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- Any person other than a co-operative society carrying on business under any name or title of which the world “co-operative” or its equivalent in any Indian language, is part, without the sanction of the Lieutenant-Governor shall be punishable with fine which may extend to two hundred rupees and in the case of continuing breach with a further fine which may extend to five hundred rupees for every day during which the breach is continued after conviction for the first such breach.
- Any member or past member or the nominee, heir or legal representative of a deceased members of a co-operative society who contravenes the provisions of section 35 and 37 by disposing of any property in respect of which the society is entitled to have a first charge under that section or do any other act the prejudice of such claim, shall be punishable with fine which may extend to five hundred rupees.
- A co-operative society or an officer or member thereof willfully making a false return or furnishing false information, or any person willfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provision of this Act or willfully not furnishing any information or required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two hundred rupees.
- Any employer who, without sufficient cause, fails to pay to a cooperative society the amount deducted by him under section 44 within a period of fourteen days from the date of on which such deduction is made shall, without prejudice to any action that may be taken against him under any law for the time being in force be punishable with fine which may extend to five hundred rupees.
- Any officer or custodian who willfully fails to hand over custody of books, records, cash, security and other property belonging to a cooperative society of which he is an officer or custodian, to a person entitled under section 33, 53, 54, 55 or 66 shall be punishable with fine which may extend to two hundred rupees and in the case of continuing breach with a further fine which may extend to five hundred rupees for every day during which the breach is continued after conviction for the first such breach.
- Any person who fraudulently acquires or abets in the acquisition of any such Property which is the subject to a charge under sections 36 and 37 shall be punishable with fine which may extend to two hundred rupees.
83. Cognizance of offence
- No court inferior to that of a magistrate of the first class shall try any offence under this Act.
- No prosecution shall be instituted under this Act without the previous sanction of the Registrar and such sanction shall not be given without giving to the person concerned a reasonable opportunity to represent his case.
84. Address of societies
Every co-operative society shall have an address registered in the manner prescribed to which all notices and communications may be sent and shall send to the Registrar notice of every change thereof within thirty days of such change.
85. Copy of Act, rules and bye-laws, etc. to be open to inspection.
Every co-operative society shall keep a copy of this Act, the rules and its bye-laws and also a list of its members, open to inspection free of charge at all reasonable times at the registered address of the society.
86. Prohibition against the use of the word “co-operative” :
No person other than a cooperative society shall trade or carry on business under any name or title or which the word "cooperatives" or its equivalent in any Indian language is part.
Provided that nothing in this section shall apply to the use by any person or his successor-in- interest of any name or title under which he carried on business at the date on which the Co-operative Societies Act, 1912, came into operation.
87. Power to exempt societies from conditions as to registration.
Notwithstanding anything contained in this Act, the Lieutenant-Governor may, by general or special order and subject to such conditions, if any, as he may impose, exempt any society or class of societies from any of the requirements of this Act as to registration.
88 Power to exempt co-operative societies from provisions of the Act.
The Lieutenant-Governor may, by general or special order, to be published in the Delhi Gazette, exempt any cooperative society or any class of cooperative societies from any of the provisions of this Act, or may direct that such provisions shall apply to such societies or class of societies with such modifications as may be specified in the order.
89. Liquidator to be public servant.
Any person appointed as liquidator under the provisions of this Act or the rules shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
90. Notice necessary in suits
No suit shall be instituted against a cooperative society or any of its officers in respect of any act touching the business of the society until the expiration of three months next after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left.
91. Companies Act, not to apply.
The provisions of the companies Act, 1956, shall not apply to cooperative societies.
92. Saving of existing societies.
- Every society now existing which has been registered under the Co-operative Credit societies Act, 1904 or under the Co-operative Societies Act, 1912, or under he Bombay Co-operative Societies Act, 1925 as in force in the Union Territory of Delhi, shall be deemed to be registered under the corresponding provisions of the Act, and its bye-laws shall so far as the same are not inconsistent with the express provisions of this Act, continue in force until altered or rescinded.
- All appointments, rules and orders made, notifications and notices issued and suits and other proceedings instituted under the said Acts shall, so far as they are consistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made canceling registration of a society shall be deemed, unless the society has already been finally liquidated, as an order issued under section 63 for its being wound up.
93. Bar of Jurisdiction of court.
- Save as provided in this Act, no civil or revenue court shall have any jurisdiction in respect of -
- The registration of a co-operative society or its bye-laws or of an amendment of a bye-law.
- The removal of committee.
- Any dispute required under section 60 to be referred to the Registrar; and
- Any matter concerning the winding up and the dissolution of a co-operative society
- While a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against, the liquidator as such or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose.
- 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.
94. Power of civil courts.
- In exercising the functions conferred on him by or under this Act, the Registrar, the arbitrator or any other person deciding a dispute under section 61 and the liquidator of a co-operative society or person entitled to audit, inspect or hold an inquiry and the Tribunal, shall have all the powers of a civil court, while trying a suit under the Code of civil Procedure, 1908, in respect of the following matters, namely -
- Summoning and enforcing the attendance of any person and examining him on oath.
- Requiring the discovery and production of any document.
- Proof of facts by affidavits; and
- Issuing commissions for examination of witnesses.
- In the case of an affidavit, any officer appointed by the Registrar, the arbitrator or any other person deciding a dispute and the liquidator or the Tribunal, as the case may be, may administer the oath to the deponent.
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.
96. Qualifications, remuneration and other conditions of service of employees of co-operative societies.
- The Lieutenant-Governor shall as soon as may be after commencement of this Act, constitute a common service comprising of officers and other employees of different classes of co-operative societies and shall determine the number and designation of such officers and other employees.
- The Lieutenant-Governor shall make rules regulating the qualifications, remuneration, allowances, recruitment and other conditions of service of such officers and other employees of the cooperative societies.
- The Lieutenant Governor may, for any co-operative society or class of co-operative societies, make rules to carry out the purposes of this Act. (2) In particular, and without prejudice to the generally of the foregoing power, such rules may provide for all or any following matters, namely -
- The maximum number of shares or portion of the capital of a co-operative society which may, subject to provisions of section 6, beheld by a member.
- The form to be used and the conditions to be complied with in the making of applications for the registration of a society and the procedure in the matter of such applications.
- The procedure and conditions for change in the form and extent of the liability of a co-operative society.
- The matters in respect of which the society may or shall make bye-laws and for the procedure to be followed in making, altering and abrogating bye-laws and the conditions to be satisfied prior to such making, alteration or abrogation.
- The conditions to be complied with by persons applying for admission or admitted as members, for the election admission of members, and for the payment to be made and the interest to be acquired before the exercise of the right of membership.
- The manner in which funds may be raised by means of shares and debentures or otherwise.
- For general meeting of the members and for the procedure at such meetings and the powers to be exercised by such meeting.
- The prohibitions and restrictions subject to which societies may transact business with the persons who are not members.
- The proportion of individuals and societies in the constitution of the committee of management and the general body of a co-operative society of which another co-operative society is a member.
- The determination of cooperative societies or class of cooperative societies for the purpose of sub-section, (1) of section 31, and subject to the provisions of the said section, the- election and nomination of members of committees, the appointment of election officers and the suspension and removal of the members and other officers, and for the powers to be exercised and the duties to be performed by the committees and other officers.
- The area of agricultural land, the conditions required to be fulfilled for the purpose of sub-section (6) of section 31.
- The appointment and regulation of work entrusted to person or persons replacing the committee in the pursuance of section 32.
- Prohibiting a cooperative society from electing a defaulting member on Its committee or to be its representative.
- The accounts and books to be kept by a cooperative society and the audit of such accounts and the charges, if any, to be made for such audit, and for the periodical publication of a balance-sheet showing the assets and liabilities of a cooperative society.
- The returns to be submitted by a cooperative society to the Registrar, the persons by whom and the form in which such returns shall be submitted and in case of failure to submit any such returns for levy of expenses of preparing it.
- The persons by whom and the form in which copies of the entries in books of societies may be certified and for the charges to be levied for the supply of such copies.
- The formation and maintenance of a register of members and where the liability of the members is limited by shares, of a register of shares.
- The appointment of an arbitrator to decide disputes.
- The procedure to be followed in proceedings before the Registrar, arbitrator or other persons deciding disputes including the appointment of a guardian for a party to the dispute who is a minor or who, by reason of unsoundness of mind or mental infirmity is incapable of protecting his interests, and the levy of the expenses relating to such proceedings.
- The withdrawal and expulsion of members and for the payments, if any, to be made to members who withdraw or are expelled and for the liability of past members and of the estates of deceased members.
- The mode in which the value of a deceased member's share or interest shall be as-curtained and for the nomination of a person to whom such share or interest may be paid. or transferred.
- The payments to be made and conditions to be complied with by members applying for loans, the period for which any loans may be made and the maximum amount which may be lent, to any member.
- The formation and maintenance of reserve funds and other funds and the objects to which such funds may be applied, and for the investment of any funds under the control of a cooperative society.
- The extent to which a cooperative society may limit the number of its members.
- The conditions under which profits may be distributed to the members of a cooperative society with unlimited liability, and the maximum rate of dividend which maybe paid by cooperative societies.
- The calculation and writing off of bad debts by cooperative societies.
- The procedure to be followed by liquidator appointed under section 66 in respect of provisions of section 67.
- The procedure to be followed in presenting and disposing of appeals under this Act.
- The form of orders referred to in sections 71 and 72.
- Qualifications of the members of the Tribunal.
- The issue and service of processes and for proof of service thereof.
- The manner of effecting attachment.
- The custody, preservation and sale of property under attachment.
- The investigation of claims by persons other than the defaulter to any right or interest in the attached property, and for the postponement of the sale pending such investigation.
- The immediate sale of perishable articles.
- The inspection of documents in the office of the Registrar or of any other officer or authority and the levy of fees for granting certified copies of the same.
- The terms and conditions on which the Central Government may make share-capital contribution or give assistance, financial or other, to societies and the terms and conditions on which the Central government may guarantee the payment of the principal or interest on debentures issued by societies or loans raised by them.
- The manner in which funds may be raised by a society or a class of societies by means of shares or debentures or otherwise and the quantum of funds so raised.
- For giving reasonable notice of the charge under section 36 and 37.
- Qualifications, remuneration, allowances and recruitment and the conditions of service of officers and other employees of a society or class of societies.
- The method of communicating or publishing any order, decision or award required to be communicated or published under this Act or the rules.
- Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification to the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
98. Repeal and Savings
On the day on which the Delhi Co-operative Societies Act, 1972 comes into force the Bombay Co-operative Societies Act, 1925 in force in the Union Territory of Delhi shall stand repeated.
- Provided that the repeal shall not affect -
- The previous operation of the Act so repealed or anything duly done or suffered there under; or
- Any right, privilege, obligation or liability acquired accrued or incurred under the Act so repealed: or
- Any penalty, forfeiture or punishment incurred in respect of any offence committed against the Act so repealed; or
- Any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed as if that Act had not been repealed.
- The previous operation of the Act so repealed or anything duly done or suffered there under; or
Last Updated Date :- 18-06-2018
Page last updated on: 27-01-2023