The Assam Co-operative Societies (Amendment) Act, 1974
##### Kegiste ed No.—A-12

## The Assam Gazette

 BRITO

### EXTRAORDINARY

#### K“<ni a^ifrs

##### PUBLISHED BY AUTHORITY

sr 148 **17** **1974, 25 ’ttfen, 1896 "R**

**No. 148 Dispur, Thursday, October 17, 1974, 25th Asvina 189S(S. E.)**

GOVERNMENT OF ASSAM

**ORDERS BY THE GOVERNOR**

LAW DEPARTMENT

NOTIFICATION

. The 5th October 1974

No.LJL.420/73/130.—The following Act of the Assam Legis­

lative Assembly which received the assent of the Governor is

hereby published for general information.


-----

**942 THE ASSAM GAZETTE, EXTRAORDINARY, OCT. 17, 1974.**
_________________________________________________________ '

ASSAM ACT XX OF 1974

**(Received the assent of the Governor on the 11th July 1974) ’**

THE ASSAM CO-OPERATIVE SOCIETIES (AMENDMENT)

ACT, 1974

**An**

**Act**

further to amend the Assam Co-operative Societies

Act, 1949.

**Preamble** Whereas it is expedient futher to amend the Assam

Co-operative Societies Act, 1949, hereinafter called the
principal Act, in the manner hereinafter appearing ;

It is hereby enacted in the Twenty-Fifth Year of the

Republic of India, as follows:—

**Short title,** i. (i) This Act may be called the Assam Co-operative

**commence- extent and** Societies (Amendment) Act, 1974.v **’**

(2) It shall have the like extent as the principal

Act.

(3) It shall come into force at once.

Amendment 2. In Section 5 of the principal Act, for the words

4 [ect 0I][\][ 5][ "unless he is above” ] occurring between the words

I of 1950. " [r e] 2i[s t e r e] d society” and "eighteen years of age”, the

words "if he is less than” shall be substituted.

**Amendment** 3. In Section 15 of the principal Act, after sub-
of Assani Act[s e c] tion (2) the following shall be inserted as sub-section

of 1950. (3) namely :—

"(3) (i) Notwithstanding anything contained in

sub-section (1) and (2), the Registrar may,

of his own motion and at any time for

reasons of ensuring economic viability of

any registered society or avoiding overlapp­
ing or conflict of jurisdictions of registered

societies in any area, direct any registered

society shall divide itself into two or more
societies or amalgamate or merge fully or

partially with any one or more specified socie­
ty or societies within a specified date and

according to any specified bye-laws and may
also direct the manner in which the assets and
liabilities of the society so directed to divide,
amalgamate or mergen shall be disposed of.


-----

(ii) In the case of amalgamation or merger £

copy of the direction of the Registrar will
also be served on the society or societies
with which the amalgamation or merger
is intended to take effect.

(iii) The Society or societies directed under

Clause (i) to divide, amalgamate or merge
and the society or societies with which the
amalgamation or merger is intended to

take effect, may submit objection to such
order, if any, to the Registrar within 15

days of the order. The Registrar, after

considering the objection of the society or
societies, may withdraw, modify or con­

firm with such modification, as deemed

necessary, the direction given by him

under clause (i) of this sub-section.

(iv) On and from the date specified in the

order of the Registrar confirming his

direction to a society to divide, amalga­

mate or merge, the division, amalgamation

or merger will take effect and the assets
and liabilities of the society on which the
direction was passed shall stand divided,
amalgamated or merged with the assets

and liabilities of the societies born out

of , such division or amalgamation or

merger and the members, creditors and

debtors of such society, shall be deemed to
be members, creditors and debtors-,- as the
case may be, of the new society as ordered
by the Registrar.

(v) Notwithstanding any bye-law to the con­

trary, any member of any such society

and, notwithstanding any agreement to the
contrary, any creditor of such society

which was divided, amalgamated or mer­
ged may, within a period of sixty days from
the date of division, amalgamation or

merger intimate his intention not to con­
tinue as a member of the new society, in

case of a member and demand a return of
the amount due to him, in case of a

creditor. The Society inheriting the assets

and liabilities of the erstwhile society in

this regard shall return the share money
or dues of such persons provided that all
dues from such persons to the society, if
any, as inherited or otherwise, are relised:


-----

944 THE ASSAM GAZETTE, EXTRAORDINARY, OCT. 17, 1974

Provided that the Registrar may direct that

any such specified society or class of the societies
inheriting assets and liabilities of erstwhile society
or societies due to division, amalgamation or mer­
ger shall pay or return to the creditors or mem­
bers of the erstwhile society or societies towards

return of their dues or share money as demanded
by them, only such sums, to the extent of and pro­
portionate to the recovery or realisation of any

money against the assets and dues realisable from
the debtors of such erstwhile societies and for this
purpose the successor society shall follow the same
principles and procedures as if the erstwhile

society has gone into liquidation or being wound
up.

(vi) Notwithstanding the procedure for regis­

tration of societies as enumerated under

sub-sections (I) (vi) and (2) (v), the Regis­
trar shall register the new societies created
after division of an existing society under
Section 11 on the date from which the

order issued under clauses (i) and (ii) of
these sub-sections come into effect. From

the date on which the new societies are
registered the registration of the old socie­
ties shall be deemed to have been can­

celled.

(vii) In case of the society directed to amalga­

mate or merge with another society, its

registration shall be deemed to have been
cancelled from the date on which the order
issued under clauses (I) and (III) of this
sub-section takes effect.

(viii) The division, amalgamation or merger of

society shall not affect any rights or obli­
gations of the society divided, amalgamated
or merged or render defective any legal
proceedings which might have been conti­
nued or commenced by or against the

society which has been divided, amalga­

mated or merged and accordingly such

legal proceedings may be continued or

commenced by or against the society or
societies to whom its assets and liabilities
are transferred.

(ix) In the case of any society carrying on-

banking business, to which the Banking
Regulation Act, 1949 (as applicable to Co­
operative Societies) (Central Act No. 10 of


-----

1949), is applicable, no order, under sub­

section (i) shall be passed by the Registrar,
w ithout the previous approval of the

Reserve Bank of India.

Amendment 4. A fter sub-section (3) of Section 17 of the principal

of Assam* A _c_ _t_ t b e f° ^ o w in g shall be inserted as sub-section (4),

I of 1950.[C] nam ely

(4) Notwithstanding anything contained in this

Act, a registered society may, by specific pro­
visions made in its bye-laws admit certain

class of m em bers w ithout any voting right.

Amendment 5. (a) In Section 32 of the principal Act, as proviso to

o°ff l es[±] UA3c t s u b - s e c i i o n (1)’ shall be added :—

I of 1950. "Provided th at notw ithstanding anything to the con­

trary contained in this Act or Rules made thereunder or
bye-laws of any society, the Registrar may direct that

the first annual general m eeting of any registered society
shall be held on a date to be fixed by him (which shall
be a date w ithin one hundred and eighty days of the

registration of the society) to elect the office bearers of

the society, according to the procedure and m anner pres­
cribed in the bye-laws of the society and the office bearers
so elected shall assume office on the conclusion of the

general m eeting in which they are elected in replacem ent
of the m anaging committee elected at the tim e of the

inaugural general m eeting of the society”.

(b) In Section 32 of the principal Act, sub-section

(2) shall be substituted by the following

nam ely :—

(2) Such a m eeting shall be held w ithin 60 days

from the date of expiry of the preceding Co­
operative y e a r:

Provided th at if for any reason the meeting

cannot be held w ithin the date fixed

by the Registrar, any society m ay by applica­
tion made w ithin the aforesaid period of 60

days and addressed to the Registrar, pray for
extension of tim e for holding the m eeting sta­

ting the grounds for which, in the opinion of
the society, the m eeting cannot be held. The
grounds for which the M anaging Body should
not stand dissolved under sub-section (4) below
should also be stated in the application, if any,
m ade for extension. The period for which the

extension is sought for shall also be specifically
stated in the application.

(3) W hen an application for extension is made

under the preceding sub-section, the Registrar
may, if he is of opinion th at extension should
be granted and that there are good grounds for
which the Managing Body should not stand


-----

946 THE ASSAM GAZETTE, EXTRAORDINARY, OCT. 17, 1974.

dissolved under sub-section (4) below, by order
grant extension for any period not exceeding
30 days from the date of passing the order. If
the Registrar is of opinion that no extension
should be granted he shall by an order passed to

that effect reject the same. In both the cases, the
order passed shall be communicated under
registered post to the society applying for ex­
tension.

(4) If any society fails to hold the meeting within

the period of 60 days mentioned in sub-section

(2), or when an application is made for exten­

sion under the proviso to sub-section (2) within
the period so extended, or when no extension
is granted, before the expiry of 20 days from
the date on which the order rejecting the
application for extension is communicated, the
Administrative Council and/or the Managing

Body of the society shall stand dissolved from

the date of expiry of the aforesaid period.

(5) When the Administrative Council and/or

Managing Body are dissolved under sub-section

(4) , the Registrar may appoint an officer or

officers or any ad hoc body to manage the
affairs of the society and to perform the func­

tions of the Administrative Council and Mana­
ging Body till the new Body is elected or

formed.

(6) The officer or officers or the ad hoc body

appointed by the Registrar under sub-section
(5) shall arrange to hold the annual meeting of

the general assembly which shall be held with­

in ninety days of such appointment;

Provided that the State Government may

allow in its discretion such further time, as

may be considered necessary but not exceed­
ing one year for holding of such meeting”.

Amendment 6. In Section 52 of the principal Act, the words

of Section 52 "formed from its profit” occurring between the words
Act Io f 195O1." [R e s e r v e F u n d] ” [a n d] " [a n d] carry” shall be deleted.

Md. SAADULLAH,

Joint Secy, to the Govt, of Assam,

Law Department.

GAUHATI—Printed and published by the Joint Supdt., Assam Gov’

Press (Ex-Gazette) No.293 — 1,460+140—17-10-74.


-----

