*15-A. Restrictions on individuals in becoming members of certain co-operative societies.- (1)- No individual shall be admitted as member of a central or apex society unless such a society has been exempted by the register in this behalf, by a general or special order.
(2) The Central and apex societies having individuals as members on the date of commencement of the Punjab Co-operative Societies (Amendment) Act.1969.shall retire the shares of such individuals within a period of three years of such commencement in the prescribed manner.
EXPLANATION - For the purpose of this section, Section 26, Section 26B and Section 84-A.
(a) primary society means a co-operative society whose membership consists exclusively of individuals;
(b) central society means a co-operative society whose membership includes primary societies;
(c) apex society means a co-operative society whose membership includes central societies.}
*15 B. Provision for admission as members in the case of certain societies
(1) - Notwithstanding anything to the contrary contained in this Act-
(i) every person eligible for admission as a member of a co-operative society shall be deemed to have been admitted as a member of the society from the date of-receipt of his application for such admission in the office of that society;
(ii) The Registrar may ,of his own motion or on a complaint made by the committee of the society or any aggrieved person , by an order determine that such a person is not eligible to be a member of the society and on such determination that person will cease to be member:
Provided that no such order shall be made unless the person already admitted as a member is given an opportunity of being heard and where an order is to be made on the basis of a complaint it shall be made within a period of thirty days of the receipt thereof.
(2) The provisions of this Section shall apply only to a primary land Mortgage Bank and to a co-operative society having one of its objects advancing of loans for the purpose of raising of crops or seasonal agricultural operations.
13. Nominal or associate members.- (1) Notwithstanding anything contained in clause (d) of Section 15, a co-operative society may ,admit any person as nominal or associate member in accordance with its bye-laws.
(2) a nominal or associate member shall not be entitled to any share in any form whatsoever, in the assets or profit of the co-operative society
(3) save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be subject to such liabilities of a member, as may be specified in the bye-laws of the society
SECTION - 17
17. Member not to exercise rights till due payment made.- no member of a co-operative society shall exercise the rights of a member unless he has made such payments to the society in respect of membership or has acquired such interest in the society as may be specified in the bye-laws
SECTION 18
18. Votes of members:- every member of a co-operative society shall have one vote in the affairs of the society :
Provided that ;
(a) in the case of an equality of votes, the chairman shall have a second or casting vote ;
(b) a nominal or associate member shall not have the right of vote ;
(c) where the government is a member of the co-operative society, each person nominated by the government on the committee shall have one vote .
19. Manner of exercisng vote.- (1) every member of a co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy.
(2) Notwithstanding anything contained in sub-section (1), a co-operative society which is a member of another co-operative society, may subject to the rules, appoint on of its member to vote on its behalf in the affairs of that other society
SECTION 20
20. Restriction on transfer of shares or interest the transfer of the share or interest of a member in the capital of a co-operative society shall be subject to such conditions to maximum holding as are specified in section 6 .
SECTION 21
21. Transfer of interest on death of member :- (1) on the death of a member a co-operative society may transfer the share or interest of the deceased member to the person nominated in accordance with the rules, made in this behalf, or if there is no person so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be a sum representing the value of such members share or interest as ascertained in accordance with the rules or bye-laws:
Provided that
(i) In the case of a co-operative society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member as curtained as aforesaid ;
(ii) in the case of a co-operative society with limited liability, the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the society or on his application within one month of the deceased member to any person specified in the application who is so qualified;
(iii) no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.
(2) A co-operative society shall, subject to the provisions of section 31 and unless within six months of the death of member prevented by an order of competent court, pay to such nominee, heir or legal representative, as the case may be, all the moneys due to the deceased member from the society.
(3) All transfer and payment made by a co-operative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.
SECTION 22
22. Liability of past member and estate of deceased member (1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a co-operative society for the debts of the society as they existed ;-
(a) In the case of a past member, on the date on which he ceased to be a member ;
(b) In the case of deceased member, on the date of his death; shall continue for a period of two years from such date.
(2)Where a co-operative society is ordered to be wound up under section 57, the liability of a past member or of the estate of a deceased member who ceased to be member or died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceeding are completed, but such liability shall extend only to the debts of the society as they existed on the date of his ceasing to be a member or death, as the case may be.
SECTION 23
23. Final authority in a co-operative society.- (1) The final authority in a co-operative society shall vest in the general body of members:
[-]
[(1-A) Notwithstanding anything in sub-section (1), where a co-operative society consists of not less than such number of members as may be prescribed the society may provide in its bye-laws for the constitution of a smaller general body designated as the representative general body, to be elected in the prescribed manner for a term of three years, consisting of such numbers of members of the society and to exercise all or such of the powers of the general body as may be specified in the bye-laws; and thereupon any reference in this act to the general body or meeting thereof shall be construed as a reference to the representative general body or its meeting.
Provided that the representative general body shall not alter any provision in the bye-laws relating to its constitution or powers.
(2) Notwithstanding anything contained in sub-section (2) of section 19 each delegate shall have vote in the affairs of the society.
SECTION 24
24. Annual general meeting.-A general meeting of a co-operative society shall be held in a year for the purpose of-
(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year;
(b) election, if any, of the members of the committee other than nominated members;
(c) consideration of the audit report and the annual report;
(d) disposal of the net profits ; and
(e) consideration of any other matter which may be brought forward in accordance with the bye-laws.
*Provided that where the committee of any co-operative society has divided the area of operation of the society into zones in the manner laid down in sub-section (1-a) of section 26, election of the members of the committee may not be held in general meeting.
SECTION-25
25. Special general meetings. - (1) The committee of a co-operative society may, at any time call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be provided in the bye-laws.
(2) If a special general meeting of a co-operative society is not called in accordance with the requisition referred in sub-section (1), the Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the committee.
SECTION-26
ELECTION & NOMINATION OF MEMBERS OF COMMITTEE :-
The members of the Committee of a cooperative society shall be elected in the manner prescribed & no person shall be so elected unless he is a share holder of the society.
1[(1-A) The committee of any co-operative society may subject to the approval of the Registrar, divide the area of operation of the society into zones for the purpose of election of members of the committee].
2[(1-B) The term of office of a committee elected after the commencement of the Punjab Co-operative Societies(Amendment ) Act, 1993, shall be five years from the date of its election:
Provided that the term of office of the existing committees shall remain three years:
Provided further that where in terms of the provisions of the bye-laws of a society one-third members of its committee retire every year, the term of office of such a committee shall, after the commencement of the Punjab Co-operative (Amendment) Act, 1993, expire on the date on which retirement of any of its one-third members falls for the first time.
Provided that a milk producers co-operative society or a society dealing in notified commodity may provide in its bye-laws that as nearly as possible one-third members of its committee shall retire every year in the manner laid down in its bye-laws and in the event of such a provision being made the vacancies caused as a result of retirement shall be filled in the prescribed manner .
Explanation :- In the case of a milk producers co-operative society or a society dealing in notified commodity registered before the commencement of the Punjab C0-operative Societies ( Amendment) Act, 1978, the first retirement of the aforesaid number of members of the committees shall take place immediately on the expiry of a period of a one year of the date on which the amendment in the bye-laws of such society providing for such retirement comes into force.
1[(1-C) Each committee shall, ninety days before the expiry of its term, make arrangement for the constitution of a new committee in accordance with the provisions of this Act and bye-laws made thereunder.
2[(1-D) Where any committee has ceased to hold office and no committee has been constituted in accordance with the provisions of this Act and rules and bye-laws made thereunder, the Registrar may, by an order in writing appoint a Government employee as an Administrator for such period as may from time to time, be specified in order and the Administrator shall, before the expiry of the period of his appointment, arrange for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws made thereunder ] .
Provided that the total period for which an Administrator may be appointed, shall not in any case exceed six months in the case of primary society , and one year in the case of a central society and apex society .
1(1-E) The provisions of sub-section (3) and sub-section (4) of section 27 shall apply to the administrator appointed under sub-section (1-D) as if the administrator had been appointed under that section .
2(1-F) Notwithstanding anything contained in this section, where the bye-laws of a society so provide, the first committee may be nominated by the Registrar for a period of six month extendable up to one year in this case of a primary society, and for a period of one year extendable up to three years in the case of a central society or an apex society:
Provided that the Registrar, may make such changes in the membership of a nominated committee at the time of each extension , as he may consider appropriated, subject , however , to the condition that no mid-term change shall be made during any of the extended periods .
(2) Notwithstanding anything contained in sub-section (1),-
3(a) where the Government has subscribed to the share capital of co-operative society or has guaranteed the repayment of the principal of and payment of interest on debentures issued for loans raised by a co-operative society, the Government or any person authorised by it in this behalf shall have the right to nominate on the committee such number of person not exceeding is less, as the government may determine:
Provided that where the government has subscribed to the share capital of a co-operative society to the extent of twenty lacs of rupees or more the Government may , notwithstanding anything contained in the bye-laws of the society.
(a) appoint one of the members nominated in the aforesaid manner as Chairman of the committee of such society ; or
(b) nominate another member in addition to those nominated in the aforesaid manner and appoint him as Managing Director:
Provided further no person shall be appointed to act as Managing Director unless he is a member of Indian Administrative Service, Punjab Civil Service (Executive Branch)or a Deputy Registrar, a Joint Registrar or an Additional Registrar Co-operative Societies.
(b)Where the Industrial Finance Corporation, the State finance corporation or any other finance institution notified in this behalf by the Government has provided finance to a co-operative society, the Industrial Finance Corporation, State Finance Corporation or other financing institution as the case may be shall have the right to nominate one person on the committee.
*[(2A) Where the Government appoints a chairman or Managing Director under the proviso to clause (a) of sub-section (2), the Chairman or Managing Director , if any, as the case may be holding office immediately before such appointment shall cease to hold office on such appointment.
(2B) The terms and conditions of service of the Managing Director or Chairman, as the case may be appointed by the Government shall be such as may be determined by the government. And the remuneration payable to the managing director or chairman as the case may be, shall be paid out of the funds of the coopeative society ].
(3)A person nominated under sub-section (2) shall hold office during the pleasure of the Government or the corporation or other financing institution, as the case may be .
(4)Where, in a co-operative society in which shares have been subscribed for liability by borrowing exceeding fifty percent of the working capital of the society has been undertaken by the Government, a difference of opinion in respect of any matter arises between the nominated members of the committee and other members there of , the matter shall be referred by the committee to the government whose decision thereon shall be final and will operate as if the same were a decision taken by the committee .
SECTION-26-A
26-A-Co-option of members (1) Notwithstanding anything in section 26 the registrar may, by an order in writing, direct the committee of any co-operative society or any class of co-operative societies to co-opt, in the prescribed manner for serving on the committee such number of members not exceeding two as may de specified in the directions.
(2) Where a direction is issued under sub-section (1), co-option shall be made form amongst members of the co-operative society belonging to scheduled castes, scheduled tribes or backward classes or from amongst members who as landowner or tenant or as both do not hold more than the prescribed area of agricultural land and fulfil the prescribed conditions.
(3) Members co-opted under sub-section (2) for serving on the committee of a co-operative society shall have the same right and privileges and shall be subject to the same liabilities as elected members of the committee of that society.
SECTION 26-B
26-B Restrictions on membership etc.-(1) No individual shall, at any time be a member of committee of-
(a) more than two primary societies ; and
(b) more than one central and one apex society
Provided that nothing in this sub-section shall apply to a member nominated under sub-section (2) of Section 26 or a member of the committee of an apex or central society nominated to serve on the committee of another or central society as the case may be, in accordance with the provisions of their bye-laws.
2(2) No person shall be eligible for being elected to the committee of any co-operative society after he has served on the committee of that co-operative society
for two continuous terms; unless a period of not less one term has expired since he last he last so served.
Explanation. For the purpose of computing the period of two terms under sub-section (2), if a person ceased to serve on the committee on account of resignation tendered by him, he shall be deemed to have so served for the full term in which resignation was tendered.
SECTION 27
327- Removal or suspension of committee or member there of . -(1) If, in the opinion of the Registrar, a committee or any member of a committee persistently makes default or is negligent in the performance of the duties imposed on it or him by Act or the rules or bye-laws, made thereunder or commits any act which is prejudicial to the interests of the society or its members, or makes default in the implementation of production or development programmes undertaken by the co-operative society, the Registrar may, after giving the committee or the member, as the case may be, a reasonable opportunity to state its or his objections, if any, by order in writing
(a) remove committee, and appoint a Government servant as an administrator to manage the affairs of the society for a period not exceeding one year as may be specified in the order;
(b) remove the member and get the vacancy filled up for the remaining period of the outgoing member, according to the provisions of this Act and rules and bye-laws made thereunder.
(2) Where the Registrar, while proceeding to take action under sub-section (1) is of opinion that suspension of the committee or member during the period of proceedings is necessary in the interest of the co-operative society, he may suspend the committee or member, as the case may be, and where the committee is suspended, make such arrangements as he thinks proper for management of the affairs of the society till the proceedings are completed.
Provided that if the committee or member so suspended is not removed, it or he shall be reinstated and the period of suspension shall count towards its or his term.
(3) The administrator so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have powers two perform all or any of the functions of the committee or of any Officer of the society and take all such actions as may be required in the interest of the society.
(4) The Registrar may fix the remuneration
payable to the person appointed as administrator and the amount of such
remuneration and other costs, if any incurred in the management of the society
shall be payable from its funds.
(5)The administrator shall, before the expiry of his term of office arrange for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws framed thereunder.
(6)Before taking any action under sub-section (1) in respect of a co-operative society, the Registrar shall consult the financing bank to which the society is indebted.
(7)A member who is removed under sub-section (1) may be disqualified for being elected to any committee for such period not exceeding three years as the Registrar may fix.
28. Securing possession of records.-(1)(a) If the records, registers or the books of accounts of a co-operative society are likely to be tampered with or destroyed and the fund and property of a society are likely to be misappropriated or misapplied; or
(b) If the committee of a co-operative society is reconstituted at a general meeting of the society or, the committee of a society is removed by the Registrar under S. 27 or if the society is ordered to be would up under S.57 and the outgoing members, of the committee refuse to hand over charge of the records and property of the society to those having or entitled to receive such charge; the Registrar may apply to the magistrate, within whose jurisdiction the society functions, for securing the records and property of the society.
(2) On receipt of an application under sub-section (1) , the magistrate may, by a warrant, authorise any police officer not below the rank of sub-inspector, to enter and search any place where the records and the property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new committee or administrator of the society or the liquidator as the case may be.
29. Acts of co-operative societies not be invalidated by certain defects. No act of a co-operative society or of any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect in procedure or in the constitution of the society or the committee or in the appointment or election of an officer or on the ground that such officer was disqualified for his appointment.
Privileges of co-operative societies
30.-co-operative societies to be bodies corporate.- The registration of a co-operative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to hold property, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.
31. First charge of co-operative society on certain assets:- Notwithstanding anything contained in any law for the time being in force, but subject to ant prior claim of the government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a co-operative society by any member or past member or deceased member shall be a first charge upon the crops and other agricultural produce, cattle, fodder for cattle, agricultural or industrial implements or machinery, raw materials for manufacture and finished products manufactured from such raw materials, belonging to such member, past member or forming part of the estate of the deceased member as the case may be.
(2) No person shall transfer any property which is subject to a charge under sub-section (1) except with the previous permission, in writing to the co-operative society which holds the charge.
(3) Notwithstanding anything contained in any law for the time being in force, any transfer, of property made in contravention of the provisions of sub-section (2) shall be void.
(4) Th charge created under sub-section (1) shall be available as against any claim of the Government arising from a loan granted under the Land improvement Loans Act, 1883 (19 of 1883), or the Agriculturists Loans Act, 1884 (12 of 1884), after the grant of the loan by the society.
32. Charge on immovable property of members borrowing loans from certain societies. - Notwithstanding anything contained in this Act or in any other law for the time being in force.
(i) any person who makes an application to a society of which he is a member for a loan shall, if he owns any land or has interest in any land as a tenant, make a declaration in the prescribed form, which shall state that the applicant thereby creates a charge on such land or interest specified in the declaration for the payment of the amount of the loan which the society may make to the member in pursuance of the application and for all future advances, if any, required by him which the society may make to him as such member subject to such maximum as may be determined by the society together with interest on such amount of the loan and advances;
(ii) any person who has borrowed a loan from a society of which he is a member before the date of the coming into force of this Act, and who owns land or has any interest in land as a tenant shall as soon as possible, make a declaration in the form and to the effect referred to in clause (I);
(iii) a declaration made under clause (I) or clause (ii) may be varied at any time by a member with the consent of the society in favour of which such charge in created ;
(iv) no member shall alienate the whole or any part of the land or interest therein specified in the declaration made under clause (i) or clause (ii) until the whole no amount borrowed by the member together with interest thereon is paid in full :
Provided that for the purpose of paying in full to the society the whole amount borrowed by the member together with interest thereon, the member, may with the previous permission in writing of the society and subject to such conditions as the society may imposes, alienate the whole or part of such land or interest therein :
Provided further that standing crops on any such land may be alienated with the permission of the society;
(v)Any alternation made in contravention of the provisions of clause (iv) shall be void.
(vi)Subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue, there shall be a first charge in favour of the society on the land or interest specified in the declaration made under clause (I) or clause (ii) for and to the extent of the dues owing by him on account of the loan and advances ;
(vii)the record of rights shall also include the particulars of every charge on land or interest created under a declaration under clause (i) or clause (ii) notwithstanding anything contained in section 31 of the Punjab Land Revenue Act, 1887.
Explanation:- For the purpose of this Section, society shall mean any co-operative society or class of co-operative societies specified in this behalf by the Government by a general or special order.
33. Charge and set off in respect of share of contribution or interest of members.- A co-operative society shall have a charge upon the share or contribution or interest in the capital and on the deposits of a member or deceased member and upon any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member or the estate of such deceased member to the society, and may set of any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt.
34. Share or contribution on interest not liable to attachment:- Subject to the provisions of the section 33, the share or contribution or interest of a member or past member or deceased member in the capital of a cooperative society shall not be liable to attachment or sales under any decree or order of any court in respect of any debt or liability incurred by such member, and a receiver under the provincial Insolvency Act, 1920 (v of 1920), shall not be entitled to or have claim on such share or contribution or interest.
35. Register of members:-Any register or list of members or share kept by any co-operative society shall not be prima facie evidence of any of the following particulars entered therein-
(a) the date on which any person entered in such register or list became a member:
(b) the date on which any such person ceased to be member:
36. Admissibility of copy of entry as evidence:- (1) A copy of any entry in a book of co-operative society regularly kept in the course of its business, shall, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is admissible.
(2) no officer of a co-operative society and no officer in whose office the books of a co-operative society are deposited after liquidation shall in any legal proceedings to which the society or the liquidation is not a party, be compelled to proceedings any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transaction and accounts therein recorded, except under order of the court or the arbitrator made for special cause.
37. Exemption from compulsory registration of Instruments - Nothing in clauses (b) and (c) of sub-sections (1) of section 17 of the Indian Registration Act,1908(XVI of 1908), shall apply to-
(1) any Instrument relating to shares in a co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(2) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right title or interest to or in immovable property, except in so fares it entitles the holder there of the security afforded by a registered, Instruments 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 holders of such debentures; or
(3) an endorsement upon or transfer of any debenture issued by any such society.