SECTION – 67 – A
67-A. Recovery of certain loans as arrears of land revenue – (1) Notwithstanding anything contained in Section 55 or section 63, a co-operative society may apply to the Registrar for the recovery of arrears of any loan advanced by it to may member, together with interest accrued thereon and when such an application is made, it shall be accompanied by an up to-date statement of accounts in respect of such loan interest thereon .
(2) The Registrar may, on receipt of an application under sub-section (1) or suo moto after making such esquires as he deems fit and after affording the members concerned an opportunity of being heard, grant a certificate in the prescribed form for the recovery of the amount due from such member on account of loan and interest thereon.
(3) Subject to the order, if any, that may be passed in appeal under Section 68, the certificate granted by the registrar under sub-section (2) shall be final and conclusive and the amount specified therein as due from the member on account of loan and interest thereon shall be recovered in the same manner as arrears of land revenue.
Appeal and Revision
68. Appeals – (1) An appeal shall lie under this section against-
(a) an order of the registrar made under sub-section (2) of section 8 refusing to register a society;
(b) an order of the Registrar made under sub-section (4) of Section 10 refusing to register an amendment of the bye-laws of a co-operative society;
1[bb] an order of the Registrar made under Section 10 – A directing amendment of bye-laws of a co-operative of a co-operative society;
(c) a decision of a co-operative society, other than a producers Society refusing to admit any person as a member of the society who is otherwise duly qualified for membership under the bye-laws of the society;
(d) a decision of a co-op. Society expelling any of its members;
2[(e) an order made by the Registrar removing or suspending a committee or a member thereof under section 27;];
(f) an order made by the Registrar under section 52 apportioning the costs of an inquiry held under section 50 or an inspection made under section 51;
(a) any order of surcharge under section 54;
(b) any decision or award made under section 56;
(c) an order made by the Registrar under section 57 directing in the winding up of a co-operative society;
(d) any order made by the liquidator of a co-operative society in exercise of the powers conferred on him by section 59;
(e) any order made under section 65;
1(1) grant of a certificate under sub-section 67-A for the recovery of the amount due from a member on account of loan and interest thereon.]
2(2) An appeal against any decision or order under sub-section (1) shall be made within sixty days from the date of decision or order:-
(a) if the decision or order was made by the assistant Registrar to the Deputy registrar;
(b) if the decision or order was made by the deputy registrar to the registrar or such Additional Registrar or joint Registrar as may be authorised by the Registrar in this behalf;
(c) if the decision or order was made by the joint registrar or Additional registrar, to the registrar;
(d) if the decision or order was made by the Registrar, to the Government;
(e) if the decision or order was made by any other person, to the Registrar or such Additional Registrar or joint Registrar or Deputy Registrar or Assistant registrar as may be authorised by the Registrar in this behalf.
(3) No appeal shall lie under this section for any decision or order made by any authority in appeal.
(4) Any appeal under sub-section (1) pending immediately before the commencement of the Punjab co-operative societies (Amendment) Act, 1969, before any authority shall stand transferred to the authority to whom such appeal lies on such commencement.
369. Revision:- The State Government and the Registrar may, suo moto or on the application of a party to a reference, call for and examine the record of any proceedings in which no appeal under section 68 lies to the Government or the Registrar, as the case may be, for the purpose of satisfying itself or himself as to the legality or property of any decision or order passed and if in any case it appears to the Government or the Registrar that any such decision or order should be modified, annulled or revised, the Government or the Registrar, as the case may be, may, after persons affected thereby an opportunity of being heard, pass such order thereon as it or he may deem fit.
70. Interlocutory order :- Where an appeal is made under Section 68,or where the Government or the Registrar calls for the record of a case under Section 69, the appellate authority or the Government or Registrar as the case may be may, in order to prevent the ends of justice being defeated make such interlocutory orders, including an order of stay, pending the decision of the appeal or revision as such authority or the Government or the Registrar may deem fit.
CO-OPERATIVE BANKS
70-A Orders for winding up, reconstruction, suppression of committee etc. of *** Insured Co-operative Bank:- Notwithstanding anything contained in this Act, in the case of an 2insured co-operative bank:-
(1) an for winding up or an order sanctioning a scheme of compromise or arrangement or of amalgamation or *** reconstruction including division or reorganization of the bank may be made only with the previous sanction in writing to the Reserve Bank of India;
(2) an order for the winding up of the bank shall be made by the Registrar if so required by the Reserve bank of India in the circumstance referred to in section 13-D of the Deposit insurance and credit Guarantee corporation Act, 1961(Central Act 47 of 1961).
(3) If so required by the Reserve bank of India in the public interest or for preventing the affairs by the bank being conducted in the manner detrimental to the interest of the depositors or for securing the proper management of the bank, an order shall be made by the Registrar for the suppression of the committee of the bank and the appointment of administrator therefore for such period or periods not exceeding five years in the aggregate, as may from time to time be specified by the Reserve bank of India and the administrator so appointed shall after the expiry of his term of office continue in office uphill the day immediately proceeding the data of the first meeting of the committee of such bank;
(4) An order for winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or * reconstruction including division or reorganization or an order for the suppression of the committee of the bank and the appointment of san administrator therefore made with the previous sanction in writing or on the requisition of the Reserve bank of India shall be final and shall be final and shall not be liable to be called in question in any manner in any Court; and.
(5) The liquidator of the insured co operative bank or the transferee bank, as the case may be, shall be under an obligation to repay to the Deposit insurance and Credit Guarantee Corporation established under the Deposit insurance and Credit Guarantee Corporation Act, 1961( Central Act 47of 1961) in the circumstances to the extent and in the manner referred to in Section 1of the Act.
Explanation in this session:-
(a) the expression “ co operative bank” shall have the meanings assigned to it in the Deposit insurance and Credit Guarantee Corporation Act 1961 ( Central Act 47of 1961);
(b) the expression “insured co operative bank” means a co operative * *society which is an insured bank under the provisions of the Deposit insurance and
Credit Guarantee Corporation Act, 1961( Central Act 47of 1961):
(bb) the expression ‘Reserve Bank of India’ means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934( Central Act 2of 1934);
(c) the expression “ transferee bank “ in relation to an insured co operative bank means a co operative bank-
(i) with which such insured co operative bank is amalgamated , or
(ii) to which the assets and liabilities of such insured co operative bank are transferred, or
(iii) into which such insured co operative bank is divided under sub section (1) of section 13.
OFFENCES AND PENALTIES
71. OFFENCES-(1) Any person other than a co operative society carrying on business under any name or title of which the word “co-operative” or its equivalent in any Indian language, is part, without the section of the Government shall be punishable with fine which may extend to two hundred rupees and in the cases of continuing breach with a further fine which may extend to five rupees for every day during which the breach is continued after conviction for the first such breach.
(2) any member or past member or the nominee, heir or legal representative of a deceased member of a co- operative society who contravenes the provisions of Section 31and 32 by disposing of any property in respect of which the society is entitled to have a first charge under that section or do any other act to the prejudice of such claim, shall be punishable with fine which may extend to five hundred rupees.
(3) A co- operative society or an officer or members thereof willfully making a false return or furnishing false information, or any person willfully or without. Any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this act or willfully not furnishing any information required from him by person authorised in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two hundred rupees.
(4) Any employer who, without sufficient cause, fails to pay to a co- operative society the amount deducted by him under Section 39 with in a period of fourteen days from the date on which such deduction is made shall, without prejudice to any action that may be taken against him under any law for the time being in force, be punishable with fine which may extend to five hundred rupees
(5) Any officer or custodian who willfully fails to handover custody of books, records, cash, security and other property belonging to a Co- operative Society, of which he is an officer or custodian, to a person entitled under Section 26,48,49,50 or 51 shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing breach with a further fine which may extend to *[ twenty five rupees ] for every day during which the breach is continued after conviction for the first such breach.
(6) Any person who fraudulently acquires or abets in the acquisition of any such property which is subject to a charge under Section 31and 32shall be punishable with fine which extend to two hundred rupees.
72.Cogniizance of offence:- (1) No Court inferior to that of a ** [ Judicial Magistrate] of the first class shall try any offence under his Act.
(2) No prosecution shall be instituted under this Act without the previous sanction of the Registrar and such sanction shall not be given without giving to the person concerned a reasonable opportunity to represent his case.
73. Address of Societies:- Every co-operative society shall have an address registered in the manner prescribed to which all notice and communication may be sent , and shall send to the Registrar notice of every change thereof within thirty days of such change.
74. Copy of Act, rules and bye -laws, etc. to be open to inspection:-Every co-operative society shall keep a copy of this Act, the rules and its bye-laws and also a list of its member open to inspection free of charge at all reasonable time at the registered address of the society.
75. Prohibition against the use of the word “co-operative”.-No person other than a co-operative society shall trade or carry on business under any name or title of which the word “co-operative “ or its equivalent in any Indian language is part:
Provided that nothing in this section shall apply to the use by any person or his successor in interest of any name or title under which he carried on business at the date on which the Co-operative Societies Act, 1912 (2 of 1912). Come into operation.
76. Power to exempt societies from condition as to registration.-Not withstanding anything contained in this Act, Government , may, by general or by special order and subject to such conditions, if any, as if may impose, exempt any society or class of societies from any of the requirements of this Act as to registration.
77.Power to exempt.-Where the Government is satisfied that it is necessary so to do for furthering any object of the society or class of society specified in its or their bye-laws, it may, by a general or special order, published in the Official Gazette, exempt such society or class of society form any provision of this Act.
78. Liquidator to be public servant:- Act person appointed as liquidator under the provision of this Act or the rules shall be deemed to be public servant within the meaning of Section 21 of the India Penal Code.
79. Notice necessary in suits:- No suit shall be instituted against a co-operative society or any of its officers in respect of any touching the business of the society unity the expiration if three months next after notice in writing has been delivered to the Registrar or left at his office stating the cause of action, the name, description and place of residence of the plaintiff and relief which he claims and the plaint, shall contain a statement that such notice has been so delivered or left.
80. Companies Act not to apply:- The provision of the Companies Act, 1951 (1 of 1956), shall not apply to co-operative societies.
81. Savings of existing societies:- (1) Every society now existing which has been registered under the Co-operative Credit Societies Act, 1904, or under the Co-operative Society Act, 1912, or under the Punjab Co-operative Society Act, 1954 shall be deemed to be registered under the corresponding provisions of this Act, and its bye-laws shall, so far as the same are not inconsistent with the express provisions of this Act, continue in force until altered or rescinded.
(2) All appointments, rules and orders made, notifications and notices issued and suits and other proceeding instituted under the said Acts, shall so far as they are consistent with the provision of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made canceling the registration of a society shall be deemed, unless the society has already been finally liquidated, as an order issued under Section 57 for its being wound up.
82. Bar of jurisdiction of Court:- (1)Save as provided in the Act, no civil or revenue Court shall have any jurisdiction in respect of-
(a) the registration of a co-operative society or its bye-laws or of any amendment of a bye-law;
(b) the removal of a committee;
(c) any dispute required under Section 55 to be referred to the Registrar; and
(d) any matter concerning the winding up and the dissolution of a co-operative society,
(2) While a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the liquidator as such or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose .
(3) Save as provided in this Act. No order, decision or award made under this Act shall be questioned in any court on any ground whatsoever.
83. Powers of Civil Court:- (1) In exercising the functions conferred on it by or under this Act, the Registrar, the arbitrator or any other person deciding a dispute under Section 56 and the liquidator of a co-operative society or person entitled to audit, inspect or hold an inquiry shall have all the powers of the civil Court, while trying a suit, under the Code of Civil Procedure, 1908( 5 of 1908), in respect of the following matter namely-
(a) summoning and enforcing the attendance of any person and examining him on oath:
(b) requiring the discovery and production of any document;
(c) proof of facts by affidavits: and
(d) issuing commissions for examination of witnesses.
(2) In the case of an affidavit, any officer appointed by the Registrar, the arbitrator or any other person deciding a dispute and the liquidator, as the case may be, may administer the oath to the deponent.
84. Indemnity:-No suit, prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting of his authority in respect of anything in good faith done or purporting to have been done under this Act.
84-A. Constitution of common cadre of employees of certain societies:- (1) An apex society may suo moto, and when required to do so by the Registrar, shall constitute a common cadre of all or specified class of employees in the service of that society or in the service of the central societies which are members of the Apex Society or in the service of the primary societies which are members of the apex society of the aforesaid societies.
(2) When a common cadre of employees is constituted under sub-section (!),the Registrar, shall, notwithstanding anything contained in any law for the time being in force or any agreement, settlement or award, determine the pay scales and allowances admissible to the employees and apex Society shall make rules for the regulation of recruitment and conditions of service of such employees with the prior approval of the Registrar.
84-B. Provided that no such employee shall be allowed dearness allowed at a rate higher than that admissible to the employees of the Government drawing pay at the same rate.
85.Rules- (1)The Government may, for any co-operative society or class such societies, make rules to carry out the purposes of this Act.
(2) In particular , and without prejudice to the generality of the capital of a co-operative society which may , subject to the provisions of section 6 , be held by member:
(1) The maximum number of shares or portion of a co-operative society which may, subject to the provisions of section six, be held by member:
(2) the form to be used and the conditions to be complied with in the making of applications for the registration of a society and the procedure in the matter of such applications;
(3) the procedure and conditions for change in the form and extent of the liability of a co-operative society;
(4) the matters in respect of which the society may or shall make bye-laws and for the procedure to be followed in making altering and abrogating bye-laws and the conditions to be satisfied prior to such making. Alteration or abrogation;
(5) the conditions to be complied with by person applying for admission or admitted as members, for the election and admission of members, and for the payment to be made and the interest to be acquired before the exercise of the right of membership;
(6) the manners in which funds may be raised by means of shares and debentures or otherwise:
(7) for general meeting of the members and for the procedure at such meetings and the powers to be exercised by such meeting’
(8) the prohibitions and restrictions subject to which societies which may transact business with person who are not members;
(9) the proportion of individuals and societies in the constitution of the committee of management and the general body of a co-operative society of which another co-operative society is a member;
(10) subject to the provisions of Section 26, the election and nomination of members of committee, the appointment or election of officers and the suspension and removal of the members and other officers, and for the powers to be exercised and the duties to be performed by the committees and other officers;
* (10a) restrictions on transactions of officers and past officers with the co-operative society:
(10b) the manner in which share of individuals shall be retired under sub-section (2) of Section 15-A;
(10c) election of members of representative general body under sub-section (1A) of section 23 and the number of members of a co-operative society required under that sub-section;
(10d) the area of agricultural land, the conditions required to be fulfilled and the manner of co-option, for the purpose of Section 26-A;
** (10e) the manner in which the vacancies caused as a result of retirement of members of a committee shall be filled;
(11) the appointment and regulation of work entrusted to person or person replacing the committee in pursuance of Section 27;
(12) Prohibiting a co-operative society from electing a defaulting member on its committee or to be its representative;
(13) the accounts and books to be kept by a co-operative society, the audit of such accounts and the charges, if any, to be made for such audit and for the periodical publication of a balance sheet showing the assets and liabilities of a co-operative society;
(14) the returns to be submitted by the co-operative society to the Registrar, the persons by whom and the form in which such returns shall be submitted and in case of failure to submit any such returns for the levy of expenses of preparing it;
(15) the persons by whom and the form in which copies of the entries in books of societies may be certified and for the charges to be levied for the supply of such copies;
(16) the formation and maintenance of a register of members and where the liability of the members is limited by shares, of a register of shares;
(17) the appointment of an arbitrator to decide disputes;
(18) the procedure to be followed in proceeding before the Registrar, arbitrator or other persons deciding disputes including the appointment of a guardian for a party to the dispute who is minor or who by reason of unsoundness of mind or mental infirmity, is incapable of protecting his interests, and the levy of the expenses relating to such proceedings.
(19) The withdrawal and expulsion of members and for the payments, if any, to be made to members who withdraw or are expelled and for the liability of past members and of the estates of decease’s members
(20) The mode in which the value of a deceased member’s share or interest shall be ascertained and for the nomination of a person to whom such share or interest may be paid or transferred;
(21) The payments to be made and conditions to be complied with by members applying for loans, the period for which any loans may be made and the
Maximum amount which may be lent to any member;
* (21a) the form of certificate to be issued under’ sub-section (2) of Section 67-A;
(22) the formation and maintenance of reserve funds and other funds and the objects to which such funds may be applied and for the investment of any funds under the control of a co-operative society;
(23) the extent to which a co-operative society may limit the number of its members;
(24) the conditions under which profits may be distributed to the members of a co-operative society with unlimited liability and the maximum rate of dividend which may be paid by co-operative societies;
(25) the calculation and writing off of bad debt by co-operative societies;
(26) the procedure to be followed by a liquidator appointed under Section 58 in respect of provisions of Section 59;
(27) the procedure to be followed by in presenting and disposing of appeals under this Act;
(28) the form of orders referred to in Section 63 and 64;
(29) the issue and service of processes and for proof of service thereof;
(30) the manner of effecting attachment;
(31) the custody, preservation and sale of property under attachment;
(32) the investigation of claims by persons other than the defaulter to any right or interest in the attachment property, and for the postponement of the sale pending such investigation;
(33) the immediate sale of perishable articles;
(34) the inspection of documents in the office of the Registrar or of any other officer or authority and the levy of fees granting certified other the same;
(35) the terms and conditions on which Government may make share capital contribution or give assistance, financial or other, to societies and the terms and conditions on which Government may guarantee the payment of the principal or interest on debentures issued by societies or loans raised by them;
(36) the manner in which funds may be raised by a society or a class of societies by means of shares or debentures or otherwise and the quantum of funds so raised;
(37) for giving reasonable notice of the charge under Section 31 and 32;
(38) qualifications for members of the committee and employees of a society or class of societies and the conditions of service subject to which persons may be employed by societies;
(39) the method of communicating or publishing any order, decision or award required to be communicated or published under this Act or the rules.
(3) Every rule made under this Section shall be laid as soon as may be after it is made before *[the State Legislature] while it is in session for a total period of ten days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is laid or the session immediately following *[ the Legislature] agree in making any modification in the rules of *[the Legislature] agrees that the rules should not be made, the rules shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
86. Repeal and saving.- The Punjab Co-operative Societies Act, 1954(14 of 1955), is hereby repealed; but notwithstanding such repeal, anything done or any action taken under the repealed Act shall, to the extent of being consistent with this Act, be deemed to have been done or taken under this Act.