person having an interest in or charge upon the
mortgaged property or the equity of redemption who has previously notified the!
society of such interest or charge in writing or any surety, and if default has
been made in payment of the loan or part thereof for three months after such
service of notice. Provided that any party aggrieved by an action taken by a

registered society under this section may prefer an appeal to the Registrar-

within thirty days from the date of the sale. His decision shall be final.

30. **Bar to certain claim.—** All payments and transfer made by a registered

society under this chapter, shall be valid and effectual against any demand made
upon the society by any other person.

CHAPTER IV

**Management**

31. **General Assembly.—** (1) The General Assembly of a registered society

shall consist of all those who are eligible to vote at general meetings of the
society. '

(2) (a) Every member of a registered society and every _ex-officio member of_

the Administrative Council or managing body of such society, unless under some)
temporary disqualification, shall have the right to attend any general meeting of
the society and to exercise his vote at such meeting. Provided that the bye-laws

of a registered society may prescribe—

(i) that a registered society affiliated to such society may have more than

one representative entitled to vote at general meetings of the society ; and

(ii) that only one-third of the members of the General Assembly, excluding

_ex-officio members, may be individual members,_ the other two-third being

representatives of affiliated registered societies.

(b) When the bye-laws of a registered society contain the provision of sub­

section (2) (a) (ii), if the number of individual members exceed one-third of the
total membership of the society, the individual members shall elect at a special
meeting, to be called by the Secretary of the society not more than one month
before the annual general meeting in the manner prescribed in the bye-laws for
annual general meetings, those individual members who, as the representatives
of the body of individual members, shall form the one-third membership!
of the General Assembly for the purpose of voting at the annual and
other meetings of the General Assembly during the ensuing year, only such elected
representatives having the right to attend and vote at such general meetings.

(3) The supreme authority of a registered society shall be vested in the Gene­

ral Assembly. Provided that during the pendency of any loan or service from the

Government, or any other creditor secured at the instance of the Government, the
supreme authority in respect of any matter adversely affecting the interests of the
Government or the said creditor touching such loan or service shall be vested in
the *[State] Government or the Registrar, as may be provided in the bye-laws, or
any person authorised by them in writing, and may extend to the appointment of
officers to hold any of the offices of the society or any persons to be _ex-officio:_

♦Substituted by A.O., 1950 for “Provincial”.


-----

**279**

' pinembers of the Administrative Council, managing body or any- committee of the

i j.«ociety even if not members of the society. This supreme authority of the Govern­

ment or Registrar may also be cxcercised in the absence of any loan or service

i ‘when the Government or Registrar, as the case may be, deem their intervention

to be necessary in the interests of the members of the society or of the Co-operative

| movement in general. The Government or the Registrar as the case may be, may

a : fix the salary of any such appointed officer and declare it to be a charge on the

| society. They may cancel any such appointments made by them.

(4) An annual or special meeting of the General Assembly shall be sum­

moned and shall exercise its authority and perform its functions in such manner

as may be prescribed in the bye-laws of the society.

32. **Annual Meeting of General Assembly.—(1) A** general meeting to be

  - ermed the annual general meeting of the General Assembly of a registered society

shall be held at least once in every Co-operative year for the purpose of—

(a) electing members to the Administrative Council, managing body and

other committees of the society, the Chairman, Vice-Chairman, and other office­
bearers, as may be provided in the bye-laws, and fixing such fees, salaries or other

-remuneration as prescribed in the bye-laws ; provided that the Government may
mrescribe by rules the qualifications necessary for office-bearers and employees;

(b) electing an internal auditor or auditors, who shall not be members

of the Administrative Council or governing body, and fixing the remuneration;

(c) considering the annual report of the Administrative Council or, if there

no Administrative Council, of the managing body, audit report and audited

| ^annual accounts and balance sheets and reviewing the working of the society
I during the preceding Co-operative year ;

(d) deciding how profits are to be distributed in accordance with the bye-

s : laws ;

(e) passing the annual budget and approving the programme of work for

I Bhe ensuing year ;

(f) fixing the maximum amount of liability to be incurred during the

  - nsuing year and the maximum rate of interest payable on deposits ; and

(g) considering such other business as may be placed before the meeting

| Jn accordance with the bye-laws.

(2) Such meeting shall be held not more than fifteen months after the date

a sof the last preceding meeting held under sub-section (1) and unless the Regis-

 - trar on special grounds extend the period, within three months of the receipt of
the statutory annual audit report.

33. **Special meeting of General Assembly.—Special meeting of General Assembly.—(1)** **A** Special Meeting of the Special Meeting of the

| ’General Assembly shall be called—

(a) at the instance of the Administrative Council or if there be no Admi-

?nistrative Council of the managing body ;

(b) at the request of the Chairman of the society;

R (c) on a requisition signed by one-tenth of the members of the General

Assembly or twenty members, whichever is less ; or

(d) at the instance of the Registrar.-

(2) The Registrar himself or any person authorised by him in this behalf, Registrar himself or any person authorised by him in this behalf.

in writing, may, by special order call a special meeting of the General Assembly
at any time and shall call such a meeting upon the failure of the society to call
a.meeting on the requisition by the members or at the instance of the Registrar

ir sub-section (1).

(3) Notwithstanding any rule or bye-law prescribing the method of sum-

jnoning or period of notice for a General Assembly, the Registrar or any person

authorised by him in this behalf, may specify the time, place; business for the
meeting and manner of convening it.


-----

280

34. **Administrative Council.—The management of every registered society;**

shall vest in the managing body of the society, except in the case of a society,
which for administrative convenience necessitated by reasons such as wide area
of operation, that responsibility shall vest in an Administrative Council. The
Administrative Council, the managing body and committees of a society shall
be constituted in accordance with the bye-laws of the society which shall specify
the composition of such bodies, their powers, functions, duties, method of sum­
moning meetings and procedure.

35. **Power to depute Government servant to manage the affairs of a society.—**

The *[State] Government may, on the application of a registered society and on
such conditions as may be determined, depute Government officials to the service
of the society for the purpose of managing its affairs and the official shall exercise
such powers and perform such duties as may be determined.

36. **Dissolution or reconstruction of the Administrative Council, managing**

**body or any committee of a society.—(1) When the Registrar is satisfied, after an**
inspection or enquiry under section 60 or 61 for reasons to be recorded in writing,
that the Administrative Council, managing body or any committee of a registered,
society is not functioning properly or according to this Act, rules or bye-laws,
he may, after giving the offending body an opportunity to state its case, direct
under clause (d) of sub-section (1) of section 33, that a special general meeting
of the General Assembly be called within a time to be specified to dissolve
the Administrative Council, managing body or committee concerned and to elect
a new one. Provided that, if in the opinion of the Registrar it is necessary as.'
an emergent measure to suspend the offending body forthwith, he may do so
and shall appoint a person or persons, on such conditions as prescribed by him,
to be in full control of the suspended body until a new body has been elected or
action has been taken in accordance with section 37.

(2) The Registrar may, for reasons to be recorded, specify in the direction!

made under sub-section (1) that all or any of the outgoing members of the •

dissolved body shall be disqualified for such period not exceeding three years
as he may determine, for election or appointment as an officer of the society or
for service on any of its bodies.

(3) An appeal shall lie to the *[State] Government against an order of

the Registrar disqualifying a member of a society for election or appointment
within two months from the receipt of the order.

37. **Dissolution of Administrative Council, managing body or any com­**

**mittee and appointment of persons to manage the affairs of a Society.—If the**
Administrative Council, managing body or any committee as the case may be, |
of a society is not dissolved and reconstituted within the time specified by the
Registrar under section 36, he may by order in writing dissolve such body and
shall thereupon appoint a person or persons, on such conditions as prescribed t
by him, to manage the affairs of the society for such period not exceeding one
year when he shall arrange for the constitution of a new body to take the 1
place of the dissolved body. The Registrar may extend this period from time
to time as he may deem fit; provided that the aggregate of such periods shall
not exceed three years.

38. **Tenure of office of the person appointed under section 37.—The person**

appointed under section 37 shall hold office until the Administrative Council,
managing body or committee, as the case may be, is reconstituted or his appoint­
ment is cancelled by the Registrar.

♦Substituted by A.O., 1950 for “Provincial”.


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281

39. **Powers of person appointed under section 37.—During the tenure of**

office of a person appointed under section 37 such person shall, subject to the
control of the Registrar, exercise all the powers and perform all the functions **and**
duties which may be exercised or performed by the superseded body under the
provisions of this Act, rules or bye-laws.

## CHAPTER V

**Duties of Registered Society**

40. **Address of Society.—Every registered society shall have a registered**

address, to which all notices and communications may be sent and shall send
notice in writing of every change thereof, within thirty days of such change,
to the Registrar and to the affiliating society if any.

41. **Prescription and inspection of documents.—(I) Every registered society**

shall keep and allow inspection free of charge by any member of the society
and such other persons as may be prescribed al all reasonable limes at the office
of the society—

(a) A copy of this Act.
(b) A copy of the rules framed under this Act.
(c) A copy of the bye-laws of the society.
(d) A copy of all rules framed under the bye-laws of the society.
(e) Annual balance sheet authenticated by the Audit Officer, and
(f) Such other books, forms, registers or other documents as may be pres­

cribed by the Registrar.

(2) A society shall deliver to every member on payment of a sum prescribed

by tlic society’s bye-laws or rules, copies of documents certified to be true copies.

42. **Restrictions on borrowing.—A registered society may receive deposits**

and may borrow from its members and from persons who are not members to
such extent and on such conditions as may be prescribed in the Act and bye-laws.

43. **Power of Government to give** **financial** **assistance.—** Notwithstanding

anything contained in any law foi the time being inforce, the [State][1] Govern­

ment may grant loans to, take shares in. guarantee the principal or the interest
or both in respect of debentures issued by or give financial assistance in any other
form to. any registered society, which puts forward a satisfactory scheme for
ffic utilisation of the funds so raised. The [State]' Government may recover

from any society out of its net profit in any year all or any part of such financial
assistance.

44. **Restrictions on loans.—(1) A registered society shall not give loans—**

(a) to any person other than a member except with the general or special

sanction of the Registrar : provided that a loan may be given to a depositor of
the society on the security of his deposit, or

(b) to a member in excess either of (he maximum or of the normal credit

determined by the society for that member in accordance with its bye-laws:
provided that in assessing normal credit the managing body shall take a full
statement as to the member’s means of earning,

(c) on the security of movable property or future movable property, unless

the movable property is placed with the society,

(d) on persona) security without sureties, unless the borrowing member

has unencumbered immovable property or attachable funded assets sufficient to
cover the loan and a full statement of such securities is submitted by the borrower
and the truth of the statement is ascertained by the managing body.

(c) on personal security with sureties, unless the borrowing member and

his sureties together have unencumbered immovable property or attachable funded

'Substituted by the A.O., 195(1 for “Provincial”.


-----

provide the means of such supply, of seed, manure. Labour, fodder
for cattle or any other thing incidental to the conduct of agricultural,
operations—upon the crops or agricultural produce of such member;'
past member or belonging to the estate of such deceased member, at
any time within two years from the date of such supply or loan or froni
the date on which the last instalment of such supply or loan became fil
repayable ;


assets sufficient to cover the loan and a full statement of such securities;
submitted by the borrower and the sureties separately and the truth of th

statements is ascertained by the managing body,

(f) on personal security, with or without sureties, unless the loan is fot

short period not exceeding the time required to reap the benefit of the loan as
in no case exceeding three years.

(2) (a) Notwithstanding the provisions of sub-clauses (l)(b), (d) and (

**a** loan may be given on personal security provided that the managing body
the society is satisfied as to the credit of the borrower and has taken from If
a scheme for the utilisation of the loan and has ascertained the truth of the s.tiL

ments contained in the scheme and the _bona fides of the borrowing member,_

(b) the resolution of the managing body granting a loan under this sect-

shall contain the names of all assenting members ; provided that, if such names at

omitted from the proceedings of the meeting, (he Chairman and Secretary slya

be held jointly and severally responsible for the issue of the loan,

(c) notwithstanding the provisions of sub-clauses (l)(b) to (f) and (2)(j

and (b), a registered society may issue a loan on mortgage or valuable security;!

(d) no person shall be accepted as a surety for any borrower unless

is also a member of the same registered society.

(3) A registered society, the primary object of which is not the issue c

loans, shall open a separate accounting or finance or banking branch in accot
ance with its bye-laws and frame rules for the conduct of business in sue!

branch before it issues any Ioans and such rules shall first be approved by t’w

Registrar.

45. **Office-bearer of society is required to furnish information and produa**

**documents.—(1) Every office-bearer of a registered society shall produce docjj**
ments and books of account, cash balance in his custody, and appear before
and furnish such information in regard to the transactions or working of t$
society as may be required of him by the Registrar, or persons authorized by

the Registrar in this behalf, an audit officer, arbitrator, liquidator or any perso

conducting an inspection or inquiry under the provisions of this Act and the

Rules made thereunder.

(2) (a) At any sale of property, movable or immovable, held under this Ac

or rules framed thereunder, no office-bearer of the registered society concern
or any person having any duty to perform in connection with such sale, shall
either directly or indirectly bid for, acquire or attempt to acquire any interest in

such property.

(b) Any office-bearer of a society or a liquidator may on behalf of the

society bid and purchase at a sale of mortgaged property.

CHAPTER VI

**Privileges of Registered Societies**

46. **Prior claim of a society.—(1) Notwithstanding anything contained in:**

sections 60 and 61 of the Code of Civil Procedure, 1.908 (V of 1908), any
or outstanding demand due to a registered society by any member, surety, past
member, or the estate of any deceased member shall be a first charge,

(a) if such debt or demand is due in respect of the supply, or any loan

provide the means of such supply, of seed, manure. Labour, fodder
for cattle or any other thing incidental to the conduct of agricultural,
operations—upon the crops or agricultural produce of such member;'
past member or belonging to the estate of such deceased member, at
any time within two years from the date of such supply or loan or froni
the date on which the last instalment of such supply or loan became fil
repayable ;


-----

(b) if such debt or demand is due in respect of the supply of or any loan

for the purchase of cattle, agricultural implements or warehouses for
the storage of agricultural produce—in the manner and to the extent
aforesaid upon the crops or agricultural produce of such member,
past member or belonging to the estate of such deceased member and
also upon the cattle, agricultural implements or warehouse thus sup-

 - plied or purchased wholly or in part from any such loan ;

(c) if such debt or demand is due in respect of the supply of. or any loan

lor the purchase of raw materials, industrial implements, machinery,
workshop, warehouses or business premises,—upon the raw materials
or other things supplied or purchased by such member, past member
or the deceased member wholly or in part from any such loan and
also upon any articles manufactured front raw materials or with im­
plements or machinery so supplied or purchased wholly or in part

j from any such loan ;

(d) if such, debt or demand is due in respect of any loan for the purchase,

improvement or redemption of land or for the purchase or construc­
tion of any house, building or any portion thereof,—upon the land

j purchased, improved or redeemed or the house or building so pur­
chased or constructed by such member, past member or the deceased
member from any such loan.

'i (2) Nothing in this section shall affect the claims of any _bona /ide purchaser_

or transferee for value without notice.

47. **Charge and set oil' in respect of** shares **or interest of members.—A** regis-

lered society shall have a charge upon the share or interest in the Capital and

’ on the deposits of a member or past member or deceased member and upon any

dividend, bonus or surplus payable to a member or past, member or (he estate

; of a deceased member in respect of any debt due from such member or past

' member or estate of such deceased member to tile society, and may set off any
1 sum credited or payable to a member or past member or estate of a deceased

: ; member in or towards payment of any such debt.

48. **Deduction of** dues **from salary of** members.—(f a member of a registered

 - iocicly, who is an employee of the Government or any local authority, takes **a**

1 ' loan irom a society and contracts to repay it by instalments, and authorises the

- society to recover such instalments by deduction front his salary, the person
I rho disbm :<•*; any amount payable to such member as salary or remuneration

| in respect of such employment shall, on demand from the society, deduct the

1 , iniount of such instalment from the amount disbursed to such member as salary

< and shall forthwith remit to the society the amount so deducted.

49. Exemption from compulsory registration **and personal attendance for**

registration ok' insiriiinents.—Nothing in clauses (b) and (c) of sub-seclion (1) of

lection 17 of the Indian Registration Act, 1908 (XVI of 1908), shall apply to :—

(1) any instntment relating to shares in a registered society, notwithstanding

that assets of such society consists in whole or in part of immovable property; **or**

(2) any debenture issued by any such society and not creating, declaring.

; issigning, limiting or extinguishing any right, tide or interest to or in immovable

 - properly, except in so far as it entitles the bolder to the security afforded by a

 - register.: d instrument whereby the society has mortgaged, conveyed or otherwise

' transferred the whole or part of its immovable property or any interest therein
; to trustees upon trust for the benefit of the holder of such debentures : or

« (3) any endorsement upon or transfer of any debenture issued by any such

j society.
; (4) Notwithstanding anything contained in the Indian Registration Act, 1908,

l it shall not be necessary for any office bearer ot a registered society or a liqiiR
; dator of a society to appear in person or by agent at any registration office in


-----

any proceeding connected with the registration of any instrument executed by

him in his official capacity or to sign as provided in section 58 of that Act. (

(5) Where any instrument is so executed, the registering officer to whpn |

such instrument is presented for registration may. if he thinks tit, refer to sucl '
office bearer or liquidator for information regarding the same and on beinj fe

satisfied of the execution thereof, shall register the instrument.

50. **Power to remit certain duties, fees, etc.—(1) The [State][1] Governmen**

may by general or special order in the case of a registered society or class o

registered societies remit any tax, cess or fee payable under any law for the

time being in force or the rules thereunder in respect of which they are con)
petent to remit such tax, cess or fee.

r(2) The ’[State] Government may, in respect of any registered society . _         -         -         - _ot :_

class of registered societies, by notification in the official gazette, remit

(a) the stamp duty other than stamp duties falling within [item 91 or 95

i_ __ _ „ --- ---------in list 1 of the Seventh Schedule to the Constitution of India][2] in respect
of any instrument executed by, or on behalf of, or in favour of I

a registered society or by an officer or on behalf of a member thereof. a | |

relating to the business of such society or any class of such instruments, crelating to the business of such society or any class of such instruments, cooi ,

operative demand certificates or decisions awards or orders of Registrar or arbi­

trators under this Act, in cases where, but for such remission, the registered trators under this Act, in cases where, but for such remission, the registered ;
society, officer or member thereof, as the case may be, would be liable to pay
the stamp duty chargeable under any law for the time being in force, in respec respec
of such instrument, and ...... „..J 1

(b) any fee payable by a registered society under any law for the time ;

being in force for the registration of documents or of court fee for the time
being in force.

CHAPTER VII

**Property and Funds of Registered Society**

51. **Investment of Funds.—** (1) A registered society may invest or deposit i|

funds—

(a) in a Government Savings Bank, or
(b) in any of the securities specified in section 20 of the Indian Trust Act, •

1882, other than those specified in clause (c) of that section, or

(c) with the sanction of the Registrar, in the shares or debentures or in

Jhe security of any other registered society, or

(d) with any registered society, bank or persons carrying on the business

of banking approved for this purpose by the Registrar, or

(e) in any other mode permitted by the bye-laws.

(2) Such investment shall be accounted for separately from the Reserve Funt ;

of the registered society.

52. **Reserve Fund.—<1) Every registered society shall maintain a Reservt**

Fund formed from its profits and carry to the fund in each year not less than
twenty per centum of its net profits.

(2) The Reserve Fund shall be invested separately in any of the wayj

prescribed in section 51 or, with the sanction of the Registrar, in immovable
property required for the furtherance of the activities of the society. Any .suet
investment shall be deemed to constitute Reserve Fund. No instrument securing

a loan on a Reserve Fund shall be valid.

’Substituted by the A.O., 1950 for “Provincial”.
Substituted by the Assam Co-operative Societies (Amendment) Act, 1953/-


-----

(3) The Reserve Fund shall not be utilised for any purpose whatsoever

‘except with the sanction of the Registrar, who shall accord such sanction only

  - n exceptional circumstances.

53. **Distribution of net profit.—After making the allocation to the Reserve**

Fund as prescribed in the section 52, the remaining net prpfits of a registered
society may be distributed according to the bye-laws of the society.

54. **Restriction on distribution of profits.—(1) Save as may be prescribed,**

;no distribution of profit shall be made in the case of a registered society with
"unlimited liability and no part of the net profit or of a fund of any society shall

be divided by way of dividend, bonus, patronage dividend, rebate or otherwise

iamong its members.

(2) No dividend, bonus, patronage dividend, or rebate shall be paid—

(a) otherwise than out of net profits certified by the audit officer to have

been actually realised ; provided that advance patronage dividend may be paid

 - n accordance with the directions of the Registrar and on the certificate of an

internal auditor approved by the Registrar; or

(b) without the previous sanction of the Registrar, if the audit officer

reports that any asset is bad or doubtful and also recommends that such sanction
is necessary.

(3) Notwithstanding anything contained in this section payments may be

made to . members as a fixed interest on share capital, if so provided in the bye-

/laws.

CHAPTER VIII

**Audit**

F 55. **Registrar is responsible for audit.-—(1) The Registrar shall** audit or

cause to be audited by some person authorized by him by general or special order
in writing in this behalf the accounts of every registered society and society under
liquidation once at least in every year.

(2) The Registrar or the person authorized by him in this behalf shall al

all reasonable times have free access to the books, accounts, documents, securities,
cash and other properties belonging to or in the custody of the society and may
summon any person in possession or responsible for the custody of any such
books, accounts, documents, securities, cash or other properties to produce the
same and-furnish such information in regard to the transactions and working

 - of the society at any convenient place or at the headquarters of the society or

any branch thereof by the same means and, so far as may be, in the same manner
as provided in the Code of Civil Procedure, 1908 (V of 1908).

(3) In respect of every audit of the accounts, a registered society shall pay

such audit fee as may be prescribed and such fee shall be deemed to be out-

  - standing dues from the society.

56. **Power of the Registrar to have the Accounts written up.—If at the**

' time of the audit the accounts of a registered society are not complete, the Regis-

**ytrar** or with his sanction, the audit officer, may cause the accounts to be written

up at the expense of the society.

57. **Nature of audit.—The audit shall include—**

(i) a verification of the cash balance and securities :
(ii) a verification of the balance at the credit of the depositors and cre­

ditors and of the amounts due from the debtors of the society ;

(iii) an examination of overdue debts, if any;
(iv) the valuation of the assets including stock verifications, and liabilities

of the society;


-----

(v) an examination of the statement of accounts and balance sheets

be prepared by the managing body of the society in such forms as may
prescribed ;

(vi) a certification of the realised profits ; and
(vii) any other relevant matter.

58. **Audit report.—The audit officer shall, within a week from the date**

completion of audit, submit to the registered society, and to the Registrar, together

with the statement of accounts audited, an audit report t including a statement
of—

(i) every transaction which appears to him to be contrary to law or to

the rules or bye-laws ;

(ii) every sum which ought to have been but has not been brought into

account;

(iii) the amount of deficiency or loss which appears to have resulted

any negligence or misconduct or to require further investigation;

(iv) any money or property belonging to the society which appears to have

been misappropriated or fraudulently retained by auy person ;

(v) any of the assets which appears to him to be bad or doubtful;
(vi) any irregularity in maintaining account; and
(vii) any other relevant matter.

59. **Rectification of defects.—A registered society shall be afforded by the**

Registrar an opportunity of explaining any defects, or irregularities pointed out
and objected to by the audit officer, and thereafter the society shall, within
such time and in such manner as the Registrar may direct, remedy such defects
and irregularities and report to the Registrar the action taken by it thereon.

CHAPTER IX

**Inquiry and Inspection**

60. **Inquiry by Registrar.—(1) The Registrar may, at any time, of his own**

motion or shall at the request of the administrative head in charge of the Civil
Subdivision or other Administrative Area, hold an inquiry or direct some person
authorized by him by order in writing in this behalf, to hold an enquiry into
the constitution, working and financial condition of a registered society.

(2) Such an inquiry shall also be held on the application of

(i) the affiliating society, if any, of which the society is a member and a i

debtor ;

(ii) a majority of the members of the managing body ;
(iii) one-third of the members of the society, who shall have deposited

such security for costs, if any, as the Registrar may direct;

(iv) creditors representing not less than one half of the borrowed Capital

of the society, who shall have deposited such security for costs, if any, as the
Registrar may direct.

“ (3) The Registrar shall communicate the result of any enquiry under this

section to the society and to the person at whose request such enquiry was made.

61. **Inspection of society.—(1) Every registered society shall be liable to**

inspection at any time by the Registrar or any person authorized by him in this
behalf by general or special order; and by any affiliating society if so provided
in its bye-laws.

(2) An inspection of a registered society shall be made by the Registrar or

any person authorised by him in this behalf by an order in writing at any time
on the application of a creditor of a registered society;

Provided that no inspection shall be made under this sub-section unless

(i) the creditor deposits with the Registrar such sum as security for the cost of
the proposed inspection as the Registrar may require and (ii) the creditor satisfies


-----

the Registrar that the alleged debt is a sum then due and that he has demanded
payment thereof and has not received satisfaction within a reasonable time:

Provided further that no inspection shall be conducted under this sub-section

without giving the society an opportunity of being heard.

(3) The result of an inspection under this section shall be communicated

to the society and if held at the instance of a creditor, to the creditor.

62. **Cost of enquiry and. inspection.—(1) When an inquiry is held under sec­**

tion 60(2) or an inspection is made under section 61(2), the Registrar may.
after giving the parties an opportunity of being heard, apportion the cost or
such part of the cost as he may deem fit. between 'he society, the members thereof
o] 1he affiliating society or (he creditor or creditors applying for such inspection
or inquiry, as the 'ase may be, and the officers, former officers, members and
past member; of the society.

(2) No expenditure from (he fund of a registered society shall be incurred

for (be purpose of defraying any cost m support of any appeal preferred by any
person other than the society itself against an order under sub-section (1).

(3) Any person authorised by the Registrar under sections 60 and 61 shall

have all the powers of the Registrar when acting under these sections.

Recovery of costs.- ■ (4) Any sum awarded by way of cost under this section

shall be recoverable through a Co-operative demand certificate.

CHAPTER X

**Settlement of Dispute's**

63 Reference «>f dispute.—Any dispute touching the business of a registered

society, other than a dispute icgardins disciplinary action taken by a society
against :m employee of the society, or of the liquidator of a society shall be
referred to the Registrar for decision if the parties thereto are among the

following

(a) the society, ils past or present controlling or managing body, any past

or present officer, agent or employee or the liquidator of the society : oi

(b) member, past member or persons claiming through a member, pas!

member or deceased member of the society : or

(c) a surety of a member, a past member or deceased member of a society ;

or

(d) any other registered society or the liquidator of such society.

64. **Settlement of dispute —fl' I he Registrar shall on receipt ot a reference**

under section 63—

fa) decide the dispute himself ot authorise any other Government Officer

to decide the dispute : or

fb) refer it for disposal to an arbitrator appointed by the Registrar or to

three arbitrators one to be nominated by each of th- parties to the dispute and
the third, who shall be nominated by the Registrar, *<.■> act as < h orman Where

any party to lite dispute fails to nominal' an arbitratoi within fifteen days after
the communication of this notice. th' Regi-.tr ir may himself make the nomination.
No legal practitioner may hr- nominated as an arbitrator by any party to a
dispute or by (he Registrar

(c) An arbitrator appointed under the previous sub-clause shall be governed

by the Indian Arbitration Act, 1940 fX of 1940). with sinh statutory re-enact­
ment or modification thereof as shall from time to time be made.

(2) The Registrar may withdraw any reference of such dispute referred

under sub-section (1) and may deal with it himself under the said sub-section.


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288

(3) Where the Registrar is satisfied that a party to any reference made to

him under section 63 with intent to defeat or delay the execution of any decision;
that may be passed thereon—

(a) is about to dispose of the whole or any part of his property ; or "i

(b) is about to remove the whole or any part of his property from tht,

local limits of the jurisdiction of the Registrar, the Registrar may, unless ade­
quate security is furnished, direct the conditional attachment of the said property
or such part thereof as he deems necessary ; and such attachment shall have
the same effect as if it had been made by a competent Civil Court.

CHAPTER XI

**Dissolution of Society**

65. **Cancellation of registration.—(1) If the Registrar,** on receipt of an

application made upon a resolution adopted in a meeting of the General . Assent;
bly by a three fourths majority of the members present at the meeting provided
that the notice of dissolution was included in the circulated agenda of the meeting
**is** of opinion that society ought to be dissolved, he may by an order in writing,
cancel the registration of the society.

(2) The Registrar, after an enquiry has been held under section 60 or aftef

an inspection has been made under section 61, may cancel the registration of a

society which—

(i) has not commenced working ; or

(ii) has ceased working ; or

Git) has ceased to comply materially with any condition as to registration

in this Act. rules or bye-laws, and

(iv) in his opinion ought to be dissolved.

(3) A copy of the order cancelling the registration of a society shall forth*

With be published in the official Gazette by a notice which shall be communi­
cated to the society and to any affiliating society concerned by registered post;
The notice shall contain the name of the liquidator appointed under section 66,

who shall take full charge of the society forthwith and shall require all claim!
against the said society to be made to the liquidator within two months of pu|
lication of the notice. All liabilities recorded in the account books of the society

shall be deemed _ipso facto to have been so claimed._

(4) When the cancellation of the registration of a society takes effect, **th(**

society shall cease to exist as a corporate body, but shall vest in the liquidator. 1

(5) Any member of the society may, within two months from the date of

publication of the order of cancellation, appeal to the [State][1] Government froflj

such order.

(6) Where no appeal is presented within two months from the publicatioi

of an order cancelling the registration of the society, the order shall take effee
on the expiry of that period.

(7) When an appeal is presented within two months of an order of can

cellation. the order shall not take effect until it is confirmed by the [State]
Government and such confirmation is communicated to the society by register^
post.

66. **Winding** op.—(1) Where an order of cancellation of the registration

**of** a society is made by the Registrar under section 65, he may appoint am

person to be the liquidator of the society and may remove such person ant
appoint another in his place.

‘Substituted by the A.O., 1950 for “Provincial”.


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(2) The liquidator appointed under sub-section (I) shall have power fro®

the date of his appointment to lake immediate possession of all assets, properties,
effects and actionable claims of the society or to which the society is entitled and
of all books, records, cash and other documents pertaining to the business of

the society and, in the interests of the society, shall hold charge of the society
notwithstanding the provisions of section 65, provided that no steps shall be
taken for the winding up of the society during the pendency of any stay order.

(3) The liquidator shall, under the general control of the Registrar, have

power, so far as is necessary for the winding up of the society, on behalf of the
society to carry on the business thereof and to do all acts and execute all docu­
ments necessary to such winding up, and in particular shall exercise the follow­
ing powers :—

(a) to institute, compromise and defend suits and oil er legal proceedings

on behalf of the society by his name of office ;

(b) to make any compromise or arrangement with any person between

whom and the society there exists any dispute ;

(c) to determine the debts due to the society by a member, past member

or the estate, nominees, heirs or legal representatives of a deceased member;

(d) to determine from time to time the contribution to be made or remain­

ing to be made by the members, past members or by the estates or nominees,
heirs or legal representatives of deceased members or by any officers or former
officers, to the assets of the society and to determine the debts due from such
members or persons and the cost of liquidation ;

(e) to calculate the cost of liquidation and to determine by what persons

and in what proportion they are to be borne ;

(f) to investigate all claims against the society and, subject to the provisions

of this Act, to decide questions of priority arising between claimants :

(g) to pay claims against the society including interest upto the date of

cancellation of registration according to their respective priorities, if any, in
full or rateably as the assets including the reserve fund of the society, permit;
the surplus, if any. remaining after payment of claims being applied in payment
of interest front the date of such cancellation at a rate fixed -y him but not
exceeding the contract rate in any case ;

(h) to take steps to recover dues according to the provisions of section 83,

if necessary ; and

(i) io dispose of the surplus, if any, remaining after paying the claims

against the society in accordance with section 67 of this Act.

(4) Subject to the provisions of this Act and rules made thereunder, a

liquidator appointed under this section shall, in so far as such powers are
necessary for carrying out the purposes of this section, have power to summon
and enforce the attendance of v i* ,esses and to compel the production of any

book, accounts, documents, securities, cash or other properties belonging to or
in the custody of the societ by the same means and so far as may be in the

same manner as is provided in the case of a civil court under the Code of Civil
Procedure. 1908 (V of 1908).

(5) Notwithstanding anything contained in any lav/ for the time being in

force, if any landed property is held by a liquidator as such the title over the
land shall be complete as soon as the mutation of the name of his office is
effected and no court shall question the title on the ground of dispossession,
want of possession or physical delivery of possession.

67. Distribution of fund of s dissolved society.—On dissolution of a society,

the reserve fund and any undisbursed cash in hand shall be applied to discharging
the liabilities of the society and the repayment of the share capital. Any sum.

that may remain, shall be credited to the reserve fund of a society, to be formed
to replace the dissolved society or, if there be no such society to any other


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290

deserving society existing within the same area of operation and having objects
similar to those of the dissolved society or, if there be no such society to any
other registered society in Assam, as may be determined by the Registrar.

68. **Liquidator to deposit the books and submit a final report.—When the**

affairs of a registered society have been wound up, the liquidator shall make _a_

report to the Registrar, who when satisfied shall order the liquidation proceedings
to be closed and direct the liquidator to deposit the records wheresoever the
Registrar thinks fit.

69. **Bar of suit.—** Save in so far as is expressly provided in this Act, no

Civil Court shall take cognizance o any matter connected with the winding up
or dissolution of a society under this Act and when a liquidator has been
appointed no suit or other legal proceedings shall lie or be proceeded with
against him except by leave of the Registrar and subject to such terms as he
may impose.

CHAPTER XII

**Recovery of sums due and Enforcement of obligations**

70. **Power of Registrar to** direct **payment of dues.—Notwithstanding any­**

thing contained in Chapter X, the Registrar or such other person as may be
authorised, in this behalf, may, on his own motion or on the written requisition
of a registered society or an affiliating society for the recovery of any loan
due by a defaulting member, after due enquiry, make an award directing pay­
ment by such member of the amount found to be due.

71. **Charge and Surcharge.—(1) Where, as the result of an audit under sec­**

tion 55. or an enquiry under section 60 or an inspection under section 61 or a
report made in the course of the winding up of a registered society, it appears
to the Registrar that any member, officer or employee past or present, of the

society has at any time within a period of four years prior to the date of such
audit, inspection, inquiry or report, as the case may be-

(a) intentionally, whether individually or as an assenting member of any

Managing or other controlling body, made or authorized any payment or granted
any loan which is contrary to the provision of this Act or to the rules or bye­
laws or failed to take timely steps to recover any loan at the due date or if it was;
being improperly utilised: or

(b) was grosslly negligent in respect of any loss or deficiency ; or
(c) failed to bring into account any sum which ought to have been brought

into account; or

(d) misappropriated or fraudulently retained any property of the society ; or
(e) committed breach of trust in relation to the society;

the Registrar may inquire into the conduct of such officer or member of the
managing or other controlling body.

(2) The Registrar may similarly inquire into the conduct relating to the

affairs of the society of any member, officer or employee, past or present, of a
registered society on the application of the present controlling or managing body
of the society, or liquidator, or any creditor, or any other registered society to
which the society is affiliated or any contributory.

(3) Upon such enquiry, after giving such member, officer or employee an

opportunity of being heard and, in the case of a payment made contrary to the |

provisions of this Act or rule or bye-laws, after affording such member, officer

or employee time to recover the amount of such payment from the payee and .

credit it to the funds of the society, the Registrar may by an order in writing J
require such member, officer or employee to pay such sum with interest at such i
rate as the Registrar may direct, to the society by way of compensation in respect j


-----

of such payment or los> or to restore such property as the Registrar thinks lit.
anti to pay such sum as .he Registrar may' lix to meet the cosi of the proceedings
under this section.

(4) Any award made by the Registrar under sub-section (3) shall be reduced

to the form of a Co-operative demand certificate, by the officer authorised to
issue such certificates.

(5) fliis section shall apply notwithstanding that such member, officer or em­

ployee may by his act or omission nave incurred in addition criminal liability
under this Act ot tiny other law for the time being in force.

(6) An appeal snarl lie io the [State][1] Government against an order passed

tinder sub-clause (J) (a) within thirty days of the communication of the order.

Cl-iAPTER Xllf

Penalty

72. Prohibition »i‘ the use ot the word “CG-opctalive” or “Samabaya”.—

(I) No person other than a society registered under this or any other Co-operative
Societies Act shall trade or carry on business unde; any name or title of which
lite word “Co-operative’ or its vernacular equivalent •’Samabaya” is a part:

Provided that nothing in this section shall apply to the use by any person,

or by his successor in interest of any name or title under which lie lawfully
traded or carried on business at the commencement of this Act.

(2) Whoever contravenes the provisions of this section shall be punishable

with fine which may extend to fifty rupees, and in the case of a continuing
offence with further fine of five rupees for each day on which the offence is
continued after conviction therefor.

73. Punishment for false return, false hifcraiation, disobeying summons,

orders, etc.—If (a) a registered society or an officer or member thereof or any

liquidator, wilfully makes a false return or furnishes false information or wilfully
neglects or refuses to do any act required by this Act or the rules or bye-laws;
or does anything contrary to this Act or the rules or bye-laws : or

(b) any person wilfully or without reasonable excuse disobeys any sum­

mons, requisition or lawfully written order issued under the provisions of this
Act or does net produce documents, or cash balance of the society or furnish any
information lawfully required from him by a person authorised in this behalf
under the provisions of this A.ct [2][or fails to maintain up-to-date accounts,

records and other documents of the Society required to be maintained by him

under this Act or the rules or bye-laws] he shall be punishable with line which

may extend to live hundred rupees ; and in the case of a continuing offence a further
fine of five rupees for each day on which the offence is continued after conviction
therefor.

74. Punishment for disposing property in contravention of section 46.—

Any member, past member or the nominee, heir or legal representative of a
deceased member removing or otherwise disposing of, or suffering to be removed
or otherwise disposed of, any property on which a registered society holds a first
charge under section 46 with intent ’to defraud the society or with such intent
doing any other act to the prejudice of the society’s first charge, shall be punish­
able with fine not exceeding five hundred rupees.

‘Substituted by the A.O., 1950 for “Provincial”.

'■inserted by the Assam Co-operative Societies (.Amendment) Act, 1953.


-----

75. **Penalty for certain misdemeanours.—Where it appears to the Registrars**

that any person has contravened the provisions of this Act, the rules or bye-laws-d|

(a) by sitting or voting or exercising his rights as a member, or as a mein-J

ber of any managing or controlling body, or voting in the affairs of a registered!
society as a representative of another society which is a member of such society,!
when such person was not entitled so to sit, vote or exercise such rights, as the!
case may be, or

(b) by utilising a loan for a purpose different from that for which it was!

granted,
the Registrar may, after affording such person an opportunity to be heard, by!
an order in writing direct him to pay the assets of the society by way of penalty:]
such sum not exceeding fifty rupees as the Registrar thinks fit.

76. **Power to enforce performance of obligations.—Notwithstanding anything-**

contained in this Act, where any registered society is required to take any action!

under this Act, the rules or bye-laws and such action is not taken within the|
time provided in this Act, the rules or bye-laws or within such time as thel
Registrar may specify by a notice in writing, where no time is so provided, thej
Registrar may call upon any officer of the society whom he considers to bet
responsible for the carrying out the directions, and after giving such officer!

an opportunity, to be heard, may require him to pay to the assets of the society!

such sum not exceeding twenty-five rupees as the Registrar may think fit for each -

day until the Registrar’s directions are carried out.

77. **Cognizance of offences.—(1) No court inferior to that of a Magistrate ofl**

the second class shall try any offence under this Act.

(2) No prosecution for an offence under this Act shall be instituted without;

the previous sanction of the Registrar.

(3) Offences under this Act may be tried summarily.

CHAPTER XIV

**Jurisdiction**

78. **Indemnity.—No suit, proceeding or prosecution whatever** shall lie

against the Registrar or any person acting on his authority, or against any liqui­
dator in respect of anything done or purporting to be done in good faith under
this Act.

79. **Bar to jurisdiction of Courts.** (1) Save as provided in this Act, no Civil

or Revenue Court shall have any jurisdiction in respect of—

(a) registration of a registered society or its bye-laws or amendments of

bye-laws; or

(b) the dissolution of a managing or controlling body and the manage*

ment of the affairs of the society on dissolution thereof; or

(c) any dispute referred to the Registrar ; or
(d) any matter in relation to the winding up and dissolution of a registered

society.

(2) Save as provided in this Act, no order, decision or award under this Act,

or working of the affairs of a registered society shall be liable to be challenged,
set aside, modified, revised or declared void in any court on any ground what­
soever except on grounds of jurisdiction.

80. **Appeal or review.—(1) Except where otherwise expressly provided to**

the contrary an appeal shall lie to the Registrar from the decisions made under
this Act or rules framed thereunder by any Government Officer, liquidator or
non-official helper appointed under sub-section (3) of section 3.

(2) The Registrar may review any order passed by him at any time within

two months from the communication of such order.


-----

(3) Save as provided in this Act or rules, no appeal shali lie to the [State][1]

Government against any order of the Registrar, except on a question oi law,
and provided such appeal is preferred within two months of the communication
of such oraer.

(4) Any appellate authority and the Registrar in case of review may pass

any stay order pending any appeai or review oefore such an authority, and may
award costs against any party appealing or petitioning for review if such appeal
or review petition is considered 1’aisc, vexatious or frivolous by the authority

concerned.

81. Power of attachment of property.—Where the Registrar or such gazetted

officer as may have powers delegated to him under section 83 is satisfied that any
person holding property wi h:n iris jurisdiction with intent to defeat or delay
the execution of any order, under a Co-operative demand certificate for recovery
of dues, or with intent to avoid payment of dues from such person under this Act,
rules or bye-laws—

(a) is about to dispose of the whole or any part of such properly; or
(b) is about io remove the whole or any part of such property from the

local limits of the jurisdiction of the Registrar or of such gazetted officer may,
unless adequate security is lurnished, as he may require, direct the conditional
attachment of the said property or such part thereof as he thinks necessary,
notwithstanding that the ckdmant or owner of the property may reside elsewhere,
and such attachment shall have the same force and effect as if it had been made
by a competent Civil Court and shall continue in force until withdrawn or
cancelled.

82. Registrar to be Civil Court for certain purposes.—The Registrar or any

person empowered by him in this behalf shali be deemed, when exercising any
powers under this Act for the recovery of any amount by attachment and sale
or by the sale without attachment of any property, or when passing any orders
on any application made to him for such recovery or to take any step-in-aid of
such recovery, to be a Civil Court for the purpose of Article 182 of the First
Schedule to the Indian Limitation Act, 1908 (IX of 1908).

83. **Recovery** of **sums** due.—(!) All dues recoverable under this Act or

Rules framed thereunder shall be reduced to the form of a Co-operative demand
certificate, as in Schedule A over the signature of the Registrar or of such gazetted
officers as may have powers delegated io (hem by the Registrar in this behalf
and shall be recovered as an arrear of land revenue and shall be paid to the

: certificate holder or his authorised nominee. Such, certificate shall be in the name

of the claimant and shall be delivered to him.

(2) Not more than one officer in each civil subdivision or other administra­

tive area shall be vested with the power to issue Co-operative demand certificates
under sub-clause (1). No officer shall entertain any application for a certificate
unless the claimant’s registered address falls within his area of jurisdiction.
The Registrar shall not entertain any application for a Co-operative demand

  - certificate from any claimant whose registered address falls within the jurisdic­

tion of any officer who has been invested with the power to issue such certificates.

**[Explanation.—‘The certificate officer’ means the officer so defined in, and**

the ‘prescribed form’ means the form so prescribed under the Bengal Public
Demands Recovery Act, 1913].

(3) For the purpose of this section a member of an affiliated society shall

be deemed to be a member of the affiliating society and Ioans due to the affiliated

  - society shall be deemed also to be loans due to the affiliating society to the

extent that loans from the affiliating society to the affiliated society are outstanding

’Substituted by the A.O., 1950 for “Provincial”


-----

and cannot be recovered from the affiliated society directly, provided that nos
more than one demand certificate may be executed against a single loan.

jl

84. **Registrar may order a meeting of creditors.—(1) Notwithstanding any-** th.

thing contained in this Act, where a compromise or arrangement is proposed[:]
between a registered society and its creditor or creditors or any class of them **1 ’**
the Registrar, upon an application made by a registered society or by liquidator-J
in case of a society in respect of which an order has been passed for tire winding jlfv

up thereof, or by a creditor or creditors or any class of creditors, may order a

meeting of the creditors. „

(2) If a majority in number of creditors or the class of creditors as the an

case may be, representing claims to three-fourths of the debts due by the society^
to the creditors or class of creditors, at a meeting agree to any compromise or
arrangement and if the Registrar agrees to such compromise or arrangement and;: in
gives his sanction then the compromise or the arrangement shall be binding on-; jp
all the creditors or class of creditors and also on the society or on the liquidator' tr,

in the case of a society in respect of which an order has been passed for the- ’
winding up thereof, and on <all persons who may be required by the liquidator?* "

to contribute to the assets of the society.

**CHAPTER** **XV**

                                                                             - j .or

**Miscellaneous**

1

in

**85.** **Society to be a body corporate.—Every registered society shall be deem-**

th

ed to be a body corporate by the name under which it is registered, with per-
petual succession and a common seal, and with power to hold property, to enter- 1

into contracts, to institute and defend suits and other legal proceedings and **[10] i «**
do all things necessary for the purposes for which it was constituted.

86. **Register of members.—Any register or list of members or shares kept**

by any registered society shall be _prima facie evidence of any of the following;_
particulars entered therein—

(a) the date on which the name of any person was entered in such register q

or list as a member; and cl

(b) the date on which any such member ceased to be a member. 1 th

87. **Entries in books of registered society shall be received as** _prima facie_ b(

**evidence.—(1) A copy of any entry in a book of a registered society, regularly;**
kept in the course of business shall, if certified by the Chairman or Secretary.;
of the society, be received in any suit or legal proceeding as _prima facie evidence ifr_
of the existence of such entry, and shall be admitted as evidence of the matters? Re

transactions and accounts therein recorded in every case where, and to the same fol

extent as the original entity itself is admissible.

(2) No officer or liquidator of a registered society and no officer in whose;

office the books of a registered society are deposited after liquidation shall in? st
any legal proceedings to which the society or the liquidator is not a party, be- .01

compelled to produce any of the society’s books the contents of which can ba fr
proved under sub-section (1) Or to appear as a witness to prove the matter^
transactions and accounts therein recorded, unless specially so directed by an- :C(
order of the Court or the arbitrator. h

88. ■Savings of existing societies.—(1) Every society existing at the com-

mencement of this Act which has been registered or deemed to have been-regis® Jr

tered under the Co-operative Societies Act, 1912 (II of 1912), shall be deemed it

to be registered under this A ct; and its bye-laws shall, in so far as they are not’ «

inconsistent with the provisions of this Act continue in foree until altered _ot._
## rescinded and shall to such extent be deemed to be registered under this Act.


-----

I (2) All appointments, rules and orders made, notifications and notices issued,

lall transactions entered into and al suits and other proceedings instituted under

the said Act shall continue and shall, so far as may be, be deemed to have been

[respectively made, issued, entered into or instituted under this Act.

89. **Construction of references to Act II of 1912.—All reference to the**

[Co-operative Societies Act, 1912, occurring in any enactment made by any

authority in India and for the time being in force in Assam shall, in the appli­
cation of any such enactment thereto, be construed as references to this A ct;
and anything done, or any proceeding commenced in pursuance of such enactment
on or after the commencement of this Act shall be deemed to have been done

[or to have commenced and to have had effect as if the reference in such enact­

ment to the Co-operative Societies Act, 1912, 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.

[ 90. **Act VII of 1913 not to apply.—The provisions of the Indian** **Companies**

Act, 1913 shall not apply to registered societies.

   - 91. **Acts of Societies, etc., not to be invalidated by certain defects.—(1) No**

1 act of a registered society or of a managing or controlling body or of any officer

or liquidator done in good faith in pursuance of the business of the society shall

8 be deemed to be invalid by reason only of some defect subsequently discovered

| in the organisation of the society or in the constitution of any such body or in

l-1 the appointment or election of the officer or liquidator or on the ground that

such officer or liquidator was disqualified from appointment.

:t

[ (2) No act done in good faith by any person appointed under this Act shall

pe invalid merely by reason of the fact that his appointment has been cancelled

# k
pt [9r] ii consequence of any order subsequently passed under this Act.

(3) The Registrar shall decide- whether any act was done in good faith in

’pursuance of the business of a society.

92. **Power to exempt** Societies **from provisions of the Act.—The [State][1]**

er Government may, by general or special order, exempt any registered society, or

class of registered societies from any of the provisions of this Act or may direct

that such provisions shall apply to such society with such modifications as may

76 be specified in the order.

 - y

93. **Rules and bye-laws not to be deemed to go beyond the Act.—Rules**

ry

Cfi framed under this Act and bye-laws registered under this Act shall not be deemed
**» ■** **-** **_.** **.** **- -** **—** **.** **.** **«**
**9** i'to go beyond the provisions of this Act if their effect is not to lessen the degree„

ne :of control expressly provided for in the Act.

**)S8** 94. **Power to exempt societies from conditions as to registration.—Notwith­**

 - L- -standing anything contained in this Act, the [State]- , - ~ [1] Government may by special

b6 order and subject to such conditions, if any, as it may impose, exempt any society

B from anj' of the requirements of this Act as to registration.
;rs. 95. **Power** to **order recoupment of expenditure.—Notwithstanding anything**

an contained in any law for the time being in force the [State][1] Government may,

by a general or special order, require of every registered society or a class of regis­

**>Df.** tered societies to make contribution of such sum annually to be fixed by the Regis-

trar towards the recoupment of administrative expenditure incurred by the Govcrn-

iedj inent in respect of inspection, supervision and guidance of a society or class of

noi societies or of any service to such society or class of societies.

0!

 - 'Substituted by the A.O., 1950 for “Provincial”.


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297

SCHEDULE A

_(See Section 83)_

CO-OPERATIVE DEMAND CERTIFICATE

**Granted under Section 83 of the Assam Co-operative Societies’ Act, 1950**
(To be realised as an arrear of land revenue by the Revenue authority

within whose jurisdiction the judgment debtor’s property is situated).

**Case No.** **of 19**

**District/Subdivision/Political Area.**

In the matter of......................................................................................................

_Versus_

'•....................................................... ....................... ••••••• ...... ........ ............................... • •

Whereas.......................has made a reference in writing to me complaining

that you...............................................................owe Rs........................... ................

my way of Principal and Rs................... by way of interest up to...............................

...................... of 19....... and have evaded payment of the same and whereas a

notice of demand calling on you to pay the dues within the specified time

was served with notice to show cause and whereas you have not paid up

your dues specified in the notice and whereas you have not submitted any

explanation

your explanation is unsatisfactory.

Now therefore, I. under authority of Section 83 of the Assam Co-operative
Societies Act, 1949 (Assam Act.... ..... of 1949) do hereby order that the above
mentioned sum of Rs...................... is due to the above named...............................
........ ....for the above named....... ...........................who shall pay further interest
on the principal sum at the rate of per cent per annum from............... together
with all costs till the date of realisation.

I further order that right, title and interest of...................................................

in the properties set out and described in the Schedule below be sold as an arrear
of land revenue under the provisions of the Assam Land and Revenue

Regulation, and that, if the sale proceeds should be found insufficient to dis­

charge the dues with subsequent interest at the above rate till the date of realisa­
tion and costs in full, the balance be realised by attachment and sale of other
movable and immovable property of the judgment debtor as an arrear of land
revenue.

SCHEDULE B

_(See Section 101)_

Vear No. Short title / Extent of repeal

1 2 3 4

1912 II The Co-operative The whole, with the exception of sub­

Societies Act, 1912. section _(a) of section 28, and of sub­_

section (i) of section 28, so far as it
relates to the stamp duties specified
in the second paragraph thereof.


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