Maharashtra Co-operative Societies Act 1960

THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 19601
[Maharashtra Act, No. XXIV Of 1961]2
PREAMBLE
An Act to consolidate and amend the law relating to Co-operative Societies in the State of
Maharashtra
Whereas with a view to providing for the orderly development of the co-operative
movement in the State of Maharashtra in accordance with the relevant directive principles
of State policy enunciated in the Constitution of India, it is expedient of consolidate and
amend the law relating to co-operative societies in that State; It is hereby enacted in the
Eleventh Year of the Republic of India as follows:-
Footnote:
1. Received the assent of the President on the 4th May 1961: assent first published in the
Maharashtra Government, Part IV, on the 9th day of May 1961.
2. For Statement and Reasons, see Maharashtra Government Gazette, 1960, Part V, pages
270-273:for Report of the Select Committee, see Part V, pages 432-517.
Chapter: I - PRELIMINARY
Section 1 - Short title, extent and commencement
( 1) This Act may be called the Maharashtra Co-operative Societies Act, 1960.
( 2) It extends to the whole of the State of Maharashtra.
( 3) It shall come into force on1such date as the State Government may, by notification in
the Official Gazette, appoint.
Footnote:
1. 26th day of January 1962, wide G.N., C. & R.D.D. No. SCL 1061/135-G, dated 24th
January 1962.
Section 2 - Definitions
In this Act, unless the context otherwise requires,--
(1) "agricultural marketing society"means a society--
(a) the object of which is the marketing of agricultural produce and the supply of
implements and other requisites for agricultural production, and
(b) not less than three-fourths of the members of which are agriculturists, or societies
formed by agriculturists;
1 [(2) "apex society",means a society,--
(a) the area of operation of which extends to the whole of the State of Maharashtra,
(b) the main object of which is to promote the principal objects of the societies affiliated
to it as members and to provide for the facilities and services to them, and
(c) which has been classified as an apex society by the Registrars;].
2 [(3) * * * * * *]
(4) "bonus" means payment made in cash or kind out of the profits of a society to a
member, or to a person who is not a member, on the basis of his contribution (including
any contribution in the form of labour or service) to the business of the society, and in the
case of a farming society, on the basis both of such contribution and also the value or
income or as the case may be, the area of the lands of the members brought together for
joint cultivation as may be decided by the society 3 [but does not include any sum paid or
payable as bonus to any employee of the society under the payment of Bonus Act, 1965;].
(5) "by-laws"means by-laws registered under this Act and for the time being in force and
includes registered amendments of such by-laws;
4 [(6) "Central Bank"means a co-operative bank, the objects of which include the creation
of funds to be loaned to other societies; but does not include the urban cooperative
bank;].
5 [(7) "committee"means the committee of management or board of directors or other
directing body, by whatever name called, in which the management of the affairs of a
society is vested under section 73;].
(8) "Company"means a company as defined in the Companies Act, 1956 and includes a
Banking Company and also any board, corporation or other corporate body, constituted
or established by any Central, State or Provincial Act for the purpose of the development
of any industry;
(9) "consumer society"means a society, the object of which is--
(a) the procurement, production or processing, and distribution of goods to or the
performance of other services, for, its members as also other customers, and
(b) the distribution among its members and customers, in the proportion, prescribed by
rules or by-laws of the society, of the profits accruing from such procurement, production
or processing and distribution;
6 [(10) "co-operative bank" means a society which is doing the business of banking as
defined in clause (b) of sub-section (1) of section 5 of the Banking Companies Act, 1949
and includes any society which is functioning or is to function as 7 [an Agriculture and
Rural Development Bank] under Chapter XI];
8 [(10-ai) "Co-operative Appellate Court" means the Maharashtra State Co-operative
Appellate Court constituted under this Act;
(10-aii) "Co-operative Court" means a court constituted under this Act to decide 9
[disputes referred to it under any of the provisions of the Act];
10 [(10-aiii) "co-operative year"means a year ending on the 11 [31st day of March]; or on
such other day in regard to a particular society or class of societies 12 [as may have been
fixed by the Registrar, from time to time], for balancing its or their accounts;];
13 [(10-A) "crop protection society"means a society the object of which is protection of
the crops, structures, machinery, agricultural implements and other equipment such as
those used for pumping water on the land;].
(11) "dividend"means the amount paid, out of the profits of a society, to a member in
proportion to the shares held by him;
(12) "farming society"means a society in which, with the object of increasing agricultural
production, employment and income and the better utilisation of resources, lands are
brought together and jointly cultivated by all the members, such lands (a) being owned by
or leased to the members (or some of them), or (b) coming in possession of the society in
any other manner whatsoever;
(13) "federal society"means a society--
(a) not less than five members of which are themselves societies, and
(b) in which the voting rights are so regulated that the members which are societies have
not less than four-fifths of the total number of votes in the general meeting of such
society;
(14) "firm"means a firm registered under the Indian Partnership Act, 1932;
(15) "general society"means a society not falling in any of the classes of societies defined
by the other clauses of this section;
14 [(16) "housing society"means a society, the object of which is to provide its members
with open plots for housing, dwelling houses or flats; or if open plots, the dwelling
houses or flats are already acquired, to provide its members common amenities and
services];
15 [(16-A) "lift irrigation society"means a society, the object of which is to provide water
supply, by motive power or otherwise to its members, for irrigation and otherwise;].
(17) "Liquidator" means a person appointed as liquidator under this Act;
(18) "local authority" includes a school board and an agricultural produce market
committee constituted by or under any law for the time being in force;
(19) (a) "member"means a person joining in an application for the registration of a cooperative
society which is subsequently registered, or a person duly admitted to -
membership of a society after registration and includes a nominal, associate or
sympathiser member;
(b) "associate member"means a member who holds jointly a share of a society with
others, but whose name does not stand first in the share certificate;
(c) "nominal member"means a person admitted to membership as such after registration
in accordance with the by-laws;
(d) "sympathiser member"means a person who sympathises with the aims and objects of
the society and who is admitted by the society as such member;
(20) "officer"means a person elected or appointed by a society to any office of such
society according to its by-laws; and includes a chairman, vice-chairman, president, vicepresident,
managing director, manager, secretary, treasurer, member of the committee
and any other person elected or appointed under this Act, the rules or the by-laws, to give
directions in regard to the business of such society;
16 [(20-A) "Official Assignee"means a person or body of persons appointed by the
Registrar under sub-section (2) of section 21A;];
(21) "prescribed"means prescribed by rules;
(22) "processing society"means a society, the object of which is the processing of goods;
(23) "producers' society"means a society, the object of which is, the production and
disposal of goods or the collective disposal of the labour of the members thereof;
(24) "Registrar"means a person appointed to be the Registrar of Co-operative Societies
under this Act;
(25) "resource society"means a society, the object of which is the obtaining for its
members of credit, goods or services required by them;
(26) "rules"means rules made under this Act;
(27) "society" means a co-operative society registered, or deemed to be registered, under
this Act;
(28) "society with limited liability"means a society having the liability of its members
limited by its by-laws;
(29) "society with unlimited liability"means a society, the members of which are, in the
event of its being wound up, jointly and severally liable for and in respect of its
obligations and to contribute to any deficiency in the assets of the society;
(30) 17 [* * *]
(31) "working capital"means funds at the disposal of a society inclusive of paid up share
capital, funds built out of profits, and money raised by borrowing and by other means.
Footnote:
1. Clause (2) was inserted by Mah. 20 of 1986, s. 2(a).
2. Clause (3) was deleted, by Mah. 20 of 1986, s. 2(b).
3. This portion was added by Mah. 27 of 1969, s. 2(a).
4. Clause (6) was substituted for the original by Mah. 20 of 1886, s. 2(c).
5. Clause (7) was substituted, by Mah. 20 of 1886, s. 2 (d).
6. Clause (10) was substituted by Mah. 33 of 1963, s. 2.
7. These words were substituted for the words "a Land Development Bank" by Mah. 10
of 1988, s. 2.
8. Clauses (10-ai) and (10-aii) were inserted by Mah. 3 of 1974, s. 2(b).
9. These words were substituted for the words "disputes referred to it by the Registrar" by
Mah. 18 of 1982, s. 2.
10. Clause (10-aiii) was inserted by Mah. 20 of 1986, s.2(e).
11. This figures, letters and words were substituted for 31st day of June" by Mah. 13 of
1994, s. 2(a).
12. This portion was substituted by Mah. 13 of 1994, s. 2(b).
13. Clause (10-A) was inserted by Mah. 27 of 1969, s. 2(b).
14. Clause 16, was substituted by Mah. 20 of 1986, s. 2(f).
15. Clause (16-A) was substituted by Mah. 3 of 1974, s. 2(c).
16. Clause (20-A) was inserted by Mah. 20 of 1986, s. 2(g)
17. Clause (30) was deleted by Mah. 3 of 1974, s. 2(d).
Chapter: II - REGISTRATION
Section 3 - Registrar and his subordinates
3.Registrar 1 [and his subordinates]
TheState Government may appoint a person to be the Registrar of Co-operativeSocieties
for the State; and may appoint one or more persons to assist suchRegistrar 2 [with such
designations,and in such local areas or throughout the State, as it may specify in
thatbehalf,] and may, by general or special order, confer on any suchperson or persons all
or any of the powers of the Registrar under this Act. Theperson or persons so appointed
to assist the Registrar and on whom any powersof the Registrar are conferred, shall work
under thegeneral guidance, superintendence and control of the Registrar. 3[They shall be
subordinateto the Registrar, and subordination of suchpersons amongst themselvesshall
be such as may be determined by the State Government.].
Footnote:
1.These words were added, by Mah. 27of 1969,s. 3(c).
2.These words were inserted by Mah. 27of 1969,s. 3(a).
3.These words were added, by Mah. 27of 1969,s. 3(b).
Section 3A - Temporary vacancies
1[ 3A. Temporary vacancies
If the Registrar or a person appointed to assist such Registrar is disabled from performing
his duties or for any reason vacates his office or leaves his jurisdiction or dies, then--
(a) in the case of the Registrar, the Additional or Joint Registrar, in the office of
the Registrar, and
(b) in the case of a person appointed to assist the Registrar, the senior most officer
holding the next higher post, in the respective office,
shall, unless other provision has been made in that behalf, hold temporarily the office of
the Registrar or, as the case may be, of the person appointed to assist the Registrar in
addition to his own office and shall be held to be the Registrar or the person appointed to
assist the Registrar under this Act, until the Registrar or the person appointed to assist the
Registrar resumes his office, or until such time as the successor is duly appointed and
takes charge of his appointment.].
Footnote:
1. Section 3A was inserted by Mah. 20 of 1986, s. 3.
Section 4 - Societies which may be registered
A society, which has as its objects the promotion of the economic interests or general
welfare of its members, or of the public, in accordance will co-operative principles, or a
society established with the object of facilitating the operations of any such society, may
be registered under this Act;
Provided that, no society shall be registered if it is likely to be economically unsound, or
the registration of which may have an adverse effect on development1[of the co-operative
movement, or the registration of which may be contrary to the policy directives which the
State Government may, from time to time, issue.].
Footnote:
1. These words were substituted for the words "of the co-operative movement," by Mah.
20 of 1986, s. 4.
Section 5 - Registration with limited or unlimited liability
A society may be registered with limited or unlimited liability.
Section 6 - Conditions of registration
( 1) No society, other than a federal society, shall be registered under this Act, unless it
consists of at least ten persons1[or such higher number of persons as the Registrar may,
having regard to the objects and economic viability of a society and development of the
co-operative movement, determine from time to time for a class of societies] (each of
such persons being a member of a different family), who are qualified to be members
under this Act, and who reside in the area of operation of the society:
2[Provided that, a lift irrigation society consisting of less than ten but of five or more such
persons may be registered under this Act.]
( 2) No society with unlimited liability shall be registered, unless all persons forming the
society reside in the same town or village, or in the same group of villages.
3[(2A) No crop protection society shall be registered, unless the Registrar is satisfied,
after such inquiry, as he thinks necessary, that a draft of the proposal made by the society
for protecting the crops, structures, machinery, agricultural implements and other
equipment such as those used for pumping water on the land, was duly published for
inviting all owners of lands likely to be affected by the proposal and all other persons
likely to be interested in the said lands to join the proposal or to send their objections or
suggestions and that the objections and suggestions received, if any, have been duly
considered by the society and that the owners in possession of not less than 66 per cent in
the aggregate of the lands included in the proposal have given their consent in writing to
the making of the proposal and that the proposal made is feasible. For this purpose, the
society shall submit to the Registrar.:--
(a) a plan showing the area covered by the proposal and the surrounding lands as shown
in the map or maps of the village or villages affected;
(b) an extract from the record of rights duly certified showing the names of the owners of
the lands and the areas of the lands included in the proposal;
(c) statements of such of the owners of the lands as consented to the making of the
proposal signed by owners before two witnesses;
(d) a detailed estimate of the cost of implementing the proposal;
(e) a detailed statement showing how the cost is proposed to be met.
When such society is registered, the cost of implementing the proposal shall be met
wholly or in part by contribution to be levied by the society from each owner of the land
included in the proposal, including any such owner who may have refused to become a
member of the society. The owner of every land included in the proposal shall also be
primarily liable for the payment of the contribution leviable from time to time in respect
of such land.]
( 3) No federal society shall be registered unless it has at least five societies as its
members.
( 4) Nothing in this Act shall be deemed to affect the registration of any society made
before the commencement of this Act.
( 5) The word 'limited' or "unlimited" shall be the last word in the name of every society
with limited or unlimited liability, as the case may be, which is registered or deemed to
be registered under this Act.
Explanation.-- For the purposes of this section and section 8 the expression "member of a
family" means a wife, husband, father, mother,4[son, or unmarried daughter.]
Footnote:
1. These words were inserted by Mah. 20 of 1986, s. 5.
2. This proviso was added, by Mah. 27 of 1969, s. 4(a).
3 . Sub -section ( 2A) was inserted, by Mah. 27 of 1969, s. 4(b).
4. These words were sub stituted for the portion beginning with "grand-father, grandmother"
and ending with "wife of brother or half-brother" by Mah. 33 of 1963, s. 3.
Section 7 - Power to exempt societies or class of societies from conditions as to
registration
7. Power to exempt societies1[or class of societies] from conditions as to registration
Notwithstanding anything contained in this Act, the State Government may,2[by general
or special order, exempt any society or class of societies from any of the requirements of
this Act as to registration, subject to such conditions (if any) as it may impose.]
Footnote:
1. These words were inserted, by Mah. 27 of 1969, s. 5(b).
2. This portion was sub stituted for the original portion by Mah. 27 of 1969, s. 5 (a). 4.
Section 8 - Application for registration
(1) For the purposes of registration, an applicationshall be made to the Registrar in
theprescribed form, and shall be accompanied by four copies of the proposed by-laws of
thesociety 1 [andsuch registration fee as may be prescribed in this behalf.
Differentregistration fees may be prescribed for different classes of societies, regardbeing
had to the service involved in processing an application forregistration]. The person by
whom, or on whosebehalf, such application is made, shall furnish such information in
regard to thesociety, as the Registrar may require.
(2) The application shall be signed--
(a)in the case of a society other than a federal society by at least ten persons(each of such
persons being a member of a different family), who are qualifiedunder this Act, and
(b)in the case of a federal society, by at least five societies.
Nosignature to an application on behalf of a societyshall be valid, unless the
personsigning is a memberof the committee of such a society and is authorised by the
committee byresolution to sign on its behalf the application for registration of thesociety
and its bylaws; and a copy of such resolution is appended to theapplication.
Footnote:
1. These words wereinserted by Mah. 3 of 1974, s. 3.
Section 9 - Registration
( 1) If the Registrar is satisfied that a proposed society has complied with the provisions
of this Act and the rules,1[or any other law for the time being in force, or policy directives
issued by the State Government under section 4] and that its proposed by-laws are not
contrary to this Act or to the rules, he2[shall, within two months], from the date of receipt
of the application register the society and its by-laws.
3[( 2) Where there is a failure on the part of the Registrar to dispose of such application
within the period aforesaid, the Registrar shall, within a period of fifteen days from the
date of expiration of that period refer the application to the next higher officer and where
the Registrar himself is the registering officer, to the State Government, who or which, as
the case may be, shall dispose of the application within two months from the date of its
receipt and on the failure of such higher officer or the State Government, as the case may
be, to dispose of the application within that period, the society and its by-laws shall be
deemed to have been registered.4[and thereafter the Registrar shall issue a certificate of
registration under his seal and signature within a period of fifteen days]].
( 3) Where the Registrar refuses to register a proposed society, he shall forth-with
communicate his decision, with the reasons therefor, to the person making the application
and if there be more than one to the person who has signed first thereon.
( 4) The Registrar shall maintain a register of all societies registered, or deemed to be
registered, under this Act.
Footnote:
1 . These words and figures were inserted by Mah. 20 of 1986, 6(a)(i).
2. These words were sub stituted for the words "may, within six months," by Mah. 20 of
1986, s. 6(a)(ii).
3. Sub -section ( 2) was sub stituted for the original, by Mah. 20 of 1986. s. 6(b).
4. These words were added by Mah. 7 of 1997, s. 2.
Section 10 - Evidence of Registration
A certificate of registration signed by the Registrar, shall be conclusive evidence that the
society therein mentioned, is duly registered, unless it is proved that the registration of
the society has been cancelled.
Section 11 - Power of Registrar to decide certain questions
When,1[* * * * *] any question arises whether a person is an agriculturist or not, or
whether any person resides in the area of operation of the society or not,
2[or whether a person is or is not engaged in or carrying on any profession, business or
employment, or whether a person belongs or does not belong to such class of persons as
declared under sub-section ( 1A)of section 22 and has or has not incurred a
disqualification under that sub-section,] such question shall be decided by the
Registrar3[and his decision shall be final, but no decision adverse to any such person shall
be given without giving him an opportunity of being heard.]
Footnote:
1 . The words "for the purpose of the formation, or registration or continuance, of a
society." were deleted, by Mah. 20 of 1986, a. 7(a).
2 . These words were inserted, by Mah. 20 of 1986, s. 7(b).
3 . These words were inserted, by Mah. 3 of 1974, s. 4.
Section 12 - Classification of societies
(1)The Registrar shall classify all societies into one or other of the classes of societies
defined in section 2 and also into such sub-classes thereof as may be prescribed by rules.
(2) The Registrar may, for reasons to be recorded in writing, alter the classification of a
society from one class of society to another, or from one subclass thereof to another; and
may, in the public interest and subject to such terms and conditions as he may think fit to
impose, allow any society so classified to undertake the activities of a society belonging
to another class.
(3) A list of all societies so classified shall be published by the Registrar every three years
in such manner as the State Government may, from time to time direct.
Section 13 - Amendment of bye-laws of society
(1) Noamendment of the by-laws of a society shall be valid until registered under this
Act. Forthe purpose of registration of an amendment of the bye-laws, a copy of
theamendment passed, in the manner prescribed, at a generalmeeting of the society,shall
be forwarded to the Registrar. 1 [Every application of registration of an amendmentof the
bye-laws shall 2 [* * *] be disposed ofby the Registrar within a period of two months
from the date of its receipt.
3 [* * *]
4 [(1A) Where there is a failure on the part of theRegistrar to dispose of such application
within the period aforesaid, theRegistrar shall,within a period of fifteen days from the
date of expiration of that periodrefer the application to the next higher officer and where
the Registrarhimself is the registering officer, tothe State Government, who or which, as
the case may be,shall dispose of the applicationwithin two months from the date of its
receipt and on the failure of suchhigher officer or the StateGovernment, as the casemay
be, to dispose of the application within that period, the amendment of thebye-laws shallbe
deemed to have been registered.
(1B) No amendment of the bye-laws of a societyshall be registered by the Registrarunder
this section or in the case of the bye-laws which are deemed to have beenregistered
shallhave effect, if the amendment is repugnant to the policy directives, if any,issued by
the State Government under section 4.].
(2) When the Registrar registers an amendment of thebye-laws of a society 5 [or where an
amendment of the bye-laws is deemed to have beenregistered] he shallissue to the society
a copy of the amendment certified byhim, whichshall be conclusive evidence that
thesame is duly registered.
(3) Where the Registrar refuses to register 6 [such amendment], of the bye-laws of a
society, heshall communicate theorder of refusal; together withhis reasons therefor, to the
society.
Footnote:
1. This portion was addedby Mah. 27 of 1969, s. 6.
2. The words "as faras possible," were deleted by Mah.20 of 1986, s. 8(a)(i).
3. The proviso was deleted,by Mah. 20 of 1986, s. 8(a)(ii).
4. Thesesub-sectionswere inserted by Mah. 20 of 1986, s. 8(a)(iii).
5. These words wereinserted, by Mah. 20 of 1986, s. 8(a)(a).
6. These words weresubstitutedfor the words "the amendment", by Mah. 20 of 1986, s.
8(b)(b).
Section 14 - Power to direct amendment of bye-laws
(1) If it appears to the Registrar that an amendment of the bye-laws of a society is
necessary or desirable in the interest of such society, he may call upon the society, in the
manner prescribed, to make the amendment within such time as he may specify.
(2) If the society fails to make the amendment within the time specified, the Registrar
may, after giving the society an opportunity of being heard arid after consulting such
State federal society as may be notified by the State Government, register such
amendment, and issue to the society a copy of such amendment certified by him. With
effect from the date of the registration of the amendment in the manner aforesaid, the
bye-laws shall be deemed to have been duly amended accordingly; and the bye-laws as
amended shall, subject to appeal (if any), be binding on the society and its members.
Section 15 - Change of name
(1) A society may, by resolution passed at a general meeting and with the approval of the
Registrar, change its name; but such change shall not affect any right or obligation of the
society, or of any of its members, or past members, or deceased members; and any legal
proceedings pending before any persons, authority or court may be continued by or
against the society, under its new name.
(2) Where a society changes its name, the Registrar shall enter the new name in its place
in the register of societies and shall also amend the certificate of registration accordingly.
Section 16 - Change of liability
(1) Subject to the provisions of this Act and the rules, a society may, by amendment of its
bye-laws, change the form or extent of its liability.
(2) When a society has passed a resolution to change the form or extent of its liability, it
shall give notice thereof in writing to all its members and creditors and notwithstanding
anything in any bye-law or contract to the contrary, any member or creditor shall, during
a period of one month from the date of service of such notice upon him, have the option
of withdrawing his shares, deposits or loans.
(3) Any member or creditor who does not exercise his option within the period specified
in sub-section (2), shall be deemed to have assented to the change.
(4) An amendment of the bye-laws of a society, changing the form or extent of its
liability, shall not be registered or take effect until, either--
(a) all members and creditors have assented, or deemed to have assented, thereto as
aforesaid; or
(b) all claims of members and creditors who exercise- the option, given by subsection (2),
within the period specified therein, have been met in full or otherwise satisfied.
Section 17 - Amalgamation, transfer, division or conversion of societies
(1) A society may, with the previous approval of the Registrar, by resolution passed by
two-thirds majority of the members present and voting at a special general meeting held
for the purpose, decide--
(a) to amalgamate with another society;
(b) be transfer its assets and liabilities, in whole or in part, to any other society;
(c) to divide itself into two or more societies; or
(d) to convert itself into another class of society:
Provided that, when such amalgamation, transfer, division or conversion, aforesaid,
involves a transfer of the liabilities of a society to any other society, no order on the
resolution shall be passed by the Registrar, unless he is satisfied that--
(i) the society, after passing such resolution, has given notice thereof in such manner as
may be prescribed to all its members, creditors and other persons, whose interests are
likely to be affected (hereinafter in this section referred to as "other interested persons"),
giving them the option, to be exercised within one month from the date of such notice, of
becoming members of any of the new societies, or continuing their membership in the
amalgamated or converted society, or demanding payment of their share or interest or
dues, as the case may be,
(ii) all the members and creditors and other interested persons, have assented to the
decision, or deemed to have assented thereto by virtue of any member or creditor or any
other interested person failing to exercise his option within the period specified in clause
(i) aforesaid, and
(iii) all claims of members and creditors and other interested persons, who exercise the
opinion within the period specified, have been met in full or otherwise satisfied.
(2) Notwithstanding anything contained in the Transfer of Property Act, 1982, or the
Indian Registration Act, 1908, in the event of division or conversion, the registration of
the new societies or, as the case may be, of the converted society, and in the event of
amalgamation, on the amalgamation the resolution of the societies concerned with
amalgamation, shall in each case be sufficient conveyance to vest the assets and liabilities
of the original society or amalgamating societies in the new societies or converted or
amalgamated society, as the case may be.
(3) The amalgamation of societies, or division or conversion of a society shall not affect
any rights or obligation of the societies so amalgamated, or society so divided or
converted, or render defective any legal proceedings which might have been continued or
commenced by or against the societies which have been amalgamated, or divided or
converted; and accordingly, such legal proceedings may be continued or commenced by
or against the amalgamated society, or, as the case may be, the converted society, or the
new societies.
(4) Where two or more societies have been amalgamated, or a society has been divided or
converted, the registration of such societies or society shall be cancelled on the date of
registration of the amalgamated society, or the converted society, or the new societies
between which the society may have been divided.
Section 18 - Power to direct amalgamation, division and reorganisation in public
interest, etc.
(1) Where the Registrar is satisfied that it isessential in the public interest or in the
interest of the co-operativemovement, or for the purpose of securing the proper
management of any society,that two or more societies should amalgamate or any
societyshould be divided to form two or moresocieties or shouldbe reorganised then
notwithstanding anything contained in the last precedingsection but subjectto the
provisions of this section, the Registrar may, after consulting suchfederal society as may
be notified by the State Government byorder notified in the Official Gazette, provide for
theamalgamation, division or reorganisation, of those societies into a singlesociety, or
into societies with such constitution, property rights, interestsand authorities, and such
liabilities, duties and obligations, as may bespecified in the order.
(2) No order shall be made under this section, unless--
(a)a copy of the proposed order has been sent in draft to the society or each of the
societiesconcerned.
(b)the Register has considered and made such modifications in thedraft order as may
seem to him desirable in the light of any suggestions andobjections which may be
received by him within such period (not being less than twomonths from the date on
which the copy of the order as aforesaid was received by the society) as theRegistrar may
fix in that behalf, either from the society or from anymember or class ofmembers thereof,
or from any creditoror class of creditors.
(3) The order referred to in sub-section (1) may contain such incidental, consequential
andsupplemental provisions as may, in the opinion of the Registrar, be necessaryto give
effect to the amalgamation, the division or reorganisation.
(4) Every member or creditor of1 [or other person inserted in] each of the societies to
beamalgamated, divided or reorganised who has objected to the scheme ofamalgamation,
division or reorganisation, within the period specified,shall be entitled to receive, on
theissue of the orderof amalgamation, division or reorganisation his share or interest if he
be amember and the amount in satisfactionof his due if he be acreditor.
(5) On the issue of an order under sub-section (1), the provisions in sub-sections (2), (3)
and (4) of section 17 shall apply to the societies so amalgamated, dividedor reorganised
as if they were amalgamated, divided or reorganised under thatsection, and to the society
amalgamated, divided or reorganised.
2 [(6) Nothing contained in this sectionshall apply for the amalgamation of 3 [two or more
co-operative banks or two or moreprimary agricultural credit societies].]
Footnote:
1. These words wereinserted by Mah. 20 of 1986, s. 9.
2.Sub-section (6) was added by Mah. 5 of 1976, s. 2.
3. These words weresubstitutedfor the words "two or more co-operative banks" by Mah.
4 of 1977, s. 2.
Section 18A - Amalgamation of co-operative banks
1 [18A. Amalgamation of co-operative banks
(1) Where the Registrar is satisfied that it isessential in the public interest, or in order to
secure the proper management of one or moreco-operative banks that two or more such
banks should be amalgamated, then notwithstanding anythingcontained in section 17, the
Registrar may, after consulting such federal society orother authority as may be notified
bythe State Government in the OfficialGazette, by order provide for the amalgamation of
those banks intoa single bank, with such constitution, property, rights, interests
andauthorities, and such liabilities, duties, and obligations as may be specifiedin the
order.Such ordermay provide for the reduction of the interest or rights which
themembers, depositors, creditors,employees and otherpersons may have in or against
any bank to be amalgamated to such extent as theRegistrar considers necessary in the
interest of such persons for themaintenance of the business of that bank having due
regard to the proportion ofthe assets of such bank to its liabilities. Such order may also
contain such incidental, consequentialand supplemental provisions as may, in the opinion
of the Registrar, benecessary to give effect to the amalgamation of the banks.
(2) No order shall be made under sub-section (1), unless--
(a)a copy of the proposed order has been sent in draft to each of the banks concerned;
(b)the Registrar has considered and made such modifications in thedraft order as may
seem to him desirable in the light of any suggestions orobjections which may be received
by him within such period (not being less than twomonths from the date on which the
copy of the proposedorder was received by the banks) asthe Registrar may fix in that
behalf, either from the banks or anymembers, depositors, creditors,employees or
otherpersons concerned.
(3) On the issue of an order under sub-section (1), notwithstanding anything contained in
this Actor in any law for the time being in force or in any contract, award orother
instruments for the time beingin force, the provisions thereof, shall be binding on all
banks and theirmembers, depositors, creditors,employees and otherpersons having any
rights, assets, or liabilities in relation to all or any ofthe banks concerned.
(4) Notwithstanding anything contained in theTransfer of Property Act, 1882 or the
Registration Act,1908, the order issued under sub-section (1) shall be sufficient
conveyance for transfer orvesting the rights, assets and liabilities of the banks concerned
as providedin the order.
(5) The amalgamation of banks under this sectionshall not affect any rights orobligations
of the banks so amalgamated or render defective any legalproceedings, which might have
been continued or commenced by or against anysuch banks; and accordingly, such legal
proceedings may be continued orcommenced by or against the amalgamated bank.
(6) Where two or more banks have been amalgamated,the registration of the bank in
which the other banks are amalgamated may be continued and theregistration of the other
banksmay be cancelled, or where the amalgamated bank is newly registered, the
registration of all the amalgamatingbanks shallbe cancelled.
(7) Any order made by the Registrar under this sectionshall be final and conclusive,
andshall not be called in question in anyCourt.]
Footnote:
1. Section 18A was inserted by Mah. 5 of 1976, s. 3.
Section 18B - Amalgamation of primary agricultural credit societies
1 [18B. Amalgamation of primary agricultural creditsocieties
(1) Where the Registrar is satisfied that it isessential--
(a)for ensuring economic viability of one or more primary agricultural creditssocieties;
(b) foravoiding overlapping or conflict of jurisdictions of such societies in any area;
(c) inorder to secure the proper managementof one or more such societies;
(d) in theinterest of the credit structure or co-operative movement in the State aswhole;
(e) in theinterest of the depositors; or
(f) forany otherreason in the public interest,
thattwo or more primary agricultural credit societies should be amalgamated, then
notwithstanding anythingcontained in section 17, the Registrar may, after consulting such
federal society orother authority as may be notified bythe State Government in this
behalf, by order published in the Official Gazette, provide for the amalgamation of
thosesocieties into a single society. The constitution, property, rights, interestsand
authorities and the liabilities, duties and obligations of the amalgamatedsociety shallbe
such as may be specified in the order. Such order may provide for the reduction of the
interest orrights which the members,depositors, creditors, employees and other persons
may have in, or against, any society to beamalgamated to such extent as the Registrar
considers necessary in the interestof such persons for the maintenance of the business of
that society, having dueregard to the proportion of the assets of such society, to its
liabilities.Such ordermay also contain such incidental, consequential and supplemental
provisions asmay, in the opinion of the Registrar, be necessary to give effect to
theamalgamation of the societies.
(2) No order shall be made under sub-section (1), unless--
(a)a copy of the proposed order has been sent in draft to each of the societies concerned;
(b)the Registrar has considered and made such modifications in thedraft order as may
seem to him desirable in the light of any suggestions or objectionswhich may be received
by him within such period (not being less than twomonths from the date on which the
copy of the proposedorder was received by the societies)as the Registrar may fix in that
behalf, either from the societies or anymembers, depositors, creditorsemployees or
otherpersons concerned.
(3) When any order is made by the Registrar undersub-section (I), the provisions ofsubsections
(3) to (7) (both inclusive) of section18-A shall, mutatismutandis apply to such
order, in the same manner as they are applicable toany ordermade by himunder
subsection(1) of that section.]
Footnote:
1. Section 18B was inserted by Mah. 4 of 1977, s. 3.
Section 18C - Reorganisation of societies on account of alteration of limits of local
areas in which they operate
1 [18C. Reorganisation of societies on account ofalteration of limits of local areas in
which they operate
(1) Where the area of operation of any society orsocieties is restricted to any district,
taluka, municipal area or anyother local area and such area isdivided into two or more
areas, or merged in any other area, or is diminished or increased orotherwise altered,
under any law forthe time being in force and the State Government is satisfied that in
thepublic interest, or in the interest of the co-operative movement, or in theinterest of the
society or societies, or for the purpose of proper demarcationof area of operation for the
societies in each area, it is essential toreorganise any such society or societies, the State
Government may by anorder, published in the Official Gazette, and in suchother manner
as it deems fit, providefor division of any existing society into two or more societies,
amalgamationof two or more existing societies into one society, dissolution of any
existingsociety or reconstitution of any existing society, affected by the
territorialchanges.
(2) An order made under sub-section (1) may provide for all on any of the
followingmatters, namely:--
(a)the division of an existing society into two or more societies and the area ofoperation
of each society;
(b) theamalgamation of two or more existing societies into one society and the area ofits
operation;
(c)the dissolution of any existing society;
(d)the reorganisation of any existing society and the area of its operation;
(e) theremoval of the committee of any existing society and the appointment of
anadministrator or an interim committee of management, to manage the affairs ofthe
existing society or of the new society or societies, under the control anddirection of the
State Government, for a period not exceeding two years, as maybe specified in the order
or until the successor committee of the concerned society is dulyconstituted, whichever is
earlier:
2 [Provided that the period of two years may beextended by the State Government from
time to time, so however that the totalperiod does not exceed three years in the
aggregate;]
3 [Provided further that, itshall be competent for the StateGovernment to alter and
appoint, from time to time, during the said period orextended period and for any reason
whatsoever, anyother Administrator or an interimcommittee of management or any or all
the members of such committee, as it deems fit,notwithstanding that the term of extended
term of office of the Administratoror an interim committee of management or of any or
all themembers of such committee has not expired.]
(f) in thecase of an existing federal society, the transfer of any of itsmember societies
amembers ofanother federal society named in theorder;
(g) thetransfer, in whole or in part, of the assets, rights and liabilities of any,existing
society, including the rights and liabilities under any contract madeby it to one or more
societies and the terms and conditions of such transfer;
(h) the substitution of any such transferee for the existingsociety, or the addition of any
such transferee, as a party to any legalproceeding or any proceeding pending before an
officer or authority, to which theexisting society is a parry; and the transfer of any
proceedings pending beforethe existing society or its officer or authority to any such
transferee or itsofficer or authority;
(i)the transfer or re-employments of any employees of the existing society to, orby, such
transferee and the terms and conditions of service applicable to suchemployees after such
transfer or re-employment:
Providedthat, the terms and conditions of any such employeeshall not be made less
favourable thanthose applicable to him while in the service of the existing society, except
with theprevious approval of the State Government;
(j)the application of the by-laws of the existing society to one or more societieswithout
any modifications or with such modifications as may be specified in theorder;
(k) allincidental, consequential and supplementary matters as may be necessary
orexpedient to give effect to the order made under this section.
(3) Notwithstanding anything contained in theTransfer of Property Act, 1882, or the
Registration Act,1908, the order issued under this sectionshall be sufficient conveyance
fortransfer of the assets, rights and liabilities of the existing society asprovided in the
order.
(4) Any order made by the State Government under this sectionshall be final and
conclusive andshall not be called in question in anycourt.
(5) Except as otherwise provided by this section or by anyorder issued thereunder,
theprovisions of this Act and the rules and orders issuedthereunder,shall in allother
respects apply to the existingsocieties and the new or reorganised societies formed under
this section.]
Footnote:
1. Section 18C was inserted by Mah. 7 of 1982, s. 2.
2. This proviso was addedby Mah. 9 of 1985, s. 2.
3. This proviso wasinserted by Mah. 10 of 1988, s. 3.
Section 19 - Reconstruction of societies
Where a proposal for a compromise or arrangement--
(a) between a society and its creditors, or
(b) between a society and its members,
is approved at a special general meeting called for the purpose, the Registrar may on the
application of the society or of any member or of any creditor of the society, or in the
case of a society which is being wound up, of the liquidator, order reconstruction in the
prescribed manner, of the society.
Section 20 - Partnership of societies
( 1) Any two or more societies may, with the prior approval of the Registrar by resolution
passed by three-fourths maj ority of the me mbers present and voting at a general me
eting of each such society, enter into partnership for carrying out any specific business or
business, provided that each me mber has had clear ten days, written notice of the
resolution and the date of the meeting.
1[Provided that, in case of a society which has not taken any financial assistance from the
Government, in the form of sh are capital, loan or guarantee, the prior approval of the
Registrar for entering into such partnership shall not be required.]
( 2) Nothing in the Indian Partnership Act, 1932, shall apply to such partnership.
Footnote:
1. Proviso inserted by Mah. 34 of 2001, (w.e.f. 7-9-2001), s. 2.
Section 20A - Collaboration by societies
1[ 20A. Collaboration by societies
( 1) Any society or societies may, with the prior approval of the State Government,2[and
subject to such terms and conditions as the State Government may impose and in such
manner as may be prescribed] enter into collaboration with any Government undertaking
or any undertaking approved by the State Government for carrying on any specific
business or businesses, including industrial investment, financial aid or marketing and
management expertise.
( 2) B efore approving any such scheme of collaboration by any society or societies under
sub -section ( 1), the State Government shall have due regard to the following matters,
namely:--
(a) that the scheme is economically viable;
(b) that it can be implemented without, in any way, eroding the co-operative character of
the society or the societies concerned;
(c) that the scheme is in furtherance of the interests of the members of the society or
societies concerned, or is in the public interest, and in the interest of the co-operative
movement in general.]
3[Provided that, no prior approval of the State Government shall be necessary in case of a
society which has not taken any financial assistance from the Government in the from of
share capital, loan or guarantee and such society may enter into collaboration with any
undertaking with the prior approval of it's general body if the requirements laid down in
clauses (a), (b) and (c) of sub-section ( 2), are being fulfilled in case of such society.]
Footnote:
1. Section 20 A was inserted by Mah. 20 of 1986, s. 10.
2. Inserted by Mah. 10 of 1988, s. 4.
3. This proviso was added by Mah. 34 of 2001, (w.e.f. 7 - 9 - 2001) s. 3.
Section 21 - Cancellation of registration
The Registrar shall make an order cancelling the registration of a society if it transfers the
whole of its assets and liabilities to another society, or amalgamates with another society,
or divides itself into two or more societies or if its affairs are wound up,1[or it is deregistered
under the provisions of sub-section ( 1) of section 21A]2[or winding up
proceedings in respect of the society are closed or terminated under section 109.].3[* * *
*].
The society shall, from the date of such order of cancellation, be deemed to be dissolved
and shall cease to exist as a corporate body.
Footnote:
1. Inserted by Mah.10 of 1988, s.5.
2. This portion was inserted by Mah. 3 of 1974, s.4.
3. The portion beginning with "or it has commenced business" and ending with "be
cancelled" was deleted by Mah. 3 of 1974, s. 5.
Section 21A - De-registration of societies
1[ 21A. De-registration of societies
( 1) If the Registrar is satisfied that any society is registered on mis-representation made
by applicants, or where the work of the society is completed or exhausted or the purposes
for which the society has been registered are not served, he may, after giving an
opportunity of being heard to the Chief Promoter, the committee and the members of the
society, de-register the society:
Provided that, where the number of members of the society is so large and it is not
possible to ascertain the correct addresses of all such members from the records in the
office of the Registrar and, in the opinion of the Registrar it is not practicable to serve a
notice of hearing on each such individual member, a public notice of the proceedings of
the de-registration shall be given in the prescribed manner and such notice shall be
deemed to be notice to all the members of the society including the Chief Promoter and
the members of the Committee of the Society, and no proceeding in respect of the deregistration
of the society shall be called in question in any Court merely on the ground
that individual notice is not served on any such member.
( 2) When a society is de-registered under the provisions of sub-section ( 1), the Registrar
may, notwithstanding anything contained in this Act or any other law for the time being
in force, make such incidental and consequential orders including appointment of Official
Assignee as the circumstances may require.
( 3) Subject to the rules made under this Act, the Official Assignee shall realise the assets
and liquidate the liabilities within a period of one year from the date he takes over the
charge of property, assets, books, records, and other documents, which period may, at the
discretion of the Registrar, be extended from time to time, so however, that the total
period does not exceed three years in the aggregate.
( 4) The Official Assignee shall be paid such remuneration and allowances as may be
prescribed; and he shall not be entitled to any remuneration whatever beyond the
prescribed remuneration or allowances.
( 5) The powers of the Registrar under sub-sections ( 1) and ( 2) shall not be exercised by
any2[officer below the rank of a Joint Registrar of Co-operative Societies.]
Footnote:
1 . Section 21 -A was inserted by Mah. 20 of 1986, s. 11.
2. These words were sub stituted for the portion beginning with the word "person" and
ending with the word and figure "section 3 " by Mah. 10 of 1988, s. 6.
Chapter: III - MEMBERS AND THEIR RIGHTS AND LIABILITIES
Section 22 - Person who may become member
(1) Subject to the provisions of section24, no person shall be admitted as a member of a
society except the following, that is tosay--
(a)an individual, who is competent to contract under the Indian Contract Act, 1872;
(b)a firm, company or any other body corporate constituted under any law for the time
beingin force, or a society registered under the societies Registration Act, 1860;
(c)a society registered, or deemed to be registered, under this Act;
1 [(d) the State Government or the CentralGovernment;]
(e) a localauthority;
(f) asopublic trust registered under any law for the time being in force for theregistration
of such trusts;
Providedthat, the provisions of clause (a) shall not apply to an individual seeking
admission toa society exclusively formed for the benefit of students of a school orcollege:
Providedfurther that, subjectto such terms and conditions as may be laid down by the
State Government bygeneral or special order, a firm or company may be admitted as
amember only of society which is afederal or urban society or which conducts or intends
to conduct an industrialundertaking:
Providedalso that, any firm or company, which is immediately before the commencement
ofthis Act, a memberof a society deemed to be registered under this Act,shall
have,subject to theother provisions of this Act, theright to continue to be such member on
and after such commencement.
Explanation.--Forthe purpose of this section "an urban society"means a society the
business of whichmainly falls within the limits of a municipal corporation, municipality,
cantonment or notified areacommittee.
2 [(1A) Notwithstanding anything contained insub-section (1), theState Government may,
having regard to the fact that the interest of any personor class of persons conflicts or is
likely to conflict with the objects of anysociety or class or societies, by general or
specialorder, published in the Official Gazette, declare that anyperson or class of persons
engaged in or carrying on any profession, businessor employment shallbe disqualified
from being admitted, or for continuing, asmembers orshall be eligible formembership
only to a limited extent ofany specified society or class of societies, so long as such
person or personsare engaged in or carry on that profession, business or employment 3 [as
the case may be; and the question whether aperson is or is not so engaged in or carrying
on any profession, business oremployment or whether a person belongs or does not
belong to such class ofpersons as declared under this sub-section and has or has not
incurred adisqualification under this sub-section shall be decided by the Registrar under
section11].
4 [(1B) Notwithstanding anything contained insub-section (1), where the Registrar has
decided under section11 that a person has incurred a disqualificationunder subsection(
1A), the Registrar or the person not below the rank ofDistrict Deputy Registrar of
Co-operative Societies, authorised byhim in this behalf, may, byorder, remove such
person from themembership of the society; and suchperson shallcease to be a memberof
the society on expiration of a period of one month from the date of receiptof such orderby
him.]
(2) Where a person is refused admission as amember of a society, the decision(with the
reasons therefor) shall be communicated to that person within fifteendays of the date of
the decision, or within three months 5 [from the date of receipt of the application
foradmission, whichever is earlier. If the society does not communicate any decisionto
the applicant within three months from the date of receipt of suchapplication the
applicant shall be deemed to have been6 [admitted] as a member of the society.] 7 [If any
question arises whether a person has becomea deemed memberor otherwise, the
sameshall be decided by the Registrarafter giving a reasonable opportunity of being heard
to all the concernedparties.]
Footnote:
1. Clause (d) wassubstitutedfor the original by Mah. 27 of 1969, s. 7(a).
2.Sub-section (1A)was inserted,by Mah. 27 of 1969, s. 7(b).
3. This portion wassubstitutedfor the words "as the case may be" by Mah. 20 of 1986, s.
12(a).
4.Sub-section 1B was inserted, by Mah. 20 of 1986 s. 12(b).
5. These words weresubstitutedfor the words "from the date of the application for
admission,--whichever,is earlier", by Mah. 27 of 1969, s. 7(c).
6. This word wassubstitutedfor the words "refused admission", by Mah. 20 of 1986,s.
12(c).
7. These words wereadded by Mah. 7 of 1997, s. 3.
Section 23 - Open membership
( 1) No society sh all, without sufficient cause, refuse admission to membership to any
person duly qualified therefor under the provisions of this Act and its by-laws.
1[(1A) Where a society refuse to accept the application from an eligible person for
admission as a member, or the payment made by him in respect of membership, such
person may tender an application in such form as may be prescribed together with
payment in respect of membership, if any, to the Registrar, who shall forward the
application and the amount, if any so paid, to the society concerned within thirty days
from the date of receipt of such application and the amount; and thereupon if the society
fails to communicate any decision to the applicant within sixty days from the date of
receipt of such application and the amount by the society, the applicant shall be deemed
to have become a member of such society.]2[If any question arises whether a person has
become a deemed member or otherwise, the same shall be decided by the Registrar after
giving a reasonable opportunity of being heard to all the concerned parties.]
( 2) Any person aggrieved by the decision of a society, refusing him admission to its
membership, may appeal to the Registrar.3[Every such appeal, as far, as possible, be
disposed of by the Registrar within a period of three months from the date of its receipt:
Provided that, where such appeal is not so disposed of within the said period of three
months, the Registrar shall record the reasons for the delay.]
( 3) The decision of the Registrar in appeal, shall be final and the Registrar shall
communicate his decision to the parties within fifteen days from the date thereof.
4[( 4) Without prejudice to the foregoing provisions of this section, in the case of agroprocessing
societies or any other society for which a definite zone or an area of operation
is allotted by the State Government or the Registrar, it shall be obligatory on the part of
such society to admit, on an application made to it, every eligible person from that zone
or the area of operation, as the case may be, as a member of such society, unless such
person is already registered as a member of any other such society, in the same zone or
the area of operation.]
Footnote:
1 . Sub -section ( 1A) was inserted by Mah. 20 of 1986, s. 13(a).
2. These words were added by Mah. 7 of 1997, s. 3.
3. This portion was added, by Mah. 20 of 1986, s. 13(a).
4. Sub -section 4 was added, by Mah. 20 of 1986, s. 13(c).
Section 24 - Nominal, associate and sympathiser member
(1) Notwithstanding anything contained in section 22, a society may admit any person as
a nominal, associate or sympathiser member.
(2) A nominal member or sympathiser member shall not be entitled to any share in any
form whatsoever in the profits or assets of the society as such member. A nominal or
sympathiser member shall ordinarily not have any of the privileges and rights of a
member, but such a member, or an associate member, may, subject to the provisions of
sub-section (8) of section 27, have such privileges and rights and be subject to such
liabilities of a member, as may be specified in the by-laws of the society.
Section 25 - Cessation of membership
A person shall cease to be a member of a society on his resignation from the membership
thereof being accepted, or on the transfer of the whole of his share or interest in the
society to another member, or on his death, or removal or expulsion1[from the society, or
where a firm, company, any other corporate body, society or trust is a member, on its
dissolution or ceasing to exist.]
Footnote:
1. These words were sub stituted for the words "from the society", by Mah. 20 of 1986, s.
14.
Section 25A - Removal of names of members from membership register
1[ 25A. Removal of names of members from membership register
The committee of a society shall remove from the register of its members the name of a
person who has ceased to be a member or who stands disqualified by or under the
provisions of this Act for being the member or continuing to be the member of a society:
Provided that, if the society does not comply with the requirement of this section, the
Registrar shall direct such society to remove the name of such person, and the society
shall be bound to comply with such direction.
Footnote:
1 . Section 25 A was inserted, by Mah. 20 of 1986, s. 5.
Section 26 - No rights of membership to be exercised till due payments are made
No person shall exercise the rights of a member of a society, until he has made such
payment to the society in respect of membership, or acquired such interest in the society,
as may be prescribed by the rules, or the by-laws of such society.
Section 27 - Voting powers of members
1 [(1) Save as otherwise provided in sub-section (2) to (7), both inclusive, no member of
any society shall have more than one vote in its affairs; andevery right to vote shall be
exercised personally and not by proxy:
Providedthat, in the case of an equality of votes the Chairmanshall have a casting vote;]
(2) Where a share of a society is held jointly by more than oneperson, 2 [theperson whose
name stands first in the share certificate, if present,shall have the right to vote. But in his
absence the person whose name stands second, andin the absence of both, the person
whose name stands next, and likewise, in theabsence of the preceding persons the person
whose name is next on theshare certificate, who is present andwho is not a minor, shall
have the right to vote.]
3 [(3) A society which has invested any part of itsfunds in the sharesof any federal
society, may appoint one of its members to vote on its behalf in the affairs of thatfederal
society; and accordingly such member shall have the right to vote on behalf of thesociety;
Provided that, any newmembersociety of a federal society shall be eligible to votein the
affairs of that federal society only after the completion of the periodof three years from
the date of its investing any part of its fund in theshares ofsuch federal society:
4 [* * *]
(3A) An individual member of a society shall not be eligible for voting in the affairs
ofthat society for a period of two years from the date ofhis enrollment as amember of
such society.]
(4) A company or any other body corporate constituted under any law for the time
beingin force which has invested any part of its funds in theshares of a society may
appoint anyone of its directors or officers to vote on its behalf in the affairs of such
society;and accordingly such director or officer shall have the right to vote on behalf of
the companyor body corporate.
(5) Where a firm has invested any part of its fundsin the sharesof a society, any one of its
partners 5 [appointed by the firm]shall be entitled to vote in theaffairs of the society on
behalf of the firm.
(6) A local authority or public trust which hasinvested any part of its funds in the shares
of a society, may appoint any of itsmembers or trustees, to vote on itsbehalf in the affairs
of that society; and accordingly such personsshall have the right to vote on behalfof the
local authority or the public trust, as the case may be.
(7) In the case of a federal society, the votingrights of individual members thereof shall
be such as may be regulated by the rules made under this Act andby the bye-laws of the
society.
(8) No nominal 6 [* *] or sympathiser membershall havethe right to vote 7 [and no such
membershall beeligible to be a member of a committee or for appointment as
arepresentative of the society on any other society].
8 [(9) No nominee of theGovernment or of any financing bank on the committee of any
societyshall beentitled to vote at any election of officers of such committee such as,
thePresident, Vice-President, Chairman, Vice-Chairman, Secretary, Treasurer or
anyotherofficer by whatsoever designation called, who holds the office by virtue ofhis
electionto that office.]
9 [(10) In the caseof an agricultural credit society, if a member has taken a loanfrom the
society, such member shall, whenever he is adefaulter in paying two or more consecutive
instalments towards repayment ofthe loan on the due dates, have no right to vote in the
affairs of the society:
Provided that, a membershall not bedeemed to be a defaulter if he has discharged his
obligation to deliverhismarketable produce to the marketing or processing society and the
value of suchproduce is not less than theamount of his dues, even if the actual settlement
ofhis dues,either in whole or in part, takes place at a later stage.
(11) Theagricultural credit society may issue suitable orders for the purpose ofcarrying
out the provisions of sub-section (10).]
Footnote:
1.Sub-section(I) wassubstituted for the original byMah. 45of 1983,s. 2(a).
2.These words weresubstituted for the words,"only the person whose name stands first in
theshare certificate,shall have the right to vote, byMah. 27of 1969,s. 8(b).
3.Sub-section(3)wassubstituted by Mah. 41of 2000,s. 2,(w.e.f.23-8-2000).
4.Sub-section(3)wassubstituted by Mah. 41of 2000.Subsequently the second
provisotosub-section (3)wassubstituted by Mah.Ord.No.12of 2001w.e.f.23-4-
2001.Butthisordinance lapsed as it was notconverted into an Act.
5.These words were inserted by Mah. 33of 1963,s. 5.
6.The word "associate" was deleted by Mah. 27of 1969,s. 8(c).
7.These words were added, by Mah. 27of 1969,s. 8(c).
8.Sub-section(9)wassubstituted by Mah. 7of 1997,s. 5.
9.Sub-sections(10)and (11)were added by Mah. 3of 1974,s. 6.
Section 28 - Restrictions on holding of shares
In any society, 1 [nomember,other thanthe Government, or any other society, or with
theprevious sanction of the State Government, a Zilla Parishad constituted underthe
Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961,shall--]
(a)hold more than such portion of the total share capital of the society (in no case
exceedingone-fifth thereof) as may be prescribed, or
(b)have or claim any interest in the shares of the society exceeding 2 [twenty thousand
rupees]:
Providedthat the State Government may, by notification in the Official Gazette, specify in
respect of any class of societies ahigher or lower maximum than one-fifthof the
sharecapital or, as the case may be, a higher or lower amount than 2 [twenty thousand
rupees].
Footnote:
1. This portion wassubstitutedfor the words "no member other than the State
Governmentor any other society, shall--" by Mah. 27 of 1969, s. 9.
2. These words weresubstitutedfor the words "five thousand rupees" by Mah. 20 of 1986,
s. 16.
Section 29 - Restrictions on transfer or charge of share or interest
(1) Subject to the provisions of the last precedingsection as to the maximum holding of
shares and to any rules made in this behalf, atransfer of, or charge on, the share or interest
of a member in the share capital of a societyshall be subject to such conditions as may be
prescribed.
(2) A member shall not transfer any share held by him or his interest in the capital or
property of anysociety, or any part thereof, unless--
(a)he has held such shareor interest for not less than one year;
(b)the transfer is made to a member of the society or to a person whoseapplication for
membershiphas been accepted 1 [by the society, or to a person whose appeal under
section23 of the Act has been allowed by the Registrar; orto a person who is deemed to
be a member under sub-section (1A) of-section 23.].
(3) Notwithstanding anything contained insub-sections (1) and (2), where a member is
allowed to resign, or is expelled, orceases to be a memberon account of hisbeing
disqualified by this Act or by the rules made thereunder or by theby-laws of the society,
the society may acquire theshare or interest of suchmember in theshare capital by paying
for it at thevalue determined in the manner prescribed provided that the total payment
ofshare capital of a society in anyfinancial year for such purposes does not exceed ten per
cent of the paid-upshare capital of the society on thelast day of the financial year
immediately preceding.
Explanation2 --.[I]--The right to forfeit theshare or interest of any expelledmember in
theshare capital by virtue of any by-lawsof the society, shallnot be affected by the
aforesaid provision.
3 [Explanation II,--Inthis section, the expression "financialyear" means the year ending on
the3 [31st day, of March] or, in the case of any society orclass of societies the accounts of
which are with the previous sanction of theRegistrar balanced on any other day, the year
ending on such day.]
(4) Where the State Government is amember of a society, the restrictionscontained in this
section shall not apply to any transfer made by it of itsshare or interest in the capital ofthe
society; and that Government may, notwithstanding anything in this Act,withdraw from
the society its share capital at any time, after giving to thesociety notice thereof of not
less than three months.
Footnote:
1. This portion wassubstitutedfor the words "by the society", by Mah. 20 of 1986, s. 17.
2. The Explanation was renumbered as Explanation I and Explanation II wasadded by
Mah. 33 of 1963, s. 6.
3. This portion wassubstitutedfor the letters, figures and words "30th June" by Mah. 13 of
1994, s. 3.
Section 30 - Transfer of interest on death of member
(1) On the death of a member of a society, the society shall transfer the share or interest
of the deceased member to a person or persons nominated in accordance with the rules,
or, if no person has been so nominated to such person as may appear to the committee to
be the heir or legal representative of the deceased member.
Provided that, such nominee, heir or legal representative, as the case may be, is duly
admitted as a member of the society:
Provided further that, nothing in this sub-section or in section 22 shall prevent a minor or
a person of unsound mind from acquiring by inheritance or otherwise, any share or
interest of a deceased member in a society.
(2) Notwithstanding anything contained in sub-section (1), any such nominee, heir or
legal representative, as the case may be, may require the society to pay to him the value
of the share or interest of the deceased members, ascertained in accordance with the rules.
(3) A society may pay all other moneys due to the deceased member from the society to
such nominee, heir or legal representative, as the case may be.
(4) All transfers and payments duly made by a 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 31 - Share or interest not liable to attachment
The share or interest of a member in the capital of a society, or in the loan-stock issued
by a housing society, or in the funds raised by a society from its members by way of
savings deposit, shall not be liable to attachment or sale under any decree or order of a
Court for or in respect of any debt or liability incurred by the member; and accordingly,
neither the Official Assignee under the presidency-towns Insolvency Act, 1909, nor a
Receiver under the Provincial Insolvency Act, 1920, nor any such person or authority
under any corresponding law for the time being in force, shall be entitled to, or have any
claim on, such share or interest.
Section 32 - Rights of members to see books, etc.
(1) Every member of a society shall be entitled to inspect, free of cost, at the society's
office during office hours, or any time fixed for the purpose by the society, a copy of the
Act, the rules and the by-laws, the last audited annual balance sheet, the profit and loss
account, a list of the members of the committee a register of members, the minutes of
general meeting, minutes of committee meetings and those portions of the books and
records in which his transactions with the society have been recorded.
(2) A society shall furnish to a member, on request in writing and on payment of such
fees as may be prescribed therefor, a copy of any of the documents mentioned in the
foregoing sub-section within one month from the date of payment of such fees.
See Rules 27 & 30.
Section 32A - Certain societies to give pass books to members and entries in such
book evidence of amount due
1[ 32A. Certain societies to give pass books to members and entries in such book
evidence of amount due
( 1) A society which gives loans to its members2[or a society or class of societies which
the State Government may notify in the Official Gazette, from time to time,] shall furnish
each member with a pass book, which shall contain an account of the transaction with the
member, such as, the date of the transaction, the amount of loan advanced, the rate of
interest, the repayment made by the member, the amount of the principal and interest due,
and such other particulars as may be prescribed. The necessary entries shall be made in
the pass book, from time to time, which shall be countersigned by such office-bearer of
the society as may be authorised in this behalf by the committee. For this purpose,3[the
member] shall be bound to present the pass book to such office-bearer, and if the pass
book is required to be kept for some time for making the necessary entries, the member
shall be granted a receipt therefor, by such office-bearer.
( 2) The entries in the pass book duly made shall, until the contrary be proved, be prima
facie evidence of the account of transactions of the society with the member.
Footnote:
1. Section 32 A was inserted by Mah. 3 of 1974, s. 7
2. These words were inserted by Mah. 20 of 1986, s. 18(a).
3. These words were sub stituted for the words "the depositor", by Mah. 20 of 1986,
18(b).
Section 33 - 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 society for the debts of the society as they stood,--
(a) in the case of a past member, on the date on which he ceased to be a member and
(b) in the case of a deceased member, on the date of his death, shall continue for a period
of two years from such date.
(2) Where a society is ordered to be wound up under any provision" of this Act the
liability of a past member or of the estate of a deceased member, who ceased to be a
member or died, within two years immediately preceding the date of the order of winding
up, shall continue until the entire liquidation proceedings are completed; but such liability
shall extend only to the debts of the society as they stood on the date of his ceasing to be
a member or death, as the case may be.
Section 34 - Insolvency of members
Notwithstanding anything contained in the Presidency-towns Insolvency Act, 1909, the
Provincial Insolvency Act, 1920, or any corresponding law for the time being in force,
the dues of a society from a member, in insolvency proceedings against him, shall rank in
order of priority next to the dues payable by him to Government or to a local authority.
Section 35 - Expulsion of members
( 1) A society may, by resolution passed1[by a majority of not less than three-fourths] of
the members entitled to vote who are present at a general meeting held for the purpose
expel a member for acts which are detrimental to the interest or proper working of the
society:
Provided that, no resolution shall be valid, unless the member concerned is given
opportunity of representing his case to the general body, and no resolution shall be
effective unless it is approved by the Registrar.
( 2) No member of a society who has been expelled under the foregoing sub-section shall
be eligible for re-admission as a member of that society, or for admission as a member of
any other society, for a period of one year from the date of such expulsion:
Provided that, the Registrar may, on an application by the society and in special
circumstances, sanction the re-admission or admission, within the said period, of any
such member as a member of the said society or of any other society, as the case may be.
Footnote:
1. These words were sub stituted for the words "by three-fourths maj ority" by Mah. 33 of
1963, s. 7.
Chapter: IV - INCORPORATION DUTIES AND PRIVILEGES OF SOCIETIES
Section 36 - Societies to be bodies corporate
The registration of a society shall render it a body corporate by the name under which it
is registered, with perpetual succession and a common seal, and with power to acquit,
hold and dispose of property, to enter into contracts, to institute and defend suits and
other legal proceedings and to do all such things as are necessary for the purpose for
which it is constituted.
Section 37 - Address of societies
Every society shall have an address, registered in accordance with the rules, to which all
notices and communications may be sent; and the society shall send notice in writing to
the Registrar of any change in the said address, within thirty days thereof.
Section 38 - Register of members
(1) Every society shall keep a register of its members and enter therein the following
particulars, that is to say,--
(a) the name, address and occupation of each member;
(b) in the case of a society having share capital, the share held by each member;
(c) the date on which each person was admitted a member;
(d) the date on which any person ceased to be a member; and
(e) such other particulars as may be prescribed:
Provided that, where a society has by or under this Act, permitted a member to transfer
his share or interest on death to any person, the register shall also show against the
member concerned the name of the person entitled to the share or interest of the member,
and the date on which the nomination was recorded.
(2) The register shall be prima facie evidence of the date on which any person was
admitted to membership, and of the date on which he ceased to be a member.
Section 39 - Copy of Act, etc. to be open to inspection
Every society shall keep, at the registered address of the society, a copy of this Act and
the rules and of its by-laws, and a list of members, open to inspection to the public, free
of charge, during office hours or any hours fixed by the society therefor.
Section 40 - Admissibility of copy of entry or evidence
(1) A copy of any entry in any book, register or list, regularly kept in the course of
business and in the possession of a society, shall, if duly certified in such manner as may
be prescribed, be admissible in evidence of the existence of the entry, and shall be
admitted as evidence of the matters and transactions therein recorded in every case
where, and to the same extent to which, the original entry would, if produced, have been
admissible to prove such matters.
(2) In the case of such societies, as the State Government may by general or special order
direct, no officer of a society shall in any legal proceedings to which the society is not a
party, be compelled to produce any of the society's books, the contents of which can be
proved under the foregoing sub-section, or to appear as a witness to prove the matters,
transactions and accounts therein recorded, unless by order of the Court or a Judge made
for special cause.
Section 41 - Exemption from compulsory registration of instruments relating to
shares and debentures of societies
Nothing in clauses (b) and (c) of sub-section (I) of section 17 of the Indian Registration
Act, 1908, shall apply--
(a) to any instrument relating to shares in a society, notwithstanding that the assets of the
society consist in whole or in part of immovable property; or
(b) to any debentures issued by any society and not creating, declaring, assigning,
limiting or extinguishing any right, title or interest to or in immovable property, except in
so far as it entitles the holder to the security afforded by a registered 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
holders of such debentures; or
(c) to any endorsement upon, or transfer of, any debentures issued by any society.
Section 42 - Power to exempt from taxation power to refund
42. Power to exempt from taxation1 [power to refund]
2 [(1)] The State Government, by notification in the Official Gazette may, in the case
ofany society or class of societies, 3 [reduce or remit, whether prospectively
orretrospectively, in the whole of the State or any part thereof)--
(a)the stamp duty with which, under any law relating to stamp duty for the timebeing in
force, instruments executed by or on behalf of a society or by anofficer or memberthereof
and relating to the business of the society, or any class of suchinstruments, or awards of
the Registrar 4 [or Co-operative Court] under this Act, arerespectively chargeable,
(b)any fee payable by or on behalf of a society under the law relating to theregistration of
documents and to court-fees, for the time being in force, and
(c)any othertax or fee or duty (or any portion thereof) payable by or on behalf of a
societyunder any law for the time being in force,
whichthe State Government is competent to levy.
5 [(2) The State Governmentmay refund the amount of any tax, fee or duty paid in
pursuance of any lawreferred to in sub-section (1) in suchcircumstances, to such extent
and subject to such terms andconditions, if any, as the State Government may
byorderdetermine.]
Footnote:
1. These words were addedby Mah. 40 of 1972, s. 2(3).
2. Section 42 was renumbered assub-section (1)andsub-section (2)was added byMah. 40
of 1972, s. 2(1) and (2).
3. These words weresubstitutedfor "remit", by Mah. 20 of 1986, s. 2(1).
4. These words weresubstitutedfor the words "or his nominee or board of nominees" by
Mah. 3 of 1974, s. 8.
5. Section 42 was renumbered assub-section (1)andsub-section (2) was added by Mah, 40
of 1972, s. 2(1) and (2).
Section 43 - Restrictions on borrowings
1[(1)] A society sh all receive deposits and loans from me mbers and other persons, only
to such extent, and under such conditions, as may be prescribed, or specified by the bylaws
of the society.
1[( 2) If in the opinion of the Registrar it is necessary so to do for ensuring safety of the
funds obtained under sub -section ( 1), for proper utilisation of such funds in furtherance
of the objects of the society or societies concerned and for keeping them within the
borrowing limits as laid down in the rules and by-laws, the Registrar may, by general or
special ord er, impose additional conditions on any society or class of societies, sub ject
to which and the extent up to which such society or such class or societies may receive
deposits, issue debentures or raise loans from any creditor other than a Central Bank.]
2[Provided that, nothing in this sub -section sh all apply to a society which has not taken
any financial assistance from the Government in the form of sh are capital, loan or
guarantee and such society may, adopt its own borrowing policy having regard to its
financial position. However, such society shall send to the Registrar, in writing, full
details about its borrowing policy, and change, if any introduced in such policy at any
time.]
Footnote:
1 . Section 43 was renumbered as sub -section ( 1) and sub -section ( 2) was added by
Mah. 33 of 1963, s. 8.
2. This proviso was added by Mah. 34 of 2001, (w.e.f. 7 - 9 - 2001) s. 4.
Section 44 - Regulation of loan making policy
( 1) No society sh all make a loan to any person other than a me mber, or on the security
of its own sh ares, or on the security of any person who is not a member:
Provided that, with the special sanction of the Registrar, a society may make loans to
another society.
( 2) Notwithstanding anything contained in the foregoing sub -section, a society may
make a loan to a depositor on the security of his deposit.
( 3) If in the opinion of the State Government, it is necessary in the interest of the society
or societies concerned to do so, the State Government may, by general or special order,
prohibit, restrict or regulate the lending of money by any society or class of societies on
the security of any property:
1[Provided that, the Registrar may, for ensuring safety of the funds of the society or
societies concerned, for proper utilisation of such funds in furtherance of their objects and
for keeping them within the loan making limits laid down in the rules and bye-laws, with
the approval of the Apex Bank, by general or special order, regulate further the extent,
conditions and manner of making loans by any societies to its members or other
societies.].
Footnote:
1. This proviso was added, by Mah. 33 of 1963, s. 9.
Section 44A - Limit on interest in certain cases
1 [44A. Limit on interest in certain cases
Notwithstandinganything contained in any agreement or any law for the time being in
force, asociety (including a co-operative bank but excluding 2 [an Agriculture and Rural
DevelopmentBank] shall not for any loan (including rehabilitation loanbut excluding
long-term loan for irrigation or agricultural developmentpurposes or loan exceeding
rupees three thousand for non-agricultural orcommercial purposes) given by it to any
member (including a member-society) for a period not exceeding15 years, whether the
loan was given before or isgiven after the commencement of the Maharashtra Cooperative
Societies (SecondAmendment) Act, 1985,recover, in any manner whatsoever,
on account of interest, a sum greater thanthe amount of the principal of the loan.]
Footnote:
1. Section 44A wassubstitutedby Mah. 20 of 1986 s. 19.
2.Substitutedby Mah. 10 of 1988, s.8
Section 45 - Restrictions on other transactions with non members
Save as is provided in this Act, the transactions of a society with persons other than
members, shall be subject to such restrictions, if any, as may be prescribed.
Section 46 - Charge and set-off in respect of share or interest of members
A 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
profits payable to any such member, in respect of any debt due from such member or his
estate to the society; and the society may set-off any sum credited or payable to such
member in or towards payment of any such debt:
Provided that, no co-operative bank shall have a charge upon any sum invested with it by
a society out of the provident fund established by it under section 71, or its reserve fund;
and no co-operative bank shall be entitled to set off any such sum towards any debts due
from the society.
Section 47 - Prior claim of society
(1) Notwithstanding anything in any other law for the time being in force, but subject to
any prior claim of Government in respect of land revenue or any money recoverable as
land revenue and to the provisions of sections 60 and 61 of the Code of Civil Procedure,
1908.
(a) any debt or outstanding demand, owing to a society by any member or past member
or deceased member, shall be a first charge,--
(i) upon the crops or other agricultural produce raised in whole or in part whether with or
without a loan taken from the society by such member or past member or deceased
member,--
(ii) upon any cattle, fodder for cattle, agricultural or industrial implements or machinery,
or raw materials for manufacture, or workshop, godown or place of business supplied, to
or purchased by such member or past member or deceased member, in whole or in part,
from any loan whether in money or goods made to him by the society, and
(iii) upon any movable property which may have been hypothecated, pledged or
otherwise mortgaged by a member with the society, and remaining in his custody;
(b) any outstanding demands or dues payable to a society by any member or past member
or deceased member, in respect of rent, shares, loans or purchase money or any other
rights or amounts payable to such society, shall be a first charge upon his interest in the
immovable property of the society,
Explanation.--The prior claim of Government in respect of dues other than land revenue,
shall be restricted for the purpose of sub-section (1) to the assets created by a member out
of the funds in respect of which the Government has a claim.
(2) No property or interest in property, which is subject to a charge under the foregoing
sub-section, shall be transferred in any manner without the previous permission of the
society; and such transfer shall be subject to such conditions, if any, as the society may
impose.
(3) Any transfer made in contravention of sub-section (2) shall be void.
(4) Notwithstanding anything contained in sub-sections (2) and (3), a society, which has
as one of its objects the disposal of the produce of its members, may provide in its
bylaws, or may otherwise contract with its members,--
(a) that every such member shall dispose of his produce through the society, and
(b) that any member, who is found guilty of a breach of the by-laws or of any such
contract, shall reimburse the society for any loss, determined in such manner as may be
specified in the by-laws.
Section 48 - Charge on immovable property of members borrowing from certain
societies
Notwithstanding anything contained in this Act orin any other law for the time being in
force,--
(a) any person who makes an application to asociety of which he is a member, for a
loanshall, if heowns any land or has interest in any land as a tenant, make a declaration
inthe form prescribed. Such declaration shall state that theapplicant thereby creates a
charge on such land or interest specified in thedeclaration for the payment of the amount
of the loan which the society maymake to the member in pursuance of the application,
and for allfuture advances (if any) required by him which the society maymake to him
such member,subject tosuch maximum as may be determined bythe society, together with
interest on such amount of the loan and advances;
(b)any person who has taken a loan from a society of which he is amember, before the
date of the cominginto force of this Act, and who owns any land or has interest in land as
atenant, and who has not already made such a declaration before the aforesaiddate
shall,as soon as possible thereafter, make a declaration in the form and to theeffect
referred to in clause (a); and no such personshall, unless and until he has madesuch
declaration, be entitled to exercise any right, as amember of the society;
(c)a declaration made under clause (a) or (b) may be varied at any time by amember, with
the consent of thesociety in favour of which such charge is created;
(d)no membershall alienate the whole or any partof the land or interest therein, specified
in the declaration made under clause(a) or (b) until the whole amount borrowed by the
member together with interest thereon, is repaid infull:
Providedthat, it shallbe lawful to a memberto execute a mortgage bond 1[ in respect of
such land or any part thereof infavour of 2 [anagriculture and Rural Development Bank or
of the State Government] under theBombay Canal Rules made under theBombay
Irrigation Act,18793 or under any corresponding law for the time beingin force for the
supply of water from a canal to such land, or to any partthereof:
Providedfurther that, if a part of the amount borrowed by amember is paid 4 [the society
with the approval of the CentralBank to which it may be indebted] may, on anapplication
from the member, release from the charge created under the declaration made
underclause (a) or (b), such part ofthe movable or immovable property specified in the
said declaration, as it maydeem proper, with due regard to the security of the balance of
the amountremaining outstanding from the member;
(e) anyalienation made in contravention of the provisions of clause (d)shall be void;
(f) 5 [Subject to all claims of the Government in respectof land revenue or any money
recoverable as land revenue, and all claims of the 6 [Agriculture and RurlaDevelopment
Bank]in respect of its dues, in either case whether prior in time orsubsequent,] and to the
charge (ifany) created under an award made under the Bombay Agricultural Debtors
Relife Act,1947 or any corresponding law for the time being inforce in any part of the
State, there shall be a first charge in favour of the society onthe land or interest specified
in the declaration made under clause (a) or (b),for and to extent of the dues owing 7 [by
the member] on account of the loan.
(g) and inparticular, notwithstanding anything contained in 8 [Chapter X of the
Maharashtra Land Revenue Code,1966], the Record of Rights maintained thereundershall
also include the particulars ofevery charge on land or interest created under a declaration
under clause (a)or (b), 9 [andalso the particulars of extinction of such charge.]
Explanation.--Forthe purposes of this section, the expression "society"means--
(i)any resource society, the majority of the members of which are agriculturists and the
primaryobject of which is to obtain credit for its members, or
(ii)any society, or any society of the class of societies, specified in this behalfby the State
Government, by a general or special order.
Footnote:
1. These words weresubstitutedfor the words "in favour of a mortgage bank or the State
Government inrespect of such land or any part thereof," by Mah. 33 of 1963, s. 10(a)(i).
2. These words weresubstitutedfor the words "a Land Development Bank" by Mah. 10 of
1988, s. 9(a).
3.See now Maharashtra Irrigation Act, 1976 (Mah. 38 of 1976).
4. These words weresubstitutedfor the words "the Central Financing Agency", by Mah.
33 of 1963,s. 10(a)(ii).
5. These words weresubstitutedfor the portion beginning with "subject to" and ending
with "inrespect of its dues." by Mah. 12 of 1966, s. 2(a).
6. These words weresubstitutedfor the words "Land Development Bank" by Mah. 10 of
1988, s. 9(b).
7. These words weresubstitutedfor the words "by him", byMah. 12 of 1966, s. 2(b).
8. These words and figureswere substituted for the words, figures and letter,"Chapter XA
of the Bombay Land Revenue Code, 1879 or any corresponding lawfor the time being
in force," by Mah. 20 of 1986, s. 20(a).
9. These words were added,by Mah. 20 of 1986, s. 20(b).
Section 48A - Deductions from sale price of certain agricultural produce to meet
society's dues
1 [48A. Deductions from sale price of certainagricultural produce to meet society's
dues
(I)2 [Where a loan has beenadvanced by any society in accordance with the last preceding
section for thegrowing of any agricultural produce, or has been advanced by any other
society which is 3 [an Agriculture and Rural DevelopmentBank] for any of the purposes
enumerated in clause(a) of section 111and if in either case any agricultural produce is
tendered by the person whohas taken any such loan] for sale at a collection centre under
section 30A of the Maharashtra Agricultural Produce Marketing(Regulation) Act, 1963,
on any day then the price agreed to be paid thereofshall be paid by the purchaser to
thetenderer after deducting the dues of 4 [the societies mentioned] aforesaid 5 [* * * * *]
and the amount so deductedshall be paid to the Market Committeeconstituted under that
Act as provided in that section. On making payment tothe tenderer and the Market
Committee in the manner provided in theaforementioned section 30A the purchaser shall
be discharged of his liability to pay the price to thetenderer.
6 [The amount of thededuction on account of loans advanced by societiesshall 7 [be made
at such rate asmay be notified by the State Government in this behalf by general or
specialorder, so,however, that such rate shall] not in the aggregateexceed the following
percentage of the total amount to be paid by the purchaseras the price, namely:--
(i) if the produce tendered for sale is sugarcane 100 %
(ii) if the produce tendered for sale is 8 [cotton] 60 %
(iii) in any other case 40 %].
(2) The MarketCommittee on receiving the amount from the purchasershallarrange to pay
9 [to the societies concerned] the amount of duesfrom the tenderer within a reasonable
time to be prescribed for the purpose. Ifthe Market Committee does not pay such dues
within 8 days, after therealisation of the cheque the Market Committee shall be liable to
payinterest on such dues 6 [to the societies concerned] at a rate prescribedin this behalf,
such rate not being in excess of the maximum rate of interestfixed for unsecured loans
under the Bombay Money- lenders Act,1946.]
10 [(3) Where any such purchasesis the State Government or an agent or officer appointed
by that Government, oris a processing factory notified by the State Government in this
behalf bygeneral or special order or an agent or officer appointed by suchfactory, the
purchaser shall pay the price to the tenderer after deductingthe dues of the societies
mentioned aforesaid and paythe amount so deducted on behalf of the tenderer to the
concerned societiesdirect:
Provided that, where loans have been taken by thetenderer from more than one society,
the purchaser may, keeping in view theextent of the dues, on account of financing of crop
or seasonal finance orfinance for other agricultural purposes, repayable during a periodof
not less than eighteen months and not more than five years and the extent ofthe dues of
any 11 [Agriculture and Rural Land Development Bank] andsubject tosuch directions (if
any) as may be issued by the State Government from time totime determine the
proportion in which the amount of deduction madeshall beapportioned between the
different lending societies.]
12 [Explanation.--For the purpose of thissection, "purchaser" shall include any personwho
pays the purchase price of any agricultural produce tendered for sale, orby whom
payment of such price is made, whether on his own account or as an agent or on behalf
ofanother person.]
Footnote:
1.This section was inserted by Mah. 2of 1972,s. 12.
2.This portion wassubstituted by Mah. 44of 1973s. 2(a)(i).
3.These words weresubstituted for the words "aLand Development Bank"by Mah. 10of
1988,s. 10(a).
4.These words weresubstituted for the words"the co-operative societymentioned", by
Mah. 44of 1973,s. 2(a)(ii)
5.The words "and to the extent hereinafter stated" were deleted by Mah. 50of 1977,s.
3(a)(i).
6.This portion wassubstituted by Mah. 44of 1973,s. 2(a)(iii).
7.These words were inserted by Mah. 50of 1977,s. 3(a)(ii).
8.This word wassubstituted for the word 'kapas',by Mah. 50of 1977,s. 3(a)(ii).
9.These words weresubstituted for the words"to the society", by Mah. 44of 1973,s. 2(b).
10.Sub-section (3)was added, Mah. 44of 1973,s. 2(c).
11.These words weresubstituted were the words"a Land Development Bank"by Mah.
10of 1988,s. 10(b).
12.This Explanation was added by Mah. 50of 1977,s. 3(b).
Section 49 - Deduction from salary to meet Society's claim in certain cases
1 [(1) Amember of asociety may execute an agreement in favour of the society, providing
thathis employershall becompetent to deduct from the or wages payable to him by the
employer, suchtotal amount payable to the society and in such instalments as may be
specifiedin the agreement and to pay to the society the amounts so deducted in
satisfactionof any debt or otherdemand of the society against the member. A copy of such
agreement duly attested by anofficer of the society shall be forwarded by the society to
the employer.].
(2)2 [On receipt of a copy of such agreement], the employershall, if so required by the
societyby a requisition in writing, and so long as the 3 [total amount shown in the copy of
the agreement as payable to thesociety has been deducted and paid to the society,] make
the deduction inaccordance with the agreement and pay the amount so deducted to the
society, asif it were a part of the wages payable by him as required under the Payment of
Wages Act,1936 on the day on which he makes payment.
(3) If after the receipt of a requisition made underthe foregoing sub-section,the employer
at any time fails to deduct the amount specified in therequisition from the salary or wages
payable to themember concerned, or makes default inremitting the amount deducted to
the society, the employershall be personally liable for the 4 (payment of such amount or
where the employer hasmade deductions but the amount so deducted is not remitted to
the society, thensuch amount together with interest thereon at one and half times the rate
ofinterest charged by the society to the member for the period commencing on the date
on whichthe amount was due to be paid to the society and ending on the date of
actuallyremitting it to the society; and such amount together with the interestthereon, if
any, shall,on a certificate issued by the Registrar, be recoverable fromhim as an arrear of
land revenue, andthe amount and interest so due shall rank in priority in respect of such
liabilityof the employer as wages in arrears.]
(4) Nothing contained in this sectionshall apply to persons employed in anyrailways
(within the meaning of the Constitution) and in mines and oil fields.
Footnote:
1.Sub-section(I) was substituted by Mah. 20 of 1986, s.21(a).
2. These words weresubstitutedfor the words "on the execution of such agreement", by
Mah. 20 of 1986, s. 21(b)(i).
3. These words weresubstitutedfor the words "society does not intimate that the whole of
such debt ordemand has been paid", by Mah. 20 of 1986, s. 21(b)(ii).
4. This portion wassubstitutedfor the portion beginning with the words "payment thereof
and ending withthe words "wages in arrears", by Mah. 20 of 1986, s. 21(c).
Chapter: V - STATE AID TO SOCIETIES
Section 50 - Direct partnership of State Government in societies
The State Government may subscribe directly to the share capital of a society with
limited liability, upon such terms and conditions as may be agreed upon.
Section 51 - Indirect partnership of State Government in societies
The State Government may, under appropriation made by law, provide moneys to a
society for the purchase directly or indirectly, of shares in other societies with limited
liability. (A society to which moneys are so provided for the aforesaid purpose is
hereinafter in this Chapter referred to as an "Apex Society".)
Section 52 - Principal State Partnership Fund
(1) An Apex society which is provided with moneys as aforesaid shall with such moneys,
establish a Fund to be called the "Principal State Partnership Fund."
(2) An Apex society shall utilise the Principal State Partnership Fund for the purpose of --
(a) directly purchasing shares in other societies with limited liability;
(b) providing moneys to a society (hereinafter in this Chapter referred to as a "Central
Society".) to purchase shares in other societies with limited liability (the latter societies
being hereinafter in this Chapter referred to as "Primary societies");
(c) making payments to the State Government in accordance with the provisions of this
Chapter;
and for no other purpose.
Section 53 - Subsidiary State Partnership Fund
(1) A Central Society which is provided with moneys by an Apex Society from the
Principal State partnership Funds shall, with such moneys, establish a Fund to be called
the "Subsidiary State Partnership Fund".
(2) A Central society shall utilise the Subsidiary State Partnership Fund for the purpose of
--
(a) purchasing shares in Primary Societies;
(b) making payments to the Apex society in accordance with the provisions of this
Chapter; and for no other purpose.
Section 54 - Approval of State Government for purchase of shares
Shares shall not be purchased in a society from the moneys in the Principal State
Partnership Fund or the Subsidiary State Partnership Fund, except with the previous
approval of the State Government.
Section 55 - Liability to be limited in respect of certain shares
Where any shares are purchased in a society by--
(a) the State Government; or
(b) an Apex society from the Principal State Partnership Fund, or a Central society from
the Subsidiary State Partnership Fund, as the case may be;
the liability in respect of such shares shall, in the event of the society of which the shares
are purchased1[being wound up], be limited to the amount paid in respect of such shares.
Footnote:
1. These words were sub stituted for the words "is wound up", by Mah. 33 of 1963. s. 11.
Section 56 - Restriction on amount of dividend
An Apex society which has purchased shares in other societies from the moneys in the
Principal State Partnership Fund, and a Central society which has purchased shares in
Primary societies from the moneys in the Subsidiary State Partnership Fund, shall be
entitled only to such dividend on the said shares as is declared by the society concerned
and is payable to other shareholders of that society.
Section 57 - Indemnity of Apex and Central societies
(1) If a society in which shares are purchased from the Principal State Partnership Fund is
wound up, or is dissolved, the State Government shall not have any claim against the
Apex society which purchased the shares in respect of any loss arising from such
purchase; but the State Government shall be entitled to any moneys received by the Apex
society in liquidation proceedings or on dissolution, as the case may be.
(2) If a society in which shares are purchased from the Subsidiary State Partnership Fund
is wound up or dissolved, neither the State Government nor the Apex society shall have
any claim against the Central society which purchased the shares in respect of any loss
arising from such purchase; but the Apex society shall be entitled to any moneys received
by the Central society in liquidation proceedings or on dissolution, as the case may be
and such moneys shall be credited to the Principal State Partnership Fund.
Section 58 - Disposal of share capital and dividend, etc.
(1) All moneys received by an Apex society in respect of shares of other societies
purchased from the moneys in the Principal State Partnership Fund on redemption of
such shares, or by way of dividends or otherwise, shall be credited to that fund.
(2) All moneys received by a Central society in respect of shares of Primary societies
purchased from the moneys in the Subsidiary State Partnership Fund on redemption of
such shares, or by way of dividends or otherwise, shall in the first instance be credited to
that Fund, and then transferred to the Apex society which shall credit them to the
Principal State Partnership Fund.
(3) All moneys and dividends referred to in sub-sections (1) and (2) shall,
notwithstanding that the shares stand in the name of the Apex society or the Central
society, as the case may be, be paid to the State Government.
(4) Save as provided in sub-section (3), the State Government shall not be entitled to any
other return on the moneys provided by it to an Apex society under section 51.
Section 59 - Disposal of Principal or Subsidiary State Partnership Fund on winding
up of Apex or Central society
(1) If an Apex society which has established a Principal State Partnership Fund is wound
up or dissolved, all money to the credit of, or payable to that Fund, shall be paid to the
State Government.
(2) If a Central society which has established a Subsidiary State Partnership Fund is
wound up or is dissolved, all moneys to the credit of, or payable to that Fund shall be
paid and credited to the Principal State Partnership Fund from which it received moneys
under clause (b) of sub-section (2) of section 52.
Section 60 - Principal or Subsidiary State Partnership Fund not to form part of
assets
Any amount to the credit of a Principal State Partnership Fund or a Subsidiary State
Partnership Fund shall not form part of the assets of the Apex society or the Central
society, as the case may be.
Section 61 - Agreement by State Government and Apex societies
Subject to the foregoing provisions of this Chapter--
(a) the State Government may enter into an agreement with an Apex society setting out
the terms and conditions on which it shall provide moneys to the Apex society for the
purpose specified in section 51;
(b) an Apex society may, with the previous approval of the State Government, enter into
an agreement with a Central society, setting out the terms and conditions on which it shall
provide moneys to that society from the Principal State Partnership fund for the purpose
specified in clause (b) of sub-section (2) of section 52.
Section 62 - Other forms of State aid to societies
Notwithstanding anything contained in any law for the time being in force, but subject to
such conditions as the State Government by general or special order may specify in this
behalf, the State Government may,--
(a) give loans to a society;
(b) guarantee the payment of the principal of debentures issued by a society, or of interest
thereon, or both or the repayment of the shares capital of a society to its members, or the
payment of dividends thereon at such rates as may be specified by the State Government;
(c) guarantee the repayment of loans given by a Co-operative Bank to a society;
(d) guarantee the repayment of the principal of, and payment of interest on, loans and
advances given by the Reserve Bank of India, or the Industrial Finance Corporation of
India, or any other authority constituted under any law for the time being in force; or
(e) provide financial assistance, in any other form (including subsidies), to a society.
Section 63 - Provisions of this Chapter to override other laws
The provisions of sections 51 to 61 (both inclusive) in this Chapter shall have effect
notwithstanding anything inconsistent therewith contained in any other law for the time
being force.
Chapter: VI - PROPERTY AND FUNDS OF SOCIETIES
Section 64 - Funds not to be divided
No part of the funds, other than1[the dividend equilisation or bonus equalisation funds as
may be prescribed or] the net profits of a society, shall be paid by way of bonus or
dividend, or otherwise distributed among its members:
Provided that, a member may be paid remuneration on such scale as may be laid down by
the bye-laws, for services rendered by him to the society.
Footnote:
1 . These words were inserted by Mah. 33 of 1963, s. 12.
Section 65 - Ascertainment and appropriation of profits
65. 1 [Ascertainment and appropriation of profits]
2 [(1) A society shall construct its relevant annual financialstatements and arrive at its
consequent net profit or loss in the mannerprescribed.]
(2) A society may appropriate 3 [its net profits] to the reserve fund or anyother fund to
payment of dividends tomembers on theirshares 4 [* * * *] to the payment of bonus on
the basis ofsupport received from members and persons who are not members to its
business, to payment ofhonoraria and towards any other purpose which may be specified
in the rules orbye-laws:
Providedthat no part of the profits shall be appropriated except with the approval of
theannual general meetingand in conformity with the Act, rules and bye-laws.
Footnote:
1. This marginal note wassubstituted,by Mah. 20 of 1986, s. 22(b).
2. Sub-section (1) wassubstitutedby Mah. 20 of 1986, s. 22(a).
3. These words weresubstitutedfor the words "its profits" by Mah. 33 of 1963, s. 13(b).
4. The portion beginningwith the words "to the contribution" and ending with the
words"by the State Government" was deleted by Mah. 27 of 1969, 2. 10(b).
Section 66 - Reserve fund
( 1) Every society which does, or can, derive a profit from its transactions shall maintain
a reserve fund.
( 2)1[Every society shall carry at least one-fourth of the net profits each year to the
reserve fund;] and2[such reserve fund may, subject to the rules made in this behalf, if any,
be used] in the business of the society or may, subject to the provisions of section 70, be
invested, as the State Government may by general or special order direct, or may, with
the previous sanction of the State Government, be used in part for some public purpose
likely to promote the objects of this Act, or for some such purpose of the State, or of local
interest:
3[Provided that, the Registrar may, having regard to the financial position of any society
or class of societies, fix the contribution to be made to the reserve fund under this subsection
at a lower rate, but not lower than one-tenth of the net profits of the society or
societies concerned.)
Footnote:
1. These words were sub stituted for the portion beginning with "In the case of and
ending with "to the reserve fund", by Mah. 33 of 1963, s. 14(a).
2. These words were sub stituted for the words "such reserve fund may be used" by Mah.
3 of 1974, s. 10.
3. This proviso was added by Mah. 33 of 1963, s. 14(b).
Section 67 - Restrictions on dividend
1 [67. Restrictions on dividend
Nosociety shallpay divided to its members at a rate exceeding 2 [15 per cent except with
the prior sanction of theRegistrar.]
Footnote:
1. Section 67 wassubstitutedby Mah. 20 of 1986, s. 23.
2. This portion wassubstitutedby Mah. 13 of 1994, s. 4.
Section 68 - Contribution to education fund of the State federal society
1 [68. Contribution to education fund of the Statefederal society
(1)Everysociety shallcontribute annually towards the education fund of the State federal
societywhich may be notified in this behalf by the State Government at such rate asmay
be prescribed, and different rates may be prescribed for differentsocieties or classes of
societies depending on their financial condition.
2 [* * * * * *]
(2) Every society shall pay its contributions to the said fund3 [within three months after
the close of theco-operative year.] Any officer wilfully failing to comply with the
requirementof this section, shallbe personally liable for making good the amount to the
federal society notifiedas aforesaid.]
4 [(3) Where any society fails to pay the contributionwithin the period specified in
subsection (2), the amount of contribution dueshall be recoverable as an arrear ofland
revenue and on the State Federal Society making a report of such failureto the Registrar,
the Registrar shall, after making such inquiry as he deems fit,grant a certificate for
recovery of the amount due as an arrear of landrevenue.]
Footnote:
1. Section 68 wassubstitutedfor the original by Mah. 27 of 1969, s. 11.
2. The proviso was deletedby Mah. 3 of 1974, s. 11.
3. These words weresubstitutedfor the words "within two months from the date on which
its accounts areadopted by the general body of members" by Mah. 20 of 1986, s. 24 (a).
4. Thissub-section wasadded, by Mah. 20 of 1986, s. 24(b).
Section 69 - Contribution to public purposes
After providing for the reserve fund as provided in section 66, and for the educational
funds as provided in section 68 a society may set aside a sum not exceeding twenty per
cent of its net profits, and utilise, with the approval of such federal society as may be
notified by the State Government in this behalf from time to time, the whole or part of
such sum in contributing to any co-operative purpose, or to any charitable purpose within
the meaning of section 2 of the Charitable Endowments Act, 1890, or to any other public
purpose.
Section 69A - Contribution of Co-operative State Cadre of Secretaries of certain
societies and establishment of Employment such Cadre
1 [69A. Contribution of Co-operative State Cadre of Secretaries of certain societies
and establishment of Employment such Cadre
(1) There shall be constituted a Co-operative State Cadre of Secretaries of primary
agricultural credit societies, multipurpose co-operative societies and service co-operative
and such other classes of societies as may be prescribed in this behalf (hereinafter in this
section referred to as "the Co-operative State Cadre"), consisting of persons recruited for
this purpose by the Central Societies notified in this behalf by the State Government. The
number of persons to be recruited and their conditions of service shall be determined by
the Central Societies in accordance with 2 [such general of special guidelines, if any,] as
may be issued by the State Government, from time to time.
(2) A Central Society may, from time to time, depute any person appointed by it to that
Cadre to work under any society referred to in sub-section (1), as it may consider
necessary. Where any such person is posted to work under any society, his services shall
be taken over by the society on such post, for such period and on such other terms and
conditions, as the Central Society may determine, but the person so posted shall draw his
salary and allowances from the Fund established under 3 [Sub-section (3)].
4 [(2A) The immediate initial supervisory control on the person appointed to the cadre
and deputed or posted to work as secretary under each of the societies referred to in subsection
(1) shall be with the Taluka Supervision Society consisting of the societies, in
each respective Taluka to which such persons are deputed, as members thereof and
registered for the purpose. The Taluka Supervision Society, shall exercise such powers
and discharge such functions or perform such duties as may be conferred or imposed on it
by the bye-laws of such society.
(3) An Apex society notified in this behalf by the State Government shall establish a
Fund to be called "the Co-operative State Cadre Employment Fund," which, when
established, shall be deemed to have been established with effect from the 1st day of July
1973. It shall be utilized for meeting the expenses on the salaries, allowances and other
emoluments to be paid to the persons appointed to the Co-operative State Cadre and the
expenditure relating to the Cadre.
5 [(4) (a) Every society or class or classes of societies, which in the opinion of the State
Government, derive any benefit, directly or indirectly, from the service of any Secretary
belonging to the Co-operative State Cadre of Secretaries and
(b) Every other body corporate carrying on any trade, business or industry or class or
classes of such corporate bodies, which in the opinion of the State Government, derive
such benefit as aforesaid;
and which are notified by the State Government in this behalf, from time to time, by
general or special order, shall, with effect from the 1st day of July 1977, contribute
annually to the said Fund, at such rate and in such manner as may be prescribed, and
different rates may be prescribed for different societies or other corporate bodies or class
or classes of societies or class or classes of other corporate bodies. In determining the rate
or rates of contribution, the State Government shall take into consideration the
expenditure referred to in sub-section (3), the services likely to be rendered and the
financial condition of the societies or other bodies concerned.
Explanation. -- Notwithstanding anything contained in any law for the time being in
force, for the purpose of levy and collection of the contribution to the said Fund by any
other corporate body to which this section applies, such corporate body shall be deemed
to be a society governed by this Act.]
(5) Where there is a failure to comply with the requirements of the last preceding subsection,
the Registrar may serve a demand notice on the society concerned to pay the
contribution within two months from the date of demand. Such demand shall be a charge
on the income of the society. If the contribution is not paid within the period aforesaid,
the Registrar may direct any bank or person having custody of the funds of the society to
pay the amount of the contribution immediately, and such Bank or person shall comply
with the orders of the Registrar. Every payment made pursuant to such direction shall be
a sufficient discharge to such Bank or person from all liability to the society in respect of
any sum so paid by it or him out of the moneys of the society in his custody.
(6) The State Government may make rules regulating all matters connected with or
ancillary to the custody and maintenance of, the payment of moneys into and the
expenditure and withdrawal of moneys from, the said Fund.]
Footnote:
1. Section 69A was inserted by Mah. 36 of 1975, s. 3.
2. These words were substituted for the words "the general or special orders" by Mah. 5
of 1990, s. 2(a).
3. Substituted for the words "the next succeeding sub-section" by Mah. 5 of 90, s. 2(b).
4. Sub-section (2A) was inserted by Mah. 5 of 1990, s. 2(c).
5. Sub-section (4) was substituted by Mah. 30 of 1978, s. 3.
Section 70 - Investment of funds
Asociety shallinvest or deposit its funds in one or more of the following:--
(a)in a Central Bankor the State Co-operative Bank;
(b)in any of the securities specified in section 20 of the Indian Trusts Act,1882;
1 [(c) in the shares, or security bonds, or debentures, issued byany othersociety with
limited liability and having the same classification to which itbelongs:
Providedthat, no society shallinvest more than such proportion of its paid up share capital
as may be prescribed:
Providedfurther that, the provisions of this clause shall not apply to any investment made
by anyagricultural credit society in any processing society based on agriculturalproduce.]
(d) 2 [in any co-operative bank (other than thosereferred to in clause (a) of this section) or
banking company,] approved forthis purpose by the Registrar, and on such conditions as
the Registrar may fromtime to time impose;
(e) in anyother permitted by the rules, or bygeneral or special order of the State
Government.
Footnote:
1.Clause (c) wassubstituted for the original by Mah. 20of 1986,s. 25.
2.These words weresubstitutedfor the words "in any banking company" by Mah. 33of
1963,s. 15.
Section 71 - Employees' provident fund
(1) Any society may establish for its employees a provident fund, into which shall be paid
the contributions made by its employees and by the society. Such provident fund shall not
be used in the business of the society, nor shall it form part of the assets of the society;
but shall be invested under the provisions of the last preceding section, and shall be
administered in the manner prescribed.
(2) Notwithstanding anything contained in the foregoing sub-section, a provident fund
established by a society to which the Employees' Provident Funds Act, 1952 is
applicable, shall be governed by that Act.
Section 71A - Funds not to be utilised for certain proceedings filed or taken by or
against officers in personal capacities
1[ 71A. Funds not to be utilised for certain proceedings filed or taken by or against
officers in personal capacities
2[( 1)] No expenditure from the funds of a society shall be incurred for the purpose of
defraying the costs of any proceedings filed or taken by or against any officer of the
society in his personal capacity under sections 78, 96 or 144T. If any question arises
whether any expenditure can be so incurred or not, such question shall be referred to and
decided by the Registrar, and his decision shall be final.
2[(2) If any person incurs expenditure in violation of sub-section ( 1), the Registrar shall
direct the person to repay the amount to the society within one month and where such
person fails to repay the amount as directed, such amount shall, on a certificate issued by
the Registrar, be recoverable as arrears of land revenue.
( 3) The person against whom action is taken by the Registrar under sub-section ( 2) shall
be disqualified to continue to be the officer of any society or to be officer of any society
at any next election including any next by-election held immediately after the expiration
of a period of one month during which such person has failed to pay the amount referred
to in sub-section ( 2).]
Footnote:
1. Section 71-A was inserted by Mah. 3 of 1974, s. 12.
2. Section 71-A was renumbered as sub-section (1) of that section and sub-section (2) and
(3) were added by Mah. 20 of 1986, s. 26.
Chapter: VII - MANAGEMENT OF SOCIETIES
Section 72 - Final authority of society
Subject to the provisions in this Act and the rules, the final authority of every society
shall vest in the general body of members in general meeting, summoned in such a
manner as may be specified in the by-laws.
1[Where the by-laws of a society so provide, the general meeting shall be attended by
delegates appointed by the members, and such meeting shall be deemed to be the meeting
of the general body, for the purpose of exercising all the powers of the general body.]
Footnote:
1. This portion was added, by Mah. 3 of 1974, s. 13.
Section 73 - Committee, its powers and functions
1 [(1)] The management of every societyshall vest in a committee, constitutedin
accordance with this Act, the rules and by-laws, whichshall exercise such powers and
performsuch duties as may be conferred or imposed respectively by this Act, the rulesand
the by-laws.
2 [(1AB) The members of the committeeshall be jointly and severallyresponsible for all
the decisions taken by the committee during its termrelating to the business of the
society. The members of the committeeshall be jointly and severallyresponsible for all
the acts and omissions detrimental to the interest of thesociety. Every such member
shallexecute a bondto that effect within fifteen days of his assuming the office, in the
form as specified bythe State Government by general or special order. The member who
fails to execute such bond within thespecified period shallbe demand to have vacated his
office as a member of the committee]:
Providedthat, before fixing any responsibility mentioned above, the Registrarshall inspect
the records of thesociety and decide as to whether the losses incurred by the society are
onaccount of acts or omissions on the part of the members of the committee or on
account of any naturalcalamities, accident or any circumstances beyond the control of
suchmembers:
Providedfurther that, any member of the committee, who does not agree with any of the
resolutionor decision of the committee, may express his dissenting opinion whichshall be
recorded in the proceedingsof the meetingand such membershall not be held responsible
for thedecision embodied in the said resolution or such acts or omissions committed
bythe committee of that society as per the said resolution. Such dissentingmember, if he
so desires, may also communicatein writing hisdissenting note to the Registrar within
seven days from the date of the saidresolution or decision. Any member, who is not
present for themeeting in which the business of thesociety is transacted, and who has not
subsequently confirmed the proceedings of thatmeeting, suchmember shall also not be
held responsible for any of thebusiness transacted in that meeting of the society.
3 [(1A) Notwithstanding anything contained in this Act, therules made thereunder or in
the bye-laws of any society or class ofsocieties,--
(a)the first general meeting of a society shall be convened within three months from the
dateof its registration to appoint a provisional committee and to transactother business as
may be prescribed.The term of the membersof such provisional committee shall be for a
period of one year from the date onwhich it has been first appointed or till the date on
which a regular committeeis duly constituted in accordance with the provisions of the
rules or bye-lawsmade under this Act, whichever is earlier; and all themembers of such
provisional committeeshall vacate office on the date ofexpiry of such period or such
constitution of the committee.
(b)notwithstanding anything contained in clause (a), the provisional committees forthe
Co-operative Sugar Factories and Co-operative Spinning Mills and suchother class of
societies, as the StateGovernment may, by special or general order, in the
OfficialGazette, specify in this behalf, shall be appointed by the State Government:
andthe membersthereof shallhold office for a period of three years, which period may be
extended by oneyear, at a time, so however that, the total periodshall not exceed five
years, in theaggregate:
Providedthat, the State Government shall have the power to change or reconstitute
suchcommittee or, any or all members thereof at its discretion even before theexpiry of
the period for which a member or members were nominated thereon:
Providedfurther that, the member or membersassuming office on such change or reconstitution
of the committeeshall hold office for the period forwhich the provisional
committee has been appointed under this clause.
(c)pending the first constitution of the committee of a society, the provisionalcommittee
of the society shall exercise the powers and perform the duties ofthe committee of such
society as provided in this Act, the rules and bye-lawsand make necessary arrangements
for holding election of the committee, beforethe expiry of its term.]
4 [(2) Notwithstanding anything contained in any by-lawsof a society or class of societies,
the Registrar may, having regard to the areaof operation, subscribedshare capital or
turnover of a societyor class of societies, by general or special order, published in the
Official Gazette, prescribed the maximum number ofmembers on the committee of
suchsociety or class of societies, as may be specified in suchorder.]
5 [(3) (a) Notwithstanding anything contained in thisAct or the rules made thereunder or
in the bye-laws of any society or anyother law for the time being in force,in a general
election of members of the committee of a society, on the,election of two-thirds or more
number of members, the returning officer or anyother officer or authority conductingsuch
election shallwithin seven days after the declaration of results of the election of
suchmembers, or where such election isheld before the date of commencement of the
Maharashtra Co-operative Societies(Second Amendment) Act, 1986, and such number of
members have been elected but the committee has, forwhatever reason, not been so far
constituted, forward their names together withtheir permanent addresses to the Registrar,
who shall, within fifteen days from the date of receiptthereof by himpublish or cause to
be published such names and addresses by affixing a noticeon the Notice Boardor at any
prominent place in his office; and upon such publication, the committeeof the society
shallbe deemed to be duly constituted. In determining two-thirds of the number
ofmembers, a fractionshall be ignored:
Providedthat, such publication shall not be deemed--
(i)to preclude the completion of election of the remainingmembers and the publication of
theirnames and permanent addresses of the elected members likewise as and when they
are available; or
(ii)to effect the term of the office of members of the committee under the Act.
(b)Thenames of the remaining members, after they are elected (together with their
permanentaddresses), may also thereafter be likewise published by the Registrar.]
Footnote:
1. Section 73 was renumbered assub-section (1) of that section andsub-section (2) was
inserted, by Mah. 20 of 1986, s. 27.
2. Sub-section (1AB) was inserted by Mah. 41 of 2000, s. 3, (w.e.f. 23-8-2000).
3. Sub-section (1A)was insertedby Mah. 13 of 1994.
4. Section 73 was renumbered assub-section (1)of thatsection and sub-section (2) was
inserted, by Mah. 20 of 1986, s. 27.
5. Sub-section 3 was inserted by Mah. 37 of 1986,s. 2.
Section 73IA - Election to more than one seat on committee of society including
specified society
1 [73-IA. Election to more than one seat on committee of society including specified
society
If a person is elected to more than one seat on the committee of a society including a
society belonging to any of the categories specified in section 73-G, then, unless within a
period of fifteen days from the date of declaration of the result of the elections he resigns
all but one of the seats by writing under his hand addressed to the Election Officer, or as
the case may be, the Collector, all the seats shall become vacant. On receipt of such
resignation or on the seats becoming vacant as aforesaid, the Election Officer, or as the
case may be, the Collector shall 2 [hold a meeting of the committee for filling the vacancy
by way of co-option.]
Footnote:
1. Section 73-1A was inserted by Mah. 45 of 1983, s. 3.
2. This portion was substituted by Mah. 34 of 2001 (w.e.f. 7-9-2001) s. 5.
Section 73IB - Powers of State Government to postpone election
1[ 73-I B. Powers of State Government to postpone election
Where due to scarcity, drought, flood, fire, or any other natural calamity or rainy season
or any election programme, of the State Legislative Assembly or Council or the House of
the People or a local authority coinciding with the election programme of any society or
class of societies or such other reasons as, in the opinion of the State Government, are
exceptional, it is not in the public interest to hold elections to any society or class of
societies, the State Government may, notwithstanding anything contained in this Act, or
in any rules, or bye-laws made thereunder, or any other law for the time being in force,
for reasons to be recorded in writing, by general or special order, postpone the election of
any society or class or societies, for a period not exceeding six months at a time which
period may further be extended so, however, that the total period shall not exceed one
year in the aggregate.
Footnote:
1 . Section 73 - 1B to 73 -ID were inserted by Mah. 20 of 1986, s. 28.
Section 73IC - Election to notified societies
(1) Where the State Government is satisfied that, having regard to the objects of the
society or class of societies (other than the societies specified by or under section 73G),
or composition of membership thereof, or proper management and the interest of the
members, it is necessary in the public interest to hold elections to any society or class of
societies, the State Government may, notwithstanding anything contained in this Act, or
in any rules, or bye-laws made thereunder, or in any other law for the time being in force,
by general or special order, notify in the Official Gazette, such society or class of
societies and the election to such society or class of societies shall be held by the
Registrar in the prescribed manner.
(2) The Registrar shall recover the expenses of holding election to any such society or
class of societies as is referred to in sub-section (1), in the prescribed manner.
Section 73ID - Motion of non-confidence against officers of societies
( 1) A President Vice President, Chairman, Vice-Chairman, secretary, treasurer or any
other officer by whatever designation called who hold office by virtue of his election to
that office shall cease to be such President, Vice-President, Chairman, Vice-Chairman,
Secretary, treasurer or any other officer, as the case may be, if a motion of no-confidence
is passed at a meeting of the committee by1[two-third majority] of the total number of
committee members who are2[entitled to vote at the election of such President, Vice
President, Chairman, Vice-Chairman, Secretary, Treasurer or any other officer] and the
office of such President, Vice-President, Chairman, Vice-Chairman, secretary, treasurer
or any other officer, as the case may be, shall thereupon be deemed to be vacant.
( 2) The requisition for such special meeting shall be signed by not less than one-third of
the total number of members of the committee who are1[entitled to elect the President,
Vice-President, Chairman, Vice-Chairman, Secretary, Treasurer or any other officer, as
the case may be, of the committee] and shall be delivered to the Registrar. The requisition
shall be made in such form and in such manner as may be prescribed:
Provided that, no such requisition for a special meeting shall be made within a period of
six months from the date on which any of the officers referred to in sub-section ( 1)has
entered upon his office.
( 3) The Registrar shall, within seven days from the date of receipt of the requisition
under sub-section ( 2), convene a special meeting of the committee. The meeting shall be
held on a date not later than fifteen days from the date of issue of the notice of the
meeting.
( 4) The meeting shall be presided over by the Registrar or such officer not below the
rank of an Assistant Registrar of Co-operative Societies authorised by him in this behalf.
The Registrar or such officer shall, when presiding over such meeting, have the same
powers as the President or Chairman when presiding over a committee meeting has, but
shall not have the right to vote.
( 5) The meeting called under this section shall not, for any reason, be adjourned.
( 6) The names of the committee members voting for and against the motion shall be read
in the meeting and recorded in the minute book of committee meetings.
( 7) If the motion of no-confidence is rejected, no fresh motion of no- confidence shall be
brought before the committee within a period of3[one year] from the date of such
rejection of the motion.]
Footnote:
1. Sub stituted for the words "Simple maj ority" by Mah. 4 of 2001, (w.e.f. 14 - 8 - 2000).
2. These words were sub stituted for the words "for the time being entitled to sit and vote
of any me eting of the committee" by Mah. 7 of 1997, s. 6.
3. These words were sub stituted for the words "six months" by Mah. 7 of 1997, s. 6(c).
Section 73A - Disqualification for being designated officer simultaneously of certain
categories of societies or for being designated officer of the same society for more
then ten years
1 [73A. Disqualification for being designated officer simultaneously of certain 2
[categories of] societies or for being designated officer of the same society for more
then 3 [ten years]
(1) In this section and in sections 73C, 73D and 73E, "a designated officer" means the
Chairman and the President, and includes any other officer of the society as may be
declared by the State Government, by notification in the Official Gazette, to be a
designated officer, but does not include, any officer appointed or nominated by the State
Government or by the Registrar.
(2) No person shall at the same time, be or continue to be a designated officer of more
than one society falling in Category I or Category II or Category III of the categories
mentioned below; and shall not be or continue to be a designated officer in more than two
societies in the aggregate in the three categories:--
Category I.--Societies, the area of operation of which extends to the whole of the state.
4 [Category II.--Societies, the area of operation of which does not extend the whole of the
State,--
(a) but extends to at least one whole district irrespective of their authorised share capital;
or
(b) but extends to areas comprised in part of parts in one or more districts and the
authorised share capital of which is more than Rs. 10 lakhs.
Category III.--Societies, the area of operation of which does not extend to one whole
district but extends at least to one whole taluka, or the authorised share capital of which is
not more than Rs. 10 lakhs but is not less than Rs. 5 lakhs.]
5 [Explanation.--For the purpose of this sub-section, the expression "society" shall not
include a society with no share capital and a society not engaged in commercial
activities.]
6 [(2A) If any question arises whether or not a society falls under any of the categories
referred to in sub-section (2), such question shall be referred to and decided by the
Registrar and his decision shall be final.]
(3) 7 [* * * * * *]
(4) If any person becomes, at the same time, 8 [* * * *] a designated officer of societies,
in excess of the number prescribed under sub-section (2), unless he resigns his office in
the society or societies in excess of the said number within a period of 9 [ten days] from
the date on which he is elected or appointed a designated officer of more than the
permissible number of society or societies, or if the elections-or appointments are held or
made simultaneously, from the date on which the result of last of such elections or
appointments is declared, he shall, at the expiration of the said period of 6[ten days,]
cease to be a designated officer of all such societies 10 [and thereupon, notwithstanding
anything contained in any other provisions of this Act, a person so resigning or ceasing to
be a designated officer of any or all such societies shall not be eligible for being re-
elected or re-appointed as a designated officer of such society or societies during the
remainder of the the term of office for which he was so elected or appointed; and at no
point of time such person shall be a designated officer of societies in excess of the
number prescribed under sub-section (2)].
11 [(5) No person shall be, or shall continue to be, a designated officer of any society of
any of the categories referred to in sub-section (2), 12 [for a period of more than ten years
in the aggregated] and at the expiration of that period any such person shall cease to be a
designated officer of that society, and shall not be eligible for being re-elected or reappointed
as a designated officer, until 13 [period of one term of the committee has
elapsed after completion] of the aforesaid period of 14 [ten years.]
Explanation.--For the purpose of this sub-section,--
(a) in calculating the 15 [aggregate], period of 16 [ten years) in office, any period for which
the person concerned may have been such officer, before the commencement of the
Maharashtra Co-operative Societies (Second Amendment) Act, 1969, shall be ignored;
(b) if any person resigns his office as a designated officer at any time within twelve
months of the date on which the 15 [aggregate], period of 14 [ten years] would, but for his
resignation, have been completed, he shall be deemed to have completed the period 14
[ten years] on his resignation.]
16 [(6) No member of the Council of Ministers shall be, or continue to be, a designed
officer of any society of any of the categories referred to in sub-section (2):
Provided that, nothing in this sub-section shall affect any member of the Council of
Ministers who is a designated officer of any such society on the date of commencement
of the Maharashtra Co-operative Societies (Second Amendment) Act, 1985; and he shall
continue to hold office till completion of his term, unless he resigns or vacates the office
of such designated officer for any reason whatsoever before the expiry of his term as such
designated officer.]
Footnote:
1. Sections 73-A to 73-G were inserted by Mah. 27 of 1969, s. 12.
2. These words were substituted for the words "Specified' by Mah. 20 of 1986, s. 29(f).
3. These words were substituted for the words "six years" by Mah. 45 of 1983, s. 4(b).
4. Category II and III substituted by Mah. Co-operative Societies (Amendment) Act.
1995 s. 2. Mah. Act XXVII of 1996 MGG dt. 5-9-96 pt. 8 P. 775.
5. This Explanation was inserted by Mah. 20 of 1986, s. 29(a).
6. Sub-section (2A) was inserted by Mah. 3 of 1974, s. 14.
7. Sub-section (3) was deleted by Mah. 20 of 1986, s. 29 (b).
8. These words "after the commencement of the said Act" were deleted by Mah. 20 of
1986, s. 29(c).
9. Substituted by Mah. 10 of 1988, s. 11(a).
10. This portion Inserted, by Mah. 10 of 1988, s. 11(b).
11. Sub-section (5) and Explanation were substituted for the original by Mah. 29 of 1971,
s. 4(a).
12. These words were substituted for the words "for a consecutive period of more than
ten years" by Mah. 20 of 1986, s. 29(d)(i).
13. These words were substituted for the words "a period of three years has elapsed after
the expiry" by Mah. 20 of 1986, s: 29(d)(ii).
14. These words were substituted for the words "six years" by Mah. 45 of 1983, s. 4(g).
15. This word was substituted for the word "consecutive" by Mah. 20 of 1986, s.
29(d)(iii)A.
16. Sub-section (6) was added, by Mah. 20 of 1986,'s. 29(e).
Section 73AA - Designated officer who is associate councillor to cease to be
designated officer on the ceasing to be such Councillor
1 [73AA. Designated officer who is associate councillorto cease to be designated
officer on the ceasing to be such Councillor
Where,after the commencement of the Maharashtra Zilla Parishads and Panchayat
Samitis(Fourth Amendment) Act, 1974, a designated officer of any society of any of
thecategories referred to in sub-section (2) of section73A who is also an associate
Councillor of any Zilla Parishad, ceases to be theassociate Councillor of such
ZillaParishad by operation of the provisions of section 82 of the Maharashtra Zilla
Parishads and PanchayatSamitis Act, 1961,he shall also cease to bea designated officer of
the said society from the date on which he so ceases tobe an associate Councillor of the
ZillaParishads].
Footnote:
1. Section 73AA was inserted by Mah. 6 of 1975, Sch.
Section 73AB - Cessation of membership of committee held be virtue of office under
Government etc.
1[73AB. Cessation of membership of committee held be virtue of office under
Government etc.
Where a person is elected, co-opted, appointed or nominated as member of a committee
of any society by virtue of his holding office under the Central Government or the State
Government or in any local authority or in any body corporate or in any organisation, he
shall cease to be such member on the date on which he ceases to hold such office.]
Footnote:
1. Section 73AB was inserted by Mah. 20 of 1986, s. 30.
Section 73B - Reservation of seats on committees of certain societies for Scheduled
Caste, Scheduled Tribes or Other Backward Classes, De-notified, Tribes (Vimukta
Jatis) Nomadic Tribes, Special Backward Classes and for members of weaker
section and election thereto
1 [73B. Reservation of seats on committees of certain societies for Scheduled Caste,
Scheduled Tribes 2 [or Other Backward Classes, De-notified, Tribes (Vimukta Jatis)
Nomadic Tribes, Special Backward Classes] and for members of weaker section and
election thereto.
(1) Notwithstanding anything contained in this Act or in the rules made thereunder or any
bye-laws of any society, on the committee of such society or class of societies as the
State Government may, by general or special order, direct, 3 [four] seats shall be
reserved.--
(a) one for the members belonging to the Scheduled Castes or Scheduled Tribes;
4 [***]
5 [(a-1) one for the members belonging to the Other Backward Classes;
(a-2) one for the members belonging to the De-notified Tribes (Vimukta Jatis), Nomadic
Tribes or Special Backward Classes; and];
(b) one for the members belonging to the weakers section.
(2) The 6 [four] reserved seats referred to in sub-section (1), shall 7 [unless where the byelaws
of the society already provide for the reserved seats,] be in addition to the strength
of the members of the committee of such a society or class of societies.
(3) Any individual member of the society, or any elected member of the committee of a
member-society, or any member of the committee of a member-society, whether elected,
co-opted or appointed under this section, belonging to the Scheduled Castes or Scheduled
Tribes, 8 [or Other Backward Classes or De-notified Tribes (Vimukta Jatis) or Nomatic
Tribes or Special Backward Classes,] or as the case may be, weaker section, shall be
eligible to contest the election to a reserved seat and every person who is entitled to vote
at the election to the committee shall be entitled to Vote at the election to any such
reserved seat.
9 [(4) Where no person is elected to any of the 10 [four] reserved seats, than,--
(a) in the case of a society other than a society mentioned in clauses (b) and (c), the Chief
Executive Officer such as the Chairman, Secretary or Manager or any other officer by
whatever designation called;
(b) in the case of a society notified under section 73-IC, the Registrar; and
(c) in the case of a society specified under section 73-G, the Collector;
shall call a meeting of the elected members of the committee to co-opt a member or, as
the case may be, members on the committee from amongst the persons entitled to contest
the election under sub-section (3), and such meetings shall be presided over by the
Chairman, if it is a society referred to in clause (a), or by the Collector or any other
officer authorised by him, if it is a specified society, or by the Registrar or any other
authorised by him, if it is a notified society. If no member is co-opted at such meeting,
the Chairman or the Collector or, where the meeting is presided over by an officer
authorised by the Registrar, such officer, as the case, may be, shall, within a period of
seven days from the date of such meeting, report the fact to the Registrar, and thereupon
the Registrar shall, within a period of seven days from the date of receipt of such report
by him or where the Registrar himself has presided over such meeting, within a period of
seven days from the date of such meeting, appoint on the committee a person or persons,
as the case may be, from amongst the persons entitled to contest the election to the
reserved seats under sub-section (3).]
Explanation.--For the purposes of this section,--
(a) a general or special order, if any, issued by the State Government under section 73-B
as it existed before the date of commencement of the Maharashtra Co-operative Societies
(Amendment) Act, 1983 shall be deemed to have been issued under sub-section (1) of
this section and shall continue to be in force until duly repealed or amended;
(b) the expression "Scheduled Castes" includes "Nav-Boudhas", 11 [***]
12 [(b-1) the expression "Other Backward Classes, De-notified Tribes (Vimukta Jatis) and
Nomadic Tribes and Special backward Classes" means such classes or parts of or groups
within such classes as are declared, from time to time, by the State government to be
Other Backward Classes, De-notified Tribes (Vimukta Jatis) and Nomadic Tribes and
Special backward Classes;]
(c) the expression "member belonging to weaker section" means a member or such class
of members as the State Government may, by general or special order from time to time,
declare].
Footnote:
1. Section 73-B was substituted for the original by Mah. 45 of 1983, s. 5.
2. These words were added by Mah. Act No. 6 of 2002(w.e.f. 23-4-2001).
3. This word was substituted for the word "two" by Mah. Act No. 6 of 2002(w.e.f. 23-4-
2001).
4. The word "and" was deleted by Mah. Act No. 6 of 2002(w.e.f. 23-4-2001).
5. Clauses (a-1) and (a-2) were inserted by Mah. Act No. 6 of 2002(w.e.f. 23-4-2001).
6. This word was substituted for the word "two" by Mah. Act No. 6 of 2002(w.e.f. 23-4-
2001).
7. These words were inserted by Mah. 18 of 1984, s. 3(b).
8. These words were added by Mah. Act No. 6 of 2002(w.e.f. 23-4-2001).
9. Sub-section 4 was substituted by Mah. 10 of 1988, s. 12.
10. Section 73AB was inserted by Mah. 20 of 1986, s. 30.
11. The words "and the expression" Scheduled Tribes" includes "De-notified Tribes and
Nomadic Tribes" were deleted by Mah. Act No. 6 of 2002, (w.e.f. 23-4-2001).
12. Clause (b-1) was inserted by Mah. Act No. 6 of 2002, (w.e.f. 23-4-2001).
Section 73BB - Reservation of seats for employees on committees of certain societies
1 [73BB. Reservation of seatsfor employees on committees of certain societies
2 [(1)] On the committee ofsuch society or class of societies as the State Government
may, by general orspecial order, direct where the number of permanent
salariedemployees of the society is 25 or more,--
(a) if the number of members of the committeethereof is 11 or less--one seat; and
(b) if the number of suchmembers is 12 or more--one additionalseat for every 10
members over and above the first 11members,
shall be reserved for such employees. The seats soreserved shall be filled by selection
made by the 3 [recognised union orunions and where there is no union at or where there is
a dispute in relationto such issues including whether a union is recognised or not, then the
seatsso reserved shall be filed by an election by such employees fromamongst themselves
in the prescribed manner] Any person selected or elected as[a member of the committee
to any reserved seatshall not beentitled to be elected as an officer of such society, or to
vote at anyelection of officers.]
4 [Explanation.--For the purposes of thissection the members of the committeeshallmean
andinclude elected, appointed, nominated, co-opted as well as ex-office members of the
committeebut it shall not include the representatives of theemployees.]
5 [(2) No employee who isunder suspension shall be eligible for being selected or elected
orfor being continued as member under sub-section (1).
(3) Subject to the provisions ofsub-section(2),the term of a member representing the
employeesshall be co-terminuswith the term of the committee as provided under the byelaws
of the societyand after every fresh election of the members of themembers ofthe
committee a fresh selection or election, as the case may be, of amember undersubsection
(1),shall benecessary.]
Footnote:
1. Section 73BB was inserted and wasdeemed always to have been inserted by Man. 3 of
1974, s. 15.
2. Section 73BB was renumbered assub-section (1)of thatsection and the portion was
substituted for the portionbeginning with the words "recognised Union or Unions" and
ending withthe word "nominated as" by Mah. 20 of 1986, s. 31(a).
3. These words were substituted by Mah. 7 of 1997, s. 7.
4. This Explanation was added by Mah. 7 of 1997, s. 8
5. Thesesub-sectionswere inserted, by Mah. 7 of 1997, s. 31(b).
Section 73BBB - Reservation of seats on committees of societies for women members
and elections thereto
1 [73BBB. Reservation of seats on committees of societies for women members and
elections thereto
(1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in
the bye-laws of any society, there shall be reserved seats for women on the committee of
each society to represent the women members in the following manner, namely:--
(a) one seat on the committee consisting of not more than 9 committee members;
(b) two seats on the committee consisting of 10 or more, but not exceeding 19 committee
members; and
(c) three seats on the committee consisting of 20 or more committee members.
2 [Explanation:--For the purpose of determining the number of committee members under
this sub-section, committee members who are elected, co-opted, nominated, appointed or
otherwise occupying the position on the committee under section 73B, 73BB and under
this sub-section shall not be included.]
(2) The reserved seats referred to in sub-section (1) shall be in addition to the strength of
the members of the committee of a society:
3 [Provided that, where the bye-laws of a society provide for reservation of seats for
women on the committee thereof, the total number of seats to be so reserved for women
shall be equal to the number of seats specified in sub-section (1).]
(3) Any individual woman member of the society, or any woman member of the
committee of a member society, whether elected, co-opted or appointed, shall be eligible
to contest the election to a reserved seat on a committee of a society. 4 [and every person
who is entitled to vote at the election of the committee shall be entitled to vote at the
election to any such reserved seat];
(4) Where no woman member or, as the case may be, women members are elected to the
reserved seats, then,--
(a) in the case of a society other than a society mentioned in clauses (b) and (c), the Chief
Executive Officer such as the Chairman, Secretary or Manager or any other Officer, by
whatever designation called (hereinafter in this section collectively referred to as "the
Chairman");
(b) in the case of a society notified under section 73-IC, the Registrar; and
(c) in the case of a society specified under section 73G, the collector;
shall call a meeting of the elected members of the committee to co-opt a woman member
or, as the case may be, women members on the committee from amongst the persons
entitled to contest the election under sub-section (3), and such meeting shall be presided
over by the Chairman, if it is a society referred to in clause (a), or by the Registrar or any
other officer authorised by him, if it is a notified society or by the Collector or any other
officer authorised by him, if it is a specified society. If no woman member is co-opted at
such meeting, the Chairman or the Collector or, where the meeting is presided over by an
officer authorised by the Registrar or the Collector, such officer, as the case may be,
shall, within a period of seven days from the date of such meeting, report the fact to the
Registrar, and thereupon the Registrar shall, within a period of seven days from the date
of receipt of such report by him, or where the Registrar himself has presided over such
meeting, within a period of seven days from the date of such meeting, appoint on the
committee a woman member or women members, as the case may be, from the amongst
the women members entitled to contest the election to the reserved seats under subsection
(3).
(5) Nothing in this section shall apply to a committee of any society which exclusively of
men members, or as the case may be, of woman members.
5 [(6) Where election to the committee of any society has been held without holding
election to such additional reserved seats or where election to such additional reserved
seat could not be held on or before the 30th September 1992 on account of any directions
issued under section 157, then unless the process for election to the committee including
such additional reserved seats for women members has already commenced, or election
to the committee is or will be due and will be held after the commencement of the
Maharashtra Co-operative Societies (Amendment) Act, 1992, such additional reserved
seats of the committee shall be filled in by co-option of women members by the
committee of the society.]
(7) Notwithstanding anything contained in sub-section (6), no election to such additional
reserved seats shall be held where the term of the committee of society is to expire within
six months from the date of the commencement of the Maharashtra Co-operative
Societies (Amendment) Act, 1991.
(8) The term of office of such women members elected, co-opted or as the case may be,
appointed on a committee, shall be co-terminus with the term of the committee as
provided under the bye-laws of the society and at the time of every fresh election
thereafter election shall be held to the additional reserved seats for women members in
accordance with the provisions of this section.)
Footnote:
1. Section 73BBB was inserted by Mah. 30 of 1991, s. 2.
2. This Explanation was added by Mah. 7 of 1997, s. 8
3. This proviso was substituted by Mah. 7 of 1997, s. 8.
4. This portion was added by Mah. 20 of 1992, s. 2 (a).
5. Sub-section (6) was substituted by Mah. 20 of 1992, s. 2.
Section 73C - Restrictions on representation of certain class of members on
committees of certain societies and for being designated officers
( 1) In the case of a District Central Co-operative B ank or an Apex Co-operative B ank
of the District Central Co-operative B ank, there sh all not be more than
one1[representative to be elected by individual me mbers from amongst themselves], on
the committee of such B ank, and such representative shall not be eligible for being
elected or appointed as a designated officer.
( 2) In the case of2[an Agriculture and Rural Development B ank or an Apex Agriculture
and Rural Development B ank, there sh all not be more than one representative on the
committee of such B ank, of members, who have not taken elected or appointed as a
designated officer.
( 3) In the case of an Agricultural Credit Society which gives loans to individuals for the
raising of crops, there sh all not be more than one representative on the committee of
such society, of me mbers who have not taken any loans from the society; and that
representative sh all be elected3[* * *] only from amongst me mbers, who have not taken
loans. Such representative sh all not be eligible for being elected3[* * *] as a designated
officer.
Footnote:
1. These words were sub stituted for the words, "representative of individual me mbers",
by Mah. 20 of 1986, s. 32(a).
2. These words were sub stituted for the words "a Land Development B ank or an Apex
Land Development B ank" by Mah. 10 of 1988, s. 13.
3 . The words "or appointed" were deleted by Mah. 20 of 1986, s. 32(b).
Section 73D - Society's nominee on other society not eligible to be designated officer
except in a federal society
No member of a society who is nominated to represent it on any other society, shall be
eligible for being elected or appointed as a designated officer of the other society, unless
the other society is its federal society.
Section 73E - In specified societies members not having minimum number of
transactions of certain monetory limits not entitled to be designated officers
In the case of such class or classes of societies as may be specified by the State
Government, by notification in the Official Gazette, no member shall be eligible for
being elected or appointed as a designated officer, if he does not fulfill the minimum
qualification relating to his transactions with the society of such monetory limits as may
be laid down, from time to time, in such notification.
Section 73F - Member who or whose near relation is dealing in goods for purchase
of which loans are given by a society not eligible to be on its committee
In the case of a society, which gives loans to me mbers for purchasing machinery,
implements, equipment, commodities or other goods,1[or which deals in such goods,], no
me mber, who or whose near relation is a dealer in such goods or is director of a
company or a partner in a firm carrying on business in such goods, sh all be eligible for
being elected or appointed as a member of the committee of such society.
Explanation.--For the purposes of this section, the expression "near relation" means a
wife, husband, father, mother, son, daughter, son-in-law, or daughter-in-law.
Footnote:
1 . These words were inserted, by Mah. 20 of 1986, s. 33.
Section 73FF - Disqualification for membership of committee
1 [73FF. Disqualification formembershipof committee
(1) Withoutprejudice to the other provisions of this Act or the rules madethereunder in
relation to the disqualification of beingmember of acommittee, no person shall be eligible
for being appointed, nominated, elected,co-opted or, for being a member of a committee,
ifhe--
(i) is a defaulter of any society;
Explanation.--For the purposes of thisclause, the term "defaulter'' includes--
(a) in the case of a primary agricultural creditsociety, a member who defaults the
repayment of the crop loan onthe due date;
(b) in the case of term lending society, amember whodefault the payment of any
instalment of the loan granted tohim;
(c) in the case of any society,--
(i) a member who has taken anamator advance; or
(ii)amember whohas purchased any goods or commodities on credit or availedhimself
ofany services from the society for which charges are payable; and fails to repaythe full
amount of such anamat oradvance or pay the price of such goods or commodities or
charges for suchservice, after receipt of notice of demand by him from the
concernedsociety or within thirty days from the date of withdrawal of anamat or
advanceby him or from the date of delivery of goods tohim oravailing of services by him,
whichever is earlier;
(d) in the case of non-agricultural creditsocieties, a member who defaults the payment of
any instalment ofthe loan granted;
(e)in the case of housingsocieties, a member who defaults the payment of dues to
thesociety within three months from the date of service of notice in writing servedby post
under certificate of posting demanding the payment of dues;
(ii)has, in the opinion ofthe Registrar, deliberately committed breach of cooperative
discipline withreference to linking up of credit with co-operative marketing or cooperativeprocessing;
or
(iii) has been, held responsible under section79 or 88 or has been heldresponsible for
payment of costs of inquiry under section 85; or
(iv) has incurred any disqualification under thisAct or the rules made thereunder; or
(v) carries on business of the kind carried on bythe society either in his name or in the
name of anymember ofhis familyor he or any member of his family is a partner ina firm
or a director in a company which carries on business of the kind carriedon by the society;
Explanation.--For the purpose of thisclause, the expression "family" mean a wife,
husband,father, mother, brother, sister, son, daughter, son-in-law or daughter-in-law;or
(vi) is a salaried employee of any society (otherthan a society of employees themselves)
or holds any office of profit under anysociety, except when he holds or is appointed to the
office of a ManagingDirector or any other office declared by the State Government by
generalor special order not to disqualify its holder or is entitled tobe or is selected or
elected to any reserved seat on the committee of a societyunder section 73BB.
2 [(vii) has more than twochildren:
Provided that, a person having more than two childrenon the date of commencement of
the Maharashtra Co-operative Societies (ThirdAmendment) Act, 2001 (hereinafter in this
clausereferred to as "the date of such commencement"),shall not bedisqualified under this
clause so long as the number of children he had on thedate of such commencement does
not increase:
Provided further that, a child or more than onechild born in a single delivery within the
period of one year from the date ofsuch commencement shall not be taken into
consideration for the purposeof disqualification mentioned in this clause.
Explanation. -- For the purposes of this clause.--
(a) where a couple has only one child on or afterthe date of such commencement, any
number of children born out of a singlesubsequentdelivery shall be deemed to be one
entity;
(b) "child" does not include an adoptedchild or children.]
(2) Amember whohas incurred any disqualification under sub-section (1),shall cease to be
amember ofthe committee and his seat shall thereupon be deemedto be vacant.
Footnote:
1. Section 73FF and 73FFF were inserted, by Mah.20of 1986, s. 34.
2. Clause (vii) was addedby Mah. 34 of 2001, (w.e.f. 7-9-2001) s. 6.
Section 73FFF - Eligibility for re-appointment or re-election as member of
committee
(1) A member of a committee who has ceased to be a member thereof on account of
having incurred disqualification under clause (11) of sub-section (1) of section 73FF shall
be eligible to be re-co-opted re-elected as a member of the committee after the expiry of
the period of two years from the date on which he has so ceased to be a member of the
committee.
(2) A member of a committee who has ceased to be a member thereof on account of
having incurred disqualification under clause (iii) of sub-section (1) of section 73-FF,
shall be eligible to be re-appointed, re-nominated, re-co-opted, or re-elected as a member
of the committee after the expiry of the period of five years from the date on which he
has so ceased to be a member of the committee.
(3) A member of a committee who has ceased to be a member thereof on account of
having incurred disqualification other than disqualifications referred to in sub-sections (1)
and (2) shall, unless otherwise specifically provided in this Act, be eligible to be renominated,
re-co-opted, re-appointed or re-elected as a member of the committee, as soon
as such disqualification ceases to exist.]
Section 73G - Provision for conduct of elections to committees and of officers of
certain societies and term of office of member of such committees
73G. Provision for conduct of elections to committees1 [and of officers] ofcertain
societies and term of office of member of such committees
2 [(1) The election of themembers ofthe committees 1 [and the officers by the
committees,] of thesocieties of the categories mentioned belowshall besubject tothe
provisions of Chapter XI-A and shall be conducted in themanner laid down by or under
that Chapter:--
(i) such Apex3 [societies], which theState Government may, by general or special order
published in Official Gazette, from time to time,specify in this behalf, regard being had to
the financial position andsharecapital of such 4 [societies];
(ii) all District Central Co-operativeBanks;
5 [(iii) all primaryAgriculture and Rural Development Banks;]
(iv) (a) all District Co-operative Sale andPurchase Organisations;
(b) all Taluka Co-operative Sale and PurchaseOrganisations;
(v)allCo-operative Sugar Factories;
(iv)allCo-operative Spinning Mills;
(vii)any othersocieties or class of societies, which the State Government may, by general
orspecial orderpublished in the Official Gazette fromtime to time specify in this behalf
regard being had to the financial positionand sharecapital of such 6 [societiesor class of
societies.].
7 [8 [(2) When the election of all themembers of the committee of any suchsociety is held
at the same time, the members elected on the committee at such generalelection shallhold
office for a period of five years from the date on which the firstmeeting is held unless the
period isextended by the State Government, for reasons to be recorded in writing for
aperiod not exceeding one year so however that the total period does not exceedsix years
in the aggregate.
(2A) The term of office of themembers who are appointed or nominatedor co-opted or
selected or elected on the committee including to fill thevacancy shallbe co-terminus with
term of office of the elected members under sub-section (1), notwithstanding the date of
their such appointment,nomination, co-option, selection or election including to fill the
vacancy.
(2B) Where, for any reason whatsoever, the election ofthe membersof the committee was
held or could not be held before the expiry of the term orthe extended term, as the case
may be, of the existing committee, themembers, (including the officers ofthe committee
shallcease to hold office on the expiry of its term extended term as the case may beand
they shallbe deemed to have vacated their offices:
9 [Provided that where the Collector fails to holdelection to the committee of any such
society, the term of office of themembers of the committee of thatsociety shallbe deemed
to have been extended till the date immediately preceding the date ofthe first meetingof
the newly constituted committee.)
10 [* * * * *]
(3) Notwithstanding anything in the bye-laws of anysuch society, only the committee of
management shall be elected by a general body ofmembers of the society; and allother
committees authorised by orunder the bye-laws may be constituted only by electing or
appointing personsfrom among the persons who are members of the committee of
management, and all suchcommittees shallbe sub-committees of thecommittee of
management, and shall be subordinate to it.]
Footnote:
1. These words wereinserted by Mah. 3 of 1974, s. 16(a).
2.Sub-section (1)wassubstitutedby Mah. 24 of 1972, s. 2.
3. This word wassubstitutedfor the words "Co-operative Institutions" by Mah. 20 of
1986, s. 35(a)(i)(A).
4.This word wassubstitutedfor the words "institutions", by Mah. 20 of 1986, s.
35(a)(i)(B).
5. Clause (iii) wassubstitutedfor the original by Mah. 10 of 1988,s. 14.
6. These words weresubstitutedfor the word "institutions" by Mah. 20 of 1986, s.
35(a)(ii).
7. Sub-sections (2) and (3) weresubstitutedfor sub-sections (2) to (5) and the Explanation
byMah. 27 of 1971, s. 4(b)((i).
8. Sub-sections (2), (2A), (2B) weresubstitutedfor sub-section (2) by Mah. 20 of 1986, s.
35(b).
9. Proviso was added byMah. 4 of 2001, s. 3, (w.e.f. 13-11-2000).
10. Proviso deleted by Mah. 27 of 1996, s. 4(9), (w.e.f. 5-9-1996).
Section 73H - Responsibility of committee to hold election before expiry of term
1[ 73H. Responsibility of committee to hold election before expiry of term
( 1) It shall be the duty of the committee of every society to arrange for holding the
election of its members before the expiry of its term.
( 2)2[Where there is a wilful failure on the part of the committee to hold the election to
the committee before the expiration of its term, the committee.] shall cease to function on
the expiration of its term and the members thereof shall cease to hold office and the
Registrar may himself take over the management of the society or appoint an
Administrator (who shall not be from amongst the members of the committee the term of
which has so expired) and the Registrar or Administrator shall hold election within a
period of six months and the committee shall be constituted before the expiration of that
period.]
Footnote:
1. Section 73 H was inserted by Man. 20 of 1986, s. 36.
2. These words were sub stituted for the words "The committee" by Mah. 4 of 2001,
(w.e.f. 14 - 8 - 2000).
Section 74 - Qualification and appointment of Manager, Secretary and other officers
of societies and Chief Officer and Financial Officer for certain societies
1[ 74. Qualification and appointment of Manager, Secretary and other officers of
societies and Chief Officer and Financial Officer for certain societies
( 1) The qualifications for appointment of the Chief Executive Officer, Finance Officer,
Manager, Secretary, Accountant or any other officer of a society or a class of societies
and hi s emoluments and perquisites shall be such as may be determined by the Registrar,
from time to time.
( 2) In the society or class of societies, as the State Government may, from time to time,
notify in the Official Gazette, there sh all be a Chief Executive Officer and a Finance
Officer, who sh all be appointed by the society from a panel of persons selected by a
body of such persons not exceeding five as may be prescribed.
( 3) The Chief Executive Officer so appointed sh all be ex-officio me mber of the
committee but he sh all have no right to vote at the meeting of the committee.]
Footnote:
1. Section 74 was sub stituted by Mah. 20 of 1986, s. 37.
Section 75 - Annual general meeting
(1) Every societyshall,within a period of three months next after the date fixed for
making up itsaccounts for the year under the rules for the time being in force, call
ageneral meeting of its members:
1 [Provided that, theRegistrar may, by general or special order, extend the period
forholding such meeting for a further period not exceeding threemonths however, in the
case of the specified societies and urban co-operativebanks such extension shall be
granted only after recording the reasons inwriting and after obtaining the previous
approval of the Government forgranting such extension.]
Provided further that if in the opinion of theRegistrar, no such extension is necessary, or
suchmeeting isnot called by the society within the extended period (if any) granted
byhim, theRegistrar or any person authorised by him may call, suchmeeting inthe manner
prescribed, and that meetingshall bedeemed to be a general meeting duly 2 [called by the
society,and the Registrar may order that the expenditure incurred in calling such
ameetingshall be paidout of the funds of the society or by such person or persons who in
the opinionof the Registrar, were responsible for the refusal or failure to convene
thegeneral meeting].
(2) At every annual generalmeeting of asociety, the committee shall lay before the society
3 [a statementshowing thedetails of the loans (if any) given to any of the members ofthe
committee or any member of the family (as defined in the Explanation4 [to clause (v) of
sub-section (1) of section 73FF of any committee-member (including a society orfirm or
company of which such member or member of his family is a member, partner or
director, as the case may be), andthe details of re-payment of loan made, during the last
preceding year and theamount outstanding at the end of that year,] and] a balancesheet
and profit and loss account forthe year in the manner, prescribed by the Registrar by
general or specialorder for any class or classes ofsocieties.
Explanation.--Inthe case of a society not carrying on business for profit; an income
andexpenditure account shall be placed before the society at the annual generalmeeting
instead of profit and lossaccount, and all references to profit, and loss account and
to"profit" or "loss" in this Actshall be construed in relation to suchsociety as references
respectively to the "5 [excess of] income over expenditure", and"excess of expenditure
over income".
(3) There shall be attached to every balancesheet laid before the society ingeneral
meeting,a report by its committee with respect to (a) the state of the society'saffairs; (b)
the amounts, if any, which it proposes to carry to any reserveeither in such balance sheet,
or any specific balance sheet; and (c) the amounts, if any, which it recommends,should be
paid by way of dividend,bonus or honoraria to honorary workers. The committee's
reportshall also deal with any charges,which have occurred during the year for which the
accounts are made up, in thenature of the society's business the committee's reportshall be
signed by its Chairman, orany other member authorised to sign on behalf of the
committee.
(4) At every annual generalmeeting the balancesheet, the profit and loss account 6 [the
audit memorandum submitted by the auditor appointed under section81] and the
committee's reportshall be placed for adoption and suchother business will be transacted
asmay be laid down in the by-laws and of which due notice has been given.
(5) If default is made, in calling a generalmeeting within the period or 'as thecase may be'
extended period 'prescribed under sub-section (1)' or in complying with subsections (2),
(3) or (4) the Registrar may byorder declare any officer ormember of the committee
whose duty itwas to call such a meeting or comply with sub-section (2), (3) or (4) and
who without any reasonable excuse failed tocomply with any of the aforesaid subsections
disqualified for being elected and forbeing any officer or member of the
committee for such period not exceeding three years, as hemay specify in such an order
and, if the officer is a servant of the society, impose a penaltyon him to 7 [pay] an amount
not exceeding one hundred rupees.Before making an order under this sub-section, the
Registrarshall give, or cause to be given, areasonable opportunity to the person concerned
of showing cause against the action proposed to be takenin regard to him.
(6) Any penalty imposed undersub-section (5) or under 8 (section76], may be recovered
in the manner provided by the9 [Code of Criminal Procedure,1973], for therecovery of
fines imposed by a Magistrate, as ifsuch fine was imposed by the Magistrate himself.
Footnote:
1. This proviso wassubstitutedby Mah. 41 of 2000, s. 4, (w.e.f. 23-8-2000).
2. This portion wassubstitutedfor the words "called by the society" by Mah. 33 of 1963, s.
16(a).
3. This portion wasinserted by Mah. 27 of 1969, s. 13.
4. This portion wassubstitutedfor the words, brackets and figure "to section (6) of any
committeemember,during the last preceding year," by Mah. 20 of 1986, s. 38(a).
5. These words wereinserted by Mah. 33 of 1963, s. 16(a).
6. These words and figureswere substituted for the words "the auditor'sreport" by Mah.
33 of 1963, s. 16(c).
7. This word was inserted,by Mah. 33 of 1963, s. 16(d).
8. This wassubstitutedfor the words, "the next succeeding section" by Mah. 20 of 1986, s.
38(b)(i).
9. These words and figuressubstitutedfor the words and figures "Code of Criminal
Procedure, 1898", by Mah. 20 of 1986, s. 38(b)(ii).
Section 76 - Special general meeting
(1) A special general meeting may be called at any time by the Chairman or by a majority
of the committee and shall be called within one month--
(i) on a requisition in writing of one-fifth of the members of the society or of members
the number of which is specified in the bye-laws for the purpose, whichever is lower, or
(ii) at the instance of the Registrar, or
(iii) in the case of a society, which is a member of a federal society, at the instance of the
committee of such federal society.
(2) Where any officer or a member of the committee, whose duty it was to call such
meeting without reasonable excuse, fails to call such meeting, the Registrar may by order
declare such officer or member disqualified for being a member of the committee for
such period not exceeding three years, as he may specify in such order; and if the officer
is a servant of the society, he may impose on him a penalty not exceeding one hundred
rupees. Before making an order under this sub-section, the Registrar shall give, or cause
to be given a reasonable opportunity to the person concerned of showing case against the
action proposed to be taken in regard to him.
(3) If a special general meeting of a society is not called in accordance with the
requisition referred to in sub-section (1) the Registrar or any person authorised by him in
this behalf, shall have power to call such meeting, and that meeting shall be deemed to be
a meeting duly called by the committee.
(4) The Registrar shall have power to order that the expenditure incurred in calling a
meeting under sub-section (3) shall be paid out of the funds of the society or by such
person or persons who, in the opinion of the Registrar, were responsible for the refusal or
failure to convene the meeting.
Section 77 - Acts of societies etc., not to be invalidated by certain defects
(1) No act of a society or a committee or any officer, done in good faith in pursuance of
the business of the society shall be deemed to be invalid by reason only of some defect
subsequently discovered in the organisation of the society, or in the constitution of the
committee, or in the appointment or election of an officer, or on the ground that such
officer was disqualified for his office.
(2) No Act done in good faith by any person appointed under this Act, the rules and the
bye-laws shall be invalid merely by reason of the fact that his appointment has been
cancelled by or in consequence of any order subsequently passed under this Act, Rules
and the Bye-laws.
(3) The Registrar shall decide whether any act was done in good faith in pursuance of the
business of the society; and his decision thereon shall be final.
Section 77A - Appointment of member of committee, new committee or
Administrator, where there is failure to elect member, to constitute committee or
where committee does not enter upon office
1 [77A. Appointment ofmember ofcommittee, new committee or Administrator,
where there is failure to electmember, toconstitute committee or where committee
does not enter upon office
(1) Where theRegistrar is satisfied that,--
2 [(1-a) a provisional committeehas failed to make necessary arrangements for holding
election for theconstitution of the first committee, before the expiry of its term as
specifiedin sub-section (1A) of section 73;]
(a) at the first constitution of the committee ofany society there is a failure to elect all or
any of themembers ofthe committee;
(b) the term3 [or extended term as thecase may be,] of the committee of any society or of
any of itsmembers hasexpired or for any other reason election is heldand there is a failure
to elect all or any of the members required to fillthe vacancies;
(c)any committee isprevented from entering upon office;
(d) anew committee has failedto enter upon office on the date on which the term of office
of the existingcommittee expired; or
(e)4 [* * *]
5 [(f) where more than onegroup of persons in a society is claiming to be elected as the
committeemembers andproceedings in respect thereof have been filed in the Co-operative
Court;]
the Registrar may, either suo-motu or on the application of any officer of the society,
byorderappoint--
(i) any member ormembers ofthe society to be the member or members of the committee
tofill the vacancies:
(ii) a committee, consisting of not more than threemembers ofthe society; or one or more
administrators, who need not bemembers ofthe society, to manage the affairs of the
society till a new committee entersupon office:
Provided that, before making suchorder, theRegistrar shall publish a notice on the notice
board at thehead office of the society, inviting objections and suggestions with respect
tothe proposed order within a period specified in the notice andconsider all objections
and suggestions received byhim withinthat period:
Provided further that, itshall not benecessary to publish such notice in any case where
Registrar is satisfied thatimmediate action is required to be taken or that it is not
reasonable practicalto publish such notice.
(2) The committee oradministrator so appointed shall,subject tothe control of the
Registrar and to such instructions as he may, from time totime, give, have power to
discharge all or any of the functions of thecommittee or of any officer of the society and
take all such action as may berequired to be taken in the interests of the society.
6 [(3) The Committee orAdministrator so appointed shall hold office for aperiod of six
months from the date of assuming the management of the societyand shall make
necessary arrangements for constituting anew committee within the said period and for
enabling the new committeeincluding any new committee referred to in clause (f)of subsection
(1), which isdetermined by the Court to have been legally elected, to enter upon
office.]
7 [Provided that, if a newcommittee is not, or can not be constituted at the expiry or
termination of theterm of office of the committee or Administrator, for any reason
beyond thecontrol of the committee or Administrator, the term of office of the
committeeor Administrator, as case may be, shall be deemed to beextended, until the new
committee is duly constituted.]
8 [(4) The Registrarshall havethe power to change the committee or any or all members
thereof or any orall the administrators appointed under sub-sections (1)athisdiscretion
even before the expiry of the period specified in theorder madeunder sub-section (1).
(5) The provisions ofsub-section (2A)of section 78shall apply mutatis mutandis for
fixation ofremuneration to be paid to the members or administratorsappointed under subsection
(1).]
Footnote:
1. Section 77A was inserted by Mah. 36 of 1975,s. 5.
2. Clause (1-a) was inserted by Mah. 13 of 1994,s. 6.
3. These words wereinserted by Mah. 20 of 1986, s. 39(a)(i).
4. Clause (e) was deletedby Mah. 34 of 2001, (w.e.f. 7-9-2001) s. 7.
5. Clause (f) was inserted,by Mah. 20 of 1986, s. 39(a)(ii).
6.Sub-section (3) wassubstituted,by Mah. 20 of 1986, s. 39(b).
7. This proviso was addedby Mah. 7 of 1997, s. 10.
8.Sub-sections(4)and (5) were added, by Mah. 20 of 1986, s. 39(c).
Section 78 - Power of removal of committee or member, thereof
78.1 [Power of removal of committee ormember, thereof]
2 [(1) If, in the opinion ofthe Registrar, the committee of any society or anymember
ofsuch committee makes default, or is negligent in the performance of the dutiesimposed
on it or him by this Act or the rules or the bye-laws, orcommits any act which is
prejudicial to the interests of the society or itsmembers, orwilfully disobeys directions
issued by the State Government, or by theRegistrar for the purposes of securing proper
implementation of co-operativepolicy and development programme approved or
undertaken by the State Governmentor is otherwise not discharging its orhisfunctions
properly and diligently 3 [or where a situation hasarisen in which the committee or any
member of such committeerefuses or has ceased to discharge its or his functions] and
thebusiness of the society has or is likely to come to a stand-still or where anymember
ofsuch committee stands disqualified by or under this Act for being amember,
theRegistrar may, after giving the committee or the member, as the case may be,an
opportunity of stating its or his objections, if any,within 15 days from the date of receipt
of notice and afterconsultation with the federal society to which the society is affiliated,
byorder--
(a) (i) remove the committee, and
(ii) appoint a committee consisting of three ormore members (who shall not be
themembers ofthe committees so removed) of the society in its place, or appoint one or
moreAdministrators who need not be the members of the society, butwho shall not be the
members of the committee soremoved, to manage the affairs of the society for a period
not exceeding sixmonths, which period, at the discretion of the Registrar, be extended by
afurther period not exceeding three months so, however, that the total perioddoes not
exceed nine months in the aggregate.:
Provided that, the Registrarshall havethe power to change the committee or any member
thereof or theAdministrator or Administrators appointed under paragraph (ii)
athisdiscretion even before the expiry of the period specified in theorder madeunder this
sub-section:
(b)remove themember andappoint any person as member of such committee inhis
place,or direct the society to elect or appoint a member inhis place,for the remainder of
the term of office of the member so removed.]
4 [Provided that, themember whohas been so removed, shall not be eligible to be reelected,
re-appointed,re-nominated, or re-co-opted, as a member of the Committeetill the
expiry of the period of next one full term of the committee from thedate on which he has
been so removed or till such lesser period as may be laiddown under the provisions of
section 73FFF or 144E, as the case may be.]
5 [(1A) When a notice isissued against any committee or member undersub-section (1),if
resignationfrom any office is tendered by the committee or member, itshall not bevalid or
effective until two months have elapsed from the date of issue of thenotice or until it is
permitted to be accepted by the Registrar, whichever isearlier.]
(2) The committeeor Administrator so appointed shall,subject tothe control of the
Registrar and to such instructions as he may from time totime give, have power to
exercise all or any of the functions of the committeeor of any officer of the society and
take all such action as may be required inthe interests of the society.
6 [The committee orAdministrator appointed as aforesaid shall, notwithstandinganything
contained in the bye-laws, have power to call a special generalmeeting ofthe society to
review or to reconsider the decision or the resolution taken orpassed at the general
meetings called by the previous committee or toendorse action taken by it.]
7 [(2A) The Registrar may fixthe remuneration payable to the administrators and any
expenses of managementwhich shall be payable out of the funds of the societywithin
such time and at such intervals as the Registrar may fix, and if suchremuneration or
expenses are not paid within such time or at intervals theRegistrar may direct the person
having custody of the funds of the society topay to the administrators such remuneration
and expenses in priority to anyotherpayments (except land revenue, any arrears of land
revenue, or any sumrecoverable from the society as arrears of land revenue) and heshall,
so faras the funds to the credit of the society allow, comply with theorders ofthe
Registrar.]
(3) If at anytime during any period, or extended period referred to insub-section (1),it
appearsto the Registrar, that it is no longer necessary to continue to carry on theaffairs of
the society as aforesaid the Registrar may, by anorder 8 [****] direct that themanagement
shall terminate; and on suchorder beingmade, the management of the society shall be
handed over to anew committee duly constituted.
(4) The committee oradministrator shall, at the expiry or termination of it orhis term
ofoffice, arrange for the constitution of a new committee in accordance with thebye-laws
of the society:
9 [Provided that, if a new committee is not, orcannot be, constituted at the expiry or
termination of the term of office ofthe committee or administrator, for any reason beyond
the control of thecommittee or administrator, the term of office of the committee or
theadministrator, as the case may be, shall be deemed to be extended, until the
newcommittee is duly constituted.]10
(5) All acts done or purported to be done by the committeeor administrator during the
period the affairs of the society are carried on bythe committee or administrator
appointed under sub-section (1), shall be binding on the new committee.
Footnote:
1.This marginal note wassubstituted by Mah. 33of 1963,s. 17(d).
2.Sub-section (1)wassubstituted, by Mah. 20of 1986,s. 40.
3.This portion was inserted by Mah. 10of 1988,s. 15.
4.This proviso wassubstituted by Mah. 7of 1997,s. 11.
5.Sub-section (1A)was inserted by Mah. 27of 1969,s. 14(b).
6.This portion was added by Mah. 33of 1963,s. 17(b).
7.Sub-section (2A)was inserted by Mah. 33of 1963s. 17(c).
8.The words "published in the OfficialGazette" were deleted by Mah. 27of 1969,s. 14(c).
9.This proviso was deemed always to have been added by Mah. 48of 1972,s. 2.
10.For validation of Acts, see Mah. 48of 1972,s. 3.
Section 79 - Registrar's power to enforce performance of obligations
(1) The registrar may direct any society or class Of societies, to keep proper books of
accounts with respect to all sums of money received and expended by the society, and the
matters in respect of which the receipt and expenditure take place all sales and purchases
of goods by the society, and the assets and liabilities of the society, and to furnish such
statements and returns and to produce such records as he may require from time to time;
and the officer or officers of the society shall be bound to comply with his order within
the period specified therein.
(2) Where any society is required to take any action under this Act, the rules or the byelaws,
or to comply with an order made under the foregoing sub-section, and such action
is not taken--
(a) within the time provided in this Act, the rules or the bye laws, or the order as the case
may be, or
(b) where no time is so provided, within such time, having regard to the nature and extent
of the action to be taken, as the Registrar may specify by notice in writing.
the Registrar may himself, or through a person authorised by him, take such action, at the
expense of the society; and such expense shall be recoverable from the society as if it
were an arrear of land revenue.
(3) Where the Registrar takes action under sub-section (2), the Registrar may call upon
the officer or officers of the society whom he considers to be responsible for not
complying with the provisions of this Act, the rules or the bye-laws, or the order made
under sub-section (1) and after giving such officer or officers an opportunity of being
heard, may require him or them to pay to the society the expenses paid or payable by it to
the State Government as a result of their failure to take action and 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.
Section 79A - Government's power to give directions in the public interest, etc.
1 [79A. 2 [Government's power] to give directions in thepublic interest, etc.
(1) 3 [Ifthe State Government, on receipt of a report from the Registrar orotherwise,is
satisfied] that in the public interest or for the purposes of securingproper implementation
of co-operative production andotherdevelopment programmes approved or undertaken by
Government, or to secure theproper management of the business of the society generally,
or for preventingthe affairs of the society being conducted in a manner detrimental to
theinterests of the members or of the depositors or the creditorsthereof, it is necessary to
issue directions to any class of societiesgenerally or to any society or societies in
particular, 4 [the State Government mayissue] directions to them from time to time, and
all societies or the societiesconcerned, as the case may be, shall be bound to complywith
such directions.
(2) 5 [The State Governmentmay] modify or cancel any directions issued under
subsection (1),and inmodifying or cancelling such directions may impose such conditions
as 6 [it may deem fit.]
7 [(3) Where the Registrar issatisfied that any person was responsible for complying with
any directions ormodified directions issued to a society under sub-sections (1) and (2)
and he has failedwithout any good reason or justification, to comply with the directions,
theRegistrar may by order--
(a) if the person is amember ofthe committee of the society, remove the member from the
committeeand appoint any other person as member of the committee forthe remainder of
the term of his office and declarehim to bedisqualified to be such member for a period of
sixyears from the date of the order:
(b) if the person is an employee of the society,direct the committee to remove such
person from employment of the societyforthwith, and if any member or members of the
committee,without any good reason or justification, fail to comply with thisorder,remove
the members, appoint other persons asmembers anddeclare them disqualified as provided
in clause (a) above:
Provided that, before making anyorder underthis sub-section, the Registrarshall give
areasonable opportunity of being heard to the person or persons concerned andconsult the
federal society is affiliated.
Any order made by the Registrarunder this section shall be final.]
Footnote:
1. Section 79A was inserted by Mah. 27 of 1969, s. 15.
2. These words weresubstitutedfor the words "Registrar's power" by Mah. 36 of 1975,s.
5(c).
3. These words weresubstitutedfor the words "Subject to the rules made in that behalf,
where theRegistrar is satisfied" by Mah. 27 of 1971, s. 5(a)(i).
4. These words weresubstitutedfor the words "he may issue" by Mah. 27 of 1971, s.
5(a)(ii).
5. These words weresubstitutedfor the words 'The Registrar may" by Mah. 27 of 1971, s.
5(b)(i).
6. These words weresubstitutedfor the words "he may deem fit", by Mah. 27 of 1971, s. 5
(b)(ii).
7.Sub-section (3) was added by Mah. 36 of 1975, s. 6.
Section 79AA - Registrar's powers to give directions to frame regulations
1 [79AA. Registrar's powers togive directions to frame regulations
(1) If the Registrar or anofficer not below the rank of District Deputy Registrar is of the
opinion that,having regard to the financial condition of the society and financial interestof
Government therein, it is necessary to regulate the manner of carrying onits trade or
business, he may, subject to any rules made inthis behalf, direct such society to make
regulations in that behalf and forwardthem to him for approval.
(2) On receipt of theregulations made by the society, the Registrar or such officer may
approve themwith or without modifications. On approval of such regulations, the
societyshall carry onits business in accordance with such regulations.
(3) If any society fails toforward such regulations to the Registrar or such officer when
directed byhim undersub-section (1)within aperiod of three months from the date on
which the direction is given, theRegistrar or such officer shallhimself makeor cause to be
made such regulations and require the society to carry on itsbusiness in accordance with
such regulations and thereupon the societyshall bebound to comply with such
requirement.]
Footnote:
1.Section 79AAwas inserted by Mah. 20of 1986,s. 41.
Section 79B - Registrar's Power to remove member for failure to supply his
agricultural produce to processing society
1 [79B. Registrar's Power toremove member for failure to supplyhisagricultural
produce to processing society
(1) Where anyproducer-member of a processing society fails to supplyhisagricultural
produce to the society in accordance with the provisions of bye-lawsof the society, the
Registrar may, on complaint made by the society or suomotu, issue a notice to the
member toshow cause,within a period specified in the notice, why for such failure
heshould notbe removed from the membership of the society.
(2) After holding suchinquiry as he thinks fit and giving a reasonable opportunity of
being heard tothe member, if the Registrar is satisfied that themember hasfailed, without
any good reason or justification, to supplyhisagricultural produce to the society in
accordance with the provisions of thebye-laws, the Registrar may by order remove the
personconcerned as a member of the society with effect from such date asmay be
specified in the order and thereupon theperson shall cease to be a member of the society
onand from that date. Any order made by the Registrarunder this section shall be final.]
Footnote:
1.Section 79Bwas inserted by Mah. 36of 1975,s. 7.
Section 80 - Registrar's power to seize records etc.
(1) Where theRegistrar is satisfied that the books and records of a society are likely to
besuppressed, tampered with or destroyed, or the funds and property of a societyare
likely to be misappropriated or misapplied, the Registrar or the personauthorised by him
may apply to the Executive Magistrate withinwhose jurisdiction the society is functioning
for seizing and taking possessionof the records and property of the society.
(2) On receipt of anapplication under sub-section (1) 1 [theMagistrate shall forthwith
consider such application and, ifsatisfied that immediate action is required, shall
authorise] any policeofficer, not below the rank of a sub-inspector, to enter andsearch any
place where the records and property are kept or likely to be kept,and to seize them and
hand over possession thereof to the Registrar or theperson authorised by him, as the case
may be.
2 [(3) Where the Registrar oran officer not below the rank of District Deputy Registrar
(hereinafter referred to inthis section as "the said officer") is satisfied that
immediateaction is required to be taken or that the ExecutiveMagistrate having
jurisdiction is not likely to be available at thehead-quarters for a consecutive period of
three days or the books and recordsof a co-operative society are in the immediate danger
of being tampered with orfunds and property of a society are in the immediate danger of
being mis-appropriated or misapplied, the Registrar or the said officer
may,notwithstanding anything contained in sub-sections (1)and (2), make anorder toseize
such books, records or funds of the society eitherhimself orthrough an officer authorised
by him in this behalf, and forthat purpose the Registrar or the said officer or the officer so
authorised mayafter reasonable notice at any reasonable time enter and search without
warrantany premises where he believes such books, records or funds to be and andinspect
and seize such books, records or funds, and the officer or officers ofthe society
responsible for the custody of such books, records and fundsshalldeliver such books,
records or funds forthwith to the Registrar, the saidofficer or the officer so
authorised,who shall acknowledge receipt of the books, records orfunds of the society so
seized. The Registrar, the said officer or the officer soauthorised, may, for the purpose of
execution of the saidorder,request the officer-in-charge of the nearest police station to
givehimnecessary assistance and such police officer shall thereupon givehim
suchassistance.]
Footnote:
1.These words weresubstituted for thewords "the Magistrate may authorise" by Mah. 3of
1978,s. 18.
2.Sub-section (3)was added by Mah. 20of 1986,s. 42.
Chapter: VIII - AUDIT, INQUIRY, INSPECTION AND SUPERVISION
Section 81 - Audit
1[( 1) (a) The Registrar sh all audit, or cause to be audited at least once in each cooperative
year, by a person authorised by hi m by general or special ord er in writing in
this behalf the account of every society which has been given financial assistance
including guarantee by the State Government,2[or Government undertakings, from time
to time, and the accounts of the apex societies, State and District Level Federal Societies,
District Central Co-operative Banks, Co-operative Sugar Factories, Urban Co-operative
banks, Co-operative Spinning Mills, District and Taluka Co-operative Sale and Purchase
Organisations, and any such Society or class of Societies which the State Government
may, from time to time, by notification in the Official Gazette, specify.]
(b) The societies other than the societies referred to in clause (a) sh all arrange to get their
account audited, at least once in each co-operative year by an auditor from the panel of
auditors maintained by the Registrar, or by a chartered accountant holding a certificate in
co-operative audit issued by the Institute of Chartered Accountants of India:
3[* * * * * *]
Provided that every third year the accounts of such societies sh all be audited by the
Registrar of by a person authorised by him in this behalf.
Provided4[* * *] that, the Registrar may, for reasons to be recorded in writing, audit or
cause to be audited accounts of any such societies or any year and at any time.]
5[(2) The audit under sub -section ( 1) shall include examination or verification of the
following items, namely:--
(i) overdues of debts, if any;
(ii) cash balance and securities and a valuation of the assets and liabilities of the society;
(iii) whether loan and advances and debts made by the society on the basis of security
have been properly secured and the terms on which such loans and advances are made or
debts are incurred are not prejudicial to the interest of the society and its members;
(iv) whether transactions of the society which are represented merely by book entries are
not prejudicial to the interest of the society;
(v) whether loans and advances made by the society have been shown as deposits;
(vi) whether personal expenses have been charged to revenue account;
(vii) whether the society has incurred any expenditure in furtherance of its objects;
(viii) whether the society has properly utilised the financial assistance granted by
Government or Government undertakings or financial institutions, for the purpose for
which such assistance was granted;
(ix) whether the society is properly carrying-out its objects and obligations towards
members.]
6[(2A) Where, in the opinion of the State Government, it is necessary in the public
interest to do so in relation to any society or class of societies for ensuring management
thereof in accordance with sound business principles or prudent commercial practices, the
State Government may, by ord er, direct7[that such society or class of societies sh all
prepare and maintain its accounts in the form determined by the State Government, from
time to time and] that cost audit or performance audit or both, of such society or class of
societies, as may be specified in the ord er, shall be conducted.
( 2B) Where any ord er is issued under sub -section ( 2A), the Registrar sh all cause such
audit of such society or class of societies to be conducted by a cost accountant who is a
me mber of the Institute of Cost and Works Accountants of India constituted under
section 3 of the Cost and Works Accountants Act, 1959.]
( 3)8[(a) The Registrar or the person auhorised sh all, for the purpose of audit, at all times
have access to all the books, accounts, documents, papers, 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,
papers, securities, cash or other properties, to produce the same at any place at the
headquarters of the society or any branch thereof.
8[(b) The Registrar sh all be competent to depute Flying Squard to a society or societies
for examination of books, records, accounts, and such other papers and for verification of
cash balance. The report of the Flying Squad shall be deemed to be an audit report for the
purpose of taking further action, if necessary.
(c) The Registrar or the person authorised by him in this behalf may carry out or cause to
be carried out the test audit of the accounts of any society. The test audit shall include the
examination of such items as may be prescribed.]
( 4) Every person who is, or has at any time been, an officer or employee of the society,
and every member and past member of the society, shall furnish such information in
regard to the transaction and working of the society as the Registrar, or the person
authorised by him, may require.
( 5) The auditor appointed under sub-section ( 1) shall have the right to receive all notices
and every communication relating to the annual general meeting of the society and to
attend such meeting and to be heard thereat, in respect of any part of the business with
which he is concerned as auditor.
9[(5A) If, during the course of audit of any society, the auditor is satisfied that some
books of accounts or other documents contain any incriminatory evidence against past or
present officer or employee of the society the auditor shall immediately report the matter
to the Registrar and, with previous permission of the Registrar, may impound the books
or documents and give a receipt thereof at the society.
( 5B) The auditor shall submit an audit memorandum duly signed by him to the society
and to the Registrar in such form as may be specified by the Registrar, on the accounts
examined by him and on the balance sheet and profit and loss account as on the date and
for the period up to which the accounts have been audited, and shall state whether in his
opinion and to the best of his information and according to the explanation given to him
by the society the said accounts give all information required by or under this Act and
present the true and fair view of the financial transaction of the society.]
( 6) If it appears to the Registrar, on an application by a society or otherwise, that it is
necessary or expedient to re-audit any accounts of the society, the Registrar may by order
provide for such re-audit and the provisions of this Act, applicable to audit of accounts of
the society shall apply to such re-audit.
Footnote:
1. Sub -section ( 1) was sub stituted, by of Mah. 20 of 1986, s. 43(a).
2. This portion was sub stituted for the words "Government undertakings, or financial
institution, from time to time by Mah. 13 of 1994, s. 8.
3 . This proviso deleted by Mah. Co-operative Societies (Amendment) Act, 1995 s. 4 (a).
Act XXVII of 1996 MGG 1996 5 - 9 - 1996 pt. 8 p. 775. Deleted proviso read as under:--
Provided that every third year the accounts of such societies shall be audited by the
Registrar or by a person authorised by him in this behalf
4 . The word "further" was deleted by Mah. Co-operative Societies (Amendment) Act,
1995 s. 4(b).
5. Sub -section ( 1) was sub stituted, by of Mah. 20 of 1986, s. 43(a).
6 . Sub -sections ( 2 A) and ( 2B) were inserted, by Mah. 20 of 1986, s. 439(c).
7 . This portion was inserted by Mah. 10 of 1988, s. 16.
8. Sub -section ( 3) was re-lettered as clause (a) thereof and clause (b) and (c) were
added, by Mah. 20 of 1986, s. 43(d).
9. Sub -sections ( 5A) and ( 5B) were inserted, by Mah. 10 of 1988, s. 439(e).
Section 82 - Rectification of defects in accounts
If the result of the audit held under the last preceding section discloses any defects in the
working of a society the society shall within three months from the date of audit report,
explain to the Registrar the defects, or the irregularities, pointed out by the auditor, and
take steps to rectify the defects and remedy irregularities and report to the Registrar the
action taken by it thereon. The Registrar may also make an order directing the society or
its officers to take such action, as may be specified in the order to remedy the defects
within the time specified therein. Where the society concerned is a member of a federal
society, such order shall be made after consulting the federal society.
Section 83 - Inquiry by Registrar
1[(1) The Registrar may of his own motion, and shall on the application of one-third of
the members of a society, himself or by a person duly authorised by him in writing in this
behalf, hold an inquiry into the constitution, working and financial conditions of a
society.
( 2) Before holding any such inquiry on an application, the registrar may2[having regard
to the nature of allegations and the inquiry involved, require the applicant to deposit with
him such sum of money as he may determine,] towards the cost of the inquiry. If the
allegations made in the application are substantially proved at the inquiry, the deposit
shall be refunded to the applicant, and the Registrar may under section 85, after
following, the procedure laid down in that section, direct from whom and to what extent
the cost of the enquiry should be recovered. If it is proved that the allegations were false,
vexatious or malicious, the Registrar may likewise direct that such cost shall be recovered
from the applicant. Where the result of the inquiry shows that the allegations were not
false, vexatious or malicious, but could not be proved, such cost may be borne by the
State Government.]
( 3) (a) All officers, members and past members of the society in respect of which an
inquiry is held, and any other person who, in the opinion of the officer holding the
enquiry is in possession of information, books and papers relating to the society, shall
furnish such information as in their possession, and produce all books and papers relating
to the society which are in their custody or power, and otherwise give to the officer
holding an inquiry all assistance in connection with the inquiry which they can
reasonably give.
(b) If any such person refuses to produce to the Registrar or any person authorised by him
under sub-section ( 1), any book or papers which it is his duty under clause (a) to produce
or to answer any question which put to him by the Registrar or the person authorised by
the Registrar in pursuance of sub-clause (a) the Registrar or the person authorised by the
Registrar may certify the refusal and the Registrar after hearing any statement which may
be offered in defence punish the defaulter with a penalty not exceeding five hundred
rupees. Any sum imposed as penalty under this section shall on the application by the
Registrar or the person authorised by him to a Magistrate having jurisdiction be
recoverable by the Magistrate as if it were a fine imposed by himself.
( 4) The result of any inquiry under this section shall be communicated to the society
whose affairs have been investigated.
( 5) It shall be competent for the Registrar to withdraw any inquiry from the officer to
whom it is entrusted and to hold the inquiry himself or entrust it to any other person as he
deems fit.
Footnote:
1. Sub -sections ( 1) and ( 2) were sub stituted by Mah. 3 of 1974, s. 19.
2. These words were sub stituted for the words, letters and figures "require the applicant
to deposit with hi m a sum of Rs. 100 " by Mah. 20 of 1986, s. 44.
Section 84 - Inspection of books of indebted society
( 1) On the application of a creditor of a society who,--
(a) satisfies the Registrar that the debt is a sum then due, and that he has, demanded
payment thereof and has not received satisfaction within reasonable time, and
(b) deposits with the Registrar such sum as the Registrar may require as security for the
costs of any inspection of the books of the society, the Registrar may, if he thinks it
necessary, inspect or direct some person authorised by him by order in writing in this
behalf to inspect the books of the society.
( 2) The Registrar shall communicate the result of any inspection to the applicant, and to
the society whose books have been inspected.
( 3) It shall be competent for the Registrar to withdraw any order of inspection from the
officer to whom it is entrusted, and to inspect himself or entrust it to any other person as
he deems fit.
1[( 4) The powers of inspection conferred on the Registrar by this section may be
exercised by him of his own motion in respect of any society, which is indebted to
Government or for which share capital (wholly or partly) is provided by Government or
where any financial interest of Government is otherwise involved.]
Footnote:
1. Sub -section ( 4) was added by Mah. 3 of 1974, s. 20.
Section 85 - Costs of inquiry and inspection
(1) Where an inquiry is held under section 83 or an inspection is made, under the last
preceding section, the Registrar may apportion the costs, or such part of the costs, as he
may think just between the society, the members or creditors demanding the inquiry or
inspection, the officers or former officers and the members or past members or the estates
of the deceased members of the society:
Provided that,--
(a) no order of apportionment of the costs shall be made under this section unless the
society or person or the legal representative of the deceased person liable to pay the costs
thereunder, has or have been heard, or has or have had a reasonable opportunity of being
heard;
(b) the Registrar shall state in writing the grounds on which the costs are apportioned.
(2) No expenditure from the funds of a society shall be incurred, for the purpose of
defraying any costs in support of any appeal preferred by any person other than the
society against an order made under the foregoing sub-section.
Section 86 - Recovery of costs
Any sum awarded by way of costs under the last preceding section, may be recovered, on
an application by the Registrar to a Magistrate having jurisdiction in the place where the
person from whom the money is claimable resides or carries on business, and such
Magistrate shall proceed to recover the same in the same manner as if it were a fine
imposed by himself.
Section 87 - Registrar to bring defects disclosed in inquiry or inspection to notice of
society
(1) If the result of any inquiry held under section 83 or an inspection made under section
84 discloses any defects in the constitution, working or financial conditions or the books
of society, the Registrar may bring such defects to the notice of the society. The Registrar
may also make an order directing the society or its officers to take such action as may be
specified in the order to remedy the defects, within the time specified therein.
(2) The society concerned may within sixty days from the date of any order made by the
Registrar under the foregoing sub-section appeal against it to the State Government.
(3) The State Government may, in deciding the appeal, annul, reverse, modify or confirm,
the order of the Registrar.
(4) If a society fails to rectify the defects disclosed in the course of or as a result of an
audit under section 81 or fails to rectify the defects as directed by the Registrar, and
where no appeal has been made to the State Government within the time specified in the
order, or where on the appeal so made the State Government has hot annulled, reversed
or modified the order, the Registrar may himself take steps to have the defects rectified,
and may recover the costs from the officer or officers of the society who, in his opinion,
has or have failed to rectify the defects.
Section 88 - Power of Registrar to assess damages against delinquent promoters, etc.
( 1) Where, in the course of or as a result of an audit under section 81 or an inquiry under
section 83 or an inspection under section 84 or the winding up of a society, the Registrar
is satisfied on the basis of the report made by the auditor or the person authorised to make
inquiry under section 83 or the person authorised to inspect the books under section 84 or
the Liquidator under section 105 or other wise that any person who has taken any part in
the organisation or management of the society or any deceased, or past or present officer
of the society has, within a period of five years prior to1[the date of commencement of
such audit or date of ord er for inquiry, inspection or] winding up, misapplied or retained,
or become liable or accountable for, any money or property of the society, or has been
guilty of misfeasance or breach of trust in relation to the society, the Registrar or a person
authorised by him in that behalf may frame charges against such person or persons, and
after giving a reasonable opportunity to the person concerned and in the case of a
deceased person to his representative who inherits his estate, to answer the charge, make
an order requiring him to repay or restore the money or property or any part thereof, with
interest at such rate as the Registrar or the person authorised under this section may
determine, or to contribute such sum to the assets of the society by way of compensation
in regard to the misapplication, retention, misfeasance or breach of trust, as he may
determine.
( 2) The Registrar or the person authorised under sub- section ( 1) in making any order
under this section, may provide therein for the payment of the cost or any part thereof, as
he thinks just, and he may direct that such costs or any part thereof shall be recovered
from the person against whom the order has been issued.
( 3) This section shall apply, notwithstanding that the act is one for which the person
concerned may be criminally responsible.
Footnote:
1. These words were sub stituted for the words "date of such audit, inquiry, inspection or
ord er for" by Mah. 33 of 1963 s. 18.
Section 88A - Deposit towards fees of inquiry
1[ 88A. Deposit towards fees of inquiry
Where the Registrar on his own motion decides and orders an inquiry under section 83 or
proceeds or authorises to name inquiry under sections 88, he may, having regard to the
nature of allegations, and the inquiry, involved, require the society concerned to deposit
with him such sum of money as he may determine, towards the cost of inquiry. If the sum
so determined, is not deposited with the Registrar within 15 days from the date of receipt
of the order requiring the society to deposit the sum, it shall on a certificate issued by the
Registrar, be recoverable as an arrears of land revenue.]
Footnote:
1 . Section 88 A was inserted by Mah. 20 of 1986, s. 45.
Section 89 - Power to enforce, attendance etc.
The Registrar or the persons authorised by him, when acting under section 83, 84 or 88
shall have the power to summon and enforce the attendance of any person1[and
examining him on oath or affirmation or by affidavit] or to compel the production of any
document or other material object by the same means and in the same manner as is
provided in the case of a Civil Court under the Code of Civil Procedure, 1908.
Footnote:
1. These words were sub stituted for the words "to give evidence", by Mah. 33 of 1963, s.
19.
Section 89A - Power to inspect working of society
1 [89A. Power to inspect working of society
(1) It shall be competent for the Registrar to inspect orcause to be inspected the working
of any society to ensure that--
(a)the provisions of the Act, rules and bye-laws of the society are being properlyfollowed
by the society;
(b)therecords and books of accounts are kept in proper forms;
(c)the business of the society is being run on sound business principles;
(d)thesociety is following the co-operative principles and the directives ordirections given
by the State Government in accordance with the provisions ofthis Act and the rules made
thereunder:
Providedthat, inspection of the societies specified under section 73G shall be undertaken
by the Registrar or by theofficer not below the rank of 2 [Deputy Registrar] of Cooperative
Societiesauthorised by himin this behalf.
(2) For the purpose of supervision over the societies,the Registrar shallhave the power--
(a)to inspect the records and books of the accounts of any society and for thatpurpose he
shallhave, at all times, access to all the records and books of accounts of thesociety; and
(b)to summonany officer or employee who has the custody of the records or books of
accountsof the society to produce them before him.
(3) The State Government may levy supervision fees onany society or class of societies at
such rates, as the State Government may,having regard to the area of operation, the
nature of business and the objectsof the society, by notification in the OfficialGazette, fix
from time to time.
(4) Every society liable to pay the fees levied undersub-section (3) shall pay such fees by
such date and in such manneras the State Government may specify in the notification
issued undersub-section (3).
(5) The State Government may having regard to thefinancial position of any society or
class of societies by general or specialorder published in the Official Gazette exempt such
societyor class of societies from payment of such fees for such period as may bespecified
in such order or reduce or remit in whole or in part such fees.]
Footnote:
1.Section 89A was inserted by Mah. 20 of 1986,s. 46.
2. These words weresubstitutedfor the words "Joint Registrar" by Mah. 13 of 1994, s. 9.
Section 90 - Constitution or recognition of federal authority to supervise working of
societies
(1) The State Government may constitute or recognise one or more co-operative federal
authorities, in such manner as may be prescribed and subject to such conditions as the
State Government may impose, for the supervision of a society or a class of societies and
may frame rules for making grants to such an authority.
(2) The State Government may, by general or special order, require of a society or a class
of societies to make contribution of such sum every year as may be fixed by the Registrar
towards the recoupment of expenditure which the State Government or any person
authorised in that behalf has incurred or is likely to incur, in respect of supervision of
societies.
(3) A society to which sub-section (2) is applicable shall pay to such authority such fee as
may be prescribed within a reasonable time and, if it fails to pay such fee within a
reasonable, time the authority may recover it as if it were an arrear of land revenue.
CHAPTER IX
1SETTLEMENT OP DISPUTES
Footnote:
1. The heading was sub stituted by Mah. 20 of 1986, s. 47.
Chapter: IX - SETTLEMENT OP DISPUTES
Section 91 - Disputes
( 1) Notwithstanding1[anything contained] in any other law for the time being in force,
any dispute touching the constitution,2[elections of the committee or its officers other
than elections of committees of the specified societies including its officer], conduct of
general me etings, management or business of a society sh all be referred by any of the
parties to the dispute, or by a federal society to which the society is affiliated or by a
creditor of the society,3[to the co-operative Court) if both the parties thereto are one or
other of the following:--
(a) a society, its committee, any past committee, any past or present officer, any past or
present agent, any past or present servant or nominee, heir or legal representative of any
deceased officer, deceased agent or deceased servant of the society, or the Liquidator of
the society4[or the official Assignee of a de-registered society].
(b) a me mber, past me mber of a person claiming through a me mber, past me mber of a
deceased me mber of society, or a society which is a me mber of the society5[or a person
who claims to be a member of the society;]
6[(c) a person other than a me mber of the society, with whom the society, has any
transactions in respect of which any restrictions or regulations have been imposed, made
or prescribed under sections 43, 44 or 45, and any person claiming through such person;
(d) a surety of a me mber, past me mber or deceased me mber, or surety of a person other
than a me mber with whom the society has any transactions in respect of which
restrictions have been prescribed under section 45, whether such surety or person is or is
not a member of the society;)
(e) any other society, or the Liquidator of such a society7[or-de-registered society or the
official Assignee of such a de-registered society].
8[Provided that, an industrial dispute as denned in clause (k) of section 2 of the Industrial
Disputes Act, 1947, or rejection of nomination paper at the election to a committee of any
society other than a notified society under section 73 - 1 C or a society specified by or
under section 73 -G, or refusal of admission to me mbership by a society to any person
qualified therefor9[or any proceeding for the recovery of the amount as arrear of land
revenue on a certificate granted by the Registrar under sub -section ( 1) or ( 2) of section
101 or sub -section ( 1) of section 137 or the recovery proceeding of the Registrar or any
officer sub ordinate to hi m or an officer of society notified by the State Government,
who is empowered by the Registrar under sub -section (J) of section 156,]10[or any ord
ers, decisions, awards and actions of the Registrar against which an appeal under section
152 or 152 A and revision under section 154 of the Act have been provided.] shall not be
deemed to be a dispute for the purposes of this section.]
11[* * * * * * * * *]
( 3) Save as other wise provided under12[sub-section ( 2) to section 93 ], no Court sh all
have jurisdiction to entertain any suit or other proceedings in respect of any dispute
referred to in sub -section ( 1).
Explanation 1.--A dispute between the Liquidator of a society13[or an official Assignee of
a de-registered society] and14[the me mbers (including past me mbers, or nominees, heirs
or legal representative or deceased members)] of the same society shall not be
referred15[to the co-operative Court] under the provisions of sub-section ( 1).
Explanation 2.--For the purposes of this sub-section, a dispute shall include--
(i) a claim by or against a society for any debt or demand due to it from a member or due
from it to a member, past member or the nominee, heir or legal representative of a
deceased member, or servant for employee whether such a debt or demand be admitted or
not;
(ii) a claim by a surety for any sum or demand due to him from the principal borrower in
respect of a loan by a society and recovered from the surety owing to the default of the
principal borrower, whether such a sum or demand be admitted or not;
(iii) a claim by a society for any loss caused to it by a member, past member or deceased
member, by any officer, past officer or deceased officer, by any agent, past agent or
deceased agent, or by any servant, past servant, past servant or deceased servant, or by its
committee, past or present, whether such loss be admitted or not;
(iv) a refusal or failure by a member, past member or a nominee, heir or legal
representative of a deceased member, to deliver possession to a society of land or any
other asset resumed by it for breach of condition as the assignment.
Footnote:
1. These words were substituted for the words "anything containing" by Mah. 33 of 1963.
s. 20(a).
2. These words were substituted for the words " elections of the office bearers" by Mah.
20 of 1986. s. 48 (a)
3. These words were substituted for the words " to the Registrar" by Mah. 18 of 1982. s.
3(a).
4. These words were inserted by Mah. 10 of 1988. s. 17(a)(i).
5. These words were added by Mah. 27 of 1969, s. 16(a)(i).
6. Clauses (c) and (d) were substituted for the original, by Mah. 27 of 1969, s. 16 (a)(ii).
7. These words were inserted by Mah. 10 of 1988, s. 17(a)(ii).
8. The proviso was added by Mah. 2 of 1986, s. 48(b).
9. This portion was inserted by Mah. 10 of 1988, s. 17(a)(iii).
10. These words figures and letter were inserted by bMah. 34 of 2001, (w.e.f. 7-9-2001)
s. 8.
11. Sub-section (2) was deleted by Mah. 27 of 1969, s. 16(b).
12. These words, brackets and figures were substituted for the words, brackets and
figures "sub-section (3) of section 93" by Mah. 20 of 1988. s. 48(c).
13. These words were inserted by mah. 10 of 1988, s. 17(b)
14. These words and brackets were substituted for the words "the members" by Mah. 33
of 1933, s. 20 (b).
15. These words were substituted for the words "to the Registrar". by Mah. 18 of 1982 s.
3(b).
Section 91A - Constitution of Co-operative Courts
1[ 91A. Constitution of Co-operative Courts
( 1) The State Government may, by notification in the Official Gazette, constitute one or
more Co-operative Courts for the adjudication of dispute2[referred to them] under section
91 or section 105 or other provisions of this Act.
( 2) A Co-operative Court shall consist of one member appointed by the State
Government possessing such qualifications as may be prescribed.
( 3) A Co-operative Court shall have jurisdiction over the whole State or any part thereof
as may be specified in the notification under sub-section ( 1).
( 4) All disputes and other proceedings pending immediately before the commencement
of the Maharashtra Co-operative Societies (Third Amendment) Act, 1973,3[before the
Registrar or any person to whom the powers of the Registrar under this Act or the rules
made thereunder have been delegated or] before any nominee or board of nominees
appointed by the Registrar, shall be transferred by him, by general or special order, to any
Co-operative Court specified by him in that behalf and shall be heard and disposed of by
that Court as if they had been originally filed before it. That Court may proceed to hear
and dispose of such proceedings from the stage reached before such transfer or may
commence the hearing de novo].
4[( 5) All disputes and other proceedings pending, immediately before the
commencement of the Maharashtra Co-operative Societies, (Amendment and Validation)
Act, 1982, before the Registrar or any person to whom the powers of the Registrar under
this Act or the rules made thereunder have been delegated shall be transferred by him, by
general or special order, to any Co-operative Court specified by him and shall be heard
and disposed of by that Court as if they had been originally filed before it. That Court
may proceed to hear and dispose of such proceeding from the stage reached before such
transfer or may commence the hearing de novo].
Footnote:
1 . Section 91 -A was inserted by Mah. 3 of 1974, s. 22.
2. These words were sub stituted for the words "referred to the Registrar," by Mah. 18 of
1982 s. 4(a).
3 . This was inserted by Mah. 64 of 1975, s. 2.
4. Sub -section ( 5) was added by Mah. 18 of 1982, s. 4(b).
Section 92 - Limitation
( 1) Notwithstanding anything in1[the Limitation Act, 1963], but subject to the specific
provisions made in this Act, the period of limitation in the case of a dispute referred
to2[the Co-operative Court] under the last preceding section shall--
(a) when the dispute relates to the recovery of any sum, including interest thereon, due to
a society by a member thereof be computed form the date on which such member dies or
ceases to be a member of the society;
(b) when the dispute is between a society or its committee, and any past committee, any
past or present officer, or past or present agent, or past or present servant or the nominee,
heir or legal representative of a deceased officer, deceased agent or deceased servant of
the society, or a member, or past member, or the nominee, heir or legal representative of
a deceased member and when the dispute relates to any act or omission on the part of
either party to the dispute, be six years from the date on which the act or omission with
reference to which the dispute arose, took place;
(c) when the dispute is in respect of any matter touching the constitution, management or
business of a society which has been ordered to be wound up under section 102, or in
respect of which a nominated committee or an administrator has been appointed
under3[section 77A or 78], be six years from the date of the order issued under section
102, or3[section 77A or 78] as the case may be;
(d) when the dispute is in respect of an election of4[a committee or officers] of the
society, be5[two months] from the date of the declaration of the result of the election.
( 2) The period of limitation in the case of any other dispute except those mentioned in
the foregoing sub-section which are required to be referred to6[the Co-operative Court]
under the last preceding section shall be regulated by the provisions of7[the Limitation
Act, 1963], as if the dispute were a suit and2[the Co-operative Court] a Civil Court.
( 3) Notwithstanding anything contained in sub sections ( 1) and{ 2),8[the Co-operative
Court] may admit a dispute after the expiry of the limitation period if the Applicant
satisfied2[the Co-operative Court] that he had sufficient cause for not referring the dispute
within such period and the dispute so admitted shall be a dispute which shall not be
barred on the ground that the period of limitation had expired.
Footnote:
1. These words and figures were sub stituted for the works and figures "the Indian
Limitation Act, 1908 " by Mah. 20 of 1986, s. 49(c).
2. These words and figures were sub stituted for the words "the Registrar" by Mah. 18 of
1982, s. 5(a).
3. These words, figure and letter were sub stituted for the word and figures "Section 78 "
by Mah. 20 of 1986, s. 49(a).
4. These words were sub stituted for the words "an office bearer" by Mah. 20 of 1986, s.
49(b).
5. These words were sub stituted for the words "one month" by Mah. 18 of 1982, s. 5(b).
6. These words were sub stituted for the words "the Registrar" by Mah. 18 of 1982, s.
5(a).
7. These words and figures were sub stituted for the words and figures "the Indian
Limitation Act, 1908 " by Mah. 20 of 1986, s. 49(c).
8. These words were sub stituted for the words "the Registrar" by Mah. 18 of 1982, s.
5(a).
Section 93 - Transfer of disputes from one Co-operative Court to another and
suspension of proceedings in certain cases.
1[ 93. Transfer of disputes from one Co-operative Court to another and suspension
of proceedings in certain cases.
( 1) Where any dispute is referred to any Co-operative Court, the President of the Cooperative
Appellate Court may, at any time, for reason to be recorded in writing,
withdraw such dispute from that Court and may refer it for decision to any other C ooperative
Court as he deems fit.
( 2) Notwithstanding anything contained in this Act, the Co-operative Court, on an
application made to it by any of the parties to the dispute, may, if it thinks fit suspend any
proceedings in respect of any dispute, if the question at issue between a society and a
claimant or between different claimants, is one involving complicated questions of law
and fact, until the question has been tried by a regular suit instituted by one of the parties
or by the society. If any such suit is not instituted in a Civil Court within two months
from the date of the order of the Co-operative Court, shall continue the proceedings and
decide the dispute]
Footnote:
1. Section 93 was sub stituted by Mah. 18 of 1982, s. 6.
Section 94 - Procedure for settlement of disputes and power of Co-operative Court
94. Procedure for settlement of disputes and power of1 [* * *] 2 [Co-operative Court]
(1) 2 [The Co-operative Court], hearing a dispute underthe last preceding section shall
hear the dispute in the manner prescribed, andshall have power to summon and
enforceattendance of witnesses including the parties interested or any of them and
tocompel them to give evidence on oath, affirmation or affidavit, and to compelthe
production of documents by the same means and as far as possible in the same manner,
asis provided in the case of a Civil Court by the code of Civil procedure, 1908.
3 [(1A) Save as otherwise provided in this Act, every dispute inrelation to any election
shall be heard and decided by the Co-operative Courtas expeditiously as possible and
endeavour shall be made to conclude the hearing and decisionwithin six months from the
date on which the dispute is filed before it.]
(2) Except with the permission of4 [the Co-operative Court] no partyshall be represented
at the hearing ofa dispute by a legal practitioner.
(3) (a) If5 [the Co-operative Court] is satisfied that a personwhether he be a memberof the
society or not has acquired any interest in the property of a person whois a party to a
dispute 6 [it may order], that the person who has acquired the interestin the property may
join as a party to the dispute; and any decision that maybe passed on the reference by 5
[the Co-operative Court]shall be binding on the party sojoined, in the same manner as if
he were an original party to the dispute.
(b)Where a dispute has been instituted in the name of the wrong person, or whereall the
defendants have not been included, 5 [the Co-operative Court] may, at anystageof the
hearing of the dispute, if satisfied that the mistake was bona fideorder anyother person to
besubstituted or added as a plaintiff ora defendant, upon such terms as 7 [it thinks just.]
(c)8 [The Co-operativeCourt may,] at any stage of the proceedings, either upon or without
theapplication of either party, and on such terms as may appear to 9 [the Co-operative
Court], to be just,order that the name of any party improperlyjoined whether as plaintiff
or defendant, be struck out, and the name of anyperson who ought to have been joined
whether as plaintiff or defendant or whosepresence before 9 [theCo-operative Court], may
be necessary in order10 [to enable the Co-operative Court] effectually andcompletely to
adjudicate upon and settle all the questions involved in thedispute, be added.
(d)Anyperson who is a party to the dispute and entitled to more than one relief inrespect
of the same cause of action may claim all or any of such reliefs; butif he omits to claim
for all such reliefs he shall not forward a claim for any relief so omitted,except with the
leave of 11 [the Co-operative Court].
12 [(3A) In any case in which a dispute is decided by theCo-operative Court ex-parte
againstany person, he may apply to the Court, within thirty days from the date of
thedecision, to set it aside. If he satisfies the Court that there was sufficientcause for
hisfailure to appear when the dispute was called and heard, the Courtshall make anorder
setting aside the decision asagainst him,upon such terms as to costs, payment into Court
orotherwise, as it thinks fit, andappoint a day for hearing and deciding the dispute so far
as it relates tohim.]
13 [(4) Save as otherwise directed by the State Government in any caseor class of cases,
every dispute shall be decided in such summary manner as may beprescribed and as
expeditiously as possible.]
Footnote:
1. The words"Registrar or" were deleted by Mah. 18 of 1982, s. 7(5).
2. These words weresubstitutedfor the words "the Registrar" by Mah. 18 of 1982, s. 7(1).
3. Sub-section [1A] was insertedby Mah. 20 of 1986, s. 50.
4. These words weresubstitutedfor the words "the Registrar or the Co-operative Court as
the case maybe" by Mah. 18 of 1982, s. 7(2).
5. These words weresubstitutedfor the words "the Registrar or the Co-operative Court",
by Mah. 18 of 1982, s. 7(3)(a)(i).
6. These words weresubstituted forthe words "he may order", 18 of 1982 s. 7(3)(a)(ii).
7. These words weresubstitutedfor the words "he thinks just", by Mah. 18 of 1982, s.
7(3)(b)(ii).
8. These words weresubstitutedfor the words "the Registrar, or the Co-operative Court
may," by Mah.18of 1982, s. 7(3)(c)(i).
9 These words weresubstitutedfor the words "the Registrar, or the Co-operative Court, as
the case maybe", by Mah. 18 of 1982, s. 7(3)(c)(ii).
10. These words weresubstitutedfor the words "to enable the Registrar, or the Cooperative
Court",by Mah. 18 of 1982, s. 7(3)(c)(iii).
11. These words weresubstitutedfor the words "the Registrar, or the Co-operative Court"
by Mah. 18 of 1982, s. 7(3)(d).
12. Sub-section (3A)was inserted,by Mah. 18 of 1982, s. 7(4).
13. Sub-section (4) was added by Mah. 3 of 1974, s. 24(b).
Section 95 - Attachment before award or orders and interlocutory orders
1[ 95. Attachment before award or orders and interlocutory orders
( 1) Where a dispute has been referred to the Co-operative Court under section 93 or 105
or whether the Registrar or the person authorised under section 88 (h ereinafter in this
section referred to as "the authorised person") hears a person against whom charges are
framed under that section and the Co-operative Court or the Registrar or the authorised
person, as the case may be, is satisfied on inquiry or other wise that a party to such
dispute or the person against whom proceedings are pending under section 88, with
intent, to defeat, delay or obstruct the execution of any award or the carrying out of any
order that may be made,--
(a) is about to dispose of the whole or any part of his property, or
(b) is about to remove the whole or any part of hi s property from its or his jurisdiction.
the Court or the Registrar or the authorised person, as the case may be, may, unless
adequate security is furnished, direct conditional attachment of the said property, and
such attachment shall have the same effect as if made by a competent Civil Court.
( 2) Where attachment of property is directed under sub -section ( 1), the Co-operative
Court or the Registrar or the authorised person, as the case may be, sh all issue a notice
calling upon the person whose property is so attached to furnish security as it or he thinks
adequate within a specified period. If the person fails to provide the security so
demanded, the authority issuing the notice may confirm the ord er and, after the decision
in the dispute or the completion of the proceedings under section 88, may direct the
disposal of the property so attached towards the claim if awarded.
( 3) Attachment under this section sh all not affect the rights subsisting prior to the
attachment of the property, of persons not parties to the proceedings in connection with
which the attachment is made, or bar any person holding a decree against the person
whose property is attached from applying for the sale of the property under attachment in
execution of such decree.
( 4) The Co-operative Court, the Registrar or the authorised person, as the case may be,
may in ord er to prevent the ends of justice being defeated make such interlocutory ord
ers pending the decision in a dispute referred to in sub -section ( 1) as may appear to be
just and convenient.]
Footnote:
1. Section 95 was sub stituted by Mah. 18 of 1982, s. 8.
Section 96 - Decision of Co-operative Court
1[ 96. Decision of Co-operative Court
When a dispute is referred to artibration, the Co-operative Court may, after giving a
reasonable opportunity to the parties to the dispute to be heard, made an award on the
dispute, on the expenses incurred by the parties to the dispute in connection with the
proceedings, and fees and expenses payable to the Co-operative Court. In case of money
claim preferred by society against a me mber, the amount of award representing the
interest sh all not be less than the amount of interest accrued there on in accordance with
the contractual rate of interest, but where such money claim relates to any loan referred to
in section 44 A, the provisions of that section sh all apply to such money claim as they
apply to loan under section 44A.]
Footnote:
1. Section 96 was substituted by Mah. 20 of 1986, s. 51.
Section 97 - Appeal against decision under section 96 and Order under section 95
97.1[Appeal against decision under section 96 and Order under section 95]
Any party aggrieved by any decision of2[the Co-operative Court] under the last
preceeding section, or ord er passed3[by the Co-operative Court or the Registrar or the
authorised person] under section 95 may, within two months from the date of the decision
or ord er, appeal to4[the Co-operative Appellate Court.]
Footnote:
1. This marginal note was sub stituted by Mah. 3 of 1974, s. 10(c).
2. These words were sub stituted for the words "the Registrar or the Co-operative Court"
by Mah. 18 of 1982, s. 10(a).
3. These words were inserted by Mah. 3 of 1974, s. 10(b).
4. these words were substituted for the words "the tribunal" by Mah. 3 of 1974, s. 27(b).
Section 98 - Money how recovered
Every ord er passed1[by the Official Assignee of a de-registered society under sub -
section ( 3) of section 21 A or every ord er passed] by the Registrar or a person
authorised by hi m under section 88 or by the Registrar2[or the Co-operative Court under
section 953[or by the Co-operative Court under section 96 ], every ord er passed] in
appeal under the last preceeding section every ord er passed by a Liquidator under section
105, every ord er passed by the State Government in appeal against ord ers passed under
section 105 and every ord er passed in revision under section 154 shall, if not carried
out,--
(a) On a certificate signed by4[the Official Assignee or] the Registrar5[or the Cooperative
Court] or a Liquidator, be deemed to be a decree of a Civil Court, and shall be
executed in the same manner as a decree of such Court, or
(b) be executed according to the law and under the rules for the time being in force for
the recovery of arrears of land revenue:
Provided that, any application for the recovery in such manner of any such sum sh all be
made by the Collector, and sh all be accompanied by a certificate signed by the
Registrar.6[* * * * *] Such application sh all be made within twelve years from the date
fixed in the ord er and if no such date is fixed, from the date of the order.
Footnote:
1 . This portion was inserted by Mah. 10 of 1988, s. 18(a).
2. These words were sub stituted for the words "or hi s nominee, or board of nominees"
by Mah. 10 of 1988, s. 26 (a) and 28.
3 . These words were inserted by Mah. 18 of 1982, s. 11(a).
4 . These words were inserted by Mah. 10 of 1988, s. 18(b).
5 . These words were inserted, by Mah. 10 of 1988, s. 11(b).
6 . The words "or by any Assistant Registrar to whom the said powers have been
delegated by the Registrar were deleted by Mah. 33 of 1963, s. 22.
Section 99 - Private transfer of Property made after issue of certificate void against
society
Any private transfer or delivery of, or encumbranceor charge on, property made or
created after the issue of the certificate ofthe Registrar, 1 [Co-operative Court], Liquidator
or Assistant/Registrar, as the case may be, undersection 98 shall be null and void as
against the society onwhose application the said certificate was issued.
Footnote:
1. These words wereinserted by Mah. 18 of 1982, s. 12.
Section 100 - Transfer of property which cannot be sold
( 1) When in any execution of an ord er sought to be executed under section 98,1[or the
recovery of any amount under section 101 or section 137 ], any property cannot be sold
for want of buyers, if such property is in occupancy of the defaulter, or of some person in
hi s behalf, or of some person claiming under a title created by the defaulter sub
sequently to the issue of the certificate of the Registrar,2[Court], Liquidator or the
Assistant Registrar, under clause (a) or (b) of section 98,3[or under section 101 or 137 ],
the Court or the Collector or the Registrar, as the case may be, may, notwithstanding
anything contained in any law for the time being in force, direct that the said property or
any portion thereof sh all be transferred to the society which has applied for the execution
of the said order, in the manner prescribed.
( 2) Where property is transferred to the society under the foregoing sub -section or
where property is sold under section 983[ 101 or 137], the Court, the Collector, or the
Registrar, as the case may be, may, in accordance with the rules, place the society or the
purchaser, as the case may be, in possession of the property transferred or sold.
( 3) Sub ject to such rules as may be made in this behalf, and to any rights encumbrances,
charges or equities lawfully sub sisting in favour of any person, such property or portion
thereof sh all be held under sub -section ( 1) by the said society on such terms and
conditions as may be agreed upon between the Court, the Collector or the Registrar, as
the case may be, and the said society. Sub ject to the general or special orders of the State
Government, the Collector or the Registrar may delegate to an officer, not below the rank
of an Assistant or the Deputy Registrar under this section.
Footnote:
1. These words and figures were inserted by Mah. 3 of 1974, s. 29(a)(i) and (ii).
2. This words was inserted by Mah. 18 of 1982, s. 13.
3. This words and figures were sub stituted by Mah. 3 of 1974, s. 29(b).
Section 101 - Recovery of arrears due to certain societies as arrears of land revenue
101. 1 [Recovery of arrears due to certain societies as arrears of land revenue
2 [(1) Notwithstanding anything contained in sections 91, 93 and 98, on an application
made by a resource society undertaking the financing of crop and seasonal finance as
defined under the Bombay Agricultural Debtors Relief Act, 1947, 3 [or advancing loans
for other agricultural purposes repayable during a period of not less than eighteen months
and not more than five years] for the recovery of arrears of any sum advanced by it to any
of its members on account of the financing of crop or seasonal finance 4 [or for other
agricultural purposes as aforesaid] or by a crop-protection society for the recovery of the
arrears of the initial cost or of any contribution for obtaining services required for cropprotection
society or for the recovery of the arrears of the initial cost or of any
contribution for obtaining services required for crop protection which may be due from
its members, or other owners of lands included in the proposal (who may have refused to
become members) or by a lift irrigation society for the recovery of arrears of any
subscription due from its members for obtaining services required for providing water
supply to them, 5 [or by a Tulaka or Block level village artisans multipurpose society
advancing loans and arranging for cash credit facilities for artisans for the recovery of
arrears of its dues,] 6 [or by a co-operative housing society for the recovery of arrears of
its dues, or by a co-operative dairy society advancing loans for the recovery of arrears of
any, sum advanced by it to any of its members or by an urban co-operative bank for the
recovery of arrears of its dues, or by salary-earners co-operative society for the recovery
of arrears of its dues, or by a fisheries co-operative society for the recovery of arrears of
its dues,] 7 [or by any such society or class of societies, as the state Government may
from time to time, notify in the official Gazette, for the recovery of any sum advanced to,
or any subscription or any other amount due from, the members of the society or class of
societies so not notified;] and on the society concerned furnishing a statement of accounts
in respect of the arrears, the Registrar may, after making such inquiries as he deems fit,
grant a certificate for the recovery of the amount stated therein to be due as arrears.]
8 [Explanation.-- For the purposes of this sub-section, the expression "other agricultural
purposes" includes dairy, pisciculture and poultry.]
(2) Where the Registrar is satisfied that 9 [the concerned society has failed to take action
under the foregoing sub-section in respect of any amount due as arrears,] the Registrar
may, of his motion, after making such inquiries as he deems fit, grant a certificate for the
recovery of the amount stated therein to be due as arrears and such a certificate shall be
deemed to have been issued as if on an application made by the society concerned.
(3) A certificate granted by the Registrar under sub-section (1) or (2) shall be final and a
conclusive proof of the arrears stated to be due therein, and the same shall be recoverable
according to the law for the time being in force for the recovery of land revenue.
(4) It shall be lawful for the Collector and the Registrar to take precautionary measures
authorised by sections 140 to 144 of the 10 Bombay Land Revenue Code, 1879 or any law
or provision corresponding thereto for the time being in force, until the arrears due to 11
[the concerned society], together with interest and any incidental charges incurred in the
recovery of such arrears, are paid, or security for payment of such arrears is furnished to
the satisfaction of the Registrar.
Footnote:
1. This marginal note was substituted. Mah. 27 of 1969, s. 17(d).
2. Sub-section (1) was substituted for the original by Mah. 27 of 1969, s. 17(a).
3. This portion was deemed to have been inserted on 1st July 1971 by Mah. 44 of 1973, s.
(3)(a).
4. This portion was deemed to have been inserted on 1st July 1971, by Mah. 44 of 1973,
s. 3(b).
5. This portion was inserted by Mah. 36 of 1975, s.8.
6. This portion was inserted by Mah. 20 of 1986, s. 52(a).
7. This portion was substituted by Mah. 31 of 1990, s. 2.
8. This Explanation was added, by Mah. 20 of 1986, s. 52(b).
9. This portion was substituted for the original by Mah. 27 of 1969, s. 17(b).
10. See now the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966).
11. These words were substituted for the words "the resource society", by 27 of 1969, s.
17(c).
Chapter: X - LIQUIDATION
Section 102 - Winding up
( 1) If the Registrar,--
(a) after an inquiry has been held under section 83 or an inspection has been made under
section 84 or on the report of the auditor auditing the accounts of the society, or
(b) on receipt of an application made upon a resolution carried by three-fourths of the me
mbers of a society present at a special general meeting called for the purpose, or
(c) of his own motion, in the case of a society which--
(i) has not commenced working, or
(ii) has ceased working, or
(iii) possesses sh ares or members' deposits not exceeding five hundred rupees, or
(iv) has ceased to comply with any conditions as to registration and management in this
Act or the rules or the by laws.
is of the opinion that a society ought to be wound up, he may issue an interim order
directing it to be wound up.
( 2) A copy of such order made under1[* * * *] sub-section ( 1) shall be communicated,
in the prescribed manner, to the society calling upon it to submit its explanation to the
Registrar within a month from the date of the issue of such order, and the Registrar, on
giving an opportunity to the society2[and to the creditors of the society, if any] of being
heard, may issue a final order, vacating or confirming the interim order.
Footnote:
1 . The words, brackets, letters and figures "clause (a) or sub -clause (iv) of clause (c) of
were deleted by Mah. 33 of 1963, s. 23.
2 . These words were inserted by Mah. 34 of 2001, (w.e.f. 7 - 9 - 2001) s. 9.
Section 103 - Appointment of Liquidators
(1) When an interim order is passed under the last preceding section or a final order is
passed under that section, for the winding up of a society, the Registrar may in
accordance with rules, appoint a person to be Liquidator of the society, and fix his
remuneration.
(2) On issue of the interim order, the officers of the society shall hand over to the
Liquidator the custody and control of all the property, effects and actionable claims to
which the society is or appears to be entitled and, of all books, records and other
documents pertaining to the business of the society and, shall have no access to any of
them.
(3) When a final order is passed confirming the interim order, the officers of the society
shall vacate their offices, and while the winding up order remains in force the general
body of the society shall not exercise any powers.
(4) The person appointed under this section as Liquidator shall, subject to the general
control of the Registrar, exercise all or any of the powers mentioned in section 105. The
Registrar may remove such person and appoint another in his place, without assigning
any reason.
(5) The whole of the assets of the society shall on the appointment of Liquidator under
this section vest in such Liquidator, and notwithstanding anything contained in any law
for the time being in force, if any immovable property is held by a Liquidator on behalf
of the society, 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.
(6) In the event of the interim order being vacated, the person appointed as Liquidator
shall hand over the property, effects and actionable claims and books, records and other
documents of the society to the officers who had delivered the same to him. The acts
done, and the proceedings taken by Liquidator, shall be binding on the society, and such
proceedings shall, after the interim order has been cancelled under the preceding section,
be continued by the officers of the society.
Section 104 - Appeal against order of winding up
1(( 1) The committee, or any me mber of the society, ord ered to be wound up may prefer
an appeal against the final ord er of winding up within two months from the date of the
issue of the ord er made under section 102, --
(a) if made by the Registrar, or the Special or Additional or Joint Registrar on whom the
powers of the Registrar are conferred, to the State Government;
(b) if made by any person other than the Registrar, or special or Additional or Joint
Registrar on whom the powers of the Registrar are conferred, to the Registrar;
Provided that, no appeal sh all lie against an ord er, issued under sub -clause (i), (ii) or
(iii) of clause (c) of sub -section ( 1) of section 102.]
( 2) No appeal from a member under this section shall be entertained unless it is
accompanied by such sum as security for the costs of hearing the appeal, as may be
prescribed.
Footnote:
1. Sub -section ( 1) was sub stituted by Mah. 7 of 1997, s. 12.
Section 105 - Powers of Liquidator
1 [(1)] The Liquidator appointed under section103shall have power,subject to the rules
and the generalsupervision, control and direction of the Registrar,--
(a)to institute and defend any suit and other legal proceedings, civil or criminal, on bealf
ofthe society, in the name of his office;
(b)to carry on the business of the society, so far as may be necessary for thebeneficial
winding up of the same;
(c)to sell immovable and movable property and actionable claims of the society bypublic
auction or private contract, with power to transfer the whole or partthereof to any person
or body corporate, or sell the same in parcels;
2 [(c-i) to transfer by sale assets valued at marketprice to a society registered with similar
objects or to Government undertakingwhich carries on the same business as of the society
under liquidation;
(c-ii)to lease to othersocieties or to Government undertaking, with prior approval of the
Registrar,the property of the society to run the same business as that of the societyunder
liquidation;]
(d)toraise, on the security of the assets of the society, any money required;
(e)toinvestigate all claims against the society and, subject to the provisions of the Act, to
decidequestions of, priority arising out of such claims, and to pay any class orclasses of
creditors in full or rateable according to the amount of such debts,the surplus being
applied in payment of interest from the date of liquidationat a rate to be approved by the
Registrar, but not, exceeding the contractrates;
(f)to make any compromise or arrangement with creditors or persons claiming to
becreditors or having or alleging themselves to have any claims, present orfuture,
whereby the society may be rendered liable;
(g)tocompromise all calls or liabilities to calls and debts and liabilities capableof resulting
in debts, and all claims present or future, certain or contingent,subsisting or supposed
tosubsist between the society and acontributory or alleged contributory or other debtor or
person apprehending liability to thesociety, and all questions in any way relating to or
affecting the assets orthe winding up of the society, on such terms as may be agreed, and
take anysecurity for the discharge of any such call, liability, debt, or claim, andgive a
complete discharge in respect thereof;
(h) to determine, from time to time, after giving anopportunity to answer the claim, the
contribution to be made or remaining to bemade by the membersor past members or by
the estates, nominees, heir or legalrepresentatives of deceased members, or by any
officer,past officer or the assets of the society, such contribution being inclusive ofdebts
due from such members or officers;
(i) to issue requisitions under section98;
3 ((j) to refer or to getreferred any dispute to the Co-operative Court for decision;]
(k)to determine by whatpersons and in what proportion the costs of the liquidationshall
beborne;
(l) to fix the time or timeswithin which the creditors shall prove their debts andclaims or
be included for the benefit of any distribution made before thosedebts or claims are
proved;
(m)to summon and enforce theattendance of witnesses and to compel the production of
any books, accounts,documents, securities, cash or other properties belonging toor in the
custody of the society by the same means and in the samemanner as is provided in the
case of a Civil Court under Code of Civil Procedure,1908;
(n) to do all acts, and to execute in the name andon behalf of the society, all deeds,
receipts and other documents as may benecessary to such winding up;
(o)to take such action asmay be necessary under section 19, with the prior approvalof the
Registrar, if there is reason to believe that the society can bereconstituted.
4 [(2) Notwitstanding anythingcontained in sub-section (1), the Liquidatorshall nothave
the right to vote on behalf of the society in liquidation, at the electionof the members of
the committee or of officers of anyothersociety.]
Footnote:
1. Section 105 was re-numbered assub-section (1) of that section by Man. 3 of 1974, s.
30(1).
2. Clauses (c-i) and (C-ii)were inserted by Mah. 20 of 1986, s. 53.
3. Clause (j) wassubstitutedby Mah. 18 of 1982, s. 14.
4. Sub-section (2) was added by Mah. 3 of 1974, s. 30(2).
Section 106 - Effect of order of winding up
After expiry of the period for appeal against the order made under sub-section (1) of
section 102 or where the appeal has been dismissed, the order for winding up shall be
effective and shall operate in favour of all the creditors and of all the contributories of the
society, as if it had been made on the joint petition of creditors and contributories. When
a winding up order becomes effective, the Liquidator shall proceed to realise the assets of
the society by sale or otherwise, and no dispute shall be commenced or if pending at the
date of the winding up order, shall be proceeded with, against the society, except by leave
of the Registrar and subject to such terms as the Registrar may impose. The Registrar,
may of his own motion, however, entertain or dispose of any dispute by or against the
society.
Section 107 - Bar of suit in winding up and dissolution matters
Save as expressly provided in this Act, no Civil Court shall take cognizance of any matter
connected with the winding up or dissolution of a society under this Act; and when a
winding up order has been made no suit or other legal proceedings shall lie or be
proceeded with against the society or the liquidator, except by leave of the Registrar, and
subject to such terms as he may impose:
Provided that, where the winding up order is cancelled, the provisions of this section shall
cease to operate so far as the liability of the society and of the members thereof to be sued
is concerned, but they shall continue to apply to the person who acted as Liquidator.
Section 108 - Audit of Liquidator's accounts
(1) The Liquidator, shall, during his tenure of office, at such times as may be prescribed,
but not less than twice each year, present to the Registrar an account in the prescribed
form of his receipts and payments as Liquidator. The Registrar shall cause the accounts to
be audited in such manner as he thinks fit; and for the purpose of audit, the Liquidator
shall furnish the Registrar with such vouchers and information as he, or the person
appointed by him, may require.
(2) The Liquidator shall cause a summary of audited accounts to be prepared, and shall
send a copy of such summary to every contributory.
(3) The Liquidator shall pay such fees as the Registrar may direct, for the audit of the
accounts and books kept by him in the manner prescribed.
(4) The Liquidator shall be held liable for any irregularities which might be discovered in
the course or as a result, of audit in respect of transactions subsequent to his taking over
the affairs of the society, and may be proceeded against as if it were an act against which
action could be taken under section 88:
Provided that, no such action shall be taken unless the irregularities have caused or are
likely to cause loss to the society, and have occurred due to gross negligence or want or
omission, in carrying out the duties and functions.
Section 109 - Termination of liquidation proceedings
( 1) The winding up proceedings of a society sh all be closed1[as soon as practicable
within six years] from the date2[the Liquidator takes over the custody or control of all the
property, effects and actionable claims to which the society is or appears to be entitled
and of all books, records and other documents pertaining to the business of the society,
under sub -section ( 2) of section 103], unless the period is extended by the Registrar:
Provided that, the Registrar sh all not grant any extension for a period exceeding one year
at a time and four years in the aggregate, and sh all, immediately after the expiry of3[ten
years] from the date4[aforesaid], deem that the liquidation proceedings have been
terminated, and pass an order terminating the liquidation proceedings.
5[Explanation.-- In the case of a society which is under liquidation at the commencement
of the Maharashtra Co-operative Societies (Second Amendment) Act, 1985 the period of
six years shall be deemed to have commenced from the date on which the Liquidator took
over the custody or control as aforesaid].
( 2) Notwithstanding anything contained in the foregoing sub -section, the Registrar sh all
terminate the liquidation proceedings on receipt of the final report from the Liquidator.
The final report of the Liquidator sh all state that the liquidation proceedings of the
society have been closed, and how the winding up has been conducted and the property
of and the claims of the society have been disposed of, and sh all include a statement sh
owing a summary of the account of the winding up including the cost of liquidation, the
amount (if any), standing to the credit of the society in liquidation, after paying of its
liabilities including the sh are or interest of me mbers, and suggest how the surplus
should be utilised.
( 3) The Registrar, on receipt of the final report from the Liquidator, sh all direct the
Liquidator to convene a general me eting of the me mbers of the society for recording his
final report.
Footnote:
1. These words were sub stituted for the words "within three years" by Mah. 16 of 1969,
s. 2(a).
2. This portion was sub stituted for the words "of the ord er of the winding up" by Mah.
20 of 1986, s. 54(a).
3. These words were sub stituted for the words "seven years" by Mah. 16 of 1969, s. 2(b).
4. This word was sub stituted for the words "of the ord er for winding up of the society"
by Mah. 20 of 1986, s. 54(b).
5. This Explanation was sub stituted for the original, by Mah. 20 of 1986, s. 54(c).
Section 110 - Disposal of surplus assets
The surplus assets, as shown in the final report of the Liquidator of a society which has
been wound up, may either be divided by the Registrar, with the previous sanction of the
State Government, amongst its members in such manner as may be prescribed or be
devoted to any object or objects provided in the bye-laws of the society, if they specify
that such a surplus shall be utilised for the particular purpose or may be utilised for both
the purpose. Where the surplus is not so divided amongst the members and the society
has no such by-laws, the surplus shall vest in the Registrar, who shall hold it in trust and
shall transfer it to the reserve fund of a new society registered with a similar object, and
serving more or less an area which the society, to which the surplus belonged was
serving:
Provided that, where no such society exists or is registered within three years of the
cancellation of the society whose surplus is vested in the Registrar, Registrar may
distribute the surplus, in the manner he thinks best, amongst any or all of the following:--
(a) an object of public utility and of local interest as may be recommended by the
members in general meeting held under the preceding section;
(b) a federal society with similar objects to which the cancelled society was eligible for
affiliation or, where no federal society exists, the State federal society which may be
notified in this behalf by the State Government; and
(c) any charitable purpose as defined in section 2 of the Charitable Endowments Act,
1890.
1[CHAPTER XA
INSURED CO-OPERATIVE BANK
Footnote:
1. Chapter X-A was inserted by Mah. 54 of 1969, s. 2.
Chapter: XA - INSURED CO-OPERATIVE BANK
Section 110A - Order for winding up, reconstruction, supersession of committee,
etc., of insured Co-operative bank, not to be made without sanction or requisition of
Reserve Bank of India
Nothwithstanding anything contained in this Act, in the case of an insured co-operative
bank--
(i) an order for the winding up, or an order sanctioning a scheme of compromise or
arrangement, or of amalgamation, or reconstruction (including division or reorganisation),
of the bank may be made only with the previous sanction in writing of the
Reserve Bank of India;
(ii) an order for the winding up of the bank shall be made 1 [by the Registrar] if so
required by the Reserve Bank of India in the circumstances referred to in section 13-D of
the Deposit Insurance Corporation Act, 1961;
(iii) if so required by the Reserve Bank of India in the public interest or for preventing the
affairs of the bank being conducted in a manner detrimental to the interests of the
depositors or for securing the proper management of the bank, an order shall be made 1
[by the Registrar for the surpersession (removal) of the committee and the appointment of
an Administrator therefor 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
until the day immediately preceding the date of the first meeting of the new committee;
(iv) an order for the winding up of the bank or an order sanctioning a scheme of
compromise or arrangement or of amalgamation or reconstruction (including division or
re-organisation) or an order for the supersession (removal) of the committee and the
appointment of an Administrator therefor made with the previous sanction in writing or
on the requisition of the Reserve Bank of India shall not be liable to be called in question
in any manner; and
(v) the liquidator or the insured co-operative bank or the transferee bank, as the case may
be, shall be under an obligation to repay the Deposit Insurance Corporation established
under the Deposit Insurance Corporation Act, 1961, in the circumstances, to the extent
and in the manner referred to in section 21 of that Act.
2 [Explanation.-- In this section,--
(a) the expression "an insured co-operative bank" means a society which is an insured
bank under the provisions of the Deposit Insurance Corporation Act, 1961:
(b) the expression "the transferee bank" has the same meaning as assigned to it in that
Act.]
Footnote:
1. These words were inserted by Mah. 36 of 1975, s. 9.
2. This Explanation was substituted for the original by Mah. 36 of 1975, s. 9(c).
CHAPTER XI
1AGRICULTURE AND RURAL DEVELOPMENT BANKS
Footnote:
1. These words were sub stituted for the words "a Land Development B anks" by Mah. 10
of 1988, s. 19.
Chapter: XI - AGRICULTURE AND RURAL DEVELOPMENT BANKS
Section 111 - Application of Chapter XI of Agriculture and Rural Development
Banks
[111. Application of ChapterXI of 1 [Agriculture and Rural Development Banks]
This Chapter shall apply to--
(a) any co-operative bank or banks advancing loansother thanshort termloans, to or
through the 2 [Agriculture and RuralDevelopment Bank], for the purposes herein
enumerated (hereinafter referred to as"the 2 [Agriculture and Rural Development Bank"]),
namely:--
(i) agricultural or rural development;
(ii) purchase of, or acquisition of title to,agricultural lands by tenants, occupants and
assignees under any law for thetime being in force;
(iii) liquidation of Governmental, Institutionaland other secured debts to agriculturists;
3 [(iv) acquisition,construction, rebuilding or repairing of dwelling houses in rural area;]
(b) any other society permitted by theRegistrar under section 142 to function as a 2
[Agriculture and RuralDevelopment Bank.]
Explanation.--For the purposes of thissection,--
(I)the expression"short term loan" means a loan for a durationof less than 18 months; and
(II) the expression "agricultural or ruraldevelopment" means any work, construction or
activity pertainingto agricultural and rural development which includes the following,
that is tosay:--
(i) construction and repairs of wells (includingtube wells), tanks and other works for
storage, supplyor distribution of water for the purpose of agriculture, or for the
consumptionof human beings and cattle employed in agriculture,
(ii) making agricultural lands fit for cultivation,improvements of land including
development of sources of irrigation,
(iii) renewal or reconstruction of any of theforegoing works, or alterations therein or
additions thereto.
(iv)preparation of lands forirrigation including command area development.
(v) drainage to, andreclamation from, rivers or other waters, or protectionfrom floods or
erosion of other damage by water, ofland,
(vi) bunding and similar improvements.
(vii) reclamation, clearance and enclosure orpermanent improvement of land for
agricultural purposes.
(viii) horticulture,
(ix) purchase of tools, implements, machineryincluding oil engines, pumping sets,
electric motors for any of the purposesmentionedherein,
(x) purchase of tractors or power tillers or anyotheragricultural machinery,
(xi) increase in productive capacity of agriculturelands,
(xii) construction, rebuilding or repairing of farmhouses, cattle-sheds and sheds for
processing orrepairing agriculture or cottage or village industrial products,
(xiii) purchase of machinery for processing ofagricultural produce,
(xiv)purchase of lands forconsolidation of holding under the relevant law for the time
being In force,
(xv)animal husbandry, anddairy farming such as purchase of milch cattle, rearing of
cross-breed femalecalves, cattle breeding, sheep and goat rearing, piggery,poultry
farming and purchase of bullocks,
(xvi)plantation including treecrops,
(xvii) forestry,
(xviii) pisciculture including development ofinland and marine fisheries, catching of fish
and all activities connectedtherewith or incidental thereto,
(xix) sericulture or apiculture,
(xx) marketing, storage including rural warehouses,godowns and cold storage and
transport of agriculture, cottage and industrialproducts, acquisition of implements and
machineries in connection with suchactivities including animal-driven carts.
(xxi) market yards for agricultural produce,
(xxii) bio-gas plants,
(xxiii) working capital or production credit toborrowers or investment credit,
(xxiv)setting up of cottage andvillage industries,
(xxv)purchase ofshares in co-operativesugar factories or in any processing industry of
agriculture produce.
(xxvi)social forestry,
(xxvii)suchotherpurposes as the State Government may, from time to time, by
notification in theOfficial Gazette, declare to beagricultural or rural development
purposes, or
(xviii) all activities incidental to, or ancillaryto, the above mentioned purposes.]
Footnote:
1. This section wassubstitutedfor the original by Mah. 20 of 1986, s. 55.
2. These words weresubstituted forthe words "a Land Development Banks" by Mah. 10
of 1988, s. 19.
3.Sub-clause (iv) was added by Mah. 5 of 1990, s. 3.
Section 112 - State and other Agriculture and Rural Development Banks
112.1[State and other Agriculture and Rural Development Banks]
2[( 1) There sh all be a3[State Agriculture and Rural Development B ank], for the State of
Maharashtra. If considered necessary by the State Government in the public interest or in
the interest of the co-operative movement, there may be one or more4[Primary
Agriculture and Rural Development B anks;] but nothing in this sub -section sh all be
taken to require the establishment or continuance of any4[Primary Agricultural and Rural
Development Banks).
( 2) A reference to Land Mortgage B ank5[or to a Land Development B ank in any law, or
instrument, for the time being in force in the State, sh all with effect from the
commencement of this Act, be constructed as a reference to a6[Agriculture and Rural
Development B ank] within the meaning of this Chapter.
( 3) With effect from the commencement of this Act, and until such time as the names of
the Land Mortgage B ank7[or of the Land Development B anks] and societies functioning
in the State at the commencement of this Act are changed into7[Agriculture and Rural
Development B anks,] all acts done by them or mortgages and other documents executed
by them, or in their favour, and all suits and other proceedings filed by or against them sh
all be deemed to have been done executed or filed as the case may be, by or against them
as7[Agriculture and Rural Development Banks.]
Footnote:
1. These words were sub stituted for the words "State and other Land Development B
anks" by Mah. 10 of 1988, s. 19.
2. Sub -section ( 1) was sub stituted by Mah. 43 of 1972, s. 3.
3. These words were sub stituted for the words "State Land Development B ank" by Mah.
10 of 1988, s. 19.
4. These words were sub stituted for the words "Primary Development B ank" by Mah.
10 of 1988, s. 19.
5. These words were inserted, by Mah. 10 of 1988, s. 20(a).
6. These words were sub stituted for the words "Land Development B anks", by Mah. 10
of 1988, s. 19.
7. These words were inserted, by Mah. 10 of 1988, s. 20(b).
Section 112A - District Loan Committee, its term of office of delegates casual
vacancies, powers of such committee, etc.
1 [112A. District Loan Committee, its term of office of delegates casual vacancies,
powers of such committee, etc.
(1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in
the bye-laws of the 2 [State Agriculture and Rural Development Bank]
(a) There shall be a District Loan Committee for each District excluding the City of
Bombay District and Bombay Suburban District.
(b) Every District Loan Committee shall consist of the following 3 [* * *] that is to say,--
4 [(i) delegates to be elected one each from every taluka in district;].
5 l(i-a) two members, one from the persons belonging to the scheduled castes or
Scheduled Tribes and one from the persons belonging to the weaker section, 6 [who shall
be elected from the District;]
(ii) the District Deputy Registrar of Co-operative Societies of the concerned district, exofficio;
(iii) the Divisional Officer of the 7 [State Agriculture and Rural Development Bank] of
the concerned division, ex-officio;
(iv) the District Branch Manager of the 7 [State Agriculture and Rural Development
Bank] of the concerned district, ex-officio, who shall also act as the Secretary of the
District Loan Committee.
8 [Provided that, in a district, where there are more than seven talukas and before the date
of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1993,
the elections to elect seven delegates on the District Loan Committee as provided by subclause
(i), as it existed then, have already been held, the State Government shall nominate
on such Committee, such additional number of delegates as may be necessary from the
talukas from which no delegates are elected, so as to bring the total number of the
delegates equal to the number of talukas in such district:
Provided further that, after having held the election as aforesaid, the two members to be
nominated by the Registrar under sub-clause (i-a), as it existed then, have not yet been
nominated by the Registrar, then the Registrar shall nominate such two members:
Provided also that, the term of office of all such nominated members shall be co-terminus
with the term of office of the seven such delegates so elected:
Provided also that, at any election held after the commencement of the Maharashtra Cooperative
Societies (Amendment) Act, 1993, any member of the State Agriculture and
Rural Development Bank in the District belonging to the Scheduled Castes or Scheduled
Tribes, or, as the case may be. weaker section, shall be eligible to contest such election;]
9 [Explanation:-- For the purpose of sub-clause (i-a) the provision of clause (b), and of
any order issued under clause (c) of the Explanation to section 73B shall apply in relation
to the members to be elected thereunder].
10 [(c) The delegates or members to be elected under sub-clauses (i) and (i-a) of clause (b)
shall be elected by direct election, by the members of the State Agriculture and Rural
Development Bank.;
(d) Save as otherwise provided in this section, every election to elect delegates 11 [and
members] shall be subject to the provisions of Chapter XI-A and shall be conducted in
the manner laid down by or under that Chapter:
Provided that, reference to an election of a member of members of the Committee of a
specified society in that Chapter or the rules made thereunder shall be deemed to be a
reference to an election of 12 (delegates or members referred to in clause (b)].
(2) Every District Loan Committee shall have a Chairman, who shall be elected by the 13
[elected delegates and members thereof] from amongst themselves.
(3) Within fifteen days* from the date of election of the delegates 14 [and the members
under sub-section (1)] an officer authorised by the Collector in that behalf shall convene
the first 15 [meeting of the delegates and 16 [* * *] members] for election of a Chairman.
The officer so authorised shall preside over such meeting, but shall not have the right to
vote.
(4) The term of office of members other than ex-officio members of a District Loan
Committee shall be for a period of five years and shall be deemed to commence on the
date of the first meeting referred to in sub-section (3) and the term of office of the
Chairman shall be coterminous with the term of such members and on expiry of their
term they shall be deemed to have vacated their offices.
(5) A causal vacancy of an elected17 [delegate, member] or Chairman occurring in the
District Loan Committee due to any reason whatsoever shall be filled by election16 [ * *
*] as soon as may be practicable after the occurrence of the vacancy:
Provided that, if the vacancy occurs within four months preceding the date on which the
term of 18 [such delegate, or as the case may be, member] expires, the vacancy shall not,
unless the Registrar otherwise directs, be filled:
Provided further that, 19 [the delegate, member] or Chairman elected 20 [***] to fill a
vacancy shall hold office so long as 21 [the delegate, member] or Chairman in whose
place he is elected 22 [ * * * ] would have held office, if the vacancy had not occurred.
(6) The District Loan Committee shall have the power to sanction by itself or to
recommend for sanction by the committee of the 23 [State Agriculture and Rural
Development Bank], as the case may be, loans to such extent and for such purposes as the
committee of the 23 [State Agriculture and Rural Development Bank] may, from time to
time, specify, and shall also perform such other functions as that committee may, from
time to time entrust to it.
24 [(7) The provision of sections 73-ID, 73A, 73-FF, 77A, 78, clauses (j) and (k) of
section 146, (j) and (k) of section 147, sections 160A and 160B shall apply mutatis
mutandis to the District Loan Committee as they apply in relation to a committee of a
society].
Footnote:
1. Sections 112A. 112B 112C were inserted by Man. 10 of 1988, s. 19.
2. These words were substituted for the words "State Land Development Bank" by Mah.
10 of 1988, s. 19.
3. These words "Twelve members were deleted by Mah. 13 of 1994, s. 10.
4. This sub-clause substituted by Mah. 13 of 1994, s. 10 (ii).
5. Sub-clause (i-a) was Inserted by Mah. 38 of 1986, s. 2(1)(b).
6. These words were substituted for the words "who shall be nominated by the Registrar"
by Mah. 13 of 1994, s.10 (ii).
7. These words were substituted for the words "State Land Development Bank" by Mah.
10 of 1988 s. 19.
8. These proviso were added, by Mah. 13 of 1994, s. 10 (iv).
9. This Explanation was substituted by Mah. 13 of 1994, s. 10(v).
10. Clause (c) was substituted by Mah. 13 of 1994, s. 10(b).
11. These words were added by Mah. 13 of 1994, s. 10(c).
12. These words were substituted by Mah. 13 of 1994, s. 10(c)(ii).
13. These words were substituted by Mah. 13 of 1994, s. 10(2).
14. These words were substituted by Mah. 13 of 1994, s. 10(3)(a).
15. These words were substituted for the words "meeting of the delegates" by Mah. 38 of
1986, s. 2(3)(b).
16. The words "nominated" deleted by Mah. 13 of 1994, s. 10(4)(b).
17. These words were substituted for the words "member, nominated member" by Mah.
13 of 1994, s. 10(4)(a).
18. These words were substituted for the words "such member" by Mah. 13 of 1994, s.
10(4)(c).
19. These words were substituted for the words "the member" by Mah. 13 of 1994, s.
10(4)(d).
20. These words "or a member nominated" deleted, by Mah. 13 of 1994, s. 10(4)(d).
21. These words were substituted by Mah. 13 of 1994, s. 10(3)(a).
22. These words were deleted by Mah. 13 of 1994.
23. These words were substituted for the words "State Land Development Bank", by
Mah. 10 of 1988. s. 19.
24. Sub-section (7) was added by Mah. 31 of 1990, s. 3.
Section 112AA - Election of delegate as member of Agriculture and Rural
Development Bank from City of Bombay District and Bombay Suburban District
1[ 112AA. Election of delegate as member of Agriculture and Rural Development
Bank from City of Bombay District and Bombay Suburban District
( 1) Notwithstanding anything contained in this Act or the rules made thereunder, the
members of the Agriculture and Rural Development B ank from the City of B ombay
District and B ombay Sub urban District sh all elect one delegate from amongst
themselves for every general body me eting of the me mbers of the Bank.
( 2) Sub ject to the provisions of section 14, the Agriculture and Rural Development B
ank sh all make bye-laws for the purpose of the election of a delegate under sub section (
1).
( 3) The power to make bye-laws conferred by sub -section ( 2) is subject to the condition
of the bye-laws being made after previous approval of the Registrar.)
Footnote:
1 . This section was inserted, by Mah. 10 of 1988, s. 21.
Section 112B - General Body and committee of State Agriculture and Rural
Development Bank
112B. General Body and committee of1[State Agriculture and Rural Development
Bank]
( 1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in
the bye-laws of the1[State Agriculture and Rural Development Bank,--]
(a) The delegates2[and me mbers] elected in accordance with the provisions of clauses (c)
and (d) of sub -section ( 1) of section 112 A3[and sub -section ( 1) of section 112 AA]] sh
all, for the purposes of section 72, constitute the general body of me mbers of the1[State
Agriculture and Rural Development Bank.]
(b) The committee of the1[State Agriculture and Rural Development B ank] sh all consist
of the following members, namely:--
(i) the Chairmen of all the District Loan Committees;
(ii)4[(A) two members, one each belonging to the Scheduled Castes or Scheduled Tribes
and the weaker section, and
( B) three women members from amongst the me mbers of the1[State Agriculture and
Rural Development B ank.] who sh all be co-opted by the committee in its first me eting
to be convened by the Collector or an officer authorised by hi m in that behalf but the
Collector or such officer sh all not, while presiding over such me eting, have a right of
vote; and where there is failure of the committee to so co-opt such me mber or me mbers,
the Collector of the Officer authorised by hi m sh all report such failure to the Registrar
within a period of seven days from the date of such me eting and thereupon the Registrar
sh all, within a period of seven days from receipt of such report, appoint on the
committee such me mber or members, as the case may be, from amongst persons entitled
to be so co-opted;
Explanation.--For the purposes of this sub -clause, the provisions of clauses (b) and (c) of
and any ord er issued under clause (c) of the Explanation to section 73B sh all, apply in
relation to the members to be co-opted or appointed under this clause;
(iii) the Chairman of the Maharashtra State Co-operative B ank (or his representative),
ex-officio;
(iv) two representatives of the employees of the1[State Agriculture and Rural
Development B ank] to be selected by the recognised union or unions of employees, from
amongst5[such employees. Where there is no recognised union or unions or where there
is no union at all, the employees sh all elect representatives from amongst themselves.
The election shall be held by the Collector in the manner laid down in Chapter XI-A of
this Act.]
(v) the Commissioner for Co-operation and Registrar of Co-operative Societies,
Maharashtra State (or his representative), ex-officio;
(vi) an Officer from the Agriculture and Co-operation Department, who is holding the
post of Officer on Special Duty or any other post not lower than that of a Deputy
Secretary to Government, to be nominated by State Government, ex-officio;
(vii) the Managing Director of the1[State Agriculture and Rural Development B ank] exofficio,
who shall also act as the secretary of the committee.
( 2) The me mbers referred to in sub -clause (i) of clause (b) of sub -section ( 1) sh all
cease to be me mbers of the committee on the date of expiry of their term as Chairmen of
the District Loan Committees and they sh all be deemed to have vacated their offices and
the term of office of the me mbers referred to in sub -clauses (ii) and (iv) of clause (b) of
sub -section ( 1) sh all be co-terminus with the term of office of the me mbers referred to
in sub -clause (i) of clause (b) of sub -section ( 1) and they sh all likewise on expiry of
their term of office ceased to be me mbers of the committee and shall be deemed to have
vacated their office.
( 3)6[(a)] The Committee sh all have a Chairman6[and a Vice-Chairman] within 15 days
after the two me mbers referred to in sub -clause (ii) of clause (b) of sub -section ( 1) are
co-opted or appointed as the case may be the Collector or an officer authorised by hi m in
that behalf sh all convenue a me eting of the me mbers of the Committee for election of a
chairman7[and a Vice-Chairman] who sh all be from the me mbers referred to in sub -
clause (i) of clause (b) of sub -section ( 1) and such me eting sh all be presided over by
the Collector or by such authorised officer, but such presiding officer and the me mbers
referred to in sub -clauses (iii), (iv), (v), (vi) and (vii) of clause (b) of sub -section ( 1) sh
all not have a right to vote at such meeting.
8[(b) Notwithstanding anything contained in clause (a), within 15 days from the date of
commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1988, the
Collector or an officer authorised by hi m in that behalf sh all convene a me eting of the
me mbers of the Committee for the election of a Vice-Chairman who sh all be from the
me mbers referred to in sub -clause (i) of clause (b) of sub -section ( 1) and such me eting
sh all be presided over by the Collector or by such authorised officer, but such presiding
officer and the me mbers referred to in sub -clauses (iv) to (vii) of clause (b) of sub -
section ( 1) sh all not have a right to vote at such me eting. The Vice-Chairman so elected
sh all hold office as such Vice-Chairman sub ject to the provisions of sub -section ( 4)].
Explanation.-- For the purposes of this sub -section, the expression "Collector" sh all
have the same me aning as in clause (a) of sub -section ( 2) of section 144A.
( 4) Without prejudice to the provisions of sub -section ( 3), the Chairman9[and Vice-
Chairman] sh all be elected every year in the first me eting of the Committee convened
within one month after the close of the co-operative year by the Collector or an officer
authorised by hi m in that behalf and where the Chairman9[or Vice-Chairman] is to be
elected to fill vacancy occurred due to any reason whatsoever the Collector or an officer
authorised by hi m in that behalf sh all convene the me eting of the Committee within one
month from the date of occurrence of the vacancy and the provisions of sub -section ( 3)
sh all mutatis mutandis apply to such meetings.
The Chairman9[and Vice-Chairman] elected under sub -section ( 3) or sub -section ( 4) sh
all cease to be the Chairman9[and Vice-Chairman] on the date preceding the date of me
eting held for election of the chairman9[and Vice-Chairman] after the close of the
cooperative year and sh all vacate his office.
( 5) A casual vacancy of a me mber referred to in sub -clauses (ii) and (iv) of clause (b) of
sub -section ( 1) due to any reason whatsoever shall be filled in by co- option by the
committee or by selection by the recognised union or unions of the employees, as the
case may be, within two months from the occurrence of such vacancy; and where there is
failure on the part of the committee or such union or unions, as the case may be, to do so,
then appointment by the Registrar:
Provided that, if the vacancy occurs within four months preceding the date on which the
term of such me mber expires, the vacancy sh all not, unless the Registrar otherwise
directs, be filled:
Provided further that, the me mber so co-opted, selected or appointed to fill a vacancy sh
all hold office so long only as the member in whose place he is co-opted, selected or
appointed would have held office, if the vacancy had not occurred.
( 6) Where a person becomes a me mber by virtue of holding any office or being an
employee, he sh all cease to be a member of the committee, as soon as he ceases to be
holder of that office or ceases to be such employee, as the case may be.
( 7) The committee sh all exercise such powers and perform such functions as may be
conferred or entrusted to it by this Act or by the rules made thereunder or by the bye-laws
of the1[State Agriculture and Rural Development Bank.]
( 8) Without prejudice to the other provisions relating to the procedure at the me eting of
the committee as maybe laid down by rules or bye-laws made in that behalf, one-third of
the total number of me mbers of the committee sh all form the quorum at any meeting of
the committee.
Footnote:
1 . These words were substituted for the words "State Land Development Bank", by Mah.
10 of 1988, s. 19.
2 . These words were inserted by Mah. 13 of 1994, s. 11.
3 . These words were inserted, by Mah. 10 of 1988, s. 22(a).
4 . This portion was substituted for the portion beginning with "two members" and
ending with "weaker section", by Mah. 20 of 1992, s. 3.
5 . These words were substituted for the words "such employees" by Mah. 7 of 1997, s.
13.
6 . Sub-section (3) was re-lettered as clause (a) of the said sub-section (3) and after the
word "Chairman" the words "and a Vice-Chairman" was Inserted, by Mah. 10 of 1988 s.
22(b).
7 . Sub-section (3) was re-lettered as clause (a) of the said sub-section (3) and after the
word "Chairman" the words "and a Vice-Chairman" was inserted, by Mah. 10 of 1988 s.
22(b).
8 . This clause (b) was inserted by Mah. 10 of 1988, s. 22(c).
9 . These words were inserted by Mah. 10 of 1988, s. 22(d).
Section 112C - [Deleted]
1[* * * * * * *]
Footnote:
1 . Section 112 C was deleted, by Mah. 10 of 1988, s. 23.
Section 113 - Appointment, powers and functions of Trustee
( 1) The Registrar, or any other person appointed by the State Government in this behalf,
sh all be Trustee for the purpose of securing the fulfilment of the obligations of the State
Development Bank to the holders of debentures issued by it.
( 2) The Trustee sh all be a corp oration sole by the name of the Trustee for the
debentures in respect of which he is appointed and sh all have perpetual succession and a
common seal, and in hi s corporate name may sue and be sued.
( 3) The powers and functions of the Trustee sh all be governed by the provisions of this
Act, and the instrument of trust executed between the1[State Agriculture Development
and Rural B ank] and the Trustee, as modified from time to time by mutual agreement
between the1[State Agriculture and Rural Development Bank] and the Trustee.
Footnote:
1 . These words were substituted for the words "State Land Development Bank", by Mah.
10 of 1988, s. 19.
Section 114 - Issue of debentures
( 1) With the previous sanction of the State Government and the Trustee, and sub ject to
such terms and conditions as the State Government may impose, the1[State Agriculture
and Rural Development B ank] in the discharge of its function as1[an Agriculture and
Rural Development B ank] may issue debentures of such denominations, for such period,
and at such rates of interest, as it may deem expedient on the security of
mortgages2[instruments of hypothecation, guarantee, pledge or charge created in favour
of the B ank, or mortgages, instruments of hypothecation, guarantee, pledge or charge to
be acquired or partly on mortgages or on any of the aforesaid instruments] held and partly
to be acquired, and properties and other assets of the1[State Agriculture and Rural
Development Bank].
( 2) Every debenture may contain a term fixing a period not exceeding thirty years from
the date of issue during which it shall be redeemable, or reserving to the committee the
right to redeem at any time in advance of the date fixed for debenture not less than three
months' notice in writing.
( 3) The total amount due on debentures issued by the1[State Agriculture and Rural
Development B ank] and outstanding at any time, shall not exceed--
(a) where debentures are issued against mortgages4[instruments of hypothecation,
guarantees, pledge or charge] held, the aggregate of--
(i) the amounts due on the mortgages;-5[and any or all of the aforesaid instruments].
(ii) the value of the properties and other assets transferred or deemed to have been
transferred under section 121 by the1[Primary Agriculture and Rural Development
Banks] to the6[State Agricultural and Rural Development Bank] and subsisting as such
time; and
(iii) The amounts paid under the mortgages7[and the other instruments] aforesaid and the
unsecured amounts remaining in the hands of the1[State Agriculture and Rural
Development Bank] or the Trustee at the time;
(b) Where debentures are issued otherwise than on mortgages8[or the instruments
aforesaid) held, the total amount as calculated under clause (a) increased by such portion
of the amount obtained on the debentures as is not covered by a mortgage,9[instruments
of hypothecation, guarantee, pledge or charge.].
Footnote:
1. These words were sub stituted for the words "State Land Development B ank" and "a
Land Development B ank" by Mah. 10 of 1988, s. 19.
2. These words were sub stituted for the words "or mortgages to be acquired or partly on
mortgages" by Mah. 5 of 1990, s. 4(a).
3. These words were inserted, by Mah. 5 1990, s. 4(b)(i)(A).
4 . These words were inserted, by Mah. 5 1990, s. 4 (b)(i)( B).
5 . These words were inserted, by Mah. 5 1990, s. 4(b)(i)(C).
6 . These words were inserted, by Mah. 5 1990, s. 4(b)(ii)(A).
7 . These words were Inserted, by Mah. 5 1990, s. 4 (b)(ii)( B)
Section 115 - Guarantee by State Government
The principal of, and interest on the debentures issued under the preceding section, or any
specified portion thereof, may carry the guarantee of the State Government and to such
conditions as the State Government may think fit to impose.
Section 116 - Vesting of property in Trustee and Debenture holders charge on assets
Upon the issue of debentures, under the provisions of section 114, the mortgage
properties and other assets1[including the properties covered by the instruments,] referred
to in sub-section ( 3) of that section held by the2[State Agriculture and Rural
Development Bank], shall vest in the Trustee, and the holders of debentures shall have a
floating charge on all such3[mortgages, instruments and assets,] and on the amount paid
under such mortgages,4[and such instruments] and remaining in the hands of the2[State
Agriculture and Rural Development Bank] or of the Trustee.
Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 5(a).
2. These words were sub stituted for the words "State Land Development B ank" and
"Land Development B ank" by Mah. 10 of 1988, s. 19.
3. These words were sub stituted for the words "mortgages and assets" by Mah. 5 of
1990, s. 5(b).
4 . These words were inserted by Mah. 5 of 1990, s. 5(c).
Section 117 - Powers of Agriculture and Rural Development Banks to advance loans
and to hold lands
117. Powers of1[Agriculture and Rural Development Banks] to advance loans and to
hold lands
Subject to the provisions of this Act and the rules made thereunder, it sh all be competent
for the1[Agriculture and Rural Development B anks] to advance loans for the purposes
referred to in section 111, and hold lands2[or dwelling houses in rural area] the
possession of which is transferred to them under the provisions of this Chapter.
Footnote:
1. These words were sub stituted for the words "Land Development B ank" by Mah. 10 of
1988, s. 19.
2 . These words were Inserted by Mah. 5 of 1990, s. 6.
Section 118 - [Deleted]
1[* ***** * *]
Footnote:
1 . Section 118 was deleted, by Mah. 10 of 1988, s. 24.
Section 119 - Order granting loan conclusive on certain matters
A written ord er by the1[Agriculture and Rural Development B ank], or persons or
committee authorised under the by-laws of the B ank to make loans for all or any of the
purposes specified in section 111, granting, either before or after the commencement of
this Act, a loan to or with the consent of a person me ntioned therein, for the purpose of
carrying out the work specified therein for the benefit of the land or for the productive
purpose2[or for the purpose of dwelling house in rural area] specified therein, shall for the
purposes of this Act be conclusive of the following matters that is to say,--
(a) that the work described or the purpose for which the loan is granted, is an
improvement or productive purpose,2[or for the purpose of dwelling house in rural area],
as the case may be, within the me aning of section 111;
(b) that the person had at the date of the ord er a right to make such an improvement or
incur expenditure for the productive purpose,2[or for the purpose of dwelling house in
rural area], as the case may be; and
(c) that the improvement is one benefiting the land3[or such dwelling house] specified
and productive purpose2[or for the purpose of dwelling house in rural area], concerns the
land4[or such dwelling house] offered in security, or any part thereof as may be relevant.
Footnote:
1. These words were sub stituted for the words "Land Development B ank" by Mah. 10 of
1988, s. 19.
2 . These words were inserted by Mah. 5 of 1990, s. 7(a).
3. These words were sub stituted for the words "a Land Development B ank", "Land
Development B ank" and "State Land Development B ank" by March. 10 of 1988, s. 19.
4 . These words were inserted by Mah. 5 of 1990, s. 7(b).
Section 120 - Priority of mortgage
( 1) A mortgage executed in favour of an1[an Agriculture and Rural Development B ank],
sh all have priority over any claim of the Government arising from a loan granted after
the execution of the mortgage under the Land Improvement Loans Act 1883, or the
Agriculturists' Loans Act, 1884, or under any other law for the time being force.
( 2) Notwithstanding anything contained in the B ombay Tenancy and Agricultural Lands
Act, 1948, or any other corresponding law for the time being in force, where a mortgage
in favour of an2[an Agriculture and Rural Development B ank] is in respect of land in
which a tenant purchaser or tenant has an interest, the mortgage may be against the
security of such interest, and the rights of the mortgage sh all not be affected by the
failure of the tenant purchaser or tenant to comply with the requirements of such law, and
the sale of the land and hi s interest therein under such law be sub ject to the prior charge
of the1[Agriculture and Rural Development Bank].
Footnote:
1. These words were sub stituted for the words "Land Development B ank" by Mah. 10 of
1988, s. 19.
2. These words were sub stituted for the words "a Land Development B ank", "Land
Development B ank" and "State Land Development B ank" by March. 10 of 1988, s. 19.
Section 121 - Mortgages and other instruments executed in favour of an Agriculture
and Rural Development Bank to stand vested in State Agriculture and Rural
Development Bank
121. Mortgages1[and other instruments] executed in favour of2[an Agriculture and
Rural Development Bank.] to stand vested in3[State Agriculture and Rural
Development Bank.]
The mortgages4[instruments of hypothecation, guarantee, pledge or charge] executed in
favour of, and all other assets transferred to2[an Agriculture and Rural Development B
ank,] by the me mbers thereof before or after the commencement of the Act, sh all, with
the date of such execution or transfer, be deemed to have been transferred by such2[an
Agriculture and Rural Development B ank] to the1[State Agriculture and Rural
Development B ank,] and sh all vest in the State Agriculture and Rural Development
Bank].
Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 8(b).
2. These words were sub stituted for the words "a Land Development B ank", "Land
Development B ank" and "State Land Development B ank" by March. 10 of 1988, s. 19.
3. These words were inserted by Mah. 5 of 1990, s. 8(a).
4. Section 122 was sub stituted for the original by Mah. 5 1990, s. 9.
Section 122 - Registration of mortgage lease etc. executed in favour of Agriculture
and Rural Development Banks
1[ 122. Registration of mortgage lease etc. executed in favour of Agriculture and
Rural Development Banks
Notwithstanding anything contained in the Indian Registration Act, 1908 it sh all not be
necessary to register mortgage, lease, hypothecation deed, loan, bond surety bond,
guarantee deed, promissory note or loan agreement executed in favour of the Agriculture
and Rural Development B ank, provided the B ank sends within such time and in such
manner as may be prescribed a copy of such instrument to the concerned registering
authority; and on receipt of the copy the registering authority sh all file the same in the
relevant books prescribed under the Registration Act, 1908:
Provided that, any such instrument executed in favour of the bank before the date of
publication of the Maharashtra Co-operative Societies (Amendment) Act, 1989 in the
Official Gazette may be sent to the concerned registering authority within the period of
three months from such date.]
Footnote:
1. Section 122 was sub stituted for the original by Mah. 5 1990, s. 9.
Section 123 - Mortgages and other instruments not to be questioned on insolvency of
mortgagors or executants
123. Mortgages 1 [and other instruments] not to be questioned on insolvency of
mortgagors 2 [or executants]
Notwithstanding anything contained in the Presidency-Towns Insolvency Act, 1909 or
the Provincial Insolvency Act, 1920 or any corresponding law for the time being in force,
a mortgage, 3 [or any other instruments supporting the loan] executed in favour of4 [an
Agriculture and Rural Development Banks] shall, not be called in question in any
insolvency proceedings on the ground that it was executed in order to give the Bank a
preference over other creditors of the mortgagor 5 [or of the executant of the instrument].
Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 10(c)(i).
2. These words were inserted by Mah. 5 of 1990, s. 10(c)(ii).
3. These words were inserted by Mah. 5 of 1990, s. 10(a).
4.These words were substituted for the words "a Land DevelopmentBank","Land
Development Bank" and "State Land DevelopmentBank" by March. 10 of 1988, s. 19.
5. These words were inserted by Mah. 5 of 1990, s. 10(b).
Section 124 - [Deleted]
1[* * * * * * * ]
Footnote:
1. Section 124 was deleted by Mah. 10 of 1988, s. 25.
Section 125 - Mortgages and other instruments executed by managers of joint Hindu
families.
125. Mortgages1[and other instruments] executed by managers of joint Hindu
families.
( 1) Mortgages2[and other instruments] in respect of loans by3[an Agriculture and Rural
Development B ank] or the3(State Agriculture and Rural Development B ank] either
before or after the commencement of this Act, by the manager of Hi ndu joint family for
the improvement of agricultural land or of the me thods of cultivation or for financing
any other me ans to raise the productivity of the land, or for the purchase of land,4[or for
creation of new movable or immovable assets or for the purpose of acquisition,
construction, rebuilding or repairing of a dwelling house in rural area] sh all be binding
on every me mber of such joint Hindu family notwithstanding any law to the contrary.
( 2) In other cases, where a mortgage5[or other instrument] executed in favour of4[an
Agriculture and Rural Development B ank] or3[State Agriculture and Rural Development
B ank] either before or after the commencement of this Act, is called in question on the
ground that it was executed by the manager of a Hi ndu joint family for purpose not
binding on the me mbers (whether such me mbers have attained maj ority or not thereof
the burden of proving the same shall, notwithstanding any law to the contrary, lie on the
party alleging it
Footnote:
1 . These words were inserted by Mah. 5 of 1990, s. 11(c).
2 . These words were Inserted by Mah. 5 of 1990, s. 11(a)(i).
3. These words were sub stituted for the words "a Land Development B ank", "State Land
Development B ank" and "Land Development B ank" by March. 10 of 1988, s. 19.
4 . These words were inserted by Mah. 5 of 1990, s. 11(a)(ii).
5 . These words were inserted by Mah. 5 of 1990, s. 11(b).
Section 126 - Section 8 of Act XXXII of 1956 to apply to mortgages and other
instruments] to an Agriculture and Rural Development Banks, subject to certain
modification
126. Section 8 of Act XXXII of 1956 to apply to mortgages 1 [andotherinstruments]
to 2 [an Agriculture and Rural Development Banks],subject tocertain modification
Section8 of theHinduMinority and Guardianship Act, 1956,shall applyto mortgages 3
[and other instruments] in favourof 2 [an Agriculture and Rural Development
Banks],subject tothe modification that reference, to court therein shall be construed
asreference to the Collector or his nominee and the appealagainst the order of the
Collector orhis nomineeshall lie tothe Commissioner.
Footnote:
1. These words were insertedby Mah. 5 of 1990, s. 12.
. These words weresubstitutedfor the words "a Land Development Bank", "StateLand
Development Bank" and "Land Development Bank" by March. 10 of 1988, s. 19.
. These words wereinserted by Mah. 5 of 1990, s. 11(c).
Section 127 - Restrictions on lease
( 1) Notwithstanding anything contained in the Transfer of Property Act, 1882 or any
other law for the time being in force, no mortgagor of property mortgaged to1[an
Agriculture and Rural Development B ank], sh all except with the prior consent in
writing of the bank, and subject to such terms and conditions as the bank may, impose,
lease or create any tenancy rights on any such property:
Provided that, the rights of the1[an Agriculture and Rural Development B ank] sh all be
enforceable against the tenant purchaser, the lessee or the tenant, as the case may be, as if
he himself were a mortgagor.
( 2) Where land, mortgaged with possession to1[an Agriculture and Rural Development B
ank], is in actual possession of a tenant, the mortgagor or the1[an Agriculture and Rural
Development B ank], sh all give notice to the tenant to pay rent to the1[an Agriculture
and Rural Development B ank] during the currency of the lease and the mortgage, and on
such notice being given the tenant sh all be deemed to have attorn to the1[an Agriculture
and Rural Development Bank].
Footnote:
1. These words were sub stituted for the words "a Land Development B ank", "State Land
Development B ank" and "Land Development B ank" by March. 10 of 1988, s. 19.
Section 128 - Agriculture and Rural Development Bank to receive money and give
discharge
128.1[Agriculture and Rural Development Bank] to receive money and give
discharge
Notwithstanding anything contained in section 121, all moneys due under the mortgage
sh all unless other wise directed by the1[State Agriculture and Rural Development B ank]
or the Trustee and communicated to the mortgagor, be payable by the mortgagor to
the1[Agriculture and Rural Development B ank], and such payment sh all be as valid as if
the mortgage had not been so transferred and the1[Agriculture and Rural Development B
ank] sh all in the absence of specific direction to the contrary, issued by the2[Stage
Agriculture and Rural Development B ank] or Trustee and communicated to the bank, be
entitled to sue on the mortgage or take any other proceeding for the recovery of the
moneys due under mortgage.
Footnote:
1 . These words were sub stituted for the words "a Land Development B ank", "State
Land Development B ank" and "Land Development B ank" by March. 10 of 1988, s. 19.
2 . These words were Inserted by Mah. 5 of 1990, s. 11(b).
Section 129 - Powers of Agriculture and Rural Development Bank where mortgaged
property is destroyed or security becomes insufficient
1[ 129. Powers of Agriculture and Rural Development Bank where mortgaged
property is destroyed or security becomes insufficient
Where any property mortgaged to an Agriculture and Rural Development B ank is wholly
or partially destroyed, or for any reason the security is rendered insufficient and the
mortgagor, having been given a reasonable opportunity by the repay such portion of the
loan as may be determined by the bank, has failed to provide such security or to repay
such portion of the loan, the whole of the loan sh all be deemed to fall due at once; and
the bank sh all be entitled to take action against the mortgagor under section 132 or
section 133 for the recovery thereof.
Explanation. -- Security sh all be deemed insufficient within the me aning of this section,
unless the value of the mortgaged property (including improvements made thereon)
exceeds the amount for the time being due on the mortgage by such proportion as may be
specified in the rules, regulations or the by-laws of the Agriculture and Rural
Development Bank.]
Footnote:
1. Section 129 was sub stituted for the original by Mah. 5 of 1990, s. 13.
Section 130 - Right of Agriculture and Rural Development Banks to buy mortgaged
property
130. Right of1[Agriculture and Rural Development Banks] to buy mortgaged
property
( 1) Property purchased under section 133 ( 3) by, and property transferred under section
100 to,2[Agriculture and Rural Development B anks], may be disposed of by such banks
by sale within such period as may be fixed by the Trustee, sub ject to the, condition that
such sales sh all be in favour only of agriculturists eligible to hold land under the B
ombay Tenancy and Agricultural Lands Act 1948, or any corresponding law for the time
being in force,3[or in favour of Tribals, if such property belongs to a Tribal] or may by
lease out by them on such terms and conditions as may be laid down by the State
Government from time to time.
4[Explanation.-- For the purposes of this sub -section and section 133 A; 'Tribal' me ans a
person belonging to a Scheduled Tribe within the me aning of the Explanation to section
36 of the Maharashtra Land Revenue Code, 1966, and includes his successor in interest.]
( 2) Nothing contained in any law for the time being in force fixing the maximum limit of
agricultural holdings sh all apply to the acquisition or holding of land by the5[Agriculture
and Rural Development Banks] under this section.
Footnote:
1. These words were sub stituted for the words "a Land Development B ank", "State Land
Development B ank" and "Land Development B ank" by March. 10 of 1988, s. 19.
2. These words were sub stituted for the words "State Land Development B ank", "Land
Development B ank" and "a Land Development B ank" by March, 10 of 1988, s. 19.
3. These words were inserted by Mah. 5 of 1990, s. 14(a).
4. This Explanation was added by Mah. 5 of 1990, s. 14(b).
5. Section 132 was sub stituted for the original by Mah. 5 of 1990, s. 15.
Section 131 - Recovery of loans by development banks
All loans granted by the1[Agriculture and Rural Development B anks, all interests (if any)
chargeable thereon, and costs (if any), incurred in making the same, sh all when they
become due, be recoverable by the1[Agriculture and Rural Development Bank]
concerned.
Footnote:
1. These words were sub stituted for the words "State Land Development B ank", "Land
Development B ank" and "a Land Development B ank" by March, 10 of 1988, s. 19.
Section 132 - Powers to distraint
1[ 132. Powers to distraint
( 1) If any instalment payable under a mortgage, hypothecation deed loan bond, surety
bond or other instrument executed in favour of Agriculture and Rural Development B
ank, or any part of such instalment, has remained unpaid for more than one month from
the date on which it fell due, the bank sh all, in addition to any other remedy available to
the bank, apply to the Registrar for recovery of such instalments or part thereof by
distraint and sale of the produce of the mortgaged or other wise encumbered land and
properties of and on such land including the standing crops thereon or the movable
property encumbered under hypothecation deed or loan bond. The instalments due or any
part thereof shall also be recoverable by distraint and sale of the new property created by
the debtor by converting the original movable property for which the loan was granted by
the bank.
( 2) On receipt of such application, the Registrar notwithstanding anything contained in
the Transfer of Property Act, 1882, take action in the manner prescribed for the purpose
of distraining and selling such produce or the properties referred to in sub section ( 1):
Provided that, no distraint shall be made after the expiry of twelve months from the date
on which the instalment fell due].
Footnote:
1. Section 132 was sub stituted for the original by Mah. 5 of 1990, s. 15.
Section 133 - Sale of mortgaged property
1[ 133. Sale of mortgaged property
( 1) Notwithstanding anything contained in the Transfer of Property Act, 1882, the
Agriculture and Rural Development B ank or any person authorised by it in this behalf sh
all, in case of default of payment of the mortgage money, or any part thereof, have power,
in addition to any other remedy available to the bank, to bring the mortgaged property to
sale by public auction in the village in which the mortgaged property is situated or at the
nearest place of public resort, without the intervention of the Court;
Provided that, no action sh all be taken under this sub -section and no such power shall be
exercised, unless and until --
(a) the Agriculture and Rural Development B ank has been previously authorised to
exercise the power conferred under this sub-section after hearing the objections, if any, of
the mortgager or mortgagors,
(b) notice in writing requiring payment of such mortgage money or part thereof has been
served upon --
(i) the mortgager or each of the mortgagors,
(ii) any person who has any interest in or charge upon the property mortgaged, or in or
upon the right to redeem the same as far as it known to the bank,
(iii) any surety for the payment of the mortgaged debt or any part thereof, and
(iv) any creditor of the mortgager who has in a suit for administration of his estate
obtained a decree for sale of mortgaged property, and
(c) default has been made in payment of such mortgage money or part thereof, for three
months after service of the notice.
( 2) Where Agriculture and Rural Development B ank fails to take action against a
defaulter under section 129 or 132 or under this section the Trustee may take such action.
If such action is taken by the Trustee, the provisions of this Chapter and of any rules
prescribed sh all apply in respect thereto, as if all references to the Agriculture and Rural
Development Bank in the said provision were references to the Trustee.
( 3) Notwithstanding anything contained in any law for the time being in force, is sh all
be lawful for a primary Agriculture and Rural Development Bank to purchase any
mortgaged property sold under this Chapter.
Footnote:
1. Section 133 was sub stituted for the original by Mah. 5 of 1990, s. 16.
Section 133A - Mortgaged or encumbered property of Tribal and to be sold to non-
Tribal at public auction under section 133
1[ 133 A. Mortgaged or encumbered property of Tribal and to be sold to non-Tribal
at public auction under section 133
Notwithstanding anything contained in this Act or in any other law for. t he time being in
force, where the mortgaged or encumbered property belongs to a Tribal, it sh all not be
sold to any non-Tribal bidder at public auction under section 133 or otherwise transferred
to a non-tribal under the provisions of this Act.]
Footnote:
1 . Section 133 A was inserted by Mah. 5 of 1990, s. 17.
Section 134 - Confirmation of sale
( 1) On effecting the sale by1[an Agriculture and Rural Development B ank] under
section 133, the bank sh all, in the prescribed manner, sub mit to the1[State Agriculture
Development B ank] and the result of the sales, and the1[State Agriculture and Rural
Development Bank] may, with the approval of the Registrar, confirm the sale or cancel it.
( 2) Where the sale is effected by the1[State Agriculture and Development B ank] or the
trustee under section 133, the1[State Agriculture and Development B ank] or the Trustee,
as the case may be, sh all in the prescribed manner submit to the Registrar a report setting
forth the manner in which the sale has been effected and the result of the sale, and the
Registrar may confirm or cancel the sale.
Footnote:
1. These words were sub stituted for the words "State Land Development B ank", "Land
Development B ank" and "a Land Development B ank" by March. 10 of 1988, s. 19.
Section 135 - Disposal of sale-proceeds
The proceeds of every sale effected under section 133 and confirmed under the preceding
section, sh all be applied first in payment of all costs, charges and expenses incurred in
connection with the sale or attempted sales, secondly in payment of all costs, charges and
expenses incurred in connection with the sales or attempted sales, secondly in payment of
any or all interest due on account of the mortgage1[or encumberance) in consequences
whereof the2[mortgage or other wise encumbered property] was sold, and thirdly in
payment of the principal due on account of the mortgage1[or encumberance] including
costs and charges incidental to the recovery.
If there remain any residue from the proceeds of sale, the same be paid to the person
proving hi mself interested in the property sold, or if there are more such persons than
one, then to such persons upon their joint receipt or according to their respective interest
therein, as may be determined by the3[Agriculture and Rural Development Bank]:
Provided that, before any such payments are made the unsecured dues owing--
(a) from the mortgagor to the4[or the debtor] to the3[Agricultural and Rural Development
Bank] may be adjusted, and
(b) from any me mber or past me mber or whom the mortgagor4[or the debtor] is indebted
may also be adjusted under the written authority given by such me mber and past
member, and after holding such inquiry as may be deemed necessary.
Footnote:
1. These words were inserted, by Mah. 5 of 1990, s. 18(a).
2. These words were sub stituted for the words "mortgage property", by Mah. 5 of 1990,
s. 18(b).
3. These words were sub stituted for the words "State Land Development B ank", "Land
Development B ank" and "a Land Development B ank" by March. 10 of 1988, s. 19.
4. These words were inserted, by Mah. 5 of 1990, s. 18(c).
Section 136 - Certificate to purchase, delivery of property and title of purchase
( 1) Where a sale of mortgaged property has become absolute under section 134 and the
sale-proceeds have been received in full by the1[Agriculture and Rural Development B
ank], the bank sh all grant a certificate to the purchaser in the prescribed form certifying
the property sold, the sale-price, the date of its sale, the name of the person who at the
time of the sale is declared to be the purchaser, and the date on which the sale became
absolute; and upon the production of such certificate the Sub -Registrar appointed under
the India Registration Act, 1908, within the limits of whose jurisdiction the whole or any
part of the property specified in the certificate is situated, sh all enter the contents of such
certificate in his register relating to immovable property.
( 2) (a) Where the mortgaged property sold is in the occupancy of the mortgagor, or of
some person on hi s behalf, or some person claiming under a title created by the
mortgagor, sub sequent to the mortgage in favour of the1[State Agriculture and Rural
Development B ank] or2[an Agriculture and Rural Development B ank] and a certificate
in respect thereof has been granted under the foregoing sub -section, the Collector sh all,
on the application of the purchaser, ord er delivery to be made by putting such purchaser
or any person whom he may appoint to receive delivery on his behalf, in possession of
the property.
(b) Where the property sold is in the occupancy of a tenant or other person entitled to
occupy the same, and a certificate in respect thereof has been granted under the foregoing
sub -section, the Collector sh all, on the application of the purchaser and after notice to
such tenants or other persons, ord er the delivery to be made by affixing copy of the
certificate of sale in a conspicuous place on the property and proclaiming to the occupant
by beat of dr um or other customary mode at some convenient place that the right, title
and interest of the mortgagor have been transferred to the purchaser.
( 3) Where any property is sold in the exercise or purported exercise of a power of sale
under section 133, the title of the purchaser sh all not be questioned on the ground that
the circumstances required for authorising the sale had not arisen, due notice of the sale
was not given, or the power of sale was otherwise improperly or irregularly exercised:
Provided that, any person who suffers damage on account of unauthorised, improper or
irregular exercise of such power sh all have a remedy in damages against the1[Agriculture
and Rural Development Bank).
Footnote:
1. These words were sub stituted for the words "State Land Development Bank", "Land
Development
2. These words were inserted, by Mah. 5 of 1990, s. 18(a).
Section 137 - Recovery of loans on certificate by Registrar
( 1) Notwithstanding anything contained in section 91 and 98, on an application made
by1[an Agriculture and Rural Development B ank] for the recovery of arrears of any sum
advanced by it to any of its me mbers and on its furnishing a statement of accounts in
respect of the arrears, the Registrar may, after making such enquiries as he deems fit.
grant a certificate for the recovery of the amount stated therein to be due as arrears.
( 2) A certificate by the Registrar under sub -section ( 1) sh all be final and conclusive as
to arrears due. The arrears stated to be due therein shall be recoverable according to the
law for the time being in force for the recovery of arrears of land revenue.
( 3) It sh all be lawful to the Collector to take precautionary me asures authorised by
sections 140 to 144 of the B ombay Land Revenue Code, 1879 or any law or provision
corresponding thereto for the time being in force until the arrears due to the1[Agriculture
and Rural Development Bank] together with interest and any incidental charges incurred
in the recovery of such arrears, are paid or security of such arrears is furnished to the
satisfaction of the Registrar.
( 4) It sh all be competent for the Registrar or a person authorised by hi m to direct
conditional attachment of the property of the mortgagor until the arrears due to
the1[Agriculture and Rural Development B ank] together with interest and any incidental
charges incurred in recovery of such arrears, are paid or security for payment of a such
arrears is furnished to the satisfaction of the Registrar and the provisions of section 95
shall apply mutatis mutandis to conditional attachment of any property made or to be
made under this section.
Footnote:
1. These words were sub stituted for the words "State Land Development B ank", "Land
Development B ank" and "a Land Development B ank" by March. 10 of 1988, s. 19.
Section 138 - Mode of recovery by Collector
138.1[Mode of recovery by Collector]
2[* * * * * *]
( 2) Any amount due to3[4[an Agriculture and Rural Development B ank] (Including cost
of recovery thereof) sh all on an application by it in this behalf] be recoverable by the
Collector, or any officer5[including an Officer of the Agriculture and Rural Development
Bank] specially authorised by the Collector in this behalf, in all or any or the following
modes, namely:--
(a) from the borrower--as if they were arrears of land revenue due by him:
(b) out of the land for benefit of which the loan has been granted--as if they were arrears
of land revenue due in respect of that land;
(c) from a surety (if any)--as if they were arrears of land revenue due by him;
(d) out of the property comprised in the collateral security (if any)--according to the
procedure for the realisation of land revenue by the sale of immovable properly other
than the land on which the revenue is due.
Footnote:
1. This marginal note was sub stituted by Mah. 33 of 1963, s. 27(c).
2 . Sub -section ( 1) was deleted by Mah. 33 of 1963, s. 27(a).
3. These words were sub stituted for the words "a Land Development B ank sh all", by
Mah. 33 of 1963 s. 27(a).
4. These words were sub stituted for the words "a Land Development B ank". "Land
Development B anks" "State Land Development B ank", and "a Land development B
ank" respectively, by March. 10 of 1988, s. 19.
5 . These words were inserted by Mah. 10 of 1988, s. 26.
Section 139 - Officers or members of family not to bid at auction sales
1[ 139. Officers or members of family not to bid at auction sales
At any sale of movable or immovable property, held under the provisions of this Chapter,
no officer or employee or any me mber of the family of such officer or employee of2[a
Agriculture and Rural Development B ank] except on behalf of the bank of which he is
an officer or an employee, and no person having any duty to perform in connection with
such sale, shall either directly or indirectly bid for or acquire or attempt to acquire any
interest in such property.
Explanation.--For the purposes of this section, the expression "member of the family"
means wife, husband, father, mother, bother, sister, son, daughter, son-in-law or
daughter-in- law].
Footnote:
1. Section 139 was sub stituted for the original by Mah. 20, of 1986, s. 56.
2. These words were sub stituted for the words "a Land Development B ank". "Land
Development B anks" "State Land Development B ank", and "a Land development B
ank" respectively, by March. 10 of 1988, s. 19.
Section 140 - Section 40 of Bom. XXVIII of 1947 not to apply to alienation in favour
of Agriculture and Rural Development Bank
140. Section 40 of B om. XXVIII of 1947 not to apply to alienation in favour
of1[Agriculture and Rural Development Bank]
Nothing contained in section 40 of the B ombay Agricultural Debtors Relief Act, 1947, or
any corresponding law for the time being in force in any part of the State sh all apply to
any alienation in favour of the1[Agriculture and Rural Development Banks].
Footnote:
1. These words were sub stituted for the words "a Land Development B ank". "Land
Development B anks" "State Land Development B ank", and "a Land development B
ank" respectively, by March. 10 of 1988, s. 19.
Section 141 - Provision for Guarantee funds to meet certain losses
(1) It shall be competent for the State Government to constitute one or more Guarantee
Funds on such terms and conditions as it may deem fit, for the purpose of meeting losses
that might arise as a result of loans being made by the 1 [Agriculture and Rural
Development Banks] on titles to immovable property subsequently found to be defective
or for any other purpose under for or create a separate Guarantee Fund.
(2) The 1 [State Agriculture and Rural Development Bank] and the 1 [Agriculture and
Rural Development Banks] shall contribute to such funds at such rate as may be
prescribed, and the constitution, maintenance and utilisation of such funds shall be
governed by such rules, as may be made by the State Government in this behalf.
Footnote:
1. These words were substituted for the words "a Land Development Bank". "Land
Development Banks" "State Land Development Bank", and "a Land development Bank"
respectively, by March. 10 of 1988, s. 19.
Section 142 - Registrar's power to permit any society or Class of societies to function
as an Agriculture and Rural Development Bank
142. Registrar's power to permit any1 [society]2 [or Class of societies] to function as3
[an Agriculture and Rural DevelopmentBank]
It shall be competent for theRegistrar to permit any 1 [society) 2 [or class of societies
tofunction as 3 [an Agriculture and Rural Development Bank] under such terms
andconditions and for such period as he may deem fit.
Footnote:
1. This word wassubstitutedfor the words "Co-operative bank" by Mah. 20 of 1986, s. 57.
2. These words wereinserted by Mah. 10 of 1988, s. 27.
3. These words weresubstitutedfor the words "a Land Development Bank",
"LandDevelopment Banks" "State Land Development Bank", and "aLand development
Bank" respectively, by March. 10 of 1988, s. 19.
Section 143 - Service of notice
The provisions of sections 102 and 103 of the Transfer of Property Act, 1882, and to any
rules made under section 104 thereof, shall apply, so far as may be in respect of all
notices to be served under this Chapter.
Section 143A - Transfer of rights and liabilities of Government in respect of schemes
sanctioned under Bom. XXVIII of 1942
1[ 143A.Transfer of rights and liabilities of Government in respect of schemes
sanctioned under Bom. XXVIII of 1942
( 1) Where any works, included in a land improvement scheme which has come into force
under the B ombay Land Improvement Schemes Act, 1942, are carried out at the cost or
part cost of the State Government, and such cost is to be recovered from the owners of
lands (other than Government) included in the scheme as sh own in the statement
prepared under section 132[or in the interim or final statement] prepared under section 13
A of the Act, then notwithstanding anything contained in this Act, all the rights and
liabilities of the State Government for the recovery of the cost or part cost from the
owners of land sh all stand transferred to3[an Agriculture and Rural Development B ank],
in relation to such owners of lands and sub ject to such terms and conditions (including
any condition regarding giving of any guarantee by the State Government) as may be
agreed upon between the State Government and such3[Agriculture and Rural
Development B ank]; and for arriving at such agreement, every owner of land sh all
produce before the B ank all such documents, and other evidence relating to hi s land
included in such scheme as the Bank may requires.
( 2) On such transfer of rights and liabilities of the State Government, the3[Agriculture
and Rural Development B ank] sh all pay to the State Government an amount equal to the
extent of the liability accepted by it under such agreement, and the State Government sh
all inform the owners of lands concerned of such transfer: and thereupon, the provisions
of this Act and rules thereunder in so far as they provide for advancing of loans
(including provision for mortgaging of property,) and recovery thereof sh all apply in
relation to the amount of cost to be recovered from each owner of land as they apply in
relation to advancing of loans and recovery thereof (including interest) as if such owner
was a me mber of the3[Agriculture and Rural Development B ank]. The transfer of the
and liabilities and payment made in accordance therewith; sh all discharge the owners of
lands of their liability to make payment to the State Government under the B ombay Land
Improvement Schemes Act, 1942, but to the extent only of their respective liability
accepted by the Bank].
Footnote:
1 . Section 143 A was inserted by Mah. 35 1969, s. 2.
2. These words were sub stituted for the words "or In the final statement" by Mah. 10 of
1971, s. 2.
3. These words were sub stituted for the words "a Land Development B ank", "Land
Development B anks" "State Land Development B ank", and "a Land development B
ank" respectively, by March. 10 of 1988, s. 19.
Section 144 - Power to Committee of State Agriculture and Rural Development
Bank to supervise Agriculture and Rural Development Banks and make regulations
144. Power to Committee of 1 [State Agriculture andRural Development Bank] to
supervise 1 [Agriculture and RuralDevelopment Banks] and make regulations
The committee of the1 [State Agriculture andRural Development Bank] shall have a
general powerof supervision over 1 [Agriculture and Rural Development Banks] and
may,with theprevious sanction of the State Government make regulations, not
inconsistentwith this Act or the rules made thereunder, for all any of the
followingmatters, namely:--
(a) for the inspection of the account books andproceedings of 2 [Agriculture and Rural
Development Banks];
(b) for the submission of returns andreports by such banks in respect of their transactions;
(c) for the periodical settlement of accountsbetween such banks and the 2 [State
Agriculture andRural Development Bank] being accounts relating to the payment of
theamounts recovered by such banks on mortgages transferred to the 2 [State Agriculture
andRural Development Bank];
(d) for the form in which applications to suchbanks for loans shall be made and for the
valuation of propertiesoffered as security for such loans;
(e)for the investment ofmoneys realised from the mortgagors;
(f) the conditions of service of employees of suchbanks:
(g)the programme and policyto be followed by such banks for making loans;
(h) the types and extent ofsecurity to be obtained by such banks of advancing loans;
(i) generally, for the purpose of safeguarding theinterest of the parties furtherance of
activities of such banks, and carryingout the purposes of this Chapter.
Footnote:
1. These words weresubstitutedfor the words "a Land Development Bank",
"LandDevelopment Banks" "Stale Land Development Bank", and "aLand development
Bank" respectively, by March. 10 of 1988, s. 19.
2. These wordssubstitutedfor the words "Land Development banks", "State Land
Development Bank". "PrimaryLand Development Banks" and "Primary Land
Development Bank" by Mah. 10 of 1988, s. 19.
Section 144IA - Reorganisation, amalgamation or division of 2[Agriculture and
Rural Development Banks,] in public interest
1[144.IA Reorganisation, amalgamation or division of2[Agriculture and Rural
Development Banks,] in public interest
(1) Notwithstanding anything in this Act or in any rules or bye-laws made thereunder, it
shall be lawful for the State Government to provide from time to time, by an Order made
under and in accordance with the provisions of sectiion 18, for the reorganisation of
the2[Primary Agriculture and Rural Development Banks], either by amalgamating with it
all any of the2[Primary Agriculture and Rural Development Banks] or otherwise: or for
the division of the2[State Agriculture and Rural Development Banks] into a 2[State
Agriculture and Rural Development Bank] and one or more2[Primary Agriculture and
Rural Development Banks] as may be considered necessary: or for the amalgamation or
division of all or any of the2[Primary Agriculture and Rural Development Banks] among
themselves. Accordingly. for the purposes of this section. in section 18 and in any rules
made thereunder for the word "Registrar" wherever it occurs. the words. "State
Government" shall be deemed to be substituted.
(2) Where there is no2[Primary Agriculture and Rural Development Bank] in the State or
in any part thereof. or2[Primary Agriculture and Rural Development Banks] are merged
with the2[State Agriculture and Rural Development Bank]2[State Agriculture and Rural
Development Bank] amy establish and maintain as many branches as may be deemed
necessary: and shall function also as a2[Primary Agriculture and Development Bank]
throughout the State or in the area concerned, as the case may be. Any reference to
a2[Primary Agriculture and Rural Development Bank] in this Act. or any other law for
the time being in force or in any instrument, shall, as the context may require, be
construed as a reference to the2[Primary Agriculture and Rural Development Bank] or its
branches concerned, or be read subject to such modifications as may be necessary due to
absence of any2[Primary Agriculture and Rural Development Bank] or due to merger of
the2[Primary Agriculture and Rural Development Bank] or Banks in the2[State
Agruculture and Rural Development Bank.].
Footnote:
1. Section 144-IA was inserted by Mah of 1972, s. 4.
2. These words substituted for the words "Land Development banks", "State Land
Development Bank", "Primary Land development Banks" and "Primary Land
Development Bank" by Mah. 10 of 1988, s. 19.
Section 144IB - [Deleted]
1[* * * * *]
Footnote:
1. Section 144 - 1B was deleted by Mah. 10 of 1988, s. 28.
Chapter XIA - ELECTIONS OF COMMITTEES AND OFFICERS OF CERTAIN
SOCIETIES
1[CHAPTER XI-A
2[ELECTIONS OF COMMITTEES AND OFFICERS OF CERTAIN SOCIETIES]
Footnote:
1. Chapter XI-A was inserted by Mah. 27 of 1969, s. 20, r ead with Mah. 27 of 1971, s. 6.
2. This heading was sub stituted by Mah. 3 of 1974, s. 32.
Chapter: XIA - ELECTIONS OF COMMITTEES AND OFFICERS OF CERTAIN
SOCIETIES
Section 144A - Application of this Chapter and definitions
( 1)1[2[This Chapter] sh all apply] only to elections to committees of societies belonging
to the categories specified in section 73-G.
( 2) In this Chapter, unless the context otherwise requires.--
(a) "Collector" me ans the Collector having jurisdiction over the local areas in which the
registered office of the society concerned is situated;3[and includes the Additional
Collector, and also any officer not below the rank of Deputy Collector, appointed by the
State Government to exercise the powers and to perform the duties of the Collector under
this Chapter];
(b) "election" me ans an election of a me mber or me mbers of the committee4[or of
officer or officers] of a specified society;
(c) "specified society" me ans a society belonging to any of the categories specified in
section 73-G.
Footnote:
1. This portion was substituted for the word "This chapter shall apply" by Mah. 3 of
1974, s. 33(a).
2. These words were sub stituted for the words, figures and letter "except section 144 -Y,
this Chapter" by Mah. 10 of 1988, s. 29(a).
3. This portion was added, by Mah. 3 of 1974, s. 33(b).
4 . These words were inserted by Mah. 10 of 1988, s. 29(b).
Section 144B - When elections to be held
Every election shall be held as far as possible some time prior to the date on which the
term of office of the retiring member or members is due to expire. If a vacancy occurs
due to any other reason, it shall be filled as early as practicable.
Section 144C - Conduct of elections
(1) Save as otherwise provided, every election shall be held on such date or dates as the
Collector may fix, and shall be conducted under his control by such Returning Officer
and other officers, as may be appointed by the Collector in this behalf.
(2) In all cases where a society has to send a nominee as a member of the committee of
any specified society, the election of such nominee shall be conducted under the control
of the Collector of the District in which the registered office of the society sending the
nominee is situated.
(3) In all cases, where the by-laws of a specified society authorise the Government
nominee or the nominee of a Financing Agency to be a member of the committee of the
society, no election need be held for such purpose.
(4) The voting at every election shall be by secret ballot.
Section 144D - Cost of conducting elections
(1) The expenses of the holding of any election, including the payment of travelling
allowances, daily allowances and other remuneration, if any, to the persons appointed to
exercise the powers and perform the duties in respect of the elections, shall be borne by
the specified society concerned.
(2) For this purpose, the Collector may call upon a specified society to deposit with him
such amount as he considers necessary for the conduct of the election. Within eight days
from the receipt of such direction from the Collector, the society shall deposit the
specified amount with the Collector.
(3) The Collector shall maintain an account of the expenses incurred in connection with
the election and within six months from the declaration of results of the election, render
the same to the society concerned, and shall refund to the society the balance, if any,
remaining unspent. If the expenditure exceeds the amount of deposit, the Collector shall
call upon the society to pay the excess amount as specified by him within eight days from
the receipt of the direction from him, and the society shall comply with such direction.
(4) On failure of a specified society to pay as aforesaid the deposit amount or to pay the
excess amount, the Collector may recover the sums due, together with interest thereon at
the rate of 12 per cent, per annum, from the society as arrears of land revenue.
Section 144E - Disqualifications for membership
( 1) A person sh all be disqualified for being elected as, and for being a member of the
committee of any specified society,--
1[(a) if he is a salaried employee of any society (other than a society of employees
themselves) or holds any office of profit under any society, except when he holds or is
appointed to the office of a Managing Director or any other office declared by the State
Government by general or special ord er not to disqualify its holder or is entitled to be or
is elected, appointed or co-opted to any reserved seat on the committee of a society under
section 73BB;]
(b) if he has been convicted of an offence punishable under section 153 A or section 171
E or 171 F or sub -section 144 Q or clause (a) of sub -section ( 2) or sub section ( 3) of
section 505 of the Indian Penal Code, or unless section 144 Q or clause (a) of sub -section
( 2) of section 144 R of this Act, unless a period of six years has elapsed of five years
since the date of his conviction;
(c) if he has found convicted by a Court in India for any offence and sentenced to
imprisonment for not less than two years, unless a period of five years has elapsed since
his release;
(d) if he is found guilty of a corrupt practice by the Commissioner of the Division, unless
a period of six years has elapsed since the date on which the decision of the
Commissioner takes effect;
2I(d- 1) If he has more than two children:
Provided that, a person having more than two children on the date of commencement of
the Maharashtra Co-operative Societies (Third Amendment) Act, 2001 (h ereinafter in
this clause referred to as "the date of such commencement"), shall not be disqualified
under this clause so long as the number of children he has on the date of such
commencement does not increase:
Provided further that, a child or more than one child born in a single delivery within the
period of one year from the date of such commencement sh all not be taken into
consideration for the purpose of disqualification mentioned in this clause.
Explanation.-- For the purposes of this clause.--
(i) where a coulple has only one chile on or after the date of such commencement, any
number of children born out of a single sub sequent delivery shall be deemed to be one
entity;
(ii) "child" does not include an adopted child or children; (e) if he so disqualified by or
under any other provision of this Act.
( 2) For the purpose of clause (a) of sub -section ( 1), a person sh all not be deemed to
hold an office of profit under a society, if he does not receive any remuneration other
than compensatory allowance, or honorarium payable under sub -section ( 2) of section
65 not exceeding rupees six thousand per year.
Explanation.--In this sub -section, "compensatory allowance" me ans the travelling
allowance, the daily allowance or such other allowance which is paid to the holder of the
office for the purpose of meeting the personal expenditure in performing the functions as
holder of that office.
( 3) Notwithstanding anything contained in clause (b) or (c) of sub -section ( 1) a
disqualification under either clause sh all not, in the case of a person who on the date of
the conviction is a member of any specified society, take effect until three months have
elapsed from that date or, if within that period an appeal or application for revision is
brought in respect of the conviction or the sentence until, that appeal or application is
disposed of by the Court.
Footnote:
1. Clause (a) was deemed always to have been sub stituted by Mah. 3 of 1974, s. 34 ( 1),
for saving see s. 34 ( 2).
2. Clause (d- 1) was inserted by Mah. 34 of 2001, (w.e.f. 7 - 9 - 2001) s. 10.
Section 144F - Account of election expenses, maximum thereof and lodging of
account
( 1) Every candidate at an election sh all keep a separate and correct account of all
expenditure in connection with the election incurred or authorised by him.
( 2) The account shall contain such particulars as may be prescribed.
( 3) The total of the said expenditure sh all not exceed such amount as may be specified
by the State Government, by general or special order, published in the official Gazette.
( 4) Every contesting candidate at an election sh all, within thirty days from the date of
election of the returned candidate or, if there are more than one returned candidate at the
election and the dates of their election are different, the later of those two dates, lodge
with the Collector an account of hi s election expenses which sh all be true copy of the
account kept by hi m under sub -section ( 1).
1[( 5) Every returning officer at an election sh all keep a separate and accurate account of
all expenditure in connection with the election, incurred or authorised by him.
( 6) The Accounts shall contain all the particulars related to the expenses for conduct of
the election.
( 7) The total of the election expenditure sh all not exceed such amount as may be
specified by the State Government, by general or special order, published in the Official
Gazette.
( 8) Every returning officer at an election sh all, within forty-live days from the date of
election of the returned candidate sh all lodge with the Collector, Registrar or concerned
society, as the case may be, the account of the election expenditure which sh all be a true
copy of the account kept by hi m under sub -section ( 5). The Collector or as the case may
be, the Registrar shall convey such election expenditure to the concerned society within
ten days from the date on which he receives the account of the election expenditure from
the returning officer.
( 9) If the returning officer fails to perform the duties as provided in sub -section ( 8), he
sh all not be entitled to claim the remuneration for the conduct of the election and he sh
all also be liable to pay back all the amount taken by him from the society as advance, for
conducting the election, within a period of forty-five days from the date of declaration of
the result:
Provided that before passing of such ord er against the returning officer denying hi m the
remuneration for the conduct of the election and directing hi m to repaying the advance
taken for conducting the elections, the concerned authority sh all give him, a reasonable
opportunity of being heard.]
Footnote:
1. Sub -section ( 5) to ( 9) were added by Mah. 34 of 2001, (w.e.f. 7 - 9 - 2001) s. 11
Section 144G - Disqualification for failure to lodge account of election expenses
If the Collector is satisfied that a person,--
(a) has failed to lodge an account of election expenses within the time and in the manner
required by the last preceding section, and
(b) has no good reason or justification for the failure,
the Collector shall, by order published, in the Official Gazette, declare him to be
disqualified for being elected as, and for being, a member of the committee of any
specified society, and any such person shall be disqualified for a period of three years
from the date of the order.
Section 144H - Removal or reduction of period of disqualification
The State Government may, for reasons to be recorded, remove any disqualification
under this Chapter or reduce the period of any such disqualification.
Section 144-I - Corrupt practices
The following shall be deemed to be corrupt practices for the purposes of this Chapter:--
(1) "Bribery", that is to say,--
(A) any gift offer or promise by a candidate or his agent of by any other person with the
consent of a candidate or his election agent of any gratification, to any person
whomsoever, with the object, directly or indirectly of including--
(a) a person to stand or not to stand as, or to withdraw or not to withdraw from being a
candidate at an election; or
(b) an elector to vote or refrain from voting at an election, or as a reward to--
(i) a person for having so stood or not stood, or for having withdrawn or not having
withdrawn his candidature; or
(ii) an elector for having voted or refrained from voting;
(B) the receipt of, or agreement to receive, any gratification, whether as a motive or
reward--
(a) by a person for standing or not standing as, or for withdrawing or not withdrawing
from being, a candidate; or
(b) by any person whomsoever for himself or any other person for voting or refraining
from voting, or inducing or attempting to induce any elector to vote or refrain from
voting, or any candidate to withdraw or not to withdraw his candidature.
Explanation.--For the purposes of this clause, the term "gratification" is not restricted to
pecuniary gratifications or gratifications estimable in money and it includes all forms of
entertainment and all forms of employment for reward, but it does not include the
payment of any expenses bona fide incurred at, or for the purpose of, any election and
duly entered in the account of election expenses referred to in section 144-F.
(2) Undue influence, that is to say, any direct or indirect interference or attempt to
interfere on the part of the candidate or his agent, with the free exercise of any electoral
right:
Provided that--
(a) Without prejudice to the generality of the provisions of this clause, any such person as
is referred to therein who--
(i) threatens any candidate or any elector, or an elector to believe that he, or any person in
whom he is interested with injury of any kind including social obstracism and excommunication
or expulsion from any case or community, or
(ii) induces or attempts to induce a candidate or an elector to believe that he, or any
person in whom he is interested, will become or will be rendered an object of divine
displeasure or spiritual censure,
shall be deemed to interfere with the free exercise of the electoral right of such candidate
or elector within the meaning of this clause;
(b) a declaration of public policy, or a promise of public action, or the mere exercise of a
legal right without intent to interfere with an electoral right, shall not be deemed to be
interference within the meaning of this clause.
(3) The hiring or procuring, whether on payment or otherwise, of any vehicle or vessel by
a candidate or his agent or by any other person with the consent of a candidate or his
election agent, or the use of such vehicle or vessel for the free conveyance of any elector
(other than the candidate himself, the members of his family or his agent) to or from any
polling station:
Provided that, the hiring of a vehicle or vessel by an elector or by several electors at their
electors at their joint costs for the purpose of conveying him or them to and from any
polling station shall not be deemed to be a corrupt practice under this clause:
Provided further that, the use of any public transport vehicle or vessel or railway carriage
by any elector at his own cost for the purpose of going to or coming from any polling
station shall not be deemed to be a corrupt practice.
Explanation.--In the clause and in the next succeeding clause, the expression "vehicle"
means any vehicle used or capable of being used for the purpose of road transport,
whether propelled by mechanical power or otherwise and whether used for drawing after
vehicles or otherwise.
(4) The use of vehicles belonging to a specified society for the purposes of any election.
(5) The incurring or authorizing of expenditure in contravention of section 144-F.
(6) Making special advances of loans or otherwise favouring any elector or group of
electors between the date of declaration of programme for an election and date of
declaration of the result thereof.
Section 144J - Maintenance of secrecy of voting
(1) Every officer, clerk, agent or other person who performs any duty in connection with
the recording or counting of Votes at an election shall maintain, and aid in maintaining
the secrecy of the voting and shall not (except for some purpose authorised by or under
any law) communicate to any person any information calculated to violate such secrecy.
(2) Any person who contravenes the provisions of sub-section (1) shall, on conviction, be
punished with imprisonment for a term which may extend to three months, or with fine,
or with both.
Section 144K - Officers etc., at elections not to act for candidates or to influence
voting
(1) No person who is a Returning Officer or an Assistant Returning Officer or a Presiding
or Polling Officer at an election, or an officer or clerk appointed by the Returning Officer
or the Presiding Officer to perform any duty in connection with an election shall in the
conduct or the management of the election do any act (other than the giving of vote) for
the furtherance of the prospects of the election of a candidate.
(2) No such person as aforesaid, and no member of a Police Force, shall endeavour--
(a) to persuade any person to give his vote at an election, or
(b) to dissuade any person from giving his vote at an election, or
(c) to influence the voting of any person at an election in any manner.
(3) Any person who contravenes the provisions of sub-section (1) or sub-section (2) shall,
on conviction be punished with imprisonment which may extend to six months, or with
fine, or with both.
(4) An offence punishable under sub-section (3) shall be cognizable.
Section 144L - Prohibition of canvassing in or near polling station
(1) No person shall, on the date or dates on which a poll is taken at any polling station,
commit any of the following acts within the polling station or in any public or private
place within a distance of one hundred metres of the polling station, namely:--
(a) canvassing for votes; or
(b) soliciting the vote of any elector; or
(c) persuading any elector not to vote for any particular candidate; or
(d) persuading any elector not to vote at the election; or
(e) exhibiting any notice or sign (other than an official notice) relating to the election.
(2) Any person who contravenes the provisions of sub-section (1) shall, on conviction be
punished with fine which may extend to two hundred and fifty rupees.
(3) An offence punishable under sub-section (2) shall be cognizable.
Section 144M - Penalty for disorderly conduct in or near polling stations
(1) No person shall, on the date or dates on which a poll is taken at any poling station--
(a) use or operate within or at the entrance of the polling station, or in any public or
private place in the neighbourhood thereof, any apparatus for amplifying or reproducing
the human voice, such as a megaphone or a loud-speaker, or
(b) shout, or otherwise act in a disorderly manner, within or at entrance or the polling
station or in any public or private place in the neighbourhood thereof, so as to cause
annoyance to any person visiting the polling station for the poll, or so as to interfere with
the work of the officers and other persons on duty at the polling station.
(2) Any person who contravenes wilfully aids or abets the contravention of, the
provisions of sub-section (1) shall, on conviction, be punished with imprisonment which
may extend to three months, or with fine, or with both.
(3) If the Presiding Officer of a polling station has reason to believe that any person is
committing or has committed an offence punishable under this section, he may direct any
police officer to arrest such person, and thereupon the police officer shall arrest him.
(4) Any police officer may take such steps, and use such force, as may be reasonably
necessary for preventing any contravention of the provisions of sub-section (1) and may
seize any apparatus used for such contravention.
Section 144N - Penalty for misconduct at the polling station
(1) Any person who during the hours fixed for the poll at any polling station misconducts
himself or fails to obey the lawful directions of the Presiding Officer may be removed
from the polling station by the Presiding Officer or by any Police Officer on duty or by
any person authorised in this behalf by such Presiding Officer.
(2) The powers conferred by sub-section (1) shall not be exercised so as to prevent any
elector who is otherwise entitled to vote at a polling station from having an opportunity
of voting at that station.
(3) If any person who has been so removed from a polling station re-enters the polling
station without the permission of the Presiding Officer, he shall, on conviction, be
punished with imprisonment for a term which may extend to three months, or with fine,
or with both.
(4) An offence punishable under sub-section (3) shall be cognizable.
Section 144-O - Penalty for illegal hiring or procuring of conveyances at elections
If any person is guilty of any such corrupt practice as is specified in clause (3) or (4) of
section 144-I at or in connection with an election, he shall, on conviction, be punished
with fine which may extend to one thousand rupees.
Section 144P - Breaches of official duty in connection with election
(1) If any person to whom this section applies is without reasonable cause guilty of any
act or omission in breach of his official duty; he shall, on conviction, be punished with
fine which may extend to five hundred rupees.
(2) An offence punishable under sub-section (1) shall be congnizable.
(3) No suit or other legal proceedings shall lie against any such person for damages in
respect of any such act or omission as aforesaid.
(4) The persons to whom this section applies are the Returning Officers, Assistant
Returning Officers, Presiding Officers, Polling Officers and any other persons appointed
to perform any duty in connection with the receipt of nomination or withdrawal of
candidatures, or the recording or counting of votes at an election; and the expression
"official duty" shall for the purposes of this section be construed accordingly, but shall
not include duties imposed otherwise than by or under this Act.
Section 144Q - Removal of ballot papers from polling station to be an offence
(1) Any person who at any election fraudulently takes, or attempts to take, a ballot paper
out of a polling station, or wilfully aids or abets the doing of any such act, shall on
conviction be punished with imprisonment for a term which may extend to one year, or
with fine which may extend to five hundred rupees, or with both.
(2) If the Presiding Officer of a polling station has reason to believe that any person is
committing or has committed an offence punishable under sub-section (1), a police
officer to arrest such persons and may search such person or cause him to be searched by
a police officer:
Provided that, when it is necessary to cause a woman to be searched, search shall be
made by another woman with strict regard to decency.
(3) Any ballot paper found upon the person arrested on search shall be made over for safe
custody to a police officer by the Presiding Officer, or when the search is made by a
police officer, shall be kept by such officer in safe custody.
(4) An offence punishable under sub-section (1) shall be cognizable.
Section 144R - Other offences and penalties therefor
(1) A person shall be guilty of an electoral offence, if at any election he--
(a) fraudulently defaces or fraudulently destroys any nomination paper; or
(b) fraudulently defaces, destroys or removes any list, notice or other document affixed
by or under the authority of a Returning Officer; or
(c) fraudulently defaces or fraudulently destroys any ballot paper or the official mark on
any ballot paper or any declaration of identity or official envelope used in connection
with voting by postal ballot; or
(d) without due authority supplies any ballot to any person or receives any ballot paper
from any person or is in possession of any ballot paper; or
(e) fraudulently puts into any ballot box anything other than the ballot paper which he is
authorised by law to put in; or
(f) without due authority destroys, takes, opens or otherwise interferes with any ballot
box or ballot papers then in use for the purpose of the election; or
(g) fraudulently or without due authority, as the case may be, attempts to do any of the
foregoing acts or wilfully aids or abets the doing of any such acts.
(2) Any person guilty of an electoral offence under this section shall--
(a) if he is a Returning Officer or an Assistant Returning Officer or a Presiding Officer at
a polling station or any other officer or clerk employed on official duty in connection
with the election, on conviction, be punished with imprisonment for a term which may
extend to two years, or with fine or with both;
(b) if he is any other person, on conviction, be punished with imprisonment for a term
which may extend to six months, or with fine, or with both.
(3) For the purpose of this section, a person shall be deemed to be on official duty if his
duty is to take part in the conduct of an election or part of an election including the
counting of votes or to be responsible after an election for the used ballot papers and
other documents connection with such election, but the expression "official duty" shall
not include any duty imposed otherwise that by or under this Act.
(4) An offence punishable under sub-section (2) shall be cognizable.
Section 144S - Application of section 148 to offences under this Chapter subject to
certain modifications
The provisions of section 148 sh all apply to the offences under this Chapter, sub ject to
the1[modification that] no prosecution for an offence punishable under this Chapter shall
be lodged, except with the previous sanction of the Collector.
Footnote:
1. These words were sub stituted for the portion beginning with the words "modifications
that" and ending with; the figures and words " 1898 and that" by Mah. 20 of 1986, s. 58.
Section 144T - Disputes relating to elections to be submitted to the Commissioner or
other specified officer
144T. Disputes relating to elections to be submitted to the Commissioner1[or other
specified officer]
( 1) Notwithstanding anything contained in section 91 or any other provisions of this Act,
any dispute relating to an election sh all be referred to the Commissioner of the Division
in which such election is held2[or to an officer not below the rank of Additional
Commissioner of a Division authorised by the State Government in this behalf
(hereinafter in this section either of them as the context may require is referred to as "the
specified officer")].
( 2) Such reference may be made by an aggrieved party by presenting an election petition
to3[the specified officer], within a period of two months from the date of declaration of
the result of the election:
Provided that,3[the specified officer] that he had sufficient cause for not preferring the
petition within the said period.
( 3) In exercising the functions conferred on hi m by or under this Chapter,4[the specified
officer] shall have the same powers as were vested in a Court in respect of,--
(a) proof of facts by affidavit;
(b) summoning and enforcing the attendance of any person and examining him on oath;
(c) compelling discovery or the production of documents; and
(d) issuing commissions for the examination of witnesses.
In the case of any such affidavit, an officer appointed by3[the specified officer] in this
behalf may administer the oath to the deponent.
( 4) Sub ject to any rules made by the State Government in this behalf, any such petition
sh all be heard and disposed of by3[the specified officer] as expeditiously as possible. An
ord er made by3[the specified officer] on such petition sh all be final and conclusive and
shall not be called in question in any Court.
Footnote:
1. These words were added, by Mah. 36 of 1975, s. 11(c).
2. This portion was inserted by Mah. 36 of 1975, s. 11(a).
3. These words were sub stituted for the words "the Commissioner", by Mah. 36 of 1975,
s. 11(b).
4. These words were sub stituted for the portion beginning with the words "modifications
that" and ending with; the figures and words " 1898 and that" by Mah. 20 of 1986, s. 58.
Section 144U - Deposit towards costs for hearing and power to award costs for
hearing and power to award costs
A petitioner presenting an election petition under the last preceding section shall pay a
deposit not exceeding Rs. 500 as the Commissioner may direct towards the costs for
hearing the petition. Unless the petitioner deposits the same as aforesaid, the petition
shall be summarily dismissed. Subject to such conditions as may be prescribed, at the
time of deciding the petition, the Commissioner shall assess the costs of the hearing of
the petition and shall require the petitioner or the respondents, or both as the case may be,
to defray the whole or in such proportion as he thinks fit, the costs of the petition
including the deposit so made. The Commissioner shall credit to Government such sum
as he assesses as the cost to Government of hearing the petition (but not exceeding Rs.
500 in any case).
Section 144V - Contents of petition
(1) An election petition shall--
(a) contain a concise statement of the material facts on which the petitioner relies;
(b) set forth full particulars of any corrupt practice that the petitioner alleges, including as
full a statement as possible of the names of the parties alleged to have committed such
corrupt practice and the date and place of the commission of each such practice; and
(c) be signed by the petitioner and verified in the manner laid down in the Code of Civil
Procedure, 1908, for the verification of pleadings:
Provided that, where the petitioner alleges any corrupt practice, the petition shall also be
accompanied by an affidavit in support of the allegation of such corrupt practice and the
particulars thereof.
(2) Any schedule or annexure to the petition shall also be signed by the petitioner and
verified in the same manner as the petition.
Section 144W - Relief that may be claimed by the petitioner
A petitioner may, in addition to claiming a declaration that the election of all or any of
the returned candidates is void, claim a further declaration that the himself or any other
candidate has been duly elected.
Section 144X - Power to make rules for purposes of this chapter
Without prejudice to any other power to make rules contained else-where in this Act. the
State Government may make rules consistent with this Act generally to provide for and to
regulate all or any of the other matters relating to the various stages of the
elections1[including preparation of list of voters].
Footnote:
1. These brackets and words were deemed always to have been added by Mah. 3 of 1974,
s. 35.
Section 144Y - Special provision for election of officers of specified societies
1[ 144Y. Special provision for election of officers of specified societies
( 1) This section shall apply only to election of officers by members of committees of
societies belonging to the categories specified in section 73-G.
( 2)2[After the election of the members of he committee and, where necessary, co-option
or appointment, as the case may be, of members to the reserved seats under section 73-
B] or whenever such election is due, the election of the officer or officers of any such
society shall be held as provided in its bye-laws but any meeting of the committee for this
purpose shall be presided over by the Collector or an officer nominated by him in this
behalf.]
Footnote:
1. Section 144 -Y was inserted, b y Mah. 3 of 1974, s. 36.
2. These words, figures and letter were sub stituted for the words, "after the election of
the me mbers of the committee" by Mah. 18 of 1984, s. 4.
Chapter: XII - OFFENCES AND PENALTIES
Section 145 - Prohibition of use of the words
(1) No person, other than a society registered, or deemed to be registered, under this Act,
and a person or his successor in interest of any name or title under which he traded or
carried on business at the date on which this Act comes into force, shall without the
sanction of the date on which this Act comes into force, shall without the sanction of the
State Government, function, trade or carry on business under any name or title of which
the word "co-operative", or its equivalent in any Indian language, forms part.
(2) Every person contravening the provisions of the foregoing sub-section shall, on
conviction, be punished with fine which may extend to five hundred rupees.
Section 146 - Offences
It shall be a offence under this Act, if--
(a) any me mber of a society transfers any property or interest in property in
contravention of sub -section ( 2) of section 47 or any person knowingly acquires, or
abets in the acquisition of, such property;
(b) any employer every director, manager, secretary or other officer or agent acting on
behalf of such employer who, without sufficient cause, fails to comply with sub -section (
2) of section 49; or
(c) a committee of a society or an officer or me mber thereof fails to invest funds of such
society in the manner required by section 70; or
(d) any person, collecting sh are money for a society in formation, does not within a
reasonable period deposit the same in the State Co-operative B ank, or a Central Cooperative
B ank, or an Urban Co-operative B ank or a Postal Savings Bank; or
(e) any person, collecting the sh are money for a society in formation, makes use of the
funds so raised for conducting any business or trading in the name of society to be
registered or otherwise; or
1[(e-1) any person, who collects sh are money or any other sum by misrepresentation to
the me mbers or prospective me mbers in the name of the society to be registered, or after
registration of a society by such misrepresentation, or otherwise; or
(e- 2) any person, knowingly gives a false certificate in whatever form sh owing that a
person is or is not a "defaulter" within the me aning he of that expression in the
Explanation to clause (i) of sub -section ( 1) of section 73-FF; or;].
(f) a committee of a society, or an officer or me mber thereof, fails to comply with the
provisions of sub -sections ( 2), ( 3) or ( 4) of section 75; or
(g) any officer or me mber of a society who is in possession of information, books and
records, fails to furnish such information or produce books and papers, or give assistance
to a person appointed or authorised by the State Government or the Registrar under
section 78, 81, 84. 94 or 103; or
(h) any officer of a society fails to hand over the custody of books, records, cash, security
and other property belonging to the society of which he is an officer, to a person
appointed under section 78 or 103; or
(i) a committee of a society with a working capital of fifty thousand rupees or more, or
any officer or a me mber thereof, fails without any reasonable excuse to give any notice,
send any return or document, do or allow to be done anything which the committee,
officer or me mber is by this Act required to give, send, do or allow to be done or comply
with ord ers made under section 79; or
(j) a committee of a society or an officer or me mber thereof wilfully neglects or refuses
to do any act, or to furnish any information required for the purposes of this Act by the
Registrar, or other person duly authorised by him in writing in this behalf; or
(k) a committee of a society, or an officer or member thereof, wilfully makes a false
return, or furnishes false information, or fails to maintain proper accounts; or
(l) any officer, me mber agent or servant of a society fails to comply with the
requirements of sub -section ( 4) of section 81; or
(m) any officer or a me mber of a society wilfully fails to comply with any decision,
award or ord er passed under section2[ 96]; or
(n) a me mber of a society fraudulently disposes of property over which the society has a
prior claim, or a me mber or officer or employee or any person disposes of hi s property
by sale, transfer, mortgage, gift or otherwise, with the fraudulent intention of evading the
dues of the society; or
(o) any officer of a society wilfully recommends or sanctions for hi s own personal use or
benefit or for the use or benefit of a person in whom he is interested, a loan in the name
of any other person; or
(p) any officer or me mber of a society destroys, mutilates, tampers with, or otherwise
alters, falsifies or secrets or is privy to the destruction, multilation, alteration, falsification
or secreting of any books, papers or securities or makes, or is privy to the making of any
false or fraudulent entry in any register, book of account or document belonging to the
society; or
(q) any officer or member of a society or any person does any act declared by the rules to
be an offence.
Explanation.--For the purpose of this section, an officer or a me mber referred to in the
section sh all include past officer and past member, as the case may be.
Footnote:
1. These clauses were inserted by Mah. 20 of 1986, s. 59.
2. These figures were sub stituted for the figures " 93 " by Mah. 33 of 1963, s. 28
Section 147 - Punishments for offences under section 146
Every society, officer or past officer, me mber or past me mber, employee or past
employee of a society, or any other person, who commits an offence under section 146
shall, on conviction, be punished,--
(a) if it is an offence under clause (a) of that section, with imprisonment for a term which
may extend to six months, or with fine which may extend to five hundred rupees, or with
both:
(b) if it is an offence under clause (b) of that section, with imprisonment for a term which
may extend to1[three years], or with fine which may extend to five thousand rupees, or
with both;
(c) if it is an offence under clause (c) of that section, with fine which may extend to five
hundred rupees;
(d) if it is an offence under clause (e) of that section, with fine which may extend to five
hundred rupees;
(e) if it is an offence under clause (e) of that section, with imprisonment for a term which
may extend to one year, or with fine, or with both;
2[e-1) if it is an offence under clause (e- 1) of that section, with imprisonment of a term
which may be extend to three years, or with fine which may extend to five thousand
rupees, or with both;
(e- 2) if it is an offence under clause (e- 2) of that section, with imprisonment of a term
which may extend to three years, or with fine which may extend to five thousand rupees,
or with both;].
(f) if it is an offence under clause (f) of that section, with fine which may extend to two
hundred an fifty rupees;
(g) if it is an offence under clause (g) of that section, with fine which may extend to five
hundred rupees;
(h) if it is an offence under clause (h) of that section, with fine which may extend to five
hundred rupees;
(i) if it is an offence under clause (i) of that section, with fine which may extend to five
hundred rupees;
(j) if it is an offence under clause (j) of that section, with imprisonment for a term which
may extend to one month, or with fine which may extend to five hundred rupees, or with
both;
(k) if it is an offence under clause (k) of that section, with imprisonment for a term which
may extend to one year, or with fine which may to one year, or with fine which may
extend to two thousand rupees, or with both;
(l) if it is an offence under clause (l) of that section, with fine which may extend to one
hundred rupees;
(m) if it is an offence under clause (m) of that section, with imprisonment for a term
which may extend to six months, or with fine which may extend to five hundred rupees,
or with both;
(n) if it is an offence under clause (n) of that section, with imprisonment for a term which
may extend to six months, or with fine which may extend to one thousand rupees, or with
both;
(o) if it is an offence under clause (o) of that section, with imprisonment for a term which
may extend to two years, or with fine, or with both;
(p) if it is an offence under clause (p) of that section, with imprisonment for a term which
may extend to three years, or with fine, or with both;
(q) if it is an offence under clause (q) of that section, with fine which may extend to two
hundred and fifty rupees.
Footnote:
1. These words were sub stituted for the words "one month" by Mah. 20, of 1986, s.
60(a).
2. These clauses inserted by Mah. 20 of 1986, s. 60(b).
Section 148 - Cognizance of offences
( 1) No court inferior to that of a1[Metropolitan Magistrate or a Judicial Magistrate of the
First Class], shall try and offence under this Act.
2[* * * * * *]
3[( 3) No prosecution under this Act shall be lodged, except with the previous sanction of
the Registrar.]
Footnote:
1. These words were sub stituted for the words "Presidency Magistrate or a Magistrate of
the First Class" by Mah. 20 of 1986, s. 61(a).
2 . Sub -section ( 2) was deleted, by Mah. 20 of 1986, s. 61(b).
3. This sub -section was sub stituted by Mah. 7 of 1997, s. 14.
Section 148A - Contempt of Co-operative Courts and of Co-operative Appellate
Court
1[ 148A. Contempt of Co-operative Courts and of Co-operative Appellate Court
( 1) If any person--
(a) when ordered by a Co-operative Court or the Co-operative Appellate Court to produce
or deliver up any document or to furnish information, being legally bound so to do,
intentionally, omits to do so; or
(b) when required by any such Court to bind himself by an oath or affirmation to state the
truth, refuses to do so;
(c) being legally bound to state the truth on any sub ject to any such Court, refuses to
answer any question demanded of hi m touching such subject by the Court; or
(d) intentionally offers any insult or causes any interruption to any such Court at any
stage of its judicial proceeding;
he shall, on conviction, be punished with imprisonment for a term which may extend to
six months, or with fine which may extend to one thousand rupees, or with both.
( 2) If any person refuses to sign any statement made by hi m, when required to do so by
a Co-operative Court or the Co-operative Appellate Court, he shall, on conviction, be
punished with imprisonment for a term which may extend to three months, or with fine
which may extend to five hundred rupees, or with both.
( 3) If any offence under sub -section ( 1) or ( 2) is committed in the view or presence of
a Court concerned, the said Court may, after recording the facts constituting the offence
and the statement of the accused as provided in the2[Code of Criminal Procedure, 1973 ],
forward the case to a Magistrate having jurisdiction to try the same, and may require
security to be given or the appearance of the accused person before such Magistrate or, if
sufficient security is not given, sh all forward such person in custody to such Magistrate.
The Magistrate to whom any case is so forwarded sh all proceed to hear the complaint
against the accused person in the manner provided in the2[Code of Criminal Procedure,
1973.]
( 4) If any person commits any act or publishes any writing which is calculated to
improperly influence a Co-operative Court or the Co-operative Appellate Court to bring
any such Court or a me mber thereof into disrepute or contempt or to lower its or hi s
authority, or to interfere with the lawful process of the said authorities, such person shall
be deemed to be guilty of contempt of the said authorities.
( 5) In the case of contempt of itself, the Co-operative Appellate Court sh all record the
facts constituting such contempt, and make a report in that behalf to the High Court
( 6) In the case of contempt of a Co-operative Court, the Co-operative Court sh all record
the facts constituting such contempt, and make a report in that behalf to the Cooperative
Appellate Court, and thereupon, that Court may, if it considers it expedient to do so,
forward the report to the High Court.
( 7) When any intimation or report in respect of any contempt is received by the Hi gh
Court under sub -section ( 5) or ( 6), the Hi gh Court sh all deal with such contempt as if
it were contempt of itself, and shall have and exercise in respect of it the same
jurisdiction, powers and authority in accordance with the same procedure and practice as
it has and exercises in respect of contempt of itself.]
Footnote:
1 . Section 148 A was inserted by Mah. 3 of 1974, s. 37.
2. These words and figures were substituted for the words and figures "Code of Criminal
procedure, 1898" by Mah. 20 of 1986, s. 62.
Chapter: XIII - APPEALS, REVIEW AND REVISION
Section 149 - Maharashtra State Co-operative Appellate Court
149. Maharashtra State Co-operative1 [Appellate Court]
2 [(1) A Court tobe called the Maharashtra State Co-operative Appellate Court is hereby
constitutedto exercise the powers and to discharge the functions conferred on it by
orunder this Act.]
(2) The [Co-operative AppellateCourt] shall consist of the President, 4 [and such number
ofother membersas the State Government may from time to time consider necessary, who
possess]such qualifications as may be prescribed. 5 [The President and other
membersshall holdoffice for such period or such different periods as may be prescribed.]
(3) Any vacancy in themembershipof the 3 [Co-operative Appellate Court]shall befilled
by the State Government.
[(4) All or any of thepowers and functions of the Co-operative Appellate Court may be
exercised anddischarged by any of its members sitting singly orin Benches, as may be
determined by the President.]
(5) Such Benchesshallconsist of two or more members.
(6) Where a matter is heard 7 [byan odd number of members constituting a Bench] the
opinion of themajorityshallprevail, and the decision shall be in accordance withthe
opinion of the majority. Where a mater is heard by an even number ofmembers
theopinion of the president shall prevail; and inother casesthe matter shall be referred for
hearing to the President, andshall bedecided in accordance with his decision.
(7)Subject tothe previous sanction of the State Government, the 3 [Co-operative
AppellateCourt] shall frame regulations, consistent with provisionsof this Act and rules
made thereunder, for regulating its procedure and thedisposal of its business.
(8) Theregulations made under sub-section (7),shall bepublished in the official Gazette.
(9) The 3 [Co-operative AppellateCourt] may call for and examine the record of any
proceeding in which an appeallies to it, for the purpose of satisfying itself as to the
legality orpropriety of any decision or order passed. If in anycase, it appears to the 3 [Cooperative
AppellateCourt] that any such decision or ordershould bemodified, annulled or
reversed, the 3 [Co-operative AppellateCourt] may pass such order thereon as it may
deem just.
(10) Where [an appeal or applicationis made to the er pending the decisionof the appeal
ers as may be necessaryfor the ends of justice, or to prevent the abuse of the process of
the 3 [Co-operative AppellateCourt].
(11) Anorder passedin appeal, or in revision under sub-section (9), or in review
undersection 150 by the 3 [Co-operative AppellateCourt], shall be final and conclusive,
andshall be notcalled in question in any Civil or Revenue Court.
[(12)(a) ThePresident and other members of the Maharashtra State Co-operativeTribunal
functioning immediately before the commencement of the MaharashtraCo-operative
Societies (Third Amendment) Act, 1973,shall bedeemed, respectively to be the President
and other Members of the MaharashtraState Co-operative Appellate Court constituted for
the purpose of this Act; andall appeals and other proceedings pending before the said
Tribunalshall beheard and disposed of by the said Court from the stage they reached
before suchcommencement.
(b) Anything done or any action taken (includingany orders passed or regulations made)
by the saidTribunal, shall be deemed to have been done or taken by thesaid Court and
shall continue in operation until, duly modified orannulled.
(c) Any reference to the said Tribunal in any lawor instrument, for the time being in
force, shall, with effect from thecommencement of the Maharashtra Co-operative
Societies (Third Amendment) Act, 1973, be construed as areference to the said Court].
Footnote:
1. These words weresubstitutedfor the word "Tribunal", by Mah. 3 of 1974, s. 38(e).
2. Sub-section (1)wassubstitutedby Mah. 3 of 1974, s. 38(a).
3. These words weresubstituted forthe word "Tribunal", by Mah. 3 of 1974, 38(c).
4. These words weresubstitutedfor the words "and not more than three other members
possessing" byMah. 27 of 1971, s. 3.
5. These words wereinserted by Mah. 3 of 1974, s. 38(b).
6.Sub-section (4) wassubstitutedfor the original by Mah. 36 of 1975, s. 12(c).
7.These words weresubstitutedfor the words "by three members" by Mah. 36 of 1975, s.
12(b).
8. These words weresubstitutedfor the words "and appeal is made to the Tribunal under
section 97" by Mah. 33 of 1963, s. 29(a).
9. These words wereinserted by Mah. 20 of 1986, s. 29(b).
10.Sub-section (12)was added byMah. 3 of 1974, s. 38(d).
Section 150 - Review of orders of Co-operative Appellate Court
150. Review of orders of 1 [Co-operative Appellate Court]
(1) The 1 [Co-operative Appellate Court] may, either on the application of the Registrar,
or on the application of any party interested, review its own order in any case, and pass in
reference thereto such order as it thinks Just:
Provided that, no such application made by the party interested shall be entertained,
unless the 1 [Co-operative Appellate Court] is satisfied that there has been the discovery
of new and important matter of evidence, which after the exercise of due diligence was
not within the knowledge of the applicant or could not be produced by him at the time
when its order was made, or that there has been some mistake or error apparent on the
face of the record, or for any other sufficient reason:
Provided further that, no such order shall be varied or revised, unless notice has been
given to the parties interested to appear and be heard in support of such order.
(2) An application for review under the foregoing sub-section by any party, shall be made
within ninety days from date of the communication of the order of the 1 [Co-operative
Appellate Court).
Footnote:
1. These words were substituted for the word "Tribunal", by Mah. 3 of 1974, s. 39.
Section 151 - Co-operative Appellate Court to have power of Civil Court
151.1[Co-operative Appellate Court] to have power of Civil Court
( 1) In exercising the functions conferred on it by or under this Act, the2[Co-operative
Appellate Court] shall have the same powers as are vested in a Court in respect of,--
(a) proof of facts by affidavit,
(b) summoning and enforcing the attendance of any person and examining him on oath,
(c) compelling discovery or the production of documents, and
(d) issuing commissions for the examination of witnesses.
( 2) In the case of any such affidavit, any officer appointed by the2[Co-operative
Appellate Court] in this behalf may administer the oath to the deponent.
Footnote:
1. These words were sub stituted for the word "Tribunal", by Mah. 3 of 1974, s. 39.
2. These words were sub stituted for the word "Tribunal", by Mah. 3 of 1974, s. 40.
Section 152 - Appeals
( 1) An appeal against an ord er or decision1[under sections 4, 9, 11, 12, 13, 14, 17, 18,
19, 21 21 A, 29, 35, 77 A,2[ 78, 79, 88, and 105 including an ord er for paying
compensation to a society] shall lie,--
(a) if made or sanctioned or approved by the Registrar, or the Additional or Joint
Registrar on whom the powers of the Registrar are conferred, to the State Government,
(b) if made or sanctioned by any person other than the Registrar, or the Additional or
Joint Registrar on whom the powers of the Registrar are conferred, to the Registrar.
3[( 2) Where an appeal against an ord er or decision to the Co-operative Appellate Court
has been provided under this Act, it shall lie to the Co-operative Appellate Court].
( 3) An appeal under sub -section ( 1) or ( 2) sh all be filed within two months of the date
of the communication of the order or decision.
4[( 4) Save as expressly provided, no appeal sh all lie against any ord er, decision or
award passed in accordance with the provisions of this Act; and every such ord er,
decision or award sh all, whether expressly provided or not, be final, but sh all always be
sub ject to the provisions for revision in this Act; and where an appeal has been provided
for, any ord er passed on appeal sh all likewise be final, but be subject to such revision
provisions].
Footnote:
1. These words figures and letters were sub stituted for the words and figures "under
sections 4, 9. 12, 13, 14, 17, 18, 19, 21, 29, 35, 78, a nd 105 " by Mah. 10 of 1988, s. 30.
2. These words were substituted by Mah. 13 of 1994, s. 12 (a).
3. Sub -section ( 2) was substituted by Mah. 13 of 1994, s. 12(b).
4. Sub -section ( 4) was substituted for the original by Mah. 37 of 1965, s. 2 and the said
sub -section shall be deemed always to have been enacted in this form.
Section 152A - Appeal against rejection of nomination paper at election
1[ 152A. Appeal against rejection of nomination paper at election
( 1) Notwithstanding anything contained in this Act or the rules or the bye-laws made
there under, a person aggrieved by the rejection of nomination of a candidate at the
election of a committee of any society, other than a society specified by or under section
73 G, may file an appeal to the Registrar within three days of the date of rejection of the
nomination. The Registrar sh all dispose of such appeal within ten days of the date of
receipt of such appeal and the decision of the Registrar in appeal shall be final and no
further appeal or revision sh all lie against the decision of the Registrar in such
appeal.2[In the case of a society specified by or under section 73 G, an appeal shall lie to
the Divisional Commissioner who sh all dispose of such appeal within ten days from the
date of receipt of such appeal and the decision shall lie against the decision of the
Divisional Commissioner in such appeal.].
( 2) Notwithstanding anything contained in this Act or the rules or the bye-laws made
there under, the list of validly nominated candidates shall be subject to the decision of
any appeal filed under sub -section ( 1), and the period between the date of scrutiny of
nomination papers and the last date of the withdrawal of candidatures shall not be less
than fifteen days.].
Footnote:
1. Section 152 A was inserted by Mah. 20 of 1986, s. 63.
2. This portion was added by Mah. 10 of 1988, s. 31.
Section 153 - Extension of period of limitation by appellate authority in certain cases
In all cases in which it is provided under this Act that an appeal may be filed against any
decision or order within a specified period, the appellate authority may admit an appeal
after the expiry of such period, if the appellant satisfies the appellate authority that he had
sufficient cause for not preferring the appeal within such period.
Section 154 - Revisionary powers of State Government and Registrar
1[ 154. Revisionary powers of State Government and Registrar
( 1) The State Government or the Registrar, suo moto r on an application, may call for
and examine the record of any inquiry or proceedings of any matter, other than those
referred to in sub -section ( 9) of section 149, where any decision or order has been
passed by any sub ordinate officer, and no appeal lies against such decision or order for
the purpose of satisfying themselves as to the legality or propriety of any such decision or
order, and as to the regularity of such proceedings. If in any case, it appears to the State
Government, or the Registrar, that any decision or order so called for should be
modified, annulled or reversed, the State Government or the Registrar, as the case may
be, may, after giving the person affected thereby an opportunity of being heard, pass such
orders thereon as to it or him may seem just.
( 2) Under this section, the revision shall lie to the State Government if the decision or
order is passed by the Registrar, the Additional Registrar or a Joint Registrar, and to the
Registrar if passed by any other officer.
2[( 2 A) No application for revision shall be entertained against the recovery certificate
issued by the Registrar under section 101 unless the applicant deposits with the
concerned society, fifty per cent. amount of the total amount of recoverable dues.
( 3) No application for revision shall be entertained, if made after two months of the date
of communication of the decision or order. The revisional authority may entertain any
such application made after such period, if the applicant satisfies it that he had sufficient
cause for not making the application within such period.
( 4) The State Government may, by order, direct that the powers conferred on it by this
section shall, in such circumstances and under such conditions, if any, as may be
specified in the direction, be exercised also by an officer of the rank of Secretary to
Government.]
Footnote:
1. Section 154 was substituted by Mah. 3 of 1974, s. 42.
2 . Sub -section ( 2 A) was Inserted by Mah. 41 of 2000, s. 5, (w.e.f. 23 - 8 - 2000).
1[CHAPTER XIII-A
MAHARASHTRA STATE CO-OPERATIVE COUNCIL
Footnote:
1. Chapter XIII-A was inserted by Mah. 20 of 1986. s. 64.
Chapter: XIIIA - MAHARASHTRA STATE CO-OPERATIVE COUNCIL
Section 154A - Constitution of State Co-operative Council, its functions, etc.
(1) There shall be a Council to be called the Maharashtra State Co-operative Council
consisting of such number of members, including the Chairman and the Vice-Chairman,
as the State Government may determine and nominate from time to time.
(2) The State Government shall appoint a Secretary of the Council.
(3) The functions of the Council constituted under sub-section (1) shall be as follows,
namely:--
(a) to advise the State Government on all matters relating to co-operative movement;
(b) to review the co-operative movement and to suggest ways of co-ordinating the
activities of co-operative societies in the State;
(c) to suggest ways and means to remove the difficulties experienced by the cooperative
societies;
(d) to report to the State Government on such matters as may be referred to it by the State
Government;
(e) to recommend the plans and policies for the development of co-operative movement
in the State;
(f) to evaluate existing schemes and suggest new schemes for co-operative development
especially for the development of backward classes and economically weaker sections of
the society;
(g) to advise the State Government for the implementation of special scheme of economic
development through co-operative methods; and
(h) to undertake studies for any of the purposes aforesaid either through department or
specialised bodies.
(4) The State Government may, be general or special order, provide for--
(a) the calling of the meetings of the Council and the procedure at such meetings.
(b) duties of the Secretary to the Council,
(c) sub-committee or committees of the Council,
(d) the term of office of members of the Council and travelling and daily allowances
admissible to the members of the Council.]
Chapter: XIV - MISCELLANEOUS
Section 155 - Recovery of sums due to Government
(1) Unless otherwise provided by this Act, all sums due from a society or from an officer
or member or a deceased member of a society as such to the Government, may be
recovered according to the law and under the rules for the time in force for the recovery
of arrears of land revenue.
(2) Sums due from a society to the Government and recoverable under the foregoing subsection
may be recovered, firstly from the property of the society, secondly in the case of
a society of which the liability of the members is limited, from the members or past
members or the estate of deceased members subject to the limit of their liability, and
thirdly, in the case of societies with unlimited liability, from the members or past
members or estate of deceased members.
(3) The liability of past members or estate of deceased members shall in all cases be
subject to the provisions of section 33.
Section 156 - Registrar's powers to recover certain sums by attachment and sale of
property
( 1) The Registrar or any officer sub ordinate to hi m and empowered by hi m in this
behalf1[or an officer of such society as may be notified by the State Government, who is
empowered by the Registrar in this behalf] may, subject to such rules as may be made by
the State Government, but without prejudice, to any other mode of recovery provided by
or under this Act, recover--
(a) any amount due under a decree or order of a Civil Court obtained by a society;
(b) any amount due under a decision, award or order of the Registrar,2[Co-operative
Court] or Liquidator or3[Co-operative Appellate Court];
(c) any sum awarded by way of costs under this Act,
(d) any sum ordered to be paid under this Act as a contribution to the assets of the
Society;
4[(e) any amount due under a certificate granted by the Registrar under sub section ( 1) or
( 2) of section 101 or under sub -section ( 1) of section 137:]
together with interest, if any, due on such amount or sum and the costs of
process 5[according to the scales of fees laid down by the Registrar, from time to time,] by
the attachment and sale or by sale without attachment of the property of the person
against whom such decree, decision, award or order has been obtained or passed.
( 2) The Registrar or the officer empowered by hi m shall be deemed, when exercising
the powers under the foregoing sub -section, or when passing any orders on any
application made to hi m for such recovery, to be Civil court for the purposes of6[article
136 in the Schedule to the Limitation Act, 1963.].
Footnote:
1 . These words were inserted by Mah. 63 of 1981, s. 2(a).
2. These words were substituted for the word "arbitrator" by Mah. 3 of 1974, s. 43.
3. These words were substituted for the word 'Tribunal", by Mah. 3 of 1974.
4. Clause (e) was inserted by Mah. 33 of 1963, s. 31.
5. These words were inserted by Mah. 63 of 1981, s. 2(b).
6. These words and figures were substituted for the words and figures "article 182 in the
first schedule to the Limitation Act, 1908, by Mah. 20 of 1986, s, 65.
Section 157 - Power to exempt societies from provisions of Act
The State Government may, by general or special order,1[* * * * * * *] exempt any
society or class of societies from any of the provisions of this Act,2[or of the rules made
there under,] or may direct that such provisions shall apply to such society or class of
societies with such modifications not affecting the sub stance thereof as may be specified
in the order:
Provided that, no order to the prejudice of any society shall be passed, without an
opportunity being given to such society to represent its case.
Footnote:
1 . The words "to be published in the Official Gazette" were deleted by Mah. 27 of 1969,
s. 22(a).
2 . These words were Inserted by Mah. 27 of 1969, s. 22(b).
Section 158 - Delegation of power of Registrar to certain authorities and officer
158. Delegation of power of Registrar to 1 [certain authorities and officer]
The State Government may, by notification in the official Gazette, and subject to such
conditions (if any) as it may think fit to impose, delegate all or any of the powers of the
Registrar under this Act to any federal authority or to an officer thereof 2 [or to any other
authority] 3 [or to any officer of the Zilla Parishad constituted under the Maharashtra Zilla
Parishads and Panchayat Samitis Act, 1961 and such 4 [authorities and] officer of the Zilla
Parishad shall work under the general guidance, superintendence and control of the
Registrar] specified in the notification.
Footnote:
1. These words were substituted for the words "federal authorities" by Mah. 20 of 1986, s.
66(c).
2. These words were inserted by Mah. 20 of 1986, s. 66(a).
3. This portion was inserted by Mah. 5 of 1962, s. 286, Tenth Sch.
4. These words were inserted by Mah. 20 of 1986, s. 66(b).
Section 159 - Branches, etc. of societies outside the State
(1) No society shall open a branch or a place of business outside the State of
Maharashtra, and no co-operative society registered under any law in any other State
shall open a branch or a place of business in the State of Maharashtra, without the
permission of the Registrar.
(2) Every co-operative society registered under any law in any other State, and permitted
to open a branch or a place of business in the Maharashtra State under the foregoing subsection,
or which has a branch or a place of business in the Maharashtra State at the
commencement of this Act, shall, within three months from the opening of such branch
or place of business or from the commencement of this Act, as the case may be, file with
the Registrar a certified copy of the bye-laws and amendments and, if these are not
written in English language, a certified translation thereof in English or Hindi, and shall
submit to the Registrar such returns and information as are submitted by similar societies
registered under this Act in addition to those which may be submitted to the Registrar of
the State where such society is registered.
Section 160 - Handing over records and property to new Chairman on election
(1) On the election of a new committee and its Chairman, the retiring Chairman, in whose
place the new Chairman is elected, shall hand over charge of the office of the committee
and all papers and property, if any of the society in possession of the committee or any
officer thereof, to the new Chairman of the committee.
(2) If the retiring Chairman fails or refuses to hand over charge, or to hand over the
papers and property of the society as aforesaid, the Registrar, or any person empowered
by him in this behalf, may by order in writing direct him to forthwith hand over such
charge and property.
(3) If the retiring Chairman to whom a direction has been issued as aforesaid does not
comply with such direction, he shall on conviction be punished with simple
imprisonment which may extend to one month or with fine which may extend to five
hundred rupees or with both; and the Registrar may, on the retiring Chairman's failure to
comply with such direction, take order for seizing the records and property and handing it
over to the new Chairman, in the manner provided in section 80.
Section 160A - Members of State Legislature and certain local authorities not to be
remunerated while holding certain offices in societies
1[ 160A. Members of State Legislature and certain local authorities not to be
remunerated while holding certain offices in societies
Notwithstanding anything contained in this Act or the rules or by laws made there under,
a me mber of the State Legislature or of a committee under the Hyderabad District
Municipalities Act, 1956, or a me mber of a Zilla Parishad or Panchayat Samiti under the
Maharashtra Zilla Parishads and Panchayat Samitis Act, 1962, while holding the office of
Chairman or members of the committee of a society to which appointment is made by
the State Government, or the office of liquidator or the office of nominee of the Registrar
whether appointed individually or to a board of nominees, shall not be entitled to receive
any remuneration other than travelling allowance, the daily allowance or such other
allowance which is paid to the holder of any such office for the purpose of meeting the
personal expenditure incurred in attending the meeting of the committee or body, or in
performing any other functions as the holder of such office.]
Footnote:
1 . Section 160 A was inserted by Mah. 23 of 1968, s. 6.
Section 160B - Members of committees not entitled to travelling allowance, daily
allowance, etc. at a rate higher than the maximum prescribed
1[ 160B. Members of committees not entitled to travelling allowance, daily
allowance, etc. a t a rate higher than the maximum prescribed
Subject to the provisions of section 160 A, no member of the committee of any society
shall be entitled to receive from the society the travelling allowance, the daily allowance
or such other allowances or fees which are paid to the members for attending meetings
of its committee, or for performing any other functions as such members, at a rate higher
than the maximum rate prescribed in this behalf and different maximum rates may be
prescribed for different societies or class of societies or for different purposes.]
Footnote:
1 . Section 160B was inserted by Mah. 27 of 1969, s. 23.
Section 161 - Registrar and other officers to be public servants
1[ 161. Registrar and other officers to be public servants
The Registrar, a person exercising the powers of the Registrar, an officer as defined in
clause ( 20) of section 2, or a person appointed as an Official Assignee under sub -section
( 2) of section 21 A, or as an administrator under section 77 A or 78, or a person
authorized to seize books records or funds of a society under sub -section ( 3) of section
80, or to audit the accounts of a society under section 81 or to hold an inquiry under
section 83, or to make an inspection under section 84, or 89 A or to make an order under
section 88 or a person appointed as a member constituting a Co-operative Court under
section 91 A or the Cooperative Appellate Court under section 149 or a Liquidator under
section 103, sh all be deemed to be public servants within the meaning of section 21 of
the Indian Penal Code.]
Footnote:
1. Section 161 was substituted for the original by Mah. 20 of 1986, s. 67.
Section 162 - Indemnity for acts done in good faith
No suit, prosecution or other legal proceeding shall lie against the Registrar or any person
subordinate to him or acting on his authority, in respect of anything in good faith done, or
purported to be done by him by or under this Act.
Section 163 - Bar of jurisdiction of Courts
(1) Save as expressly provided in this Act, no Civil or Revenue Court shall have any
jurisdiction in respect of--
(a) the registration of a society or its by-laws, or the amendments of its by-laws, or the
dissolution of the committee of a society, or the management of the society on dissolution
thereof; or
(b)any dispute required to be referred to 1 [the Co-operative Court,] for decision;
(c) any matter concerned with the winding up and dissolution of a society.
(2) While a society is being wound up, no suit or other legal proceeding relating to the
business of such society shall be proceeded with or instituted against the society or any
member thereof, or any matter touching the affairs of the society, except by leave of the
Registrar, and subject to such terms as he may impose.
(3) All orders, decisions or awards passed in accordance with this Act or the
Rules shall, subject to the provisions for appeal or revision in this Act be final; and no
such order, decision or award shall be liable to be challenged, set aside modified, revised or
declared void in any Court upon the merits or upon any other ground whatsoever. 2 [* * *]
Footnote:
1. These words were substituted for the words "the Registrar, or the Co-operative Court"
by Mah. 18 of 1982, s. 15.
2. The words "except for want of jurisdiction" were deleted by Mah. 27 of 1969, s. 25.
Section 164 - Notice necessary in suits
No suit shall be instituted against a society, or any of its officers, in respect of any act
touching the business of the society, until the expiration of two 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 the relief which
he claims, and the plaint shall contain a statement that such notice has been so delivered
or left.
Section 165 - Rules
(1) The State Government may for the whole or any part of the State and for any society
or class of societies, make rules for the conduct and regulation of the business of such
society or class of societies, and for carrying out the purpose of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such
rules may--
1 [(i) subject to the provisions of section 3, prescribe the designation of officers who shall
exercise powers vested in the Registrar;]
(ii) prescribe the forms to be used and the conditions to be complied with it, the making
of applications for the registration of a society under section 8 and the procedure in the
matter of such application;
(iii) prescribe the matter in respect of which a society may make, or the 2 [Cooperative
court] may direct a society to make, by-laws and the conditions to be followed in making,
altering and abrogating by-laws and the conditions to be satisfied prior to such making,
alteration or abrogation;
(iv) prescribe the procedure to be followed and conditions to be observed for change of
name or liability, amalgamation, transfer, division, conversion, or reconstruction of
society;
(v) prescribe the form of and procedure for an application under section 19 and the
procedure for reconstruction of a society under that section;
3 [(v-a) prescribe the conditions subject to which the Official Assignee shall realise the
assets and liquidate the liabilities, under section 21A(3);
(v-b) prescribe the manner of giving public notice and the remuneration and allowances
to be paid to Official Assignee, under sections 21A(1) and 21-A(4);
(v-c) prescribe the form of application, under section 23 (1A);]
4 [(v-d) prescribe the manner for entering into collaboration by any society or societies
with any Government undertaking or any undertaking approved by Government for
carrying on any business;]
(vi) prescribe the conditions to be complied with by a person applying for admission or
admitted as a member and provide for the election and admission of members and the
payment to be made and the interests to be acquired before the exercise of the right of
membership;
(vii) prescribe in the case of a federal society or class of federal societies the proportion
of individual members to society members in such society or class of societies and the
proportion of individual members to society members in the committee of such society or
class of societies;
(viii) subject to the provisions of section 28, prescribe the maximum number of shares or
portion of the capital of a society which may be held by a member;
(ix) prescribe the procedure for the admission of joint members, members of a joint
Hindu undivided family, and minors and persons of unsound mind inheriting the share or
interest of deceased members and provide for their rights and liabilities;
(x) provide for the withdrawal, removal or expulsion of members and for the payments to
them and for the liabilities of past members and the estate of deceased members;
(xi) prescribe the conditions and procedures for the transfer of share or interest;
(xii) provide for the nomination of a person to whom the share or the interest of a
deceased member may be paid or transferred;
(xiii) provide for ascertaining the value of a share or interest of a past member or
deceased member;
(xiv) prescribe the payments to be made and the conditions to be complied with by
members applying for loans, the period for which loans may be made, and the amount
which may be lent to an individual member;
(xv) provide for the inspection of documents in the Registrar's office and the levy of fee
for granting certified copies of the same;
(xvi) provide for the procedure for registering the address of a society and the change of
its address;
(xvii) provide for the formation and maintenance of a register of members, and where the
liability of members is limited by shares, of a register of shares and a list of members;
(xviii) provide for securing that the share capital of any society shall be variable in such a
way as may be necessary to secure that the share shall not appreciate in value and that
necessary capital shall be available for the society as required;
(xix) provide for the procedure to be adopted by a society with limited liability in order to
reduce its share capital;
(xx) prescribe the period for and terms upon which Government aid may be given to
societies and terms under which the State Government may subscribe to the share capital
of and guarantee the payment of the principal of and interest on debentures issued by
societies;
(xxi) regulate the manner in which funds may be raised by a society or class of societies
by means of shares or debentures or otherwise and the quantum of funds so raised;
(xxii) prescribe the limits for loans to be granted by a society or class of societies against
different class of securities or without security and the procedure for granting loans;

(xxiii) prescribe the manner of recalling a loan;
(xxiv) prescribe the limits for granting credit by a non-credit society or a class of noncredit
societies;
(xxv) prescribe the prohibitions and restrictions subject to which societies may trade or
transact business with persons who are not members;
(xxvi) prescribe the conditions on which any charge in favour of a society shall be
satisfied and the extent to which and the order in which the property to the charge shall
be used in its satisfaction;
(xxvii) provide for giving reasonable notice of the charge under section 48;
(xxviii) prescribe the procedure by which a society shall calculate and write off bad
debts;
5 [(xxix) the manner in which a society shall construct its annual financial statements and
the other purposes for which a society may appropriate its net profits, under section 65;]
(xxx) provide for the formation and maintenance of reserve fund and the objects to which
such fund may be applied and for the investment and use of any fund including reserve
fund under the control of a society;
(xxxi) prescribe the conditions under which profits may be distributed as dividend and
bonus among the members and non-members of a society;
(xxxii) prescribe the rate at which a society shall contribute towards the education fund of
the State federal society under section 68;
6 [(xxxii-a) prescribe the rate or rates at which and the manner in which the societies
(including other corporate bodies) shall contribute towards the Co-operative State Cadre
Employment Fund under section 69A;]
(xxxiii) define the co-operative purpose for which a society shall, under section 69, utilise
its fund;
(xxxiv) prescribe the mode of investment of funds of a society shall, under section 69,
utilise its fund;
(xxxv) provide for the payment of contribution to any provident fund which may be
established by a society for the benefit of officers and servants employed by it and for the
administration of such provident fund;
7 (xxxv-a) prescribe the procedure for the election to notified societies under section 73-
IC (2);
(xxxv-b) prescribe the manner of recovery of the expenses of holding elections to notified
societies by the Registrar, under section 73-ID;
(xxxv-c) prescribe the requisition form and the manner in which the motion of no confidence
can be brought under section 73-ID;
(xxxv-d) prescribe the manner to fill in the seat reserved for the employees by selection,
or by election by employees under section 73BB(1);
(xxxv-e) prescribes the body of persons for selection of persons on a panel for
appointment, under section 74(2);]
(xxxvi) prescribe the procedure and conditions for the exercise by a federal society, of the
powers conferred by this Act;
(xxxvii) provide for general meetings of the members for the procedure at such meetings
and the power to be exercised by such meetings;
(xxxviii) prescribe the conditions in which a member of a society may be disqualified
from voting;
(xxxix) 8 [provide for the removal and appointment of the committee or its members] and
other officers and for the appointment of administrator under section 78 and prescribe
procedure at meeting of the committee and or for the powers to be exercised and the
duties to be performed by the committee, administrator and other officers;
(xl) prescribe qualifications for members of the committee and employees of a society or
class of societies 9 [duties to be performed by, and several and joint liabilities therefor, of
such members] and the conditions of service subject to which person may be employed
by societies;
10 [(xl-a) prescribe the amount and nature of security to be furnished by any officers or
employees of any society or class of societies who are required to handle cash, securities
or property belonging to the society, the maximum amount of cash which may be handled
or kept at a time by any officer or employee, and the amount, in excess of which, all
payment shall be made by or on behalf of the society by means of a cheque;]
(xli) prescribe the returns to be submitted by a society to the Registrar and provide for the
person by whom and the form in which such returns shall be submitted;
(xlii) provide for the persons by whom and the from in which copies of documents and
entries in books of societies may be certified and the charges to be levied for the supply
of copies thereof;
(xliii) provide for the procedure to be adopted by the Registrar in the cases where the
taking of possession of books documents, securities, cash and other properties of a
society or of a society the affairs of which have been ordered to be wound up by the
Registrar or by a person entitled to the same is resisted or obstructed;
(xliv) provide for the procedure to be adopted for taking possession of books, documents,
securities, cash and other property of a society by a person acting under sections 81, 83
and 84 in cases where misappropriation of funds, breach of trust or fraud has been
committed, or where it is suspected or apprehended that the books, documents, securities,
cash and other properties are likely to be tampered with or destroyed or removed;
(xlv) prescribe the accounts and books to be kept by a society or class of societies;
(xlvi) prescribe the procedure for conducting an audit, the matters on which the auditor
shall submit a report, the form in which the statement of accounts shall be prepared for
his audit, the, limits within which the auditor may examine
(xlvii) prescribe the procedure for appointment of auditors under section 81;
(xlviii) prescribe the form for the rectification of defects discovered in the course of
audit, inspection or inquiry;
(xlix) prescribe the procedure for apportioning the cost of inquiry and inspection and for
assessing damages against delinquent promoters under section 88 and for recovery of cost
and damages;
(l) prescribe the procedure for apportioning the cost of inquiry and inspection and for
assessing damages against delinquent promoters under section 88 and for recovery of cost
and damages;
(li) prescribe the manner in which appointment shall be made and control exercised by,
and the number of persons comprising, and functions to be performed by, the authority
constituted under section 90, the manner of election and nomination of such persons, the
fees to be paid to such authority and the manner of such payment and the procedure for
and the method of calculating any cost, charges or expenses required to be levied under
this Act or the rules;
11 [(lii) prescribe the qualifications of the members constituting the Co-operative Courts,
provide for the terms and conditions of their appointment, prescribe the procedure to be
followed in proceedings before 12 [the Co-operative Courts]; 13 [provide for fixing,
levying and collecting appropriate fees and expenses for determining the disputes
(including expenses incurred by the parties to the proceedings), having regard to the
services rendered or to be rendered or any expenditure incurred or likely to be incurred
for the machinery set up therefor, provide for delegation of the power of fixing the scale
of any such fees and expenses to the Registrar, (and all such fees and expenses being
applicable to any disputes and other proceedings which may be pending immediately
before commencement of Maharashtra Co-operative Societies (Third Amendment) Act,
1973, or which may be referred to or instituted thereafter), provide for the mode of
payment of these fees and expenses whether in the form of court-fee stamps, in cash or in
any other manner; and provide, for enforcing the decisions, awards or orders in such
proceedings);]
(liii) prescribe the form in which a dispute shall be referred to the 14 [Co-operative
Court];
(liv) provide for the issue and service of processes and for providing of service thereof;
(lv) provide for the investigation of claims and objections that may be preferred against
any attachment effected 15 [under section 95];
(lvi) prescribe the procedure for and the method of recovery of any sums due under this
Act or the rules;
(lvii) prescribe the procedure to be followed for the custody of property attached under
section 95;
(lviii) prescribe the procedure to be followed in the execution of awards;
(lix) prescribe the manner in which any properly shall be delivered to, and the terms and
conditions subject to which such property shall be held by, a society under section 100;
(lx) prescribe the procedure for attachment and sale of property for the realisation of any
security given by a person in the course of execution proceedings;
(lxi) prescribe the procedure and conditions for the exercise of the powers conferred
under section 105 and the procedure to be followed by a Liquidator and provide for the
disposal of surplus assets;
(lxii) prescribe the matters in which an appeal shall lie from the order of Liquidator
appointed under section 103;
(lxiii) prescribe the procedure and conditions for the issue, redemption, re-issue, transfer,
replacement, or conversion of debentures issued by a society to which Chapter XI is
applicable;
(lxiv) prescribe the maximum amount of principal, rate of interest and other conditions
for the guarantee of debentures issued by a society to which Chapter XI is applicable;
(lxv) prescribe the qualifications and methods of appointment of an officer to effect sale
under section 133 and the powers and functions which such an officer may exercise;
(lxvi) prescribe for the appointment of a receiver of the produce and income of the
mortgage property for sale under section 133, the conditions in which he may be
appointed or removed, the powers and functions which he may exercise and the expenses
of management and remuneration which he may receive;
(lxvii) prescribe the circumstances in which action may be taken by 16 [an Agriculture
and Rural Development Bank] against a mortgagor under section 133(2);
(lxviii) prescribe, in case of sale of immovable property under Chapter XI--
(a) the procedure for proclamation and conduct of the sale and the conditions on which an
attempt of sale may be abandoned;
(b) the method of calculating the expenses incidental to the sale or attempted sale;
(c) the procedure for the receipt of deposit and disposal of the proceeds of sale;
(d) the procedure for a resale if an attempted sale is abandoned or the purchase money is
not deposited within the prescribed time and the penalty to be levied against the
purchaser who fails so to deposit the purchase money;
(e) the form and method of disposal of money by17 [an Agriculture and Rural
Development Bank] under section 135;
(f) the form of sale certificate under section 136;
(g) the procedure for the delivery by the Court of the property purchased to the purchaser
under section 136;
(h) the form of the notice referred to in section 143; and
(f) the fee payable or the service of such notices and the manner of serving such notices
on, and of the transmitting landlords' fee to, the landlord named in such notices;
(lxix) prescribe the time within which and the procedure according to which property
purchased by 18 [an Agriculture and Rural Development Bank] at a sale of immovable
property under Chapter XI shall be disposed of by the bank;
(lxx) prescribe the procedure to be followed in presenting and disposing of appeals;
19 [(lxxi) prescribe the qualifications and the period of office of members of the Cooperative
Appellate Court;]
(lxxii) prescribe in the case of appeals lying to the State Government the authority to
which power of hearing appeals may be delegated;
(lxxiii) prescribe the method of communicating or publishing any order, decision or
award required to be communicated or published under this Act or the rules;
(lxxiv) provide that the contravention of any of the rules shall be an offence under the
Act;
(lxxv) provide for all other matters expressly required or allowed by this Act, to be
prescribed by rules.
(3) The power to make rules conferred by is subject to the condition of the rules being
made after previous publication.
(4) All rules made under this section shall be laid for not less than thirty days before each
House of the State Legislature as soon as possible after they are made, and shall be
subject to such modification as the Legislature may make during the session in which
they are so laid, or the session immediately following.
Footnote:
1. Clause (i) was substituted by Mah. 33 of 1963, s. 32(a).
2. These words were substituted for the words "Registrar" by Mah. 22 of 1991, s. 4.
3. These clauses were inserted by Mah. 20 of 1986, s. 68(a).
4. Clause (v-d) was inserted by Mah. 10 of 1988, s. 32.
5. Clause (xxix) was substituted for the original by Mah. 20 of 1986, 68(b).
6. Clause (xxxii-a) was inserted by Mah. 30 of 1978, s.4.
7. These clause were inserted by Mah. 20 of 1986, s. 68(c).
8. These words were substituted for the words "provide for the appointment, suspension
and removal of the members of the Committee" by Man. 33 of 1963, s. 32(b).
9. These words were Inserted by Mah. 33 of 1963, s. 32(c).
10. Clause (xl-a) was Inserted by Mah. 27 of 1969, s. 26.
11. Clause (iii) was substituted by Mah. 3 of 1994, s.46(a).
12. These words were substituted for the words the Registrar and the co-operative
Courts" by Mah. 18 of 1982, s. 16.
13. This portion was deemed to have been substituted for the portion beginning with the
words "and provided for" and ending with the words "such proceedings" by Mah. 58 of
1977, s. 2 with effect from 21st February, 1974. Section 3 of Mah. 58 of 1977 reads as
follows:--
3. Validation of charging and manner of charging of fees and expenses for determining
disputes, according to the scales laid down in existing rule 86 and orders made
thereunder.
Notwithstanding anything contained in the principal Act or the rules or orders made
thereunder or the orders made under these rules, or any other law for the time being in
force, or in any judgement, decision, decree, award or order of any Court or Tribunal,
rule 86 of the Maharashtra Co-operative Societies Rules, 1961, made or purported to
have been made by the State Government under clause (iii) of sub-section (2) of section
165 of the principal Act with effect from the 1st March, 1975 and the orders made or
purported to have been made form time to time by the Registrar under the said rule shall
be deemed to have been duly and validly made under the authority of the said section as
amended by this Act and shall continue to be in force in the same form, until duly
repealed or amended by the competent authority. And, accordingly, any action taken by
the Registrar in laying down the fees and expenses to be paid to him or the Co-operative
Court for determining the disputes and other proceedings and for making them applicable
also to the disputes and other proceedings pending immediately before the
commencement of the Maharashtra Co-operative Societies (Third Amendment) Act,
1973, and transferred and collected hereafter in the form of court-fees, in cash or in any
other manner, shall be deemed to be valid. The fixing, levying and collection of these
fees and expenses in any disputes or other proceedings shall not be called in question
before any Court or Tribunal merely on the ground that there is no authority for fixing or
levying such fees or expenses or that such fees or expenses were not or are not chargeable
in any pending proceedings or that such fees cannot be levied or collected in the form of
court fee stamps or on such other ground."
14. These words were substituted for the words "Registrar" by Mah. XXII of 1991, s. 3,
The Second Schedule.
15. These words and figures were substituted for the words "by the Registrar" by Mah. 33
of 1963, s. 32(d).
16. These words substituted for the words "a land development bank" by Mah. 5 of 1990,
s. 18(a).
17. These words were substituted for the words "a land development bank" by Mah. 5 of
1990, s. 18(b).
18. These words were substituted for the words "a land development bank" by Mah. 5 of
1990, s. 18(c).
19. Clause (lxxi) was substituted by Mah. 3 of 1974, s. 46(b).
Section 166 - Repeal, saving and construction
(1) The Bombay Co-operative Societies Act, 1925, in its application to the State of
Maharashtra is hereby repealed:
Provided that, the repeal shall not affect the previous operation of the Act so repealed and
anything done or action taken or deemed to have been done or taken (including any;
appointment or delegation made, application or other document filed, certificate of
registration granted, agreements executed, notification, order, direction or notice issued,
regulation, form or by-law framed, rule made or deemed to be made or proceeding
instituted before any Registrar, arbitrator, liquidator or tribunal or other officer, authority
or person) by or under the provisions of that Act, shall, in so far as it is not inconsistent
with the provisions of this Act, be deemed to have been done or taken under the
corresponding provisions of this Act, and shall continue in force unless and until
superseded by anything done or any action taken under the corresponding provisions of
this Act, and shall continue in force unless and until superseded by anything done or any
action taken under this Act.
(2) Accordingly, all societies registered or deemed to be registered under the Act repealed
the registration of which is in force at the commencement of this Act, shall on such
commencement be deemed to be registered under this Act; and all proceedings pending
immediately before such commencement before any Registrar, arbitrator, liquidator or
tribunal or other officer, authority or person under the provisions of the repealed Act shall
stand transferred, where necessary, to the Registrar, arbitrator, liquidator or tribunal or
other corresponding officer, authority or person under this Act, and if no such officer,
authority or person exists or if there be a doubt as to the corresponding officer, authority
or person, to such officer, authority or person as the State Government may designate and
shall be continued and disposed of before such officer, authority or person in accordance
with the provisions of this Act.
(3) Any reference to the Act repealed or to any provisions thereof or to any officer,
authority or person entrusted with any functions there under, in any law for the time being
in force or in any instrument or document, shall be construed, where necessary, as a
reference to this Act or its relevant provisions or the corresponding officer, authority or
person functioning under this Act and the corresponding officer, authority or person as
the case may be, shall have and exercise the functions under the repealed Act or under the
instrument or document.
Section 167 - Companies Act not to apply
For the removal of doubt, it is hereby declared that the provisions of the Companies Act,
1956, shall not apply to societies registered or deemed to be registered, under this Act.