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- The Lieutenant-Governor may appoint a person to be the Registrar of Co-operative Societies for the Union Territory of Delhi and may appoint other persons to assist him.
- The Lieutenant-Governor may, by general or special order, confer on any person appointed to assist the Registrar all or any of the Powers of Registrar under this Act.
- Every person appointed to assist the Registrar shall exercise the powers conferred on him under sub-section (2) subject to the general guidance, superintendence and control of the Registrar.
- The Lieutenant-Governor may, by notification in the Delhi Gazette and subject to such conditions as he may think fit to impose, confer of such federal society, and every such federal society or officer on whom the powers of the Registrar are so conferred shall exercise such powers under the general guidance, superintendence and control of the Registrar.
4. Societies which may be registered.
- Subject to the provision hereinafter contained, a society which has as its object the promotion of the economic interests of its members in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act with or without limited liability.
- Provided that no society shall be registered if it likely to be economically unsound or the registration of which may have an adverse effect on the development of co-operative movement.
- Provided further that, unless the Lieutenant-Governor by general or special order otherwise directs, the liability of the society of which a member is a co-operative society shall be limited.
- The word "limited" or its equivalent in any Indian language shall be the last word in the name of every society registered under this act with limited liability.
5. Restriction on registration
- No society other than a federal society shall be registered under this Act unless it consists of at least ten persons (each of such person being a member of different family), who are qualified to be members under this Act and who reside in the area of operation of the society.
Explanation - For the purposes of this section the expression "member of a family" means wife, husband, father, mother, grand-mother, step-father, step-mother, son, unmarried daughter, unmarried step-daughter, step-son, grandson, unmarried grand daughter, unmarried sister, unmarried half-sister, brother, half-brother, and wife of brother or half-brother.
6. Restriction on holding of shares
- No member-other than the Central Government or a co-operative society shall hold more than such portion of the share-capital of a co-operative society, subject to a maximum of one-fifth, as may be prescribed or have or claim any interest in the shares of such society exceeding ten thousand rupees, whichever is less.
7. Application for registration.
- For the purposes of registration, an application shall be made to the Registrar.
- The application shall be signed -
- in case of society of which no member is a co-operative society, by at least ten persons qualified in accordance with the requirements of section 5, and
- in case of a society of which a member is a co-operative society, by a duly authorized person on behalf of every such society and where all the member of the society are not co-operative society, by ten other members, or, when there are less than ten other members, by all of them.
8. Power of the Registrar to decide certain questions.
- Where any question arises whether for the purpose of this Act a person resides in the area of operation of a society or not, or whether a society is of same type as an-other society or a different type, the question shall be decided by the Registrar whose decision shall be final.
- If the Registrar is satisfied -
- that the application complies with the provisions of this Act and rules.
- that the objects of the proposed society are in accordance with section 4.
- that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and
- that the proposed society has reasonable chances of success, the Registrar may register the society and its bye-laws.
- that the application complies with the provisions of this Act and rules.
- When the Registrar refuses to register a society, he shall communicate the order of refusal, together with the reasons therefore, to such of the applicants as may be prescribed.
- The application for registration shall be disposed of by the Registrar within a period of three months from the date of receipt thereof by him.
- Provided that if the Registrar is unable to dispose of the application within the aforesaid period, he shall make a report to the Lieutenant-Governor stating therein the reasons for this inability to do so, and the Lieutenant-Governor may allow him further time not exceeding three months to dispose of such application.
10. Registration Certificate
- Where a society is registered under this Act, Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the co-operative society therein mentioned is duly registered under this Act.
11. Amendment of bye-laws of a co-operative society.
- No amendment of any bye-laws of a co-operative society shall be valid unless such amendment has been registered under this Act.
- Every proposal for such amendment shall be forwarded to the Registrar and is satisfied that the proposed amendment -
- is not contrary to the provisions of this Act and the rules.
- does not conflict with co-operative principles; and
- will promote the economic interests of the members of the society, he may register the amendment.
- The Registrar shall forward to the society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.
- Where the Registrar refuses to registrar an amendment of bye-laws of co-operative society he shall communicate the order of refusal together with the reasons therefore, to the society in the manner prescribed.
12. When amendments of bye-laws come into force
- An amendment of the bye-laws of a co-operative society shall, unless it is expressed to come into operation on a particular day come into force on the day on which it is registered.
13. Change of name
- A co-operative society may be an amendment of its bye-laws, change its name but such change shall not affect any right or obligation of the society or of any of its members or past members, and any legal proceedings pending may be continued by or against the society under its new name.
- When a co-operative society changes its name, the Registrar shall enter the new name on the register of co-operative societies in place of the former name and shall amend the certificate of registration accordingly.
14. Change of Liability
- Subject to the provisions of this Act and the rules, a co-operative society may, by an amendment of its by-laws change the form or extent of it liability.
- When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any bye-law or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
- Any member or creditor who does not exercise his option within the period specified in subject (2) shall be deemed to have assented to the change.
- An amendment of a bye-laws of co-operative society changing the form or extent of its liability shall not be registered or take effect until either -
- the assent thereto to all members and creditors has been obtained; or
- all claims of members and creditors who exercise his option within the period specified in sub section (2) shall be deemed to have assented to the change.
15. Amalgamation, transfer of assets and liabilities and division of cooperative societies
- A co-operative society may, with the previous approval of the Registrar and by a resolution passed by a two-thirds majority of the members present and voting at a general meeting of the society, -
- transfer of assets and liabilities in whole or in part to any other co-operative society.
- divide itself into two or more co-operative societies.
- Any two or more co-operative societies may, with the previous approval of the Registrar and by a resolution passed by a two-third majority of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new co-operative society.
- The resolution of a co-operative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer, division or amalgamation, as the case may be:
- Provided that tin the case of a co-operative bank, the Registrar shall not accord approval to any such resolution without the previous sanction in writing of the Reserve Bank.
When a co-operative society has passed any such resolution, it shall give notice thereof in writing to all its member and creditors and, notwithstanding any bye-laws or contract to the contrary, any members or creditor shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be,
- Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the proposals contained in the resolution.
- A resolution passed by a co-operative society under this section shall not take effect until, either -
- The assent thereto of all the members and creditors has been obtained, or
- all claims of members and creditors who exercise the option referred to in sub section (4) within the period specified therein have been met in full.
- Were a resolution passed by a cooperative society under this section involves the transfer of any assets and liabilities, the resolution, shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
16. Power to direct amalgamation, division and re-organization in public interest, etc.
- Where the Registrar is satisfied that it is essential in the public interest, or in the interest of the co-operative movement, or for the purpose of securing the proper management of any co-operative society that two or more co-operative societies should be amalgamated or any co-operative societies or should be reorganized, then notwithstanding anything contained in section 15, but subject to the provision of these co-operative societies into a single society or into societies with such constitution; property rights, interest and authorities and such liabilities, duties and obligations as may be specified in the order:
- Provided that no such order of amalgamation, division or reorganization in respect of a cooperative bank shall be made without the previous sanction in writing of the Reserve Bank.
- No order shall be made under this section unless -
- a copy of the proposed order has been sent in draft to the co-operative societies or each of the co-operative societies concerned; and
- the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions and objections which may be received by him within such period (not being less than two months from the date on copy of the order aforesaid is received by the society or societies, as the case may be), as the Registrar may fix in that behalf, either from the society or from any of the societies concerned or from any member or class of members thereof or from any creditor or class of creditors thereof.
- The order referred to in sub section (1) may contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation, division or reorganization, as the case may be.
- Every member or creditor of each of the cooperative societies to be amalgamated, divided or reorganized, who has objected to the scheme of amalgamation, division or reorganization, with the period specified, shall be entitled to receive, on the issue of the order of amalgamation, division or reorganization, within the period specified, shall be entitled to receive, on the issue of the order of amalgamation, division or reorganization, his share or interest, if he be a member and the amount in satisfaction of his dues, if he be a creditor.
- On the issue of fan order sub-section (1), the provisions of sub-section (2), (3) and (4) of the section 19 shall apply to the cooperative societies so amalgamated, divide or reorganized as if the amalgamation, division or reorganization had been made under section 15.
17. Registrar to prepare scheme of amalgamation of co-operative bank in certain cases.
- When an order of moratorium has been made by the central Government under sub-section (2) of section 45 of the banking Regulation Act, 1949, in respect of a cooperative bank, the Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme -
- for the reorganization of the co-operative bank; or
- for the amalgamation of the co-operative bank with any other co-operative bank.
18. Liability of a co-operative bank to the Deposit Insurance Corporation.
- Notwithstanding anything contained in section 15 and 16 or any other provision of this Act, where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance Corporation Act. 1961, is, amalgamated or reorganized and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under subsection (2) of section 16 of that Act, the bank with which insured bank is amalgamated or the new cooperative bank formed after such amalgamation, or as case may be, the insured bank or transferee bank shall be under an ob legation, to repay the Deposit Insurance Corporation in the circumstances, to the extent of and in the manner referred to in section 21 of the Deposit Insurance Corporation Act, 1961.
19. Cancellation of registration certificates of co-operative societies in certain cases.
- Where the whole of the assets and liabilities of a cooperative society are transferred to another co-operative society in accordance with the provisions of section 15 or 16, the registration of the first mentioned co-operative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as corporate body.
- Where two or more co-operative societies are amalgamated into a new co-operative society in accordance with the provisions of section 15 or section 16, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
- Where a co-operative society divides itself into two or more co-operative society in accordance with the provisions of section 15 or is divided by the Registrar in accordance with the provisions of section 16, the registration of that society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to exist as the corporate body.
- The amalgamation and splitting of co-operative shall not in any manner whatsoever affect any right or obligation of resulting co-operative society or societies or render defective any legal proceedings by or against the co-operative society or societies or any legal proceedings that might have been continued or commenced by or against the resulting cooperative society or societies.
- Where a co-operative society has not commenced business within a reasonable time of its registration or has ceased to function or if the Registrar is satisfied, after making such inquiry as he thinks fit, that the society no longer has genuinely as its object one or more of the object specified in section 4l and that its registration ought in the interests of the general public be cancelled, he shall make an order canceling the registration of the co-operative society. The cooperative society shall, from the date of such order of cancellation be deemed to be dissolved and shall cease to exist as a corporate body.
Last Updated Date :- 18-06-2018
Page last updated on: 27-01-2023