reg. no. gr/rnp/goa/32 rni no....

797

Panaji, 19th August, 2010 (Sravana 28, 1932) SERIES I No. 21

Reg. No. GR/RNP/GOA/32 RNI No. GOAENG/2002/6410

PUBLISHED BY AUTHORITY

Goa Legislature Secretariat___

LA/LEGN/2010/1799

The following Report which was presented in the Legislative Assembly of the State of Goaon 6th August, 2010 is hereby published for general information in pursuance ofRule-231 of the Rules of Procedure and Conduct of Business of the Goa Legislative Assembly.

__________

FIFTH LEGISLATIVE ASSEMBLY OF THE STATE OF GOA

SECOND REPORT

OF

SELECT COMMITTEE ON THE GOA CO-OPERATIVE SOCIETIES ACT, 2001

Presented to the House on 6th August, 2010

GOA LEGISLATURE SECRETARIATASSEMBLY HALLPORVORIM-GOA

NOTE

There are two Extraordinary issues to the Official Gazette, Series I No. 20 dated 12-8-2010, as follows:—

(1) Extraordinary dated 13-8-2010 from pages 793 to 794 regarding modification of the timings of the GOA SANDSONLINE Scheme– Not. No. JS(BUD)/32/2010 from Department of Finance ((Budget Division).

(2) Extraordinary (No. 2) dated 16-8-2010 from pages 795 to 796 regarding Amendments to entries of Schedule I –Not. No. 30/1/2006-Fin(R&C)(13) from Department of Finance (Revenue & Control Division).

INDEX

Report/Notification

LA/LEGN/2010/1799

Not.- CP/H.S.O 138/2010

Not.- 1/25/86-PER(P. F. I.)

Subject

Second Report – Select Committee on the GoaCo-operative Societies Act, 2010.

Alteration of the Port limits – Tiracol and Talpona.

R. R. – Commercial Tax.

Pages

797

873

874

Department

1. Goa Legislature Secretariat

2. Inland & WaterwaysCaptain of PortsCaptain & ex officioJoint Secretary

3. PersonnelJoint Secretary

OFFICIAL GAZETTE — GOVT. OF GOASERIES I No. 21 19TH AUGUST, 2010

798

CONTENTS

COMPOSITION OF THE COMMITTEE …...............................................................………… 798INTRODUCTION ………………………….….................................................................……..… 798REPORT ……………………………………....................................................................……… 799ANNEXURE – I ……………………….................................................................…………..… 799ANNEXURE – II ……………………………...............................................................……….… 867ANNEXURE – III ……………………………..................................................................…....… 867ANNEXURE – IV ……………………….................................................................………….…. 871ANNEXURE – V ………………………..................................................................………….…. 872ANNEXURE – VI ………………………................................................................…………...… 872

ANNEXURE – VII ……………………….................................................................……….….... 873

COMPOSITION

COMPOSITION OF THE SELECT COMMITTEE ON THEGOA CO-OPERATIVE SOCIETIES ACT, 2001

CHAIRMAN

Shri Ravi Naik Hon’ble Minister for Co-operation

MEMBERS

Shri Nilkanth HalarnkarShri Pandurang MadkaikarShri Francis D’SouzaShri Laxmikant ParsekarShri Deepak DhavalikarShri Aleixo Reginaldo Lourenco

LEGISLATURE SECRETARIAT

Shri J. N. Braganza SecretaryShri N. B. Subhedar Joint SecretaryShri H. F. Noronha Section Officer

INTRODUCTION

I, the Chairman of the Select Committee on The Goa Co-operative Societies (Amendment)Bill, 2008 (Bill No. 37 of 2008), having been authorized by the Committee to present thisSecond Report, do present the Report to the Goa Legislative Assembly.

2. The Committee elicited suggestions from the public through advertisement published inthe local dailies. Suggestions were also invited from the Registrar of Co-operative Societies.

3. The suggestions were forwarded to the Department concerned and to Law Departmentand their comments were elicited.

4. The Committee would like to place on records its deep appreciation of hard done by theSecretary and staff of the Legislature and the co-operation rendered to it by the Registrar ofthe Co-operative Societies and the Department of Law for ably assisting the Committee in thedischarge of its work.

Porvorim-Goa SHRI RAVI NAIK

19 July, 2010 Chairman

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 21 19TH AUGUST, 2010

799

SECOND REPORT

The Goa Co-operative Societies(Amendment) Bill, 2008 was introduced on25th August, 2008. It was taken up forconsideration on 27th August, 2008 andreferred to a Select Committee of the House.The Composition of the Select Committee hasbeen specified in the motion for reference ofthe Bill to the Select Committee.

2. The Committee was directed to study allthe amendments proposed to be carried outto the Goa Co-operative Societies Act, 2001(Goa Act 36 of 2001) and was given a mandateto present its Report by the 29th of August,2008 to the House.

3. The Select Committee presented itsreport on the Goa Co-operative Societies(Amendment) Bill, 2008 on 28th January,2009.

4. The Goa Co-operative Societies(Amendment) Bill, 2008 Bill No. 37 of 2008 asreported by the Select Committee wasreconsidered and passed on 5-02-2009. Itreceived assent of the Governor on 12-03-2009as Act No. 3 of 2009.

5. The Committee than decided tothoroughly examine the working of the GoaCo-operative Societies Act, 2001 (Act No. 36of 2001) in further sitting and present the 2ndReport. (Para 8 of 1st Report 2009).

6. The Chairman moved on 22nd July, 2009,a motion in the House for extension of timefor presentation of report (The motion forextension of time is at Annexure–II).

7. The Committee invited suggestions fromthe public and from the Registrar of Co-operative Societies. The Committee wentthrough the suggestions at its sittings heldon 14th September, 2009, 16th October, 2009,and 13th May, 2010 and prepared the draftmodel Co-operative Societies Act. (Thesuggestions can be seen at Annexure III andthe minutes of the meetings may be seen atAnnexure-IV, V and VI).

8. At its meeting held on 9th June, 2010the Committee adopted the Draft Model GoaCo-operative Societies Act and took thedecision to present the same to the House atits ensuing session (The minutes of themeetings may be seen at Annexure-VII).

The Draft Model Goa Co-operative SocietiesAct is at Annexure–I. The parts highlightedand italics are the changes suggested to theGoa Co-operative Societies Act, 2001.

The Committee recommends that a Bill onthe Draft Model Act be introduced in theHouse at the earliest.

ANNEXURE - I

GOVERNMENT OF GOA

THE GOA CO-OPERATIVE SOCIETIESACT, 2009

CONTENTS

Preamble

CHAPTER – I

Preliminary

Sections

1. Short title, extent and commencement.

2. Definitions.

3. Co-operative principles and bye-laws.

CHAPTER – II

Registration

4. Registrar and his subordinates.

5. Societies which may be registered.

6. Conditions of registration.

7. Application for registration.

8. Power of the Registrar to decide

certain questions.

9. Restriction on holding of shares.

10. Registration.

11. Registration certificate.

12. Classification of societies.


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Sections

13. Bye-laws of co-operative societies.

14. Amendment of bye-laws of societies.

15. A power to direct amendment of

bye-laws.

16. Change of name.

17. When amendments of bye-laws comes

into force.

18. Change of liability.

19. Amalgamation, transfer of assets and

liabilities and division of co-operative

societies.

20. Power to direct amalgamation, division

and re-organization in public interest,

etc.

21. Re-construction of Societies.

22. Partnership of Societies and subsidiary.

23. Collaboration by societies.

24. Cancellation of registration.

25. De-registration of Societies.

25A.Liability of Coop. Bank to the deposit

insurance and credit guarantee

corporation.

CHAPTER – III

Members of Co-operative Societies and theirRights and Duties

26. Person who may become member.

27. Open membership.

28. Joint member.

29. Nominal member.

30. Cessation of membership.

31. Expulsion of members.

32. Rights of membership.

33. Voting power of members.

34. Manner of exercising vote.

35. Restriction on transfer of shares of

interest.

36. Transmission of interest on death of

member.

37. Liability of past member and estate of

deceased member.

38. Rights of members to see books, etc.

39. Insolvency of members.

Sections

CHAPTER – IV

Privileges of Co-operative Societies

40. Co-operative society to be body

corporate.

41. First charge of co-operative society

on certain movable assets of member

for the amount due from him.

42. Charge on immovable property of

members borrowing loan from

certain co-operatives.

43. Charge and set off in respect of

share or contribution or interest of

member.

44. Share or contribution or interest not

liable to attachment.

45. Register of members.

46. Admissibility of copy of entry as

evidence.

47. Exemption from certain taxes, fees

and duties.

48. Copy of Bye-laws etc. to be open to

inspection.

49. Deduction from salary to meet

co-operative society’s claim in certain

cases.

CHAPTER – V

State aid to Societies

50. Government investment in societies.

51. Liability to be limited in respect of

Government share.

52. Other forms of State aid to societies.

53. Provisions of this Chapter to override

other laws.

CHAPTER – VI

Properties and funds of Co-operative Societies

54. Funds other than net profits/surplusnot to be divided among members.

55. Contribution to charitable purpose.56. Contribution to Co-operative Education

Fund.

57. Reserve and other funds.

58. Investment of funds.



801

Sections

59. Restrictions on loans.

60. Restrictions on borrowings.

61. Restrictions of other transactions

with non–members.

62. Funds not to be utilized for certain

proceedings filed or taken by or against

officers in personal capacity.

63. Employees Provident Fund.

64. Writing off of bad debts and losses.

CHAPTER – VII

Management of Co-operative Societies

65. Final Authority in a co-operative

society.

66. Annual general body meeting.

67. Special general meeting.

68. Filing of returns.

69. Board of Directors.

70. Election to Board of Directors of

societies.

71. Vacancies on the Board of Directors.

72. Appointment of members of the

board, new board or administrator

where there is failure to elect or

where committee does not enter

upon office.

73. Disqualification for being director/

/delegate of representative general

body.

74. Disqualification of all directors of the

board.

75. Power and functions of the Board of

Directors.

76. Power of removal of Board of Directors

or its Officers.

77. Motion of no confidence against the

officers of societies.

78. Removal of Board of Directors or

member thereof.

79. Meetings and minutes.

80. Handing over records and property

to new Chairman on election.

81. Power to seize the records, etc.

82. Acts of co-operative society not

to be invalidated by certain defects.

Sections

83. Directions by the Registrar for

successful conduct of business.

84. Chief Executive.

85. Powers and functions of Chief

Executives.

86. Qualification of Chief Executive Officer

or any other Officers.

87. Government power to give directions

in the interest of Co-operative Movement.

CHAPTER – VIII

Accounts, Audit, Inspection & Inquiry and Surcharge

88. Accounts and records.

89. Audit.

90. Powers and duties of the auditor.

91. Rectification of defect in accounts.

92. Inquiry or inspection of societies

93. Cost of re-audit, inspection, inquiry.

94. Recovery of cost.

95. Registrar to bring defect disclosed in

re-audit, inspection or inquiry.

96. Power of the Registrar to assess

damages against delinquent Promoters etc.

97. Power to summon and examine

documents and persons etc.

CHAPTER – IX

Disputes and Arbitration

98. Disputes.

99. Powers of an apex co-operative bank to

proceed against members of a society

for recovery of money’s due to it

from such society.

100. Limitation.

101. Settlement of disputes.

102. Procedure for settlement of disputes and

power of Registrar, his nominee or Board

of Nominees.

103. Attachment before award and

interlocutory orders.

104. Decision of Registrar or his nominee or

board of nominees.

105. Appeal against decision of Registrar

or his nominee or board of nominee.

106. Money how recovered.


802

Sections

107. Private transfer of property made after

issue of certificate void against society.

108. Transfer of property which cannot be

sold.

109. Recovery of any sum advanced by

resource society.

110. Execution of awards and Registrar’s

powers to recover certain sums by

attachment and sale of property.

CHAPTER – X

Special Provisions for Co-operative HousingSocieties

111. Application.

112. Definitions.

113. Limit on membership.

114. Allotment of plots dwelling units

and commercial units.

115. Rights of members in a Co-ownership

housing society.

116. Provisions for nominations.

117. Restriction on letting out.

118. Restriction on transfer of shares or

interest of a member.

119. Permission for transfer of occupancy

right not to be ordinarily refused and

provision for appeal.

120. Creation, maintenance and utilization

of building maintenance fund.

121. Miscellaneous.

122. Unit of assessment.

123. Certain portion of land acquired by

the Government for housing to beutilized on co-operative principles.

CHAPTER – XI

Winding up of Co-operative Societies (Liquidation)

124. Dissolution of co-operative society by

members.

125. Dissolution of co-operative society by

Registrar.

126. Winding up, etc. of co-operative

banks at a direction of the Reserve

Bank.

127. Appointment of liquidator.

128. Duties of liquidator.

Sections

129. Powers of liquidator.

130. Disposal of surplus assets of liquidated

co-operative societies.

131. Final accounts and termination of

liquidation proceedings.

CHAPTER – XII

Appeals, Review and Revisions

132. Appeals.133. Extension of period of limitation by

appellate authority in certain cases.134. Review.135. Revision.136. Interlocutory orders.137. Goa Co-operative Tribunal.138. Co-operative Tribunal to have powers

of civil court.

CHAPTER – XIII

Offences and Penalties

139. Offences.140. Penalties.141. Authority to take cognizance.142. Contempt of Registrar or designated

officer and of Co-operative Tribunal.143. Presumption as to statements.144. Notice necessary in suits.145. Indemnity.146. Bar of jurisdiction of civil or revenue

courts.

CHAPTER – XIV

Miscellaneous

147. Power to delegate.148. Recovery of sums due to the

Government.149. Power to exempt societies from

provisions of Act.150. Branches, etc. of societies outside the

State.151. Registrar and other officers to be

public servants.152. Rules.153. Service rules for employees of

co-operative societies.154. Repeal and savings.155. Companies Act not to apply.156. Act to override other laws.

157. Removal of difficulties.



803

The Goa Co-operative Societies Act(As Amended upto)

(Goa Act of )

An Act to consolidate and amend the lawsrelating to co-operative societies, to facilitatethe voluntary formation and democraticfunctioning of co-operatives as people’sinstitutions based on self help and mutual aidto enable them to promote their economicand social betterment and to provide forregulation, management, functional autonomyof such societies and for matters connectedtherewith or incidental thereto in the State ofGoa.

Be it enacted by Legislative Assembly ofthe Goa State in the ...................... year of theRepublic of India as follows:—

CHAPTER - I

Preliminary

1. Short title, extent and commencement.—(1) This Act may be called the GoaCo-operative Societies Act.

(2) It extends to the whole of the State ofGoa.

(3) It shall come into force on such date asthe Government may, by notification in theOfficial Gazette, appoint.

2. Definitions.— In this Act, unless thecontext otherwise requires,—

(1) “Agricultural Marketing Society” meansa society,—

(a) The object of which is the marketingof agricultural produce and the supply ofimplements and other requisites foragricultural production; and

(b) Not less than three-fourth of themembers of which are agriculturists orsocieties formed by agriculturists;

(2) “Agricultural Service Co-operativeSociety” means an agricultural co-operativesociety, the primary object of which is torender assistance, financial or otherwise, tofarmers, rural artisans and agriculturallabourers;

(3) “Apex Society” means a society, thearea of operation which extends to the wholeof the State of Goa, and the main object ofwhich is to promote the principal object ofthe societies affiliated to it as members andprovide for the facilities and services to themand which has been classified as an apexsociety by the Registrar;

(4) “Arbitrator” means a person appointedunder this Act to decide disputes referred tohim by the Registrar and includes theRegistrar’s nominee or Board of Nominees;

(5) “Area of operation” means the area ofGoa State from which the membership isdrawn;

(6) “Auditor” means a person appointedby the Registrar or by a society, to audit theaccounts of the society;

(7) “Board of Directors” means thegoverning body or committee of managementof a society, by whatever name called, inwhich the management of the affairs of asociety is vested;

(8) “Bye-laws” means bye-laws prescribedunder the Rules and registered under thisAct and included registered amendments ofsuch bye-laws;

(9) “Central Bank” means a co-operativebank, the object of which includes thecreation of funds to be loaned to othersocieties but does not include the urbanco-operative bank;

(10) “Chief Executive” with whateverdesignation called, means an individual, who,subject to the superintendence, control anddirection of the Board of Directors, has been


804

entrusted by the board, with the managementof the affairs of the society;

(11) “Committee” means the committee ofmanagement or other directing body, to whichthe management of the affairs of a society isentrusted.

(12) “Co-operative Farming Society” meansa co-operative society the principal object ofwhich is to organize cultivation of land heldby it or by its members, jointly or otherwise,with a view to increasing agriculturalproduction and employment by properutilization of land, labour and other resources;

(13) “Consumers Co-operative Society”means a co-operative society the primaryobject of which is the procurement anddistribution of goods to, or the performanceof other services for its members as also othercustomers;

(14) “Co-operative Tribunal” means the GoaCo-operative Tribunal constituted undersection 137 of this Act;

(15) “Co-operative Housing Society” meansa society as defined in section 112 of thisAct;

(16) “Co-operative Bank” means a societyregistered under this Act and doing thebusiness of banking as defined in clause (b)of section 5 of the Banking Regulation Act,1949.

(17) “Co-operative Credit Society” meansa co-operative society the primary object ofwhich is to create funds for lending moneyto its members;

(18) “Co-operative Principles” means theco-operative principles specified in the section3 of this Act;

(19) “Co-operative Society” means asociety registered or deemed to be registeredunder this Act;

(20) “Co-operative Year” means a year orperiod ending on the thirty–first day of March;

(21) “Director” means a member of theBoard of Directors;

(22) “Dividend” means the amount paid,out of the profits of a society, to a member inproportion to the shares held by him;

(23) “Federal Society” means a society,—

(a) not less than five members of whichare themselves societies, and

(b) in which the voting rights are soregulated that the members which aresocieties have not less than four-fifth of thetotal number of votes in the generalmeetings of such society;

(24) “Financing Bank” means a co--operative bank the objects of which includesthe creation of funds to be lent to otherco-operative societies;

(25) “Firm” means a firm registered underthe Indian Partnership Act, 1932;

(26) “General Body” in relation to aprimary co-operative society means all themembers of that co-operative society and inrelation to federal co-operative society, meansall the delegates of the members co-operativesocieties and the individual members;

(27) “Government” means the Governmentof Goa;

(28) “Industrial Co-operative Society”means a co-operative society, the object ofwhich includes manufacturer, processing andmarketing of goods by or with the help of itsmembers and providing supplies and servicesto them;

(29) “Joint Member” means a member whoholds jointly share of a society with anotherbut whose name does not stand first in theshare certificate;

(30) “Liquidator” means a personappointed as liquidator under section 127 ofthis Act;



805

(31) “Local Authority” includes anagricultural produce Market Boardconstituted by or under any law for the timebeing in force;

(32) “Member” means a person joining inthe application for the registration of aco-operative society and a person admittedto membership after such registrationin accordance with this Act, the Rules andthe bye-laws, and includes a nominal or jointmember and the Government when itsubscribes to the share capital of aco-operative society;

(33) “Multi-State Co-operative Society”means a co-operative society which isregistered or deemed to be registered underthe Multi-State Co-operative Societies Act,1984 (Central Act 51 of 1984);

(34) “Mutually Aided Society” means asociety which does not have any sharecapital, loans or any financial assistance fromthe State or the Central Government exceptwith a Memorandum of Understanding withthe Government;

(35) “Nominal Member” means a personadmitted to membership as such afterregistration in accordance with the bye-laws;

(36) “Officer” means the President, Vice--President, Chairman, Vice-Chairman,Managing Director, Secretary, Manager,Treasurer, Liquidator, Administrator andincludes any other person empowered underthis Act, the Rules or the bye-laws, to givedirections in regard to the business of aco-operative society;

(37) “Official Assignee” means a personappointed by the Registrar to act as an OfficialAssignee under section 25 (2) of the Act;

(38) “Official Gazette” means the OfficialGazette of the Government;

(39) “Patronage Refund” means annualrefund to members in proportion to theirtransaction with the society during the year;

(40) “Prescribed” means prescribed byrules;

(41) “Primary Society” means a societywhose membership is available only toindividuals;

(42) “Processing Society” means a societythe object of which is the processing ofgoods;

(43) “Producers Society” means a society,the object of which is the production anddisposal of goods or the collective disposal ofthe labour of the members thereof;

(44) “Registrar” means a person appointed

to perform the functions of the Registrar of

Co-operative Societies under this Act and

includes any person appointed to assist the

Registrar when exercising all or any of thepowers of the Registrar;

(45) “Resource Society” means a society,the object of which is the obtaining for itsmembers of credit, goods or services requiredby them;

(46) “Rules” means a rule made under thisAct;

(47) “Section” means a section of thisAct;

(48) “State” means the State of Goa.

(49) “Society” means a Co-operativeSociety registered, or deemed to beregistered, under this Act.

(50) “Society with Limited Liability” meansa society having the liability of its memberslimited by its bye-laws;

(51) “Society with Unlimited Liability”means a society, the members of which arein the event of its being wound up, jointlyand severally liable for and in respect of itsobligations and to contribute to any deficiencyin the assets of the society.


806

(52) “State Aided Society” means a societywhich is not a mutually aided society;

(53) “Surplus” means the net excess ofincome over the expenditure;

(54) “Sub-divisional Magistrate” means an

Executive Magistrate appointed under the

Code of Criminal Procedure, 1973 (2 of 1974)

and posted by the Government to be in-charge

of the sub-division;

(55) “Working Capital” means funds at thedisposal of a society inclusive of paid–upshare capital, fund built out of profits, andmoney raised by borrowing and by othermeans.

(56) “Year” means a Co-operative year asdefined under this Act;

3. Co-operative principles and bye-laws.—Individuals or co-operatives intending to forminto a co-operative society under this Act shallframe bye-laws confirming to the followingprinciples of co-operation, namely:—

(1) Voluntary and Open Membership.— Co-

-operatives are voluntary organizations, open

to all persons capable of using their services

and willing to accept the responsibilities of

membership, without discrimination on basis

of gender, social inequality, racial, political

ideologies or religious consideration.

(2) Democratic Member Control.— Co-

-operatives are democratic organizations

controlled by their members, who actively

participate in setting their policies and

decision making. Elected representatives of

these co-operatives are responsible and

accountable to their members.

(3) Member’s Economic Participation.—

Member contribute equitably and control the

capital of their co-operative democratically.

At least a part of the surplus arising out of

the economic results would be the common

property of the co-operatives. The remaining

surplus could be utilized benefiting the

members in proportion to their share in the

co-operative.

(4) Autonomy and Independence.— Co-

-operatives are autonomous, self-help

organizations controlled by their members. If

co-operatives enter into agreement with other

organizations including Government or raise

capital from external sources, they do so on

terms that ensure their democratic control

by members and maintenance of co-operative

autonomy.

(5) Education, Training and Information.—

Co-operatives provide education and training

to their members, elected representatives and

employees so that they can contribute

effectively to the development of their co-

-operatives. They also make general public,

particularly young people and leaders aware

of the nature and benefits of co-operation.

(6) Co-operation among co-operatives.—

Co-operatives serve their members most

effectively and strengthen the co-operative

movement by working together through

available local, regional, national and

international co-operative structures.

(7) Concern for Community.— While

focusing on the needs of their members,

co-operatives work for the sustainable

development of communities through policies

accepted by their members.

CHAPTER - II

Registration of Co-operative Societies

4. Registrar and his subordinates.— (1) TheGovernment may appoint a person to be theRegistrar of Co-operative Societies for theState and may appoint one or more person toassist such Registrar with such designation,and in such local areas or throughout theState, as it may specify in that behalf andmay, by general or special order, confer on



807

any such person or persons all or any of thepowers of the Registrar under this Act. Theperson or persons so appointed to assist theRegistrar and on whom any powers of theRegistrar conferred, shall work under thegeneral guidance, superintendence andcontrol of the Registrar. They shall besubordinate to the Registrar andsubordination of such persons amongstthemselves shall be such as may bedetermined by the Government.

(2) The person appointed under sub-section(1) as the Registrar, shall not, during thecourse of his service, serve in any capacitywith any society.

5. Societies which may be registered.— (1)A Society which has its objects the promotionof the economic interest or general welfare ofits members, or of the public in accordancewith the co-operative principles or a societyestablished with the object of facilitating theoperations of any such society may beregistered under this Act:

Provided that, no society shall be registeredif it is likely to be economically unsound, orthe registration of which may have an adverseeffect on development of the Co-operativeMovement.

(2) A society shall be registered with limitedliability.

6. Conditions of Registration.— (1) No

society, other than a federal society, shall be

registered under this Act unless it consists of

atleast ten persons (each of such persons

being a member of a different family), who

are qualified to be members under this Act

and who reside or carry on business or

profession in the area of operation of the

society:

Provided that a co-operative housing society

consisting of atleast five such persons who

are residing or intend to reside in the area of

operation of the society may be registered

under this Act:

Provided further that, a lift irrigation societyconsisting of five or more such persons maybe registered under this Act.

(2) No federal society shall be registeredunless it has atleast five societies as itsmembers.

(3) Nothing in this Act shall be deemed toaffect the registration of any society madebefore the commencement of this Act.

(4) The name of the society shall not haveany reference to any caste or religiousdenomination.

(5) The word “limited” or its equivalent in

any language shall be the last word in the

name of every society which is registered or

deemed to be registered under this Act.

Explanation.— For the purposes of thissection the expression “member of a family”means wife, husband, father, mother,unmarried son and unmarried daughter.

7. Application for Registration.— (1) For thepurposes of registration, an application shallbe made to the Registrar in the formprescribed and shall be accompanied by fourcopies of the proposed bye-laws of the societyalongwith the documents prescribed by theRegistrar from time to time and suchregistration fee as may be determined bythe Registrar. Different registration fees maybe determined for different classes ofsocieties, regard being had to the serviceinvolved in processing an application forregistration.

(2) The application shall be signed,—

(a) in the case of a society other than afederal society, by atleast ten persons (eachof such persons being a member of adifferent family), who are qualified underthis Act; and

(b) in the case of a co-operative housingsociety, by atleast five such persons:


808

Provided that in case where a co--operative housing society consists of morethan five persons in accordance with thescheme of housing on the plot of landmentioned in the objects of the society, theapplication shall be signed by at least fiftyone percent of the total number of theexpected members;

(c) in the case of lift irrigation society, byatleast five such persons; and

(d) in the case of a federal society, byatleast five societies.

Explanation.— The application forRegistration of a federal society.

The person signing shall be a member ofthe Board of Directors of such society, and isauthorised by the Board by a resolution tosign on its behalf, the application forregistration of the society and its bye-laws,and a copy of such resolution is appended tothe application.

8. Power of the Registrar to decide certainquestions.— Where any question arises at thestage of registration whether for the purposeof this Act a person resides in the area ofoperation of a co-operative society or not, orwhether a co-operative society is of same typeas another co-operative society or of differenttype, the question shall be decided by theRegistrar whose decision shall be final.

9. Restrictions on Holding of Shares.— Nomember other than the Government or aco-operative society shall hold more than suchportion of the share capital of a co-operativesociety subject to a maximum of one–tenth,as may be prescribed.

10. Registration.— (1) If the Registrar issatisfied—

(a) that the application complies with theprovisions of this Act and the rules;

(b) that the objects of the proposed co--operative society are in accordance withsection 3;

(c) that the proposed bye-laws are notcontrary to the provisions of this Act andthe Rules;

(d) that in case of co-operative bank priorwritten permission of the Reserve Bank ofIndia for registration has been received bythe Registrar;

(e) that the proposed co-operative societyhas reasonable chances of success;

(f) that in case of co-operative housingsociety, the confirmation of availability ofland to the co-operative housing societyfrom the land allotting agency has beenreceived by the Registrar.

The Registrar may register the co-operativesociety and its bye-laws.

(2) When the Registrar refuses to registera co-operative society, he shall communicatethe order of refusal together with the reasons,therefore, to the applicant.

(3) The application for registration shall bedisposed off by the Registrar within a periodof ninety days from the date of receipt thereofby him:

Provided that if the Registrar is unable todispose off the application within theaforesaid period, he shall make a report tothe Government stating therein the reasonsfor his inability to do so, and the Governmentmay allow him further time not exceedingninety days to dispose off such application:

Provided further that if the application forregistration is not disposed off within theaforesaid period and the Registrar fails tocommunicate the order of refusal within thatperiod, the application shall be deemed tohave been accepted for registration and theRegistrar shall issue the registrationcertificate in accordance with the provisionsof this Act and the Rules made thereunder.

(4) An appeal against the order of refusalof registration under sub-section (2) shall be



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filed before the Co-operative Tribunal withina period of sixty days from the date of suchrefusal.

(5) The Registrar shall maintain a registerof all societies registered under this Act.

11. Registration Certificate.— Where a co--operative society is registered or deemed tobe registered under this Act, the Registrarshall issue a certificate of registration signedby him, which shall be conclusive evidencethat the co-operative society thereinmentioned is duly registered under this Act,unless it is proved that the Registration ofsociety has been cancelled.

12. Classification of Societies.— (1) TheRegistrar shall classify all societies into oneor other of the classes of societies definedin section 2 of this Act and also into suchsub-classes thereof as prescribed.

(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 sub-class thereof to another and

may, in the interest of the co-operative

movement and on 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 shallbe published by the Registrar every threeyears in such manner as the Government may,from time to time, direct.

13. Bye-laws of Co-operative Societies.— (1)Every Co-operative Society may make itsbye-laws inconsistent with the provisions ofthis Act and the Rules made thereunder.

(2) In particular and without prejudice tothe generality of the foregoing power, suchbye-laws may provide for all or any of thefollowing matters, namely:—

(a) the name, address and area of

operation of the society;

(b) the objects of the society;

(c) the services to be provided to itsmembers;

(d) the eligibility for obtainingmembership;

(e) the procedure for obtainingmembership;

(f) the conditions for continuing asmember;

(g) the procedure for withdrawal ofmembership;

(h) the transfer of membership;

(i) the procedure for expulsion frommembership;

(j) the rights and duties of the members;

(k) the nature and amount of capital ofthe society;

(l) the manner in which the maximumcapital to which a single member cansubscribe;

(m) the sources from which the fundsmay be raised by a co-operative society;

(n) the purpose for which the funds maybe applied;

(o) the manner of allocation ordisbursement of net profits of co-operativesociety;

(p) the constitution of various reserves;

(q) the manner of convening generalmeetings and quorum thereof other thanthose provided under this Act;

(r) the procedure for notice andmanner of voting in general and othermeetings;


810

(s) the procedure for amending the bye--laws;

(t) the number of elected members of theBoard of directors not exceeding fifteen;

(u) the term of office of elected membersof a Board of Directors shall not exceed fiveyears;

(v) the qualification and disqualificationfor member of Board of Directors of theSociety;

(w) the procedure for removal ofmembers of the Board of Directors and forfilling of vacancies;

(x) the manner of convening Boardmeetings, its quorum, number of suchmeetings in a year and venue of suchmeetings;

(y) the frequency of Board meetings;

(z) the powers and functions of the ChiefExecutive;

(za) the manner of imposing the penalty;

(zb) the appointment, rights and dutiesof Internal auditors and procedure forconduct of audit;

(zc) the authorisation of officers to signdocuments, operate bank accounts andto Institute and defend suits and other legalproceedings on behalf of the society;

(zd) the terms on which a co-operativesociety may deal with persons other thanmembers;

(ze) the terms on which a co-operativesociety may associate with otherco-operative society;

(zf) the terms on which a co-operativesociety may deal with organizations otherthan co-operative societies;

(zg) the procedure and manner fortransmission of shares and interest in thename of a nominee in case of death of amember;

(zh) the educational and trainingprogramme to be conducted by theco-operative society;

(zi) the principal place and other placesof business of the co-operative society;

(zj) the minimum level of services, to beused by its members;

(zk) any other matter which may beprescribed.

14. Amendment of Bye-laws of Society.—(1) No amendment of the bye-laws of a societyshall be valid until registered under this Act.For the purpose of registration of anamendment of the bye-laws, a copy of theamendment passed by a majority of not lessthan two-third of the members entitled tovote who are present at a general meetingof the society shall be forwarded to theRegistrar.

(2) Every application for registration of anamendment of the bye-laws shall be decidedand communicated to the society by theRegistrar within a period of sixty days fromthe date of its receipt.

(3) In case of refusal of amendment, if the

decision is not communicated to the society,

with the reasons thereof, within the said

period of sixty days, the said amendment of

the bye-laws shall be deemed to have been

registered:

Provided that the society shall comply withall the requirement necessary for amendmentof bye-law.

(4) Where the Registrar registers anamendment of the bye-laws of a society orwhere the amendment of the bye-laws isdeemed to have been registered, he shall



811

issue to the society a copy of the amendmentcertified by him, which shall be conclusiveevidence that the same is duly registered.

15. A power to direct amendment of bye--laws.— (1) If it appears to the Registrar thatan amendment of the bye-laws of a society isnecessary or desirable in the interest of suchsociety he may call upon the society, in themanner prescribed, to make the amendmentwithin such time as he may specify;

(2) If the society fails to make theamendment within the time specified, theRegistrar may, after giving the society anopportunity of being heard and afterconsulting such State federal society as maybe notified by the State Government, registersuch amendment and issue to the society acopy of such amendment, certified by himwith effect from the date of the registration ofthe amendment in the manner aforesaid, thebye-laws as amended shall, subject to appeal(if any), be binding on the society and itsmembers.

16. Change of name.— (1) A co-operativesociety may, by resolution passed at a generalmeeting and with the approval of theRegistrar, change its name, but such changeshall not affect any right or obligation of theco-operative society or of any of its membersor past members and any legal proceedingspending before any person, authority ofCourt may be continued by or against theco-operative society under its new name:

Provided that prior approval in writing ofthe Reserve Bank of India shall be necessaryfor change of the name of a co-operative bank.

(2) Where a co-operative society changesits name, the Registrar shall enter the newname on the register of co-operative societiesin place of the former name and shall amendthe certificate of registration accordingly.

17. When amendments of bye-laws comeinto force.— An amendment of the bye-lawsof a co-operative society shall, unless it isexpressed to come into operation on a

particular day, come into force on the day onwhich it is registered or deemed to beregistered.

18. Change of Liability.— (1) Subject to theprovisions of this Act and the Rules, aco-operative society may, by an amendmentof its bye-laws change the form or extent ofits liability.

(2) When a co-operative society has passeda resolution to change the form or extent ofits liability, it shall give notice thereof inwriting to all its members and creditors and,notwithstanding anything in any bye-laws orcontract to the contrary, any member orcreditor shall, during a period of thirty daysfrom the date of receipt of notice by him, havethe option of withdrawing his shares, depositsor loans, as the case may be.

(3) Any member or creditor who does notexercise his option within the period specifiedin sub-section (2) shall be deemed to haveassented to the change.

(4) An amendment of a bye-laws of aco-operative society changing the form orextent of its liability shall not be registered ortake effect until either—

(a) the assent thereto of all members andcreditors has been obtained; or

(b) all claims of members and creditorswho exercise the option referred to insub-section (2) within the period specifiedtherein have been met in full or otherwisesatisfied.

19. Amalgamation, transfer of assets andliabilities and division of co-operativesocieties.— (1) A co-operative society may,by a resolution passed by a two-thirdmajority of the members present and votingat a general body meeting of the co-operativesociety—

(a) amalgamate with another society;

(b) transfer its assets and liabilities inwhole or in part to any other co-operativesociety;


812

(c) divide itself into two or moreco-operative societies;

(d) convert itself into another class ofsociety;

(e) approve a scheme of compromise orarrangement or reconstruction.

(2) Any two or more co-operativesocieties may by resolution passed by atwo-third majority of the members presentand voting at a general body meeting ofeach such co-operative society, amalgamatethemselves and form a new co-operativesociety.

(3) The resolution of a co-operative societyunder sub-section (1) or sub-section (2) shallcontain all particulars of the transfer, divisionor amalgamation, or scheme of compromiseor arrangement or reconstruction as the casemay be:

Provided that in the case of a co-operativebank, the Registrar shall not accord approvalto any such resolution without the previoussanction in writing of the Reserve Bank ofIndia.

(4) When a co-operative society has passedany such resolution, it shall give notice thereofin writing to all its members and creditorsand, notwithstanding anything in any bye--laws or contract to the contrary, any memberor creditors shall, during the period of thirtydays of the date of service of the notice uponhim, have the option of withdrawing hisshares, deposits or loans, as the case maybe.

(5) Any member or creditors who does notexercise his option within the period specifiedin sub-section (4) shall be deemed to haveassented to the proposals contained in theresolution.

(6) A resolution passed by a co-operativesociety under this section shall not take effectuntil, either—

(a) all assent thereto of all the membersand creditors has been obtained;

(b) all claims of members and creditorswho exercise the option referred to sub--section (4) within the period specifiedtherein have been met in full.

(7) Where a resolution passed by aco-operative society under this sectioninvolves the transfer of any assets andliabilities, the resolution shall, notwith-standing anything contained in any law forthe time being in force, be a sufficientconveyance to vest the assets and liabilitiesin the transferee without any furtherassurance.

(8) Notwithstanding anything contained inthe Transfer Property Act, 1882 or theRegistration Act, 1908 in the event of divisionor conversion, the registration of the newsocieties or, as the case may be, of theconverted society, and in the event ofamalgamation, the resolution of the societiesconcerned with amalgamation, shall, in eachcase, be sufficient conveyance to vest theassets and liabilities of the original society oramalgamating societies in the new societiesor converted or amalgamated society, as thecase may be.

(9) Where any society is found to bedegenerating in it’s operation and the sharevalue of such society has come down belowit’s face value as on the last day of the yearimmediately preceding it’s revaluation, theRegistrar may, in the interest of members,suo-motu, direct the society to,—

(a) amalgamate with another society;

(b) transfer it’s assets and liabilities, inwhole or in part, to any other society;

(c) divide itself into two or more societies; or

(d) covert itself into another class of society.

In case the society fails to complete theprocess of amalgamation, transfer, division orconversion, as the case may be, within 45days from the date of such direction, theRegistrar shall order the amalgamation,



813

transfer, division or conversion, as the casemay be, of such degenerating society. Allclaims of members, creditors and otherinterested persons of such society as on thedate of such order shall stand transferred tothe society to with which such degeneratingsociety may have been amalgamated, or tothe society to whom assets and liabilities havebeen transferred or to the society formed afterdivision or conversion, as the case may be”.

(10) The amalgamation of societies, ordivision or conversion of a society shall notaffect any right or obligation of the societiesso amalgamated, or society so divided orconverted, or render defective any legalproceeding which might have beencontinued or commenced by or against thesocieties which have been amalgamated, ordivided or converted; and accordingly, suchlegal proceedings may be continued orcommenced by or against the amalgamatedsociety or as the case may be the convertedsociety, or the new societies.

20. Power to direct amalgamation, divisionand re-organization in public interest, etc.—(1) Where the Registrar is satisfied that it isessential in the public interest, or in theinterest of the co-operative movement, or forthe purpose of securing the propermanagement of any co-operative societyshould be divided to form two or moreco-operative societies or should bereorganized then notwithstanding anythingcontained in section 19, but subject to theprovisions of this section, the Registrar may,by order, provide for the amalgamation,division or reorganization of these co-operativesocieties into a single co-operatives societyor into co-operative societies with suchconstitution, property, rights, interest andauthorities and such liabilities, duties andobligations, as may be specified in the order:

Provided that no such order ofamalgamation, division or reorganization inrespect of a co-operative bank shall be madewithout the previous sanction in writing ofthe Reserve Bank of India.

(2) No order shall be made under thissection unless—

(a) a copy of the proposed order has beensent in draft to the co-operative society oreach of the co-operative societiesconcerned; and

(b) the Registrar has considered andmade such modifications in the draft orderas may seem to him desirable in the lightof any suggestions and objections whichmay be received by him within sixty daysfrom the date on which a copy of the orderaforesaid is received by the co-operativesociety or co-operative societies, as thecase may be, either from the co-operativesociety or from any of the co-operativesocieties concerned or from any memberor class of members thereof or from anycreditors or class of creditors thereof.

(3) The order referred to in sub-section (1)may contain such incidental, consequentialand supplemental provisions as may, in theopinion of the Registrar, be necessary to giveeffect to the amalgamation, division orreorganization, as the case may be.

(4) Every member or creditors of each ofthe co-operative society to be amalgamated,divided or reorganized, who has objected tothe scheme of amalgamation, division, orreorganization, within the period specified,shall be entitled to receive, on the issue ofthe order of amalgamation, division orreorganization, his share or interest if he bea member and the amount in satisfaction ofhis dues, if he be a creditor.

(5) On the issue of an order under sub--section (1), the provisions of section 24 shallapply to the co-operative societies soamalgamated divided or reorganized as ifthe amalgamation, division or reorganizationhad been made under section 19.

21. Re-construction of societies.— Where aproposal for a compromise or arrangement,—

(a) between a society and its creditors, or


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(b) between a society and its members, isapproved at a special general meeting calledfor the purpose, the Registrar may, on theapplication of the society or of any memberor of any creditor of the society, or in the caseof a society which is being wound up, of theliquidator, order re-construction of the societyin the prescribed manner.

22. Partnership of societies and subsidiary.—(1) Any two or more societies may, byresolution passed by three-fourth majority ofthe members present and voting at a generalmeeting of each such society, enter intopartnership for carrying out any specificbusiness or businesses, provided that eachmember has clear ten days written notice ofthe resolution and the date of the meeting.

(2) Nothing in the Partnership Act, 1932(9 of 1932) shall apply to such partnership.

(3) The annual report and accounts relatingto specific business or business of eachsuch society shall be placed before theannual general meeting of each suchsociety.

(4) Any society may, by resolution passedat general meeting by three-fourth majorityof members present and voting, promote oneor more subsidiary organizations for thefurtherance of its stated objective and suchorganizations may be registered under anylaw for the time being in force as agreed toby the general body.

(5) The annual reports and accounts of suchsubsidiary organizations shall be placedbefore the general meeting of the promotingco-operative society every year.

(6) Any subsidiary organization createdunder sub-section (4) shall exist only as longas the general body of the co-operativesociety deems its existence necessary.

(7) The concerned society shall intimate tothe Registrar about such partnership orsubsidiary within a month of its formation ordissolution.

23. Collaboration by societies.— Any societymay, by resolution passed in a generalmeeting by three-fourth majority of memberspresent and voting, enter into collaborationwith any Government undertaking or anyundertaking approved by the Government forcarrying on any specific business orbusinesses, including industrial investment,financial aid or marketing and managementexpertise.

24. Cancellation of registration.— TheRegistrar shall make an order cancelling theregistration of a society if it transfers thewhole of its assets and liabilities to anothersociety, or amalgamates with another society,or divides itself into two or more societies orif its affairs are wound up, or it is de--registered under the provisions of sub-section (1) of section 25, or winding upproceedings in respect of the society areclosed or terminated under section 131. Thesociety shall, from the date of such order ofcancellation, be deemed to be dissolved, andshall cease to exist as a corporate body.

25. De-registration of societies.— (1) If theRegistrar is satisfied that any society isregistered on misrepresentation made byapplicants, or where the work of the societyis completed or exhausted or the purposesfor which the society has been registered arenot served, he may, after giving anopportunity of being heard to the Board ofDirectors or Chief Promoter where Board ofDirector is not constructed de-register thesociety:

Provided that, where the number ofmembers of the society is so large and it isnot possible to ascertain the correctaddresses of all such members from therecords in the office of the Registrar and, inthe opinion of the Registrar it is not practicableto serve a notice of hearing on each suchindividual member, a public notice of theproceedings of de-registration shall be givenin the prescribed manner and such noticeshall be deemed to be notice to all themembers of the society including the chief



815

promoter and the members of the Board ofDirectors of the society, and no proceedingsin respect of the de-registration of the societyshall be called in question in any Court merelyon the ground that individual notice is notserved on any such member.

(2) When a society is de-registered underthe provisions of sub-section (1), the Registrarmay, notwithstanding anything contained inthis Act or any other law for the time beingin force, make such incidental andconsequential orders including appointmentof official assignee as the circumstances mayrequire.

(3) The official assignee shall realize theassets and liquidate the liabilities within aperiod of one year from the date he takesover the charge of the property, assets, books,records and other documents, which periodmay, at the discretion of the Registrar, beextended from time to time, so however, thatthe total period does not exceed three yearsin the aggregate.

(4) The official assignee shall be paid suchremuneration and allowances as may beprescribed, and he shall not be entitled toany remuneration whatever beyond theprescribed remuneration or allowance.

(5) Surplus remained after the process ofde-registration shall be transferred to“Surplus Fund Account” of the Registrar.

Explanation.— For the purpose of this sub--section, “Surplus Fund Account” meansaccount maintained for the purpose of surplusreferred to in this sub-section”.

Section 25A.— Liability of a co-operativebank to the Deposit Insurance and CreditGuarantee Corporation.— Notwithstandinganything contained in section 19 or anyother provision of this Act, where a co--operative bank, being an insured bankwithin the meaning of the Deposit Insuranceand Credit Guarantee Corporation Act, 1961(47 of 1961), is amalgamated or re-organized

and the Deposit Insurance and CreditGuarantee Corporation has become liable topay to the depositors of the insured bankunder sub-section (b) of section 21 of thatAct, the bank with which such insuredBank is amalgamated or the new co--operative bank formed after suchamalgamation, or as the case may be, theinsured bank or the transferee bank, shallbe under an obligation to repay to theDeposit Insurance and Credit GuaranteeCorporation in the circumstances, to theextent and in the manner referred to insection 21 of the Deposit Insurance andCredit Guarantee Corporation Act, 1961(47 of 1961).”.

CHAPTER III

Members of Co-operative Societies and their Rightsand Liabilities

26. Person who may become member.— (1)

Any person, who needs the services of the

Society, accepts the responsibilities of

membership and fulfills such other conditions

as may be specified in the bye-laws of the

Society, may be admitted as a member.

(2) No person shall be admitted as amember of a society except the following, thatis to say:—

(a) an individual, who is a citizen of Indiaand who is competent to contract underthe Contract Act, 1872.

(b) a firm, company or any other bodycorporate constituted under any law for thetime being in force, or a society registeredunder the Societies Registration Act,1860.

(c) a society registered, or deemed to beregistered, under this Act or any otherCo-operative Societies Act;

(d) a public trust registered under anylaw for the time being in force for theregistration of such trusts;


816

(e) Any Self Help Group formed bywomen/men for mutual assistance or withan objective to avail any type of assistancefrom Government or any organization fortheir Social, Economic, Cultural andEducational improvement.

(3) Admission of members may be madeonly by an elected Board of Directors or bythe general body where such a board doesnot exist.

(4) A person admitted as a member mayexercise the rights of membership, includingthe right to vote, only on fulfillment of suchconditions as may be laid down from time totime in the bye-laws.

27. Open Membership.— (1) No societyshall, without sufficient cause, refuseadmission to membership to any person dulyqualified therefore under the provisions of thisAct and its bye-laws.

(2) Where a person is refused admission asa member of a society, the decision, with thereason therefore, shall be communicated tothat person within fifteen days of the date ofthe decision, or within three months from thedate of the application for admissionwhichever is earlier. If decision is notcommunicated as mentioned above, theapplication deemed to be refused.

(3) Any person aggrieved by the decisionof a society refusing him admission of itsmembership, may appeal to the Registrar.

(4) An appeal under sub-section (3) shallbe filed within two months of the date ofcommunication of refusal.

28. Joint member.— (1) Subject to theprovisions of section 26, a society may admitany person as a joint member. A joint membershall hold jointly a share of the society withanother but his name shall not stand first inthe share certificate.

(2) A member of a society may appoint notmore than one joint member.

(3) When a person whose name stands firstin the share certificate ceases to be amember, the person admitted as joint membershall automatically be first member. In theevent of the cessation of membership of thefirst member by death, the joint member shallbe the first member and the nominee, if any,of the deceased member shall be the jointmember.

(4) The joint member shall have equal rightin the capital and property of the Society withthe first member.

(5) The joint member shall have the rightto vote only in the absence of the memberwhose name stands first in the sharecertificate.

29. Nominal member.— (1) Notwithstandinganything contains in section 26 a society mayadmit any person as nominal member onpayment of entrance fee as specified in thebye-laws.

(2) A Nominal Member shall not be entitledto any share in any form whatsoever in theprofits or Assets of the Society as suchmember. A nominal member shall ordinarilynot have any of the privileges and rights of amember, however except the voting right, thenominal member shall have such privilegesand rights and be subject to such liabilities,of a member, as may be specified in thebye-laws of the society.

30. Cessation of membership.— A personshall cease to be a member of a society onhis resignation from the membership thereofbeing accepted or on the transfer of the wholeof his share or interest in the society toanother member, or on his death, or expulsionfrom the society or ceasing to hold thequalification for the membership under thebye-laws of the society or where a firm,company, any other corporate body, societyor trust is a member, on its dissolution orceasing to exist.

31. Expulsion of members.— (1) A societymay, by resolution passed by a majority of



817

not less than three-fourth of the membersentitled to vote who are present at generalmeeting held for the purpose, expel a memberfor acts which are detrimental to the interestor proper working of the society:

Provided that, no such resolution shall bevalid, unless the member concerned is givenan opportunity of representing his case tothe general body. If the member is aggrievedby the decision of the society expelling himfrom its membership, he may appeal to theRegistrar within two months of the date ofthe communication of such decision.

(2) No members of a society who has beenexpelled under the foregoing sub-sectionsshall be eligible for re-admission as a memberof that society, for a period of one year fromthe date of such expulsion.

32. Rights of membership.— (1) No personshall exercise the rights of the member of asociety, until he has made such payment tothe society in respect of membership, oracquired such interest in the society as maybe specified in the bye-laws of such society.

(2) Any member or creditor having interestin the affairs of the co-operative society mayseek information relating to his transaction ofthe co-operative society and for that purposemay be provided a certified copy of anydocument within thirty days from the date ofreceipt of application relating to suchtransaction on payment of such fee as maybe specified.

(3) Where a member or creditor havinginterest in affairs of the society seekinginformation prefers an appeal to the Registrarstating that the officer of the society withoutany reasonable cause, has refused to receivehis application for providing information orhas not furnished information within the timespecified under sub-section (1) or has refusedthe request for information or knowingly givenincorrect information or obstructed in anymanner in furnishing the information, theRegistrar, after affording a reasonableopportunity of being heard to the officer of

the society and the appellant, may eitherreject the appeal; or direct the officer of thesociety to furnish information within theperiod specified in the order or such extendedperiod as may be allowed, and in case ofdefault the Registrar may impose a penaltyof two hundred and fifty rupees each day tillthe information is furnished, so however, thetotal amount of such penalty shall not exceedten thousand rupees which shall berecoverable as arrears of land revenue in caseof default in payment.

33. Voting power of members.— Everymember of a co-operative society shall haveone vote in the affairs of the co-operativesociety:

Provided that—

(a) in the case of an equality of votes,the chairman shall have a second or castingvote;

(b) a nominal or joint member shall nothave the right of vote;

(c) Where the Government is a memberof the co-operative society, the nominateddirector shall not have right to vote.

(d) If a co-operative society becomesdefunct and has ceased to function inaccordance with the bye-laws and co--operative principles, its representativeshall have no voting right in the affairs ofa federal co-operative society or financialbank or financial society and such societyshall not qualify for election to the Board ofDirectors of federal society.

Explanation.— Defunct Society means asociety which has not carried on businessfor three years to the extent prescribed bythe Registrar in the notification issued fromtime to time.

34. Manner of exercising vote.— (1) Everymember of a co-operative society shallexercise his vote in person and no membershall be permitted to vote by proxy.


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(2) Notwithstanding anything contained insub-section (1), a co-operative society whichis a member of another co-operative society,may appoint one of its member to vote on itsbehalf in the affairs of that co-operativesociety.

(3) A company, firm or any other bodycorporate constituted under any law for thetime being in force which has invested anpart of its funds in the shares of a societymay appoint any one of its director or officerto vote on its behalf in the affairs of suchsociety, and accordingly such director orofficer shall have the right to vote on behalfof the company or body corporate:

Provided that a member who is in theemployment of the Defence Services shall beentitled to vote by proxy through any othermember of the society if he is unable toexercise his right of vote personally:

Provided further that a NRI who hassubscribed to the Bye-laws for registration ofa society and/or is a Citizen of India stayingabroad and unable to attend the general bodyand election to the Board of Director of aHousing Society in person can appoint anymember of a society as his proxy to attendthe general body and to vote in the electionof Board of Director. However, he shall not beentitled to contest the election of Board ofDirector.

35. Restriction on transfer of shares or

interest.— The transfer of the share or interest

of a member in the capital of a co-operative

society shall be subject to such conditions as

to maximum holding as are specified insection 9.

36. Transmission of interest on death ofmember.— (1) On the death of a member of asociety, the society shall transmit the shareor interest of the deceased member to aperson or persons nominated, or to suchperson as may appear to the Board of Directorsto be the heir or legal representative of thedeceased member:

Provided that, such nominee, heir or legalrepresentative, as the case may be, dulyadmitted as a member of the society.

(2) Notwithstanding anything contained insub-section (1), any such nominee, heir orlegal representative, as the case may be, mayrequire the society to pay to him the value ofthe share or interest of the deceased member,ascertained in accordance with the Rules:

Provided that, nothing contained in thissub-section or in section 26 shall prevent aminor or person of unsound mind fromacquiring by inheritance or otherwise, anyshare or interest of a deceased member in asociety.

(3) A society may pay all other moneys dueto the deceased member from the society tosuch nominee, heir or legal representative,as the case may be.

(4) All transfers and payments duly madeby a society in accordance with theprovisions of this section shall be valid andeffectual against any demand made upon thesociety by any other person.

37. Liability of past member and estate ofdeceased member.— The liability of a pastmember, or of the estate of a deceasedmember, of a society for the debts of thesociety as they stood—

(a) in the case of a past member, on thedate on which he ceased to be member,and

(b) in the case of a deceased member,on the date of his death, shall cease aftera period of two years from such date.

38. Rights of members to see books, etc.—(1) Every member shall be entitled to inspect,free of cost, at the society’s office during officehours, or at any time fixed for the purpose bythe society, the bye-laws, the last three yearsaudited annual financial statements, auditreport and audit rectification report and thoseportions of the minutes of general meetings



819

and Board meetings and books and recordsrelevant to his transactions with the society.

(2) A society shall furnish to a member, onrequest in writing and on payment of suchfees as may be specified in the bye-laws, acopy of any of the documents mentioned inthe foregoing sub-section within one monthfrom the date of payment of such fees.

39. Insolvency of members.— Notwith-standing anything contained in the ProvincialInsolvency Act, 1920 (V of 1920) or anycorresponding law for the time being in force,the dues of a society from a member, ininsolvency proceedings against him, shallrank in order of priority next to the duespayable by him to the Government or to alocal authority.

CHAPTER IV

Privileges of Co-operative Societies

40. Co-operative society to be bodycorporate.— The registration of a co-operativesociety shall render it a body corporate bythe name under which it is registered havingperpetual succession and a common seal, andwith power to hold property, enter intocontract, institute and defend suits and otherlegal proceedings and do all things necessaryfor the purposes for which it is constituted.

41. First charge of co-operative society oncertain movable assets of member for theamount due from him.— (1) Notwithstandinganything contained in this Act or any otherlaw for the time being in force, but subject toany prior claim of the Government in respectof land revenue or any money recoverable asland revenue, any debt or outstandingdemand owing to a co-operative society byany member or past member or deceasedmember shall be a first charge upon the cropsand other agricultural produce, cattle, fodderfor cattle, agricultural or industrial implementsor machinery, raw materials for manufactureand any finished products manufactured fromsuch raw materials, belonging to suchmember, past member or forming part of the

estate of the deceased member, as the casemay be.

(2) No person shall transfer any propertywhich is subject to a charge undersub-section (1) except with the priorpermission in writing of the co-operativesociety which holds the charge.

(3) Notwithstanding anything contained inany law for the time being in force, anytransfer of property made in contravention ofthe provisions of sub-section (2) shall be void.

42. Charge on Immovable property ofmembers borrowing loan from certain co--operatives.— Notwithstanding anythingcontained in this Act or in any other law forthe time being in force—

(i) any person who makes an applicationto a co-operative society of which he is amember for a loan shall, if he owns anyland or has interest in any land as tenant,make a declaration in the prescribed formwhich shall state that the applicant therebycreates a charge on such land or interestspecified in the declaration for the paymentof the amount of loan which co-operativesociety may make to the member inpursuance of the application and for allfuture advances, if any, required by himwhich the co-operative society may maketo him as such member subject tosuch maximum as may be determined bythe co-operative society together with theinterest on such amount of loan andadvances;

(ii) a declaration made under clause (i)may be varied at any time by a memberwith the consent of the co-operative societyin favour of which such charge is created;

(iii) no member shall alienate the wholeor any part of the land or interest thereinspecified in the declaration made underclause (i) until the whole amount borrowedby the member together with interestthereon is paid in full:


820

Provided that for the purpose of payingin full to the co-operative society the wholeamount borrowed by the member togetherwith interest thereon, the member may,with the previous permission in writing ofthe co-operative society and subject to suchconditions as the co-operative society mayimpose, alienate the whole or any part ofsuch land or interest thereon:

Provided further that standing crops onany such land may be alienated with theprevious permission of the co-operativesociety;

(iv) any alienation made in contraventionof the provisions of clause (iii) shall be void;

(v) Subject to the prior claims of theGovernment in respect of land revenue orany money recoverable as land revenue,there shall be a first charge in favour ofthe co-operative society on the land orinterest specified in the declaration madeunder clause (i) for and to the extent of thedues owing by him on account of the loansand advances;

(vi) the record of rights shall also includethe particulars of every charge on land orinterest created under a declaration underclause ( i) notwithstanding anythingcontained in any law relating to landrevenue for the time being in force;

(vii) any sum due to a co-operativesociety in consequence of charge createdunder a declaration under clause (i) shall,on application of its recovery being madeby such co-operative society accompaniedby a certificate signed by the Registrar, berecoverable by the Collector, according tothe law and under the Rules for the timebeing in force for the recovery of landrevenue.

43. Charge and set-off in respect of shareor contribution or interest of members.— Aco-operative society shall have a charge uponthe share or contribution or interest in thecapital and on the deposit of a member orpast member or deceased member and uponany dividend, bonus or profits payable to a

member or past member or the estate of adeceased member in respect of any debt fromsuch member or past member or the estateof such deceased member to the co-operativesociety, and may set-off any sum credited orpayable to a member or past member or theestate of deceased member in or towardspayment of any such debt.

44. Share or contribution or interest notliable to attachment.— Subject to theprovisions of section 42, the share orcontribution or interest of a member or pastmember or deceased member in the capitalof a co-operative society shall not be liable toattachment or sale under any decree or orderof any Court in respect of any debt or liabilityincurred by such member, and a receiverunder the Provincial Insolvency Act, 1920(5 of 1920) shall not be entitled to or haveany claim on such share or contribution orinterest.

45. Register of members.— Any register orlist of members or shares kept by anyco-operative society shall be prima facieevidence of any of the following particularsentered therein:—

(a) the date on which any person enteredin such register or list became a member;and

(b) the date on which any such personceased to be a member.

46. Admissibility of copy of entry asevidence.— (1) A copy of any entry in a bookof a co-operative society regularly kept in thecourse of its business shall, if certified in suchmanner as may be prescribed, be receivedin any suit or legal proceedings as prima facieevidence of the existence of such entry, andshall be admitted as evidence of the matters,transactions and accounts therein recordedin every case where, and to the same extentas, the original entry itself is admissible.

(2) No officer of a co-operative society andno officer in whose office the books of aco-operative society are deposited afterliquidation shall, in any legal proceedings to



821

which the co-operative society or theliquidator is not a party, be compelled toproduce any of the co-operative society’sbooks or documents the contents of whichcan be proved under this section, or to appearas a witness to prove the matters,transactions and accounts therein recorded,except under order of the Court or thearbitrator made for special cause.

47. Exemption from certain taxes, fees andduties.— (1) The Government may, bynotification in the Official Gazette, remit inrespect of any class of co-operative societies—

(a) the stamp duty chargeable under anylaw for the time being in force in respectof any instrument executed by or on behalfof a co-operative society or by an officer ormember thereof and relating to thebusiness of such co-operative society or anyclass of such instruments or in respect ofany award or order made under this Act,in cases, where, but for such remission theco-operative society, officer or member, asthe case may be, would be liable to paysuch stamp duty; and

(b) any fee payable under any law forthe time being in force relating to theregistration of documents or court fees.

(2) The Government may, by notification inthe Official Gazette, remit in respect of anyclass of co-operative societies—

(a) land revenue;

(b) taxes on agricultural income; and

(c) taxes on professions, trades, callingsand employments:

Provided that the aforesaid exemption shallnot include exemption in respect of certainSales Taxes or Central Taxes or Duties orLevies.

48. Copy of Bye-laws etc., to be open toinspection.— The Registrar shall keep thebye-laws and the list of members of Board of

Directors of every society registered underthis Act, open for inspection to the public onpayment of such fees as may be prescribed.

49. Deduction from salary to meetco-operative society’s claim in certain cases.—(1) Notwithstanding anything contained inany law for the time being in force, a memberof a co-operative society may execute anagreement in favour of the co-operativesociety providing that his employer shall becompetent to deduct from the salary or wagespayable to him by the employer, such amountas may be specified in the agreement andto pay the amount so deducted to theco-operative society in satisfaction of any debtor other demand owing by the member tothe co-operative society.

(2) On the execution of such agreement,

the employer shall, if so required by the

co-operative society by a requisition in

writing and so long as the co-operative

society does not intimate that the whole of

such debt or demand has been paid, make

the deduction in accordance with the

agreement and pay the amount so deducted

to the co-operative society, as if it were a

part of the salary or wages payable on the

day as required under the Payment of Wages

Act, 1936 (4 of 1936). Such payment shall be

valid discharge of the employer for his liabilityto pay the amount deducted.

(3) Where a requisition in writing from any

co-operative society registered or deemed to

be registered in any reciprocating States/

/Union Territory in respect of a member of

that co-operative society, who has executed

any such agreement as is referred to in

sub-section (1) and who, for the time being,

is employed in State of Goa, is received by

his employer, the requisition shall be acted

upon as if it had been made by a co-operative

society in State of Goa and the provisions of

this section shall have effect accordingly.

Explanation.— For the purpose of thissub-section “reciprocating States/Union


822

Territory” means any State or Union Territorywhich the Government may, by notificationin the Official Gazette, declare to bereciprocating State/Union Territory.

(4) If, after the receipt of a requisition made

under sub-section (2) or sub-section (3), the

employer at any time fails to deduct the

amount specified in the requisition from the

salary or wages payable to the member

concerned or makes default in remitting the

amount deducted to the co-operative society,

the co-operative society shall be entitled to

recover any such amount from the employer

as arrears of land revenue and the amount so

due from the employer shall rank in priority

in respect of the liability of the employer equal

to that of the wages in arrears.

(5) Nothing contained in this Section shallapply to an establishment under a railwayadministration operating any railway asdefined in clause (20) of Article 366 of theConstitution.

CHAPTER V

State Aid to Societies

50. Government Investment in Societies.—The Government may subscribe to the sharecapital of a society with limited liability, upon,such terms and conditions as may be agreedupon.

51. Liability to be limited in respect ofGovernment Shares.— Where any share arepurchased in a society by the Government,the liability in respect of such shares shall,in the event of the society of which theshare are purchased being wound up, belimited to the amount paid in respect of suchshares.

52. Other Forms of State aid to Societies.—Notwithstanding anything contained in anylaw for the time being in force, but subject tosuch conditions as the Government may, bygeneral or special order specify in this behalf,the Government may,—

(a) give loans to a society;

(b) guarantee the payment of theprincipal of debentures issued by a society,or of interest thereon, or both or therepayment of the share capital of a societyto its members, or the payment of dividendthereon at such rates as may be specifiedby the Government;

(c) guarantee the repayment of loansgiven by a co-operative bank to a society:

(d) guarantee the repayment of theprincipal and payment of interest on, loansand advances given by the Reserve Bankof India, or any Bank or any other financialinstitution constituted under any law forthe time being in force: or

(e) provide financial assistance, in anyother form, including subsidies, to asociety.

53. Provisions of this Chapter to overrideother laws.— The provisions in this chaptershall have effect notwithstanding anythinginconsistent therewith contained in any otherlaw for the time being in force.

CHAPTER VI

Properties and Funds of Co-operative Societies

54. Funds other than net profits/surplusnot to be divided among members.— No partof the funds other than net profits of aco-operative society shall be divided by wayof bonus or dividend or otherwise distributedamong its members:

Provided that after atleast one-fourth of thenet profits in the year has been carried to thereserve fund, payments from the remainderof such profits and from any profits of pastyears available for distribution may be madeto the member to such extent and under suchconditions as may be prescribed by the Rulesor bye-laws:

Provided further that a society may issuebonus share out of its reserve and such bonusshares issued may not rank pari-passu to the



823

existing shares. Such bonus shares shall beissued by passing a resolution in the generalbody. The issue of bonus shares shall be inaccordance with the bye-laws of the society.

55. Contribution to Co-operative EducationFund.— A co-operative society shall out ofits net profits/surplus in any year creditsuch portion of the profits equal to twopercent or maximum rupees fifty thousandwhichever is less towards contribution to theCo-operative Education Fund which shall betransferred to the Goa State Co-operativeUnion or as may be prescribed under theRules.

56. Contribution to charitable purpose.—Any co-operative society may, with the priorapproval of the general body, after one-fourthof the net profits/surplus in any year hasbeen carried to the reserve fund, contributean amount not exceeding five per cent ofthe remaining net profits/surplus to anypurpose connected with the development ofco-operative movement or charitable purposeas defined in section 2 of the CharitableEndowments Act, 1890 (6 of 1890).

57. Reserve and other funds.— (1) A societymay create statutory and non-statutoryreserves and other funds for the promotion ofthe objects of the society.

(2) Every society may provide funds eachyear for co-operative education and trainingof its members, staff and Directors.

58. Investment of funds .— (1) A co--operative society may invest or deposit itsfunds—

(a) in the postal savings bank; or

(b) in any of the securities specified inSection 20 of the Indian Trust Act, 1882; or

(c) in the shares or securities of any otherco-operative society; or

(d) with co-operative or scheduled ornationalized banks; or

(e) in any federal co-operative society ofwhich it is member or apex or financingbank; or

(f) in any other mode permitted by therules or by general or special orders of theGovernment:

Provided that the co-operative bank shallbe required to make investment of its fundsin accordance with the directions,instructions and guidelines of the ReserveBank of India.

(2) Any investment or deposit made beforethe commencement of this Act which wouldhave been valid if this Act had been in forceare hereby ratified and confirmed.

59. Restrictions on loans.— (1) A co-ope-rative society shall not make a loan to anyperson other than a member:

Provided that with the general or specialsanction of the Registrar, a co-operativesociety may make a loan to another co--operative society:

Provided further that the co-operativebanks shall make loans and advances as perdirections of the Reserve Bank of India fromtime to time.

(2) Notwithstanding anything contained insub-section (1), a co-operative society maymake a loan to a depositor against his depositon its security.

60. Restrictions on borrowings.— (1) Aco-operative society may receive deposits,raise loans and receive grants from externalsources to such extent and under suchconditions as may be specified in thebye-laws:

Provided that the total amount of deposits

and loans received during any financial year

shall not exceed ten times of the sum of

subscribed share capital and accumulated

reserves:


824

Provided further that while calculating thetotal sum of subscribed share capital andaccumulated reserves, the accumulatedlosses shall be deducted.

(2) Subject to the provisions of sub-section(1), a co-operative society may accept fundsor borrow funds for the fulfillment of itsobjects as are mutually contracted upon andapproved by the general body of members ofthe co-operative society:

Provided that in case of borrowing by aco-operative bank, it shall be in accordancewith the directions, instructions andguidelines issued by the Reserve Bank ofIndia and or Government from time to time.

61. Restrictions on other transactions withnon-members.— Save as provided in Section59 and Section 60, the transactions of aco-operative society with any person otherthan a member shall be subject to suchprohibitions and restrictions, if any, as maybe prescribed.

62. Funds not to be utilized for certainproceedings filed or taken by or against officerin personal capacity.— Any expenditureincurred from the funds of the society for thepurpose of any proceedings filed or taken byor against any officer of the society in thematter of elections to the Board of Directorsor misfeasance proceedings shall berecoverable from the said officer by the societyif the proceedings are decided against him.

63. Employees provident fund.— (1) Everysociety having more than five employees shallestablish for its employees a provident fundinto which shall be paid the contributionmade by its employees and by the society.Such provident fund shall not be used in thebusiness of the society nor shall it form partof the assets of the society but shall beinvested under the provisions of section 57 ofthis Act and shall be administered in themanner prescribed.

(2) Notwithstanding anything contained inthe foregoing sub-section, a provident fund

established by a society to which theEmployees Provident Fund and MiscellaneousProvisions Act, 1952 (XIX of 1952) isapplicable, shall be governed by that Act.

64. Writing off of bad debts and losses.—All loans including interest thereon andrecovery charges in respect thereof whichare found irrecoverable and are certified asbad debts by the auditor appointed undersection 89 shall first be written off againstthe Bad Debt Fund and the balance, if any,may be written off against the Reserve Fund.

All other dues and accumulated losses orany other loss sustained by the society whichcannot be recovered and have been certifiedas irrecoverable by the auditors may bewritten off against the Reserve Fund or fromthe deficit funds and other Reserves createdfor the purpose:

Provided that—

(1) No bad debts or losses shall bewritten off without the sanction of thegeneral body and approval of Registrar;

(2) Before any such bad debts or lossesare so written off, the society if it is affiliatedand indebted to a Central Co-operativeBank shall first obtain the approval of thatBank in writing and also the approval ofthe Registrar.

CHAPTER VII

Management of Co-operative Societies

65. Final authority in a co-operativesociety.— (1) The final authority in aco-operative society shall vest in the generalbody of members:

Provided that where the bye-laws of aco-operative society provide for theconstitution of a smaller body orRepresentative General Body consisting ofdelegates of members of the co-operativesociety elected or selected in accordancewith such bye-laws, the smaller body shallexercise such powers of the general body as



825

may be prescribed or as may be specified inthe bye-laws of the co-operative society.

(2) Notwithstanding anything contained insub-section (1) of section 34 each delegateshall have one vote in the affairs of theco-operative society.

66. Annual general body meeting.— (1)Every Co-operative Society shall hold theannual general body meeting of its memberswithin nine months from the close of theco-operative year.

(2) At every annual meeting of a society,the Board of Directors shall lay before thesociety a balance sheet and profit and lossaccount for the year in the manner, prescribedby Registrar by general or special order forany class of societies.

Explanation.— In the case of a society notcarrying on business for profit, an income andexpenditure account shall be placed beforethe society at the annual general meetinginstead of profit and loss account; and all thereferences to profit and loss account, and to“Profit” or “loss” in this Act, shall beconstrued in relation to such society asreferences, respectively, to the “income overexpenditure” and “excess of expenditure overincome.”

(3) Subject to the provisions of this Act andthe bye-laws, the following matters shall bedealt with by the general body in the generalmeetings:—

(a) amendments to bye-laws;

(b) consideration of—

(i) annual audited financial statementof the society and its subsidiaries, if any;

(ii) annual report of activities;

(iii) auditors report and auditrectification report.

(iv) annual operational plan andbudget.

(v) approval of excess budgetaryexpenditure of the previous year;

(vi) long term perspective plan andbudget, if any;

(vii) re-audit report or inquiry report,if any;

(d) appointment and removal of statutoryauditors as per the direction issued by theRegistrar;

(e) Appropriation of net profit/surplus;

(f) Management of deficits/bad debts;

(g) Fixation of remuneration and otherfacilities to be allowed to the chairman, anydirectors or members of any committee orinternal auditor in connection with his theirduties in that capacity or his attendance atrelated meetings;

(h) Amalgamation, division re-con-stitution and partnership with any othersociety;

(i) Sale and disposal of businessundertakings;

(j)Dissolution of society;

(k) all other functions expected of thegeneral body under the other provisions ofthis Act.

67. Special general meeting.— (1) A specialgeneral meeting may be called within onemonth.

(i) at any time by the Chairman with theauthority of Board; or

(ii) on a requisition in writing to thateffect by atleast one-tenth of the totalnumber of members of the society or 100members or by atleast one-tenth of the totalnumber of elected representatives or bysuch number of members as specified inthe bye-laws for the purpose; or


826

(iii) at the instance of the Registrar; or

(iv) in the case of a society which is amember of a federal society, at the instanceof the committee of such federal society.

(2) Where, any officer or a member of theBoard of Director, whose duty is to call suchmeeting, without reasonable excuse, fails tocall such meeting, the Registrar may, byorder, declare such member as disqualifiedfor being a member of the Board for suchperiod not exceeding five years, as he mayspecify in such order or impose on suchofficer a penalty not exceeding one hundredrupees for each day of default. Before makingan order under this sub-section, the Registrarshall give, or cause to be given, a reasonableopportunity to the person concerned forshowing cause as to why the action proposedshould not be taken against him.

(3) If a special general meeting of a societyis not called in accordance with therequisition referred to in clause ( ii) ofsub-section (1), the Registrar or any personauthorized by him in this behalf, shall havepower to call such meeting and that suchmeeting, when called, shall be deemed to bea meeting duly called by the Board.

(4) The Registrar shall have the power toorder that the expenditure incurred in callinga meeting under sub-section (3) shall be paidout of the funds of the society or by suchperson or persons who, in the opinion of theRegistrar, were responsible for the refusal orfailure to convene a meeting.

68. Filing of returns.— (1) Every year,within thirty days from the date of holding ofthe annual general meeting, every societyshall file the following documents with theRegistrar alongwith the filing fees as may beprescribed:—

(a) Annual audited or unauditedstatement of accounts;

(b) Report of the Board of Directors;

(c) Auditors report;

(d) Audit rectification report, if any;

(e) Notice/proceedings of the annualgeneral meeting;

(f) Names and addresses of the directorsand their terms of office;

(g) List of amendment to the bye-laws, ifany;

(h) Declaration regarding the date ofholding of the general meeting and numberof members who attended such meetings.

69. Board of Directors.— (1) The manage-ment of every society shall vest in a Board ofDirectors constituted in accordance with thisAct, the Rules and bye-laws, which shallexercise such powers and perform suchduties as may be conferred or imposed bythis Act, the rules and the bye-laws.

(2) The term of office of the Board ofDirectors shall not exceed five years from thedate of election:

Provided that where in terms of theprovisions of the bye-laws of a society, one--third members of its committee or Board ofDirectors retire every year, the term of officeof such a committee or board shall, after thecommencement of the Goa Co-operativeSocieties Act, expire on the date on whichretirement of any of its one-third membersfalls for the first time.

(3) The size of the Board of Directors shallbe in accordance with the bye-laws, subjectto a maximum of 15 elected directorsexcluding the chief executive who shall bean ex officio director of the board.

(4) The board shall have a Chairman andsuch other office bearers as may be providedin the bye-laws who shall be elected fromamong the elected directors in the mannerprovided in the bye-laws provided further,that no person shall be, or shall continue tobe, Chairman and such other office bearers



827

as may be provided in the bye-laws, for aconsecutive period of more than ten yearsand at the expiration of that period any suchperson shall cease to be Chairman and or theoffice bearer of that society, and shall not beeligible for being re-elected or re-appointedas a Chairman or office bearer, until a periodof five years has elapsed after expiry of theaforesaid period of ten years.

If any person resigns his office as Chairmanor office bearers at any time within twentyfour months of the date on which theconsecutive period of ten years would, butfor his resignation have been completed, heshall be deemed to have completed the periodof ten years on his resignation.

(5) The Board of Directors may set upcommittees from among its directors andothers for specific purpose and suchcommittees shall submit their reports withrecommendations or observations to the boardfor action, within the time specified by theboard.

(6) Every director and employee of asociety while exercising his power anddischarging his duties shall,—

(a) act honestly and in good faith and inthe best interest of the society; and

(b) exercise such care, diligence and skillas a reasonably prudent person wouldexercise in similar circumstances.

(7) A director or employee who is guilty ofmisappropriation, breach of trust or any otheromission or commission, resulting in loss tothe society shall be personally liable to makegood that loss, without prejudice to suchcriminal action to which he is liable underthe law.

(8) The members of the committee shall bejointly and severally liable for the decisionstaken by the committee during its termrelating to the business of the society. Themembers of the committee shall be jointly andseverally liable for all the acts and omissions

detrimental to the interest of the society.Every such member shall execute a bond tothat effect within fifteen days of his assumingthe office, in the form as specified by the StateGovernment by general or special order. Themember who fails to execute such bondwithin the specified period shall be deemedto have vacated his office as a member of thecommittee:

Provided that, before fixing any respon-sibility mentioned above, the Registrar shallinspect the records of the society and decideas to whether the losses incurred by thesociety are on account of acts or omissionson the part of the members of the committeeor on account of any natural calamities,accident or any circumstances beyond thecontrol of such members:

Provided further that, any member of thecommittee who does not agree with any ofthe resolution or decision of the committee,may express his dissenting opinion whichshall be recorded in the proceedings of themeeting and such member shall not be heldresponsible for the decision embodied in thesaid resolution or such acts or omissionscommitted by the committee of that societyas per the said resolution. Such dissentingmember, if he so desires, may alsocommunicate in writing his dissenting noteto the Registrar within fifteen days from thedate of the said resolution or decision. Anymember, who is not present for the meetingin which the business of the society istransacted, and who has not subsequentlyconfirmed the proceedings of that meeting,such member shall also not be heldresponsible for any of the business transactedin that meeting of the society:

(9) Provided further that, he shall file thereturn about his loan transactions and hisdealing with the society in the formprescribed by the Registrar from time to timedepending upon the type of society.

70. Election to Board of Directors ofsocieties.— (1) The elections to the Board ofDirectors and office bearers of all the societies


828

and representative general bodies, exceptthose mentioned in sub-section (5) of thissection, shall be conducted by the Registrarin such manner as may be prescribed.

(2) Where the Registrar fails to hold electionto the board of any society, the term of officeof the members of the board of that societyshall be deemed to have been extendedtill the date immediately preceding thedate of the first meeting of the newly electedboard.

(3) The voting at election shall be by secretballot.

(4) The expenses for holding any suchelections shall be borne by the concernedsociety.

(5) Societies having paid up share capitalof less than rupees fifty lakhs may hold theirelection in accordance with their bye-lawsand election Rules:

Provided that the Registrar may conductthe election of any such society in accordancewith the provisions of sub-section (1) to (4)of this section if he is satisfied thatcircumstances exist for such election. No suchelection shall, however, be held by theRegistrar after the election programme iscommenced by the society in accordancewith its bye-laws and election rules.

(6) If the society is opting forrepresentative general body it shall beconstituted in the following manner:—

(a) The members of the society shall bedivided in different groups on territorial orany other basis as may be specified in thebye-laws for the purpose of electing arepresentative to represent the said groupof members at general meetings of thesociety and to vote on their behalf atsuch general meetings. The electedrepresentative shall be entitled to vote andcontest the election of the Board of Directorsof such society on behalf of the group theyrepresent.

(b) The representative group shall beformed in such a manner that the numberof the representatives elected shall not beless than fifty and shall not be more thanfive hundred depending upon the totalmembership of the society.

(c) The election of representative to therepresentative general body shall be heldsix months prior to the election to the Boardof Directors of the concerned society andsuch representatives shall be elected forterm of five years and shall be eligible forre-election, if not otherwise disqualifiedunder the provisions of this Act, Rules andBye-laws.

(d) Any vacancy arising in the post ofrepresentative shall be filled by re-electionby the concerned group of members withina period of six months. Such re-electionshall be held by the Registrar in the samemanner.

71. Vacancies on the Board of Directors.—(1) Where there is a vacancy or vacancies onthe Board of Directors after election, theremaining directors may exercise all powersof the board or may fill the vacancy for theremainder of the term from the eligiblepersons through co-option, if such vacanciesare not more than one third of the totalmember of Directors of Board.

(2) In the event of resignation of anymember of the Board of Directors on theSociety he shall handover his resignation tothe Chairman. In case the Chairman himselfwants to resign from the Board, he shall handover his resignation to the Chief ExecutiveOfficer who in turn shall place the same inmeeting of the Board of Directors forconsideration of acceptance. In the event ofresignation of office bearer and acceptanceof the same, the election of new office bearershall be done in the same Board meeting.Should there be resignation from majority ofthe members on the Board of Directorsincluding Chairman, or otherwise suchresignations shall be handed over to the Chief



829

Executive Officer who will forward the sameto the Registrar of Coop. Societies.

Explanation.— Office bearer means theChairman, Vice-Chairman, Secretary,Treasurer or any other designated officeramongst the Board of Directors.

Registrar after receiving the resignation ofthe majority of the members of the Board ofDirectors shall assess the situation and decidethe course of action either in term of Section71 or Section 78 of this Act.

(3) Where there is a vacancy or vacancieson the board in excess of one-third of thetotal number of directors of the board, thenall the vacancies shall be filled by re-electionin accordance with section 70 of the Act.

(4) The term of office of the directors whoare appointed or nominated or co-opted orre-elected on the board to fill the vacancyshall be co-terminus with the term of office ofthe elected directors notwithstanding thedate of their such appointment, nominationor co-option or re-election to fill the vacancy.

(5) The Government may, by general orspecial order direct such societies or class ofsocieties to reserve not more than three seats,one each for the members of scheduled castesor scheduled tribes or women or any othereconomically backward classes on the Boardof Directors of such societies.

72. Appointment of members of the Board,new Board or administrator where there isfailure to elect or where committee does notenter upon office.— (1) Where the Registraris satisfied that—

(a) at the first constitution of the Board ofany society there is a failure to elect all orany of the members of the Board;

(b) the term of the Board of any societyor of any of its members has expired or forany other reason election is held and thereis failure to elect all or any of the membersrequired to fill the vacancies;

(c) any Board is prevented from enteringupon office;

(d) a new Board has failed to enter uponoffice on the date on which the term ofoffice of the existing Board expired; or

(e) a new Board cannot for any reasonbe constituted before the expiry of the termof office of the existing Board.

He may, either suo moto or on theapplication of any officer of the society, byorder appoint:—

(i) any member or members of the societyto be the members of the Board of Directorsto fill the vacancy/vacancies.

(ii) a committee of Administratorconsisting of not more than three membersof the society, or one or moreadministrators, who need not be themembers of the society, to manage theaffairs of the society till a new Board entersupon office:

Provided that, before making such order,the Registrar shall publish a notice on thenotice board at the head office of the society,inviting objections and suggestions withrespect to the proposed order within a periodspecified in the notice and consider allobjections and suggestions received by himwithin that period:

Provided further that, it shall not be

necessary to publish such notice in any case

where the Registrar is satisfied that

immediate action is required to be taken or

that it is not reasonably practical to publish

such notice.

(2) The Board of Directors or administratorso appointed shall be subject to the controlof the Registrar and obey such instructionsas the Registrar may, from time to time give,and shall have power to discharge all or anyof the functions of the Board of Directors or ofa director, as the case may be, and take all


830

such actions as may be required to be takenin the interest of the society.

(3) The board or administrator shall makenecessary arrangement to constitute a newBoard of Directors or for enabling the newBoard of Directors to enter upon office as thecase may be, within such period or extendedperiod as the Registrar may specify.

73. Disqualification for being Director//Delegate of Representative General Body.—(1) In addition to such criteria as may bespecified in the bye-laws, a person shall beineligible for being chosen as Director//Delegate of Representative General Body. Ifhe,—

(a) has at any time, lost the right to voteas a member as specified in the bye-laws;

(b) loses the right to continue as memberunder the provisions of the Act, Rules andBye-laws;

(c) is a defaulter of any society;

Explanation.— For the purpose of thisclause, the term “de faulter” includes—

(i) in the case of a resource society, amember who defaults the payment of thecrop loan on the due date;

(ii) in the case of a society which lendsterm loaning, a member who defaults thepayment of any installment of the loangranted to him;

(iii) in the case of any society,—

(a) a member who has taken anamator advance; or

(b) a member who has purchased anygood or commodities on credit or availedhimself of any services from the societyfor which charges are payable: and failsto repay the full amount of such anamator advance or pay the price of suchgoods or commodities or charges of such

service, after receipt of notice of demandby him from the concerned society orwithin thirty days from the date ofdelivery of goods to him or availing ofservices by him, whichever is earlier;

(iv) in the case of resource society theprinciple object of which is to provide creditfor non-agricultural purposes, a memberwho defaults the payment of threeconsecutive installments of the loangranted;

(v) in the case of co-operative housingsocieties, a member who defaults thepayment of dues to the society within threemonths from the date of service of noticein writing served by post under certificateof posting demanding the payment of dues;

(d) carries on business of the kindcarried on by the society, either in hisname or in the name of any member ofhis family or he or any member of hisfamily is a partner in a firm or a directorin a company which carried on businessof the kind carried on by the society;

Explanation.— For the purpose of thisclause, the expression “family” means a wife,husband, father, mother, brother, sister, son,daughter, son-in-law, or daughter–in-law; or

(e) is a salaried employee of the societyor holds any office of profit under thesociety; or

(f) has incurred any other disqua-lification under his Act or the rules madethereunder.

(2) A person shall cease to be a director ifsuch person incurs any of the disqualificationsspecified in sub-section (1) or—

(a) absents himself from threeconsecutive board meetings without leaveof absence;

(b) absents from two consecutivesgeneral meetings;

(c) is penalized under this Act.



831

74. Disqualification of all Directors of theBoard.— Notwithstanding anythingcontained in the foregoing section, all thedirectors of the board shall, be deemed tohave incurred disqualification for a period offive years for being chosen as directors andshall be ineligible to continue as directors ofthe society, if, during their term as directorsof the society,—

(a) they did not conduct the annualgeneral meeting within nine months ofclosure of the society’s accounting year;

(b) they did not conduct a special//requisitioned general meeting within thespecified time;

(c) they did not place the accounts forthe preceding co-operative year before thegeneral body at its annual general meeting;

(d) they willfully allow any of thedisqualified member of the Board ofDirectors to continue on the Board ofDirectors.

75. Power and functions of the Board ofDirectors.— (1) Without prejudice to thegenerality of the powers of the board undersection 69, the board shall have powers to—

(a) admit members;

(b) elect and remove the office bearers;

(c) accept or reject the resignation of thedirectors on the board;

(d) appoint and remove the chiefexecutive;

(e) fix the staff strength;

(f) frame policies concerning—

(i) business of the society;

(ii) recruitment and service conditionsof the staff;

(iii) mobilization, utilization andinvestment of various funds;

(iv) Maintenance of accountingsystems;

(v) Management information system;

(vi) Such other subjects and mattersnecessary for the effective performanceof the society;

(g) place the annual report, annualfinancial statements, annual plan andbudget for the approval for the generalbody;

(h) consider audit and compliance reportand place these before the general body;

(i) acquire or dispose of immovableproperty;

(j) take such other measures or do suchother acts as may be prescribed or requiredunder this Act.

(2) The chairperson shall be elected by theboard from among the elected members andshall, in accordance with the bye-laws—

(a) preside at meetings of the board andthe general body;

(b) have a casting vote in addition to hisnormal vote in the event of equality of voteson any matters being decided upon by theboard, except in the matter of election ofoffice bearers.

(c) exercise such other powers as maybe delegated by the board and specified inthe policies framed or resolutions adoptedby the board.

76. Power of Removal of Board of Directorsor its officer.— (1) A motion for expressinglack of confidence in the Board of Directorsor any of its officer may be made in a specialgeneral body meeting convened for thepurpose.


832

(2) The requisition for convening thespecial general body meeting as above shallnot be admissible unless moved in writingby not less one tenth of the total members orby atleast one tenth of the total number ofelected representative of a co-operativesociety. If the motion of no confidence iscarried by a simple majority of the memberspresent and voting, the Board of Directorsshall be removed and special general bodymeeting shall also elect an ad hoc committeeto take care of the affairs of the co-operativesociety which shall make arrangement to holdelections to the Board of Directors withinninety days of the date of the appointment ofad hoc committee.

77. Motion of no confidence againstofficers of societies.— (1) A President, Vice--President, Chairman, Vice-Chairman,Secretary, Treasurer or Director or any otherOfficer, by whatever designation called,who holds office by virtue of his election tothat office shall cease to be such President,Vice-President, Chairman, Vice-Chairman,Secretary, Treasurer or Director or any otherOfficer, as the case may be, if a motion of noconfidence is passed at a special meeting ofthe Board of Directors of management ofsociety by a simple majority of the totalnumber of the members of Board of Directorswho are for the time being entitled to attendand vote at any meeting of the Board ofDirectors and the office of such President,Vice-President, Chairman, Vice-Chairman,Secretary, Treasurer or Director or any otherOfficer, as the case may be, shall thereuponbe deemed to be vacant.

(2) The requisition for convening specialmeeting of the Board of Directors forconsidering such motion of no confidenceshall be signed by not less than one-third ofthe total number of members of the Board ofDirectors who are for the time being entitledto attend and vote at any meeting of the Boardof Directors and shall be delivered to theRegistrar:

Provided that no such requisition for aspecial meeting shall be made within a period

of six months from the date on which anyperson referred to in sub-section (1) hasentered upon his office.

(3) The Registrar shall, within seven daysfrom the date of receipt of requisition undersub-section (2), convene a special meeting ofthe Board of Directors which shall be heldnot later than fifteen days from the date ofissue of the notice of such meeting.

(4) The special meeting called undersub-section (3) shall be presided over by theRegistrar or any person authorized by him inthis behalf. The Registrar or such personshall, when presiding over the meeting of theBoard of Directors, have the same powers asthe President or Chairman when presidingover a Board of Director’s meeting has, butshall not have the right to vote.

(5) The meeting called under this sectionshall not be adjourned for any reason.

(6) Voting at the meeting shall be by raisingof hands. The names of the directors votingfor, and against the motion, shall be read inthe meeting and recorded in the minute bookof the special meeting of the Board ofDirectors:

Provided that if one-third of the directorsof the committee present so demand, thevoting shall be by secret ballot.

(7) If the motion of no confidence isrejected, no fresh motion of no confidenceshall be brought before the Board ofDirectors within a period of six monthsfrom the date on which the motion isrejected.

78. Removal of Board of Directors ormember thereof.— (1) If, in the opinion of theRegistrar, the Board of Directors of any societyor any member of such board persistentlymakes default or is negligent in theperformance of duties imposed on it or himby this Act or the Rules or the Bye-laws orcommits any act which is prejudicial to the



833

interest of the society or its members orwillfully disobeys directions issued by theRegistrar for the purposes of securing properimplementation of co-operative productionsand other development programmesapproved or undertaken by the StateGovernment or is otherwise not dischargingits or his functions properly, or incursdisqualification under section 74 of the Act,or where a situation has arisen in which theBoard of Directors or any member thereofceases or refuses to discharge its or hisfunctions and the business of society has oris likely to come to a standstill, or where anymember as the case may be, an opportunityof stating its or his objections, if any, within15 days from the date of issue of notice, andafter consulting the federal society to whichthe society is affiliated, by order,—

(a) remove the Board, and

(i) appoint a Board of Directors,consisting of three or more members ofthe society in its place; or

(ii) appoint one or more administrators,who need not be members of the societyand who may be individuals or acorporation to manage the affairs of thesociety for a period not exceeding twoyears specified in the order, which periodmay at the discretion of the Registrar, beextended from time to time, so howeverthat the total period does not exceed fouryears in the aggregate;

(b) remove the member and appoint anyperson as member of such Board ofDirectors in his place or direct the societyto elect or appoint a member in his place,for the remainder of the term of office ofthe member so removed.

(2) When a notice is issued against anycommittee or member under sub-section (1),if resignation from any office is tendered bythe board or member it shall not be valid oreffective, until two months have elapsed fromthe date of issue of the notice or until it is

permitted to be accepted by the Registrar,whichever is earlier.

(3) The Board of Directors or administratorso appointed shall subject to the control ofthe Registrar and to such instructions as hemay from time to time give have power toexercise all or any of the function of the Boardof Directors or of any officer of the societyand take all such action as may be requiredin the interest of the society.

The Board of Directors or administratorappointed as aforesaid shall, notwithstandinganything contained in the bye-laws havepower to call a special general meeting ofthe society to review or to reconsider thedecision or the resolution taken or passed atthe general meetings called by the previouscommittee or to endorse actions taken by it.

(4) The Registrar may fix the remunerationpayable to the administrators and anyexpenses of management which shall bepayable out of the funds of the society withinsuch time or at such intervals as the Registrarmay fix, and if such remuneration or expensesare not paid within such time or at intervalsthe Registrar may direct the person havingcustody of the funds of the society to pay tothe administrators such remuneration andexpenses in priority to any other payment(except land revenue any arrears of landrevenue or any sum recoverable from thesociety as arrears of land revenue) and heshall, so far as the funds in the credit of thesociety allow, comply with the orders of theRegistrar.

(5) If at any time during any period, orextended period referred to in sub-section (1),it appears to the Registrar that it is no longernecessary to continue to carry on the affairsof the society as aforesaid, the Registrar, mayby an order direct that the management shallterminate; and on such order being made,the management of the society shall handover to a new Board duly constituted.

(6) The Board of Directors or administratorshall, at the expiry of the termination of it or


834

his term of office, arrange for the constitutionof a new Board of Directors in accordancewith the bye-laws of the society:

Provided that, if a new Board of Directorsis not, or cannot be, constituted at the expiryof the term of office of the Board ofAdministrators, for any reason beyond thecontrol of the Board of Administrators, theterm of the office of the Board ofAdministrators, shall be deemed to beextended until the new Board of Directors dulyconstituted.

(7) All acts done or purported to be doneby the Board of Directors or Administratorduring the period the affairs of the societyare carried on by the Board of Directors oradministrator appointed under sub-section (1),shall be binding on the new Board of Directors.

79. Meetings and minutes.— (1) The bye--laws of the society shall specify the frequencyof and the manner in which the meetings ofthe board shall be held, so however that theboard shall meet atleast once in a threemonths.

(2) Every society shall in each co-operativeyear hold, in addition to any other meetingsor general meetings, its annual generalmeetings within nine months from the closeof the co-operative year and not more thanfifteen months shall elapse between the dateof annual general meetings and that of thenext.

(3) The board shall convene a generalmeeting within thirty days of requisition forconvening a general meeting signed by atleast one tenth of the members of the societyor one tenth of the representatives in casesociety having representative general bodyand any such requisition shall contain theproposed agenda and the reasons why themeeting is felt necessary.

(4) Where the board fails to convene theannual or special/requisitioned generalmeeting within due time, it shall be competentfor the Registrar to convene special//requisitioned or annual general meeting, as

the case may be.(5) Every society shall record in separate

minute books, minutes of all proceedings ofevery general meeting, every meeting ofBoard of Directors and every committeemeeting.

(6) The minutes of the board meetings sorecorded shall be signed by the person whochaired the said meeting, or by the chairmanof the succeeding meeting, and the minutesof the general meetings shall be signed bythe person who chaired the meeting withinthirty days from the date of meetings or inthe event of his unwillingness or in-ability,by a director duly authorised by the boardfor the purpose.

80. Handing over records and property tonew Chairman on election.— (1) On theelection of a new Board of Directors and itsChairman, the retiring Chairman in whoseplace the new Chairman is elected, shall handover charge of the office and all papers andproperty, if any, of the society in hispossession or any officer thereof, to the newChairman of the Board of Directors.

(2) If the retiring Chairman fails or refusesto hand over charge, or to hand over thepapers and property of the society asaforesaid, the Registrar, or any personauthorised by him in this behalf, may, by orderin writing, direct him to forthwith handoversuch charge and property.

(3) If the retiring Chairman to whom adirection has been issued as aforesaid doesnot comply with such direction, he shall, onconviction, be punished with simpleimprisonment which may extend to onemonth, or with fine which may extend to fivethousand rupees, or with both and theRegistrar may on the retiring Chairman’sfailure to comply with such direction, mayorder for seizing the records and propertyand handing it over to the new Chairman.”

81. Power to seize the records, etc.— (1)Where the Registrar is satisfied that the



835

books and records of a society are likely to besuppressed, tampered with or destroyed,or the funds and property of a society arelikely to be misappropriated or misapplied,the Registrar or the person authorized by himin this behalf, may apply to the ExecutiveMagistrate within whose jurisdiction thesociety is functioning for seizing and takingpossession of the records and property of thesociety.

(2) On receipt of an application undersub-section (1), the Executive Magistrate mayauthorize any police officer, not below the rankof a inspector, to enter and search any placewhere the records and property are kept orlikely to be kept, and to seize them and handover possession thereof to the Registrar orthe person authorized by him, as the casemay be.

82. Acts of co-operative society not to beinvalidated by certain defects.— No act of aco-operative society or of any board or of anyofficer shall be deemed to be invalid by reasononly of the existence of any defect inprocedure or in the constitution of theco-operative society or of the board or in theappointment or election of an officer or onthe ground that such officer was disqualifiedfor his appointment.

83. Directions by the Registrar for successful

conduct of business.— The Registrar may

from time to time issue such directions or

directives to a co-operative society or a class

of co-operative societies as he considers

necessary for successful conduct of business

and on all matters incidental thereto and such

directions or directives shall be binding on

them:

Provided that this power shall be limited toco-operative society with Government equityof fifty-one percent or more.

84. Chief Executive.— (1) There shall beChief Executive, by whatever designationcalled, of every society to be appointed by

the board.(2) The Chief Executive shall be a member

of the board and of the committee as may beconstituted under the provisions of bye-laws.

(3) Where the Government has subscribedto the extent of more than fifty percent of theshare capital of a society, it shall be obligatedon such society to seek prior approval of theRegistrar to the appointment of the ChiefExecutive.

85. Powers and function of chiefexecutives.— The Chief Executive shallexercise the power and discharge thefunctions specified below, namely:—

(a) day-to-day management of thebusiness of the society;

(b) operating the accounts of the societyand be responsible for making arrangementfor safe custody of the cash;

(c) signing on the documents for and onbehalf of the society;

(d) making arrangement for the propermaintenance of various books and recordsof the society and for the correctpreparation and timely submission of theperiodical statement and returns inaccordance with the provisions of this Act,the Rules and the bye-laws;

(e) convening meetings of the generalbody of the society, the board and the othercommittees constituted by the board andmaintaining proper record of suchmeetings;

(f) making appointments to posts in thesociety in accordance with the directionsof the board;

(g) assisting the board in the formulationof policies, objectives and planning;

(h) appraising the board with periodicalinformation necessary for the operations


836

and functions of the society;(i)performing such other duties and

exercising such other powers as may beprescribed or as may be specified in thebye-laws of the society.

86. Qualification of Chief Executive Officersor any other officers.— The qualification forthe appointment of the chief executive officersor any other officer of a society shall be suchas may be specified in the bye-laws.

87. Government’s power to give directionsin the interest of co-operative movement.—(1) If the Government, on receipt of a reportfrom the Registrar or otherwise, is satisfiedthat in the interest of Co-operative movementor for the purpose of securing properimplementation of cooperative production andother development programmes approved orundertaken by the Government or to securethe proper management of the business ofthe society generally, or for preventing theaffairs of the society being conducted in amanner detrimental to the interest of themembers, or of the depositors or the creditorsthereof, it is necessary to issue directions toany class of societies in particular, theGovernment may issue directions to themfrom time to time, and all societies or thesociety concerned as the case may be, shallbe bound to comply with such directions.

In case an Urban Credit Society/societiesor society whose major operations are toaccept deposits and advances fails to adhereto the Financial, Administrative, technical andlegal norms as prescribed by the Registrarfrom time to time, the Registrar on the basisof Audit Report or by conducting an enquiryor inspection into the affairs of such societyby the person authorized by him in this behalf,issue the direction to such society prohibitingto accept any type of deposit and advanceany type of loans and also to stop anytransaction relating to acquisition or disposalof the movable or immovable property, tillsuch time as may be stipulated in order.

(2) The Government may modify or cancel

any directions issued under sub-section (1),and in modifying or cancelling such directionsmay impose such conditions as it may deemfit.

(3) Where the Registrar is satisfied that anyperson was responsible for not complyingwith any directions, the Registrar may, byorder:—

(a) If the person is a member of the Boardof the society, remove the member from theBoard and appoint any other person asmember of the Board for the remainder of theterm of his office and declare him to bedisqualified to be such member for a periodof six years from the date of the order;

(b) If the person is an employee of thesociety, direct the Board to remove suchperson from employment of the societyforthwith, and if any member or members ofthe Board, without any good reason orjustification, fail to comply with this order,remove the members and appoint any otherperson as members and declare themdisqualified as provided in clause (a):

Provided that, before making any orderunder this sub-section, the Registrar shallgive a reasonable opportunity of being heardto the person or persons concerned andconsult the federal society to which thesociety is affiliated.

(4) Any order made by the Registrar underthis Section shall be final.

CHAPTER VIII

Accounts, Audit, Inspection, Inquiry & Surcharge

88. Accounts and records.— (1) Everysociety shall maintain at its office thefollowing accounts, records and documents,namely:—

(a) copy of its registered bye-laws withamendments made from time to time;

(b) the minute books of the Board ofDirectors meetings and committee



837

meetings:(c) the minute book of the general

meetings;

(d) accounts of all sums of moneyreceived and expended by the society;

(e) accounts of all purchases and sales ofgoods made by the society;

(f) accounts of all assets and liabilities ofthe society;

(g) a register showing memberwisepatronage of various services provided bythe society;

(h) an up-to-date register of all members;

(i) copies of the annual statement ofaccounts, directors report and auditorsreport;

(j) all such other accounts, records anddocuments as may by required by this Actor other laws.

(2) The books of accounts and other recordsshall be open for perusal by any directorsduring business hours.

(3) The books of accounts of every society,together with supporting records andvouchers, shall be preserved for such periodas may be prescribed subject to any otherlaws for the time being in force.

(4) The paid executive of every co-operativesociety by whatsoever designation he iscalled, or the president/chairperson or anyother office bearer as provided in the bye--laws of the co-operative society, if there isno such paid executive for that co-operativesociety, shall be bound to keep, maintain orcause to be maintained such accounts andbooks relating to that co-operative society insuch manner as may be prescribed and shallbe responsible for the correct up-to-datemaintenance of such accounts and books, forproducing or causing production of the samewhen called for in connection with audit,

inspection or inquiry.(5) If such accounts and books are not

maintained, the Registrar may direct theperson who is responsible to bring theaccounts and books up-to-date to make themup-to-date, and he shall be bound to complywith such direction within the periodspecified therein.

(6) If the person fails to comply with thedirection under sub-section (2), the Registrarmay ask the Board of the co-operative societyfor taking action against such personincluding suspension for such period, ifnecessary, as he may consider necessary andauthorize any person to take action forbringing such accounts and books up-to-dateat the expense of the co-operative society andsuch expenses shall be recoverable from theco-operative society as if it were an arrear ofland revenue.

(7) Where the Registrar takes action undersub-section (6), the Registrar may call uponthe person concerned whom he considers tobe responsible for not complying with thedirection made under sub-section (6) andafter giving such person an opportunity ofbeing heard, may require him to pay to theco-operative society the expenses paid orpayable by him to the Government as a resultof his failure to take action.

(8) Every society, immediately after closeof the financial year, shall prepare the Receiptand Payment statements/Trial Balance//Trading/Manufacturing Accounts, Profit andLoss Account/Income and ExpenditureAccount and Balance Sheet and shall submitthe same to the Registrar, within a period of45 days prior to filing the returns as specifiedunder section 68.

89. Audit .— (1) The Registrar shallconstitute a panel of auditors from among thechartered accountants within the meaningof the Charter Accountants Act, 1949(XXXVIII of 1949) and who are fellowmembers of the Institute of CharteredAccountants of India, holding certificate ofpractice, who have their registered address


838

within the State of Goa, and retired officers ofthe Government, who are holding higherdiploma in co-operation or having workingexperience of ten years in co-operative Audit.

(2) The Registrar shall appoint auditors toaudit the account of State Aided Societies,and other societies as may be notified fromtime to time, from among the departmentalauditors or the panel of auditors:

“Provided that the Registrar on his own oron the request of any society which is notnotified under sub-section (2) may conductthe audit through the departmental auditors.

(3) A mutually aided society which is notnotified under sub-section (2) above shallappoint an auditor from among the panel ofauditors by resolution in the annual generalmeeting for the immediate succeeding co-op.year and such appointment shall be valid tillthe conclusion of next annual generalmeeting:

Provided that the first auditor to a newlyregistered society shall be appointed fromamong the said panel by the Registrar of thesociety and such appointment shall be validtill the conclusion of the first annual generalmeeting:

Provided, further that no society shallappoint same auditor consequently for morethan 2 years.

(4) The remuneration of all auditors fromthe panel of auditor shall be fixed by theRegistrar.

(5) The auditor shall be given notice ofevery general meeting and will be entitled toattend the meeting.

(6) Where a mutually aided society fails toget its accounts audited within nine monthsfrom the end of the co-operative year, theRegistrar shall be empowered to appoint theauditor and get the accounts audited.

(7) If the Registrar finds it necessary or

expedient to re-audit any or all accounts ofthe society, he may, by order, direct suchre-audit and the provisions of this Act,applicable to audit of accounts of society, shallapply to such re-audit.

90. Powers and duties of the auditor.— (1)Every auditor of a society shall have right toaccess at all times to the books of accountsand vouchers of the society, whethermaintained at the head office or at thebranches or elsewhere, and shall be entitledto require from the society such informationand explanations as the auditor may thinknecessary for the performance of his dutiesas an auditor.

(2) The auditor shall, after examination ofthe books of accounts and records, report:—

(a) Whether the society has maintainedproper books of accounts and records asrequired by this Act;

(b) Whether he has obtained all theinformation and explanations, which to thebest of his knowledge and belief werenecessary for the purpose of his audit;

(c) Whether the final statement ofaccounts prepared are in agreement withthe books of accounts and recordsmaintained;

(d) Whether the final statement ofaccounts gives true and fair view,—

(i) in the case of balance sheet, of thestate of affairs of the society as at theend of the co-operative year;

(ii) in the case of income andexpenditure account, of the surplus ordeficit for the co-operative year.

(e) Whether report of the branchauditors, not audited by him has beenconsidered, and how he has dealt with thesame in preparing his report.

(3) The auditor of the society shall alsoexamine the following before he submits his



839

report,—(a) Whether a society has maintained

proper records showing particularsincluding quantitative details and situationof fixed assets;

(b) Whether the fixed assets have beenperiodically physically verified by themanagement of the society and thediscrepancy, if any, is considered in thebooks;

(c) Whether loans and advances madeby the society on the basis of security havebeen properly secured and whether theterms and conditions are not prejudicial tothe interest of the society;

(d) Whether any personal expenses havebeen charged to income and expenditureaccount;

(e) Whether capital expenses have beencharged to income and expenditureaccount;

(f) Whether any expenditure incurredby the society is not in accordancewith or not in consonance with itsobjectives;

(g) Whether the society has utilised thefinancial assistance granted by theGovernment or any Governmentundertakings, for the purpose it isgranted;

(h) Whether there are adequate internalcontrol procedures, commensurate withthe size of the society and nature of itsbusiness;

(i) Whether any purchases and sales

are made during the year exceeding

Rs. 50,000/- in aggregate from any relative

of any director or any company or firm in

which directors are interested;

(j) Whether any manpower requirementis assessed and recruited as per the

recruitment rules.(4) The auditor of the society shall submit

a copy of the audit report together with theaccounts to the Registrar in such form as maybe specified by the Registrar, within thirtydays from the date of the audit.

(5) On completion of the statutory audit,the auditor shall award audit classification tothe society whose accounts he has auditedin accordance with the instructions issuedby the Registrar from time to time.

(6) The Registrar or the person authorizedby him to conduct the audit may summonany person in possession or responsible forthe custody of any such books, accounts,papers, documents to produce the same atthe headquarters of the society or any branchthereof.”

(7) The auditor shall discuss his findingsduring the course of audit with the Board ofDirectors and issue certificate to the effectthat he has duly notified his findings//observations to the Board of Directors of thesociety.

91. Rectification of defect in accounts.— Ifthe result of the audit held under the lastpreceding section discloses any defects in theworking of a society, the society shall withinthree months from the date of receipt of theaudit report, explain to the Registrar thedefects or the irregularities pointed out bythe auditor, and take steps to rectify thedefects and remedy irregularities, and reportto the Registrar the action taken by itthereon. The Registrar may also make anorder directing the society or its officer totake such action, as may be specified in theorder to remedy the defects, within the timespecified therein. Where the societyconcerned is a member of a federal society,such order shall be made after consultingthe federal society.

92. Inquiry or Inspection of societies.— (1)The Registrar may, on his own motion,himself, or by a person duly authorized byhim in writing in this behalf, or on the request


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made by a creditor or federal society or notless than one third of the total number ofmembers of the Board of Directors or not lessthan one fifth of the total number of members,of a society, undertake inspection of asociety and authorize any person, by orderin writing, to make an inspection and inquiryinto the constitution, working and financialcondition of such society and submit a reportthereon.

(2) Where a complaint is made by amember of society in writing about the affairsof a society or Board of Directors, theRegistrar or any person authorized by him inthis regard who shall be not below the rankof Deputy Registrar is prima facie satisfied,after affording an opportunity of being heard,that an inquiry is required to be instituted,he may, order an inquiry to be made by aperson not below the rank of Co-operativeOfficer or special auditor.

(3) For the purpose of inspection/inquiryunder sub-sections (1) and (2), the personconducting inspection or inquiry shall, at alltimes, have access to all books of accounts,papers, vouchers, securities, stock and otherdocuments of that society and may, in theevent of serious irregularities discoveredduring inquiry and inspection, take the sameinto custody and report to the Registrar. Heshall have power to verify the cash balance ofthe society. The Registrar may call a meetingof the Board of Directors or a general bodymeeting of the society, as he may deem fit.

(4) Every officer or member of Board ofDirectors shall furnish such information withregard to working of the society as theRegistrar or the person making inquiry orinspection may require.

(5) A copy of the report of the inquiry and//or inspection carried out under this sectionshall be forwarded to the society withina period of ninety days from the date ofcompletion of such inquiry and/or inspection.

93. Cost of re-audit, inspection, inquiry.—

Where a re-audit held under section 89 or aninspection or an inquiry is held under section92, the Registrar may apportion the costs orsuch part of the costs as he may think fit,between the co-operative society, themembers or creditor demanding re-audit oran inspection or an inquiry if any and theofficers or former officers and the membersor past members of the co-operative societyagainst whom the re-audit, inspection orinquiry is ordered:

Provided that—

(a) no order of the apportionment of thecosts shall be made under this section unlessthe co-operative society or the person liableto pay the costs thereunder has hadreasonable opportunity of being heard;

(b) the Registrar shall state in writing underhis own hand the grounds on which the costsare apportioned;

(c) no expenditure from the funds of asociety shall be incurred for the purpose ofdefraying any costs in support of any appealpreferred by any person other than the societyagainst an order made under the foregoingsub-section.

94. Recovery of cost.— Any sum awardedby way of costs under section 93 may berecovered, as if it were an arrears of landrevenue.

95. Registrar to bring defects disclosed inre-audit, inspection or inquiry.— TheRegistrar shall draw the attention of theco-operative society to the defects noticed inevery re-audit conducted under section 89or inquiry/inspection held under section 92and if the co-operative society is affiliated tofederal co-operative society also draw theattention of that federal co-operative societyand may make an order directing theco-operative society or its officers to take suchaction and within such time as may bespecified therein to remedy such defects.

96. Power of the Registrar to assess



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damages against delinquent promoters etc.—(1) If in the course of an audit, re-audit,inspection, inquiry or the winding up of aco-operative society, it is found that anyperson who is or was entrusted with theorganization or management of suchco-operative society or who is or has at anytime been an officer or an employee of theco-operative society had made any paymentcontrary to this Act, the rules or the bye--laws or has caused any deficiency in theassets of the co-operative society by breachof trust or willful negligence or hasmisappropriated or fraudulently retained anymoney or other property belonging to suchco-operative society, the Registrar may, of hisown motion, or on the application of the Board,liquidator or any creditor, inquire into theconduct of such person.

(2) Where an inquiry is made undersub-section (1), the Registrar, or the personauthorised by him may, after giving theperson concerned an opportunity of beingheard make an order requiring him to repayor restore the money or property or any partthereof with interest at such rate or to paycontribution and costs or compensation tosuch extent as the Registrar, or the personauthorised by him may consider just andequitable.

(3) Any sum ordered under this section tobe repaid to co-operative society or recoveredas a contribution to its assets may berecovered on a requisition being made in thisbehalf as prescribed in the rules.

(4) This section shall apply notwithstan-ding that such person or officer or servanthave incurred criminal liability by this Act.

97. Power to summon and examinedocuments and persons, etc.— (1) TheRegistrar, or the auditor or any personauthorized by either of them to exercise anypowers under this Act shall at all reasonabletimes have free access to the books, accounts,documents, records, securities, cash andother properties belonging to, or in thecustody of the co-operative society and may

summon any person in possession of, orresponsible for the custody of any such books,accounts, documents, records, securities,cash or other properties, to produce all orany of them at any place at the headquartersof the co-operative society or any branchthereof.

(2) The Registrar or any other subordinateofficial authorized by him to exercise anypowers under this Act—

(a) may summon any person who, hehas reason to believe has knowledge of anyof the affairs of the co-operative society toappear before him at the headquarters ofthe co-operative society or any branchthereof or at any other place specified bythe Registrar, and may examine that personon oath;

(b) may seize the books, accounts ordocuments belonging to, or in the custodyof, the co-operative society, if he considersthat such seizure is necessary to ensuresafety of such books, accounts ordocuments, and shall give the person fromwhose custody the books, accounts ordocuments have been seized, a receipt forthe same:

Provided that the books, accounts ordocuments so seized shall be retained by himso long as may be necessary:

Provided further that the books, accountsor documents so seized shall not be retainedfor more than sixty days at a time exceptwith the permission of the next higherauthority.

CHAPTER-IX

Disputes and Arbitration

98. Dispute.— (1) Notwithstanding any-thing contained in any other law for the timebeing in force, any dispute touching theconstitution, elections of the Board of Directorsand its office bearers, conduct of generalmeetings, management or business of a


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society shall be referred by any of the partiesto the dispute, or by a federal society to whichthe society is affiliated, or by a creditor of thesociety, as the case may be, to the Registrar,if both the parties thereto are one or other ofthe following:—

(a) a society, it’s Board, any past Board,any past or present officer, any past orpresent agent, any past or present servantor nominee, heir or legal representative ofany deceased officer, deceased agent ordeceased servant of the society, or theLiquidator of the society;

(b) a member, past member or a personclaiming through a member, past memberor a deceased member of a society, or asociety which is a member of the society;

(c) a person, other than a member of thesociety, who has been granted a loan bythe society, or with whom the society hasor had transactions and any personclaiming through such a person;

(d) a surety of a member, past member,or a deceased member, or a person otherthan a member who has been granted aloan by the society whether such a suretyis or is not a member of the society;

(e) any other society, or the Liquidator ofsuch a society.

(2) When any question arises whether forthe purposes of the foregoing sub-section amatter referred to for decision is a dispute ornot, the question shall be considered by theRegistrar, whose decision shall be final.

(3) Save as otherwise provided undersection 105, no Court shall have jurisdictionto entertain any suit or other proceedingsin respect of any dispute referred to insub-section (1).

Explanation 1.— A dispute between theLiquidator of a society and the members ofthe same society shall not be referred tothe Registrar under the provisions of

sub-section (1).Explanation 2.— For the purpose of this

section, a dispute shall include,—

(i) a claim by or against a society for anydebt or demand due to it from a memberor due from it to a member, past memberor the nominee, heir or legal representativeof a deceased member or servant oremployee whether such a debt or demandbe admitted or not;

(ii) a claim by a surety for any sum ordemand due to him from the principalborrower in respect of a loan of a societyand recovered from the surety owing tothe default of the principal borrower,whether such a sum or demand beadmitted or not;

(iii) a claim by a society for any losscaused to it by a member, past member ordeceased member, by any officer, pastofficer or deceased officer, by any agent,past agent or deceased agent, or by anyservant, past servant or deceased servant,or by its Board of Directors, past or present,whether such loss be admitted or not;

(iv) a refusal or failure by a member, pastmember or a nominee, heir or legalrepresentative of deceased member todeliver possession to a society of land orany other asset resumed by it for breach ofconditions of the assignment.

99. Powers of an apex co-operative bank toproceed against members of a society forrecovery of moneys due to it from suchsociety.— (1) If any society is unable to payits debts to Apex Bank by reasons of any ofits members committing default in thepayment of the moneys due by them to thesociety, the apex co-operative bank maydirect such society to refer to the Registrarunder section 98, the dispute between thesociety and defaulting members thereof:

Provided that if such society fails to referthe dispute as aforesaid within a period of



843

ninety days from the date of receipt of suchdirection, the apex co-operative bank itselfmay refer to the Registrar the said dispute:

Provided further that, in case of a reference,the bye-laws of the defaulting society shallapply as if all references to the society or itsBoard of Directors in the said bye-laws werereferences to the apex co-operative bank.

(2) Where a apex co-operative bank hasobtained a decree or award against anysociety in respect of the moneys due to it bysuch society, the apex co-operative bank mayproceed to recover such moneys firstly fromthe assets of that society and secondly fromthe members of that society to the extent ofthe moneys due by them to that society.

100. Limitation.— (1) Notwithstanding any-thing contained in the Limitation Act, 1963(Central Act 36 of 1963), but subject to thespecific provisions made in this Act, theperiod of limitation in the case of a disputereferred to the Registrar under section 98shall,—

(a) when the dispute relates to therecovery of any sum, including interestthereon, due to a society by a memberthereof, be computed from the date onwhich such member dies or ceases to bea member of the society;

(b) when the dispute is between asociety or its Board of Directors, and anypast Board of Directors, any past or presentofficer, or past or present agent, or past orpresent servant or the nominee, heir orlegal representative of a deceased officer,deceased agent or deceased servant of thesociety or a member, or past member orthe nominee, heir or legal representativeof a deceased member, and when thedispute relates to any act or omission onthe part of the either party to the dispute,be six years from the date on which theact or omission with reference to whichthe dispute arose, took place;

(c) when the dispute is in respect of

any matter touching the constitution,management or business of a society whichhas been ordered to be wound up undersection 125 or in respect of which anominated Board of Directors or anadministrator has been appointed undersection 72 or 78, be six years from the dateof the order issued under section 125, orsection 72 or 78 as the case may be;

(d) when the dispute is in respect of anelection Board or Board member or anoffice-bearer of the society, be one monthfrom the date of the declaration of the resultof the election.

(2) The period of limitation in the case ofany other dispute except those mentioned inthe foregoing sub-section which are requiredto be referred to the Registrar under the lastpreceding section shall be regulated by theprovisions of the Limitation Act, 1963 (CentralAct 36 of 1963), as if the dispute is a suit andthe Registrar a Civil Court.

(3) Notwithstanding anything contained insub-sections (1) and (2), the Registrar mayadmit a dispute after the expiry of thelimitation period, if the applicant satisfies theRegistrar that he has sufficient cause for notreferring the dispute within such period andthe dispute so admitted shall be disputewhich shall not be barred on the ground thatthe period of limitation had expired.

101. Settlement of disputes.— (1) If theRegistrar is satisfied that any matter referredto him or brought to his notice is a disputewithin the meaning of section 98, theRegistrar shall, subject to the rules, decidethe dispute himself or refer it for disposal toa nominee, or a Board of Nominees, or officersof the society as specified under section 147(2) appointed by the Registrar.

(2) Where any dispute is referred underthe foregoing sub-section for decision to theRegistrar’s nominee or Board of Nominees,the Registrar may, at any time, for reasons tobe recorded in writing, withdraw suchdispute from his nominee or Board of


844

Nominees, and may decide the disputehimself, or refer it again, for decision to anyother nominee, or Board of Nominees,appointed by him.

(3) Notwithstanding anything contained insection 98, the Registrar may, if he thinks fit,suspend proceedings in regard to anydispute, if the question at issue between asociety and a claimant or between differentclaimants, is one involving complicatedquestions of law and fact, until the questionhas been tried by a regular suit instituted byone of the parties or by the society. If anysuch suit is not instituted within two monthsfrom the date of the Registrar’s ordersuspending proceedings, the Registrar shalltake action as is provided in sub-section (1).

102. Procedure for settlement of disputesand power of Registrar, his nominee or Boardof Nominees.— (1) The Registrar, or hisnominee or Board of Nominees, hearing adispute under the last preceding section shallhear the dispute in the manner prescribed,and shall have power to summon and enforceattendance of witnesses including the partiesinterested or any of them and to compel themto give evidence on oath, affirmation oraffidavit, the production of documents by thesame means and as far as possible in thesame manner, as is provided in the case of aCivil Court by the Code of Civil Procedure,1908 (5 of 1908).

(2) Except with the permission of theRegistrar or his nominee or Board ofNominees, as the case may be, no party shallbe represented at the hearing of a dispute bya legal practitioner.

(3) (a) If the Registrar or his nominee orBoard of Nominees is satisfied that a person,whether he be a member of the society ornot, has acquired any interest in the propertyof a person who is party to a dispute, he mayorder that the person who has acquired theinterest in the property may join as a partyto the dispute, and any decision that may bepassed on the reference by the Registrar orhis nominee or Board of Nominees shall be

binding on the party so joined, in the samemanner as if he was an original party to thedispute.

(b) Where a dispute has been instituted inthe name of the wrong person or where allthe defendants have not been included, theRegistrar or his nominee or Board ofNominees may, at any stage of the hearing ofthe dispute, if satisfied that the mistake wasbonafide, order any other person to besubstituted or added as a plaintiff or adefendant, upon such terms as he thinks just.

(c) The Registrar, his nominee or Board ofNominees may, at any stage of the proceeding,either upon or without the application ofeither party, and upon such terms as mayappear to the Registrar, his nominee or Boardof Nominees, as the case may be, to be just,order that the name of any party improperlyjoined whether as plaintiff or defendant, bestruck out, and that the name of any personwho ought to have been joined whether asplaintiff or defendant or whose presencebefore the Registrar, his nominee or Board ofNominees, as the case may be, may benecessary in order to enable the Registrar,his nominee or Board of Nominees effectuallyand completely to adjudicate upon and settleall the questions involved in the dispute, beadded.

(d) Any person who is a party to thedispute and entitled to more than one reliefin respect of the same cause of action mayclaim for all or any of such reliefs, but if heomits to claim for all such reliefs, he shall notforward a claim for any relief so omitted,except with the leave of the Registrar, hisnominee or Board of Nominees, as the casemay be.

103. Attachment before award andinterlocutory orders.— (1) Where a disputehas been referred to the Registrar or hisnominee or Board of Nominees under section98, or under section 101, the Registrar or hisnominee or Board of Nominees, if satisfied onenquiry or otherwise that party to suchdispute with intent to defeat, delay or



845

obstruct the execution of any award orcarrying out of any order that may bemade,—

(a) is about to dispose of whole or anypart of his property, or

(b) is about to remove the whole or anypart of his property from the jurisdiction ofthe Registrar, may, unless adequatesecurity is furnished, direct conditionalattachment of the said property, and suchattachment shall have the same effect as ifmade by a competent Civil Court.

(2) Where the Registrar, his nominee orBoard of Nominees direct attachment ofproperty under the foregoing sub-section, heshall issue a notice calling upon the personwhose property is so attached to furnishsecurity which he thinks adequate within aspecified period and if the person fails toprovide the security so demanded, theRegistrar or his nominee or Board ofNominees may confirm the order and, afterthe decision in the dispute or the completionof the proceedings referred to in the foregoingsub-section, may direct the disposal of theproperty so attached towards the claim ifawarded.

(3) Attachment made under this sectionshall not affect the rights, subsisting prior tothe attachment of the property, of person notparty to the proceedings in connection withwhich the attachment is made, or bar anyperson holding a decree against the personwhose property is so attached from applyingfor the sale of the property under attachmentin execution of such decree.

(4) The Registrar, his nominee or Board ofNominees, as the case may be, may, in orderto prevent the ends of justice being defeated,make such interlocutory orders pendingthe decision in a dispute referred to insub-section (1) as may appear to be just andconvenient.

104. Decision of Registrar or his nominee

or Board of Nominees.— When a dispute isreferred to arbitration, the Registrar or hisnominee or Board of Nominees may, aftergiving a reasonable opportunity to the partiesto the dispute to be heard, make an awardon the dispute as far as possible within oneyear, on the expenses incurred by the partiesto the dispute in connection with theproceedings, and the fees and expensespayable to the Registrar or his nominee or,as the case may be, Board of Nominees. Suchan award shall not be invalid merely on theground that it was made after the expiry ofthe period fixed for deciding the dispute bythe Registrar, and shall, subject to appeal orreview or revision, be binding on the partiesto the dispute.

105. Appeal against decision of Registraror his nominee or Board of Nominees.— Anyparty aggrieved by any decision of theRegistrar or his nominee or Board ofNominees under the last preceding section,or an order passed under section 103 may,within two months from the date of thedecision or order, appeal to the Tribunal.

106. Money how recovered.— Every orderpassed by the Registrar or his nominee orBoard of Nominees under sections 96, 103 orsection 104, every order passed in appealunder the last preceding section,—

(a) on a certificate signed by theRegistrar be deemed to be a decree of aCivil Court and shall be executed in thesame manner as a decree of such Court;or

(b) be executed according to the law andunder the rules for the time being in forcefor the recovery of arrears of land revenue:

Provided that, any application for therecovery in such manner of any such sumshall be made to the Collector, and shall beaccompanied by a certificate signed by theRegistrar, or by any Assistant Registrar asduly authorized by the Registrar in this behalf.Such application shall be made within twelve


846

years from the date of the order.107. Private transfer of property made after

issue of certificate void against society.— Anyprivate transfer or delivery of, orencumbrance or charge on, property, madeor created after the issue of certificate of theRegistrar, or Assistant Registrar, as the casemay be, under section 106 shall be null andvoid as against the society on whoseapplication the said certificate was issued.

108. Transfer of property which cannot besold.— (1) When in any execution of an ordersought to be executed under section 110, anyproperty cannot be sold for want of buyers,on conducting three consecutive auctions, ifsuch property is in occupancy of thedefaulter, or of some person in his behalf, orof some person claiming under a title createdby the defaulter, subsequently to the issue ofthe certificate of the Registrar, Liquidator orthe Assistant Registrar, under clause (a) or(b) of section 110, the Court or the Collectoror the Registrar, as the case may be, may,notwithstanding anything contained in anylaw for the time being in force, direct thatthe said property or any portion thereof, shallbe transferred to the society which hasapplied for the execution of the said order, inthe manner prescribed.

(2) Where property is transferred to thesociety under the foregoing sub-section, orwhere property is sold under section 110,the Court, the Collector or the Registrar, asthe case may be, may, in accordance withrules, place the society or the purchaser, asthe case may be, in possession of the propertytransferred or sold.

(3) Subject to such rules as may bemade in this behalf, and to any rights,encumbrances, charges or equities lawfullysubsisting in favour of any person, suchproperty or portion thereof shall be heldunder sub-section (1) by the said society onsuch terms and conditions as may be agreedupon between the Court, the Collector or theRegistrar, as the case may be, and the saidsociety subject to the general or specialorders of the State Government, the Collector

or the Registrar may delegate to an officer,not below the rank of the Deputy Collector orthe Assistant Registrar, power exercisable bythe Collector or the Registrar under thissection.

109. Recovery of any sum advanced by aresource society.— (1) Notwithstandinganything contained in sections 98 and 110,on an application made by a resource societyfor the recovery of arrears of any sumadvanced by it to any of its members and onits furnishing statement of accounts in respectof such arrears, the Registrar may aftermaking such inquiries as he may deem fit,grant a certificate for the recovery of theamount stated therein to be due as arrears.

(2) Where the Registrar is satisfied that aresource society has failed to take actionunder the foregoing sub-section in respect ofarrears of any sum advanced by it to any ofit’s members, the Registrar may on his ownmotion, after making such inquiries as he maydeem fit, grant a certificate for the recoveryof the amount stated therein to be due asarrears.

(3) A certificate granted by the Registrarunder sub-section (1) or sub-section (2) shallbe final and conclusive proof of the arrearsstated to be due therein and the same shallbe recoverable according to the law for thetime being in force for the recovery of arrearsof land revenue.

110. Execution of awards and Registrar’spowers to recover certain sums by attachmentand sale of property.— (1) The Registrar orany officer subordinate to him or an officer ofa Federal Institution or an officer appointedunder section 147(2) of this Act dulyempowered by him in this behalf, maysubject to such rules as may be made by theState Government, but without prejudice toany other mode of recovery provided by orunder this Act, recover,—

(a) any amount due under a decreeor order of Civil Court obtained by a



847

society;(b) any amount due under a decision,

award or order of the Registrar, Arbitratoror Liquidator or Tribunal;

(c) any sum awarded by way of costsunder this Act;

(d) any sum ordered to be paid underthis Act as a contribution to the assets ofthe society together with interest, if anydue on such amount or sum and costs ofprocess by the attachment and sale or bysale without attachment of the property ofthe person against whom such decree,decision, award or order has been obtainedor passed.

(2) The Registrar or the officer empoweredby him shall be deemed, when exercising thepowers under the foregoing sub-section orwhen passing any orders on any applicationmade to him for such recovery, to be a CivilCourt for the purpose of Article 136 of theFirst Schedule to the Indian Limitation Act,1963 (Central Act 36 of 1963).

CHAPTER - X

Special Provisions for Co-operativeHousing Societies

111. Application.— This Chapter shall applyto:—

(a) all co-operative housing societiesregistered or deemed to be registeredbefore the commencement of the GoaCo-operative Societies Act, 2009, or underany law relating to co-operative societiesin force in the State of Goa, and theregistration of which has not beencancelled before such commencement, and

(b) all co-operative housing societiesregistered or deemed to be registered underthis Act.

112. Definitions.— In this Chapter, unlessthe context otherwise requires,—

(a) “allottee” means a member of a

co-operative housing society to whom a plotof land, or site or a tenement in a buildingheld by it, is allotted by the society;

(b) “building fund” means a fund createdby the collection of contribution frommembers for—

(i) the purchase and or acquisition ofland; or

(ii) the land development; or

(iii) the construction of a dwelling unitor building; or

(iv) the purpose of providing any othercommon amenities to achieve theobjectives of the society.

(c) “building maintenance fund” meansa fund created by collection of thecontributions from its members at such rateas may be specified in the bye-laws forcarrying out repairs or structural additions,improvements or alterations to the propertyof the co-operative housing society whichare likely to increase the life of suchproperty and to maintain the property ofthe said society in good and habitablecondition at all times.

(d) “commercial unit” means office, shop,godown, garage or such other premisesused for commercial or industrial purpose;

(e) “co-operative housing society” meansa society,—

(i) registered or deemed to beregistered as a co-operative housingsociety under any law relating toco-operative societies in force in theState of Goa;

(ii) the principal object of which is toprovide its members open plots, dwellingunits or commercial units (whether in amulti-storeyed building or otherwise)and in case where open plots or dwellingunits are already acquired, to provide


848

its members common amenities andservices including services relating tothe arrangement of finances facilitatingconstruction of dwelling units in orderto solve their needs of dwelling unitsthrough mutual aid in accordance withthe co-operative principles, and includesa co-ownership housing society,co-par tnership housing society,co-operative housing maintenancesociety, and any other co-operativesociety of like nature and purpose;

(f)“co-ownership housing society”means a society in which the land is heldeither on lease-hold or free-hold basis bythe society and the houses constructed onit, are owned or to be owned by itsmembers;

(g) “co-partnership housing society”means a society in which land andbuildings are held by the society on lease--hold or free-hold basis and members areallotted flats, tenements or such otherpremises in such buildings with a right tooccupy the same in accordance with thebye-laws;

(h) “co-operative house mortgagesociety” means a credit society which lendsmoney to its members for a certain periodof time against certain securities for theconstruction of houses for their dwellings;

(i) “co-operative housing maintenancesociety” means a society formed by theowners of dwelling units or commercialunits in a building for the purpose ofmaintenance of the building and provisionof common amenities;

(j) “dwelling unit” includes a house, flat,apartment, and tenement for the purposeof dwelling;

(k) “external repairs” means allstructural repairs and repairs required tobe carried out to the property of the societythe use of which is common to two or more

members, and includes repairs of commonwalls, external walls, roads, lifts, watertanks, electric pumps, staircases, terracesand parapet walls, roofs of flats, streetlights, electric lines, all leakages of water,water pipelines, compound walls, septictanks, fencing, drainage, gates and otherlike common amenities;

(l) “internal repairs” means such repairsas are not external repairs;

(m) “occupancy right” means the rightof an allottee to possess and use the plot ofland, site or dwelling unit or commercialunit allotted to him with power to give iton hire or on leave and licence or tomortgage it or to donate or to transmit itby Will or by inheritance or to transfer it;

(n) “outgoing” means ground rent, if any,municipal and other local taxes, cesses,charges, water charges, electricity charges,revenue assessments, expenses ofmanagement and maintenance, repairs toor replacement of any property insurancepremium, other like expenses in respect ofthe society;

(o) “sub-allottee” means an individual orbody of persons, whether incorporated ornot in whose favour the possession of thedwelling unit or part thereof is transferredfor a period of not less than three months,and includes a tenant, licencee, payingguest and caretaker thereof.

113. Limit on membership .— A co--operative housing society shall not admit toits membership persons exceeding thenumber of dwelling units and commercialunits or plots, as the case may be, availablefor allotment in the society.

114. Allotment of plots, dwelling units andcommercial units.— (1) Every member of asociety, whether registered before or after thecommencement of this Act, to whom plots ofland dwelling units or commercial units havebeen allotted, shall be issued certificate ofallotment by the society under its seal and



849

signature in such form as may be prescribed.(2) Any allotment (including re-allotment)

of a plot of land or dwelling unit orcommercial unit in a building of a co-operativehousing society to its member in accordancewith its bye-laws shall entitle such memberto hold such plot of land or dwelling unit orcommercial unit with such title or interest asmay be specified in the bye-laws and thecertificate of allotment shall be conclusiveevidence of such title or interest in favour ofsuch member.

(3) A member of a co-operative housingsociety shall not be entitled to any title orinterest in any plot of land or dwelling unit orcommercial unit in a building of the societyuntil he has made such payment as may bespecified by the society towards the cost ofsuch plot of land or construction of suchdwelling unit or commercial unit or both, asthe case may be, to the co-operative housingsociety.

(4) The right, title and interest in a plot ofland or dwelling unit or commercial unit in abuilding of the society (including theundivided interest in common areas andfacilities) shall constitute a heritable andtransferable immovable property within themeaning of any law for the time being inforce:

Provided that notwithstanding anythingcontained in any other law for the time beingin force, such land or building shall not bepartitioned for any purpose whatsoever.

(5) Every member of a co-operativehousing society shall be entitled to anundivided interest in the common areas andfacilities pertaining to the plot of land ordwelling unit or commercial unit allotted tohim.

(6) Every member of a co-operativehousing society in whose favour a plot of landor a dwelling unit or commercial unit hasbeen allotted shall have the right to use thecommon areas and facilities as aforesaid forthe purpose for which they are intended

without interfering with or encroaching uponthe lawful rights of other members in whosefavour similar allotment has been made.

(7) The work relating to the maintenance,repair and replacement of the common areasand facilities (including additions orimprovements thereto) shall be carried outin accordance with the bye-laws of theco-operative housing society and the buildingrules of the concerned municipality, or othercompetent authority as the case may be, andthe costs thereof shall be apportionedamongst the members of the co-operativehousing society in such manner as may bespecified in the bye-laws of that society.

115. Rights of member in a co-ownershiphousing society.— In a co-ownershiphousing society, the society which holds free--hold or lease-hold land, shall execute deedsof lease or sub-lease, as the case may be, infavour of its members to whom the plots areallotted for such period and with suchcovenants as may be specified in the bye--laws of the society.

116. Provisions for nomination.— (1) Everymember of a co-operative housing societyshall nominate a person or persons to whomthe occupancy right shall be transferred inthe event of his death.

(2) The member shall have the right tochange the nomination at any time.

(3) There shall not be more than onenomination subsisting at any time.

(4) On the death of the member, onlyoccupancy right shall vest in the nomineeand the succession to the property shall begoverned by the law relating to Successionand Wills.

117. Restriction on letting out.— (1) Not-withstanding anything contained in any otherlaw for the time being in force, no member ofa co-operative housing society who has beenallotted a plot of land or dwelling unit in abuilding over a period of three months shall


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part with the possession of such plot ordwelling unit as the case may be, withoutthe written consent of the Board of Directorsof the society. On an application made in thisbehalf by the member concerned, the Boardof Directors may subject to payment ofprescribed non-occupancy fees to the societygive its consent or refuse such consent forreasons to be recorded in writing andcommunicate its decision to the memberwithin thirty days from the date of receipt ofhis application.

(2) If the Board of Directors fails to takedecision on the application within thirty daysfrom the date of its receipt or refuses suchconsent, the member shall have a right toappeal to the Registrar.

118. Restriction on transfer of share orinterest of a member.— Subject to theprovisions of this Act, in the case of aco-operative housing society, no transfer ofshare or interest of a member in the societyor the occupancy right, except the transfer tohis heir or a nominee, shall be effective,unless:—

(a) the transferor vacate and givespossession of the premises to the transferee,provided that the transferor may givepossession of the premises pending thesociety’s approval for transfer;

(b) the dues of the society are paid ortransferred to the transferee with theconsent of the society;

(c) the transfer fees or transfer charge asmay be specified in the society’s bye-laws,are duly paid;

(d) the previous permission of the societyhas been obtained in this behalf in writingand the transferee has been admitted asmember.

119. Permission for transfer of occupancyright not to be ordinarily refused and provisionfor appeal.— (1) No co-operative housingsociety shall ordinarily refuse to grant to itsmember permission for transfer for his

occupancy right in the property of the society,unless the transferee is not qualified to be amember under the provisions of this Act,rules and bye-laws of the society:

Provided that nothing contained in anyagreement, contract or the said bye-lawsregarding eligibility for membershipstipulated therein shall apply to nominee, heiror legal representatives of the deceasedmember for his admission to membership ofthe society.

(2) The decision of the co-operative housingsociety on any application for permission tosuch transfer shall be communicated to themember within fifteen days from the date ofthe decision or within fifteen days from thedate of receipt of the application whicheveris earlier.

(3) Any person aggrieved by the decisionof the co-operative housing society refusingpermission for such transfer may, within thirtydays from the date on which the refusal ofpermission is communicated to him, appealto the Registrar.

120. Creation, maintenance and utilizationof building maintenance fund.— (1) A co--operative housing society, which owns landor building, shall maintain a buildingmaintenance fund by collecting from itsmembers contributions to the extent andin the manner as may be provided in itsbye-laws.

(2) The building maintenance fund shallbe utilised only for the purposes of repairsand maintenance of the building and forcarrying out such structural additions andalterations to the building which are likely toincrease its life.

(3) The building maintenance fund of theco-operative housing society, when notrequired by it for its immediate use, shallordinarily be invested with the apex housingfinance society of the State.

121. Miscellaneous.— (1) Notwithstanding



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anything contained in the laws relating torents or any other corresponding law for thetime being in force in any part of the State,any dispute relating to the occupation orrecovery of possession of any plot, dwellingunit or commercial unit in any society, therecovery of dues payable by a member orsub-allottee to a co-operative housing societyor vice versa arising on or after the date ofcommencement of this Act and suits orproceedings pending in any other Court onthe date after such commencement, shall bedeemed to be a dispute within the meaningof section 98 of this Act, and shall be decidedin accordance with the provisions of this Act,and no Court or other Tribunal or Authorityshall have jurisdiction to entertain and decideany proceedings in respect of such dispute.

(2) Notwithstanding anything contained inthe law relating to rents or any othercorresponding law for the time being in force,no licensee, caretaker, or sub-allottee who isoccupying the dwelling unit or commercialunit, or plot of land in a co-operative housingsociety shall be a tenant of such dwellingunit or commercial unit or plot of land withinthe meaning of that law.

122. Unit of assessment.— Notwithstandinganything contained in any other law for thetime being in force, each plot of land ordwelling unit or commercial unit in a building(including the undivided interest in thecommon areas or facilities) shall constitute aseparate unit for the purpose of assessmentof rates and taxes to be realized by a localauthority or any other authority competent inthis behalf.

123. Certain portion of land acquired bythe Government for housing to be utilized onco-operative principles.— Where theGovernment or any Development Authorityunder its control acquires any land for thepurpose of housing, then, having regard tothe purpose of such acquisition and all otherrelevant factors in this behalf, the Governmentshall endeavour to utilise, at least one-thirdportion of the land so acquired, on

co-operative principles for the said purpose.CHAPTER - XI

Winding up of Co-operative Societies (Liquidation)

124. Dissolution of co-operative society bymembers.— (1) A co-operative society mayby special resolution, authorise its owndissolution, a notice of the general bodymeeting called for the purpose shall also besent by registered post with an invitation toattend, to the Registrar, to creditors, if any,to any co-operative society to which theco-operative society is affiliated, and to anyco-operative society with which a partnershipcontract has been entered into.

(2) The invitee under sub-section (1) shallhave the right only to make a presentation tothe general body, if he wishes to do so, onthe issue of the proposed dissolution.

(3) Within fifteen days of such authorizationfor dissolution, the co-operative society shallsend to the Registrar a copy by registeredpost of the authorization to dissolve theco-operative society.

(4) The authorization approved undersub-section (1) shall set out—

(a) the assets and liabilities of theco-operative society;

(b) the claims of creditors;

(c) the number of members;

(d) the nature and extent of the membersinterest in the co-operative society; and

(e) the name and address of theliquidator appointed by the co-operativesociety.

(5) When the Registrar receives the specialresolution passed under sub-section (1)—

(a) where he is satisfied that theco-operative society has no assets orliabilities, he shall dissolve the co-operative


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society, delete its name from the Registrarof co-operative societies and issuea certificate of dissolution of suchco-operative society; or

(b) he shall, within thirty days of the dateof receipt of such resolution, cause at theexpense of the co-operative society a noticeof the special resolution to be published inthe Official Gazette and in a newspaper inKonkani, Marathi and English.

(6) In the case of dissolution, the Registrarmay require, till the certificate of dissolutionis issued by him, from the liquidatorappointed by the co-operative society or fromany other person who is required to furnishinformation, a periodical return showing—

(a) the progress of dissolution;

(b) the distribution of any undistributedsurplus or reserve; and

(c) any other relevant information.

125. Dissolution of co-operative society bythe Registrar.— (1) Where the Registrar hasreason to believe that a co-operative society—

(a) has not commenced business withinone hundred eighty days from the date ofits registration or the number of membershas been reduced to less than fifteen;

(b) has not carried on business for twoconsecutive years in accordance with thebye-laws and the co-operative principles;or

(c) has not got the accounts of the societyaudited since last three or moreconsecutive years,

he shall send to the co-operative society aletter by registered post, inquiring whetherthe co-operative society is carrying onbusiness.

(2) Where the Registrar—

(i) does not within thirty days of the date

of sending a letter under sub-section (1),receive a reply to the letter, he shall, withinfifteen days after the expiry of said thirtydays, send to the co-operative society aletter stating that—

(a) a letter was sent to the co-operativesociety under sub-section (1);

(b) no reply to the letter has beenreceived by him within thirty days fromthe date of sending it;

(ii) receives a reply from the co-operativesociety that it is not carrying on businessor got its accounts audited; or

(iii) does not, within thirty days from thedate he sent a letter under sub-section (1)receive a reply to that letter,

he shall publish the notice and send to theco-operative society a notice that, at theexpiry of thirty days from the date of thenotice, the co-operative society shall, unlesscause is shown to the contrary, be dissolvedand have its name deleted from the registerof co-operative societies.

(3) On the expiry of thirty days from thedate of issue of the letter under sub-section(2), the Registrar shall unless cause to thecontrary is previously shown by theco-operative society—

(a) where he is satisfied that theco-operative society has no assets orliabilities, dissolve the co-operative society,delete its name from the register ofco-operative societies and issue acertificate of dissolution of suchco-operative society; or

(b) appoint a liquidator under section 127to wind up the affairs of the co-operativesociety.

(4) Where a co-operative society fails tofile returns and furnish information, asrequired by section 68, the Registrar shallsend a requisition under sub-section (1) of



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section 67 to the Board to call a special generalbody meeting for the purpose of consideringthe annual returns to be filed with, and theinformation to be furnished to the Registrar.

(5) Where the Board fails to call a specialgeneral meeting within the period specifiedin sub-section (1) of section 67 the Registrarmay at the cost of the co-operative societycall the special general body meetingnotwithstanding anything contained in thisAct—

(a) to review the affairs of the co-operativesociety; and

(b) to ascertain whether the generalbody desires to continue the co-operativesociety.

(6) Where—

(a) a quorum of members is not presentat the special general body meeting calledunder sub-section (4) or sub-section (5); or

(b) the general body meeting fails to passa resolution to the effect that—

(i) the co-operative society is to carryon business;

(ii) the committee shall present, withinsixty days from the date of specialgeneral body meeting to the generalbody the annual returns to be filed with,and the information to be furnished to,the Registrar; and

(iii) the co-operative society shall filethe returns with, and furnish theinformation to, the Registrar within ninetydays from the date of the special generalbody meeting.

The Registrar shall—

(i) if he is satisfied that the co-operativesociety has no assets or liabilities, dissolvethe co-operative society, delete its namefrom the register of co-operative societies

and issue a certificate of dissolution ofsuch co-operative society; or

(ii) appoint a liquidator under section 127to wind up the affairs of the co-operativesociety.

126. Winding up, etc. of co-operative banksat the direction of the Reserve Bank of India.—Notwithstanding anything contained in thisAct, in the case of an insured co-operativebank,—

(i) an order for the winding up, or anorder sanctioning a scheme of compromiseor arrangement, or of amalgamation, orreconstruction (including division orre-organization), of the bank may be madeonly with the previous sanction in writingof the Reserve Bank of India;

(ii) if so required by the Reserve Bank ofIndia in the public interest or forpreventing the affairs of the bank frombeing conducted in a manner detrimentalto the interests of the depositors or forsecuring the proper management of thebank, an order shall be made for thesupersession (removal) of the Board ofmanagement of society and theappointment of an Administrator thereof forsuch period or periods, not exceeding fiveyears in the aggregate, as may from timeto time be specified by the Reserve Bankof India, and the Administrator soappointed shall, after the expiry of his termof office, continue in office until the dayimmediately preceding the date of the firstmeeting of the new committee ofmanagement of society.

(iii) An order for the winding up of thebank or an order sanctioning a schemeof compromise or arrangement or ofamalgamation or reconstruction (includingdivision or re-organisation) or an order forthe supersession (removal) of the committeeof management of society and theappointment of an Administrator thereofmade with the previous sanction in writingor on the requisition of the Reserve Bank


854

of India shall not be liable to be called inquestion in any manner and the liquidatoror the insured co-operative bank or thetransferee bank, as the case may be, shallbe under an obligation to repay the DepositInsurance Corporation established underthe Deposit Insurance and Credit GuaranteeCorporation Act, 1961 (Central Act 47 of1961), in the circumstances, to the extentand in the manner referred to in section 21of that Act.

Explanation.—

(a) the expression “an insured Co--operative bank” means a society which isan insured bank under the provisions ofthe Deposit Insurance and Credit GuaranteeCorporation Act, 1961 (Central Act 47 of1961);

(b) the expression “the transferee bank”has the same meaning as assigned to it inthat Act.

127. Appointment of liquidator.— (1)Where the Registrar has made an order undersection 124 or 125 or 126 for the winding upof a co-operative society, the Registrar mayappoint a liquidator for the purpose.

(2) The Registrar may fix the remunerationto the liquidator taking into account thevolume of work of liquidation proceedings.

(3) Where a co-operative society is to bedissolved and no liquidator is appointed bythe general body meeting, the Registrar shallappoint any person as a liquidator to windup the affairs of the co-operative society.

128. Duties of liquidator.— A liquidator onhis appointment shall—

(a) immediately give notice of hisappointment—

(i) in the case of a liquidator not appointedby the Registrar, to the Registrar, and

(ii) to each claimant and creditors knownto the liquidator;

(b) immediately publish notice of hisappointment in the Official Gazette and in anewspaper in Konkani, Marathi and Englishand take reasonable steps to give noticeof the liquidation in every jurisdictionwhere the co-operative society carries onbusiness;

(c) include in the notice mentioned inclauses (a) and (b) a provision requiring anyperson—

(i) indebted to the co-operative societyto render an account and pay to theliquidator at the time and place specifiedin the notice any amount owing;

(ii) possessing property of theco-operative society to deliver it to theliquidator at the time and place specifiedin the notice; and

(iii) having a claim against theco-operative society, whether liquidated,unliquidated, future or contingent, topresent particular of the claim in writingto the liquidator at the time and placespecified in the notice within the periodspecified in such notice which shall notexceed sixty days from the date of firstpublication of the notice;

(d) take into his custody and under hiscontrol all the property and actionable claimsto which the co-operative society is orappears to be entitled and shall take suchsteps as he may deem necessary or expedientto prevent loss or deterioration of or damageto such property, effect and claims;

(e) open and maintain a trust account forthe moneys of the co-operative society;

(f) keep accounts of the moneys of theco-operative society received and paid outby him;

(g) maintain separate lists of the members,creditors and other persons having claimsagainst the co-operative society;



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(h) where at any time he determines thatthe co-operative society is unable to pay oradequately provide for the discharge of itsobligations, apply to the Registrar or generalbody, as the case may be, for directions; and

(i) deliver to the Registrar or general body,as the case may be, periodically as theRegistrar or general body may require,financial statements of the co-operative societyin such form the liquidator considers properor that the Registrar or general body mayrequire.

129. Powers of Liquidator.— (1) The wholeof the assets of a co-operative society inrespect of which an order for winding up hasbeen made shall vest in the liquidatorappointing under section 127 from the datethe order takes effect.

(2) The liquidator may—

(a) retain lawyers, accountants,engineers, appraisers and other pro-fessional advisors;

(b) institute and defend suits and otherlegal proceedings on behalf of theco-operative society by the name of hisoffice;

(c) carry on the business of theco-operative society so far as may benecessary for the beneficial winding up ofthe same;

(d) sell by public or private sale anyproperty of the co-operative society;

(e) do all acts and execute any documentsin the name and on behalf of theco-operative society;

(f) borrow money on the security of theproperty of the co-operative society;

(g) settle or compromise any claimsby or against the co-operative society;and

(h) do all other things that he considersnecessary for the liquidation of theco-operative society and distribution of itsproperty.

(3) Where a liquidator has reasons tobelieve that any person has in his possessionor under his control, or has concealedwithheld or misappropriated any property ofthe co-operative society, he may apply to theMetropolitan Magistrate for an orderrequiring that person to appear before thecourt at the time and place designated in theorder and to be examined.

(4) Where the examination under sub--section (3) discloses that a person hasconcealed, withheld or misappropriatedproperty of the co-operative society or has inpossession or under his control the propertyof the co-operative society, the MetropolitanMagistrate may order that person to restorethe property or pay compensation to theliquidator on behalf of the co-operative society.

(5) No liquidator shall purchase, directlyor indirectly, any part of the stock-in-trade,debts or assets of the co-operative society.

(6) Where an order of winding up ofco-operative society is set aside in appeal,the property, effects and actionable claims ofthe co-operative society shall revest in theco-operative society.

130. Disposal of surplus assets of liquidatedco-operative societies.— After all the liabilitiesincluding the paid up share capital of a woundup co-operative society have been met, thesurplus assets shall not be divided among itsmembers but they shall be applied to anyobject described in the rules or bye-laws, thesurplus shall be vest in the Registrar, whoshall hold it in the trust and shall transfer itto the reserve fund of a new societyregistered with a similar object, and servingmore or less an area which the society, towhich the surplus belonged, was serving:

Provided that, where no such society existor is registered within three years of the


856

cancellation of the society whose surplus isvested in the Registrar, the Registrar maydistribute the surplus, in the manner he thinksbest, amongst any or all the following:—

(a) an object of public utility and of localinterest as may be recommended by themembers general meeting held under thepreceding section;

(b) a federal society with similar objectsto which the cancelled society was eligiblefor affiliation or, where no federal societywhich may be notified in this behalf by theGovernment; and

(c) for the purpose of development of theco-operative movement.

Where the Registrar is satisfied that theassets of financially weak society is blockedin the litigation process and that the interestof the society is at stake due to non--performance of certain obligation then at hisdiscretion Registrar may assist such society//societies by allotting the funds from thesurplus funds at his disposal.

131. Final accounts and termination ofliquidation proceedings.— (1) A liquidatorshall pay the costs of liquidation out of theproperty of the co-operative society and shallpay or make adequate provisions for all claimsagainst the co-operative society.

(2) Subject to the provisions of section 129after paying or making adequate provisionsfor all claims against the co-operative society,the liquidator shall apply to the Registrar forapproval of his final accounts and forpermission to distribute in cash or in kind,the remaining property of the co-operativesociety in accordance with the rules.

(3) Where the Registrar approves the finalaccounts rendered by a liquidator undersub-section (2), he shall—

(i) issue directions with respect to thecustody or disposal of the documents andrecords of the co-operative society; and

(ii) discharge the liquidator.

(4) Where the Registrar discharges aliquidator under sub-section (3) the Registrarshall dissolve the co-operative society, issuea certificate of dissolution and delete its namefrom the register of co-operative societies.

(5) The co-operative society ceases to existon the date shown in the certificate ofdissolution, which shall not be later than sixmaximum years after the appointment of theliquidator.

(6) An order passed under sub-section (4)shall be communicated by registered post tothe president of the co-operative society andto the financing bank or federal co-operativesociety to which co-operative society ifindebted, if any, of which the co-operativesociety was a member.

CHAPTER XII

Appeals, Review and Revisions

132. Appeals.— (1) An appeal against anorder or decision under sections 5, 10, 12,14, 15, 19, 20, 21, 24, 25, 31, 35, 78, 125 and129 shall lie—

(a) If made or sanctioned or approvedby the Registrar, or the Dy. Registrar orAsstt. Registrar on whom the powers ofthe Registrar are conferred, to the StateGovernment.

(b) If made or sanctioned by any personother than the Registrar, or the Dy.Registrar or Asstt. Registrar on whom thepowers of the Registrar are conferred tothe Registrar.

(2) An appeal against the order or decisionunder sections 83, 93, 96 and any orderpassed by the Registrar for payingcompensation to a society, and any otherorder for which an appeal to the Tribunalhas been provided under this Act, shall lie tothe Tribunal.

(3) An appeal under sub-sections (1) and(2) shall be filed within 60 days of the date ofcommunication of the order or decision.



857

(4) Save as provided in this Act, no appealshall lie against any order, decision or awardpassed in accordance with this Act; and everysuch order, decision or award shall be final,and where any appeal has been provided forany order passed on appeal shall be final andno further appeal shall lie against it.

133. Extension of period of limitation byappellate authority in certain cases.— In allcases in which it is provided under this Actthat an appeal may be filed against anydecision or order within a specified period,the appellate authority may admit an appealafter the expiry of such period, if the appellantsatisfies the appellate authority that he hassufficient cause for not referring the appealwithin such period.

134. Review.— (1) The Government or theTribunal or the Registrar on the applicationof any party may review their own order inany case, and pass in reference thereto suchorder as they think just:

Provided that no such application made bythe party shall be entertained unless theGovernment or the Tribunal or the Registrar,as the case may be, is satisfied that there hasbeen the discovery of new important matterof evidence, which after the exercise of duediligence was not within the knowledge ofthe applicant or could not be produced byhim at the time when order was made or thatthere has been some mistake or errorapparent on the face of the record, or for anyother sufficient reasons:

Provided further that no such order shallbe varied or revised unless notice has beengiven to the parties interested to appear andbeing heard in support of such order.

(2) An application for review undersub-section (1) by any party shall be madewithin thirty days from the date ofcommunication of the order of the Governmentor the Tribunal or the Registrar.

135. Revision.— (1) Government may of itsown motion or an application made to it, call

for and examine the record of the Registrar,in respect of any proceeding not being aproceeding in respect of which an appeal tothe Tribunal is provided by section 137 tosatisfy himself as to the regularity of suchproceeding or the correctness, legality orpropriety of any decision passed or ordermade therein and if, in any case, it appearsto the Government that any such decision ororder should be modified, annulled, reversedor remitted for reconsideration, he may passorders accordingly:

Provided that every application to theGovernment for the exercise of the powersunder this section shall be preferred withinninety days from the date on which theproceedings, decision or order to which theapplication relates was communicated to theapplicant.

(2) No order prejudicial to any person shallbe passed under sub-section (1) unless suchperson has been given an opportunity ofmaking his representation.

(3) Government may suspend the decisionor order pending the exercise of its powerunder sub-section (1) in respect thereof.

(4) Government may award costs inproceeding under this section to be paideither out of the funds of the co-operativesociety or by such party to the applicationfor the revision as the Government may deemfit which may be recovered as arrears of landrevenue.

136. Interlocutory orders.— Where anappeal is made under section 132 or wherethe Tribunal or the Government calls for therecord of a case under section 134, theappellate authority or the Tribunal or theGovernment, as the cases may be, may inorder to prevent the ends of justice beingdefeated, make such interlocutory order,including an order of stay, pending thedecision of the appeal or revision as suchauthority or the Tribunal or the Governmentmay deem fit.


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137. Goa Co-operative Tribunal.— (1) TheGovernment shall constitute a Tribunal calledthe Goa Co-operative Tribunal to exercise thepowers and to discharge the functionsconferred on it by or under this Act.

(2) The Goa Co-operative Tribunal shallconsist of a President and an AdditionalPresident both of whom shall be appointedby the Government. Both, the Presidentand the Additional President, shall haveco-extensive powers and concurrentjurisdiction to deal with the cases filed in theCo-operative Tribunal. The AdditionalPresident shall decide such cases as are madeover to him by the President.

(3) (a) The President and an AdditionalPresident of the Co-operative Tribunal shallbe a person who is qualified to be appointedas a District Judge or is or has been a JudicialOfficer for a period of 7 years or has held orholding the post of the President and anAdditional President of AdministrativeTribunal.

(b) The appeal and revision in respect ofmatters of Co-operative Societies shall bedecided by the Goa, Daman and DiuAdministrative Tribunal till such time up toestablishment of independent Co-operativeTribunal.

(4) The Co-operative Tribunal shall frameregulations consistent with the provisions ofthis Act and the rules made thereunder, forregulating its procedure and the disposal ofits business.

(5) The regulations made under sub-section(4), shall be published in the Official Gazette.The regulations governing the procedure ofthe Goa, Daman and Diu Co-operative Tribunalconstituted under section 149 of theMaharashtra Co-operative Societies Act,1960(Maharashtra Act XXIV of 1961), as appliedto the State of Goa, shall continue to be inforce till such publication.

(6) The Co-operative Tribunal may call forand examine the records of any proceeding

in which an appeal lies to it, for the purposesof satisfying itself as to the legality orpropriety of any decision or order passed. Ifin any case, it appears to the Co-operativeTribunal that any such decision or ordershould be modified, annulled or reversed, theCo-operative Tribunal may pass such orderthereon as it may deem just.

(7) Where an appeal or application is madeto the Co-operative Tribunal under this Act,it may, in order to prevent the ends of justicebeing defeated, make such inter-locutoryorders pending the decision of the appeal orapplication, as the case may be, as mayappear to it to be just and convenient, orsuch orders as may be necessary for the endsof justice, or to prevent the abuse of theprocess of the Tribunal.

(8) An order passed in appeal or in revisionunder sub-section (6), or in review undersection 134 by the Co-operative Tribunal, shallbe final and conclusive, and shall not be calledin question in any Civil or Revenue Court.

(9) (a) The President of the Goa, Damanand Diu Co-operative Tribunal functioningimmediately before the commencement of thisAct, shall be deemed to be the President ofthe Goa Co-operative Tribunal constituted forthe purpose of this Act; and all appeals andother proceedings pending before the saidGoa, Daman and Diu Co-operative Tribunalshall be heard and disposed of by theCo-operative Tribunal constituted under thisAct from the stage they reached before suchcommencement.

(b) Anything done or any action takenincluding any orders passed or regulationsmade by the said Goa, Daman and DiuCo-operative Tribunal, shall be deemed tohave been done or taken by the Co-operativeTribunal constituted under this Act and shallcontinue in operation until duly modified orannulled.

(c) Any reference to the said Goa, Damanand Diu Co-operative Tribunal in any law or



859

instrument, for the time being in force, shall,with effect from the commencement of thisAct, be construed as a reference to theCo-operative Tribunal constituted underthis Act.

Explanation.— The Co-operative Tribunalhearing an appeal under this Act shallexercise all the powers conferred upon anAppellate Court by section 97 and Order XLIin the First Schedule of the Code of CivilProcedure, 1908 (V of 1908).

138. Co-operative Tribunal to have powersof Civil Court.— (1) In exercising the functionsconferred on it by or under this Act, theCo-operative Tribunal shall have the samepowers as are vested in a Court in respectof,—

(a) proof of facts by affidavit;

(b) summoning and enforcing theattendance of any person and examininghim on oath;

(c) compelling discovery or theproduction of documents; and

(d) issuing commissions for theexamination of witnesses.

(2) In the case of any such affidavit, anyofficer appointed by the Co-operative Tribunalin this behalf may administer the oath to thedeponent.

CHAPTER XIII

Offences and Penalties

139. Offences.— The following shallconstitute as offences under this Act— (1)Any co-operative society or an officer ormember thereof, willfully making a falsereturn or furnishing false information or anyperson willfully or without any reasonableexcuse disobeys any summons, requisition orlawful written order issued under theprovisions of this Act, or willfully notfurnishing any information required from it

or him or by a person authorized in thisbehalf under the provisions of this Act.

(2) Any employer who, without sufficientcause, fails to pay to a co-operative societythe amount deducted by him under section49 within a period of fourteen days from thedate on which such deduction is made shall,without prejudice to any action that may betaken against him under any other law forthe time being in force.

(3) Any officer or custodian who willfullyfails to handover the custody of books,accounts, documents, records, cash, securityand other property belonging to a co-operativesociety of which he is an officer or custodian,to a person authorised to have a custodyunder this Act.

(4) Any person who acts in contraventionunder the section of this Act.

(5) The Board of Directors or any officer oremployees of a co-operative society whofalsify or tamper with the records of theco-operative society.

(6) Any officer or employees of a co--operative society including the paidsecretary or Board of Directors whodishonestly or fraudulently misappropriates,misuse, or otherwise converts for his ownuse or intentionally causes loss to theproperty of the co-operative society entrustedto him or under his control as such officer oremployee, or allows another person to do orso to do.

(7) If the Board of Directors or theauthorised officer of a co-operative society failsto file return as required under this Act.

(8) Functioning, trading or carrying onbusiness under any name or title of whichthe word ‘Co-operative’ or its equivalent inany language forms part, except in the caseof a society registered or deemed to beregistered under this Act or any otherState or Central Act or the family name of aperson.


860

140. Penalties.— (1) A person who commitsany of the offences specified in section 139 ofthe Act shall be liable for a fine not exceedingRs.100/- per day for each of the offencescommitted, so long as the offence continues,without prejudice to the civil or criminalliability that may arise on such person underany other laws for the time being in force.

(2) On conviction a member of aco-operative society shall be debarred fromcontesting election of a Board of Directorsfor a period of six years.

141. Authority to take cognizance.— (1) Nocourt inferior to that of a Judicial MagistrateFirst Class shall try any offences under thisAct.

(2) Notwithstanding anything contained inthe Code of Criminal Procedure, 1973 (Act 2of 1974), it shall be lawful for a JudicialMagistrate of the First Class to pass sentenceof fine or imprisonment on any personconvicted of an offence under clauses (e) and(f) of section 139 of this Act, in excess of thispowers under section 29 of that Code.

(3) No prosecution under this Act shall be

lodged except with the previous sanction of

the Registrar. Such sanction shall not be given

except after hearing the parties concerned

by an officer authorised in this behalf, by

the Government by a general or special

order.

142. Contempt of Registrar or designatedofficer and of Co-operative Tribunal.— (1) Ifany person—

(a) when ordered by the registrar ordesignated officer or tribunal to produceor deliver up any document or to furnishinformation, being legally bound so to do,intentionally omits to do so; or

(b) when required a Registrar ordesignated officer or Tribunal to bindhimself by an oath or affirmation to Statethe truth, refuses to do so;

(c) being legally bound to state the truthon any subject to a co-operative authorityor Tribunal, refuses to answer any questiondemanded of him touching such subjectby the Registrar or designated officer orTribunal; or

(d) intentionally offers any insult orcauses any interruption to a Registrar ordesignated officer or Tribunal at any stageof its judicial proceeding, he shall, onconviction, be punished with imprisonmentfor a term which may extend to six months,or with fine which may extend to onethousand rupees, or with both.

(2) If any person refuses to sign anystatement made by him in the judicialproceedings, when required to do so bya Registrar or designated officer or theCo-operative Tribunal, he shall, on conviction,be punished with imprisonment for a termwhich may extend to three months, or withfine which may extend to five thousandrupees, or with both.

(3) If any offence under sub-section (1) or(2) is committed in the view or presence of aRegistrar or designated officer or Tribunalconcerned, the said authority or tribunal may,after recording the facts constituting theoffence and the statement of the accused asprovided in the Code of Criminal Procedure,1973 (II of 1974), forward the case to aMagistrate having jurisdiction to try thesame, and may require security to be givenfor the appearance of the accused personbefore such Magistrate or, if sufficient securityis not given, shall forward such person incustody to such Magistrate. The Magistrateto whom any case is so forwarded shallproceed to hear the complaint against theaccused person in the manner providedin the Code of Criminal Procedure, 1973(II of 1974).

(4) If any person commits any act orpublishes any writing which is calculated toimproperly influence a Registrar ordesignated officer or the co-operative tribunal



861

to bring any such authority or Tribunal intodisrepute or contempt or to lower its or hisauthority, or to interfere with the lawfulprocess of the said authorities, such personshall be deemed to be guilty of contempt ofthe said authorities.

(5) In the case of contempt of itself, theco-operative tribunal shall record the factsconstituting such contempt, and make areport in that behalf to the High Court.

(6) In the case of contempt of Registrar orhis nominee they shall record the factsconstituting such contempt, and make areport in that behalf to the co-operativetribunal, and thereupon, the Tribunal may, ifit considers it expedient to do so, forwardthe report to the High Court.

(7) When any intimation or report inrespect of any contempt is received by theHigh Court under sub-section (5) or

(8) The High Court shall deal with suchcontempt as if it were contempt of itself, andshall have and exercise in respect of it thesame jurisdiction, powers and authority inaccordance with the same procedure andpractice as it has and exercises in respect ofcontempt of itself.

143. Presumption as to statements.—Where any member, officer or employee of aco-operative society has made a statementduring the audit under section 89, orinspection or inquiry under section 92, orinspection of debtor institution under section92, or proceedings under section 96 and thestatement is recorded by the Registrar or theperson authorized by the Registrar inexercise of their powers conferred on themunder this Act, the court shall presume thatthe statement was so recorded by theRegistrar or the person authorized by him asa statement within the meaning of the IndianEvidence Act, 1872 (1 of 1872).

144. Notice necessary in suits.— No suitshall be instituted against a co-operative

society or any of its officer in respect of anyact touching the business of the co-operativesociety until the expiration of ninety days nextafter notice in writing has been delivered tothe Registrar or left at his office, stating thecause of action, the name, description andplace of residence of the plaintiff and the reliefwhich he claims, and the plaint shall containa statement that such notice has been sodelivered or left.

145. Indemnity.— No suit, prosecution or

other legal proceedings 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 purporting to

have been done under this Act.

146. Bar of jurisdiction of Civil or RevenueCourts.— (1) Save as provided in this Act, noCivil or Revenue Court shall have anyjurisdiction in respect of—

(a) the registration of a co-operative

society or its bye-laws or of an amendment

of a bye-law;

(b) the removal of the committee;

(c) any dispute required under section98 to be referred to the Registrar; and

(d) any matter concerning the winding

up and the dissolution of a co-operative

society.

(2) While a co-operative society is being

wound up, no suit or other legal proceedings

relating to the business of such co-operative

society shall be proceeded with or instituted

against the liquidator as such or against the

co-operative society or any member thereof,

except by leave of the Registrar and subject

to such terms as he may impose.

(3) Save as provided in this Act, no order,

decision or award made under this Act, shall

be questioned in any Court on any ground

whatsoever.


862

CHAPTER XIV

Miscellaneous

147. Power to delegate.— (1) TheGovernment may, by notification in the OfficialGazette, direct that any power exercised byit under this Act, except the power to makeRules, may also be exercised by such officeras may be mentioned therein in such casesand subject to such conditions, if any, as maybe specified therein.

(2) The State Government may, bynotification in the Official Gazette and subjectto such conditions as it may think fit to imposeappoint a retired officer not below the rank ofAsstt. Registrar of Co-op. Societies who servedin the Department at least five years retirednot more than two years prior to the date ofappointment, as the Officer of any Co--operative Society by whatever designationas suggested by the Society concerned anddelegate the powers of Registrar undersection 147 (2) of this Act to the said Officer,who shall work under the general guidance,supervision and control of the Registrar asspecified in the notification.

148. Recovery of sums due to theGovernment.— (1) Unless otherwise providedby this Act, all sums due from a society orfrom an office bearer or member or pastmember or a deceased member of a societyas such to the Government, may be recoveredaccording to the law and under the Rules forthe time being in force for the recovery ofarrears of land revenue.

(2) Sums due from a society to the

Government and recoverable under the

foregoing sub-section may be recovered,

firstly from the property of the society and

secondly from the members or past members

or the estate of deceased members subject to

the limit of their liability.

(3) The liability of past members or estate

of deceased members shall in all cases be

subject to the provisions of section 37.

149. Power to exempt societies fromprovisions of Act.— The State Governmentmay, by general or special order, to bepublished in the Official Gazette, exempt anysociety or class of societies from any of theprovisions of this Act, or may direct that suchprovisions shall apply to such society or classof societies with such modifications notaffecting the substance thereof as may bespecified in the order:

Provided that no order to the prejudice ofany society shall be passed, without anopportunity being given to such society torepresent its case.

150. Branches, etc. of societies outside theState.— (1) No society shall open a branch ora place of business outside the State of Goa,and no co-operative society registered underany law in any other State shall open abranch or a place of business in the State ofGoa, without the permission of the Registrar.

(2) Every co-operative society registeredunder any law in any other State, andpermitted to open a branch or a place ofbusiness in the State of Goa under theforegoing sub-section, which has a branchor a place of business in the State of Goa atthe commencement of this Act, shall, withinthree months from the opening of suchbranch or place of business or from thecommencement of Act, as the case may be,file with the Registrar a certified copy of thebye-laws and amendments and, if these arenot written in English language, a certifiedtranslation thereof in English or Hindi, andshall submit to the Registrar such returns andinformation as are submitted by similarsocieties registered under this Act in additionto those which may be submitted to theRegistrar of the State where such society isregistered.

151. Registrar and other officers to be publicservants.— The Registrar, a person exercisingthe powers of the Registrar, a personappointed to audit the accounts of the societyor to hold an inquiry or to make an



863

inspection, or a person appointed asRegistrar’s Nominee, the Co-operativeTribunal or a Liquidator shall be deemed tobe public servants within the meaning ofsection 21 of the Indian Penal Code, 1860(XLV of 1860)

152. Rules.— (1) The Government may, forthe whole or any part of the State and forany society or class of societies, make Rulesfor the conduct and regulation of the businessof such society or class of societies, and forcarrying out the purposes of this Act.

(2) In particular, and without prejudice tothe generality of the foregoing power, suchRules may,—

(i) subject to the provisions of section 4,prescribe the designation of officers whoshall exercise powers vested in theRegistrar;

(ii) prescribe the forms to be used andthe conditions to be complied with in themaking of applications for the registrationof a society under section 7 and theprocedure in the matter of such application;

(iii) prescribe the classes and sub-classesof societies and the criteria thereof;

(iv) prescribe the matters in respect ofwhich a society may make, or the Registrarmay direct a society to make bye-laws andthe conditions to be followed in making,altering and abrogating bye-laws and theconditions to be satisfied prior to suchmaking, alteration or abrogation;

(v) prescribe the procedure to befollowed and conditions to be observed forchange of name or liability, amalgamation,transfer, division, conversion or re--construction of society;

(vi) prescribe the form and procedurefor an application under section 21 and theprocedure for re-construction of a societyunder that section;

(vii) prescribe the manner for enteringinto collaboration by any society or societieswith any Government undertaking or anyundertaking approved by the Governmentfor carrying on any business;

(viii) prescribe the manner of givingpublic notice of the proceedings ofderegistration of societies;

(ix) prescribe the conditions subject towhich the Official Assignee shall realise theassets and liquidate the liabilities, undersub-section (3) of section 25;

(x) prescribe the manner of giving publicnotice and the remuneration andallowances to be paid to the OfficialAssignee, under sections 25 (1) and 25 (4)respectively;

(xi) prescribe the conditions to becomplied with by a person applying foradmission or admitted as a member andprovide for the payment to be made andthe interests to be acquired before theexercise of the rights of membership;

(xii) prescribe, in the case of federalsociety, the manner of exercising votingrights by individual members;

(xiii) prescribe the procedure for theadmission of joint members and minorsand persons of unsound mind inheritingthe share or interest of deceased membersand provide for their rights and liabilities;

(xiv) provide for the withdrawal, removalor expulsion of members and for thepayments to them and for the liabilities ofpast members and the estate of deceasedmembers;

(xv) prescribe the conditions andprocedure for the transfer of share orinterest;

(xvi) provide for nomination of a personto whom the share or the interest of a


864

deceased member may be paid ortransferred;

(xvii) provide for ascertaining the valueof a share or interest of a past member ordeceased member;

(xviii) provide for inspection of bye-lawsand documents in the Registrar’s office andthe levy of fee for inspection and grantingcertified copies of the same;

(xix) provide for procedure for registeringthe address of a society and the change ofits address;

(xx) prescribe the particulars to beentered in the register of members besidesthe particulars mentioned in section 45;

(xxi) prescribe the fees to be levied bythe Registrar for inspection of bye-laws andlist of members of the Board of Directors ofthe societies registered under the Act;

(xxii) prescribe the manner of certifyingthe entries in the book, register or list keptby a society in the course of its business;

(xxiii) provide for the procedure to beadopted by a society with limited liabilityin order to reduce its share capital;

(xxiv) prescribe the period for and termsupon which Government aid may be givento societies and terms under which theGovernment may subscribe to the sharecapital of and guarantee the payment ofthe principal of and interest on debenturesissued by societies;

(xxv) prescribe the manner in whichfunds may be raised by a society or classof societies by means of shares ordebentures or otherwise and the quantumof funds so raised;

(xxvi) prescribe the forms in which asociety shall send requisition to employerunder section 49;

(xxvii) the formation and maintenance ofreserve fund and other funds, and theobjects to which such funds may beapplied and allocation and distribution ofthe net profit arrived thereafter;

(xxviii) the amount and percentage of netprofit to be contributed by a co-operativesociety for Co-operative Education Fundand its utilization;

(xxix) prescribe the modes of investmentof funds under section 57;

(xxx) prescribe other measures or actsbesides those mentioned in section 74;

(xxxi) the limit up to which a co-operativesociety can receive deposits and loans,condition for it;

(xxxii) prohibitions and restrictionssubject to which co-operative societies maytransact business with the persons whoare not members;

(xxxiii) the proportion of individual andco-operative society in the constitution ofthe committee and the general body ofco-operative society of which otherco-operative society is a member and thepower exercisable by such committee orgeneral body;

(xxxiv) provide for general meetings of

the members, for the procedure at such

meetings and the powers to be exercised

by such meetings;

(xxxv) the procedure for holding aspecial general body meeting and recoveryof expenses from delinquent officers of thecommittee;

(xxxvi) prescribe the conditions inwhich a member of a society may bedisqualified from voting;

(xxxvii) prescribe the fees for filing thereturns with the Registrar;



865

(xxxviii) prescribe the forms andprocedure for elections to the Board ofDirectors of societies to be conducted bythe Registrar;

(xxxix) prescribe the forms andprocedure for election of representativegeneral body of societies mentioned insection 70;

(xl) the procedure for holding of the

elections and the steps to be initiated for

such election before the expiry of the term,

appointment of an administrator on failure

to conduct elections and to conduct

elections and to conduct election within

ninety days, recovery of expenses from the

delinquent officers of the committee incases of default;

(xli) the procedure for making a motion

expressing lack of confidence in the

committee or any of its officer in the special

general body meeting convened for the

purpose and setting up an ad hoc

committee to conduct fresh elections with

in the period of ninety days;

(xlii) the modalities to be complied withbefore supersession of the committee of aco-operative society and constitution of thenew committee by the administrator beforethe expiry of his term;

(xliii) procedure for authorisation to

Sub-divisional Magistrate for securing

possession of records of a co-operative

society;

(xliv) prescribe the returns to besubmitted by a society to a Registrar andprovide for the persons by whom and theform in which such returns shall besubmitted;

(xlv) prescribe the period for which thebooks of accounts and supporting recordsand vouchers shall be preserved by thesocieties;

(xlvi) prescribe the form for therectification of defects discovered in thecourse of audit;

(xlvii) prescribe the procedure forconducting an audit, the matters on whichthe auditor shall submit a report, the formin which the statement of accounts shallbe prepared for his audit, the limits withinwhich the auditor may examine themonetary transactions of a society, theforms of audit memorandum and report andthe charges, if any, to be paid by a societyfor audit;

(xlviii) prescribe the procedure forappointment of auditors under section 89;

(xlix) the manner in which inspection,inquiry and inspection of books of indebtedco-operative society is to be conducted, thesecurity money to be deposited by acreditor for such inspection and the followup action to be take on the findingsincluding the rectification thereof;

(l) 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 section 89 and 92 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 tempered with

or destroyed or removed;

(li) provide for appointment of the

Registrar’s nominee or Board of Nominees,

procedure to be followed in proceedings

before the Registrar or his nominee or

Board of Nominees and for fixing and

levying the expenses for determining the

dispute and for enforcing the decisions or

awards in such proceedings;

(lii) prescribe the form in which a disputeshall be referred to the Registrar;


866

(liii) provide for the issue and service ofprocesses and for providing of servicethereof;

(liv) provide for the investigation ofclaims and objections that may be preferredagainst any attachment effected by theRegistrar;

(lv) prescribe the procedure for and themethod of recovery of any sums due underthis Act or the Rules;

(lvi) prescribe the procedure to befollowed for the custody of propertyattached under section 103;

(lvii) prescribe the procedure to befollowed in the execution of awards;

(lviii) prescribe the manner in which anyproperty shall be delivered to, and theterms and conditions subject to which suchproperty shall be held by a society undersection 110;

(lix) prescribe the procedure forattachment and sale of property for therealisation of any security given by a personin the course of execution proceedings;

(lx) prescribe the procedure andconditions for the exercise of the powersconferred under section 129 and theprocedure to be followed by a liquidatorand provide for the disposal of surplusassets;

(lxi) prescribe the matters in which anappeal shall lie from the orders ofliquidators appointed under section 127;

(lxii) prescribe the procedure to befollowed in presenting and disposing ofappeals;

(lxiii)prescribe the qualifications of themembers of the Tribunal;

(lxiv) prescribe in the case of appealslying to the State Government the authority

to which power of hearing appeals may bedelegated;

(lxv) prescribe the method ofcommunicating or publishing order,decision or award required to becommunicated or published under this Actor the Rules;

(lxvi) provide that the contravention ofany of the rule shall be an offence underthe Act;

(lxvii) provide for all others mattersexpressly required or allowed by this Actto be prescribed by Rules.

(3) The power to make rules conferred bythis section is subject to the condition of theRules being made after previous publications.

(4) All rules made under this section shallbe laid for not less than thirty days beforeeach house of the State Legislature as soonas possible after they are made, and shall besubject to such modifications as theLegislature may make during the session inwhich they are so laid, or the sessionimmediately following.

153. Service rules for employees ofco-operative societies.— The Governmentshall as soon as may be after thecommencement of this Act, direct allco-operative societies or class of co-operativesocieties to frame service rules for theiremployees and get them approved from themanagement.

154. Repeal and savings.— On the day onwhich the Goa Co-operative Societies Act,comes into force, the Goa Co-operativeSocieties Act, 2001 (Goa Act 36 to 2001) inforce in the State of Goa shall stand repealed:

Provided that the repeal shall not affect—

(a) the previous operation of the Act sorepealed or anything duly done or sufferedthereunder; or



867

(b) any right, privilege, obligation orliability acquired, accrued or incurredunder the Act so repealed; or

(c) any penalty, forfeiture or punishmentincurred in respect of any offencecommitted against the Act so repealed;or

(d) any investigation, legal proceedings

or remedy in respect of any such right,

privilege, obligation, liability, penalty,

forfeiture or punishment as aforesaid and

any such investigation, legal proceedings

or remedy may be instituted, continued or

enforced and any such penalty, forfeiture

or punishment may be imposed as if thatAct had not been repealed.

155. Companies Act not to apply.— For the

removal of doubt, it is hereby declared that

the provisions of the Companies Act,1956

(1 to 1956), shall not apply to societies

registered, or deemed to be registered, under

this Act.

156. Act to override other laws.— The

provisions of this Act shall have

effect notwithstanding anything incon-

sistent therewith contained in any other

law.

157. Removal of difficulties.— (1) If any

difficulty arises in giving effect to the

provisions of this Act, the Government may

by order, do anything not inconsistent with

such provisions of this Act for the purpose of

removing the difficulties:

Provided that no such order shall be

made, under this section after the expiry of

two years from the commencement of this

Act.

(2) Every order under this section shall be

laid, as soon as may be after it is made, before

the Legislative Assembly of Goa forratification.

ANNEXURE - II

Bulletin Part – I (No. 10) Dated 22 July, 2009Para 4

MOTION FOR EXTENSION OF TIME FORPRESENTATION OF REPORT OF SELECT

COMMITTEE ON THE GOA CO--OPERATIVE SOCIETIES ACT, 2001

MOTIONS FOR EXTENSION OF TIME FORPRESENTATION OF SELECT COMMITTEEREPORTS ON BILLS

(1) Shri Ravi Naik, Minister for Home movedthe following:

(i) “This House do extend the time forpresentation of the Report of the SelectCommittee on the Goa Police Bill, 2008 tothe duration of House”.

(ii) “This House do extend the time forthe presentation of the Report of the SelectCommittee on the Goa Co-operativeSocieties Act, 2001 to the duration of theHouse”.

ANNEXURE - III

Suggestions from Public

Suggestions from Sahakar Manch of Goa and

Thrift Co-operative Association Ltd. Goa

Section of Text of the Bye-lawAct No.

14 Amendment of Bye-laws of Society.

14- (3) The wording in the last two lines “providedthat the Society shall comply with allrequirements necessary for amendment ofBye-laws” --------- be reviewed.

47 Exemption for certain taxes, fees and duties

In section 47 sub-section (1) & (2) the word“remit” be substituted by word “exempt”.

55/56 Section 55 and 56 be rearranged in order asunder.

55) – Contribution to Co-operative Education Fund.56) – Contribution to charitable purpose.


868

58 Section 58- Reserve and other funds beinserted before 57 investment of funds,hence serial number be rearranged.

69(3) The size of Board of Directors shall be inaccordance with Bye-laws subject to amaximum of 15 “Elected Directors”“Excluding” the Chief Executive who shallbe an Ex Officio Director of Board and notmore than 1/5th of total number of Directorshall be nominated Directors on Board.

73(1) Add the Following

(d) – Has not attended three annual generalbody meetings of the Society preceding theelection of Board.

74 (a) – The wording “or within extended periodof three months by Register” be added afterword “nine months”.

77(2) The word “one third” be substituted by“majority”.

86 After word “bye-laws” added wording “orservice rules framed for the purpose”.

102-(3) Sub-section “e” be added as “In any case,(e) the dispute relating to loans by Co-operative

Societies filed before the Registrar shall bedisposed off within period of 90 days fromdate of filing dispute.

110 Sub-section “e” be added as the executionproceedings of loan recovery shall be finallydecided by the Registrar within a period ofninety days.

142(2) After wording “any statement made by him”the wording “in a Judicial proceeding” beadded.

142 Sub-section (4) & (6) shall be deleted.

148 “as” Arrears of Land revenue.

4 Recovery Officers- Powers delegated toManager, Chief Executive or Officer

in-charge authorized by Board.

15 Right to information (1) (2)Section 157 shall be deleted as it wouldamount to discharge of secrecy of the

Society required under Banking Business

right is already granted in section 38.

The section 38 – “Right of members to seebooks etc. included in the Act will provideright to member to seek information,inspection of books etc., and relativeinformation relating to his own transactionentered in Books and minutes of GeneralBody and Board Meeting. The Society may

also furnish copy of the same.

Suggestion from Deendayal Nagari Sahakari

Pathsaunstha Maryadit

49(6) Deduction from salary to meet Co-operativeSociety’s claim in certain cases.

This section shall be applied for also suretiesof the loanee member provided that all effortsshould be made to recover the dues fromloanee member before going to the attach-ment of salary of the surety of the loaneemember as the maximum loaning is done atthe urban society are based on the salary andthis section will harm the recovery of thesociety.

56 Contribution to Co-operative Education Fund.

Amount of contribution to the said educationfund should be brought down to Rs. 50000.00as financial position of all the co-operativesocieties are not so well to contribute thesum extent to rupees one lakh so it may bereduced.

157(1) Right to information

Any member or creditor having interest inthe affairs of the co-operative society mayseek information relating to any transaction(not the personal transaction of any othermember) of the co-operative society and forthat purpose may be provided a certified copyof above said document within thirty daysfrom the date of receipt of application relatingto such transaction on payment of such feeas may be specified to maintain secrecy ofthe members transaction.

89 Audit

(a) There should be provision for the societiesto do their internal audit through any com-petent person who is holding Degree incommence and Diploma in co-operation or



869

having ten years experience in co-operativefield or accounting. It will help the smallsocieties cost wise rather than to spent hugeamount of audit fees on Chartered Accoun-tants and also there by generate the employ-ment in the Co-operative sector.

102 Procedure for settlement of disputes a powerof Registrar, his nominee or Board of

Nominees.

There should be time limit for the settlementof disputes which will strengthen therecovery process.

Suggestions from Bicholim Urban Co--operative Bank Ltd., and other

four Banks

1. Definition No. 32 “Member”.— It may be statedas follows

Member means a person or legal entity.This is to make the definition more specific.

2. Section 34.— Manner of exercising vote byproxy

It appears voting by proxy is restricted only toCo-operative Societies. Normally provision for votingby proxy to local authority, a firm, a company isavailable in the Co-operative Sector. Therefore thesame should be provided for.

3. Section 36: Transmission of interest on death ofa member

Sub-section (2) ---------- “Any such nominee, heiror legal representative as the case may be mayrequire the society to pay to him the value of theshare-------”. In the above provision it may be statedas face value of the share.

Normally, shares of Co-operative Banks orSocieties are not listed on the Stock Exchange ortraded in the primary or secondary market. Besides,dividend is being distributed annually by profitmaking societies. As such while refunding sharesthe computation is made based on face value only.

4. Section 49.— It appears this section does notapply to sureties for the purpose of deduction ofloan installments at source. This section providedthat recovery could be effected from the suretiesonly after passing of award or order by theCompetent Authority. This will seriously hamper

recovery of loans in the Co-operative Societies. Ifimplemented the very purpose of effecting recoveryand also pressurizing the borrower shall bedefeated. Besides, getting award or order mayinvolve inordinate delay thereby putting therecovery process in jeopardy. Deduction of loaninstallments from the salary of surety results into amoral and legal obligation for the borrower to beprompt in repayment of regular monthlyinstallments. We therefore earnestly request you tomake this section applicable to sureties too asavailable in the Maharashtra State Co-operativeSocieties Act.

5. Section 57 and 59.— The word “Reserve Bank”may be written as Reserve Bank of India.

6. Section 64.— Writing of Bad Debts

It is observed that approval of Registrar ismade necessary in this section. However, the GoaCo-operative Societies Act, 2001, rule 40 does notmention about the approval of Registrar. Wesincerely feel that approval by the Registrar maybe waived and may be insisted upon only in caseof State Aided Society.

7. Section 100 (1-a).— Limitation–

This section indicates the date from whichlimitation period is to be calculated but the overallperiod within which action should be initiated isnot stated as provided in sub-section 1(b), (c), (d).We feel that to avoid any confusion, the specificperiod as per provision of Indian Limitation Act,1963 may be stated.

8. Section 104.— Decision of Registrar or nomineein case of disputes

It is observed that no specific period is stipulatedfor deciding the dispute or number of adjournmentsthat could be allowed. We sincerely feel that toaccelerate recovery process and to bring in anelement of seriousness in the matter, specific periodmay be prescribed.

9. Section 105.— Appeal against decision ofRegistrar

It is observed that this provision is being misusedby the willful defaulters; they prefer an appeal inthe Tribunal mostly for the purpose of prolongingthe matter. In order to deter such parties fromresorting to refer an appeal, we recommend that itmay be made mandatory for the defaulters to


870

deposit certain percentage of awarded amount atthe time or preferring an appeal in the tribunal(such kind of provision is available in“Securitisation Act” promulgated by Governmentof India).

10. Section 108.— Transfer of property

Please see 6th line of section 108(i) underclause (a) or (b) of section 110, which should be 106instead of 110.

It is observed that this section does not mentionas to how many times auction should be conductedbefore it is transferred in the name of the Society.We request that the same may be statedcategorically.

11. Section 157.— Right to information

In this regard we humbly submit as follows

(a) Right to Information Act, 2005 is applicableonly to the entities established by the StateGovernment or Central Government or entitiessubstantially financed directly or indirectly by theappropriate Government therefore this Section shallbe applicable only to State Aided Societies.

(b) We note that section 38 of the draft Actalready provides for a member to seek necessaryand relevant information.

(c) In case of Co-operative Banks and CreditSocieties, it is extremely important and necessaryto observe principles of fidelity and secrecy.

(d) Hon’ble High Court of Bombay has alreadydecided in the case of Punjabrao Deshmukh UrbanCo-operative Bank about non applicability of Rightto Information Act to Co-operative Banks.

In view of the above we sincerely feel that thissection shall be suitably amended and madeapplicable to the State Aided Entities.

Other Suggestions

1. Some deliberations on “Camp Court Concept”may be made and provided for.

2. We sincerely feel that fee structure pertainingto Arbitration/Execution cases may be prescribed.

3. There is no mention that a member cannotobtain loan from two societies as provided in section

43 of Maharashtra Co-operative Societies Act. Thismay give an advantage to Employee Credit Societieswho provide loans to their staff and stop deductionof the Bank.

4. Rules as required and in accordance with theprovisions of the proposed Act may be framed.

We request you to look into the matter and do

the needful.

Suggestions from Lt. Col. S. P. Ohrie (Retd.)

1. a. In the light of above discussion it issubmitted that the use of Proxy voting inCo-operative Societies by NRI members, who cannotattend the meetings, has become an imperativenecessity in the context of present day life style. Itis therefore prayed that section 69 of the Act bedeleted and section 28 suitably amended to permituse of Proxy voting. It is further put up forconsideration that in case authorities are inclinedto agree to the above suggestion then the proposedremedial measures be published in bimonthly NRINews letter so as to convey to the NRIs the eagerand earnestness of the Chief Minister’s promise tothem at the Gomant Vishwa Sammilan.

2. Removal of a member and cessation ofmembership section 25(3) and section 24

(a) Section 25 (3) of the Act lays down that amember who has not attended three consecutiveAGMS of the Society may be removed from thesociety by the general body by a resolution aftergiving an opportunity to the member ofrepresenting his case to the general body. Section24 of the Act stipulates that a removed memberthereafter ceases to be a member of the Society.

(b) If the intention of these Sections is to compelmore attendance at the Society’s AGMs then it isconjectured it may not be achieved, especially inthe case of NRI members. The latter’s visit tohomeland are few and far between and also of shortduration for hardships explained in Para 11 theirvisits with the date of meeting of the Society, whichare varying every year and held at short notice, willmake their problems more complicated and wellnigh impossible to undertake.

(c) It is to be noted that the Act and Rules theretois silent regards the disposal of the properties of‘removed’ members from the various types ofhousing societies. This is indeed a very important



871

question which will continue to be a source ofextreme worry to members.

(d) The more important aim is to encouragemembers take active and keen interest in the affairsof the society, which task can conveniently beachieved by permitting them nominate their proxyrepresentative in lieu of personal physicalattendance. They can brief their proxy of their viewson matters being brought up before the meetingwhich will be conveyed at the meeting throughProxy members hence will be taken into accountbefore the issue is resolved.

3. a. In view of the above it is all the moreimperative that Proxy voting be introduced inCo-operative Housing Societies and such section

25(3) be deleted.

________

ANNEXURE - IV

MINUTES OF THE MEETING OF THE SELECTCOMMITTEE ON THE GOA CO-OPERATIVESOCIETIES ACT, 2009 HELD ON MONDAY,

14TH SEPTEMBER, 2009

1. The Committee met at 10.30 a.m. on Monday,14th September, 2009 in the Public AccountsCommittee Room, Assembly Complex, Porvorim,Goa.

2. The following were present:

CHAIRMAN


MEMBERS

Shri Nilkanth HalarnkarShri Aleixo Reginaldo Lourenco


Shri J. N. Braganza SecretaryShri N. B. Subhedar Under SecretaryShri H. F. Noronha Section officer

GOVERNMENT SECRETARIAT

Shri P. K. Patidar Registrar Co-op. SocietiesShri C. D. Gawade Dy. Registrar (Co-op.)

3. The Committee studied and scrutinized theDraft Model of Co-operative Societies Act, 2009.

4. The Committee took up the list of new sectionsfor inclusion in the Model Act, 2009 that waspresented by the Registrar of Co-operative Societies.

5. The new sections taken up were:

(a) section 25A Liability of Co-operative bankto the Depositor Insurance and Credit GuaranteeCorporation.

(b) section 34 Proviso to be added for proxyvoting by NRI.

(c) section 68(8) fixing of liability for Membersof the Committee.

(d) section 131 (5) dissolution of Co-operativeSociety.

6. The Committee accepted the followingsuggestions received from the Public and directedthat new draft of the respective sectionsincorporating the suggestion be submitted to theCommittee by Department after getting them dulyvetted by Law Department.

— (1) Amendment to section 56 - Contribution toCo-operative Education Fund.

— (2) Amendment to section 104 - Procedure forsettlement of dispute on power of Registrar,his nominee or Board of Nominees on fixingof time limit for settlement of disputes(one year be prescribe).

— (3) Rearrangement of section 55 - Contributionof Co-operative Education Fundand 56-Contribution to Charitable purposes.

— (4) section 58 - Reserve and other funds beinserted before section 57.

— (5) section 69(3) - Total number of directorscan be 15 excluding the CEO.

— (6) section 142(2) - After wording “any state-ment made by him” the wording “in thejudicial proceeding” be added.

— (7) section 157- inserting word “his” in placeof “any”.

— (8) section 57 and 59 - the word “Reserve Bank”may be written as “Reserve Bank of India”.

— (9) section 108 - stating categorally thenumbers of times an auction should be


872

conducted before it is transferred in thename of the society.

— (10) section 25(3) - to allow proxy voting inCo-operative Housing Societies only forservices personnel’s and Non ResidentIndians.

7. The Committee directed the Department toexamine legally, whether a defaulter going inappeal against a decision of the Registrar shouldbe liable to deposit 50% of the award amount beforeappeal can be considered.

8. The Committee decided to fix the nextmeeting on 16th October, 2009 at 10.30 a. m.

The Committee then adjourned at 12.05 p. m.

ANNEXURE - V

MINUTES OF THE MEETING OF THE SELECTCOMMITTEE ON THE GOA CO-OPERATIVESOCIETIES ACT, 2009 HELD ON FRIDAY,

16TH OCTOBER, 2009

1. The Committee met at 10.30 a.m. on Friday,16th October, 2009 in the Public AccountsCommittee Room, Assembly Complex, Porvorim,Goa.


CHAIRMAN


MEMBERS

Shri Nilkanth HalarnkarShri Deepak DhavalikarShri Francis D’Souza


Shri J. N. Braganza SecretaryShri H. F. Noronha Section officer


Shri V. P. Shetye Secretary LawShri P. K. Patidar Registrar Co-op. SocietiesShri C. D. Gawade Dy. Registrar (Co-op.)

3. At the outset the Committee objected toinclusion of section 49(6).

4. The Committee directed to the Secretary (Law)to examine section 49 (6) in view of Supreme CourtJudgment (copy handed over) and to report to theCommittee.

The Committee then adjourned at 11.30 a.m.

ANNEXURE- VI

MINUTES OF THE MEETING OF THE SELECTCOMMITTEE ON THE GOA CO-OPERATIVE

SOCIETIES ACT, 2009 HELD ON THURSDAY,13TH MAY, 2010

1. The Committee met at 10.30 a.m. on Thursday,13th May, 2010 in the Public Accounts CommitteeRoom, Assembly Complex, Porvorim, Goa.


CHAIRMAN


MEMBERS

Shri Aleixo Reginaldo LourencoShri Pandurang Madkaikar


Shri J. N. Braganza SecretaryShri N. B. Subhedar Joint SecretaryShri H. F. Noronha Section officer


Shri V. K. Jha Secretary, Law (link officer)Shri D. C. Shaoo Secretary, Co-operationShri P. K. Patidar Registrar Co-op. SocietiesShri S. G. Marathe Joint Secretary, Law

3. At the outset the draft copies of the said Actgiven by Registrar of the Co-operative Societieswere circulated to the Committee. The Committeewhile scrutinizing the Act decided that section157 be inserted in Chapter III, after section 32.

4. The Committee further directed that sections137 and 57 be also suitably amended.

5. It is also decided to drop clause 6 of section 49.



873

6. The Committee directed the Registrar toincorporate all subsequent amendments and othersuggestions and to submit a fresh draft to theCommittee.

7. All new sections are to be highlighted forready reference and be vetted by Law Departmentaccordingly.

8. The next meeting has been fixed on 9th June,2010 at 3.30 p.m.

The Committee then adjourned at 12.30 p.m.

ANNEXURE - VII

MINUTES OF THE MEETING OF THE SELECTCOMMITTEE ON THE GOA CO-OPERATIVE

SOCIETIES ACT, 2009 HELD ON WEDNESDAY,9TH JUNE, 2010

1. The Committee met at 3.30 p. m. on Wednesday,9th June, 2010 in the Public Accounts CommitteeRoom, Assembly Complex, Porvorim, Goa.


CHAIRMAN


MEMBERS

Shri Francis D’SouzaShri Laxmikant Parsekar


Shri J. N. Braganza SecretaryShri N. B. Subhedar Joint SecretaryShri H. F. Noronha Section officer


Shri V. K. Jha Secretary, Law (link officer)Shri D. C. Shaoo Secretary, Co-operationShri P. K. Patidar Registrar Co-op. SocietiesShri S. G. Marathe Joint Secretary, Law

3. The Committee scrutinized the draft modeland adopted the report thereunder.

4. The Committee agreed that the same beplaced before the House on the first day of ensuingsession.

The Committee then adjourned at 4.10 p.m.

Department of Inland WaterwaysCaptain of Ports

___

Notification

CP/H.S.O/138/2010

Read: (1) Government Notification No. I & L//V/118/67/2891 dated 29-11-1967,published in the Official Gazette,Series I No. 36 dated 7-12-1967.

(2) Government Notification No.I-11017/OSB/2004/COP/IWT/615dated 17-02-2006, published in theOfficial Gazette, Series I No. 48dated 02-03-2006.

In exercise of the powers conferred bysection 5 of the Indian Port Act, 1908 (CentralAct 15 of 1908) and in partial modification ofthe Government Notification No. I & L/V/118//67/2891 dated 29-11-1967 published inthe Official Gazette, Series I No. 36 dated07-12-1967 and Government NotificationNo. I-11017/OSB/2004/COP/IWT/615 dated17-02-2006, published in the Official Gazette,Series I No. 48 dated 02-03-2006, the Govern-ment of Goa hereby alters the limits of the Ports,Tiracol and Talpona and hereby declares theextent of limits of the said ports as follows:—

(a) Tiracol–On the North: From the pointon the coast in the parallel of latitude15° 43’ 39.0” North, due West along the sameparallel point in longitude 73° 34’ 00.0” East.

On the West: From the position in latitude15° 43’ 39.0” North and longitude 73° 34’00.0” East in due South direction to theposition in latitude 15° 42’ 00.0” North andlongitude 73° 34’ 00.0” East.

On the South: From the position in latitude15° 42’ 00.0” North and longitude 73° 34’00.0” East, due East along the parallellatitude 15° 42’ 00.0” North to a point wherethis parallel meets the coast.

On the East: All the tidal waters of riverTiracol falling within the territorial inlandwaters of the State of Goa.

(b) Talpona–On the North: From the pointon the coast in the parallel of latitude15° 01’ 36.0” North, due West along the sameparallel point in longitude 73° 53’ 36.0 East.

On the West: From the position in latitude15° 01’ 36.0” North and longitude 73° 53’


874

36.0” East in due South direction to theposition in latitude 14° 55’ 00.0” North andlongitude 73° 53’ 36.0” East.

On the South: From the position in latitude14° 55’ 00.0” North and longitude 73° 53’36.0” East, due East along the parallellatitude 14° 55’ 00.0” North to a point wherethis parallel meets the coast.

On the East: All the tidal waters of riverTalpona and river Galgibag.

The above mentioned limits shall include allwharves and other works made on behalf ofthe public for convenience of traffic, for safetyof vessels, or for the improvement, maintenanceor good Government of the port and it’sapproaches, whether within or without highwater mark, and subject to any rights of privateproperty therein, any portion of the shore orbank within fifty yards of high water mark.

By order and in the name of theGovernor of Goa.

Capt. James Braganza, Captain & ex officioJoint Secretary (Ports).

Panaji, 12th August, 2010.

——— ———

Department of Personnel___

Notification

1/25/86-PER (P.F. I)

In exercise of the powers conferred by theproviso to Article 309 of the Constitution ofIndia, and in supersession of the RecruitmentRules for the post of Sales Tax Officer notifiedvide Government Notification No. 1/17/78-PERdated 12-9-1986 and published in the OfficialGazette Series I No. 31 dated 30-10-1986,theGovernor of Goa hereby makes the followingrules to regulate the recruitment to the GoaGeneral Service, Group ‘B’, Gazetted, Non--Ministerial post in the Commercial TaxDepartment, Government of Goa, namely:—

1. Short title, application and commence-ment.— (1) These rules may be called theGovernment of Goa, Commercial TaxDepartment, Group ‘B’, Gazetted, Non--Ministerial post, Recruitment Rules, 2010.

(2) They shall apply to the post specified incolumn (1) of the Schedule to these rules(hereinafter called as the “said Schedule”).

(3) They shall come into force from the dateof their publication in the Official Gazette.

2. Number, classification and scale of pay.—The number of posts, classification of thesaid post and the scale of pay attachedthereto shall be as specified in columns (2)to (4) of the said Schedule:

Provided that the Government may vary thenumber of posts specified in column (2) ofthe said Schedule from time to time subjectto exigencies of work.

3. Method of recruitment, age limit and otherqualifications.— The method of recruitment tothe said post, age limit, qualifications and othermatters connected therewith shall be asspecified in columns (5) to (13) of the saidSchedule.

4. Disqualification.— No person who hasentered into or contracted a marriage with aperson having a spouse living or who, havinga spouse living, has entered into or contracteda marriage with any person, shall be eligiblefor appointment to the service:

Provided that the Government may, if satisfiedthat such marriage is permissible under thepersonal law applicable to such person and theother party to the marriage and that there areother grounds for so doing, exempt any personfrom the operation of this rule.

5. Power to relax.— Where, the Governmentis of the opinion that it is necessary or expedientso to do, it may, by order, for reasons to berecorded in writing, and in consultation withthe Goa Public Service Commission, relax anyof the provisions of these rules with respectto any class or category of persons.

6. Saving.— Nothing in these rules shall affectreservation, relaxation of age limit and otherconcessions required to be provided forScheduled Castes and other special categories ofpersons in accordance with the orders issued bythe Government from time to time in that regard.

These rules are issued in consultation withthe Goa Public Service Commission conveyedvide its letter No. COM/II/13/43(1)/2010/1337dated 2-8-2010.

By order and in the name of the Governorof Goa.

Yetindra M. Maralkar, Joint Secretary(Personnel).

Porvorim, 9th August, 2010.



875

SC

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876

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n fo

r a

pp

oin

tme

nt

on

d

ep

uta

tio

n.

Sim

ila

rly,

de

pu

ta-

tio

nis

ts s

ha

ll n

ot

be

eli

gib

le f

or

co

nsid

e-

rati

on

for

ap

poin

tmen

tb

y p

rom

otio

n.

Per

iod

of

de

pu

tati

on

in

clu

din

gp

eri

od

of d

ep

uta

tion

ina

no

the

r e

x-c

ad

re p

ost

he

ld

imm

ed

iate

lyp

rec

ed

ing

th

isa

pp

oin

tme

nt

in t

he

sa

me

or

so

me

oth

er

or

ga

ni

za

ti

on

//d

ep

art

me

nt

sh

all

ord

ina

rily

no

t e

xce

ed

3 y

ea

rs.

reg. no. gr/rnp/goa/32 rni no....

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